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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, April 30, 2014, Vol. 17, No. 84
Headlines
A U S T R A L I A
BANKSIA MORTGAGES: ASIC Cancels AFS License
BECASSE PTY: ASIC Bans Directors Following Company Failures
CCI GLOBAL: Cor Cordis Appointed as Administrators
INTEGRATED FIRE: David Clout Appointed as Administrators
* AUSTRALIA: ASIC to Suspend Alan Topp as Liquidator
C H I N A
COUNTRY GARDEN: Moody's Assigns Ba2 Rating on Sr. Unsecured Bonds
COUNTRY GARDEN: S&P Assigns 'BB' Rating to U.S. Dollar Notes
I N D I A
AIPL AMBUJA: ICRA Withdraws 'B+' Rating on INR32.86cr Loans
ALLIED STRIPS: CARE Reaffirms 'D' Rating on INR871.42cr Loans
ANANTSHREE POLYMERS: CARE Assigns 'B+' Rating to INR8.33cr Loan
ANUPAM SYNTHETICS: CRISIL Reaffirms B+ Rating on INR120MM Loans
ARS ALLOYS: ICRA Suspends 'C' Rating on INR8cr Fund Based Loan
BHARAT INTEGRATED: CRISIL Cuts Rating on INR90MM Loans to 'C'
DEMBLA TIMBER: CRISIL Lowers Rating on INR165MM Loan to 'D'
EAST COAST: ICRA Lowers Rating on INR508.5cr Loans to 'D'
FRONTIER TRUCKS: CARE Assigns 'B+' Rating to INR9.99cr Bank Loan
HARITHA FERTILISERS: CRISIL Ups Rating on INR350MM Loan to 'B'
JAGDAMBA AGRO: CARE Assigns 'B+' Rating to INR22.03cr Bank Loan
JANAM STEELS: CARE Assigns 'B+' Rating to INR10cr Bank Loan
JYOTI HOSPITAL: CRISIL Reaffirms 'D' Rating on INR229.3MM Loans
KAMAL WATCH: ICRA Assigns 'B+' Rating to INR6.79cr Loans
KANNAN ENTERPRISES: ICRA Suspends 'D' Rating on INR14cr Loans
KANUNGA EXTRUSION: ICRA Suspends 'B+' Rating on INR22cr Loans
MARIS SPINNERS: ICRA Reaffirms 'B+' Rating on INR44.47cr Loans
NISHANT MARKETING: CRISIL Assigns 'B' Rating to INR50MM Loan
PASHUPATINATH DISTRIBUTORS: CRISIL Puts B+ Rating on INR74M Loans
PRIME INSULATORS: CARE Assigns 'B' Rating to INR4cr Bank Loan
PUNJAB VELOCITY: CARE Assigns 'B+' Rating to INR2.50cr Bank Loan
RAGHUKUL COTTEX: CRISIL Reaffirms 'B+' Rating on INR71MM Loans
RAIGARH FOODS: ICRA Reaffirms 'B+' Rating on INR5.75cr Loans
RATNAGARBHA AGRO: CARE Puts 'B+' Rating on INR11.39cr Bank Loan
RAYFAM ENTERPRISES: CRISIL Puts 'B-' Rating on INR100MM Loans
REWA PATHWAYS: CARE Assigns 'D' Rating to INR23cr Bank Loan
S S S FIBRE: CRISIL Reaffirms 'B+' Rating on INR131.5MM Loans
SARASWATI COTTON: CRISIL Cuts Rating on INR102MM Loans to 'D'
SHIVA METALLOYS: CRISIL Reaffirms 'B+' Rating on INR160MM Loans
SHREE SWAMI: ICRA Assigns 'B+' Rating to INR8cr Bank Loans
SHYAM JEE: CARE Rates INR2.50cr Bank Loan at 'B+'
SINGHANIA & SONS: CRISIL Reaffirms B+ Rating on INR275MM Loans
SONIA OVERSEAS: CARE Assigns 'B' Rating to INR7.50cr Bank Loan
SPORTS INFRATECH: CRISIL Cuts Rating on INR140MM Loans to 'B-'
SURESH TEXTILES: CRISIL Assigns 'B+' Rating to INR90MM Loans
THOMAS AND COMPANY: CRISIL Reaffirms 'B' Rating on INR15MM Loan
TRIVIK HOTELS: CRISIL Assigns 'B+' Rating to INR100MM Loans
I N D O N E S I A
INDONESIA: S&P Affirms 'BB+' LT Sovereign Credit Rating
SRI REJEKI: Moody's Assigns B1 Corporate Family Rating
J A P A N
MT. GOX: Bitcoin Exchange Clients Seek Approval of Accord
N E W Z E A L A N D
* FMA Holds Options Open on Civil Suit vs. Finance Firm Directors
S O U T H K O R E A
DAEWOO MOTOR: Ordered To Pay Legal Fees For Bankrupt US Unit
- - - - -
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A U S T R A L I A
=================
BANKSIA MORTGAGES: ASIC Cancels AFS License
-------------------------------------------
The Australian Securities and Investment Commission has cancelled
Banksia Mortgages Limited's Australian financial services (AFS)
licence.
Banksia Mortgages is one of four subsidiaries of the Victoria-
based Banksia Financial Group, which collapsed in 2012. The others
include the debenture issuer Banksia Securities Limited, Cherry
Fund Limited and BFG Management Pty Limited.
In August 2013, the Supreme Court of Victoria made orders
authorising Banksia Mortgages to wind up the Banksia Mortgage Fund
on the basis that it was just and equitable to do so. In December
2013, a sale of Banksia Mortgage Fund's portfolio of loans saw $85
million distributed to 1,200 investors.
In April 2014, Banksia Mortgages applied to ASIC to cancel its AFS
licence to minimise ongoing costs to investors and to allow it to
transfer money to Banksia Securities Limited which it had been
maintaining for the purposes of liquidity requirements under its
AFS license.
Most investors in Banksia Mortgage Fund have received 100% return
of their money plus interest. Around 108 investors are yet to be
paid all of their money back.
Receiver McGrathNicol has so far paid out 80 cents in the dollar
to Banksia Securities Limited investors.
Banksia Securities Limited had been financially supporting Banksia
Mortgages, the responsible entity for the contributory mortgage
scheme Banksia Mortgage Fund, since the appointment of
McGrathNicol, to allow it to continue to operate.
Banksia Mortgages self-reported a breach of its AFS licensee
financial requirements in April 2013. However, ASIC decided
against taking AFS licensing action at that time. Instead, ASIC
closely monitored Banksia Mortgages as it took steps to wind up
the Banksia Mortgage Fund. ASIC considered this approach was the
best way to maximise the return to investors in the circumstances.
While Banksia Mortgages' AFS licence has been cancelled it
continues, in effect, for the limited purpose of allowing it to
wind up Banksia Mortgage Fund.
ASIC's investigation into the failure of Banksia Financial Group,
including Banksia Securities Limited, continues.
McGrathNicol was appointed receiver to Banksia Securities Limited
and Cherry Fund Limited in October 2012.
BECASSE PTY: ASIC Bans Directors Following Company Failures
-----------------------------------------------------------
Australian Securities and Investments Commission has banned Sydney
chef Justin Russell North and his wife Georgina North from
managing corporations following their involvement in the failure
of three companies.
Mr. and Mrs. North were banned for two years and 18 months
respectively, effective from April 4, 2014.
Liquidators were appointed to Becasse Pty Limited on June 20,
2012, and to Etch Restaurant Pty Limited and North Food Catering
Pty Limited on July 20, 2012.
ASIC found Mr. and Mrs. North failed to exercise their powers and
discharge their director's duties with the requisite degree of
care and diligence.
This failure, ASIC found, resulted in large deficiencies owed to
creditors totalling a combined sum of over AUD7 million for the
three companies.
ASIC Commissioner Greg Tanzer said, 'ASIC's power to disqualify
directors of failed companies is an important preventative measure
used by ASIC to safeguard the public interest.'
Persons banned by ASIC have a right to appeal their banning to the
Administrative Appeals Tribunal, and may lodge their appeal within
28 days.
Section 206F of the Corporations Act 2001 allows ASIC to
disqualify a person from managing corporations for up to five
years if, within a seven year period, the person was an officer of
two or more companies, and those companies were wound up and a
liquidator provides a report to ASIC that the company is unable to
repay its debts.
CCI GLOBAL: Cor Cordis Appointed as Administrators
--------------------------------------------------
Ozem Kassem -- okassem@corcordis.com.au -- and Jason Tang --
jtang@corcordis.com.au -- of Cor Cordis Chartered Accountants were
appointed as administrators of CCI Global Logistics Group Pty
Limited on April 22, 2014.
A first meeting of the creditors of the Company will be held at
Cor Cordis Chartered Accountants, Level 29, 360 Collins Street, in
Melbourne, Victoria, on May 5, 2014, at 11:30 a.m.
INTEGRATED FIRE: David Clout Appointed as Administrators
--------------------------------------------------------
David Lewis Clout -- dclout@cloutinsolvency.com.au -- of David
Clout & Associates was appointed as administrator of Integrated
Fire Systems Pty Ltd on April 28, 2014.
A first meeting of the creditors of the Company will be held at
the David Clout & Associates, Suite 508-509, 147 King Street, in
Sydney on May 8, 2014.
* AUSTRALIA: ASIC to Suspend Alan Topp as Liquidator
----------------------------------------------------
ASIC will suspend the registration of liquidator Alan Godfrey Topp
for six months following a successful application to the
disciplinary body, the Companies Auditors and Liquidators
Disciplinary Board (CALDB).
The suspension commences on 1 May 2014 and ends on 31 October
2014.
ASIC alleged Mr. Topp failed to lodge more than 300 documents with
ASIC over a period of almost four years. The documents, relating
to 61 different companies, included the presentation of accounts
and statements which help show the progress of an external
administration.
ASIC Commissioner John Price said, 'The CALDB's decision
reinforces the fact that registered liquidators must competently
meet both their statutory duties and professional standards. This
includes ensuring they have adequate practice systems and
resources in place to manage their basic reporting obligations.'
The CALDB also required undertakings from Mr. Topp to:
* lodge with ASIC all outstanding statutory lodgements by
May 1, 2014
* make arrangements for the appointment of replacement
liquidators on all of his current administrations by
May 1, 2014, and
* for the next six months following the six-month suspension
period, not accept or hold any appointment as an external
administrator except as a joint appointee with a registered
liquidator or registered liquidators.
At the time of his conduct, Mr. Topp was the sole director and
secretary of Insolvency Resolution Pty Ltd.
The CALDB is an independent statutory body under the Corporations
Act that has the power to cancel or suspend the registration of a
liquidator or auditor.
ASIC's recent actions against registered liquidators who failed to
meet their obligations include:
* ASIC accepting an enforceable undertaking (EU) from Perth
liquidator, Simon Roger Coad, who has agreed to improve
his systems and procedures and have his practice reviewed
by an independent quality reviewer;
* suspending Sydney liquidator William James Hamilton's
registration for six months from June 3, 2014, following
an adverse decision by the CALDB;
* cancelling the registration of Melbourne liquidator Avitus
Thomas (Tom) Fernandez, following an adverse decision by
the CALDB;
* ASIC obtaining court orders prohibiting the re-registration
of Melbourne liquidator, Andrew Leonard Dunner;
* ASIC cancelling the registration of Sydney liquidator,
Mark Darren Levi from the industry, following an adverse
decision by the CALDB;
* ASIC accepting an enforceable undertaking from Sydney
liquidator, Ian Lawrence Struthers, who agreed to ASIC
cancelling his registration as a liquidator for a minimum
of three years; and
* ASIC cancelling the registrations of Sydney liquidator,
Peter Roger Grealish, Melbourne liquidator, Paul Anthony
Pattison, and Peter George Biazos (bankrupted on
July 24, 2013).
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C H I N A
=========
COUNTRY GARDEN: Moody's Assigns Ba2 Rating on Sr. Unsecured Bonds
-----------------------------------------------------------------
Moody's Investors Service has assigned a Ba2 rating to Country
Garden Holdings Company Limited's proposed senior unsecured bonds.
The outlook for the bond rating is stable.
The company will use the new bond proceeds for debt refinancing
and general corporate purposes.
Ratings Rationale
"The new bonds will lengthen the average tenure of Country
Garden's debt portfolio, while lowering the weighted average costs
of borrowing, therefore adding to the stability of its offshore
funding platform," says Lina Choi, a Moody's Vice President and
Senior Analyst.
"The new bonds will also further strengthen Country Garden's
already strong liquidity, and support its strong sales momentum,"
says Choi, also the Lead Analyst for Country Garden.
"On the other hand, the company is exposed to increased financial
risk from its strategy of high sales growth in an environment of
slow economic growth, increased supply in the lower tier cities,
and the tight bank credit environment," says Choi.
Country Garden's fast growth has placed pressure on its
profitability. Its adjusted EBITDA margins contracted to 21.8%in
2013 from 29.3% in 2012. Such margin compression was driven by its
competitive pricing, and high selling and administrative expenses
as contracted sales have grown much faster than revenue
recognition.
The decline in profit margin has in turn pressured its interest
coverage which declined to 3.3x from 3.9x, according to Moody's
calculations. This has resulted in very tight headroom, as
measured against its rating downgrade triggers.
Country Garden's profit margins will likely remain lower than
historical levels for the next 12-18 months, given its fast growth
strategy. To manage the increased financial risk and maintain a
stable Ba2 rating, the company's ability to achieve lower debt
leverage -- through the use of balance sheet cash to pay down
onshore debt and a disciplined approach to land acquisitions -- is
important.
Moody's expects that the company will prudently manage its sales
growth, such that profit margins, cash collections, debt leverage
and revenue recognition will support credit metrics that are
expected for its Ba2 rating.
If Country Garden pursues aggressive sales growth, at the expense
of lower profit margins and cash collection, its ratings could be
under downgrade pressure.
Country Garden's liquidity profile remains strong. Short-term debt
to total debt was 22.1% in December 2013, an improvement from
24.6% in December 2012. Its cash position was RMB26.7 billion
(including restricted cash) as of December 2013, more than
sufficient to cover maturing debt of RMB12.4 billion and committed
land payments of RMB10 billion in 2014.
Country Garden's subsidiary debt and secured debt to total debt
was around 14% in December 2013. If the company draws on more
onshore debt to support its fast growth strategy, this ratio could
exceed 15%, which would cause a notching down of the rating of its
offshore senior unsecured bonds.
The stable outlook reflects Moody's expectations that Country
Garden will manage its sales growth to achieve healthy credit
metrics consistent with the Ba2 rating.
Upward rating pressure in the near term is unlikely, but over the
medium term, it may emerge if Country Garden (i) maintains steady
sales growth and improves its credit metrics, such that
EBITDA/interest exceeds 4.0-4.5x; (ii) maintains EBITDA margins in
the range of 20%-25%; and (iii) maintains strong liquidity -- cash
at 10% -15% of total assets and covers more than 1.0x-1.5x of its
short-term debt.
On the other hand, downward rating pressure would emerge if
Country Garden: (i) posts sustained profit margin deterioration --
EBITDA margin declines below 18%; or (ii) adopts an aggressive
land acquisition strategy, which in turn, has a negative effect on
its liquidity -- cash failing to cover 1.0x of short-term debt.
Credit metrics indicating downgrade pressure would include
EBITDA/interest below 3.0-3.5x, or debt/total capitalization above
55-60% on a sustained basis.
The principal methodology used in this rating was the Global
Homebuilding Industry published in March 2009.
Country Garden Holdings Company Limited, founded in 1997 and
listed on Hong Kong Stock Exchange, is a leading Chinese
integrated property developer. As of December 2013, it had a
sizeable land bank of 72.3 million square meters in attributable
gross floor area.
It also owns and operates 39 hotels with a total of 11,387 rooms
as of December 2013. The hotels are located mainly in Guangdong
Province and support its townships developments.
COUNTRY GARDEN: S&P Assigns 'BB' Rating to U.S. Dollar Notes
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB' long-term
issue rating to a proposed issue of U.S.-dollar-denominated senior
unsecured notes by Country Garden Holdings Co. Ltd. (BB/Positive/-
-; cnBBB/--). S&P also assigned its 'cnBBB' Greater China
regional scale rating to the notes. The ratings are subject to
S&P's review of the final issuance documentation. The Chinese
real estate developer will use the proceeds from the proposed
issuance to refinance outstanding notes due 2017 and other
existing debt, and for general corporate purposes.
At the same time, S&P raised the long-term issue rating on Country
Garden's existing senior unsecured notes to 'BB' from 'BB-'. S&P
also raised the Greater China regional scale rating on the notes
to 'cnBBB' from 'cnBBB-'. S&P raised the ratings because, in its
opinion, the company has managed the level of structural
subordination risk on its offshore debt. S&P expects Country
Garden to maintain its ratio of priority debt to total assets at
less than 15% over the next 12 months, which is S&P's notching
down threshold for speculative-grade companies.
The rating on Country Garden reflects the company's strengthened
competitive position with its strong execution, materially
expanded scale, and improving geographic diversification. These
strengths are tempered by Country Garden's exposure to the
property development sector in China. In S&P's view, the market
risk is higher in third- and fourth-tier Chinese cities, where the
depth of the market and sensitivity to economic cycles may not
support a large supply.
The positive outlook on Country Garden reflects S&P's expectation
that the company will maintain strong execution of its fast asset-
churn, mass market owner-occupier products in order to generate
robust sales over the next 12 months. S&P also expects Country
Garden to maintain its "significant" financial risk profile and
have largely stable margins over the period.
=========
I N D I A
=========
AIPL AMBUJA: ICRA Withdraws 'B+' Rating on INR32.86cr Loans
-----------------------------------------------------------
ICRA has withdrawn the '[ICRA]B+' rating assigned to the
INR32.86 crore bank facilities of AIPL Ambuja Housing & Urban
Infrastructure Limited as the company has fully redeemed the
instrument on maturity. There is no amount outstanding against the
rated instrument.
ALLIED STRIPS: CARE Reaffirms 'D' Rating on INR871.42cr Loans
-------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Allied Strips Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 546.42 CARE D Reaffirmed
Short-term Bank Facilities 325.00 CARE D Reaffirmed
Rating Rationale
The rating reaffirmation takes into account the ongoing delays by
Allied Strips Ltd in servicing its debt obligations.
Allied Strips Limited incorporated in 1992 as a private limited
company is promoted by Mr Mohender Kumar Agarwal. The company
started its commercial operations in June 1994 with the production
of Cold Rolled (CR) strips. It was subsequently converted into a
closely-held public limited company in December 1996. Mr Gaurav
Aggarwal, the Managing Director of the company looks after the
day-to-day operations of the company. ASL is currently engaged in
the manufacturing of cold rolled coils and strips.
ASL has a manufacturing capacity of 450,000 Tonne Per Annum (TPA)
of Hot Rolled Pickled and Oiled (HRPO), 360,000 TPA of Cold Rolled
Full Hard (CRFH) and 340,000 TPA of Cold Rolled Close Annealed
(CRCA). ASL markets its finished products mainly to its customers
in automotive and the white goods industry based out of northern
India particularly Delhi/NCR.
Subdued demand scenario and slower than anticipated ramp up of
operations from enhanced capacity led to higher incidence of fixed
cost.The subsequent liquidity stretch and the cash flow
mismatches led ASL to approach for restructuring of its debt in
March 2013. The restructuring proposal of the company was
approved on September 26, 2013, from cut-off date of December 31,
2012.
During FY13 (refers to the period April 1 to March 31), ASL
registered an operating and net loss of INR31 crore and INR107
crore respectively on the operating income of INR919 crore as
against PBILDT and PAT of INR86 crore and INR41 crore respectively
on operating income of INR909 crore in FY12.
ANANTSHREE POLYMERS: CARE Assigns 'B+' Rating to INR8.33cr Loan
---------------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank
facilities of Anantshree Polymers Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 8.33 CARE B+ Assigned
Short-term Bank Facilities 0.25 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Anantshree Polymers
Private Limited are primarily constrained by its limited track
record of operations coupled with stabilisation risk,
susceptibility of profitability to volatile raw material price and
its presence in a highly competitive and fragmented woven sacks
industry with low entry barriers and limited product
differentiation putting pressure on its profitability.
The above constraints are partially offset by the experience of
the promoters and support from group companies for offtake of
output.
Ability of the company to achieve the projected level of sales and
envisaged profit margins while managing the volatility in raw
material price is the key rating sensitivity.
APPL was incorporated in July 2011 by Kayan family, based out of
Kolkata. The company commenced commercial production of
polypropylene (PP)/high density polyethylene (HDPE) based woven
sacks from September 2013 with an installed capacity of 3,285
metric tonnes per annum (MTPA). The manufacturing unit located at
Bijlimoni (West Bengal), was setup at an aggregate cost of INR9.55
crore, being financed at a debt-equity mix of 1.5:1. APPL's
products mainly find application in the packaging of agro
products, fertilizers, food grains, seeds, cement etc.
In FY14 (provisional; refers to the period September 2013 to March
2014), the company has achieved a total operating income of INR8.4
crore.
ANUPAM SYNTHETICS: CRISIL Reaffirms B+ Rating on INR120MM Loans
---------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Anupam
Synthetics Pvt Ltd continues to reflect Anupam's stretched
liquidity owing to its working-capital-intensive and small scale
of operations in the highly fragmented textile industry, with a
very low profitability margin. This rating weakness is partially
offset by the extensive experience of the company's promoters in
the textile industry, its established relationships with
customers, and its diversified revenue profile.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 55 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 61 CRISIL B+/Stable (Reaffirmed)
Term Loan 4 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that Anupam will continue to benefit over the
medium term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if there is significant and
sustainable increase in the company's revenue or profitability,
leading to higher-than-expected net cash accruals and hence to an
improvement in its capital structure and liquidity. Conversely,
the outlook may be revised to 'Negative' in case of deterioration
in Anupam's financial risk profile, most likely due to substantial
debt-funded capital expenditure (capex) or further lengthening of
its working capital cycle.
Update
Anupam's business risk profile is expected to improve over the
medium term, supported by an increase in capacity due to
installation of machinery for manufacturing new products in 2014-
15 (refers to financial year, April 1 to March 31). The company is
estimated to report an operating income of INR315 million to
INR330 million for 2013-14 vis-a-vis INR305 million for 2012-13.
The stagnancy in the operating income was on account of nearly
full capacity utilisation. Anupam is now installing machinery to
manufacture non-woven furnishing fabrics. However, its sales will
grow by around 10 per cent in 2014-15 as the new capacity is
expected to stabilise only by 2015-16. The company's operating
income is expected to grow at around 25 per cent year-on-year in
2015-16 supported by incremental sales from the new products.
Anupam's liquidity is estimated to have remained stretched, marked
by high bank limit utilisation and low net cash accruals. The
average bank limit utilisation is estimated to have remained high
at above 90 per cent for the 11 months through Feb 2014, owing to
large incremental working capital requirements. This is reflected
in high gross current assets, estimated at 135 days as on March
31, 2014, driven by large debtors estimated at 90 days. The
company's net cash accruals, though small, are expected to remain
adequate to meet its repayment obligations over the medium term.
Its annual net cash accruals are estimated at INR7.0 million to
INR8.5 million, against expected repayments of INR1.4 million and
INR5.7 million in 2014-15 and 2015-16, respectively. Its liquidity
would, however, remain constrained by its debt-funded capex.
Anupam's financial risk profile is also expected to deteriorate,
with gearing of 2.5 to 3.0 times over the medium term. Its
interest coverage ratio is expected to decline to between 1.5 and
1.7 times over this period on account of increased interest cost
with additional debt.
Anupam reported a profit after tax (PAT) of INR4.0 million on net
sales of INR304.9 million for 2012-13, as against a PAT of INR1.7
million on net sales of INR200.1 million for 2011-12.
Anupam, incorporated in 1985, operates in three different lines of
business: selling cotton and polyester fabrics for suiting and
shirting; selling fabric for furniture products; and cutting,
sewing, and packaging on a job-work basis for other companies, in
its garmenting unit. The company is promoted by Mr. Gulshan Kumar
Luthra along with his sons, Mr. Kshitij Luthra and Mr. Shrey
Luthra.
ARS ALLOYS: ICRA Suspends 'C' Rating on INR8cr Fund Based Loan
--------------------------------------------------------------
ICRA has suspended '[ICRA]C' rating assigned to the INR8.00 crore,
fund based facility of ARS Alloys Private Limited. The suspension
follows ICRA's inability to carry out a rating surveillance in the
absence of the requisite information from the company.
Established in 2011, A.R.S. Alloys Private Limited is engaged in
the trading ferrous scrap, MS-Ingots and old machineries. The
company is promoted by Mr. Arvind Sharma and his family members.
The head office and warehousing facility of the company is located
at Ghaziabad.
BHARAT INTEGRATED: CRISIL Cuts Rating on INR90MM Loans to 'C'
-------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Bharat Integrated Technical Services Pvt Ltd to 'CRISIL C' from
'CRISIL B/Stable' and reaffirmed the rating on the company's
short-term bank facilities at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Bank Guarantee 110 CRISIL A4 (Reaffirmed)
Cash Credit 45 CRISIL C (Downgraded from
'CRISIL B/Stable')
Proposed Long Term 45 CRISIL C (Downgraded from
Bank Loan Facility 'CRISIL B/Stable')
The rating downgrade reflects instances of delay by BITS in
servicing its equipment loans (not rated by CRISIL), despite
having adequate liquidity. This is because of BITS' management's
financial indiscipline.
The ratings also reflect BITS' small scale of operations, high
Degree of customer and geographical concentration in its revenue
profile, its large working capital requirements, and its exposure
to intense competition in the construction industry. However, the
company benefits from the extensive industry experience of its
promoters' in the construction industry.
BITS was set up in 2010 by Mr. Rajendra Rayala, Mr. Pradeep
Vegunta, and Mr. Chandra Sekhar. The company undertakes civil
construction projects, which includes construction of roads and
building, piling works, foundations and industrial structures, and
electrical works. The company is based in Visakhapatnam, Andhra
Pradesh.
DEMBLA TIMBER: CRISIL Lowers Rating on INR165MM Loan to 'D'
-----------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of Dembla
Timber Company Pvt Ltd to 'CRISIL D' from 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Letter of Credit 165 CRISIL D (Downgraded from
'CRISIL A4')
The downgrade reflects devolvement of DTL's letter of credit (LC),
driven by stretched liquidity because of low cash accruals on
account of decline in sales in 2013-14 (refers to financial year,
April 1 to March 31). The prices of imported timber increased
significantly in 2013-14; however, domestic prices did not
increase in line with the imported prices, which resulted in large
unsold inventory for DTL. Moreover, the company's receivables
increased significantly because of delay in receivables from
customers. Large unsold inventory and increased receivables
resulted in increased working capital requirements vis-a-vis cash
accruals, leading to LC devolvement. CRISIL believes that DTL's
liquidity will remain under pressure over the medium term on
account of weak demand from its end-user industry leading to low
cash accruals.
Set up in 1998 as a partnership firm by Mr Subhash Dembla and his
family members, DTL (formerly Jai Timbers) was reconstituted as a
private limited company in 2004. The company trades in timber. It
also processes timber logs, mainly from hard wood, at its plant in
Gandhidham (Gujarat).
DTL reported a profit after tax (PAT) of INR4.3 million on net
sales of INR460.2 million for 2012-13, against a PAT of INR4.2
million on net sales of INR427.8 million for 2011-12. DTL is
likely to report net sales of INR440 million for 2013-14.
EAST COAST: ICRA Lowers Rating on INR508.5cr Loans to 'D'
---------------------------------------------------------
ICRA has revised the long term rating assigned to the INR2.5 crore
term loan and the INR224.0 crore fund based limits of East Coast
Constructions & Industries Limited from '[ICRA]C' to '[ICRA]D'.
ICRA has also revised the short term rating assigned to the
INR282.0 crore non-fund based limits of ECCI from [ICRA]A4 to
[ICRA]D.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 2.5 Downgraded to [ICRA]D
Fund Based 224.0 Downgraded to [ICRA]D
Non Fund Based 282.0 Downgraded to [ICRA]D
The rating revision takes into account the delays in meeting
interest and principal payment obligations on the rated bank
facilities during the last six months. The delays have been on
account of the stretched liquidity position resulting from high
losses in recent years and increased working capital cycle.
ECCI was started as a partnership firm in 1962. It was converted
into private limited company in 1995 and subsequently into public
limited company in 1998. ECCI operates in four sectors namely
Buildings, Water Supply and Sewerage, Roads & Bridges, and Power
Substations & Transmission lines and has completed several key
projects till date. The company is also geographically diversified
with operations primarily in seven states namely Tamil Nadu,
Andhra Pradesh, Karnataka, Orissa , West Bengal, Kerala &
Maharashtra.
ECCI is part of the Chennai based Buharia group promoted by Mr. B.
S. Abdur Rahman and family. The group primarily comprises of six
companies namely ECCI, Coastal Energy Ltd., Chennai Citi Centre
Holdings Pvt. Ltd, Trans Cars (P) Ltd., Trans Tempo (P) Ltd. and
Buhari Estate and Company. In addition to this, Mr. Rahman and his
family members also hold stakes in the Coal & Oil and ETA Ascon
groups.
FRONTIER TRUCKS: CARE Assigns 'B+' Rating to INR9.99cr Bank Loan
----------------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of Frontier
Trucks Pvt. Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 9.99 CARE B+ Assigned
Rating Rationale
The rating assigned to the bank facilities of Frontier Trucks Pvt.
Ltd is primarily constrained by very short track record of
operations along with the on-going debt funded capex. The rating
is further constrained due to its presence in the fragmented and
highly competitive automobile dealership business which restricts
the profitability of the players in this segment.
The rating, however, derives strength from well-experienced
promoters having presence in the auto-dealership business across
Jabalpur (Madhya Pradesh) and diversified revenue stream of the
Frontier Group.
The ability of FTPL to complete its capex within the stipulated
time period without any major cost overrun and achieve the
projected revenue and profitability by quickly stabilizing its
operations will be the key rating sensitivity.
Jabalpur-based FTPL was incorporated in November 2012 by its key
promoters; Anmol Wadhwa, J K Wadhwa and Aikta Wadhwa. FTPL is
engaged in providing 3S facility viz Stores, Spares and Services
for the light and heavy commercial vehicles of Daimler India
Commercial Vehicles Pvt Ltd (DICV; the promoters plan to
set up a showroom at three different locations viz. Jabalpur,
Satna and Singroli. FTPL recently commenced its operations at the
Jabalpur branch from January 2014. The main products of FTPL
will include Light Duty Trucks (LDT) and Heavy Duty Trucks (HDT)
in the 9, 12, 25, 31 and 49 tonnes categories, featuring various
usage and application.
The Wadhwa family is engaged in the automobile dealership of Bajaj
Auto Ltd (BAL) through its group company Frontier Motors (FRM) at
Jabalpur since 2001 and at Seoni since 2010. Furthermore, FRM has
received prestigious "Total Productive Maintenance (TPM)" Award in
2007 and also received approval by BAL in 2010 and 2011 for
opening multiple branches in Jabalpur. Presently, FRM has a wide
dealership network with 24 branches in Jabalpur and 6 branches in
Seoni for two wheelers and three-wheelers along with a team
strength of 140 members working for BAL.
The other group companies are Frontier Logistics (established at
Jabalpur; engaged as a Clearing & Forwarding (C&F) agent for many
pharmaceutical companies), Frontier Medifarma Labs (established in
1987 at Jabalpur; engaged into manufacturing of cotton bandages)
and Frontier Stores (located at Jabalpur; engaged as a wholesaler
in the pharmaceutical business since 1946).
During FY14 (provisional; refers to the period April 1 to
March 31), FTPL registered a TOI of INR1.80 crore with net loss of
INR0.28 crore till Feb. 28, 2014.
HARITHA FERTILISERS: CRISIL Ups Rating on INR350MM Loan to 'B'
--------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Haritha Fertilisers Ltd to 'CRISIL B/Stable' from 'CRISIL B-
/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 350 CRISIL B/Stable (Upgraded
from 'CRISIL B-/Stable')
The rating upgrade reflects the substantial improvement in HFL's
capital structure on the back of prepayment of its entire term
loan, and the sustained increase in its profitability levels
resulting in lower reliance on short-term debt. CRISIL believes
that HFL will sustain the improvement in its capital structure
over the medium term supported by consistent growth in its net
worth and absence of any large debt-funded capital expenditure
plan.
HFL prepaid its entire term loan of INR137 million in 2013-14
(refers to financial year, April 1 to March 31) and does not
intend to contract any incremental term loans over the medium
term. The revenues of the company are likely to register a year-
on-year growth of around 20 per cent in 2013-14; its operating
profit margin is expected to remain stable at around 17.5 per
cent. The increase in the company's profitability levels have
resulted lower reliance on short-term debt; this, coupled with
prepayment of term loan is expected to result in a decline in its
gearing to 2.3 times as on March 31, 2014 from 3.5 times as on
March 31, 2013.
The rating reflects HFL's below-average financial risk profile
marked by its modest net-worth, high gearing, and below-average
debt protection metrics. The rating also factors in the company's
large working capital requirements, and the susceptibility of its
revenues and profitability margins to changes in government policy
and erratic monsoons. These rating weaknesses are partially offset
by the extensive experience of HFL's promoters in the fertiliser
industry.
Outlook: Stable
CRISIL believes that HFL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' in case of a sustained
improvement in the company's working capital management, or a
substantial improvement in its capital structure on the back of
equity infusion from its promoters. Conversely, the outlook may be
revised to 'Negative' in case the company's operations are
adversely impacted by any regulatory changes, or there is
significant deterioration in the company's capital structure
caused most likely because of a stretch in its working capital
cycle.
HFL, incorporated in 2006, is promoted by Mr. Ravindranath Reddy,
Mr. Gangi Reddy, and their family members. The company
manufactures nitrogen-phosphorous-potassium (NPK) mixture
fertilisers from its units in Keesara and Damarchela (both in
Andhra Pradesh).
JAGDAMBA AGRO: CARE Assigns 'B+' Rating to INR22.03cr Bank Loan
---------------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of Jagdamba
Agro Food Pvt Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 22.03 CARE B+ Assigned
Rating Rationale
The rating assigned to the bank facilities of Jagdamba Agro Food
Pvt. Ltd. is primarily constrained by its nascent stage of
operations with stabilization risk, presence in the highly
fragmented and competitive rice milling business, high level of
government regulations, seasonal nature of availability of paddy
resulting in high working capital intensity and exposure to the
vagaries of nature.
The above-mentioned constraints far offset the benefits derived
from experience of the promoters in the agro trading and
processing industry and its proximity to major paddy growing
areas enabling easy availability and logistical advantages.
Ability of the company to achieve the projected level of sales and
envisaged profit margins while managing working capital
efficiently is the key rating sensitivity.
Jagdamba Agro Food (P) Ltd., incorporated in February 2010 by Mr
Jay Prakash Choudhury and his family members, based out of
Jharkhand to set up a rice processing & milling unit at Panduki,
Dhanbad. The unit was setup at an aggregate cost of INR23.64
crore, being financed at a debt-equity mix of 1.46:1. It commenced
operations from September 2013, with a processing capacity of
26,112 Metric Tonne Per Annum (MTPA).
JAFL is a part of the Jagdamba Group of Burdwan, West Bengal,
which has a number of companies in its fold. The group is into
processing and trading of food grains, manufacturing of poly bags,
etc.
In FY14 (provisional; refers to the period September 2013 to March
2014), the company has achieved a total operating income of INR23
crore.
JANAM STEELS: CARE Assigns 'B+' Rating to INR10cr Bank Loan
-----------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of Janam
Steels & Alloys.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 10 CARE B+ Assigned
The ratings assigned by CARE are based on the capital deployed by
the partners and the financial strength of the firm at present.
The ratings may undergo change in case of the withdrawal of
capital or the unsecured loans brought in by the partners in
addition to the financial performance and other relevant factors.
Rating Rationale
The rating is constrained by the modest scale of operations of
Janam Steels & Alloys (JSA), its low profitability, high leverage
and weak debt protection metrics. Susceptibility of JSA's margins
to volatile traded goods prices and presence in the highly
fragmented metal trading business and working capital intensive
nature of operations further constrains the rating.
The above constraints far offset the benefits derived from vast
experience of partners in steel trading industry.
The ability of JSA to increase its scale of operations, improve
its profitability while managing risk associated with volatile
traded goods prices and effectively manage its working capital
requirements are the key rating sensitivities.
Bhavnagar-based JSA was incorporated by Mr Kaushik D. Patel, Mr
Janak S. Patel, Mr Amit S. Patel in March, 1997 as a partnership
firm. JSA is engaged in the business of trading of long steel
products like Thermo Mechanically Treated (TMT) bars, angles,
channels, beams, etc. JSA has its main warehousing facility at
GIDC Vartej, Bhavnagar (Gujarat) and finds regular demand for its
products from industrial clusters located in Gujarat.
As per the audited results for FY13 (FY refers to the period April
1 to March 31), JSA earned a PAT of INR0.20 crore on a total
operating income (TOI) of INR63.09 crore as against a PAT of
INR0.26 crore on a TOI of INR69.75 crore in FY12. Further, as per
provisional results for 11MFY14, the firm earned
a PAT of INR0.20 crore on a TOI of INR40.77 crore.
JYOTI HOSPITAL: CRISIL Reaffirms 'D' Rating on INR229.3MM Loans
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Jyoti Hospital Pvt Ltd
continue to reflect the delay in regularisation of its cash credit
(CC) facility.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Bank Guarantee 5 CRISIL D (Reaffirmed)
Cash Credit 32.5 CRISIL D (Reaffirmed)
Overdraft Facility 55 CRISIL D (Reaffirmed)
Term Loan 136.8 CRISIL D (Reaffirmed)
JHPL continues to have a weak financial risk profile, marked by a
small net worth, high gearing and modest debt protection metrics;
and geographical concentration in revenue profile on account of
single-site operations. These rating weaknesses are partially
offset by the extensive experience of JHPL's promoters in the
healthcare industry.
Update
JHPL continues to delay in regularising its CC facility within 30
days. Its average utilisation of the CC account was at 108 per
cent for the 12 months ended November 2013 with the account
overdrawn in 11 out of the 12 months. The delays have been caused
by the company's weak liquidity. It is estimated to register net
sales of INR250 million to INR275 million in 2013-14 (refers to
financial year, April 1 to March 31) as against INR330 million a
year earlier. Decline in the top line is expected to result in a
fall in its cash accruals, which will remain tightly matched
against the term debt obligations of around INR33 million maturing
in that year, thus constraining JHPL's overall liquidity.
JHPL was incorporated in 1994, and is promoted by Dr. A K Bansal
and his wife, Dr. Vandana Bansal. It operates a multi-specialty
350-bed hospital in Allahabad (Uttar Pradesh). The hospital has
more than 20 departments specialising in orthopaedics,
gynaecology, neurology, dental, paediatrics, plastic surgery,
minimally invasive surgeries as well as laparoscopic surgeries.
KAMAL WATCH: ICRA Assigns 'B+' Rating to INR6.79cr Loans
--------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]B+' and a short
term rating of '[ICRA]A4' to the INR10.00 crore* bank facilities
of Kamal Watch Company Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 4.50 [ICRA]B+
Over Draft 2.00 [ICRA]B+
Term Loan 0.29 [ICRA]B+
Bank Guarantee 0.15 [ICRA]A4
Unallocated 3.06 [ICRA]B+/[ICRA]A4
The ratings factor in experience of the promoters in the watches
and accessories trading business for more than four decades which
has helped company to provide wide offering in the watches
segment, reputation of the company in the region and strategic
locations of the stores that ensures footfalls. However economic
downturn and the consequent demand slowdown in Hyderabad has
impacted growth from the stores at Hyderabad, and thus further
growth is contingent upon expansion of new stores at other cities.
Further inventory requirements of retail operations to offer a
wide variety of designs and price points exposes KPL to associated
off take risk for stock clearance. The company has moderate
financial profile characterized by weak capital structure coupled
with small scale of operations that has resulted in moderate
coverage indicators.
Kamal Watch Company Limited started operations in operations in
December 2005 with single retail outlet at MG road, Secunderabad.
The company is involved in trading of watches and related
accessories. It is authorized dealer for leading brands of watches
currently operating 8 stores spread across total area of ~23500sft
in Hyderabad, Vishakhapatnam, Vijayawada and Kurnool. The company
is promoted by Mr. Venugopal Totla and his family members.
Recent Results
As per the provisional results in FY14 the company recorded
revenues of INR32.05 crore and PAT of INR0.78 crore while the
figures were INR31.40 and 0.51 respectively as per the audited
results for FY13.
KANNAN ENTERPRISES: ICRA Suspends 'D' Rating on INR14cr Loans
-------------------------------------------------------------
ICRA has suspended the long-term rating of '[ICRA]D' assigned to
the INR1.00 crore term loan facilities, INR6.00 crore fund based
(sub-limit) facilities and the short-term rating of '[ICRA]D'
assigned to the INR7.00 crore fund based facilities of M/s. Kannan
Enterprises. The suspension follows ICRA's inability to carry out
a rating surveillance in the absence of the requisite information
from the Entity.
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.
Established in 1997 as a proprietorship concern, KE is engaged in
processing of plain cashew kernels from raw cashew nuts (RCNs).
The entity imports raw materials primarily from Africa, processes
them primarily in its manufacturing facility in Tamil Nadu which
has an aggregate installed capacity to process 3.5 Metric Tonnes
(MT) / day, packs the processed cashew kernels and sells them in
the domestic / export markets. Further, the entity also trades
cashew kernels and RCNs, with a small portion of its income also
being derived from sale of other by-products such as cashew shells
and cashew nut shell oil in the local markets.
KANUNGA EXTRUSION: ICRA Suspends 'B+' Rating on INR22cr Loans
-------------------------------------------------------------
ICRA has suspended '[ICRA]B+' rating assigned to the INR22.0 crore
long term limits Kanunga Extrusion Pvt. Ltd. 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.
MARIS SPINNERS: ICRA Reaffirms 'B+' Rating on INR44.47cr Loans
--------------------------------------------------------------
ICRA has reaffirmed the long-term rating outstanding on the
INR23.77 crore (revised from INR 19.56 crore) term loan facilities
and the INR20.70 crore (revised from INR 16.20 crore) fund based
facilities of Maris Spinners Limited at [ICRA]B+. ICRA has also
reaffirmed the short-term rating at [ICRA]A4 on the INR3.30 crore
(revised from INR 7.80 crore) fund based facilities and the INR
5.50 crore non-fund based facilities of MSL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term loan facilities 23.77 [ICRA]B+ reaffirmed/assigned
Fund based facilities 20.70 [ICRA]B+ reaffirmed/assigned
Fund based facilities 3.30 [ICRA]A4 reaffirmed
Non-fund based facilities 5.50 [ICRA]A4 reaffirmed
The reaffirmation of the ratings factors in the financial profile
of the company which continues to be stretched, characterized by
high gearing amidst low net worth position which was impacted
during the heavy losses incurred in FY12 on account of the weak
operating environment in the cotton yarn industry and inadequate
coverage indicators. The ratings also consider the high working
capital intensity in the business, intense competition and the
product profile skewed towards highly commoditised low to medium
counts limiting pricing flexibility. The rating also considers the
improvement in operational parameters reflected by stable yarn and
cotton prices and lowering power costs during the current fiscal,
experience of the promoters, the long standing relationship with
the customers which is likely to support the volumes of the
company to an extent and the financial support extended by group
companies, especially Maris Hotels and Theatres Private Limited
(rated [ICRA]BB+/Stable). Further, the existences of value-added
facilities like yarn twisting are expected to support margins over
the medium term.
Maris Spinners Limited was originally incorporated as a private
limited company on 18th September, 1979. However, from July 1994,
the company became a deemed Public Limited Company under the
Companies Act, 1956. The company was started by Mr. M Rengaswamy
who belongs to a family with interest in tea plantation. His son
Mr. Anand Rengaswamy is the current Managing Director of the
company. The Company commenced commercial production in 1981 with
an installed capacity of 11,856 spindles. Located in the Mysore
district of Karnataka and Tiruchirapalli district of Tamilnadu,
MSL's spinning units currently have a combined installed capacity
of 44,832 spindles manufacturing 100% cotton combed yarn of counts
30s, 40s, and 60s. The company mainly caters to the domestic
market. MSL also operates one windmill with a capacity of 2.10
mega-watts located in Devangere district in Karnataka. Besides
MSL, the promoters of the company are also involved in tea
manufacturing through Havukal Tea & Produce Company Private
Limited and hotel business through Maris Hotels and Theatres
Private Limited, which owns the Maris Hotel, located in Chennai
Recent results
The Company reported a net profit of INR6.2 crore for the period
April to December 2013 on an operating income of INR 86.6 crore.
During FY13, MSL reported a net profit of INR3.7 crore on an
operating income of INR104.5 crore.
NISHANT MARKETING: CRISIL Assigns 'B' Rating to INR50MM Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Nishant Marketing.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Letter of credit &
Bank Guarantee* 50 CRISIL B/Stable
The rating reflects NM's weak financial risk profile, marked by a
small net worth, high gearing and weak debt protection metrics and
its stretched liquidity resulting from small cash accruals and
working capital intensive operations. The ratings also factor the
firm's small scale of operations, exposure to intense market
completion because of industry fragmentation and vulnerability to
volatility in nylon prices and forex rates. These rating
weaknesses are partially offset by the benefits that NM derives
from its promoters' extensive experience in the nylon industry and
its funding support.
Outlook: Stable
CRISIL believes that NM will continue to benefit from its
promoter's extensive industry experience and their funding
support. The outlook may be revised to 'Positive' in case of
improvement in the firm's financial risk profile due to higher
than expected improvement in its scale of operations and
profitability. Conversely, the outlook may be revised to
'Negative' in case NM's financial risk profile, especially its
liquidity, weakens because of lower-than-expected cash accruals,
larger-than-expected working capital requirements or larger-than-
expected withdrawal of capital by its proprietor.
NM is a proprietorship firm promoted by Mr. Anil Mahansaria. The
firm is managed by Mr. Anil Mahansaria and his brother, Mr. Umesh
Mahansaria. The firm trades in nylon filament yarn. The firm
imports Nylon yarn from Asian and European countries and sell to
weavers and traders in Surat (Gujarat).
PASHUPATINATH DISTRIBUTORS: CRISIL Puts B+ Rating on INR74M Loans
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank loan facilities of Pashupatinath Distributors Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 53.5 CRISIL B+/Stable
Term Loan 20.5 CRISIL B+/Stable
The rating reflects PDPL's exposure to risks related to the highly
regulated nature of the liquor industry, and its below-average
financial risk profile. These rating weaknesses are partially
offset by the extensive experience of the company's promoters in
the liquor industry.
Outlook: Stable
CRISIL believes that PDPL will continue to benefit over the medium
term from the extensive industry experience of its promoters. The
outlook may be revised to 'Positive' in case of significant
increase in PDPL's operations and profitability leading to a
better financial risk profile. Conversely, the outlook may be
revised to 'Negative' if PDPL's accruals are lower than
expectations, or if it undertakes a larger-than-expected debt-
funded capital expenditure programme, leading to further weakening
in its financial risk profile.
Incorporated in 1992, PDPL manufactures country liquor in Bihar.
Its day-to-day operations are managed by Mr. Lalan Prasad and Mr.
Yogendra Prasad Nirala.
PRIME INSULATORS: CARE Assigns 'B' Rating to INR4cr Bank Loan
-------------------------------------------------------------
CARE assigns 'CARE B' and 'CARE A4' ratings to the bank facilities
of Prime Insulators Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 4 CARE B Assigned
Long-term/Short-term Bank 5 CARE B/CARE A4
Facilities Assigned
Rating Rationale
The ratings assigned to the bank facilities of Prime Insulators
Private Limitedare primarily constrained on account of the modest
scale of operations and financial risk profile marked by
leveraged capital structure, weak debt coverage indicators and
high working capital intensity. The ratings are further
constrained by low and volatile profitability of the company on
account of the tender-driven business.
The ratings, however, favourably take into account the experience
of the promoters in the industry and diversified customer base
with PIPL being an approved supplier of various State Electricity
Boards (SEBs) of Gujarat.
PIPL's ability to increase the scale of operations with
improvement in profitability and efficient working capital
management are the key rating sensitivities.
PIPL was incorporated in 2006 as a private limited company by Mr
Naresh Patel and Mr Mahendra Patel. The company is engaged in the
manufacturing of high tension electro porcelain insulators.
The company manufactures different types of insulators, viz, disc
insulators, guy insulator, line post insulator, pin/post
insulator, lightning arrestors, transformer bushings, shackle
insulator, etc, having different industry applications and
catering largely to power and power ancillary industries. The
manufacturing facility of PIPL is located at Himatnagar district
in Gujarat with an installed capacity of 7,000 Metric Tonnes Per
Annum (MTPA).
During FY13 (refers to the period April 1 to March 31), PIPL
reported a total operating income of INR15.93 crore (FY12:
INR18.43 crore) and loss of INR0.46 crore (FY12: Profit After Tax
[PAT] of INR0.20 crore).
PUNJAB VELOCITY: CARE Assigns 'B+' Rating to INR2.50cr Bank Loan
----------------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank
facilities of Punjab Velocity Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 2.50 CARE B+ Assigned
Short-term Bank Facilities 3.25 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Punjab Velocity Pvt
Ltd are constrained by the limited experience of the promoters in
the automobile dealership business, initial years of operations
and leveraged capital structure. The ratings are further
constrained by the high competitive intensity of the business and
subdued domestic demand outlook of the automobile industry. The
ratings, however, draw comfort from the association with
Volkswagen Das Auto India Limited (Volkswagen).
Going forward, the ability of PVPL to scale up its operations
profitably and manage working capital requirements efficiently
shall be the key rating sensitivities.
Punjab Velocity Pvt Ltd was formed in June 2012 by Naresh Garg and
Mr Praveen Garg. PVPL operates as an authorized distributor of
Volkswagen Das Auto India for four-wheeler vehicles like Polo,
Vento, Jetta, Passat and Toureg. PVPL operates 3S facility (Sales,
Spares, Service) at Yamnanagar, Haryana.
PVPL reported a total income of INR1.76 crore in FY13 (refers to
the period April 01 to March 31). In FY14 (till October 2013),
PVPL achieved a total operating income of INR12.43 crore.
RAGHUKUL COTTEX: CRISIL Reaffirms 'B+' Rating on INR71MM Loans
--------------------------------------------------------------
CRISIL's rating on the bank facilities of Raghukul Cottex and
Processing Pvt Ltd continues to reflect RCPPL's below-average
financial risk profile, marked by a small net worth and below-
average debt protection metrics, and modest scale of operations in
the highly fragmented cotton ginning industry. The rating also
factors in the vulnerability of the company's operations to
changes in government policies. These rating weaknesses are
partially offset by the extensive industry experience of RCPPL's
promoters.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 45 CRISIL B+/Stable (Reaffirmed)
Rupee Term Loan 26 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that RCPPL will benefit over the medium term from
its promoters' extensive industry experience. The outlook may be
revised to 'Positive' if the company's scale of operations and
operating margin improve significantly, along with improvement in
its financial risk profile, backed by capital infusion by the
promoters. Conversely, the outlook may be revised to 'Negative' if
RCPPL's profitability declines or a debt-funded capital
expenditure plan causes its financial risk profile to weaken.
RCPPL was incorporated on December 14, 2009. The company is
promoted by Mr. Govindbhai Pansuriya and his son, Mr. Kamleshbhai
Pansuriya. RCPPL is engaged in ginning and pressing of raw cotton
to make cotton bales. The unit is located in Jasdan (Gujarat). The
company is also under process to set up a cotton seed crushing
unit, which is expected to be operational by 2013-14.
RCPPL reported a net profit of INR1.3 million on net sales of
INR637.6 million for 2012-13, as against a net profit of INR0.8
million on net sales of INR412.1 million for 2011-12.
RAIGARH FOODS: ICRA Reaffirms 'B+' Rating on INR5.75cr Loans
------------------------------------------------------------
ICRA has reaffirmed the '[ICRA]B+' rating assigned to the INR5.00
crore cash credit facility and INR0.75 crore of standby line of
credit of Raigarh Foods & Hotel Business Private Limited. ICRA has
also reaffirmed the '[ICRA]A4' rating assigned to the INR2.00
crore non-fund based (bank guarantee) facility of RFHBPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limit-
Cash Credit 5.00 [ICRA]B+ reaffirmed
Fund Based Limit-
Stand By Line of
Credit 0.75 [ICRA]B+ reaffirmed
Non Fund Based 2.00 [ICRA]A4 reaffirmed
Limit-Bank
Guarantee
The reaffirmation of the ratings take into account RFHBPL's weak
financial profile characterized by low profitability and depressed
level of coverage indicators along with stretched liquidity
position as reflected by full utilization of the bank limits. ICRA
has also taken into account RFHBPL's small scale of current
operations, exposure to the inherent risks in agro based business,
such as changes in Government policies and agro-climatic
conditions which affect the harvest and availability of paddy,
and, the highly fragmented industry with low entry barriers
characterized by intense competition among a large number of
players keeping the margins under pressure. The ratings, however,
favourably considers the experience of the promoters in the rice
milling business and proximity to raw material sources, leading to
low landed cost and easy availability of paddy.
RFHBPL was incorporated as a private limited company in 1996 by
Mr. Subhash Agarwal based in Raigarh, Chhattisgarh. The company is
engaged in milling of raw and parboiled rice and has an installed
milling and sorting capacity of 48,000 metric tonne per annum
(MTPA). RFHBPL has a group company, viz. Rajat Ispat Private
Limited (rated at [ICRA]B+/[ICRA]A4), which is engaged in
manufacturing of MS Ingots.
Recent Results
During the first nine months of 2013-14, the company reported
profit before depreciation and taxes of INR0.27 crore
(provisional) on an operating income of INR24.05 crore
(provisional). The company reported a net profit of INR0.23 crore
during 2012-13 on an operating income of INR30.41 crore.
RATNAGARBHA AGRO: CARE Puts 'B+' Rating on INR11.39cr Bank Loan
---------------------------------------------------------------
CARE assigns 'CARE B+' to the bank facilities of Ratnagarbha Agro
Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 11.39 CARE B+ Assigned
Rating Rationale
The rating assigned to the bank facilities of Ratnagarbha Agro
Private Limited (RAPL) is primarily constrained by its limited
track record of operations, low profitability margins, weak
coverage indicator and susceptibility of its margins to
fluctuation in the raw material prices. The rating is also
constrained by its presence in a highly competitive and fragmented
agro processing industry with a high level of government control.
The rating, however, draws comfort from RAPL's experienced
promoters.
RAPL's ability to achieve the envisaged scale of operations and
profitability margins shall be the key rating sensitivity.
Hardoi-based (UP) Ratnagarbha Agro Private Limited was
incorporated on February 06, 2007 by Mr Ram Kishan Agrawal and his
son, Mr Shri Kishan Agrawal, to set up an agro processing unit
with an initial installed capacity of 90,000 Tonnes per annum
(TPA) for the processing of wheat into Maida, Suji and Atta at
Hardoi, Uttar Pradesh. The total cost of project to set up the
unit was INR8 crore, which was financed through bank term loan of
INR5 crore and the balance through promoter's contribution in the
form of equity capital. The company started its commercial
operations in October 2013.
Savaria Rollers Flour Mills Private Limited is a group company of
RAPL which was established in 2004 and is engaged in similar line
of business.
During FY14 (provisional; refers to the period April 1 to
March 31), RAPL has achieved a total operating income of INR37.48
crore.
RAYFAM ENTERPRISES: CRISIL Puts 'B-' Rating on INR100MM Loans
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable' rating to the bank
facilities of Rayfam Enterprises Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Working Capital
Facility 50 CRISIL B-/Stable
Overdraft Facility 10 CRISIL B-/Stable
Proposed Working
Capital Facility 40 CRISIL B-/Stable
The rating reflects REPL's below average financial risk profile
marked by modest debt protection metrics. The rating also factors
in pressure on the company's liquidity position on account of lack
of regular revenue stream. These ratings weaknesses are partially
offset by the extensive experience of management, and investments
by REPL in diversified industries.
Outlook: Stable
CRISIL believes that REPL's liquidity will remain constrained over
the medium term due to low revenue visibility as a result of its
long term nature of investments. The outlook may be revised to
'Positive' in case of higher-than-expected accruals from sale of
investments or fund infusion by the promoters to service its term
debt obligations. Conversely, the outlook may be revised to
'Negative' in case of pressure on HEPL's liquidity resulting from
lower-than-expected accruals, or significant increase in loans and
advances to third parties.
Rayfam Enterprises Pvt Ltd (REPL) is a holding company established
in 1996 for managing investments of its group companies in various
diversified sectors. The company's corporate office is based out
of Delhi.
REPL reported a net loss of INR16.7 million for 2012-13 as against
a net loss of INR1.8 million for 2011-12.
REWA PATHWAYS: CARE Assigns 'D' Rating to INR23cr Bank Loan
-----------------------------------------------------------
CARE assigns 'CARE D' rating to the bank facilities of Rewa
Pathways Pvt. Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank Facilities 23.00 CARE D Assigned
Rating Rationale
The rating assigned to the bank facilities of Rewa Pathways Pvt.
Ltd. (RPPL; an annuity-cum-toll based road project) is constrained
on account of delays in servicing of its debt obligations due to
its stressed liquidity arising from delay in project
implementation, inadequate toll collection and yet to commence
annuity payment.
Incorporated in March 2011, RPPL is a Special Purpose Vehicle
(SPV) sponsored jointly by Prakash Asphaltings and Toll Highways
India Ltd. (PATH; 51% share) and Udit Infraworld Pvt. Ltd. (UIPL;
49% share; rated CARE BB-/CARE A4) to undertake widening and
strengthening (two-lane) of Semariya-Manikpur section of SH-9
under concession from MPRDC [an undertaking of Government of
Madhya Pradesh (GoMP; rated CARE BBB+)] on Design, Build, Finance,
Operate and Transfer (DBFOT) -- Annuity + Toll basis.
The Concession Agreement (CA) between RPPL (Concessionaire) and
MPRDC was executed on March 22, 2011 for a concession period of 15
years (incl. two years of construction period). The total
project cost of INR34.50 crore was financed through debt and
equity in the ratio of 2:1. The construction work on the highway
started post receipt of Letter of Appointed date from MPRDC on
October 5, 2011. The construction for the project took three
months more than its stipulated timeframe of two years and RPPL
started toll collections from January 3, 2014.
With the first semi-annuity being due in July 2014 [six months
from provisional Commercial Operations Date (COD)] and toll
collection being insufficient during this period there was stress
on its liquidity which led to instances of delay in servicing of
its interest obligation.
S S S FIBRE: CRISIL Reaffirms 'B+' Rating on INR131.5MM Loans
-------------------------------------------------------------
CRISIL's ratings on the bank facilities of S S S Fibre Ltd
continue to reflect SSSFL's limited financial flexibility, just
adequate cash accruals to meet debt obligations, and small scale
of operations and net worth. These rating weaknesses are partially
offset by the experience of SSSFL's promoter in the yarn industry
and the company's moderate operating efficiency.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Bank Guarantee 0.5 CRISIL A4 (Reaffirmed)
Cash Credit 50 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 81.5 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that SSSFL's liquidity will remain weak over the
medium term because of just adequate cash accruals to meet debt
obligations. The outlook may be revised to 'Positive' in case of
sizeable equity infusion by promoter or more-than-expected cash
accruals, improving the company's liquidity. Conversely, the
outlook may be revised to 'Negative' in case of less-than-expected
cash accruals or large debt-funded capital expenditure leading to
deterioration in liquidity and capital structure.
SSSFL was set up in 2007 by Mr. Surinder Pal and manufactures
cotton yarn (in counts of 16s to 35s). It has installed capacity
of 15,600 spindles at its manufacturing facility in Samana
(Punjab).
SSSFL reported a profit after tax (PAT) of INR3.9 million on net
sales of INR438.8 million for 2012-13 (refers to financial year,
April 1 to March 31), against a loss of INR30.3 million on net
sales of INR214.1 million for 2011-12.
SARASWATI COTTON: CRISIL Cuts Rating on INR102MM Loans to 'D'
-------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Saraswati Cotton Ginning & Agro Industries Pvt Ltd to 'CRISIL
D' from 'CRISIL B+/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 58 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Proposed Long Term 32 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL B+/Stable')
Term Loan 12 CRISIL D (Downgraded from
'CRISIL B+/Stable')
The rating reflects continuous overdrawals of more than 30 days in
Saraswati's cash credit account owing to weak liquidity driven by
operational losses caused by inventory loss of more than INR50
million purchased for one of the orders, which became unfit for
human consumption.
The rating also factors in Saraswati's small scale of operations,
the vulnerability of its operating margin to volatility in raw
material prices, and dependency on monsoon and government
policies. These rating weaknesses are partially offset by the
extensive experience of Saraswati's promoter in the cotton and
rice industries.
Saraswati was promoted by Mr. Yash Garg as a private limited
company in 2007. It is based in Barnala (Punjab). Saraswati is
engaged in ginning of raw cotton and has also started processing
of rice from 2011-12 (refers to financial year, April 1 to
March 31).
SHIVA METALLOYS: CRISIL Reaffirms 'B+' Rating on INR160MM Loans
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Shiva Metalloys
International Ltd continue to reflect Shiva's weak operating
margin because of its trading business, its susceptibility to
volatility in raw materials prices and foreign exchange (forex)
rates, and its weak financial risk profile. These rating
weaknesses are partially offset by the extensive industry
experience of Shiva's promoters and its established relationship
with a reputed international supplier.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 110 CRISIL B+/Stable (Reaffirmed)
Letter of Credit 100 CRISIL A4 (Reaffirmed)
Letter of Credit 50 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that Shiva's financial risk profile will remain
weak over the medium term because of expected low operating
margin. The outlook may be revised to 'Positive' if Shiva's
revenue or profitability are significantly higher than expected,
and if the company sustains or improves its working capital
management, improving its financial risk profile. Conversely, the
outlook may be revised to 'Negative' if Shiva's sales or
profitability are significantly lower than expected or if its
working capital cycle weakens.
Incorporated in 1982; based out of New Delhi, Shiva Metals was
promoted by Mr. Suresh Kumar Chawla and his family members. It was
reconstituted as a limited company in 1990. Shiva trades in non-
ferrous metal alloys, such as nickel, zinc, tin, and lead.
However, approximately 90 per cent of its revenues are contributed
by the sale of nickel. Shiva is an authorised agent for Vale Inco,
Canada, and is one of the three distributors in India that imports
nickel from Vale Inco.
Shiva reported a net loss of INR0.9 million on net sales of
INR674.7 million for 2012-13 (refers to financial year, April 1 to
March 31), against a profit after tax of INR0.8 million on net
sales of INR769.4 million for 2011-12.
SHREE SWAMI: ICRA Assigns 'B+' Rating to INR8cr Bank Loans
----------------------------------------------------------
The long-term rating of '[ICRA]B+' has been assigned to the
INR3.00 crore cash credit facility and INR5.00 crore term loans of
Shree Swami Enterprise Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 3.00 [ICRA]B+ assigned
Term Loans 5.00 [ICRA]B+ assigned
The assigned rating is constrained by SSPL's modest size and
limited track record of operations coupled with weak financial
profile characterized by low profitability levels owing to the
highly competitive and fragmented industry structure, stretched
capital structure and working capital intensive nature of
operations. The rating is also constrained by the vulnerability of
the company's profitability to raw material prices which are
majorly crude oil derivatives and the company's low bargaining
power with its suppliers on account of the domestic production of
HDPE and LLDPE, the major raw materials, concentrated among a few
players.
The rating, however, positively considers the longstanding
experience of the promoters in the manufacturing of non-laminated
woven fabrics, and the favourable demand outlook for woven fabrics
in the near to medium term.
Incorporated in 2011, Shree Swami Enterprise Private Limited
commenced commercial operations from February 2013, and is engaged
in manufacturing of HDPE woven fabrics (laminated and non-
laminated). The company is promoted by Mr. Rajendra Agarwal and
Mr. Mahendra Agarwal along with their family members. The
promoters have over a decade of experience in the manufacturing of
HDPE woven fabrics (non-laminated) through their association with
another firm engaged in this business. SSPL's manufacturing
facility is located at Kubadthal, on the outskirts of Ahmedabad
and is equipped with 24 looms for weaving having an installed
capacity of 2,220 TPA along with an extrusion plant having
capacity of 3,000 TPA and a lamination plant with capacity of
4,800 TPA.
Recent Results
For the year ended March 31, 2013, Shree Swami Enterprise Private
Limited reported an operating income of INR0.71 crore and net
losses of INR0.10 crore. For the period ending Feb. 6, 2014
(provisional financials), SSPL reported an operating income of
INR19.92 crore and profit before tax of INR0.23 crore.
SHYAM JEE: CARE Rates INR2.50cr Bank Loan at 'B+'
-------------------------------------------------
CARE assigns 'CARE B+/CARE A4' ratings to the bank facilities of
Shyam Jee Lumbers Pvt Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 2.50 CARE B+ Assigned
Short-term Bank Facilities 14.00 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Shyam Jee Lumbers
Pvt Ltd are primarily constrained by the small scale of operations
coupled with low profitability margins, leveraged capital
structure and weak debt protection metrics. The ratings are
further constrained by the vulnerability of profitability margins
to fluctuation in timber prices & currency rates, highly
fragmented nature of the industry resulting in intense competition
and dependence on the real estate sector.
The ratings, however, derive strength from the experienced
promoters and growing scale of operations.
Going forward, the ability of SJPL to increase its scale of
operations along with improvement in its profitability margins and
capital structure shall be the key rating sensitivities. Effective
management of foreign exchange fluctuation risk shall also be a
key rating sensitivity.
Shyam Jee Lumbers Pvt Ltd was incorporated in September 2007 by Mr
Ram Partap Mittal and his two sons, Mr Piyush Mittal and Mr Puneet
Mittal. SJPL imports log from Malaysia, Nigeria, New Zealand and
some African countries and supplies processed timber to
wholesalers in the states of Maharashtra, Haryana, Uttar Pradesh,
Punjab and Karnataka. The company has a saw mill in Gandhidham,
Gujarat, for processing of the imported logs. The main varieties
of wood imported include Malaysian saal, Ivory Coast teak wood,
Nigerian wood and New Zealand wood. Termed as commercial wood,
these varieties of woods find application in making doors,
windows, furniture and other wooden items.
During FY13 (refers to the period April 1 to March 31), SJPL
achieved a total operating income (TOI) of INR40.48 crore with a
profit after tax (PAT) of INR0.14 crore. During 10MFY14, the
company achieved a TOI of INR27 crore.
SINGHANIA & SONS: CRISIL Reaffirms B+ Rating on INR275MM Loans
--------------------------------------------------------------
CRISIL's ratings on the bank facilities of Singhania & Sons Pvt
Ltd continue to reflect its susceptibility to cyclicality in its
end-user industry and to regulatory changes, and its average
financial risk profile marked by modest net worth and weak
interest coverage ratio. These rating weaknesses are partially
offset by the extensive experience of SSPL's promoters in the iron
ore and chemicals trading business.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 60 CRISIL B+/Stable (Reaffirmed)
Foreign Bill 210 CRISIL B+/Stable (Reaffirmed)
Purchase
Letter of credit & 22.5 CRISIL A4 (Reaffirmed)
Bank Guarantee
Proposed Long Term 5.0 CRISIL B+/Stable (Reaffirmed)
Bank Loan Facility
Outlook: Stable
CRISIL believes that SSPL's business risk profile will remain
constrained over the medium term by uncertainty in iron ore
exports amid high export duty. The outlook may be revised to
'Positive' in case of sustained improvement in liquidity through
higher-than-expected cash accruals from operation and infusion of
long-term funds by promoters. Conversely, the outlook may be
revised to 'Negative' if muted demand or changes in regulations
lead to pressure on SSPL's business risk profile, or if its
liquidity is strained by increase in working capital requirements.
SSPL, based in Kolkata (West Bengal) and promoted in 1947 by Mr.
Purushottam Lal Singhania, is a trader engaged in export of iron
fines and local sales of imported chemicals used largely in the
paints industry. The company's operations are managed by Mr.
Pradeep Kumar Singhania.
For 2012-13 (refers to financial year, April 1 to March 31), SSPL
reported a net profit of INR6.7 million on net sales of INR1178.7
million, against a net profit of INR2.9 million on net sales of
INR900.1 million for 2011-12.
SONIA OVERSEAS: CARE Assigns 'B' Rating to INR7.50cr Bank Loan
--------------------------------------------------------------
CARE assigns 'CARE B' and 'CARE A4' ratings to the bank facilities
of Sonia Overseas Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 7.50 CARE B Assigned
Short-term Bank Facilities 0.10 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Sonia Overseas
Private Limited are primarily constrained by its weak financial
risk profile characterized by small scale of operations, low
profitability margins, leveraged capital structure and weak debt
service coverage indicators. The ratings are further constrained
by the working capital intensive nature of its operations and its
vulnerability to fluctuation in the raw material price and
currency rates.
The ratings, however, draw comfort from the long experience of the
promoters of SOP and positive demand outlook of zinc in
galvanizing in the near term.
Going forward, the ability of the company to increase its scale of
operation while improving its profitability margins, improvement
in the capital structure and efficient working capital management
shall be the key rating sensitivities.
Incorporated in March 1989, Sonia Overseas Private Limited (SOP)
commenced commercial production from 1993. The company is engaged
in manufacturing of zinc & zinc sulphate and trading of heavy
melting scarp (HMS) and other non-ferrous metals. The
manufacturing facilities of the company are located at Panchkula,
Haryana and Lalru, Punjab and the total installed capacity
at both manufacturing units are 4,500 tonnes per annum (TPA) each
as on March 31, 2013. The main raw material for manufacturing the
products is zinc ash and the same is procured from the
domestic market as well as overseas market. Imports constitute
approximately 60% of the total raw material purchase with main
import from countries such as Dubai, Saudi Arabia etc. Zinc is
sold to units engaged in galvanizing of steel sheets and pipes,
located in Haryana and Punjab region. Zinc sulphate is used as
fertilizer in agriculture farms.
For FY13 (refers to the period April 1 to March 31), SOP achieved
a total operating income of INR32crore with a PAT of INR0.24
crore. In FY14 (till February 2014), SOP achieved a total
operating income of INR28.50 crore.
SPORTS INFRATECH: CRISIL Cuts Rating on INR140MM Loans to 'B-'
--------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank loan
facilities of Sports Infratech Pvt Ltd to 'CRISIL B-/Stable' from
'CRISIL B/Stable', while reaffirming its rating on the company's
short-term facilities at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 130 CRISIL B-/Stable (Downgraded
from 'CRISIL B/Stable')
Letter of credit &
Bank Guarantee 70 CRISIL A4 (Reaffirmed)
Proposed Long Term 10 CRISIL B-/Stable (Downgraded
Bank Loan Facility from 'CRISIL B/Stable')
The rating downgrade reflects CRISIL's belief that SIPL's
liquidity will be weaker than earlier estimated owing to a
significant stretch in its working capital cycle and pressure on
its operating profitability margin. The company had debtors of
INR59 million outstanding for over six months as on February 28,
2014. Its operating profitability is expected to remain in the
range of 7 to 9 per cent over the medium term (as against 18 to 22
per cent earlier) owing to intense competition from low-cost
Chinese supplies. SIPL's liquidity is marked by fully utilised
bank limits, though partially supported by unsecured loans from
promoters and their relatives.
The ratings reflect SIPL's susceptibility to government
regulations on execution of sports facilities and to timely
payments for these. The ratings also factor in the company's
constrained financial flexibility due to large working capital
requirements. These rating weaknesses are partially offset by
SIPL's established market position in the sports infrastructure
industry and its strong relationship with an international
supplier.
Outlook: Stable
CRISIL believes that SIPL will maintain its established market
position over the medium term, supported by its strong
relationship with an international supplier. The outlook may be
revised to 'Positive' in case of significant improvement in the
company's financial risk profile, particularly its liquidity, most
likely owing to an increase in its revenue and profitability, or
considerable improvement in its working capital cycle. Conversely,
the outlook may be revised to 'Negative' if SIPL's liquidity
weakens, most likely due to lower-than-expected revenue, decline
in its profitability, or further stretch in its working capital
cycle.
SIPL provides sports facilities such as synthetic tracks and
surfaces such as astro-turf. The company was incorporated in 2006
as Jubilee Sports Technology (India) Pvt Ltd; Mr. Rohit Jain and
Mr. Siddharth Verma, the key promoter-directors of the company,
look after its day-to-day operations. Its registered office is in
New Delhi. SIPL has entered into an agreement with a multi-
national sports infrastructure-providing company, Sports
Technology International, for marketing the latter's products in
India.
SIPL reported a net loss of INR7.5 million on net sales of
INR123.7 million for 2012-13 (refers to financial year, April 1 to
March 31), as against a profit after tax of INR13.2 million on net
sales of INR176.7 million for 2011-12.
SURESH TEXTILES: CRISIL Assigns 'B+' Rating to INR90MM Loans
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long term
bank facilities of Suresh Textiles.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 50 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 40 CRISIL B+/Stable -
The rating reflects slender profitability margins and exposure to
intense competition in the highly fragmented textile industry.
These rating weaknesses are partially offset by the extensive
experience of ST's promoters in the textile industry.
Outlook: Stable
CRISIL believes that the ST will continue to benefit over the
medium term from the extensive experience of its promoters. The
outlook may be revised to 'Positive' if ST reports significantly
higher than expected accruals while maintaining its capital
structure. Conversely, the outlook may be revised to 'Negative' in
case of a significant decline in the ST's revenues or
profitability margins or if its capital structure deteriorates on
account of lengthening of working capital cycle or larger than
expected debt funded capital expenditure.
ST established in April 2003, is sole proprietorship concern of Mr
Vicky Ramchand Talreja. ST is engaged in trading and manufacturing
of denim wear. ST is based out of Ulhasnagar (Maharashtra).
ST reported a net profit of INR8.48 million on net sales of
INR725.7 million for 2012-13 (refers to financial year, April 1 to
March 31) against net profit of INR7.57 million in 2011-12 on net
sales of INR613.5 million.
THOMAS AND COMPANY: CRISIL Reaffirms 'B' Rating on INR15MM Loan
---------------------------------------------------------------
CRISIL's rating on the bank facilities of Thomas and Company Pvt
Ltd continues to reflect below-average financial risk profile
because of its small net worth, and its modest scale of operations
amid market competition in the civil construction industry. These
rating weaknesses are partially offset by the benefits the company
derives from the extensive industry experience of the promoters in
the civil construction industry.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Bank Guarantee 60 CRISIL A4 (Reaffirmed)
Cash Credit 15 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that TCPL will continue to benefit from its
promoters' extensive industry experience in civil construction
business. The outlook may be revised to 'Positive' if there is a
substantial increase in TCPL's scale of operations along
efficiency in its working capital management. Conversely, the
outlook may be revised to 'Negative' if there is pressure on the
company's liquidity, resulting most likely from larger-than-
expected working capital requirements or debt-funded capital
expenditure.
Update
For 2013-14 (refers to financial year, April 1 to March 31), TCPL
is estimated to have generated operating income of around INR
250 million, year-on-year growth of around 66 per cent driven by
its moderate order book size. TCPL's operating margin in 2013-14
is estimated to have remained in the range of 5.2-5.6 per cent in
line with operating margin generated in 2012-13. CRISIL believes
that TCPL's operating margin will remain vulnerable to volatility
in the price of raw materials such as steel and cement.
TCPL has weak financial risk profile, marked by its low net worth
estimated at 15.6 million as on March 31, 2014 and almost fully
utilized over draft facility of INR15 million thereby restricting
company's ability to meet any exigency. The financial risk profile
however is, supported by its gearing estimated at 1.2 times as on
March 31, 2014 and interest coverage and net cash accrual to total
debt ratio of 2.6 times and 0.3 times as on March 31, 2014. The
liquidity profile of the company is supported by expected cash
accruals of around INR5.7 million in 2014-15 as against its
vehicle loan repayment obligation of INR1 million during the same
period. CRISIL believes that TCPL's financial and liquidity
profile will continue to remain constrained from its small net
worth.
TCPL reported profit after tax (PAT) of INR0.7 million on net
sales of INR149 million for 2012-13 against PAT of INR0.1 million
on net sales of INR91.4 million for 2011-12.
TCPL was established in 1988 as a proprietorship concern in New
Delhi. In 1997, the firm was reconstituted as a private limited
company. TCPL is engaged in civil construction activities, mainly
construction of industrial and institutional buildings for public
and private parties.
TRIVIK HOTELS: CRISIL Assigns 'B+' Rating to INR100MM Loans
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Trivik Hotels and Resorts Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Proposed Long Term
Bank Loan Facility 20 CRISIL B+/Stable
Term Loan 80 CRISIL B+/Stable
The rating reflects Trivik's exposure to risks related to the
implementation of its ongoing project and its expected modest
scale of operations and below-average financial risk profile in
the initial phase of operations. These rating weaknesses are
partially offset by its promoters' industry experience and its
advantageous location.
Outlook: Stable
CRISIL believes that Trivik will benefit from its advantageous
location and its promoters' industry experience over the medium
term. The outlook may be revised to 'Positive' in case of timely
completion of the company's project, along with better-than-
expected cash accruals during the initial phase of operations.
Conversely, the outlook may be revised to 'Negative' in case of
time or cost overruns in the project or lower-than-expected cash
accruals resulting in pressure on the company's liquidity.
Trivik is constructing a 30-key five-star hotel in Chikkamangalur
(Karnataka). The company was incorporated in 2010 as KSS Hotels
and Resorts Pvt Ltd and got its present name in 2013.
=================
I N D O N E S I A
=================
INDONESIA: S&P Affirms 'BB+' LT Sovereign Credit Rating
-------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB+' long-term
and 'B' short-term sovereign credit ratings on the Republic of
Indonesia. The outlook remains stable. At the same time,
Standard & Poor's affirmed its 'axBBB+' long-term and 'axA-2'
short-term ASEAN regional scale ratings on Indonesia. S&P's
transfer and convertibility risk assessment on Indonesia is
unchanged at 'BBB-'.
RATIONALE
The sovereign credit rating on Indonesia reflects the economy's
low per capita income, its developing structural and institutional
foundations, a relatively weak policy environment, and rising
external leverage. These rating constraints are weighed against
the country's well-entrenched cautious fiscal management, modest
general government debt and interest burden, and moderately strong
economic growth rate.
Indonesia's low per capita GDP at a projected US$3,315 for 2014 is
one of the negative factors for the sovereign ratings. S&P
believes Indonesia has limited ability at this income level to
ensure policy flexibility to deal with changing economic
conditions. The income level also provides the government with
less room to maneuver when maintaining creditworthiness would
require unpopular polices. The country's annual average 4.4% real
GDP per capita growth in the past decade is respectable. However,
the growth started from a low base. The depreciation of the
Indonesian rupiah against the U.S. dollar also hurts dollar-
denominated per capita GDP. S&P expects it would take four to
five years to improve the economic score of the country, if the
trend growth rate continues and without a significant depreciation
in the rupiah.
In S&P's view, Indonesia's broad economic and fiscal policy stance
will continue. S&P don't expect the outcome of the presidential
election in July 2014 to have a significant impact on the
government's prudent fiscal policy. However, the level of success
of the next administration in improving the governance as well as
legal and regulatory issues is important for the sovereign ratings
on Indonesia. Numerous recent industry and trade policy measures
aimed at promoting downstream processing and boosting local
participation have raised regulatory uncertainty or created market
distortions. Reform initiatives have stalled in some key areas,
such as labor markets and the judiciary. These factors are
constraining Indonesia's critical infrastructure investment and
growth potential.
Indonesia's external vulnerability persists. The country has
weathered downward pressure on its currency through market-based
approaches. The general government's net external debt, as a
percentage of current account receipts (CAR), stands at only about
7% in 2013. However, net external private sector debts were 44%
of CAR in December 2013. Indonesia's external leverage is rising
from a moderate level, and it is much larger than most similarly
rated peers', with its narrow net external debt at a projected 73%
of CAR in 2014.
The country's rising external debts are a result of a growing
economy with relatively small and shallow domestic financial and
capital markets. Outstanding domestic debt securities were just
14% of GDP, with corporate debts under 3% of GDP as of the end of
2013.
Indonesia still faces the risk of market deterioration, especially
with larger external indebtedness and a current account deficit
trend of about 2% of GDP in the medium term. The direction of
flow of funds could change to net outflow from net inflow.
The government's small fiscal deficits and low debt levels are
supporting factors for the sovereign ratings. Indonesia has a
longstanding law that limits the central government fiscal deficit
to 3% of GDP. Overall budget deficits have averaged just 1.1% of
GDP annually for the past 10 years. However, this was partly
because of the recurrent underspending of its planned capital
spending. In S&P's view, a reduction in the subsidy burden--still
the largest expenditure in the budget at 27% of total expenditure-
-and the progressive deepening of domestic capital markets could
redirect public funds to education or infrastructure projects,
both of which could improve growth prospects. The government
plans to further raise domestic fuel prices, following the
increase in June 2013. However, S&P thinks the chance of a
further increase is slim before the next administration takes
office.
Standard & Poor's forecasts net general government debt to decline
to 23% of GDP in 2015 (from a peak of 110% of GDP in 1999), which
is low compared with similarly rated peers'. Consistent primary
surpluses, supported by high nominal GDP growth, contributed to
this downward trend. The interest burden of about 8% of general
government revenue poses a moderate constraint on discretionary
spending. Standard & Poor's expects government debt ratios to
improve further with continued cautious fiscal management, which
in turn would improve the sustainability of public debt.
The local currency rating on Indonesia reflects S&P's view that
the sovereign's monetary and fiscal flexibility does not yet match
that usually found in sovereigns in higher rating categories.
This is because of the combination of a narrow revenue base,
significant infrastructure needs, inflexible subsidy regimes, and
inflation. It also reflects a high share of nonresident holdings
of local currency debt, consistently at 30%-34% of total
outstanding.
The transfer and convertibility risk assessment on Indonesia is
'BBB-'. Standard & Poor's believes the likelihood of the
sovereign restricting access to foreign exchange needed by
Indonesia-based non-sovereign issuers for debt service is slightly
lower than the likelihood of the sovereign defaulting on its
foreign currency obligations. The Indonesian corporate sector
relies on international financial markets for long-term financing
because of the still-shallow domestic financial markets.
OUTLOOK
The stable outlook reflects S&P's view that the moderately weak
governance and effectiveness of the government's policies, low GDP
per capita, and external vulnerability are generally balanced
against a conservative fiscal policy, favorable debt trajectory,
and the country's moderately strong growth prospects.
S&P may raise the ratings if the next government's policies, such
as subsidy reform, would reduce Indonesia's fiscal
vulnerabilities, improve its balance sheet, reduce the external
debt burden, or boost economic growth prospects.
Conversely, S&P may lower the ratings if the government fails to
respond to fiscal or external pressures with timely and adequate
policies, or if policies endanger strong growth prospects or the
positive fiscal and debt trajectories.
In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable. At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee by
the primary analyst had been distributed in a timely manner and
was sufficient for Committee members to make an informed decision.
After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts. The chair
ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision.
The views and the decision of the rating committee are summarized
in the above rationale and outlook.
RATINGS LIST
Ratings Affirmed
Indonesia (Republic of)
Bank Indonesia
Sovereign Credit Rating BB+/Stable/B
ASEAN Regional Scale axBBB+/--/axA-2
Indonesia (Republic of)
Senior Unsecured BB+
Perusahaan Penerbit SBSN Indonesia I
Senior Unsecured BB+
Perusahaan Penerbit SBSN Indonesia II
Senior Unsecured BB+
Perusahaan Penerbit SBSN Indonesia III
Senior Unsecured BB+
SRI REJEKI: Moody's Assigns B1 Corporate Family Rating
------------------------------------------------------
Moody's Investors Service has assigned a definitive B1 corporate
family rating (CFR) to PT Sri Rejeki Isman Tbk ("Sritex"). The
outlook for the rating is stable.
Concurrently, Moody's has also assigned a definitive B1 rating to
the USD200 million senior unsecured notes due 2019 issued by
Sritex's wholly owned subsidiary, Golden Legacy Pte. Ltd. The
notes are guaranteed by Sritex and its subsidiary guarantor, PT
Sinar Pantja Djaja.
Proceeds from the notes issuance were primarily used to repay
existing debt and establish a debt service accrual account. The
notes issuance is roughly USD100 million smaller than initially
contemplated when Moody's assigned the (P)B1 ratings and, as such,
leverage will be roughly 3.0x compared to Moody's previous
expectation of 4.5x at close. However, Moody's expect debt levels
to increase in 2014-2015 as Sritex executes its capital spending
plans which will likely result in a modest increase in leverage.
Moody's anticipates that Sritex will likely rely on its roughly
USD150 million working capital credit facilities over the next two
years in the range of USD50-75 million.
Ratings Rationale
Sritex's B1 CFR reflects its relatively small scale in the highly
competitive global textile industry, its geographic concentration
of assets in Indonesia's Central Java region, moderate post-
refinancing leverage, which Moody's expect to remain below 4.0x in
2014-2015, solid margins and an adequate liquidity profile. The
company benefits from its position as the largest fully integrated
textile manufacturer in Indonesia, positive growth indicators, and
low labor costs relative to international competitors.
However, high investment requirements to support its growth
initiatives will likely consume cash flow and require incremental
borrowing over the next 2-3 years. Nonetheless, the increase in
debt will be balanced against continued earnings growth.
The ratings could be upgraded if, by executing its expansion
plans, Sritex demonstrates a sustained improvement in
profitability and a stable financial profile. In particular, its
debt/EBITDA should remain below 3.5x and EBITA/interest expense
should exceed 3.5x. In addition, the company would also need to
generate consistent free cash flows for us to consider upgrading
its ratings.
The ratings could be pressured downwards if: (1) rising wages and
other input costs reduce Sritex's cost competitiveness, such that
the company records EBITDA margins below 10% on a sustained basis,
or (2) Sritex expands its business through debt-funded
acquisitions or capital expenditures such that debt/EBITDA exceeds
4.5x on a sustained basis or liquidity deteriorates and Sritex is
unable to fund growth initiatives with external funds.
The principal methodology used in these ratings was the Global
Manufacturing Industry published in December 2010.
PT Sri Rejeki Isman Tbk, (Sritex), located in Central Java,
Indonesia, is a vertically integrated manufacturer of textiles and
textile products. Its operations are spread between 22 factories,
consisting of 9 spinning plants, 3 weaving plants, 3 finishing
plants and 8 garment plants. Net revenues generated by its four
divisions were roughly IDR4.7 trillion (USD387) in 2013:
Sritex is majority owned (56%) by the Lukminto family. Mr. Iwan
Setiawan Lukminto, son of the founder, Mr. H.M Lukminto, has been
President Director since 2006. The family has day-to-day control
of operations. The remaining 44% share of the company is publicly
traded on the Indonesian Stock Exchange. The company had its
initial public offering in June 2013 raising IDR1.29 trillion. The
funds were primarily used to expand its spinning division.
=========
J A P A N
=========
MT. GOX: Bitcoin Exchange Clients Seek Approval of Accord
---------------------------------------------------------
Andrew Harris at Bloomberg News reports that U.S. creditors of Mt.
Gox Co., the bankrupt Tokyo-based bitcoin exchange, asked a U.S.
judge to approve a proposed settlement that would restore the
company as a going concern, return money to depositors and resolve
claims against some company executives.
Bloomberg relates that the accord depends on a Japanese bankruptcy
court's approval, according to papers filed on
April 29 in federal court in Chicago. The settlement wouldn't
release Mt. Gox principal Mark Karpeles from potential liability,
the report notes.
About Mt. Gox
Bitcoin exchange MtGox Co., Ltd., filed a petition under Chapter
15 of the U.S. Bankruptcy Code on March 9, 2014, days after the
company sought bankruptcy protection in Japan. The bankruptcy in
Japan came after the bitcoin exchange lost 850,000 bitcoins valued
at about $475 million "disappeared."
The Japanese bitcoin exchange that halted trading in February
2014. It filed for bankruptcy protection in the U.S. to prevent
customers from targeting the cash it holds in U.S. bank accounts.
The Chapter 15 case is In re MtGox Co., Ltd., Case No. 14-31229
(Bankr. N.D. Tex.). The Chapter 15 Petitioner is Robert Marie
Mark Karpeles, the company's chief executive officer. Mr.
Karpeles is represented by John E. Mitchell, Esq., and David
William Parham, Esq., at BAKER & MCCKENZIE LLP, in Dallas, Texas.
The company said it has estimated assets of $10 million to $50
million and debts of $50 million to $100 million.
====================
N E W Z E A L A N D
====================
* FMA Holds Options Open on Civil Suit vs. Finance Firm Directors
-----------------------------------------------------------------
NZ Herald reports that the Financial Markets Authority won't wait
until receivers have finished chasing funds from convicted finance
company directors when deciding whether to push on with its own
civil proceedings and said it considers more than just the
interests of a failed firm's investors in weighing up its court
claims.
NZ Herald relates that the market watchdog's civil proceedings
were filed against the board members from a range of failed
lenders as early as 2008 but were put on hold while criminal
prosecutions ran their course.
Even though many of these criminal cases have wrapped up, none of
the FMA's civil action has yet to see a court room, the report
notes.
The authority also dropped two of these civil cases in the past
few months to make way for receivers to recover money from errant
directors, NZ Herald says.
According to NZ Herald, receivers from PwC had alleged the
directors of Lombard and Bridgecorp had breached their directors'
duties but settled both of these cases.
NZ Herald says that for Lombard, the receivers this year announced
a NZ$10 million settlement had been reached involving four
directors, their insurers and an unnamed "third party".
It will see another 9c in the dollar go to Lombard's 3,900 secured
debenture holders, who were owed NZ$111 million when the company
collapsed in 2008. This brings the total payout for investors so
far to 22c in the dollar, NZ Herald notes.
For Bridgecorp, PwC announced an NZ$18.9 million deal involving
directors Peter Steigrad, Bruce Davidson and Gary Urwin and their
insurers, NZ Herald discloses.
NZ Herald notes that the settlement brings the total return for
Bridgecorp investors to date to 12c in the dollar. Bridgecorp
collapsed almost seven years ago owing 14,500 investors about
NZ$460 million.
The FMA dropped its own cases as a condition of these settlements
and its remaining proceedings -- against the convicted directors
of Dominion Finance and Capital + Merchant Finance -- are still on
hold, the report relays.
The FMA's head of enforcement Belinda Moffat said the authority
would provide updates on these cases in the "near future," NZ
Herald adds.
====================
S O U T H K O R E A
====================
DAEWOO MOTOR: Ordered To Pay Legal Fees For Bankrupt US Unit
------------------------------------------------------------
Law360 reported that an Arizona federal judge dismissed a portion
of a lawsuit against Daewoo Motor Co. Ltd., saying the South
Korean automaker is required to foot the bill for the cost of
product liability lawsuits directed at a bankrupt U.S.-based
affiliate.
According to the report, U.S. District Judge Roslyn O. Silver
granted the motion for partial summary judgment filed by Daewoo
Motor America Inc., saying a previous decision in California court
banned DWMC from re-litigating the issue of whether it had
breached a contract making it liable for its American unit.
The case is Daewoo Motor America, Inc. v. Daewoo Motor Company,
Ltd., Case No. 2:10-cv-00653 (D. Ariz.).
Daewoo Motor America, Inc., sought chapter 11 protection (Bankr.
C.D. Calif. Case No. 02-24411) on May 16, 2002, listing more than
$100 million in debts and assets. Lawyers at Stutman Treister &
Glatt APC, served as bankruptcy counsel. The Honorable Judge
Sheri Bluebond of the U.S. Bankruptcy Court for the Central
District of California, Los Angeles Division, presided over the
bankruptcy proceedings. The Bankruptcy Court confirmed the
company's reorganization plan, which became effective Oct. 16,
2003.
*********
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 ***