/raid1/www/Hosts/bankrupt/TCRAP_Public/140205.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, February 5, 2014, Vol. 17, No. 25
Headlines
A U S T R A L I A
ANTQIP HIRE: Hall Chadwick Appointed as Administrators
BRINDABELLA AIRLINES: Owed AUD37M When Carrier Filed Receivership
GUNNS LIMITED: TasPorts Buys Woodchip Loading Facility
HARRIS & QUINN: Vincents Chartered Appointed as Administrators
GLORIA JEANS: Vince & Associates Appointed as Administrators
RAILWORKS CIVIL: Mackay Goodwin Appointed as Administrator
C H I N A
MMI INTERNATIONAL: Fitch Affirms 'BB-' LT Foreign Currency IDR
SUNTECH POWER: Appoints Deyong He as Acting CFO & Board Member
I N D I A
AGASTHYA COPPER: CRISIL Cuts Ratings on INR130MM Loans to 'B-'
ALFA FLEXITUBES: ICRA Suspends 'C' Rating on INR12cr Loan
AMAR CONSTRUCTION: CRISIL Rates INR30MM Bank Loan at 'B+'
BASUDEB AUTO: CRISIL Assigns 'B+' Ratings to INR150MM Loans
BHASKUN AGROTECH: CRISIL Assigns 'B' Ratings to INR75MM Loans
CHANDAN TRADING: ICRA Rates INR7cr Cash Credit at 'B+'
CHEMICAL ENG'G: CRISIL Assigns 'B+' Ratings to INR92.9MM Loans
CROWN ALBA: CRISIL Downgrades Ratings on INR4.04BB Loans to 'D'
DEE WELDOGEN: ICRA Cuts Rating on INR6cr Loans to 'B'
FINEWEAR LEATHERS: CRISIL Places 'B-' Ratings on INR24.5MM Loans
FINNS FROZEN: ICRA Lowers Ratings on INR11.3cr Loans to 'D'
GURU NANAK: CRISIL Assigns 'B' Ratings to INR97.5MM Loans
H.K. NARANG: CRISIL Assigns 'B+' Ratings to INR105MM Loans
JAIKA VEHICLE: CRISIL Assigns 'B' Ratings to INR200MM Loans
JAY KHODIYAR: CRISIL Reaffirms 'B' Ratings on INR79.5MM Loans
KANAKA MAHALAKSHMI: CRISIL Puts 'B' Ratings on INR190MM Loans
KESHAV COTTON: CRISIL Assigns 'B+' Ratings to INR90MM Loans
KOTHARI FOODS: CRISIL Lowers Rating on INR1 Billion Loan to 'D'
M.D PRINTING: CRISIL Assigns 'B-' Ratings to INR70MM Loans
NEW ERA: ICRA Downgrades Rating on INR25cr Loans to 'D'
NORTH EASTERN EDUCARE: CRISIL Ups Rating on INR144.2M Loans to B-
NORTH EASTERN KNOWLEDGE: CRISIL Ups Rating on INR265MM Loan to B-
R.S.V. COTTON: CRISIL Places 'B' Ratings on INR55MM Loans
RATCHET LABORATORIES: CRISIL Cuts Ratings on INR170MM Loans to D
ROTOMAC EXPORTS: CRISIL Cuts Ratings on INR2.43BB Loans to 'D'
ROTOMAC GLOBAL: CRISIL Cuts Ratings on INR19.25BB Loans to 'D'
ROYAL STAR: CRISIL Assigns 'B+' Ratings to INR160MM Loans
S K P STEEL: CRISIL Reaffirms 'B+' Rating on INR145MM Loans
S.R.K. INFRA: CRISIL Assigns 'B-' Ratings to INR150MM Loans
SATYAMAHARSHI POWER: CRISIL Cuts Ratings on INR150MM Loans to 'D'
SENTHIL ANDAVAR: CRISIL Assigns 'B' Ratings to INR50MM Loans
SHEIKH FARID: CRISIL Assigns 'B+' Ratings to INR140MM Loans
SHIRT COMPANY: CRISIL Reaffirms 'B-' Ratings on INR500MM Loans
SONIKA ENGINEERING: CRISIL Rates INR200MM Term Loan at 'B'
SREE RAMA: ICRA Suspends 'B-' Rating on INR5.5cr Loan
SRI BHARGAVI: ICRA Suspends 'B/A4' Rating on INR21cr Loans
STAR LOGISTICS: CRISIL Assigns 'B' Ratings to INR60MM Loans
SUDHIR AGRO: ICRA Reaffirms 'B+' Rating on INR4cr Loan
SUPER SEAL: CRISIL Assigns 'B+' Ratings to INR70MM Loans
THANGAVELU SPINNING: CRISIL Reaffirms B Ratings on INR181.8M Loan
UTKAL ENERGY: CRISIL Lowers Rating on INR200MM Loan to 'B+'
V. S. COTTON: CRISIL Assigns 'B' Ratings to INR50MM Loans
VALMARK HOMES: ICRA Withdraws 'B' Rating on INR18.5cr Loan
VARDHMAN RICE: CRISIL Assigns 'B-' Ratings to INR150MM Loans
VEERANARAYANA METAL: CRISIL Puts 'B+' Ratings on INR57MM Loans
VEL MURUGAN: CRISIL Assigns 'B' Ratings to INR65MM Loans
VIJAY ENGIFAB: CRISIL Assigns 'B-' Ratings to INR155.4MM Loans
VINDEEP DEVELOPERS: CRISIL Cuts Ratings on INR110MM Loans to 'D'
VISHWAJEET MEADOWS: CRISIL Rates INR200 Million Loan at 'B'
WEST COAST: CRISIL Lowers Rating on INR180MM Loans to 'B'
I N D O N E S I A
INDO MURO: Straits Resources Files Bankruptcy Petition For Unit
J A P A N
MITSUBISHI MOTORS: S&P Raises CCR to 'BB' & Removes from Watch
M O N G O L I A
MONGOLIAN MINING: S&P Lowers Corporate Credit Rating to 'CCC+'
N E W Z E A L A N D
ABODE DESIGN: Liquidation Will Have Ripple Effect in Industry
ROSS ASSET: FMA to Drop Ponzi Complaint Against David Ross
- - - - -
=================
A U S T R A L I A
=================
ANTQIP HIRE: Hall Chadwick Appointed as Administrators
------------------------------------------------------
Richard Albarran -- ralbarran@hallchadwick.com.au -- Blair Pleash
-- bpleash@hallchadwick.com.au -- and David Ingram --
dingram@hallchadwick.com.au -- of Hall Chadwick were appointed
administrators of Antqip Hire Pty Limited on Feb. 4, 2014.
Antqip has been supplying earthmoving equipment.
BRINDABELLA AIRLINES: Owed AUD37M When Carrier Filed Receivership
-----------------------------------------------------------------
Ben Westcott at The Canberra Times reports that Brindabella
Airlines was tens of millions of dollars in debt when it went into
receivership, owing more than AUD10 million to the Commonwealth
Bank alone.
On top of this, the administrator has said the company may have
traded while insolvent, a civil offence, the report relates.
According to the report, new figures issued by administrator
Rodgers Reidy show the airline owed creditors AUD37,697,050. The
largest creditor is the Commonwealth Bank, which is owed
AUD10,292,822. The regional carrier went into receivership in
December last year, leaving thousands of customers stranded. The
airline's staff were made redundant just two days before
Christmas, the report notes.
The Canberra Times relates that the new figures reveal Brindabella
Airlines owes its employees almost AUD3 million in entitlements,
an amount the receiver said it would be unable to recover.
KordaMentha receiver Sebastian Hams said that the business had
done everything in its power to help the employees get the
entitlements they could, according to the report.
"We're going through a process whereby we're selling the remaining
assets . . . which is a process we're in the middle of," The
Canberra Times quotes Mr. Hams as saying. Mr. Hams said the
remaining four J41 aircraft were yet to be sold but he expected
they would go in the next month, the report relays.
He reiterated that there would not be enough assets to recoup all
of the employees' lost entitlements. "I guarantee that won't
happen," Mr. Hams, as cited by The Canberra Times, said.
Three regional councils have also claimed the failed airline owes
them at least AUD100,000 each, the report adds.
Brindabella, formed in 1994, operated up to 250 sectors a week,
with services from Canberra, Sydney and Brisbane to regional
destinations including Newcastle, Cobar, Coffs Harbour, Moree,
Mudgee, Narrabri, Newcastle, Orange and Tamworth. It had 140
employees and operated five US-built Metroliners and seven
British-built Jetstreams. Brindabella experienced significant
maintenance and regulatory issues which impacted aircraft
availability and services.
David Winterbottom and Sebastian Hams of KordaMentha were
appointed Receivers and Managers of the Canberra-based regional
airline Brindabella on Dec. 15, 2013.
The group consists of five companies including Brindabella
Airlines Pty Ltd, Aeropelican Air Services Pty Ltd, M/V Purchasing
Company Pty Ltd, Business Air Holdings Pty Ltd and Trand Holdings
Pty Ltd. This follows the Group's decision to ground all aircraft
not already grounded by the recent CASA directive and to cease all
passenger flights.
GUNNS LIMITED: TasPorts Buys Woodchip Loading Facility
------------------------------------------------------
Cliff Sanderson at dissolve.com.au reports that the woodchip
loading facility of Gunns Limited at its Burnie port has been
purchased by TasPorts from receivers KordaMentha. The facility was
reportedly decommissioned in 2010 as Gunns ceased native logging,
the report says.
dissolve.com.au relates that it has been cited that the sale will
make the facility available to all sawmillers. Reportedly, the
receivership process included negotiations between KordaMentha and
TasPorts for securing open access to the facility, says
dissolve.com.au. A source noted that this will allow people to
making money out of residue exporting, the report notes.
Based in Launceston, Australia, Gunns Limited (ASX:GNS) --
http://www.gunns.com.au/-- was an hardwood and softwood forest
products company. It operated within three segments: Forest
products, Timber products and Other activities. Gunns has about
645 employees in Tasmania, Victoria, South Australia and Western
Australia.
On Sept. 25, 2012, the directors of Gunns Limited and its 35
entities, and the responsible entity of Gunns Plantations Limited
appointed Ian Carson, Daniel Bryant and Craig Crosbie of PPB
Advisory as Voluntary Administrators. KordaMentha has also been
appointed Receivers and Managers.
The appointment came after Gunns failed to secure an equity
investor amid high debt and a prolonged trading halt, The
Australian reported.
Gunns was placed into liquidation in March 2013.
HARRIS & QUINN: Vincents Chartered Appointed as Administrators
--------------------------------------------------------------
Gavin Moss and Nick Combis of Vincents Chartered Accountants were
appointed as voluntary administrators of Harris & Quinn
Engineering Pty Ltd on Jan. 28, 2014.
A first meeting of the creditors of the Company will be held on
Feb. 7, 2014, at 11:00 a.m. at Newcastle Region Library, Laman
Street, in Newcastle, New South Wales.
GLORIA JEANS: Vince & Associates Appointed as Administrators
------------------------------------------------------------
Peter Robert Vince -- pvince@vinceassociates.com.au -- and Kylie
Maree Wright -- kwright@vinceassociates.com.au -- at Vince &
Associates were appointed as administrators of Our Lifestyle Pty
Ltd, trading as Gloria Jeans Mornington, on Jan. 30, 2014.
A first meeting of the creditors of the Company will be held on
Feb. 11, 2014, at 11:00 a.m. at 51 Robinson Street, in Dandenong,
Victoria.
RAILWORKS CIVIL: Mackay Goodwin Appointed as Administrator
----------------------------------------------------------
Domenic Calabretta of Mackay Goodwin was appointed administrator
of Railworks Civil Pty Ltd on Jan. 31, 2014.
A first meeting of the creditors of the Company will be held on
Feb. 11, 2014, at 11:00 a.m., at Level 11, 16 St Georges Terrace,
in Perth.
=========
C H I N A
=========
MMI INTERNATIONAL: Fitch Affirms 'BB-' LT Foreign Currency IDR
--------------------------------------------------------------
Fitch has affirmed MMI International Limited (MMI) and its parent
Precision Capital Private Limited's (PCPL) Long-Term Foreign-
Currency Issuer Default Ratings (IDR) at 'BB-'. The Outlook is
Stable. Simultaneously, Fitch has affirmed the Singapore-based
company's senior secured rating at 'BB-', 8% senior secured
USD300m notes due 2017, as well as the USD180m secured bank loan
at 'BB-'. The notes and bank loan rank pari-passu and are fully
guaranteed by PCPL and certain other subsidiaries of MMI based
outside China.
Key Rating Drivers
Low Ratings Headroom: MMI's FY14 funds flow from operations (FFO)-
adjusted leverage will deteriorate to around 3.5x-3.7x (June
ending FY13: 3.1x), close to Fitch's negative guidance of 4.0x.
FY14 EBITDA will decline to around USD125m-135m (FY13: USD139m)
due to lower hard disk drive (HDD) shipment volumes amid slower
demand from the personal computer (PC) industry - the HDD
industry's largest market.
Stagnant Revenue: FY14 revenue will stagnate to around USD700m on
lower HDD quarterly volumes of around 135-140 million units (2011-
13 average: 146 million) leading to subdued demand for components.
However, Fitch expects MMI's leverage to improve over the medium
term given its ability to generate around USD25m-30m in annual
free cash flow (FCF). MMI has low annual capex requirements of
around USD35m-40m and manageable interest and tax outflows
totalling about USD50m a year.
Limited Benefits from HDD Consolidation: HDD Industry
consolidation in 2012 which reduced the number of HDD
manufacturers to three -- Seagate Technology PLC (Seagate,
BBB-/Stable), Western Digital and Toshiba -- from five, benefited
HDD manufacturers more than their suppliers. While HDD
manufacturers' EBITDA margins improved to 28% in 2013 (2011: 25%),
suppliers, including MMI, had limited gains. A fall in HDD volumes
resulted in overcapacity among suppliers and a decline in the
average selling price of components.
However, Fitch expects MMI to benefit from an imminent HDD
suppliers' consolidation which would reduce competition and
provide greater market share and pricing stability to MMI. Smaller
financially distressed suppliers could go out of business or seek
M&As for financial bailouts.
Dependence on Seagate: MMI continues to derive the majority of its
revenue (80% in 1QFY14) from Seagate posing a concentration risk.
However, Fitch believes that a high inter-dependence between MMI
and Seagate -- with MMI being Seagate's largest supplier for three
key HDD components mitigates this risk. MMI's ratings factor in
moderate-to-high barriers to entry in the HDD component
manufacturing industry.
Acquisition risk: Fitch does not rule the possibility that MMI
could acquire a small competitor to increase its market share.
However, we do not expect large debt-funded acquisitions as we
expect MMI to maintain its net debt/EBITDA below its target of
3.0x. Fitch notes that MMI has a historical track record of
inorganic growth -- it acquired three smaller component makers in
2011 and leveraged its balance sheet.
Rating Sensitivities
Negative: Future developments that may, individually or
collectively, lead to a negative rating action include:
-- FFO-adjusted leverage of above 4.0x (FY14: forecast 3.5x) on a
sustained basis
-- FFO interest coverage below 3.0x (FY14: forecast 3.2x) on a
sustained basis
-- Significant fall in cost per gigabyte differential between
solid state drives (SSDs) and HDDs, resulting in lower demand
for HDDs, or if Seagate moves its production capacity towards
SSDs
Positive: Fitch does not envisage a positive rating action in the
next two years given the company's market position and relatively
small size.
SUNTECH POWER: Appoints Deyong He as Acting CFO & Board Member
--------------------------------------------------------------
Suntech Power Holdings Co., Ltd. on Jan. 27, 2014, announced that
Mr. Deyong He has been appointed as the fourth member of Suntech's
Board of Directors, as well as acting CFO. Mr. He joins Messrs.
Michael Nacson, Kurt Metzger and Dr. Zhengrong Shi on Suntech's
Board.
The Board also appointed Mr. Metzger as the second member of the
Audit, Compensation and Nominating Committees joining Mr. Nacson
on each of these committees.
Mr. He has served as Corporate Finance/Treasury Director of
Suntech since 2012. Prior to Suntech, Mr. He served as Treasury
Director/Managing Director of IMC Pan Asia Alliance (China) Co.,
Ltd./IMC-GATX Financial Leasing (Shanghai) Co., Ltd. from 2008 to
2012, Head of Treasury of LANXESS Chemical (China) Co., Ltd from
2006 to 2008, and Head of Treasury of Chia Hsin Cement Greater
China Holdings Co., Ltd. from 2000 to 2006. Prior to 2000, he
served as a project manager in various entities in the development
of real estate and civil engineering.
Mr. He has in-depth corporate finance experience and multicultural
exposure across manufacturing, shipping, real estate and logistics
and leasing industries with European, American and Asian
companies. Mr. He holds a Bachelor of Science degree from Tongji
University and Masters of Business Administration degree from
Fudan University.
About Suntech
Wuxi, China-based Suntech Power Holdings Co., Ltd., produces solar
products for residential, commercial, industrial, and utility
applications. Suntech has delivered more than 25,000,000
photovoltaic panels to over a thousand customers in more than 80
countries.
Suntech Power Holdings Co., Ltd., received from the trustee of its
3 percent Convertible Notes a notice of default and acceleration
relating to Suntech's non-payment of the principal amount of
US$541 million that was due to holders of the Notes on March 15,
2013. That event of default has also triggered cross-defaults
under Suntech's other outstanding debt, including its loans from
International Finance Corporation and Chinese domestic lenders.
Suntech Power had involuntary Chapter 7 bankruptcy proceedings
initiated against it on Oct. 14, 2013, in U.S. Bankruptcy Court in
White Plains, New York (Bankr. S.D.N.Y. Case No. 13-bk-13350), by
holders of more than $1.5 million of defaulted securities under a
2008 $575 million indenture. The Chapter 7 Petitioners are
Trondheim Capital Partners, L.P., Michael Meixler, Longball
Holdings, LLC, and Jiangsu Liquidators, LLC. They are represented
by Jay Teitelbaum, Esq., at Teitelbaum & Baskin LLP, in White
Plains, New York.
=========
I N D I A
=========
AGASTHYA COPPER: CRISIL Cuts Ratings on INR130MM Loans to 'B-'
--------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Agasthya Copper Pvt Ltd to 'CRISIL B-/Stable' from 'CRISIL
B+/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 90 CRISIL B-/Stable (Downgraded
from 'CRISIL B+/Stable')
Proposed Long Term 40 CRISIL B-/Stable (Downgraded
Bank Loan Facility from 'CRISIL B+/Stable')
The rating downgrade reflects the significant deterioration in
ACPL's financial risk profile, particularly its liquidity. The
company's liquidity has come under pressure because of its
severely stretched receivables and its lower-than-expected cash
accruals due to decline in profitability. This has resulted in
over-utilisation of its cash credit limit in recent times.
Though ACPL's revenues have grown moderately in 2012-13 (refers to
financial year, April 1 to March 31) over the previous year, its
profitability has declined significantly leading to depressed cash
accruals. Also, its receivables increased to 182 days as on March
31, 2013, against 115 days a year earlier. The company has now
been able to realise receivables from a few of its customers,
leading to regularisation of its cash credit account. However,
CRISIL believes that ACPL's financial risk profile, particularly
its liquidity, will remain under pressure over the medium term on
account of low cash accruals and large working capital
requirements.
The rating reflects ACPL's small scale and working-capital-
intensive operations. The rating also factors in the company's
below-average financial risk profile, marked by weak capital
structure and debt protection metrics. These rating weaknesses are
partially offset by the extensive experience of ACPL's promoters
in the copper industry.
Outlook: Stable
CRISIL believes that ACPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the company registers
more-than-expected growth in its revenues and profitability,
thereby leading to an increase in its cash accruals and hence to
an improvement in its financial risk profile. Conversely, the
outlook may be revised to 'Negative' if ACPL's financial risk
profile deteriorates, most likely because of lengthening of its
working capital cycle or lower-than-expected profitability
margins.
ACPL is promoted by Mr. Sidharth Shah and his wife, Mrs. Hetal
Shah. It was initially established in 2005 as a proprietorship
firm, Agasthya Enterprises, by Mr. Sidharth Shah; this firm was
reconstituted as a private limited company under the current name
in 2010. ACPL manufactures (through its associate company, Arje
Copper Pvt Ltd), and trades in copper alloy products such as
copper tubes, terminals, pipes, strips, sections, and bus bars.
ACPL reported a profit after tax (PAT) of INR0.6 million on net
sales of INR338.7 million for 2012-13, against a PAT of INR8.4
million on net sales of INR338.7 million for 2011-12.
ALFA FLEXITUBES: ICRA Suspends 'C' Rating on INR12cr Loan
---------------------------------------------------------
ICRA has suspended the long-term rating of '[ICRA]C' assigned to
INR12.00 crore fund based limits and the short rating of
'[ICRA]A4' assigned to INR5.00 crore non-fund based limits of Alfa
Flexitubes Private Limited. The suspension follows ICRA's
inability to carry out a rating surveillance in the absence of the
requisite information from the company.
According to its suspension policy, ICRA may suspend any rating
outstanding if in its opinion there is insufficient information to
assess such rating during the surveillance exercise.
Alfa Flexitubes (P) Ltd, a private limited company, promoted by
R.K. Sardana, is engaged in manufacturing of stainless steel (SS)
flexible hoses and auto-flexible connectors for engineering
applications. The unit was set up in 1998 and has been supplying
SS hoses /hose assemblies for transporting gases and liquids to
various industries such as automotives, steel plants, fertilizers,
chemicals etc.
AMAR CONSTRUCTION: CRISIL Rates INR30MM Bank Loan at 'B+'
---------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Amar Construction Corpn.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 60 CRISIL A4
Proposed Long Term
Bank Loan Facility 30 CRISIL B+/Stable
The ratings reflect ACC's small scale of operations in a highly
competitive industry, large working capital requirements, and
geographical concentration in revenues. These rating weaknesses
are partially offset by moderate financial risk profile, marked by
comfortable gearing and moderate debt protection metrics,
extensive experience of proprietor in civil construction industry,
and moderate order book position.
Outlook: Stable
CRISIL believes that ACC will continue to benefit over the medium
term backed by its proprietor's extensive experience in the civil
construction industry and current moderate order book. The outlook
may be revised to 'Positive' if the firm reports substantial
growth in its scale of operations and cash accruals while
maintaining profitability and capital structure. Conversely, the
outlook may be revised to 'Negative' if ACC's financial risk
profile and liquidity deteriorate most likely because of larger-
than-expected working capital requirements. The outlook may also
be revised to 'Negative' in case of a decline in cash accruals
most likely because of a decline in the firm's revenues or a
significant deterioration in its profitability.
ACC, promoted by Mr. Yusuf Shaikh, was set up in 1978 as a
proprietorship firm. It was subsequently reconstituted as
partnership firm. The partners of the firm are Mr. Yusuf Shaikh
and Mr Imran Shaikh. The firm is engaged in road construction and
sewage treatment plant for Mumbai Metropolitan Region Development
Authority and Municipal Corporation of Greater Mumbai. It is
registered as class 1 contractor with PWD, Maharashtra.
ACC reported, a profit after tax (PAT) of INR13.8 million on a net
operating income of INR91.7 million for 2012-13 (refers to
financial year, April 1 to March 31), as against a PAT of INR16.4
million on a net operating income of INR88.7 million for 2011-12.
BASUDEB AUTO: CRISIL Assigns 'B+' Ratings to INR150MM Loans
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' ratings to the long-
term bank facilities of Basudeb Auto Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Working Capital 5 CRISIL B+/Stable
Term Loan
Cash Credit 42.5 CRISIL B+/Stable
Channel Financing 102.5 CRISIL B+/Stable
The ratings reflect BAL's below-average financial risk profile,
marked by modest net worth, leveraged capital structure and below-
average debt protection metrics, and exposure to intense
competition in the automobile dealership industry. These rating
weaknesses are partially offset by the extensive experience of
BAL's promoters in the automobile dealership industry, and
relationship with Tata Motors Ltd (TML; rated CRISIL
AA/Stable/CRISIL A1+').
Outlook: Stable
CRISIL believes that BAL will continue to benefit from its
promoters' extensive experience in the auto dealership industry
and established relationship with TML over the medium term. The
outlook may be revised to 'Positive' if the company's financial
risk profile improves on account of higher-than-expected accruals
and improvement in working capital management. Conversely, the
outlook may be revised to 'Negative' if BAL's financial risk
profile, particularly its liquidity, deteriorates because of
lower-than-expected cash accruals, or larger-than-expected working
capital requirements, or any large debt-funded capex.
BAL, based in Ranchi (Jharkhand) was incorporated in 2000 as a
closely held limited company by the Kataruka family. The company
is an authorised dealer of passenger vehicles for TML in four
districts of Jharkhand'Ranchi, Hazaribagh, Ramgarh, and
Daltonganj.
For 2012-13 (refers to financial year, April 1 to March 31), BAL
reported a net profit of INR1.5 million on net sales of INR750.8
million; the company reported a net profit of INR7.6 million on
net sales of INR1.03 billion for 2011-12.
BHASKUN AGROTECH: CRISIL Assigns 'B' Ratings to INR75MM Loans
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Bhaskun Agrotech India Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 50 CRISIL B/Stable
Bank Guarantee 2 CRISIL A4
Cash Credit 25 CRISIL B/Stable
The ratings reflect BAIPL's exposure to risks associated with the
initial phase of its operations and its modest scale. The ratings
also factor in BAIPL's below-average financial risk profile marked
by modest net worth and the company's moderately working-capital-
intensive operations. These rating weaknesses are partially offset
by the extensive experience of BAIPL's promoters in the biscuits
and related products industry.
Outlook: Stable
CRISIL believes that BAIPL will continue to benefit over the
medium term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' in case of sharp and
sustainable increase in BAIPL's revenue, along with sustained
working capital management. Conversely, the outlook may be revised
to 'Negative' in case of slower-than-expected ramp-up in BAIPL's
sales, or weaker profitability or working capital management,
leading to stress on the company's liquidity.
BAIPL was incorporated in March 2011 and has Mr. Ravi Shanker
Dwary, Mr. Anirban Kumar Saha, Mr. Anindya Mitra, and Mr. Sanjit
Kumar Das as directors on its board. In 2012-13 (refers to
financial year, April 1 to March 31), BAIPL acquired the
manufacturing facilities of M/s Raja Udyog Pvt Ltd and started
production of biscuits, which are marketed under its own Sunbisk
brand.
CHANDAN TRADING: ICRA Rates INR7cr Cash Credit at 'B+'
------------------------------------------------------
ICRA has assigned a long term rating of '[ICRA]B+' to the INR7.00
crore cash credit facility of Chandan Trading Company Private
Limited. ICRA has also assigned a short term rating of '[ICRA]A4'
to the INR7.00 crore fund based bank facilities (sub-limit of cash
credit facility) of CTCPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limit- 7.00 [ICRA]B+ assigned
Cash Credit
Fund Based Limit-
PCL/FBD/FBP (7.00) [ICRA]A4 assigned
The assigned ratings are constrained by modest size of current
operations, concentrated clientele profile with top five
customers' accounting for around 74% of total sales in 2012-13;
and weak financial profile as reflected by its thin margins,
stretched capital structure and weak debt protection metrics. The
ratings further take into account the intense competition in the
business due to low entry barriers resulting from its trading
nature, thus exerting pressure on margins. ICRA also takes note of
the vulnerability of earnings to any fluctuations in availability
and prices of raw materials which are influenced by the agro-
climatic conditions, crop harvest and changes in regulations.
The ratings, however, positively considers the experience of the
promoters in agro commodities trading business; and favourable
location of the company with proximity to major agro commodities
cultivated in the region, mainly tamarind and maize.
Incorporated in 2011, CTCPL is primarily engaged in trading of
maize and tamarind; and other agro-products including amchur,
tora, kosra, mahua, amla, etc. The company was promoted by the
Somani family of Jagdalpur, Chhattisgarh. The promoters of CTCPL
had been engaged in agro trading business since 1988 through a
proprietorship firm viz. Chandan Trading Company, which currently
stands discontinued with the commencement of operations of CTCPL
from April 2011.
Recent Results
For the year ended March 31, 2013, company has reported an
operating income of INR65.78 crore with a profit after tax (PAT)
of INR0.32 crore as compared to an operating income of INR61.28
crore with a PAT of INR0.44 crore during 2011-12.
CHEMICAL ENG'G: CRISIL Assigns 'B+' Ratings to INR92.9MM Loans
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank
facilities of The Chemical Engineering Corporation Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 49.9 CRISIL B+/Stable
Cash Credit 23 CRISIL B+/Stable
Proposed Cash
Credit Limit 20 CRISIL B+/Stable
The rating reflects CEC's below-average financial risk profile,
marked by high gearing and weak debt protection metrics, and large
working capital requirements. These rating weaknesses are
partially offset by the extensive experience of CEC's promoters in
the flavours and fragrances business and the company's established
relationships with its customers.
Outlook: Stable
CRISIL believes that CEC will continue to benefit over the medium
term from its promoters' extensive experience in the flavours and
fragrances business. The outlook may be revised to 'Positive' if
the company significantly scales up its revenue, backed by healthy
orders from its customers, while maintaining its profitability,
leading to higher-than-expected cash accruals and improvement in
the financial risk profile. Conversely the outlook may be revised
to 'Negative' if CEC reports lower-than-expected revenue or
profitability, or if its working capital management deteriorates
resulting in weak liquidity or if it undertakes any larger-than-
expected, debt-funded capital expenditure programme.
CEC, incorporated in 1946 and based in Thiruvallur (Tamil Nadu),
manufactures flavours and fragrances. Its day-to-day operations
are managed by its managing directors, Mr. A Prabhakar and Mr. A
Purushotham.
CEC reported profit after tax (PAT) of INR0.3 million on net sales
of INR108 million for 2012-13 (refers to financial year, April 1
to March 31) vis-a-vis net loss of INR6.3 million on net sales of
INR94.5 million for 2011-12.
CROWN ALBA: CRISIL Downgrades Ratings on INR4.04BB Loans to 'D'
---------------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of Crown
Alba Writing Instruments India Pvt Ltd (Crown Alba; part of the
Rotomac group) to 'CRISIL D/CRISIL D' from 'CRISIL
BB+/Stable/CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 5 CRISIL D (Downgraded from
'CRISIL BB+/Stable')
Export Packing Credit 35 CRISIL D (Downgraded from
'CRISIL A4+')
Letter of Credit 4,000 CRISIL D (Downgraded from
'CRISIL A4+')
The rating downgrade reflects recent instances of devolvement of
letters of credit (LCs) in group companies (Including crown Alba),
which remained un-regularised for over 30 days. These devolvements
are on account of delay in receiving funds from its merchant
trading clients.
Rotomac group has a modest financial risk profile and exposed to
significant debtor risks. However, the group continues to benefit
from its extensive experience of promoters in trading business and
healthy customer relations.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of Crown Alba Writing Instruments India
Pvt Ltd, Rotomac Global Pvt Ltd, Rotomac Exports Pvt Ltd, Rotomac
Exim Pvt Ltd, Rotomac Polymers Pvt Ltd, Kothari Food and
Fragrances, and West Coast Extrusion Pvt Ltd. This is because all
these entities, collectively referred to as the Rotomac group
herein, are in the same line of business, have a common
management, and share fungible cash flows.
The Rotomac group trades in various commodities, including
foodgrain, tiles, industrial equipment, edible oil, industrial
fuels, iron ore, diamonds, and polymers. Under RGPL and Crown
Alba, the Rotomac group manufactures pens, which are sold under
the Rotomac, Designmate, and Inglish brands. This division is
expected to account for INR1.25 billion of the group's revenue in
2013-14 (refers to financial year, April 1 to March 31).
DEE WELDOGEN: ICRA Cuts Rating on INR6cr Loans to 'B'
-----------------------------------------------------
ICRA has revised the long term rating from '[ICRA]B+' to '[ICRA]B'
for INR6.00 crore fund based limits of Dee Weldogen India Private
Limited. ICRA has reaffirmed the short term rating of '[ICRA] A4'
for INR3.00 crore non fund based facilities of DWIPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits 6.00 [ICRA]B revised
from [ICRA]B+
Non Fund Based
Limits 3.00 [ICRA]A4 reaffirmed
The rating action factors in increase in receivable collection
period which has led to stretched liquidity for the company. The
ratings also factors in small scale of operations of the company
which results in lower economies of scale, competitive industry
environment in which the company operates and weak financial
profile as reflected in low operating margins and high gearing.
Ratings are also constrained by a relatively high level of working
capital intensity of operations on account of high inventory and
debtor days which has resulted in a stretched liquidity position
during the year. However ratings are supported by an experienced
profile of promoters with more than a decade of experience,
improvement in profitability with the commencement of
manufacturing operations since FY 2008, and negligible repayment
commitments.
Going forward, the ability of the company to increase its exports
and capacity utilizations and efficient working capital management
will remain key rating drivers for the company.
DWIPL was set up in 1993-94 as a partnership firm and
reconstituted as a private limited company in 2000. The company
engages in trading of stainless steel wires and manufacturing of
stainless steel wires and bars with various industrial and
architectural applications. The company is an exclusive
distributor for RaajRatna Metal Industries Limited in North India.
The manufacturing plant located in Gautam Budh Nagar (Uttar
Pradesh) has a capacity of 200 tonnes per month (tpm). The company
is managed by Mr. Sandeep Dang who has an experience of over a
decade in the steel industry.
The company has reported a net profit after tax of INR0.24 crore
on an operating income of INR31.07 crore in FY2013 as against net
profit after tax of INR0.17 crore on an operating income of
INR29.78 crore in FY2012.
FINEWEAR LEATHERS: CRISIL Places 'B-' Ratings on INR24.5MM Loans
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to
the bank facilities of Finewear Leathers Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Working Capital 7 CRISIL B-/Stable
Demand Loan
Proposed Letter 10.5 CRISIL A4
of Credit
Letter of Credit 10 CRISIL A4
Cash Credit 17.5 CRISIL B-/Stable
Export Packing Credit 20 CRISIL A4
The ratings reflect FLPL's large working capital requirements,
modest scale of operations in the intensely competitive leather
processing industry and its below-average financial risk profile,
marked by high gearing. These rating weaknesses are partially
offset by the extensive experience of FLPL's promoters in the
leather processing industry.
Outlook: Stable
CRISIL believes that FLPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the company substantially
improves its scale of operations while maintaining its
profitability, leading to higher-than-expected cash accruals.
Conversely, the outlook may be revised to 'Negative' if FLPL's
liquidity weakens, either because of deterioration in its working
capital cycle, or significant debt-funded capital expenditure
programme.
FLPL, set up in 1993 as a partnership concern, was reconstituted
into a private limited company in 2004. The company, based in
Chennai (Tamil Nadu), processes semi-finished leather into
finished leather; it primarily caters to the footwear industry.
The day-to-day operations of the company are managed by Mr. A
Kabilan, managing director.
FLPL reported a profit after tax (PAT) of INR1.2 million on
revenues of INR112 million for 2012-13 (refers to financial year,
April 1 to March 31), against a PAT of INR0.75 million on revenues
of INR88.5 million for 2011-12.
FINNS FROZEN: ICRA Lowers Ratings on INR11.3cr Loans to 'D'
-----------------------------------------------------------
ICRA has revised the long-term rating assigned to INR6.30 crore,
long-term loans of Finns Frozen Foods (India) Limited from
'[ICRA]B' to '[ICRA]D'. ICRA has also revised the short-term
rating assigned to INR4.50 crore short-term, fund based facilities
and INR0.50 crore of short-term, non-fund based facilities of the
company from '[ICRA]A4' to '[ICRA]D'.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term loans 6.30 Revised from [ICRA]B
to [ICRA]D
Short-term, fund
based facilities 4.50 Revised from [ICRA]A4
to [ICRA]D
Short-term, non-fund
based facilities 0.50 Revised from [ICRA]A4
to [ICRA]D
The rating action reflects recent delays in debt servicing by the
company on account of its stretched liquidity profile. The
company's capital structure remains weak with negative net worth
on account of past losses. ICRA takes note of the small scale of
operations, high client concentration risks and currency
volatility risks on un-hedged receivables. Nevertheless,
completion of renovation of the manufacturing facilities which
have British Retail Consortium (BRC) Grade A certified by
Intertek, UK as also the support from promoter -- Foods and Inns
Limited (Rated [ICRA]B-/[ICRA]A4) in the effort to get the
operations back to optimal capacity utilization levels should help
improve the revenues in future.
Finns Frozen Foods (I) Limited, established in 1992, is a Joint
Venture between Foods & Inns Limited and Getz Corporation.
Currently, the company's facilities in MIDC, SInnar freeze,
package and export fruits, vegetables, fruit pulp and snacks (like
samosas and naans). The facility has two freezing units with
capacity of maintaining 2,560 tonne of inventory at -26 degrees
Celsius along with processing facilities for pulping (2,000 tonnes
per annum) and processed food products (10,800 tonnes per annum).
The facilities have received "BRC Grade A" certification from
Intertek, UK which allows the company to export frozen Ready-to-
Eat (RTE) and vegetables to UK and several other regulated
markets.
Recent Results
For the twelve months ending March 31, 2013, the company reported
net loss of INR2.7 crore on an operating income of INR3.5 crore as
compared to a net loss of INR1.6 crore on an operating income of
INR8.9 crore for the twelve months ending March 31, 2012. In the
first nine months of operations in FY 2014, based on unaudited
numbers, the company has reported a net loss of INR1.3 crore on
operating income of INR10.1 crore.
GURU NANAK: CRISIL Assigns 'B' Ratings to INR97.5MM Loans
---------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Guru Nanak Cotton & Gen. Mills.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Working Capital 35 CRISIL B/Stable
Demand Loan
Cash Credit 60 CRISIL B/Stable
Term Loan 2.5 CRISIL B/Stable
The rating reflects GNC's weak financial risk profile, small scale
of operations in the highly fragmented cotton industry, and
susceptibility to regulatory changes. These rating weaknesses are
partially offset by the extensive experience of GNC's promoters in
the cotton industry.
Outlook: Stable
CRISIL believes that GNC will continue to benefit over the medium
term from its promoters' experience in the cotton industry. The
outlook may be revised to 'Positive' if the firm registers
increase in its scale of operations along with improvement in its
operating margin. Conversely, the outlook may be revised to
'Negative' if GNC's financial risk profile deteriorates, most
likely because of larger-than-expected working capital
requirements or large debt-funded capital expenditure.
GNC was established in 2005 as a partnership firm to undertake
cotton ginning and pressing of raw cotton into cotton bales. The
firm's manufacturing facility is in Mukatsar (Punjab). GNC also
has an oil expelling unit. The firm's day-to-day operations are
managed by Mr. Sanjeev Kumar and his brother Mr. Balraj Kumar.
GNC reported a net profit of INR2.0 million on net sales of INR347
million for 2012-13 (refers to financial year, April 1 to March
31), against a net profit of INR1.7 million on net sales of INR309
million for 2011-12.
H.K. NARANG: CRISIL Assigns 'B+' Ratings to INR105MM Loans
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of H.K. Narang Hosiery Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term 40 CRISIL B+/Stable
Bank Loan Facility
Cash Credit 65 CRISIL B+/Stable
Letter of Credit 20 CRISIL A4
The ratings reflect the company's below-average financial risk
profile, marked by its modest net worth, high gearing, and below-
average debt protection metrics, and modest scale of operations in
a highly fragmented textile industry. These rating weaknesses are
partially offset by the promoters' extensive industry experience.
Outlook: Stable
CRISIL believes that HK will benefit from the extensive experience
of its promoters. The outlook may be revised to 'Positive' if the
company's financial risk profile improves supported by higher-
than-expected increase in the scale of operations or profitability
or in case of any significant capital infusion by the promoters.
Conversely, the outlook may be revised to 'Negative' in case the
company's accruals are lower than expected or in case of
deterioration in the company's financial risk profile driven by
higher-than-expected working capital requirements or higher-than-
expected debt-funded capital expenditure.
Set up as a proprietorship firm in 1990, HK manufactures garments
(contributing to around 60 per cent of its total revenue) such as
jackets, sweaters, cardigans, and T-shirts. It also trades in yarn
(contributing to around 40 per cent of total revenue). HK was
reconstituted as a private limited company in July 2011. It is
promoted by the Ludhiana based, Narang family.
JAIKA VEHICLE: CRISIL Assigns 'B' Ratings to INR200MM Loans
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Jaika Vehicle Trade Private Limited.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 60 CRISIL B/Stable
Cash Credit 40 CRISIL B/Stable
Cash Credit 50 CRISIL B/Stable
Bank Guarantee 80 CRISIL A4
Bank Guarantee 50 CRISIL B/Stable
The rating reflects JVTPL's subdued financial risk profile, marked
by high external indebtedness, and modest interest coverage ratio.
The rating also reflects JVTPL's limited track record of operation
in the competitive luxury car segment. These rating weaknesses are
partially offset by the extensive experience of JVTPL's promoters
in the automobile dealership business and the association of JVTPL
with the Audi brand.
Outlook: Stable
CRISIL believes that JVTPL will continue to benefit from the
extensive experience of its promoters in the automobile dealership
segment and its association with the Audi brand over the medium
term. The outlook may be revised to 'Positive' if the company
reports a significant growth in its revenues and profitability,
while improving its capital structure and debt protection
indicators. Conversely, the outlook may be revised to 'Negative'
in case of a decline in JVTPL's revenues and margins; or if there
is lengthening of its working capital cycle, thereby adversely
affecting its financial risk profile.
JVTPL, part of the Jaika Group, was incorporated in 1994, by the
Kale family. The company is an authorized dealer for passenger
vehicles of Audi India division of Volkswagen Group Sales India
Pvt Ltd (Audi) in Chattisgarh and Vidharbha region of Maharashtra.
JVTPL started dealership for Audi in March 2012 and currently
operates 1 showroom and 1 workshop each in Nagpur and Raipur. The
day-to-day operations of the company are managed by Mr. Gautam
Kale.
JVTPL reported a net loss of INR29.2 million on net sales of
INR392.7 million for 2012-13 (refers to the financial year,
April 1 to March 31), against net loss of INR0.7 million on net
sales of INR3.8 million for 2011-12.
JAY KHODIYAR: CRISIL Reaffirms 'B' Ratings on INR79.5MM Loans
-------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Jay Khodiyar
Cotton Pvt Ltd continues to reflect JKCPL's modest scale of
operations, high seasonality in working capital requirements, and
weak financial risk profile, marked by high gearing and weak debt
protection metrics. These rating weaknesses are partially offset
by the benefits that the company derives from its promoters'
extensive experience in the cotton industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 15 CRISIL B/Stable (Reaffirmed)
Proposed Long Term 4.5 CRISIL B/Stable (Reaffirmed)
Bank Loan Facility
Working Capital
Demand Loan 60 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that JKCPL will continue to benefit from its
promoters' extensive industry experience. The outlook may be
revised to 'Positive' if the company improves its scale of
operations and profitability, or if it receives any sizeable
equity infusion leading to sustained improvement in capital
structure and debt protection metrics. Conversely, the outlook may
be revised to 'Negative' if it faces further pressure on its
profitability or if its working capital requirements increase
further, weakening its financial risk profile, particularly
liquidity.
Update
For 2012-13 (refers to financial year, April 1 to March 31), JKCPL
reported revenue of INR434 million, year-on-year growth of 44 per
cent, mainly driven by diversification into trading of processed
cotton, which accounted for around 20 per cent of the company's
total revenue during the year mainly due to limited availability
of raw cotton for processing. During the current year, however,
trading income is expected to contribute to less than 5 per cent
of total revenue. However, JLCPL's operating income is likely to
be sustained around INR450 million, supported by improvement in
availability of cotton and consequent healthy capacity utilisation
levels. JKPCL's operating margin of 2.3 per cent in 2012-13 was
in line with past trends. Operating margin is expected to
marginally improve during 2013-14, though it will remain
susceptible to volatility in raw material prices. The company's
working capital requirements are high during the peak cotton
season. The company had gross current assets of 84 days as on
March 31, 2013. CRISIL believes that JKCPL's GCAs will remain at
80 to 100 days over the medium term.
JKPCL's financial risk profile remains below average, marked by
its small net worth of INR21.9 million and high gearing of 3.85
times as on March 31, 2013. The company's debt protection metrics
also remained below average, with net cash accruals to total debt
(NCATD) and interest coverage ratios of 0.04 times and 1.4 times,
respectively, for 2012-13. In the absence of any sizeable
improvement in JKCPL's scale of operations or profitability,
CRISIL believes that JKPCL's financial risk profile will remain
below average over the medium term. Its liquidity is stretched
marked by low cash accruals, which are expected around INR3
million in 2013-14 against which the company has no debt repayment
obligations. The bank limit utilisation has been high at over 95
per cent during the peak season. CRISIL believes that JKCPL's
liquidity will remain stretched over the medium term driven by low
cash accruals.
JKCPL was set up in 2008 by Mr. Nanabhai Kalsaria, Mr. Mangalbhai
Ladmur, and Mr. Nagjibhai Rathore, who have over twenty years of
experience in the cotton industry. The company processes raw
cotton into cotton bales and cotton seeds and caters to domestic
markets. The company's unit is based in Bhavnagar (Gujarat).
KANAKA MAHALAKSHMI: CRISIL Puts 'B' Ratings on INR190MM Loans
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Kanaka Mahalakshmi Rice Industries.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Short Term Bank Facility 10 CRISIL A4
SME Credit 5 CRISIL B/Stable
Proposed Long Term Bank
Loan Facility 130 CRISIL B/Stable
Cash Credit 30 CRISIL B/Stable
Long Term Loan 25 CRISIL B/Stable
The ratings reflect KMRI's modest scale of operations in intensely
competitive rice milling industry and its below-average financial
risk profile, marked by weak debt protection metrics. The ratings
also factor in the susceptibility of KMRI's operating margin to
changes in government regulations and to volatility in raw
material prices. These rating weaknesses are partially offset by
the extensive industry experience of KMRI's promoters.
Outlook: Stable
CRISIL believes that KMRI will continue to benefit over the medium
term from the extensive industry experience of its promoters. The
outlook may be revised to 'Positive' if KMRI's revenues and
profitability increase substantially, resulting in higher-than-
expected accruals and hence to an improvement in its financial
risk profile. Conversely, the outlook may be revised to 'Negative'
if KMRI undertakes aggressive debt-funded expansions, or its
working capital management deteriorates further, leading to
weakening of its liquidity.
Set up in 1989 as a partnership firm, KMRI is engaged in the
milling and processing of paddy into rice, rice bran, broken rice
and husk. The firm is promoted by Mr. Burugu Lingaiah and Mr.
Burugu Satyanarayana.
KMRI reported profit after tax (PAT) of INR2.3 million on net
sales of INR120.3 million during 2012-13 (refers to financial
year, April 1 to March 31) as against PAT of INR2.0 million on net
sales of INR111.4 million during 2011-12.
KESHAV COTTON: CRISIL Assigns 'B+' Ratings to INR90MM Loans
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank
facilities of Keshav Cotton Industries.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 31 CRISIL B+/Stable
Cash Credit 50 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 9 CRISIL B+/Stable
The rating reflects the modest scale of operations at KCI's newly
started facility amid intense competition in the industry,
expected weak financial risk profile marked by high gearing and
weak debt protection metrics, and susceptibility of margins to
adverse regulatory changes. These rating weaknesses are partially
offset by KCI's partners' extensive experience in the cotton
ginning industry, and its established customer and supplier
relationships.
Outlook: Stable
CRISIL believes that KCI will continue to benefit over the medium
term from its partners extensive industry experience. The outlook
may be revised to 'Positive' if the firm's scale of operations
increases substantially, along with improvement in its
profitability, or its capital structure improves driven most
likely by equity infusion or larger-than-expected cash accruals.
Conversely, the outlook may be revised to 'Negative', if the
firm's financial risk profile weakens, caused most likely by an
increase in working capital borrowings, larger-than-expected debt-
funded capital expenditure, or a disruption in its operations
because of adverse regulatory changes.
Formed in 2013, KCI is promoted by Vijapur (Gujarat)-based Patel
family and other partners. The firm is engaged in cotton ginning
and pressing business.
KOTHARI FOODS: CRISIL Lowers Rating on INR1 Billion Loan to 'D'
---------------------------------------------------------------
CRISIL has downgraded its ratings on short term bank facilities of
Kothari Foods and Fragrances (KFF, a part of the Rotomac group) to
CRISIL D' from 'CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Letter of Credit 1,000 CRISIL D (Downgraded from
'CRISIL A4+')
The rating downgrade reflects recent instances of devolvement of
letters of credit (LCs) in group companies (including KFF), which
remained un-regularised for over 30 days. These devolvements are
on account of delay in receiving funds from its merchant trading
clients.
Rotomac group has a modest financial risk profile and exposed to
significant debtor risks. However, the group continues to benefit
from its extensive experience of promoters in trading business and
healthy customer relations.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of Kothari Food and Fragrances, Rotomac
Global Pvt Ltd, Crown Alba Writing Instruments India Pvt Ltd,
Rotomac Exports Pvt Ltd, Rotomac Exim Pvt Ltd, Rotomac Polymers
Pvt Ltd, and West Coast Extrusion Pvt Ltd. This is because all
these entities, collectively referred to as the Rotomac group
herein, are in the same line of business, have a common
management, and share fungible cash flows.
The Rotomac group trades in various commodities, including
foodgrain, tiles, industrial equipment, edible oil, industrial
fuels, iron ore, diamonds, and polymers. Under RGPL and Crown
Alba, the Rotomac group manufactures pens, which are sold under
the Rotomac, Designmate, and Inglish brands. This division is
expected to account for INR1.25 billion of the group's revenue in
2013-14 (refers to financial year, April 1 to March 31).
M.D PRINTING: CRISIL Assigns 'B-' Ratings to INR70MM Loans
----------------------------------------------------------
CRISIL has assigned its ' CRISIL B-/Stable' rating to the bank
facilities of M.D Printing and Packaging Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 7.5 CRISIL B-/Stable
Term Loan 62.5 CRISIL B-/Stable
The rating reflects MDPL's below-average financial risk profile on
account of the implementation phase of the project and its
exposure to competition from large and established players in the
potato chips and snacks market. These rating weaknesses are
partially offset by the promoters' extensive experience in the
related industry and low off take risk due to assured orders from
Pepsico India Holdings Pvt Ltd for around 70 per cent of its
potato chips manufacturing capacity.
Outlook: Stable
CRISIL believes that MDPL's business risk profile will improve
over the medium term with the company stabilising its operations.
The outlook may be revised to 'Positive' in case of earlier-than-
expected ramp up in operational income leading to better cash
accruals. Conversely, the outlook may be revised to 'Negative' in
case of delays in project implementation, lower-than-expected
capacity utilisation, low cash accruals owing to pressure on
profitability, or more-than-expected debt-funded capital
expenditure, leading to deterioration in its financial risk
profile.
MDPL, incorporated in November 2011, has set up a manufacturing
unit for the production of potatoes chips and extruded snacks in
Haridwar (Uttarakhand). The company also has a packaging unit in
Himachal Pradesh with capacity of 30 tonnes per annum. The company
is closely held by Mohd. Daud and his family members.
NEW ERA: ICRA Downgrades Rating on INR25cr Loans to 'D'
-------------------------------------------------------
ICRA has revised the long term rating for the INR25.00 crore bank
lines of New Era Enviro Ventures Private Limited to '[ICRA]D' from
'[ICRA]B+' earlier.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term fund 25.00 Revised to [ICRA]D
based limits from [ICRA]B+
The rating is primarily constrained by the recent delays in
repayment of term loan installments by NEVPL. NEVPL commenced
producing power in April 2013 at its 2 MW solar power plant in
Deogarh, Jharkhand. The company had taken foreign currency loans
of INR15.00 crore at INR54 per dollar. However, sharp depreciation
in the rupee by over 15% in the last 1 year has resulted in higher
than anticipated interest expenses and principal repayments.
Further, owing to lower irradiation at Deogarh and maintenance
related issues, PLF levels in FY13 were low at 14%. Consequently
NEVPL's cash flows have been insufficient to meet the debt
obligations in a timely manner.
Going forward, timely servicing of debt obligations and
improvement in PLF levels would constitute key rating
sensitivities.
New Era Enviro Ventures Private Limited is a Special Purpose
Vehicle (SPV) set up under the Polsani group to operate a 2 MW
solar power plant at Charki village, Jharkhand with an overall
project cost of INR35,.5 crore. The plant commenced operations in
April 2013 and in its first year of operations NEVPL recorded a
PLF of 14%. In FY13 NEVPL recorded operating income of INR4.36
crore and profit after tax of INR0.06 crore.
NORTH EASTERN EDUCARE: CRISIL Ups Rating on INR144.2M Loans to B-
-----------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of North
Eastern Educare & Research Pvt Ltd (part of the Kaziranga group)
to 'CRISIL B-/ Stable' from 'CRISIL D'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 144.2 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
The upgrade reflects the Kaziranga group's prompt debt servicing,
backed by the promoters' financial support. The promoters infused
INR215 million through unsecured loans and INR38 million in equity
in 2012-13 (refers to financial year, April 1 to
March 31), to support the group's fund requirements in its initial
stage of operations, and to meet its debt obligations. Given its
nascent operations, the group's cash accruals are insufficient to
service its debt. The Kaziranga group is likely to generate cash
accruals of around INR20 million in 2013-14, vis-a-vis its debt
obligations of INR29 million. The promoters are likely to fund the
shortfall through unsecured loans; timeliness of such a fund
infusion will determine the rating direction over the medium term.
The ratings continue to reflect the Kaziranga group's below-
average financial risk profile, marked by high gearing, small net
worth and weak debt protection metrics. The rating also factors in
the limited track record of the Kaziranga University promoted by
the group, and the intense regulation in the education segment in
India. These rating weaknesses are, however, mitigated by healthy
demand for education in North-East India.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of NEER and North Eastern Knowledge
Foundation (NEKF). This is because the entities together referred
to as the Kaziranga group have a common management team, and
operational linkages.
Outlook: Stable
CRISIL believes that the Kaziranga group will continue to benefit
from the promoters' financial support; however, the group's
liquidity will remain constrained by low cash accruals in its
initial stage of operations. The outlook will be revised to
'Positive' if the group's liquidity significantly improves, driven
by an increase in net cash accruals and controlled capital
investments or a sizable capital infusion by the promoters.
Conversely, the outlook may be revised to 'Negative' if the group
records a slower-than-anticipated ramp-up in student intake
resulting in lower-than-expected cash accruals adversely affecting
its liquidity; or if the group's capital structure weakens,
because of a large debt-funded capital expenditure programme.
The Kaziranga group is promoted by the Assam-based Khetan group
and the West Bengal-based Goel group. In 2012, the promoter group
registered NEKF under the Indian Trust Act. The trust founded the
Kaziranga University, a private university approved by the All
India Council for Technical Education (AICTE). The university
offers graduate and postgraduate educational programmes.
NORTH EASTERN KNOWLEDGE: CRISIL Ups Rating on INR265MM Loan to B-
-----------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of North
Eastern Knowledge Foundation (NEKF; part of the Kaziranga group)
to 'CRISIL B-/ Stable' from 'CRISIL D'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 265 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
The upgrade reflects the Kaziranga group's prompt debt servicing,
backed by the promoters' financial support. The promoters infused
INR215 million through unsecured loans and INR38 million in equity
in 2012-13 (refers to financial year, April 1 to
March 31), to support the group's fund requirements in its initial
stage of operations, and to meet its debt obligations. Given its
nascent operations, the group's cash accruals are insufficient to
service its debt. The Kaziranga group is likely to generate cash
accruals of around INR20 million in 2013-14, vis-a-vis its debt
obligations of INR29 million. The promoters are likely to fund the
shortfall through unsecured loans; timeliness of such a fund
infusion will determine the rating direction over the medium term.
The ratings continue to reflect the Kaziranga group's below-
average financial risk profile, marked by high gearing, small net
worth and weak debt protection metrics. The rating also factors in
the limited track record of the Kaziranga University promoted by
the group, and the intense regulation in the education segment in
India. These rating weaknesses are, however, mitigated by healthy
demand for education in North-East India.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of NEKF and North Eastern Educare &
Research Pvt Ltd. This is because the entities together referred
to as the Kaziranga group have a common management team, and
operational linkages.
Outlook: Stable
CRISIL believes that the Kaziranga group will continue to benefit
from the promoters' financial support; however, the group's
liquidity will remain constrained by low cash accruals in its
initial stage of operations. The outlook will be revised to
'Positive' if the group's liquidity significantly improves, driven
by an increase in net cash accruals and controlled capital
investments or a sizable capital infusion by the promoters.
Conversely, the outlook may be revised to 'Negative' if the group
records a slower-than-anticipated ramp-up in student intake
resulting in lower-than-expected cash accruals adversely affecting
its liquidity; or if the group's capital structure weakens,
because of a large debt-funded capital expenditure programme.
The Kaziranga group is promoted by the Assam-based Khetan group
and the West Bengal-based Goel group. In 2012, the promoter group
registered NEKF under the Indian Trust Act. The trust founded the
Kaziranga University, a private university approved by the All
India Council for Technical Education (AICTE). The university
offers graduate and postgraduate educational programmes.
The promoter group also established NEER in 2012 to provide
boarding facilities to students enrolled in Kaziranga University.
The facilities include accommodation, cafeteria, pharmacy, and
transport.
R.S.V. COTTON: CRISIL Places 'B' Ratings on INR55MM Loans
---------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the bank
facilities of R. S. V. Cotton Industries (part of Kakad Group).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 25 CRISIL B/Stable
Term Loan 30 CRISIL B/Stable
The rating reflects Kakad Group modest scale and limited track
record of operations coupled with its subdued financial risk
profile marked by modest net worth and high gearing. These rating
weaknesses are partially offset by benefits that KG derives from
the extensive experience of the partners in the cotton trading
industry and their established relations with both customers and
suppliers in and around Amravati.
For arriving at the rating, CRISIL has consolidated the business
and financial risk profiles of R.S.V. Cotton Industries (RSV) and
V.S. Cotton Industries, together referred to as the Kakad group
(KG); on account of their common management, similar line of
business, and significant financial linkages.
Outlook: Stable
CRISIL believes that KG will continue to benefit over the medium
term from the extensive industry experience of its partners and
established relations with customers and suppliers. The outlook
may be revised to 'Positive' if the group increases its scale of
operations substantially, while improving its profitability and
capital structure. Conversely, the outlook may be revised to
'Negative' if the group reports lower than expected revenues or
profitability or faces a significant elongation of working capital
cycle, thereby impacting its financial risk profile.
RSV, a partnership firm set up by Mr. Vivek Kakad, Mr. Abdul
Qureshi and Mr. Mohd. Shafikur Rehman in 2013; is engaged in the
ginning and pressing of cotton. The firm is expected to commence
its operations from February 2014. RSV's manufacturing facilities
is located at Anjangaon (Dist. Amravati).
VSC, a partnership firm set up by Mr. Sudhakar Kakad and Mr. Mohd.
Ziya Mansuri in 2012; is also engaged in the ginning and pressing
of cotton. The firm commenced its operations from February 2013.
VSC's manufacturing facilities is located at Murtizapur (Dist.
Akola).
The day-to-day operations of both the entities are managed by Mr.
Sudhakar Kakad and Mr. Vivek Kakad. The Kakad family has been in
the business of cotton trading for more than a decade.
KG, on a consolidated basis, reported a profit after tax (PAT) of
INR0.7 million on net sales of INR72.6 million for 2012-13 (refers
to financial year, April 1 to March 31).
RATCHET LABORATORIES: CRISIL Cuts Ratings on INR170MM Loans to D
----------------------------------------------------------------
CRISIL has downgraded its ratings on the bank loan facilities of
Ratchet Laboratories Ltd (RLL; part of the Ratchet group) to
'CRISIL D/CRISIL D' from 'CRISIL BB+/Negative/CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 120 CRISIL D (Downgraded from
'CRISIL BB+/Negative')
Letter of Credit 10 CRISIL D (Downgraded from
'CRISIL A4+')
Rupee Term Loan 40 CRISIL D (Downgraded from
'CRISIL BB+/Negative')
The rating downgrade reflects delays by RLL in servicing its term
debt, along with the company's continuously overdrawn cash credit
account (for more than 30 days). The delays have been caused by
the group's weak liquidity, driven by its working-capital-
intensive operations and poor debtor realisation.
The ratings also take in to account the group's limited financial
flexibility, as a result of its modest capital base. However, the
group benefits from its promoter's extensive experience in the
pharmaceutical business.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of RLL and Ratchet Biotech Pvt Ltd,
together referred to as the Ratchet group. This is because both
the companies are in the same line of business and are under a
common management.
RLL was founded by Mr. Manoj Vasudev, its promoter-director, in
2004. The company contract-manufactures pharmaceutical
formulations, including liquids, injectibles, tablets, and
capsules, for medium-size pharmaceutical companies in India with
own manufacturing unit at Baddi (Himachal Pradesh).
RBPL markets branded formulations manufactured by RLL. These
brands are marketed in Haryana, Punjab, Madhya Pradesh, and Uttar
Pradesh.
The branded formulations segment contributes less than 5 per cent
to the Ratchet group's revenues, while rest comes from contract-
manufacturing.
For 2012-13 (refers to financial year, April 1 to March 31), RLL,
on a standalone basis reported a net profit of INR12.2 million on
net sales of INR 621.5 million, as against a net profit of INR23.3
million on net sales of INR360.6 million for 2010-11.
ROTOMAC EXPORTS: CRISIL Cuts Ratings on INR2.43BB Loans to 'D'
--------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Rotomac Exports Pvt Ltd (a part of the Rotomac group) to 'CRISIL
D/CRISIL D' from 'CRISIL BB+/Stable/CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 50 CRISIL D (Downgraded from
'CRISIL A4+')
Cash Credit 30 CRISIL D (Downgraded from
'CRISIL BB+/Stable')
Export Packing Credit 100 CRISIL D (Downgraded from
'CRISIL A4+')
Letter of Credit 2250 CRISIL D (Downgraded from
'CRISIL A4+')
The rating downgrade reflects recent instances of devolvement of
letters of credit (LCs) in group companies (including REPL), which
remained un-regularised for over 30 days. These devolvements are
on account of delay in receiving funds from its merchant trading
clients.
Rotomac group has a modest financial risk profile and exposed to
significant debtor risks. However, the group continues to benefit
from its extensive experience of promoters in trading business and
healthy customer relations.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of Rotomac Exports Pvt Ltd, Rotomac Global
Pvt Ltd, Crown Alba Writing Instruments India Pvt Ltd, Rotomac
Exim Pvt Ltd, Rotomac Polymers Pvt Ltd, Kothari Food and
Fragrances, and West Coast Extrusion Pvt Ltd. This is because all
these entities, collectively referred to as the Rotomac group
herein, are in the same line of business, have a common
management, and share fungible cash flows.
The Rotomac group trades in various commodities, including
foodgrain, tiles, industrial equipment, edible oil, industrial
fuels, iron ore, diamonds, and polymers. Under RGPL and Crown
Alba, the Rotomac group manufactures pens, which are sold under
the Rotomac, Designmate, and Inglish brands. This division is
expected to account for INR1.25 billion of the group's revenue in
2013-14 (refers to financial year, April 1 to March 31).
ROTOMAC GLOBAL: CRISIL Cuts Ratings on INR19.25BB Loans to 'D'
--------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Rotomac Global Private Limited to 'CRISIL D/CRISIL D' from 'CRISIL
BB+/Stable/CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 200 CRISIL D (Downgraded from
'CRISIL A4+')
Cash Credit 200 CRISIL D (Downgraded from
'CRISIL BB+/Stable')
Export Packing Credit 380 CRISIL D (Downgraded from
'CRISIL A4+')
Letter of Credit 18,000 CRISIL D (Downgraded from
'CRISIL A4+')
Packing Credit 350 CRISIL D (Downgraded from
'CRISIL BB+/Stable')
Term Loan 120 CRISIL D (Downgraded from
'CRISIL BB+/Stable')
The rating downgrade reflects recent instances of devolvement of
letter of credit's (LC's) in group companies (including RGPL)
which remained un-regularised for over 30 days. These devolvements
are on account of delay in receiving funds from its merchant
trading clients.
Rotomac group has a modest financial risk profile and exposed to
significant debtor risks. However, the group continues to benefit
from its extensive experience of promoters in trading business and
healthy customer relations.
About the Group
The Rotomac group trades in various commodities, including food
grains, tiles, industrial equipment, edible oil, industrial fuels,
iron ore, diamonds, and polymers. Under RGL and Crown Alba, the
Rotomac group manufactures pens, which are sold under the Rotomac,
Designmate, and Inglish brands. This division accounted for
INR1.25 billion of the group's revenues in 2013-14.
ROYAL STAR: CRISIL Assigns 'B+' Ratings to INR160MM Loans
---------------------------------------------------------
CRISIL has revoked the suspension of its ratings on the bank
facilities of Royal Star Agrotech Pvt Ltd, and has assigned its '
CRISIL B+/Stable ' ratings to the company's bank facilities.
CRISIL had earlier, on January 27, 2014, suspended the ratings as
RAPL had not provided the information required for a rating
review. RAPL has now shared the requisite information, enabling
CRISIL to assign a rating to the company's bank facilities.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 75 CRISIL B+/Stable (Assigned;
Suspension Revoked)
Long Term Loan 85 CRISIL B+/Stable (Assigned;
Suspension Revoked)
The rating reflects RAPL's below-average financial risk profile,
marked by small net worth, and the company's modest scale of
operations in the highly fragmented rice industry. These rating
weaknesses are partially offset by the promoters' extensive
experience in the rice milling industry.
Outlook: Stable
CRISIL believes that RAPL will benefit from experience of its
promoters in the rice industry. The outlook may be revised to
'Positive' if the company's financial risk profile improves,
driven by better-than-expected cash accruals or equity infusion
along with efficient working capital management. Conversely, the
outlook may be revised to 'Negative' in case of stress on its
liquidity profile resulting from lower-than-expected cash accruals
or larger-than-expected debt-funded working capital requirements
or debt-funded capex.
RAPL was incorporated in 2010 and commenced its commercial
operations from October 2011. The company is promoted by Mr.
Sanjay Kumar Gupta along with his family members Mr. Ajay Kumar
Gupta, Mr. Anil Kumar Geol, and Mr. Sahil Gupta. RAPL is engaged
in milling of basmati rice.
S K P STEEL: CRISIL Reaffirms 'B+' Rating on INR145MM Loans
-----------------------------------------------------------
CRISIL's ratings on the bank facilities of S K P Steel Industries
Pvt Ltd continue to reflect SKP's moderate financial risk profile
and working capital intensive nature of operations; these rating
weaknesses are partially offset by the benefit that SKP derives
from its promoters' extensive experience in the iron and steel
industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 2.5 CRISIL A4 (Reaffirmed)
Cash Credit 110 CRISIL B+/Stable (Reaffirmed)
Letter of Credit 2.5 CRISIL A4 (Reaffirmed)
Proposed Long Term 6.9 CRISIL B+/Stable (Reaffirmed)
Bank Loan Facility
Term Loan 28.1 CRISIL B+/Stable (Reaffirmed)
For arriving at the rating, CRISIL has treated SKP's outstanding
unsecured loans of INR46.4 million from its promoters and other
affiliates as on March 31, 2013, as neither debt nor equity. This
is because these loans are subordinated to bank loans and are
likely to be retained in the business over the medium term.
Furthermore, the interest charged on the unsecured loans is less
than that charged on the bank facilities.
Outlook: Stable
CRISIL believes that SKP will benefit over the medium term from
its promoters' extensive industry experience. The outlook may be
revised to 'Positive' if SKP's financial risk profile improves
significantly, most likely through equity infusion by the
promoters, or there is a substantial and sustainable improvement
in its revenues and profitability, while improving its working
capital management. Conversely, the outlook may be revised to
'Negative' if SKP's profitability or revenues decline, resulting
in lower-than-expected cash accruals, or the company undertakes
any larger-than-expected, debt-funded capital expenditure
programme, thus weakening its financial risk profile.
Update
SKP's operating revenues increased to around INR714.8 million in
2012-13 (refers to financial year, April 1 to March 31), from
INR634.5 million in 2011-12 on account of higher demand for its
traded goods like thermo-mechanically treated (TMT) bars, angles
and channels. SKP's operating margin declined marginally to 3.9
per cent in 2012-13, from 4.2 per cent in 2011-12 on account of
higher proportion of low margin trading sales.
SKP's operations remain working-capital-intensive, as reflected in
its gross current assets of 146 days as on March 31, 2013; largely
on account of receivables of 114 days as on March 31, 2013; the
company's receivables have been high in the past. Its debtors also
have been high at 114 to 161 days in the past three years The
Company, however, follows a conservative inventory policy as
reflected in inventory of 27 days as on March 31, 2013.
SKP's financial risk profile is moderate, marked by a gearing of
2.1 times as on March 31, 2013. The gearing in the preceding year
was at around 1.7 times, which has deteriorated on account of
larger bank funding availed of for financing the incremental
working capital requirement. The company's debt protection metrics
were also moderate with interest coverage and net cash accruals to
total debt (NCATD) ratios of 1.53 times and 10 per cent,
respectively, for 2012-13. The company in 2012-13 generated
accruals of around INR11.9 million against which it had debt
obligations of INR6.34 million. The liquidity of SKP though is
constrained on account of its working capital intensive operations
leading to high utilization of bank lines at 97 per cent in the 12
months ended October 2013.
SKP was originally set up in 2006 as SK Merchandise Pvt Ltd by Mr.
Anirudh Pasari; the name was changed in 2009-10. The company
manufactures Mild Steel (MS) pipes and wires, with installed
capacity of 35,000 tonnes per annum. It also trades in various
steel products. The company is based in Kolkata, West Bengal.
S.R.K. INFRA: CRISIL Assigns 'B-' Ratings to INR150MM Loans
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable' rating to the long-term
bank facilities of S.R.K. Infra Projects Pvt. Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long Term Loan 100 CRISIL B-/Stable
Proposed Long Term
Bank Loan Facility 50 CRISIL B-/Stable
The rating reflects SRKIPL's below average financial risk profile
marked by high gearing and the company's dependence on timely
receipt of lease rentals for servicing its term debt. These rating
weaknesses are partially offset by benefits derived from the
extensive industry experience of its promoters and the prime
location of its residential property.
Outlook: Stable
CRISIL believes that SRKIPL will continue to benefit from
extensive industry experience of its promoters in the real estate
construction industry. The outlook may be revised to 'Positive' if
the lease rentals received by the company is larger than expected
leading to an improvement in the overall credit risk profile of
the company. Conversely, the outlook may be revised to 'Negative'
if there is delay in receipt of rentals or if the company's
dependence on need based fund support from its promoter's
increases leading to deterioration in its credit risk profile.
Set up in 1983 as a proprietorship entity and converted in to a
private limited company during 2004, SRKIPL is involved in the
construction and operation of a single commercial real estate
property at Vishakhapatnam. The company is promoted by Mr.
Satyanarayana Raju.
During 2012-13 (refers to financial year April 1 to March 31),
SRKIPL reported a net loss of INR0.6 million on net sales of
INR1.2 million as against a profit after tax (PAT) of INR0.01
million as against net sales of INR1.4 million during 2011-12.
SATYAMAHARSHI POWER: CRISIL Cuts Ratings on INR150MM Loans to 'D'
-----------------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of
Satyamaharshi Power Corporation Ltd to 'CRISIL D' from 'CRISIL
B+/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 30 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Term Loan 120 CRISIL D (Downgraded from
'CRISIL B+/Stable')
The rating downgrade reflects instances of delay by SMPCL in
servicing its debt; the delays have been caused by the company's
weak liquidity.
SMPCL has a weak financial risk profile marked by negative net
worth and weak debt protection metrics. The company has large
working capital requirements, and its profitability margins are
susceptible to volatility in biomass costs. However, the company
benefits from steady revenues under its power purchase agreement
with Transmission Corporation of Andhra Pradesh Limited.
SMPCL operates a 7.5 mega watt (MW) biomass-based power plant in
Guntur, Andhra Pradesh; the plant became operational in 2004.
SMPCL is jointly owned by KHPL Clean Energy Pvt Ltd and Rohini
Green Energy Pvt Ltd, both of which acquired ownership in 2010
from Velcan Renewable Energy India Ltd.
SENTHIL ANDAVAR: CRISIL Assigns 'B' Ratings to INR50MM Loans
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Senthil Andavar Modern Rice Mill.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 1.6 CRISIL B/Stable
Cash Credit 15 CRISIL B/Stable
Proposed Term Loan 33.4 CRISIL B/Stable
The rating reflects SAMRM's small scale of operations in the
intensely competitive rice milling industry and its below-average
financial risk profile marked by weak debt protection metrics. The
ratings also factor in the susceptibility of the firm's operating
margin to changes in government regulations and to volatility in
raw material prices. These rating weaknesses are partially offset
by the extensive industry experience of SAMRM's promoters.
Outlook: Stable
CRISIL believes that SAMRM will continue to benefit over the
medium term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if SAMRM's revenue and
profitability increase substantially, resulting in higher-than-
expected accruals, and hence, improvement in its financial risk
profile. Conversely, the outlook may be revised to 'Negative' if
SAMRM undertakes aggressive debt-funded expansion, or if its
working capital management deteriorates, leading to weakening of
its liquidity.
Set up in 1999 as a proprietorship firm, SAMRM is engaged in
milling and processing of paddy into rice, rice bran, broken rice,
and husk.
SAMRM reported profit after tax (PAT) of INR0.2 million on net
sales of INR42.7 million for 2012-13 (refers to financial year,
April 1 to March 31), against PAT of INR0.2 million on net sales
of INR28.4 million for 2011-12.
SHEIKH FARID: CRISIL Assigns 'B+' Ratings to INR140MM Loans
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank loan facilities of Sheikh Farid Automobiles Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Rupee Term Loan 40 CRISIL B+/Stable (Assigned)
Cash Credit 90 CRISIL B+/Stable (Assigned)
Proposed Long Term
Bank Loan Facility 10 CRISIL B+/Stable(Assigned)
The rating reflects SFAL's below-average financial risk profile
marked by small net worth and below-average debt protection
metrics, and its exposure to geographical concentration and
intense competition in the automotive dealership market. These
rating weaknesses are partially offset by SFAL's association with
Mahindra & Mahindra Ltd (M&M; rated 'CRISIL AA+/Stable/CRISIL
A1+').
Outlook: Stable
CRISIL believes that SFAL will benefit from its association with
M&M over the medium term. The outlook may be revised to 'Positive'
if SFAL reports higher-than-expected accruals, most likely on
account of significant improvement in the scale of operations and
sustained operating margins, leading to improvement in its
business and financial risk profile. Conversely, the outlook may
be revised to 'Negative' if the accruals of the company are lower
than expected or if it undertakes any debt-funded capital
expenditure or if its working capital cycle weakens thereby
leading to deterioration in the financial risk profile.
SFAL was set up in 2011 by Mr. Vivek Garg and started operations
in May 2012. The company is an authorised dealer of M&M's entire
range of passenger and utility vehicles, including XUV500,
Scorpio, Xylo, Bolero, Verito, Maxximo, Quanto, and Rexton. SFAL
operates two showrooms on 3S format (Sales, Service and Spares) in
Ferozepur and Abohar, and three sales outlets in Faridkot,
Bathinda and Fazilka (all in Punjab).
The promoters of SFAL have been engaged in two-wheeler financing
since 1996 through Sheikh Farid Finvest Ltd (SFFL, 'FB+/Stable').
Mr. Garg, the company's promoter and director, is closely involved
in the day-to-day operations of SFFL. SFFL is engaged in financing
in two-wheeler and four-wheeler segments and fee-based businesses
such as money changing and transfer and insurance distribution.
For 2012-13 (refers to financial year, April 1 to March 31), SFAL
reported profit after tax of INR2.3 million on net sales of
INR781.1 million.
SHIRT COMPANY: CRISIL Reaffirms 'B-' Ratings on INR500MM Loans
--------------------------------------------------------------
CRISIL ratings on the bank facilities of Shirt Company (India)
Limited continues to reflect SCIL's stretched liquidity on account
of its working capital-intensive operations along with significant
exposure to its group entities, Together Textile Mills India Pvt
Ltd and Shiv Bhoj Hotels and Restaurants. These rating weaknesses
are partially offset by the extensive experience of SCL's
promoters in the textile industry and established relationship of
the company with its customers and suppliers.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bill Discounting 50 CRISIL A4 (Reaffirmed)
Letter of Credit 25 CRISIL A4 (Reaffirmed)
Packing Credit 160 CRISIL A4 (Reaffirmed)
Proposed Long Term
Bank Loan Facility 43.8 CRISIL B-/Stable (Reaffirmed)
Term Loan 456.2 CRISIL B-/Stable (Reaffirmed)
Proposed Packing
Credit 65 CRISIL A4 (Reaffirmed)
Outlook: Stable
CRISIL believes that SCL will benefit over the medium term from
the extensive experience of its promoters in the textile industry.
The outlook may be revised to 'Positive' if the company reports a
substantial and sustained improvement in its revenues, while
maintaining its profitability margins; or an improvement in its
working capital management; or a sizeable reduction in its
exposure to its group entities or in case the business risk
profile of the company improves through the expected merger of SCL
with TTIML. Conversely, the outlook may be revised to 'Negative'
if SCL reports a steep decline in its profitability margins or
deterioration in its working capital management or increases
exposure to its group entities thereby resulting in deterioration
of the company's liquidity.
SCL was established by Mumbai-based Mr. Shivanand Shetty in 1984.
The company manufactures shirts, T-shirts, tops, dresses, and
other ready-made garments for men, women, and children.
SCL reported a profit after tax (PAT) of INR38.6 million on net
sales of INR962.9 million for 2012-13 (refers to financial year,
April 1 to March 31), vis-A-vis a PAT of INR37.8 million on net
sales of INR928.9 million for 2011-12.
SONIKA ENGINEERING: CRISIL Rates INR200MM Term Loan at 'B'
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the bank
facilities of Sonika Engineering and Construction Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Term Loan 200 CRISIL B/Stable
The rating reflects SECL's exposure to risks associated with the
early stage of construction and booking of its ongoing projects.
The rating also factors in SECL's vulnerability to cyclical demand
inherent to the Indian real estate sector. These rating weaknesses
are partially offset by the promoters' extensive industry
experience, and SECL's established track record in the real estate
market in Madhya Pradesh.
Outlook: Stable
CRISIL believes that SECL will benefit from the extensive
experience of its promoters in the real estate sector. The outlook
may be revised to 'Positive' if the company reports better-than-
expected booking of units and receipt of customer advances,
resulting in sizeable cash inflows. Any significant funding
support from the promoters could also result in a 'Positive'
outlook revision. Conversely, the outlook may be revised to
'Negative' if SECL's liquidity weakens, because of slower-than-
expected bookings, or delays in the receipt of customer advances,
or significant investments in new projects.
SECL was incorporated in 2009. The company is engaged in real
estate development in Madhya Pradesh. SECL is promoted by Mr. Ajay
Dubey, Mrs. Sonika Dubey, and Mr. K P Sharma. The promoters have
been engaged in the land development and real estate segment in
Bhopal and Indore for over two decades through the proprietorship
firm, Sonika Estates and Colonizers.
SREE RAMA: ICRA Suspends 'B-' Rating on INR5.5cr Loan
-----------------------------------------------------
ICRA has suspended '[ICRA]B-' rating assigned to INR5.50 crore
bank lines of Sree Rama Ginning Mills. The suspension follows
ICRA's inability to carry out a rating surveillance in the absence
of 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.
SRI BHARGAVI: ICRA Suspends 'B/A4' Rating on INR21cr Loans
----------------------------------------------------------
ICRA has suspended '[ICRA]B/A4' ratings assigned to INR21.00 crore
bank facilities of Sri Bhargavi Agro Tech. The suspension follows
ICRA's inability to carry out a rating surveillance in the absence
of 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.
STAR LOGISTICS: CRISIL Assigns 'B' Ratings to INR60MM Loans
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Star Logistics.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Overdraft Facility 30 CRISIL B/Stable
Proposed Overdraft
Facility 30 CRISIL B/Stable
The rating reflects SL's small scale of operations in the highly
fragmented and competitive road freight transport industry, and
its weak financial risk profile, marked by a modest net worth and
high gearing. These rating weaknesses are partially offset by the
extensive industry experience of SL's promoters and its
established relationships with customers.
Outlook: Stable
CRISIL believes SL will continue to benefit over the medium term
from its promoters' experience in the road freight transport
segment and its established tie-ups with its clientele. The
outlook may be revised to 'Positive' if the firm reports higher-
than-expected revenues and profitability, while maintaining its
moderate capital structure. Conversely, the outlook may be revised
to 'Negative' if SL's revenues and margins decline, or it
undertakes a larger-than-expected debt-funded capital expenditure
programme, leading to deterioration in its financial risk profile.
SL, established in 2007 by Mr. Najeebullah Shariff and based in
Mysore (Karnataka), is a third-party logistics service provider to
various cement manufacturing companies.
SL reported a profit after tax (PAT) of INR1.3 million on net
sales of INR140 million for 2012-13 (refers to financial year,
April 1 to March 31), against a PAT of INR7.6 million on net sales
of INR94 million for 2011-12.
SUDHIR AGRO: ICRA Reaffirms 'B+' Rating on INR4cr Loan
------------------------------------------------------
The ratings assigned to the INR20.00 crore (enhanced from INR19.50
crore) bank facilities of Sudhir Agro Oils Private Limited have
been reaffirmed at '[ICRA]B+' on the long-term scale and
'[ICRA]A4' on the short-term scale.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit Limit 4.00 [ICRA]B+ reaffirmed
Non-Fund Based Limits 16.00 [ICRA]A4 reaffirmed
The reaffirmation of ratings factors in the high competitive
intensity in the edible oil industry owing to low entry barriers
and vulnerability to commodity prices and forex risk, though
former is mitigated to an extent by SAOPL's order driven
procurement policy. The ratings also factors in the weak financial
risk profile characterised by stagnant revenue growth during FY
2013, thin profitability, stressed capital structure and weak
coverage indicators. ICRA also notes that company's liquidity has
been stretched as reflected by high utilization of working capital
limits. Nevertheless, the ratings positively factor in the long
experience of the promoters in the edible oil industry; favorable
growth prospects of edible oil in India besides which increasing
substitution of other edible oils by Palm oil has led to higher
growth of the latter.
Sudhir Agro Oils Pvt. Ltd. was incorporated in 1993. The company
is engaged in the trading of edible oils. It trades primarily in
Crude Plam Oil, Mustard Oil, Cotton Seed Oil, Sunflower Oil and
Soya Oil. The company does not have any warehousing facility for
storage of traded products.
The promoter Mr Prem Kumar's family has been involved in the
edible oil trading business for three generations. The parental
firm of Mr Prem Kumar family called Amarnath Khurana & Sons was
incorporated in 1952 and was engaged in the trading of edible
oils. Currently a partnership firm of the promoters is still
operational by the name and style of M/s Amarnath Harbanslal which
was incorporated in 1972.
Recent Results
For the year ended 31st March 2013, SAOPL reported an operating
income of INR82.02 crore and profit after tax of INR0.42 crore
against an operating income of INR80.67 crore and profit after tax
of INR0.62 crore for FY 12.
SUPER SEAL: CRISIL Assigns 'B+' Ratings to INR70MM Loans
--------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Super Seal Flexible Hose Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 5 CRISIL B+/Stable
Cash Credit 65 CRISIL B+/Stable
Letter of Credit 10 CRISIL A4
The ratings reflect SFPL's modest scale of operations in the
intensely competitive hoses manufacturing industry coupled with
working capital intensity of operations. The ratings also reflect
the company's average financial risk profile marked by average
debt protection metrics. These rating weaknesses are partially
offset by the extensive experience of SFPL's promoters, and the
financial support that the company receives from them.
Outlook: Stable
CRISIL believes that SFPL's business risk profile will benefit
from its promoters' extensive experience and established
relationships with customers. The outlook may be revised to
'Positive' in case the company reports higher-than-expected cash
accruals while improving its working capital cycle, leading to
improvement in its liquidity and financial risk profile.
Conversely, the outlook may be revised to 'Negative' if there is a
significant decline in revenues or operating profitability or
further deterioration in working capital management, exerting
pressure on its liquidity.
Established in 1995, SFPL is a Noida-based company that
manufactures hydraulic and industrial hoses. The company also
undertakes assembling of hoses. SFPL is closely held by Mr. Sanjay
Kumar Das and his family members.
THANGAVELU SPINNING: CRISIL Reaffirms B Ratings on INR181.8M Loan
-----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Thangavelu Spinning
Mills Ltd continue to reflect TSML's below-average financial risk
profile, marked by weak capital structure and small networth; the
ratings also continue to reflect exposure to supplier
concentration risks, and susceptibility of operating margin to
volatility in input prices. These rating weaknesses are partially
offset by the extensive experience of TSML's promoter in the
textile industry and the company's established customer
relationship.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 70 CRISIL B/Stable (Reaffirmed)
Corporate Loan 10 CRISIL B/Stable (Reaffirmed)
Long Term Loan 21.5 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 80.3 CRISIL B/Stable(Reaffirmed)
Outlook: Stable
CRISIL believes that TSML will continue to benefit over the medium
term from its promoter's extensive industry experience. The
outlook may be revised to 'Positive' if TSML significantly
improves its scale of operations and profitability leading to
larger-than expected cash accruals, while improving its capital
structure. Conversely, the outlook may be revised to 'Negative' if
TSML undertakes any larger-than-expected debt-funded capital
expenditure (capex) programme or if its profitability declines or
if its working capital management deteriorates, thereby weakening
its financial risk profile.
Set up in 1980 by Mr. P Thangavelu, TSML was reconstituted as a
public limited company in 1995. It manufactures polyester yarn,
and has a manufacturing facility in Bommidi (Tamil Nadu).
UTKAL ENERGY: CRISIL Lowers Rating on INR200MM Loan to 'B+'
-----------------------------------------------------------
CRISIL has downgraded the ratings on the long-term bank facilities
of Utkal Energy Resources Ltd to 'CRISIL B+/Stable' from 'CRISIL
BB-/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Cash 200 CRISIL B+/Stable (Downgraded
Credit Limit from 'CRISIL BB-/Stable')
The rating downgrade reflects the deterioration in UERL's
liquidity, as indicated by the company's closely matched cash
accruals vis-a-vis its debt obligations for 2013-14 (refers to
financial year, April 1 to March 31).
UERL had debt obligations of around INR17.3 million in 2013-14.
The company's cash accruals could be closely matched to these debt
obligations. UERL's weak liquidity is also reflected in its high
bank limit utilisation at 95 per cent on average over the 12
months ended October 31, 2013. The company's bank limit
utilisation has remained high driven by its working-capital-
intensive operations with gross current assets (GCAs) of 180 days
as on March 31, 2013.
The rating also reflects the extensive experience of UERL's
promoters in the coal industry. This rating strength is partially
offset by the company's modest scale of operations in the
fragmented coal industry, and its large working capital
requirements.
Outlook: Stable
CRISIL believes that UERL will benefit over the medium term from
the extensive experience of its promoters in the coal industry.
The outlook may be revised to 'Positive' if UERL's scale of
operations improves, coupled with stable profitability leading to
better-than-expected cash accruals, thereby enhancing its
financial risk profile. Conversely, the outlook may be revised to
'Negative' if UERL's profitability or revenue decline, or the
company's working capital cycle stretches, or the company
undertakes a sizeable debt-funded capital expenditure (capex)
programme, thereby weakening its financial risk profile.
UERL was incorporated in 2011 in Odisha. The company upgrades coal
through resizing and washing, and beneficiates raw coal through
air propulsion and the RAMDRAS (removal of shale from coal by
laser) technology.
UERL was taken over by the Kolkata-based Poddar family in December
2011. The company is managed by four brothers: Mr. Amit Poddar,
Mr. Siddhartha Poddar, Mr. Anurag Poddar, and Mr. Rohit Poddar.
UERL reported a profit after tax (PAT) of INR3.1 million on net
sales of INR315.9 million for 2012-13, vis-a-vis a PAT of INR37.8
million on net sales of INR56.8 million for 2011-12.
V. S. COTTON: CRISIL Assigns 'B' Ratings to INR50MM Loans
---------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the bank
facilities of V. S. Cotton Industries (part of Kakad Group).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 20 CRISIL B/Stable (Assigned)
Term Loan 30 CRISIL B/Stable (Assigned)
The rating reflects Kakad Group modest scale and limited track
record of operations coupled with its subdued financial risk
profile marked by modest net worth and high gearing. These rating
weaknesses are partially offset by benefits that KG derives from
the extensive experience of the partners in the cotton trading
industry and their established relations with both customers and
suppliers in and around Amravati.
For arriving at the rating, CRISIL has consolidated the business
and financial risk profiles of V.S. Cotton Industries and R.S.V.
Cotton Industries, together referred to as the Kakad group; on
account of their common management, similar line of business, and
significant financial linkages.
Outlook: Stable
CRISIL believes that KG will continue to benefit over the medium
term from the extensive industry experience of its partners and
established relations with customers and suppliers. The outlook
may be revised to 'Positive' if the group increases its scale of
operations substantially, while improving its profitability and
capital structure. Conversely, the outlook may be revised to
'Negative' if the group reports lower than expected revenues or
profitability or faces a significant elongation of working capital
cycle, thereby impacting its financial risk profile.
VSC, a partnership firm set up by Mr. Sudhakar Kakad and Mr. Mohd.
Ziya Mansuri in 2012; is engaged in the ginning and pressing of
cotton. The firm commenced its operations from February 2013.
VSC's manufacturing facilities is located at Murtizapur (Dist.
Akola).
RSV, a partnership firm set up by Mr. Vivek Kakad, Mr. Abdul
Qureshi and Mr. Mohd. Shafikur Rehman in 2013; is also engaged in
the ginning and pressing of cotton. The firm is expected to
commence its operations from February 2014. RSV's manufacturing
facilities is located at Anjangaon (Dist. Amravati).
The day-to-day operations of both the entities are managed by Mr.
Sudhakar Kakad and Mr. Vivek Kakad. The Kakad family has been in
the business of cotton trading for more than a decade.
KG, on a consolidated basis, reported a profit after tax (PAT) of
INR0.7 million on net sales of INR72.6 million for 2012-13 (refers
to financial year, April 1 to March 31).
VALMARK HOMES: ICRA Withdraws 'B' Rating on INR18.5cr Loan
----------------------------------------------------------
ICRA has withdrawn the '[ICRA] B' rating assigned to INR18.50
crore term loan of M/s Valmark Homes at the request of the company
as the company has fully redeemed the instrument. There is no
amount outstanding against the rated instrument.
VARDHMAN RICE: CRISIL Assigns 'B-' Ratings to INR150MM Loans
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable' rating to the long-term
bank facilities of Vardhman Rice Exports Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 105 CRISIL B-/Stable
Term Loan 45 CRISIL B-/Stable
The rating reflects VRPL's weak financial risk profile, marked by
small net worth and high gearing, and the company's modest scale
of operations because of the nascent stage of its operations.
These rating weaknesses are partially offset by the extensive
experience of VRPL's promoters in the rice milling industry.
Outlook: Stable
CRISIL believes that VRPL's business risk profile will be
supported over the medium term by its promoters' extensive
experience in the rice industry. The outlook may be revised to
'Positive' if VRPL's liquidity improves, driven by significant
improvement in cash accruals because of significant improvement in
scale of operations arising from better capacity utilisation,
leading to improved capital structure. Conversely, the outlook may
be revised to 'Negative' in case of significant deterioration in
the company's cash accruals leading to deterioration in its
financial risk profile, particularly its liquidity.
VRPL was established in 2013 by Mr. Prem Chand, Mr. Sunil Kumar,
Mr. Hans Raj, and Mr. Raj Kumar. The company is engaged in milling
of basmati rice. Its manufacturing unit in Patran (Punjab) has
milling and sorting capacity of 4 tonnes per annum each.
VEERANARAYANA METAL: CRISIL Puts 'B+' Ratings on INR57MM Loans
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Veeranarayana Metal Alloys Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 5 CRISIL B+/Stable (Assigned)
Long Term Loan 2 CRISIL B+/Stable (Assigned)
Letter of Credit 25 CRISIL A4 (Assigned)
Bank Guarantee 5 CRISIL A4 (Assigned)
Cash Credit 50 CRISIL B+/Stable (Assigned)
The ratings reflect VMPL's weak financial risk profile, marked by
high gearing; moderate scale of operations and susceptibility of
its operating margin to volatility in raw material prices and
intense competition in the lead segment. These rating weaknesses
are partially offset by the extensive experience of VMPL's
promoters in manufacturing lead and lead alloys, and its
established customer relations.
Outlook: Stable
CRISIL believes that VMPL will continue to benefit over the medium
term from the extensive industry experience of its promoters. The
outlook may be revised to 'Positive' if the company enhances its
scale of operations and improves its profitability, thereby
improving its financial risk profile. Conversely, the outlook may
be revised to 'Negative' if VMPL's financial risk profile weakens,
most likely because of large debt-funded capital expenditure
(capex) programmes, or if its revenues and profitability decline.
VMPL was set up in Bengaluru (Karnataka) in 2008 by Mr. Mohan
Kumar and his father Mr. Rajendran Chettiar. The company
manufactures pure lead and lead alloys.
VMPL reported a profit after tax (PAT) of INR1.7 million on net
sales of INR199 million for 2012-13 (refers to financial year,
April 1 to March 31), and a PAT of INR1.4 million on net sales of
INR142 million for 2011-12.
VEL MURUGAN: CRISIL Assigns 'B' Ratings to INR65MM Loans
--------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Vel Murugan Timber Industries (part of
Velmurugan group).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Secured Overdraft Facility 24 CRISIL B/Stable
Foreign Letter of Credit 135 CRISIL A4
Proposed Long Term Bank 41 CRISIL B/Stable
Loan Facility
The ratings reflect Velmurugan group's below-average financial
risk profile, marked by weak capital structure, its modest scale
of operations in an intensely competitive timber trading and
processing industry. These rating weaknesses are partially offset
by the extensive experience of Velmurugan group's partners in the
timber trading & processing industry.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of VTI and Vel Murugan Timber Traders
(VTT), together referred to as Velmurugan group. This is because
both the firms are in the similar line of business, have common
promoters and have significant business synergies.
Outlook: Stable
CRISIL believes that Velmurugan group will continue to benefit
from extensive industry experience of its partners over the medium
term. The outlook may be revised to 'Positive' in the event of the
group reporting significant improvement in its capital structure
and cash accruals, resulting in improvement in its financial risk
profile. Conversely, the outlook may be revised to 'Negative' in
the event of further pressure on the group's financial risk
profile resulting from lower than expected cash accruals or larger
than expected working capital requirement.
Velmurugan Group, based out of Chennai (Tamil Nadu) is involved in
trading and processing of timber. While VTT is engaged only in
trading of timber, VTI is engaged in both trading and processing
of timber. The day-to-day operation of the group is managed by Mr.
Paneer Selvam and Mr. S Sridhar.
Velmurugan group reported a profit after tax (PAT) of INR 3
million on net sales of INR 456 million for 2012-13 (refers to
financial year, April 1 to March 31), against a PAT of INR3
million on net sales of INR550 million for 2011-12.
VIJAY ENGIFAB: CRISIL Assigns 'B-' Ratings to INR155.4MM Loans
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable' rating to the long-term
bank facilities of Vijay Engifab India Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 73 CRISIL B-/Stable
Term Loan 55 CRISIL B-/Stable
Cash Credit 15 CRISIL B-/Stable
Proposed Long Term
Bank Loan Facility 12.4 CRISIL B-/Stable
The rating reflects VEIPL's small scale of and working-capital-
intensive operations, along with its average financial risk
profile, marked by a modest net worth, moderate gearing and
average debt protection metrics. These rating weaknesses are
partially offset by the promoters' extensive industry experience
and their funding support.
Outlook: Stable
CRISIL believes that VEIPL will continue to benefit over the
medium term from the promoters' extensive industry experience and
their funding support. The outlook may be revised to 'Positive' if
the company significantly improves its scale of operations and
profitability along with efficient working capital management.
Conversely, the outlook may be revised to 'Negative' if VEIPL's
financial risk profile, particularly its liquidity deteriorates
further owing to lower-than-expected cash accruals or larger-than-
expected working capital requirements or any unanticipated debt-
funded capital expenditure (capex) programme.
VEIPL was incorporated in Pune (Maharashtra) in 2013. The company
manufactures fabricated items used in the power industry, in
mining and construction equipment, and various other machineries.
VEIPL was founded by Mr. Vijaypal Sharma and his family to take
over the business of a sole proprietorship named Vijay Engineering
and Fabrication. The takeover was effective April 1, 2013.
VINDEEP DEVELOPERS: CRISIL Cuts Ratings on INR110MM Loans to 'D'
----------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank loan
facilities of Vindeep Developers Pvt Ltd to 'CRISIL D' from
'CRISIL B-/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Overdraft Facility 5 CRISIL D (Downgraded from
'CRISIL B-/Stable')
Proposed Long Term 4.4 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL B-/Stable')
Term Loan 100.6 CRISIL D (Downgraded from
'CRISIL B-/Stable')
The rating downgrade reflects persistent irregularities in VDPL's
bank lines mainly on account of the company's weak liquidity.
VDPL's liquidity has been impaired on account of low occupancy
levels of its service apartments. The company is dependent on
external fund infusion to support its repayment obligations.
VDPL is also exposed to intense competition in the hospitality
sector and has a weak financial risk profile, driven by operating
losses resulting in erosion of networth and weak debt protection
metrics. However, the company continues to benefit from the
demonstrated ability of the promoters to support the venture.
VDPL was incorporated in 2006, promoted by Mr. Raj Advani, a
Nigeria-based non-resident Indian. The company operates a service
apartments building with 32 service apartments at Hinjewadi in
Pune (Maharashtra). It commenced operations in June 2012. VDPL's
registered office is in Mumbai.
VDPL reported a net loss of INR26.9 million on net sales of INR4.8
million for 2012-13 (refers to financial year, April 1 to March
31), its first year of operations.
VISHWAJEET MEADOWS: CRISIL Rates INR200 Million Loan at 'B'
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facility of Vishwajeet Meadows.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 200 CRISIL B/Stable
The rating reflects susceptibility of VM's operating performance
to timely execution of the project, flow of customer advances from
current and future bookings and exposure to risks relating to
cyclicality in the real estate segment in and around the company's
area of operations. The rating also factors in the expected
pressure on VM's liquidity due to large repayment obligations in
near term. These rating weaknesses are partially offset by the
extensive experience of the partners in the real estate industry.
Outlook: Stable
CRISIL believes that VM will maintain a stable business risk
profile on the back of extensive experience of the partners in the
real estate business. The outlook may be revised to 'Positive' if
the firm generates higher-than-expected cash flows resulting from
accelerated execution of its projects and improved flow of
advances. Conversely, the outlook may be revised to 'Negative' if
VM's reports significantly lower-than-expected cash flow from
operations, either due to subdued response to the project or lower
than envisaged flow of advances, leading to deterioration in its
financial risk profile.
Vishwajeet Meadows, a partnership firm, established in 2010 by Mr.
Gulabrao B Karanjule. The firm is engaged in real estate
development and is currently undertaking a residential project,
'Vishwajeet Meadows' in Ambernath (East), Thane. The office of the
firm is located at Ambernath, Thane. Besides Mr. Gulabrao B
Karanjule, the other partner of the firm is 'Citi Buildcon Private
Limited' which is also owned by the Karanjule family.
WEST COAST: CRISIL Lowers Rating on INR180MM Loans to 'B'
---------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of West
Coast Extrusion Pvt Ltd (part of the Rotomac group) to 'CRISIL
B/Stable/CRISIL A4' from 'CRISIL BB+/Stable/CRISIL A4+.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 100 CRISIL B/Stable (Downgraded
from 'CRISIL BB+/Stable')
Letter of Credit 300 CRISIL A4 (Downgraded from
'CRISIL A4+')
Term Loan 80 CRISIL B/Stable (Downgraded
from 'CRISIL BB+/Stable')
The rating downgrade reflects recent instances of devolvement of
letter of credits (LCs) in group companies {i.e. Rotomac Global
Pvt Ltd, Crown Alba Writing Instruments India Pvt Ltd, Rotomac
Exports Pvt Ltd and Kothari Food and Fragrances} which remained
un-regularised for over 30 days. These devolvements are on account
of delay in receiving funds from its merchant trading clients.
CRISIL's rating reflects Rotomac group's exposure to significant
debtor risk. The ratings also factor in the group's modest
financial risk profile, marked by substantial total outside
liabilities to tangible net worth, and moderate risk coverage and
interest coverage ratios. However, these rating weaknesses are
partially offset by extensive experience of Rotomac group's
promoters in trading business and healthy customer relations.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of RGPL, Crown Alba, REPL, Rotomac Exim
Pvt Ltd, Rotomac Polymers Pvt Ltd, KFF, and WCEPL. This is because
all these entities, collectively referred to as the Rotomac group
herein, are in the same line of business, have a common
management, and share fungible cash flows.
Outlook: Stable
CRISIL believes that the Rotomac group's will continue to benefit
from its promoters' extensive experience in the trading business.
However, the overall credit risk profile will remain constrained
over the medium term, given the limitations inherent in its
trading business model. The outlook may be revised to 'Positive'
if there is improvement in the group's risk management policies,
or in case of substantial equity infusion by the promoters,
offering adequate protection against debtor risk, forex rate
fluctuations, and price risk. Conversely, the outlook may be
revised to 'Negative' in case of a significant delay or default in
realising payments from debtors, thereby constraining its
liquidity, or in case of any large, debt-funded capital
expenditure.
The Rotomac group trades in various commodities, including food
grains, tiles, industrial equipment, edible oil, industrial fuels,
iron ore, diamonds, and polymers. Under RGL and Crown Alba, the
Rotomac group manufactures pens, which are sold under the Rotomac,
Designmate, and Inglish brands.
=================
I N D O N E S I A
=================
INDO MURO: Straits Resources Files Bankruptcy Petition For Unit
---------------------------------------------------------------
The West Australian reports that Straits Resources has filed for
bankruptcy for its Indonesian subsidiary, PT Indo Muro Kencana,
after placing its Mt Muro gold mine on care and maintenance in
August last year.
Straits executive chairman Andre Labuschagne described the move as
"the least preferred outcome" for PT Indo Muro Kencana but said
efforts to find a buyer had failed despite interest from several
parties, The West Australian relates.
"Therefore the directors of PT IMK were left with no other choice
but to petition the Indonesian Commercial Court to commence
voluntary bankruptcy proceedings," the report quotes Mr.
Labuschagne as saying. "The process of obtaining court approval
for PT IMK to be declared bankrupt can take up to 60 days.
"Once approved by the Indonesian Commercial Court, PTIMK will move
into administration and be managed by a court appointed Curator
(Receiver)."
Mr. Labuschagne said the legal status or solvency of the remainder
of the company was unaffected, The West Australian notes.
Straits remaining asset is the Tritton copper mine in New South
Wales, the report adds.
Straits Resources is an Australian-listed company focused on
acquiring and developing assets within the bulk commodities,
copper and gold sectors.
=========
J A P A N
=========
MITSUBISHI MOTORS: S&P Raises CCR to 'BB' & Removes from Watch
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term corporate
credit rating on Mitsubishi Motors Corp. to 'BB' from 'B+'. At
the same time, S&P removed the ratings from CreditWatch, where it
placed them Nov. 8, 2013. The outlook on the corporate credit
rating is stable.
The upgrade reflects S&P's opinion that an injection of about
JPY244 billion in equity, raised through a public offering
Jan. 29, is likely to allow Mitsubishi Motors to eliminate a large
number of preferred shares in a restructuring of its capital and
also to substantially improve its financial risk profile.
S&P revised the company's financial risk profile to "intermediate"
from "aggressive," reflecting a significant improvement as a
result of the company's ability to eliminate its preferred shares
as well as S&P's implementation of an adjustment for surplus cash
under S&P's revised corporate rating criteria. S&P assumes
Mitsubishi Motors will eliminate all of its preferred shares, held
by Mitsubishi group's three core companies, either through their
repurchase or their conversion to common shares. As a result, S&P
expects funds from operations (FFO) to debt to rise to well above
60% in fiscal 2013 from 18% in fiscal 2012. S&P previously
regarded the preferred shares as having minimal equity content and
treated them as debt in S&P's calculations on the basis of its
view that a significant risk of dilution produced a relatively
high likelihood that Mitsubishi Motors would offer buybacks and
retire preferred shares. S&P now applies a surplus cash
adjustment, viewing 75% of the cash as surplus cash and deducting
it from gross debt and viewing 25% as required for operations.
S&P revised the business risk profile to "fair" from "weak" in
accordance with its reassessment under the revised corporate
criteria. S&P's assessment reflects the company's limited size--
it has about 1.1 million unit sales--and persistent excess
production capacity in the U.S. Partially offsetting these
negative factors are the company's strong position in Southeast
Asia, where growth prospects are good, and ongoing support from
Mitsubishi group's three core companies.
S&P applies a one-notch negative adjustment for our "comparable
ratings analysis." The downward adjustment reflects the company's
small size and limited position in key global vehicle markets
compared with similarly rated peers.
S&P's base case assumes:
-- Solid sales performance;
-- Elimination of all preferred shares;
-- Relatively high capital expenditures over the next three
years; and
-- Moderate cash dividends
S&P, based on these assumptions, arrive at the following credit
measures:
-- EBITDA margins of 8.5% to 9%;
-- FFO to debt well above 60%; and
-- Positive free cash flow.
S&P assess Mitsubishi Motors' liquidity as "adequate," according
to its criteria, with sources of liquidity likely to exceed 1.2x
uses over the next year.
Primary liquidity sources include:
-- Cash and marketable securities of JPY300 billion to
JPY400 billion;
-- Annual FFO of about JPY140 billion or more; and
-- Unused committed credit facilities of TBH25 billion.
Primary liquidity uses include:
-- Debt maturities; and
-- Capital expenditures.
The stable outlook on Mitsubishi Motors reflects S&P's view that
the company is likely to moderately improve profitability and
sustain its improved financial risk profile.
S&P may raise its rating on Mitsubishi Motors if it believes the
company will likely strengthen its competitive position and
consistently improve profitability while maintaining a
conservative financial policy.
S&P may lower its rating on Mitsubishi Motors if it expects the
company's competitive position in Southeast Asia to weaken,
potentially causing profitability and cash flow to deteriorate
significantly. S&P may also lower the rating if the company
demonstrates an aggressive financial policy, leading S&P to
believe its improved financial risk profile is unsustainable.
However, S&P believes an upgrade is unlikely, at least over the
next 12 months. This is because intensifying competition and high
cyclicality challenge the company's ability to strengthen its
competitive position, making it tough for the company to
significantly improve its business risk profile. S&P also
believes a downgrade is unlikely over the next 12 months, because
the substantial improvement S&P anticipates in the company's
financial risk profile following a capital restructuring would
sufficiently buffer it against possible downward pressure on the
rating, in S&P's opinion.
===============
M O N G O L I A
===============
MONGOLIAN MINING: S&P Lowers Corporate Credit Rating to 'CCC+'
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it had lowered its
long-term corporate credit rating on Mongolia-based coal producer
Mongolian Mining Corp. (MMC) to 'CCC+' from 'B-'. At the same
time, S&P lowered its long-term issue rating on MMC's senior
unsecured notes to 'CCC+' from 'B-'. S&P is keeping all the
ratings on CreditWatch, where they were placed with negative
implications on Aug. 30, 2013.
"We lowered the rating on MMC because the improvement in the
company's liquidity is likely to be delayed more than we
anticipated," said Standard & Poor's credit analyst Xavier Jean.
S&P expected MMC to bolster its liquidity with proceeds from asset
sales, but the company is taking significantly longer than S&P had
anticipated in closing the transactions and receiving the funds.
"We believe that the delay in asset sales indicates increased
risks in MMC's ability to refinance its amortizing bank loans and
settle its US$105 million in promissory notes to a shareholder in
a timely manner," said Mr. Jean.
S&P's cash flow projections indicate that MMC's liquidity position
will only start to stabilize upon execution of all three
refinancing initiatives: asset sales, refinancing of amortizing
bank loans, and settlement of the promissory notes. While the
potential receipt of the proceeds from asset sales by March 2014
would enhance MMC's cash position in the near-term, S&P do not
expect such proceeds to have a lasting effect on the company's
liquidity. S&P projects that the asset-sale proceeds, along with
MMC's cash balance that S&P estimates at US$70 million-
US$80 million, will only marginally cover S&P's estimate of the
company's US$150 million in interest, debt maturities, and
promissory notes due by the end of March 2014. The cumulative
effect of the sale of assets and the refinancing of MMC's
amortizing bank loans with a back-ended amortizing bank loan would
also be mostly temporary. In that scenario, S&P expects MMC's
cash balances to be sufficient for just three to four quarters,
given the current industry conditions and S&P's base-case
assumption of the company's marginally negative monthly cash flow.
As a result, the timely settlement of the promissory notes becomes
crucial for a sustainable liquidity improvement.
S&P acknowledges that MMC could take some further working capital
management measures and limit its capital spending to the minimum.
But these measures will most likely be insufficient to bridge the
company's short-term financing requirements. The tight liquidity
buffer is despite S&P's expectation that MMC's operating
performance will stabilize in 2014 following cost cutting and a
moderate improvement in wash yields, which would partly offset
subdued price realizations.
"We kept the ratings on CreditWatch because we believe any
material delay will jeopardize the company's refinancing efforts
and put further pressure on its liquidity position," said Mr.
Jean. "We could lower the rating by at least one notch within the
next six weeks if MMC does not address its liquidity situation."
S&P could affirm the ratings and resolve the CreditWatch if MMC
receives proceeds from asset sales, and makes tangible progress
toward refinancing amortizing bank loans and settling the
promissory notes. To the extent the latter two initiatives are
not completed, S&P would need to assess whether MMC has sufficient
liquidity to meet its debt obligations due on or before the end of
June 2014.
====================
N E W Z E A L A N D
====================
ABODE DESIGN: Liquidation Will Have Ripple Effect in Industry
-------------------------------------------------------------
Leighton Keith at Fairfax NZ News reports that Head of the Master
Builders Federation Warwick Quinn said the collapse of a New
Plymouth building company will have a ripple effect right through
the local industry.
Award-winning Abode Design and Build went into voluntary
liquidation.
While it's not known exactly how much the company owes to
subcontractors and suppliers, Mr. Quinn said the business' failure
would be felt through the industry in the region, according to
Fairfax NZ News.
Mr. Quinn said, notes the report, more than 90 per cent of New
Zealand construction companies had five staff or less.
"So they don't have necessarily huge amounts of capital where they
can withstand many of these sorts of events. The degree that it
will affect them will depend on how much money is owed," the
report quoted Mr. Quinn as saying.
Mr. Quinn said subcontractors needed to make sure they were paid
regularly and payments were up to date or they could find
themselves virtually caught short overnight the report discloses.
ROSS ASSET: FMA to Drop Ponzi Complaint Against David Ross
----------------------------------------------------------
Hamish McNicol at Stuff.co.nz reports that the Financial Markets
Authority (FMA) will next week drop a complaint against
David Ross, the man responsible for New Zealand's single biggest
fraud.
Stuff.co.nz says Mr. Ross was one of the first four financial
advisers to face the Financial Advisers Disciplinary Committee
(FADC), which was established in 2010 to conduct disciplinary
proceedings relating to complaints against Authorised Financial
Advisers (AFA). But in August last year FMA's complaint against
Mr. Ross was adjourned by the FADC pending the outcome of criminal
charges laid against Mr. Ross, the report says.
He pleaded guilty last year to eight charges brought by the
Serious Fraud Office and the FMA relating to his company, Ross
Asset Management, Stuff.co.nz says.
In November Mr. Ross was jailed for 10 years and 10 months for
what is the single biggest individual fraud in New Zealand
history, the report recalls.
According to Stuff.co.nz, private investors lost about NZ$115
million through a fraudulent scheme in which they thought they had
more than NZ$380 million.
Stuff.co.nz relates that Mr. Ross has since appealed against the
minimum non-parole period of five years five months, and his
lawyer Gary Turkington said this could be heard as early as April.
Following Mr. Ross' guilty pleas and imprisonment, the FMA has
said it would withdraw its complaint against the 63-year-old,
according to Stuff.co.nz.
Stuff.co.nz says the FADC was due to hear proceedings against
Mr. Ross in Wellington on February 10. It has the power to impose
a fine of up to NZ$10,000 and cancel an AFA's authorisation.
But an FMA spokesperson said Mr. Ross' AFA status had already been
cancelled and it would no longer seek to impose any fine against
him, the report adds.
As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 8, 2012, that the High Court appointed PricewaterhouseCoopers
partners John Fisk and David Bridgman as Receivers and Managers to
Ross Asset Management Limited and nine other associated entities
following application by the Financial Markets Authority. The
associated entities are:
* Bevis Marks Corporation Limited;
* Dagger Nominees Limited;
* McIntosh Asset Management Limited;
* Mercury Asset Management Limited;
* Ross Investment Management Limited;
* Ross Unit Trusts Management Limited;
* United Asset Management Limited;
* Chapman Ross Trust;
* Woburn Ross Trust;
* Ace Investments Limited or Ace Investment Trust Limited or
Ace Investment Trust;
* Vivian Investments Limited; and
* Ross Units Trusts Limited.
The Receivers and Managers have also been appointed to Wellington
investment adviser David Robert Gilmore Ross personally.
Mr. Fisk said they have identified investments of nearly
NZ$450 million held on behalf of more than 900 investors across
1,720 individual accounts.
The High Court in mid-December ordered John Fisk and David
Bridgman be appointed liquidators of these companies:
-- Ross Asset Management Limited (In Receivership);
-- Bevis Marks Corporation Limited (In Receivership);
-- McIntosh Asset Management Limited (In Receivership); and
-- Mercury Asset Management Limited (In Receivership).
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel
Elaine T. Fernandez, Julie Anne L. Toledo, and Peter A. Chapman,
Editors.
Copyright 2014. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000 or Nina Novak at 202-241-8200.
*** End of Transmission ***