/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/140509.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, May 9, 2014, Vol. 17, No. 91 Headlines A U S T R A L I A ARRIUM LIMITED: To Cut 120 Jobs in Newcastle AUSTRALIAN WEAVING: BRI Ferrier Appointed as Administrators G SHARP: Deloitte Appointed as Administrators HEWATT PTY: PPB Advisory Appointed as Voluntary Administrator ISPONE PTY: Receivers Sell Assets Following Units' Collapse QANTAS AIRWAYS: To Complete 4,000 Job Cuts By 2015 C H I N A CHINA ORIENTAL: Trading Suspension No Impact on Moody's B1 CFR GOLDEN WHEEL: Fitch Affirms 'B' IDR; Outlook Stable JINGRUI HOLDINGS: Moody's Assigns (P)B2 Corporate Family Rating MIE HOLDINGS: Fitch Assigns 'B' Rating to USD500MM Sr. Notes SUNTECH POWER: Can't Dodge Solyndra's Antitrust Suit I N D I A A2K EPIC: ICRA Reaffirms 'B+' Rating on INR4cr Loan ANANDA RICE: CRISIL Assigns 'B' Rating to INR78.8MM Loans ARORA YARN: CRISIL Reaffirms 'B' Rating on INR53.6MM Loans BIHANI BINAYAKE: CARE Reaffirms 'B+' Rating on INR10cr Bank Loan BLACK STONE: ICRA Reaffirms 'B-' Rating on INR6.92cr Loan CEASAN GLASS: CRISIL Reaffirms 'D' Rating on INR270MM Loans GIAN JYOTI: CRISIL Raises Rating on INR175MM Term Loan to 'B-' JALARAM AGRO: CRISIL Assigns 'B+' Rating to INR75MM Loan JAYNIL ENTERPRISES: CRISIL Rates INR122.5MM Term Loan at 'B' KISHAN AGRO: CRISIL Assigns 'B+' Rating to INR88.5MM Loans MAGBRO HEALTHCARE: CRISIL Reaffirms 'B-' Rating on INR90MM Loans MANN RESIDENCY: CRISIL Reaffirms 'D' Rating on INR754MM Loans MANTRAM TECHNOFAB: ICRA Reaffirms 'B+' Rating on INR29cr Loan MICROSCAN COMPUTERS: CRISIL Cuts Rating on INR250MM Loans to 'D' NANIBALA COLD: CRISIL Reaffirms 'B+' Rating on INR65MM Loans NOVELTY REDDY: CRISIL Reaffirms 'B+' Rating on INR95MM Loan PATIL AND COMPANY: CRISIL Reaffirms 'D' Rating on INR230MM Loans PREMIER AGRO: CRISIL Reaffirms 'B' Rating on INR110MM Loans R&B DENIMS: ICRA Reaffirms 'B+' Rating on INR32cr Loans RADHE SHYAM: CRISIL Assigns 'B' Rating to INR54.5MM Loans REDDY AND REDDY: CRISIL Upgrades Rating on INR60MM Loan to 'B+' ROOP RAM: CRISIL Reaffirms 'D' Rating on INR187MM Loans SAHARA GROUP: Urges Apex Court to Defreeze Accounts SHRI RAM: CRISIL Reaffirms 'B+' Rating on INR55MM Cash Credit SRICHAKRA EDEN: ICRA Suspends 'B+' Rating on INR11.5cr Loan USHA IMPEX: CRISIL Ups Rating on INR60MM Cash Credit to 'B+' VASTRAM INDIA: CRISIL Reaffirms 'B+' Rating on INR100MM Loan VEE KAY: CRISIL Assigns 'B' Rating to INR82.9MM Loans VELLOILS LUBRICANT: CRISIL Assigns 'B' Rating to INR85MM Loans S I N G A P O R E TIGER AIRWAYS: Names New CEO on Widening Losses S O U T H K O R E A WOORI BANK: S&P Cuts Rating on US$7BB Note Sub. Tranche to 'BB+' * SOUTH KOREA: Large Firms' Debt-Repaying Ability Worsens in 2013 X X X X X X X X * Large Companies with Insolvent Balance Sheets - - - - - ================= A U S T R A L I A ================= ARRIUM LIMITED: To Cut 120 Jobs in Newcastle -------------------------------------------- Australian Associated Press reports that Arrium Limited is to cut 120 jobs as part of a restructure at its Waratah division. AAP relates that Arrium said it would reduce its workforce at Waratah's base in the New South Wales city of Newcastle by 20 per cent by June 14. Arrium's Waratah steelmaking business supplies fencing products to farmers and makes train wheels. The company said there had been a change in production requirements from the Waratah division, including lower demand for rail wheels, the report relays. Demand has also fallen partly because of the opening of a new facility in Indonesia that manufactures grinding balls, the report adds. The restructure will cost Arrium $15 million, but is expected to deliver $14 million in savings each year, the report discloses. Arrium Limited (ASX:ARI) -- http://www.arrium.com/-- is an international mining and materials company. The Company's principal activities are mining and supply of iron ore and other steelmaking raw materials to steel mills internationally and in Australia; the manufacture and supply of mining consumables products globally; the manufacture and distribution of steel long products and recycling of ferrous and non-ferrous scrap metal. Its key businesses include Mining, Mining Consumables, Steel and Recycling. Arrium Mining is an exporter of hematite ore with operations in South Australia. AUSTRALIAN WEAVING: BRI Ferrier Appointed as Administrators ----------------------------------------------------------- Peter Paul Krejci & Brian Raymond Silvia of BRI Ferrier were appointed as administrators of Australian Weaving Mills Pty Limited on May 2, 2014. A first meeting of the creditors of the Company will be held at Level 30, Australia Square 264 George Street, in Sydney, on May 14, 2014, at 11:30 a.m. G SHARP: Deloitte Appointed as Administrators --------------------------------------------- Richard Hughes -- richughes@deloitte.com.au -- and Nicholas Harwood -- nharwood@deloitte.com.au -- of Deloitte were appointed as administrators of G Sharp Investments Pty Ltd on May 5, 2014. A first meeting of the creditors of the Company will be held at Deloitte, Level 25, Riverside Centre, 123 Eagle Street, in Brisbane, Queensland, on May 15, 2014, at 2:00 p.m. HEWATT PTY: PPB Advisory Appointed as Voluntary Administrator ------------------------------------------------------------- The directors of Hewatt Pty Ltd, Hewatt Grader Hire Pty Ltd and Carmelina Management Pty Ltd have appointed Stephen Parbery -- sparbery@ppbadvisory.com -- Christopher Hill -- chill@ppbadvisory.com -- and Alan Walker -- awalker@ppbadvisory.com -- of PPB Advisory as Voluntary Administrators. Hewatt a leading civil earthworks contractor in the Australian Capital Territory (ACT) and southern New South Wales has operated for nearly 25 years. Employing more than 200 full-time employees, Hewatt is the head contractor for several major commercial and industrial construction projects, undertakes a range of minor civil works and is also a subcontractor to numerous projects, including the Majura Parkway project in the ACT. Following a preliminary review of Hewatt's operational and financial position, most of the company's employees have had to be stood down, while the Administrators conduct a further review of the business and assess options for its future. PPB Advisory partner Christopher Hill commented: "Whilst it is unfortunate that workers have had to be stood down, the company is just not in a position to continue to employ them. Over coming weeks, we will work constructively with management, employees, subcontractors, suppliers, clients and relevant union and government bodies to assess options for the future of the business." The first meeting of creditors is due to be held in Canberra on May 20, 2014, at 10:00 a.m. AEST. ISPONE PTY: Receivers Sell Assets Following Units' Collapse ----------------------------------------------------------- James Hutchinson at The Australian Financial Review reports that corporate receivers Ferrier Hodgson are trying to sell off the assets of collapsed Melbourne internet service provider ispONE for the second time in less than a year, after the remaining subsidiaries entered voluntary administration on May 2. According to the report, some 61,000 customers and billing software used by German supermarket chain ALDI for its low-cost mobile service are in the balance but sources close to the companies involved said the assets are likely worthless after creditors including Telstra, AAPT and Vocus cut off thousands of landline telephone, mobile and internet services, claiming unpaid bills. The Financial Review relates that Simon Jennings, chief executive of corporate receiver Ferrier Hodgson, said he was not aware of the administration. However, it is understood that Ferrier Hodgson was collecting bids for at least the customer base on May 4, in an attempt to sell the assets and had shortlisted one party at that time. The billing software was not being sold as part of the process, the report notes. The Financial Review says sources close to the deal suggested bids for the customer base would likely be around AUD500,000. It is the culmination of months of legal disputes between ispONE founder Zac Swindells and Cameron Adams, whose company AsiaPac Hong Kong bought the assets of ispONE in September last year for $1.75 million in cash and forgiven debt, after it collapsed amid contractual disputes with Kogan Mobile and Telstra, the report adds. The Financial Review states that the sales process by Ferrier Hodgson courted controversy at the time, with creditors owed millions of dollars and prospective buyers of the assets claiming the process was not transparent. Mr. Swindells told The Australian Financial Review at the time that he was not associated with AsiaPac Hong Kong or Conec2, the Australian parent company. However, in the months since the sale, Mr. Swindells has emerged as a key figure for Conec2 and its subsidiaries, leading discussions with potential investors to raise up to $6 million for an initial public offering of the company, the report relays. In an affidavit to the Victorian Supreme Court, obtained by the Financial Review, Mr. Swindells said he and Mr. Adams had a heads of agreement, signed before ispONE entered administration, to buy the assets of ispONE and share ownership of the merged entity. According to affidavits from Mr. Swindells and his lawyer Anthony Watson, the acquisition of the ispONE assets by AsiaPac was funded by Mr. Swindells himself, and an $800,000 loan from ALDI subsidiary Medion, which operates the ALDI Mobile service. But Mr. Adams said he did not believe the agreement was binding and refused to share ownership of AsiaPac Hong Kong, the Financial Review relates. The report recalls that the Victorian Supreme Court last month placed an injunction on Mr. Adams and another director transacting for the subsidiaries AsiaPac, iBoss and One Telecom without Mr. Swindells' written consent. On May 2, Mr. Swindells pushed the three subsidiaries into voluntary administration, restarting the process of selling off what remains of the business, the report adds. Melbourne-based ispONE provides telecommunications services to wholesale and retail phone and internet providers throughout Australia. Its key service lines are wireless, post-paid mobile, fixed-line phone and internet services for business and residential customers. The majority of these services are rebranded through about 100 retail service providers. ispONE was placed in voluntary administration on Aug. 19, 2013. The company collapsed after a dispute with Telstra over unpaid invoices and a failed legal bid to stop Telstra from cutting off services to more than 250,000 prepaid mobile customers under low- cost brands Kogan and ALDI, The Australian Financial Review said. QANTAS AIRWAYS: To Complete 4,000 Job Cuts By 2015 -------------------------------------------------- The Sydney Morning Herald reports that Qantas Airways is on track to complete 4,000 of its planned 5,000 job cuts by June 2015, with management, engineering, catering, freight, cabin crew, airport and flight operations among those affected. In a presentation to the Macquarie Australia Conference in Sydney on May 8, Qantas chief executive Alan Joyce provided fresh details of the airline's cost-cutting plan, SMH relates. According to SMH, Mr. Joyce said the airline is aiming to achieve AUD800 million of cost savings and reduce its debt by AUD1 billion by June 2015 as part of its three-year plan designed to get the airline back to profitability. He also revealed the airline would cut its capital spending by a further AUD200 million this year, bringing the net capital spending down to AUD800 million, the report relays. SMH relates that the airline's goal is to reduce its costs, excluding fuel, by 10 per cent over the next three years and to lower the cost gap with rival Virgin Australia to around 5 per cent in a move that would increase Qantas's margin advantage. Qantas is targeting positive free cash flow from the 2014-15 financial year, the report notes. According to the report, Mr. Joyce said challenges for the business included high competitive intensity in all markets and an elevated Australian dollar fuel price. But he said he expected international capacity growth into Australia would moderate from around 9 per cent this financial year to 4 to 5 per cent in the first half of the 2015 financial year, the report relays. "That is . . . more in line with underlying market growth which means there is less pressure on yield when capacity gets in line with traffic," SMH quotes Mr. Joyce as saying. Mr. Joyce said domestic market growth in the current half was expected to be around 3.5 per cent and could moderate further into the next financial year, SMH adds. Headquartered in Sydney, Australia, Qantas Airways Limited -- http://www.qantas.com.au/-- is an Australian airline company engaged in the operation of international and domestic air transportation services, and the provision of time definite freight services. Qantas is also engaged in the sale of international and domestic holiday tours, and associated support activities, including flight training, catering, passenger and ground handling, and engineering and maintenance. It is organized into four segments: Qantas, Jetstar, Qantas Holidays and Qantas Flight Catering. As reported in the Troubled Company Reporter-Asia Pacific on March 3, 2014, Moody's Investors Service said Qantas Airways Limited's half year results to Dec. 30, 2013, are credit negative though broadly within expectation and have no immediate impact on its Ba1 corporate family rating, Ba2 senior unsecured long term rating or non-prime (NP) short term rating. The outlook for Qantas' ratings remains negative. ========= C H I N A ========= CHINA ORIENTAL: Trading Suspension No Impact on Moody's B1 CFR --------------------------------------------------------------- Moody's Investors Service, says China Oriental Group Company Limited's stock trading suspension is credit negative, but will have no immediate impact on the company's B1 corporate family and senior unsecured ratings, or on the negative outlook for the ratings. On May 5, 2014, China Oriental indicated that its equity free float ratio was at 7.72%, reflecting the 45% ownership interest of its founder, Mr. Han Jingyuan, as well as the combined total ownership share of 47% for ArcelorMittal (Ba1 Negative), ING Bank N.V. (A2 Negative) and Macquarie Group Limited (A3 Stable). Trading in China Oriental's shares has been suspended since 1 May 2014, because the company has not met the minimum public float requirement of 25%, as the Hong Kong Stock Exchange no longer accepts the put option arrangement between ArcelorMittal, ING and Macquarie. "The trading suspension will adversely affect China Oriental's access to the equity capital markets and could constrain its ability to issue new offshore bond to refinance its existing USD703 million notes due in 2015 and 2017," says Jiming Zou, a Moody's Assistant Vice President and Analyst. "Nevertheless, the company's negative ratings outlook already incorporates its trading suspension," adds Zou. Moody's notes that the legal dispute between China Oriental's major shareholders as to the proportion of their shareholdings may create uncertainty with regard to the long-term corporate strategy. According to a writ of summons issued by Mr. Han in November 2013, the founder of the company sought an order that ArcelorMittal sell a sufficient number of its shares in China Oriental to comply with the minimum public float requirement. However, ArcelorMittal insisted that it had no such obligation. Moody's points out that if the free float requirement is not met and trading does not resume within the next 3-6 months; the company could face downgrade rating pressure. The principal methodology used in this rating was Global Steel Industry published in October 2012. China Oriental Group Company Ltd mainly manufactures H-section steel products and HR strips/strip products at its steel mills in Hebei province. The company has a total steel manufacturing capacity of 11 million tonnes a year. It was listed on the Hong Kong Stock Exchange in 2004, and is 45%- owned by its founder, Mr. Han Jingyuan, and 29.6%-owned by ArcelorMittal. GOLDEN WHEEL: Fitch Affirms 'B' IDR; Outlook Stable --------------------------------------------------- Fitch Ratings has affirmed China-based homebuilder Golden Wheel Tiandi Holdings Company Limited's (GWTH) Long-Term Foreign and Local Currency Issuer Default Rating at 'B' with a Stable Outlook. Fitch has also affirmed GWTH's senior unsecured rating at 'B', with recovery rating at 'RR4'. KEY RATING DRIVERS Niche Positioning: GWTH's strategy remained focused on developing small-sized commercial and residential projects linked to metro stations as seen in its recent land acquisitions with metro and/or high-speed rail accessibility in Changsha and Wuxi. Potential competition from large national developers for metro-linked projects may squeeze GWTH's margin over the longer term, although Fitch notes volume-driven developers are generally less likely to participate in these small niche projects. Limited Scale: GWTH's rating is constrained by its small size relative to other peers rated at 'B'. Its small operating scale increases its dependence on several key projects (around three new projects) each year, which may result in more volatile sales performance and cash flow pattern. The company's focus on small commercial projects linked to metro stations may also curb the speed of expansion of its business scale. Still Healthy Margins: Over the medium term, the company's EBITDA margins would likely stay at around 30%, supported by its metro- linked integrated projects, particularly in Nanjing. GWTH's EBITDA margins narrowed to 30% in 2013 from 43.3% in 2012 due to higher land costs and construction costs, a trend also seen among other property developers. In 2012, profitability was also boosted by its Golden Wheel International Plaza project, which fetched about 70% gross profit margin. Slower Land Acquisitions in 2014: Fitch expects net debt/adjusted inventory to rise to around 27% in 2014 from 8% a year earlier due to higher sales as development picks up and the company settling its outstanding land premium of about CNY800m. Such a leverage level is more favourable than that of similarly rated, but larger, homebuilders. A slower sales execution and/or large-scale land acquisition may negatively affect GWTH's leverage, though this is not Fitch's base case scenario. Fitch expects GWTH to maintain a land acquisition budget of around 30%-35% of the company's yearly contracted sales for the medium term, smaller than the 150% in 2012. Moderate Investments in Investment Property: Substantial investment in investment property assets would weaken small developers' liquidity and leverage because it would tie up long- term capital. Less than 10% of GWTH's gross floor area under development (excluding its non-consolidated JV project in Yangzhou) is earmarked for investment property purposes for the medium term. This allows GWTH to still maintain a healthy asset turnover and liquidity position. Small but Stable Recurring Income: The performance of its investment property business has been stable with CNY56m of recurring EBITDA in 2013 compared with CNY54m in 2012. The recurring EBITDA from investment property was just 21% of overall EBITDA in 2013. The company has secured more metro-sub leasing contracts but contribution to cash flow would still be dwarfed by the larger property development and investment property segment. Fitch expects GWTH's recurring EBITDA interest coverage would remain at around 0.4x for the next two years (2013: 0.74x) as the increase in debt to support its property development segment outpaces rental income growth. RATING SENSITIVITIES Negative: Future developments that may, individually or collectively, lead to negative rating action include: - A significant year-on-year decrease in contracted sales plus sales after completion - EBITDA margin falling below 25% on a sustained basis - Net debt/ adjusted inventory rising above 30% on a sustained basis - Deviation from the current focus on metro-linked projects Positive: No positive rating action is expected over the next 12- 18 months given the company's current small scale. However, positive rating action may result from: - Increase in the value of investment properties to over CNY5bn (2013: CNY3.7bn) and annual contracted sales plus sales after completion to CNY3bn (2013: CNY984m) - Recurrent EBITDA interest coverage rising to over 1x on a sustained basis JINGRUI HOLDINGS: Moody's Assigns (P)B2 Corporate Family Rating --------------------------------------------------------------- Moody's Investors Service has assigned a first-time (P)B2 corporate family rating to Jingrui Holdings Ltd. At the same time, Moody's has assigned a provisional (P)B3 senior unsecured rating to its proposed USD notes. The outlook for the ratings is stable. Once the notes issuance is completed, and upon satisfactory terms and conditions, Moody's will remove the provisional status of the ratings. The proceeds from the proposed issuance will be used to fund the company's development of property projects, refinancing, and general working capital needs. Ratings Rationale "Jingrui's (P)B2 corporate family rating reflects the company's track record of developing mass-market residential projects in the Yangtze River Delta region and its adoption of a fast-turnover business model," says Franco Leung, a Moody's Assistant Vice President and Analyst. Jingrui has successfully grown its operations in the Yangtze River Delta region. A total 84% of Jingrui's land bank is concentrated in the delta, which is economically strong and therefore provides support to Jingrui's long-term growth. Its total revenue increased to RMB3.9 billion in 2013 from RMB2.5 billion in 2010. It also achieved RMB8.3 billion of contracted sales in 2013, a notable rise from RMB4.7 billion in 2012. Such a scale of operation is comparable to its rated single-B peers. Its focus on the mass-market makes it less susceptible to regulatory measures that target speculators and limit the sale of highly priced properties. Most of the residential units that Jingrui will sell in the next 1-2 years will be less than 144 sqm in size and will be affordably priced. The average contracted price for its products sold in 2013 was RMB 9,954 per square meter. "On the other hand, Jingrui's focus on mass-market products in the lower tier cities has resulted in lower profit margins," says Leung. Its adjusted EBITDA margin fell to 12.8% in FY2013 from 27.6% in FY2010, in line with the decline in the average selling price to RMB9,954 per sqm from RMB10,842 per sqm over the same period. This is the result of the company's business strategy of fast turnover to maximize liquidity. "The rating is constrained by Jingrui's high debt leverage and weak capital structure, which features a high level of short-term debt," adds Leung. Jingrui has funded its growth primarily through the use of debt, resulting in high leverage of 72.3% at end-2013, as measured by adjusted debt/capitalization. Its debt mainly consists of onshore bank loans and trust loans, which have high costs and which partly contributed to its low EBITDA interest coverage of around 0.9x for FY2013. And its short- term debt accounted for 40-50% of total debt in the past 12-18 months, higher than its industry peers. Moody's expects that the company's debt leverage will remain high at around 70% - 75% and that its EBITDA/interest will remain at around 1.25x -- 1.5x, metrics which position the company in the mid-to-low single B range. The company plans to expand its funding sources. If it establishes a track record of obtaining medium-term funding, its liquidity profile could improve. The stable outlook reflects Moody's expectation that the company will secure adequate funding to conduct its development business and will grow its revenue without further raising its current level of debt leverage significantly. Upward rating pressure could emerge over the medium term if Jingrui (1) expands its scale through growth in contracted sales; (2) maintains strong liquidity, such that cash to short-term debt will rise above 1.5x; and (3) improves revenue recognition and debt leverage, such that its EBITDA/interest improves above 2x -- 2.5x. Downward rating pressure could emerge if (1) Jingrui's liquidity and operating cash flow generation weaken, due to lower-than- expected contracted sales growth, aggressive land acquisitions, or the emergence of more severe conditions in China's property sector; (2) property prices decline and profit margins come under pressure, which would in turn negatively affect interest coverage and financial flexibility; or (3) the company engages in material debt-funded acquisitions. Credit metrics that Moody's would consider for a downgrade include: (1) cash balance below 1x of short-term debt and (2) EBITDA interest coverage below 1.0x, and (3) debt leverage substantially higher than the level recorded at end-2013. The principal methodology used in this rating was the Global Homebuilding Industry published in March 2009. Established in 1993, Jingrui Holdings Ltd. is a property developer based in Shanghai and principally focused on residential projects in the Yangtze River Delta region. It was listed on the Hong Kong Stock Exchange in October 2013. As of December 2013, it had a land bank of 4.52 million sqm in gross floor area across 13 cities in China, including Shanghai, Tianjin and Chongqing, and cities in Zhejiang Province and Jiangsu Province. MIE HOLDINGS: Fitch Assigns 'B' Rating to USD500MM Sr. Notes ------------------------------------------------------------ Fitch Ratings has assigned MIE Holdings Corporation's (MIE) USD500m 7.5% senior notes due 2019 a final rating of 'B' with Recovery Rating of 'RR4'. The notes are rated at the same level as MIE's senior unsecured rating because they represent direct, unconditional, unsecured and unsubordinated obligations of the oil and gas exploration and production company. The final rating follows a review of final documentation materially conforming to the draft documentation previously reviewed. The final ratings are same as the expected ratings assigned on April 7, 2014. KEY RATING DRIVERS Rating Constrained by Operating Scale: MIE's ratings of 'B' reflect the upstream nature of its business profile, as well as its small reserves and operating scale. At end-2013, MIE had proven oil and gas reserves of 83.2 million barrels of oil equivalent (2012: 62.3mmboe). Based on the 2013 production rate, the proven reserve life for oil is around 10 years, but may reduce as future production accelerates. However, MIE's proved and probable reserves, over 50% from Kazakhstan, are much larger at 193mmboe at December 2013. For 2013, total net oil and gas production was 5.68mmboe, slightly above 2012's 5.50mmboe due to the increased contribution from Kazakhstan-based Emir Oil, which was acquired in 2011. There was a moderate decline in production in northeastern China, its legacy assets, due to a decision to scale back capex in this area. Expansion Through Acquisitions: The acquisitions of Emir Oil, and to a smaller extent, of Pan-China Resources Limited and Sino Gas & Energy Limited (Sino Gas), in 2011-2012 have expanded MIE's operating scale and geographical diversity. In 2013, Emir Oil accounted for 29% of MIE's net oil production and 60% of its total proven oil reserves. Pan-China Resources accounted for 7% of total oil production and generated positive EBITDA in 2013. In addition, acquiring Sino Gas also increased MIE's natural gas reserves significantly. At end-2013, MIE's proven gas reserves reached 174.2 billion cubic feet, an increase of 169% over 2012. However, the gas fields are still at an early stage of development. Fitch does not envisage material profit contributions from Sino Gas until 2015-16. Limited Capacity for Sizeable Acquisitions: Given MIE's small scale, the investments required to develop recently acquired resources and its mature legacy assets in China, the company has a limited capacity to pursue further sizable acquisitions within its current rating level. Concentrated Business with Strong Counterparty: Over 80% of MIE's EBITDA is generated from three oilfields with low permeability reservoirs in China under production-sharing contracts (PSC) with PetroChina Company Limited (A+/Stable), China's largest oil and gas producer. Despite this concentration risk, MIE's risk profile benefits from its low-cost production in China, established track record, and the long-term relationship with PetroChina. Adequate Financial Position: The Stable Outlook reflects Fitch's expectations that MIE will continue to maintain an adequate financial profile for its current ratings. MIE's financial leverage is expected to increase slightly from its end-2013 level of 2.2x as measured by net adjusted debt/funds from operations (FFO). Fitch expects the company's cash generation to benefit from increased production from its Kazakhstan assets, especially once infrastructural bottle necks are cleared by 1H15. Fitch expects the company's capex to remain elevated through 2016 to support development and production expansion across its newer assets. However, Fitch expects MIE's financial leverage to be maintained at less than 3x over the next two years barring any further asset acquisitions. The notes issue and use of the proceeds for refinancing purposes will improve MIE's medium-term liquidity. However, this may result in a concentration of debt maturity around 2018-2019, as it has senior unsecured notes due in February 2018. Fitch's Recovery Rating of 'RR4' on MIE's senior unsecured debt reflects average recovery prospects and immaterial onshore bank debt or offshore secured bank facilities. Following the note issue and refinancing of current notes, MIE's debt will primarily comprise senior unsecured US dollar notes. If material senior ranking debt were to be raised by subsidiaries in the future, the instrument's rating and Recovery Rating may be negatively affected. RATING SENSITIVITIES Negative: Future developments that may individually or collectively lead to negative rating action include - FFO adjusted net leverage exceeding 3x (2013: 2.2x) on a sustained basis - FFO gross interest coverage under 4.5x (2013: 4.7x) on a sustained basis - Significant dividend payments - Material changes in taxation in China and Kazakhstan leading to adverse effects on its cash flows - Material adverse legal disputes leading to adverse effects on its cash flows - Further significant acquisitions before integration of existing assets Positive: Fitch do not expect any positive rating action in the medium-term given MIE's limited scale and operating profile. However, future developments that may individually or collectively lead to positive rating action include - Proven oil and gas reserves above 200mmboe (2013: 83mmboe) - Average production exceeding 80,000boe per day (2013: 15,554boepd) - Maintaining a robust financial position SUNTECH POWER: Can't Dodge Solyndra's Antitrust Suit ---------------------------------------------------- Law360 reported that a California federal judge refused to dismiss bankrupt solar panel maker Solyndra LLC's antitrust lawsuit brought against Suntech Power Holdings Co. Ltd. and two other Chinese companies for allegedly colluding to lower solar panel prices and forcing American companies to close up shop. According to the report, the complaint, which asserts a federal claim under the Sherman Antitrust Act and various state law claims, alleges the companies agreed among themselves to sell their products at artificially low prices, flooding the U.S. with cheap solar panel systems. The case is Solyndra, LLC v. Suntech Power Holdings Co., Ltd. et al., Case No. 4:12-cv-05272 (N.D. Calif.). About Suntech Wuxi, China-based Suntech Power Holdings Co., Ltd., produces solar products for residential, commercial, industrial, and utility applications. Suntech has delivered more than 25,000,000 photovoltaic panels to over a thousand customers in more than 80 countries. Suntech Power Holdings Co., Ltd., received from the trustee of its 3 percent Convertible Notes a notice of default and acceleration relating to Suntech's non-payment of the principal amount of US$541 million that was due to holders of the Notes on March 15, 2013. That event of default has also triggered cross-defaults under Suntech's other outstanding debt, including its loans from International Finance Corporation and Chinese domestic lenders. Suntech Power had involuntary Chapter 7 bankruptcy proceedings initiated against it on Oct. 14, 2013, in U.S. Bankruptcy Court in White Plains, New York (Bankr. S.D.N.Y. Case No. 13-bk-13350), by holders of more than $1.5 million of defaulted securities under a 2008 $575 million indenture. The Chapter 7 Petitioners are Trondheim Capital Partners, L.P., Michael Meixler, Longball Holdings, LLC, and Jiangsu Liquidators, LLC. They are represented by Jay Teitelbaum, Esq., at Teitelbaum & Baskin LLP, in White Plains, New York. Suntech Power on Jan. 31, 2014, disclosed that it has signed a Restructuring Support Agreement relating to the petition for involuntary bankruptcy filed against it under chapter 7 of the U.S. Bankruptcy Code. Under the RSA, the parties agreed that chapter 7 proceedings will be dismissed following recognition of the provisional liquidation proceeding previously filed by the Company in the Cayman Islands under chapter 15 of the U.S. Bankruptcy Code. In February 2014, Suntech Power disclosed that the joint provisional liquidators of the Company appointed by the Grand Court of the Cayman Islands to oversee the restructuring of the Company have commenced a Chapter 15 proceeding under the U.S. Bankruptcy Code in a federal court in the Southern District of New York. Under such a proceeding, the Company is seeking to have recognized in the United States the Company's overseas provisional liquidation which has previously been granted in the Cayman Islands. ========= I N D I A ========= A2K EPIC: ICRA Reaffirms 'B+' Rating on INR4cr Loan --------------------------------------------------- ICRA has reaffirmed long-term rating of '[ICRA]B+' to the INR4 crore (reduced from 5 crore) fund based limits of A2K Epic Decor Pvt Ltd. ICRA has also reaffirmed the short term rating of '[ICRA]A4' to INR15 crore (reduced from 20 crores) non-fund based facilities of ABG. ICRA had suspended the ratings assigned to the bank limits of ABG due to lack of cooperation. Subsequently, the client started cooperating and hence suspension has been revoked. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limits 4 [ICRA ]B+; rating reaffirmed Non Fund Based Limits 15 [ICRA]A4; rating reaffirmed The ratings take into account the highly competitive nature of timber trading industry characterized by presence of numerous unorganized players which has led to moderate revenues and profit margins for the company. Further, ABG's margins remain exposed to exchange rate fluctuation risk as most of the timber is imported and also to risks arising out of volatility in timber prices. The ratings also factor in moderate financial profile as reflected by decline in turnover and profits in FY 14 and moderate debt coverage indicators. The ratings are also constrained by exposure of timber industry to any slowdown in construction sector. However, the ratings derive comfort from the long experience of promoters in timber trading industry, low working capital intensity of operations and low long term repayment obligations given that debt is largely in form of working capital borrowings. Going forward, ability of company to increase its scale of operations in a profitable manner while maintaining working capital intensity shall remain key rating sensitivities. Incorporated in 2003, A2K processes, and trades in, timber. Mr. Atul Garg had entered the business in December 2000 through a proprietorship concern, which was later reconstituted as a private limited company. The company deals in a range of products including teak wood, hard wood and soft wood, importing mainly from Malaysia, Panama, Nigeria, Ghana, Ivory Coast, and New Zealand, and selling in the domestic market mainly to wholesalers and retailers. The saw mill is at Gandhidham (Gujarat).The company also started distribution of Jaquar Lighting in FY 2014 for states of Delhi and Haryana Recent Results The company reported a net profit of INR0.02 crores on an operating income of INR7.53 crores in FY14 (provisional results) as against net profit of INR0.15 crores on an operating income of INR35.68 crores in FY13 ANANDA RICE: CRISIL Assigns 'B' Rating to INR78.8MM Loans --------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the bank facilities of Ananda Rice Mill. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 5.2 CRISIL B/Stable Proposed Long Term Bank Loan Facility 32.1 CRISIL B/Stable Cash Credit 41.5 CRISIL B/Stable Letter Of Guarantee 1.2 CRISIL A4 The ratings reflect ARM's weak financial risk profile, small scale of operations, and susceptibility to volatility in raw material prices and adverse changes in government regulations. These rating weaknesses are partially offset by the extensive experience of ARM's promoter in rice milling and its diversified customer base. Outlook: Stable CRISIL believes that ARM will benefit over the medium term from its promoter's extensive experience in the rice milling industry and its diversified customer base. The outlook may be revised to 'Positive' in case of significantly higher-than-expected accruals, better working capital management, or infusion of capital by its promoter, leading to significant improvement in the firm's financial risk profile, particularly liquidity. Conversely, the outlook may be revised to 'Negative' if ARM faces further stretch in its liquidity owing to delay in its proposed capital expenditure leading to cost overrun, deterioration in working capital management, or lower-than-expected cash accruals. Set up in 1998, ARM mills non-basmati parboiled rice. Its manufacturing facility is located in Burdwan (West Bengal). ARM's day-to-day operations are looked after by its managing partner, Mr. Nurul Haque Mondal. ARM markets its product under its brand, Ananda Gold. ARORA YARN: CRISIL Reaffirms 'B' Rating on INR53.6MM Loans ---------------------------------------------------------- CRISIL's ratings on the bank facilities of Arora Yarn Pvt Ltd continue to reflect AYPL's weak financial risk profile, marked by large debt and small net worth, working-capital-intensive operations, and small scale of operations in the highly competitive woollen yarn industry. These rating weaknesses are partially offset by AYPL's promoter's extensive experience and its established ties with customers. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 35 CRISIL B/Stable(Reaffirmed) Letter of Credit 15 CRISIL A4 (Reaffirmed) Standby Line of Credit 3 CRISIL B/Stable (Reaffirmed) Term Loan 15.6 CRISIL B/Stable (Reaffirmed) Outlook: Stable CRISIL believes that AYPL will continue to benefit over the medium term from its promoter's extensive industry experience and established customer relationships. Its financial risk profile is expected to remain weak because of expected increase in its debt level. The outlook may be revised to 'Positive' if there is an improvement in AYPL's capacity utilisation, and if its capital structure improves, driven most likely by fund infusion by the promoter. Conversely, the outlook may be revised to 'Negative' if the company's profitability is lower than expected, resulting in a less-than-expected cash accruals, or if there is deterioration in its working capital management. Update For 2013-14 (refers to financial year, April 1 to March 31), AYPL is estimated to report revenue of around INR220 million, a significant increase from INR138.6 million in 2012-13 driven by capacity addition. Its operating margin is estimated to be around 7.4 per cent in 2013-14, which is in line with past trend. AYPL's operations remain working-capital-intensive with gross current assets at 155 days estimated as on March 31, 2014, owing to large debtors and modest inventory at 88 days and 45 days, respectively, estimated as on March 31, 2014. AYPL has a weak financial risk profile, with gearing at 3.3 times estimated as on March 31, 2014, owing to high debt levels and small net worth. In 2012-13 and 2013-14, the company undertook capital expenditure (capex) programme to set up warehouse and inducting machinery for capacity enhancement. The capex entailed total cost of INR31.3 million, which comprised of INR17.2 million towards warehouse and the remaining for enhancement of capacity to 1200 tonnes per annum (tpa) from 900 tpa. The capex has been funded with term loan of INR11.1 million, capital infusion of INR7.3 million, and the remaining through unsecured loans from promoter. Furthermore, in 2014-15, the company intends to undertake another phase of capex for establishing washing plant. The capex is estimated to entail a cost of INR13.5 million, which will be funded with term loan. CRISIL believes that AYPL's gearing will remain high over the medium term. Its debt protection metrics are estimated to be weak, with interest coverage and net cash accruals to total debt ratios at 1.5 times and 0.05 times, respectively, for 2013-14. The metrics are expected to remain at similar levels over the medium term. AYPL utilized its bank limits of INR 38.0 million at an average of 60 per cent in the last 12 months ended March 2014. Its liquidity continues to be supported by financial support from promoters. In 2013 and 2014, the promoters infused unsecured loans of INR 17.5 million. The company is estimated to have unsecured loans of INR 42.4 million (constituting 46 per cent of overall debt) as on March 31, 2014. CRISIL believes that AYPL's liquidity will be supported by fund infusion by the promoters whenever necessary. For 2012-13, AYPL reported a profit after tax (PAT) of INR0.9 million on net sales of INR138.6 million, against a PAT of INR1.0 million on net sales of INR124.1 million for 2011-12. The company is estimated to report sales of around INR220 million in 2013-14. AYPL, managed by Mr. Krishan Kumar Arora, was taken over from the management of BJ Woollens Pvt Ltd in 2009. The company manufactures carpet woollen yarn. Its plant is in Bikaner (Rajasthan). AYPL also has branch offices in Panipat (Haryana) and Badhoi (Uttar Pradesh). BIHANI BINAYAKE: CARE Reaffirms 'B+' Rating on INR10cr Bank Loan ---------------------------------------------------------------- CARE reaffirms the ratings assigned to the bank facilities of Bihani Binayake Cotex Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 10.00 CARE B+ Reaffirmed Short-term Bank Facilities 2.50 CARE A4 Reaffirmed Rating Rationale The ratings continue to be constrained by the modest scale of operations of Bihani Binayake Cotex Private Limited along with a strained financial risk profile marked by thin profitability margins and high gearing level. The ratings further continue to be constrained by its presence in the fragmented cotton ginning industry with limited value addition, risk associated with seasonal availability of raw material and susceptibility to government policies related to prices and export of cotton. The ratings, however, continue to draw strength from the promoter's experience in the cotton ginning industry and location advantage due to proximity of BCPL's unit to suppliers and customers. The ability of the company to improve its profitability margins along with improvement in solvency position remains the key rating sensitivity. Based at Parbhani, Maharashtra and incorporated in 2004, Bihani Binayake Cotex Private Limited is engaged in cotton ginning and pressing activity. BBCPL is promoted by the Bihani and the Binayake families having equal shareholding in the company. The major raw material for the company is raw cotton which is procured from the mandi (regional market) on spot purchase basis. BBCPL operates for six months in a year, ie, from October to March owing to seasonal availability of cotton. The customers of BBCPL are located in and around Marathwada region of Maharashtra. In FY13 (refers to the period April 01 to March 31), the BBCPL registered a Profit after Tax (PAT) of INR0.41 crore as against the total operating income of INR81.13 crore as compared with PAT of INR0.11 crore in FY12 as against the total operating income of INR42.82 crore. BLACK STONE: ICRA Reaffirms 'B-' Rating on INR6.92cr Loan --------------------------------------------------------- ICRA has reaffirmed the long term rating of '[ICRA]B-' to INR6.92 crore (enhanced from INR6.10 crore) non fund based facility of Black Stone Enterprises Private Limited. ICRA has also reaffirmed the long term/short term rating of [ICRA]B-/[ICRA]A4 to INR3.08 crore (reduced from INR3.90 crore) unallocated limits of BSEPL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term-Fund Based 6.92 [ICRA]B-; reaffirmed Unallocated Limits 3.08 [ICRA]B-/[ICRA]A4; reaffirmed The ratings reaffirmation takes into account the high off take risk for PT Blu Horse Energy (PTBHE, wholly owned subsidiary of BSEPL) in the absence of minimum off take obligation on PTSM (PT Srinivasa Mining). This coupled with lack of firm off-take arrangements between PTSM and its customers has resulted in delays in ramping up of the coal excavation operations in PTBHE. The ratings reaffirmation continues to take into account limited experience of promoters in coal mining business, limited revenue growth potential going forward with no new contracts in the pipeline, high stripping ratio during the initial operations resulting in high mining costs thereby limiting the profitability and vulnerability of its profitability to increase in the mining costs in the absence of cost escalation clauses in the contract. The ratings also take into account high customer concentration risk with only one customer, significant counterparty credit risks and the regulatory risks associated with the Indonesian mining industry. However, ICRA draws comfort from the exclusivity of the contract to excavate the entire coal reserves of the mine and the expected improvement in the margins during the course of project with the reduction in the stripping ratio. Black Stone Enterprises Private Limited, incorporated in 2009 by Mr. Sravan, is engaged in coal excavation operations through its subsidiary PT Blu Horse Energy (PTBHE) in Indonesia. PTBHE is engaged in coal mining in Indonesia on contract basis for PT Srinivasa Mining (PTSM), which is a subsidiary of SCL Infratech Limited. BSEPL has 99% stake in this company and remaining 1% is held by promoter Mr. Sravan. BSEPL and PTBHE are also engaged in coal trading activities in India and Indonesia. CEASAN GLASS: CRISIL Reaffirms 'D' Rating on INR270MM Loans ----------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Ceasan Glass Pvt Ltd (CGPL) continues to reflect instances of delay by CGPL in servicing its debt over the past year; the delays have been caused by the company's weak liquidity. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 80 CRISIL D (Reaffirmed) Long Term Loan 190 CRISIL D (Reaffirmed) CGPL also has a weak financial risk profile marked by small net worth, high gearing, and weak debt protection metrics, and modest scale of operations. However, the company benefits from its promoters' experience in the glass industry. CGPL was established by Mr. V N Raghurama Gupta and Mr. G Satish Kumar in 2007. The company manufactures figured, patterned, and wired glass. It commenced commercial operations in May 2010. CGPL reported a net loss of INR50.2 million on revenue of INR506 million for 2012-13 (refers to financial year, April 1 to March 31), against a net loss of INR75.9 million on revenue of INR455.5 million for 2011-12. GIAN JYOTI: CRISIL Raises Rating on INR175MM Term Loan to 'B-' -------------------------------------------------------------- CRISIL has upgraded its rating on the long-term bank facilities of Gian Jyoti Educational Society (GJES) to 'CRISIL B-/Stable' from 'CRISIL D'. Amount Facilities (INR Mln) Ratings ---------- -------- ------- Term Loan 175 CRISIL B-/Stable (Upgraded from 'CRISIL D') The upgrade reflects GJES's improved liquidity management mechanism which is likely to result in availability of funds for timely servicing of its debt obligations. GJES has serviced its debt obligations timely over the past six months ended March 2014. GJES's liquidity management has improved on account of streamlining of its cash management systems. The management of GJES has implemented a cash management system wherein its pools surplus cash balances with its various educational institutes into a centralized account and manages cash outflows from the account in a manner which leaves adequate balance for meeting its debt-servicing obligations in a timely fashion. This has resulted in an improved financial discipline. The rating however continues to reflect GJES's exposure to risks related to student occupancy levels, and regulatory risks associated with educational institutions. These rating weaknesses are partially offset by the extensive experience of the promoters in the education services industry along with its established regional position in the education system and diversified course offerings. Outlook: Stable CRISIL believes that GJES will continue to benefit over the medium term from the extensive experience of its promoters in the education services sector, its established regional market position and wide range of courses it offers. The outlook may be revised to 'Positive' in case GJES is able to achieve sustainable improvement in its scale of operations while maintaining its healthy profitability and improving its capital structure. Conversely, the outlook may be revised to 'Negative' if GJES undertakes any greater-than-expected, debt-funded capital expenditure programme, causing its financial risk profile to deteriorate, or if it faces any adverse regulatory change, resulting in significant decline in its student intake or its cash accruals. GJES was established in 1974 by Mr. J.S. Bedi. The society has established three educational institutions in Mohali and Shambhu Kalan in Punjab. The society established its first institution, Gyan Jyoti Public School, in 1974. Mr. J.S. Bedi oversees the day to day operations of the society. The society has two higher education institutes, namely, Gyan Jyoti Institute of Management and Technology located in Mohali and Gyan Jyoti Integrated Campus located in Shambu Kalan. GJES reported a surplus of INR 4.3 million on net income of INR90.8 million for 2012-13 (refers to financial year, April 1 to March 31) , against a surplus of INR11.2 million on net income of INR88.4 million for 2011-12. JALARAM AGRO: CRISIL Assigns 'B+' Rating to INR75MM Loan -------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank facilities of Jalaram Agro Industries. Amount Facilities (INR Mln) Ratings ---------- -------- ------- Cash Credit 75 CRISIL B+/Stable The rating reflects the firm's modest scale of operations in the intensely competitive agricultural commodities industry and weak financial risk profile, marked by below-average debt protection metrics and average gearing. These rating weaknesses are partially offset by the extensive experience of Jalaram Agro's promoters in the agricultural commodities industry, leading to established relationships with customers and suppliers. Outlook: Stable CRISIL believes that Jalaram Agro will benefit from its promoters' experience in the agricultural commodities industry. The outlook may be revised to 'Positive' if the firm improves its scale of operations profitability, leading to higher than expected cash accruals, and, consequently, improvement in financial risk profile. Conversely, the outlook may be revised to 'Negative' in case of lower-than-expected accruals or there is deterioration in working capital management, or there is higher than expected debt funded capital expenditure plan resulting in weaker-than-expected financial risk profile. Formed in 2008, Jalaram Agro is a partnership firm promoted by the Prajapati family based at Ahmedabad (Gujarat). The firm is engaged in processing of non-basmati rice. Jalaram Agro reported book profit of INR1.6 million on net sales of INR602.6 million for 2013-14 (refers to financial year, April 1 to March 31). JAYNIL ENTERPRISES: CRISIL Rates INR122.5MM Term Loan at 'B' ------------------------------------------------------------ CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term bank facilities Jaynil Enterprises. Amount Facilities (INR Mln) Ratings ---------- -------- ------- Term Loan 122.5 CRISIL B/Stable The rating reflects JE's exposure to risks associated with its on- going commercial real estate project and susceptibility of its revenues and earnings to cyclicality inherent in commercial real estate segment. These rating weaknesses are partially offset by the promoters' extensive experience in the real estate industry. Outlook: Stable CRISIL believes that JE will maintain a stable business risk profile on the back of extensive experience of the promoters in the real estate sector. The outlook may be revised to 'Positive' if the customer response to the project is significantly better than expected leading to higher cash flow generation and overall improvement in financial risk profile. The outlook shall be revised to 'Negative' if cash flow from operations are significantly below expectations, either due to subdued response to the project or lower than envisaged flow of advances, significantly affecting its debt servicing ability. JE was setup in 2009 as a sole proprietorship concern of Mr. Anil Mehta. Mr. Mehta has experience of around a decade in real estate sector. JE is currently undertaking development of a commercial project in Andheri East in Mumbai. The project construction is expected to be completed by second quarter of 2014-15. KISHAN AGRO: CRISIL Assigns 'B+' Rating to INR88.5MM Loans ---------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' rating to the bank loan facilities of Kishan Agro Product. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 3.6 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 29.9 CRISIL B+/Stable Bank Guarantee 1.5 CRISIL A4 Cash Credit 55 CRISIL B+/Stable The rating reflects KAP's modest scale of operations in the intensely competitive rice milling industry, and its below-average financial risk profile. These rating weaknesses are partially offset by the extensive experience of the firm's partners in the rice milling industry. Outlook: Stable CRISIL believes that KAP will continue to benefit over the medium term from its partners' extensive industry experience. The outlook may be revised to 'Positive' if the firm's scale of operations increases while it maintains its profitability, or better working capital management leading to improvement in the financial risk profile, especially liquidity. Conversely, the outlook may be revised to 'Negative' if KAP undertakes a large debt-funded capital expenditure programme, registers lower-than-expected accruals, or lengthening of working capital cycle, thereby leading to weakening of its liquidity. Set up in 2005, KAP undertakes rice milling at its facility in Burdwan (West Bengal). Its day-to-day operations are handled by Mr. Abbas Ali, Mr. Noor Mohammad, and Mr. Sanjoy Prasad. MAGBRO HEALTHCARE: CRISIL Reaffirms 'B-' Rating on INR90MM Loans ---------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Magbro Healthcare Pvt Ltd (MPL) continues to reflect MPL's below-average financial risk profile marked by high gearing and small net worth, and its modest scale of operations. These rating weaknesses are partially offset by the extensive experience of MPL's promoters in the pharmaceuticals industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 50 CRISIL B-/Stable (Reaffirmed) Proposed Cash Credit Limit 26.2 CRISIL B-/Stable (Reaffirmed) Term Loan 13.8 CRISIL B-/Stable (Reaffirmed) Outlook: Stable CRISIL believes that MPL will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the company registers more-than-expected growth in revenue and earnings or witnesses equity infusion to support its capital structure, while improving its debt protection metrics. Conversely, the outlook may be revised to 'Negative' if MPL's financial risk profile deteriorates because of substantially lower-than-expected profitability or revenue, or larger-than-expected debt-funded capital expenditure, or lengthening of its working capital cycle. MPL, incorporated in 2006, manufactures, markets, and trades in pharmaceuticals formulations under its own brands. It also carries out contract manufacturing work for companies such as Unichem Laboratories Ltd and Microlabs Ltd. MPL is promoted by Mr. Sudhir Maingi, his brother Dr. Sukhdev Maingi, and a group of professionals. MPL reported a profit after tax (PAT) of INR2.6 million on net sales of INR204.4 million for 2011-12 (refers to financial year, April 1 to March 31), against a PAT of INR2.5 million on net sales of INR181.5 million for 2010-11. MANN RESIDENCY: CRISIL Reaffirms 'D' Rating on INR754MM Loans ------------------------------------------------------------- CRISIL's ratings on the bank facilities of Mann Residency Pvt Ltd (Mann) continue to reflect instances of delay by Mann in servicing its debt; the delays have been caused by the company's weak liquidity. Mann has weak liquidity because of cost overrun during the construction of its hotel and low occupancy. Amount Facilities (INR Mln) Ratings ---------- -------- ------- Bank Guarantee 20 CRISIL D (Reaffirmed) Proposed Long Term Bank Loan Facility 87 CRISIL D (Reaffirmed) Term Loan 367 CRISIL D (Reaffirmed) Term Loan 280 CRISIL D (Reaffirmed) Mann also has a weak financial risk profile, marked by high gearing, weak debt protection metrics, and a small net worth, and a limited track record in the hospitality industry. Moreover, the company is exposed to cyclicality in the hotel industry. However, the company benefits from the advantageous location of its hotel. Mann was set up in 2007 by Mr. Joginder Singh Mann and his family. The company runs a four-star hotel in Gurgaon. The hotel commenced operations in October 2011. Mann reported a net loss of INR96.4 million on net sales of INR43.6 million for 2012-13, against a net loss of INR32.45 million on net sales of INR40.75 million for 2011-12. MANTRAM TECHNOFAB: ICRA Reaffirms 'B+' Rating on INR29cr Loan ------------------------------------------------------------- ICRA has reaffirmed '[ICRA]B+' rating to INR29.00 crore fund based limits of Mantram Technofab Private Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based limits 29.00 [ICRA]B+ reaffirmed The reaffirmation of rating factors in favourable long term demand outlook arising from cement and fertilizer sectors as well as partial deregulation of the food grain segment for packaging and high capacity utilisation of ~90% in FY2013. The rating is however constrained by highly competitive industry structure with low entry barriers and limited product differentiation, vulnerability of profitability to fluctuations in polymer prices, weak bargaining power with raw material suppliers due to their dominant market position. The rating is also constrained by working capital intensive nature of the business. Further, the financial risk profile of the company is characterised by weak capital structure (gearing of 5.98x as on March 31, 2013) constraining financial flexibility and modest debt coverage indicators arising from limited profitability as reflected in Total Debt/OPBITDA of 5.4x and NCA/Total debt of 8% in FY2013. The company is eligible for fiscal benefits like 5% interest subsidy under Technology Upgradation Fund Scheme and state level subsidy like exemption of 75% VAT however there was no cash inflow in FY2013 on account of subsidies. Going forward the ability of the company to improve its conversion margins while maintaining high capacity utilisation, thereby resulting in improved profitability and return indicators will be the key rating sensitivities. Mantram Technofab Private Ltd is promoted jointly by Manjeet Group and Agarwal family of Sendhwa. Manjeet Group is essentially involved in cotton ginning & trading and also has small presence in spinning as well. The other shareholder, Agarwal family is engaged in agriculture, agro-based trading, cotton ginning & spinning and infrastructure development activities. MTPL has set-up a green field facility for manufacturing high density polyethylene (HDPE)/polypropylene (PP) woven fabrics and sacks in Sendhwa, Madhya Pradesh and commenced operations from November 2010. HDPE/PP bags are used for packing and transport of products in the cement, textiles, soapstone, fertilisers, food grains, chemicals and salt industries. It uses polymers such as HDPE and PP, which are primarily sourced domestically. The company has installed capacity of 8400 MT per annum which was increased from 4200 MT in FY2014. MICROSCAN COMPUTERS: CRISIL Cuts Rating on INR250MM Loans to 'D' ---------------------------------------------------------------- CRISIL has downgraded its ratings on the bank facilities of Microscan Computers Pvt Ltd (MCPL) to 'CRISIL D/CRISIL D' from 'CRISIL BB/Stable/CRISIL A4+'. CRISIL has also withdrawn its ratings on bank facilities of INR350 million at the request of MCPL and on receipt of a no-dues certificate for these facilities from the company's banker. Amount Facilities (INR Mln) Ratings ---------- -------- ------- Bank Guarantee 30 CRISIL D (Downgraded from 'CRISIL A4+') Cash Credit 25 CRISIL D (Downgraded from 'CRISIL BB/Stable') Term Loan 195 CRISIL D (Downgraded from 'CRISIL BB/Stable') Bank Guarantee 230 CRISIL A4+ Withdrawn Term Loan 95 CRISIL BB/Stable Withdrawn Cash Credit 25 CRISIL BB/Stable Withdrawn The rating downgrade reflects the delays by MCPL in repayment of its term debt; the delays were caused by the company's cash flow mismatches, constraining its liquidity. MCPL's cash flow mismatches stem from the lumpiness in its cash inflows as against its highly capital-intensive operations. The company is also exposed to downturns in the telecom sector, its key end-user industry. However, MCPL benefits from the extensive industry experience of its promoter and its well-established technological infrastructure. Set up in 1996 by Mr. Sandeep Donde (managing director), MCPL provides a wide range of services, including system integration, fibre networks leasing and operations and maintenance, and infrastructure implementation and maintenance. The company has also entered into retail services, called triple-play services, for providing data, video, and voice over a single broadband connection. For 2012-13 (refers to financial year, April 1 to March 31), MCPL reported a profit after tax (PAT) of INR42.4 million on operating revenue of INR340.8 million, as against a PAT of INR43.7 million on operating revenue of INR330.5 million. NANIBALA COLD: CRISIL Reaffirms 'B+' Rating on INR65MM Loans ------------------------------------------------------------ CRISIL ratings on bank facilities of Nanibala Cold Storage Pvt Ltd (NCSPL) continues to reflect it's below-average financial risk profile, its small scale of operations and susceptibility of its operations to adverse regulatory changes in the cold storage industry. These rating weaknesses are partially offset by the extensive experience of NCSPL's promoters in the cold storage business. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 55 CRISIL B+/Stable Working Capital Facility 10 CRISIL B+/Stable For arriving at its rating, CRISIL has treated interest-free unsecured loans worth INR4.58 million as on March 31, 2013 from NCSPL's promoters and their family as part of quasi capital as the same is expected to remain in the business over the long term. Outlook: Stable CRISIL believes that NCSPL will continue to benefit from the extensive experience of its promoters in the cold storage business over the medium term. The outlook may be revised to 'Positive' in case of efficient management of farmer financing and significant ramp-up in NCSPL's scale of operations and profitability. Conversely, the outlook may be revised to 'Negative' in case NCSPL's liquidity is constrained by delays in repayments by farmers, lower-than-expected cash accruals or larger than expected debt-funded capex. Update The company registered operating revenues of INR21 million Cr in 2012-13 as against INR19.5 million in 2011-12, improvement in operating income of the company was on account of higher rental income received from the farmers and better capacity utilization of the cold storage. The company has further registered operating revenues of INR2.43 Cr for the first 9 months ended December 2013, driven by increase in rental prices of cold storages. There was a decline in operating margins of the company to 20.1 per cent in 2012-13 as against 23.64 per cent in the previous year due to increase power tariffs. As a part of government initiative, NCSPL takes loan from the banks and extends it to the farmers; potato loans to farmers to the tune of INR20.1 million have resulted in high GCA days of 1115 days as on March 31 2013. NCSPL's has a below average financial risk profile, characterized by low net worth, high gearing and below average debt protection metrics. The company had a net worth of INR19.3 million as on March 31 2013, further the company provides financial assistance to the farmers by borrowing from banks and lending to farmers. This has led to high gearing of 2.85 times as on March 31 2013. The debt protection metrics of the company has remained below average with interest coverage ratio (ICR) and Net Cash Accruals to Total Debt (NCATD) of 1.81 times and 2 per cent respectively as on March 31, 2103. The average bank limit utilization of the company has been at 19 per cent for the 12 months ended December 2013. The company had high unencumbered cash balance of INR33.6 million as on March 31 2013. Incorporated in 1997 by Mr. Chittranjan Pal and his four sons, NCSPL has a cold storage in Bankura (West Bengal) with three chambers and a capacity of 218,000 quintals. The company also trades in potatoes. For 2012-13 (refers to financial year, April 1 to March 31), NCSPL reported, a profit after tax (PAT) of INR1.9 million on an operating income of INR20.8 million as against a PAT of INR2.1 million on an operating income of INR19.5 million for 2011-12 NOVELTY REDDY: CRISIL Reaffirms 'B+' Rating on INR95MM Loan ----------------------------------------------------------- CRISIL's ratings on the bank facilities of Novelty Reddy and Reddy Motors Pvt Ltd continue to reflect Novelty's below-average financial risk profile marked by small net worth, moderate total outside liabilities to tangible net worth ratio, and below-average debt protection metrics. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 15 CRISIL A4 (Reaffirmed) Cash Credit 95 CRISIL B+/Stable (Reaffirmed) The ratings also reflect the company's exposure to economic cyclicality and intense competition in the automotive dealership industry. These rating weaknesses are partially offset by Novelty's established regional presence in the automotive dealership business supported by its promoters' extensive industry experience and established relationship with principal Maruti Suzuki India Ltd, and limited exposure to inventory and debtor risks. Outlook: Stable CRISIL believes that Novelty will continue to benefit over the medium term from its promoters' extensive industry experience and its established relationship with its principal. The outlook may be revised to 'Positive' in case of substantial and sustained increase in the company's revenue and profitability margins, or substantial improvement in its capital structure on the back of sizeable capital infusion by its promoters. Conversely, the outlook may be revised to 'Negative' in case of a steep decline in the company's profitability margins, or significant deterioration in its capital structure most likely because of stretch in working capital cycle or large debt-funded capital expenditure. Incorporated in 2007, Novelty is an authorised dealer of Maruti Suzuki India Ltd's entire range of passenger cars, and spares and accessories. Novelty has two showrooms cum service stations in Bhimavaram and Tanuku (both in Andhra Pradesh) and four display branches in West Godavari (Andhra Pradesh). Mr. Goluguri Rama Krishna Reddy is the company's managing director. PATIL AND COMPANY: CRISIL Reaffirms 'D' Rating on INR230MM Loans ---------------------------------------------------------------- CRISIL's ratings on the bank facilities of Patil and Company continue to reflect the firm's continuously overdrawn cash credit limit for over 30 days, because of weakening in liquidity driven by continuous stretch in receivables. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 150 CRISIL D (Reaffirmed) Cash Credit 80 CRISIL D (Reaffirmed) PAC's scale of operations remains modest with low project diversity and large working capital requirements. However, the firm benefits from its promoters' extensive experience in the construction industry, and its moderate financial risk profile marked by moderate net worth and low gearing. PAC was established in 1974 by Mr. Basanna Tipanna Yelure. The firm undertakes complete execution of projects related to construction of roads, primarily for government undertakings. Its construction activity is concentrated in Maharashtra and Karnataka. PAC reported a profit after tax (PAT) of INR19.7 million on net sales of INR413.3 million for 2012-13 (refers to financial year, April 1 to March 31), against a PAT of INR13.6 million on net sales of INR315.0 million for 2011-12. PREMIER AGRO: CRISIL Reaffirms 'B' Rating on INR110MM Loans ----------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Premier Agro Products Private Limited continues to reflect PAPPL's weak financial risk profile, marked by a small net worth and high gearing, modest scale of operations, and susceptibility of its margins to volatility in commodity (wheat) prices. These rating weaknesses are partially offset by the benefits that PAPPL derives from its promoters' extensive experience in the agricultural commodities industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 75 CRISIL B/Stable (Reaffirmed) Term Loan 35 CRISIL B/Stable (Reaffirmed) Outlook: Stable CRISIL believes that PAPPL will benefit from the extensive experience of its promoters, over the medium term. The outlook may be revised to 'Positive' if PAPPL significantly improves its financial risk profile, supported by a higher-than-expected increase in its cash accruals. Conversely, the outlook may be revised to 'Negative' if PAPPL undertakes significant debt-funded capital expenditure (capex) or if the working capital requirement is larger than expected, leading to further deterioration in its credit risk profile. Update PAPPL reported provisional operating income of INR307.6 million in 2013-14 (refers to financial year, April 1 to March 31), representing year-on-year growth of 12.7 per cent over the previous year. The moderate growth in operating income is driven by improvement in capacity utilisation to meet healthy demand for its products. The operating margin was estimated at 6.1 per cent in 2013-14. PAPPL has increased its capacity to 120 tonnes per day (tpd) from the existing 80 tpd, which is operational since April 2014. CRISIL believes that PAPPL's scale of operations will increase over the medium term supported by capacity addition. PAPPL's financial risk profile remains weak due to its small net worth, estimated at INR35.1 million as on March 31, 2014, caused by moderate accretions to reserves. PAPPL's gearing, estimated at 2.63 times on the same date, is high partly due to debt-funded capex. PAPPL incurred a capex of INR50 million over the last two years towards expansion of its manufacturing capacity to 120 tpd, which was funded with bank debt of INR35 million and the balance through unsecured loans from promoters and internal accruals. Though gearing is expected to gradually improve over the medium term supported by moderate accretions and absence of debt-funded capex, it is expected to remain above 2.2 times. CRISIL believes that PAPPL's capital structure will remain weak over the medium term due to small net worth and high gearing. The debt protection metrics are moderate marked by estimated interest coverage and net cash accrual to total debt ratios of 2.45 times and 0.09 times, respectively, in 2013-14. PAPPL has moderate liquidity marked by its moderate bank limit utilisation. The company utilised its bank limits at around 87 per cent on an average during the 12 months through January 2014. Also, PAPPL is expected to generate adequate cash accruals of around INR9 million in 2014-15 to services its term debt repayments. PAPPL, set up in 1992 in Palakkad (Kerala), processes wheat into different by-products such as refined flour (maida), semolina (suji), and whole wheat flour (atta). These products are sold in the market under the brand, Surabhi. R&B DENIMS: ICRA Reaffirms 'B+' Rating on INR32cr Loans ------------------------------------------------------- ICRA has reaffirmed the long-term rating of '[ICRA]B+' assigned to the INR20.00 crore term loan facility, and INR12.00 crore cash credit facilities of R&B Denims Limited. ICRA has also reaffirmed the short-term rating of '[ICRA]A4' assigned to the INR3.00 crore non-fund-based bank facilities of RBDL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Loans 20.00 [ICRA]B+ reaffirmed Long Term Cash Credit facilities 8.40 [ICRA]B+ reaffirmed Long Term Proposed Cash Credit facilities 3.60 [ICRA]B+ reaffirmed Short Term Letter of Credit (sub- limit of term loan facility) (10.00) [ICRA]A4 reaffirmed Short Term Bank Guarantee 3.00 [ICRA]A4 reaffirmed The reaffirmation of ratings takes into consideration the limited track record of operations of the company, its weak financial profile as evident from the subdued profitability levels and return indicators and the deterioration in capital structure due to the sizeable debt-funded capex undertaken in FY2014. The proceeds from the public issue (concluded in April 2014) and the reimbursement of capital subsidies that the company is entitled to (for having availed loans under the TUFS), would however be used for repayment of debt which would reduce the debt burden of the company to some extent. The ratings continue to remain constrained by the vulnerability of the company's profitability to the fluctuations in raw material prices, the intense competitive forces and the cyclicality inherent in the textile industry. ICRA also notes the susceptibility of the company's operations to the regulatory risks associated with the procurement of cotton yarn, which is a major raw material for the company. The ratings, however, draw comfort from the long and established experience of the promoters in the field of manufacturing and trading of fabric and the healthy scale-up of operations by way of improved capacity utilization levels at the existing manufacturing unit. The ratings also note favourably the locational advantage available to the company by virtue of its proximity to both suppliers and customers. R&B Denims Limited was incorporated in 2010 and commenced operations in April 2012 as a denim manufacturing unit based at Palsana, Surat (Gujarat). RBDL is focused on only the weaving aspect in the denim manufacturing chain and is involved in warping, sizing, weaving, processing and trading of denim. The manufacturing facility commenced operations with 48 air-jet looms, and an installed capacity of ~1 crore metres per annum, which has since been augmented to ~2 crore meters per annum in FY2014. RADHE SHYAM: CRISIL Assigns 'B' Rating to INR54.5MM Loans --------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term bank facilities of Radhe Shyam Cotton Industries. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 40 CRISIL B/Stable Term Loan 14.5 CRISIL B/Stable The rating reflects RCI's weak financial risk profile, marked by its high gearing and small net worth, coupled with its exposure to intense competition in the fragmented cotton ginning segment. These rating weaknesses are partially offset by the promoters' extensive industry experience and the firm's proximity to cotton suppliers. Outlook: Stable CRISIL believes that RCI will benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the firm enhances its net worth and financial risk profile with sizeable cash accruals, and an improved scale of operations. Conversely, the outlook may be revised to 'Negative' if RCI's financial risk profile weakens because of significantly low revenue or operating profitability, or a lengthy working capital cycle or large, debt-funded, capital expenditure. RCI is a partnership firm established by the Patel family in 2012, based in Gujarat. The firm is currently managed by Mr. Manilal Sankalchand Patel. RCI gins and presses raw cotton (kapas) and also undertakes crushing activities to manufacture cotton seed oil. REDDY AND REDDY: CRISIL Upgrades Rating on INR60MM Loan to 'B+' --------------------------------------------------------------- CRISIL has upgraded its rating on the long-term bank facilities of Reddy and Reddy Automobiles to 'CRISIL B+/Stable' from 'CRISIL B/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') The rating upgrade reflects the improvement in RRA's capital structure with sustained improvement in its working capital cycle resulting in lower reliance on debt. CRISIL believes that the firm's capital structure will continue to improve over the medium term on the back of consistent growth in net worth and its management's cautious decision to operate with lower inventory. The firm's working capital cycle has also improved as reflected in reduction in its gross current assets to an estimated 80 days as on March 31, 2014, from 98 days a year earlier. The firm's efficient working capital management, along with increase in its net worth, resulted in decline in its total outside liabilities to tangible net worth (TOLTNW) ratio to an estimated 1.7 times as on March 31, 2014, from 2.1 times as on March 31, 2013. The rating reflects RRA's below-average financial risk profile marked by small net worth, moderate TOLTNW ratio, and below- average debt protection metrics. The rating also reflects the firm's exposure to economic cyclicality and intense competition in the automotive dealership industry. These rating weaknesses are partially offset by RRA's established regional presence in the automotive dealership business supported by its promoters' extensive industry experience and established relationship with its principal - Hero MotoCorp Ltd, and its limited exposure to inventory and debtor risks. Outlook: Stable CRISIL believes that RRA will continue to benefit over the medium term from its promoters' extensive industry experience and its established relationship with its principal. The outlook may be revised to 'Positive' in case of substantial and sustained increase in the firm's revenue and profitability margins, or substantial increase in its net worth on the back of sizeable capital infusion by its promoters. Conversely, the outlook may be revised to 'Negative' in case of steep decline in the firm's profitability margins, or significant deterioration in its capital structure most likely because of stretch in its working capital cycle or large debt-funded capital expenditure. Set up in 2004, RRA is an authorised dealer of Hero MotoCorp Ltd's entire range of two-wheelers, and spares and accessories. The firm has one showroom-cum-service station in Bhimavaram (Andhra Pradesh), and five display centres in West Godavari (Andhra Pradesh). Mr. Goluguri Rama Krishna Reddy is the firm's managing partner. ROOP RAM: CRISIL Reaffirms 'D' Rating on INR187MM Loans ------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Roop Ram Educare Pvt Ltd continues to reflect instances of delay by RREPL in servicing its debt; the delays have been caused by the company's weak liquidity. The company has weak liquidity because of its short-term cash flow mismatches. Amount Facilities (INR Mln) Ratings ---------- -------- ------- Overdraft Facility 10 CRISIL D (Reaffirmed) Proposed Long Term Bank Loan Facility 147 CRISIL D (Reaffirmed) Term Loan 30 CRISIL D (Reaffirmed) RREPL also has a weak financial risk profile, marked by high gearing and weak debt protection metrics, and limited track record of operations. Moreover, it is exposed to intense competition from established schools in surrounding areas, and is vulnerable to regulatory risks associated with educational institutions. However, RREPL benefits from its promoters' extensive experience in, and the healthy demand prospects for, the education sector. RREPL was set up in 2007 by Mr. Anand Singh Mann and his family. The company operates a co-educational school, Lancers International, in New Delhi. The school follows the International Baccalaureate and University of Cambridge International examinations syllabus and has classes from pre-primary (lower kindergarten and upper kindergarten) to standard 12 (primary, lower secondary, and higher secondary levels). RREPL reported a profit after tax of INR13.2 million on operating income of INR130 million for 2012-13 (refers to financial year, April 1 to March 31), against a net loss of INR13.62 million on an operating income of INR96.9 million for 2011-12. SAHARA GROUP: Urges Apex Court to Defreeze Accounts --------------------------------------------------- The Times of India reports that Sahara Group has urged the Supreme Court to defreeze its accounts and properties to enable it to fulfil the conditions laid down by the top court for the bail of its chief Subrata Roy. Stating that it was disappointed with the court judgement on May 6, the company promised to draw up a fresh proposal for the bail of Mr. Roy, according to the report. "We are still in the process of reading and understanding the judgment. The voluminous evidence that we have already submitted to substantiate our stance may have possibly been misunderstood," Keshav Mohan, the company's advocate was quoted as saying in a statement, TOI relays. TOI relates that the statement quoted Mohan as saying that the company had already refunded to 93% of its investors. "Most of the payments made were in cash, as per the RBI norms and in accordance with Sebi and SAT orders. In addition to ledger entries, we had also submitted original vouchers, receipts and other concerned documents in original, being physical proof of the payments and are with Sebi pending verification," Mohan was quoted as saying, TOI relays. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 15, 2013, The Economic Times said Sebi on Feb. 13, 2013, seized bank accounts and properties of two Sahara Group companies and its promoter, Subrata Roy. The move comes following the group's failure to refund INR24,000 crore to investors as directed by the Supreme Court. Sahara Group operates businesses ranging from finance, housing, manufacturing and the media. Sahara also sponsors the Indian hockey team and owns a stake in Formula One racing team, Force India. SHRI RAM: CRISIL Reaffirms 'B+' Rating on INR55MM Cash Credit ------------------------------------------------------------- CRISIL's rating on the bank facilities of Shri Ram Cotton & Oil Mills continues to reflect the firm's modest scale of operations and weak financial risk profile marked by high gearing and weak debt protection measures. These rating weaknesses are partially offset by the benefits that SRCM derives from its promoters' extensive experience in the cotton ginning industry, financial support from promoters, and its proximity to the cotton-growing belt of Punjab. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 55 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes that SRCM will continue to benefit over the medium term from its promoters' extensive industry experience and from its proximity to the cotton growing belt of Punjab. However, the firm's financial risk profile will remain weak over the medium term on account of low accruals and high gearing. The outlook may be revised to 'Positive' if the firm's scale of operations improves significantly along with sustained improvement in its profitability or if its capital structure improves either because of equity infusion or large cash accruals. Conversely, the outlook may be revised to 'Negative' if SRCM's financial risk profile deteriorates because of increased working capital debt or if change in government policy has a negative impact on its operations. Update For 2013-14 (refers to financial year, April 1 to March 31), SRCM is likely to report revenue of INR470 million, down around 20 per cent over 2012-13 mainly on account of poor cotton crop. CRISIL believes that SRCM will maintain stable business risk profile, with revenue of around INR490 million and stable operating margin of 1.5 to 1.8 per cent over the medium term. SRCM's gross current assets (GCAs) are estimated at 77 days as on March 31, 2014, in line with CRISIL's expectation, driven by moderate inventory and debtors. The firm's gearing is estimated at 3.8 times (with unsecured loans from promoters considered as neither debt nor equity) as on March 31, 2014. Its debt comprises majorly of short-term debt contracted to meet working capital requirements (99 per cent of total debt). SRCM's bank limit utilisation over the 12 months through March 2014 was moderate, averaging 78 per cent. The firm's capital structure is expected to remain stable over the medium term, with no capex plan. SRCM's debt protection metrics are weak because of leveraged capital structure and modest scale of operations. Its interest coverage and net cash accruals to total debt ratios are estimated at 1.2 times and 0.03 times, respectively, for 2013-14. CRISIL expects the firm's debt protection metrics to remain at similar levels over the medium term. For 2012-13, SRCM reported a profit after tax (PAT) of INR0.78 million on net sales of INR591.8 million, against a PAT of Rs0.59 million on net sales of INR521.1 million for 2011-12. SRCM was incorporated as a partnership firm by Mr. Dharam Pal and Mr. Suraj Manaktala in 2001 and is engaged in cotton ginning and oil extraction. The firm's promoters have been engaged in the cotton ginning and oil extraction business for over three decades. The firm has installed ginning capacity of 30,000 candies per year with 30 automated roller gins. The firm has also installed nine oil expellers with total oil extraction capacity of 900 quintals per day. SRICHAKRA EDEN: ICRA Suspends 'B+' Rating on INR11.5cr Loan ----------------------------------------------------------- ICRA has suspended the long term rating of '[ICRA]B+' assigned to the INR11.50 crore fund based facilities of Srichakra Eden Green Projects Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of requisite information from the company. USHA IMPEX: CRISIL Ups Rating on INR60MM Cash Credit to 'B+' ----------------------------------------------------------- CRISIL has upgraded its rating on the long-term bank facilities of Usha Impex to 'CRISIL B+/Stable' from 'CRISIL B/Stable', and has reaffirmed its rating on the company's short-term facilities at 'CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- -------- ------- Cash Credit 60 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') Letter of Credit 240 CRISIL A4 (Reaffirmed) The rating upgrade reflects CRISIL's belief that UI's liquidity will improve over the medium term, driven by adequate net cash accruals to meet repayment obligations, supported by steady revenue growth. The firm's financial risk profile is supported by the absence of any debt-funded capital expenditure over the medium term and low incremental working capital requirements; its gross current assets are expected to remain low at 70 to 80 days over this period. This is supported by the management's continued focus on reducing the debtor cycle and on efficient inventory management. Moreover, the firm's liquidity is supported by unsecured loans from the promoter and the recent enhancement in its bank limits. The ratings continue to reflect UI's weak financial risk profile, marked by a small net worth and a high total outside liabilities to tangible net worth ratio. The ratings also factor in the firm's marginal scale of operations, supplier concentration, and vulnerability of its operating margin to volatility in input prices and in foreign exchange rates. These rating weaknesses are partially offset by the extensive business experience of UI's proprietor, and its established relationships with customers and suppliers. Outlook: Stable CRISIL believes that UI will continue to benefit over the medium term from its proprietor's extensive experience in the metal trading business. The outlook may be revised to 'Positive' if UI significantly scales up its operations and profitability, while prudently managing its working capital cycle, leading to improvement in its capital structure. Conversely, the outlook may be revised to 'Negative' if the firm reports significant weakening of its liquidity, most likely because of a stretch in its working capital cycle or a significant decline in its revenue and profitability. UI was set up in 2000 by Mr. Atul Jindal. The Ludhiana (Punjab)- based firm trades in metals such as nickel, zinc, and ferroalloys, which are used in the electroplating and automotive industries, and for manufacturing components used in galvanised iron equipment. It has a marketing base in Ludhiana. In 2011-12 (refers to financial year, April 1 to March 31), the firm opened marketing offices in Mumbai, New Delhi, and Bengaluru (Karnataka); it is in the processing of opening an office in Haridwar (Uttarakhand). VASTRAM INDIA: CRISIL Reaffirms 'B+' Rating on INR100MM Loan ------------------------------------------------------------ CRISIL's ratings on the bank facilities of Vastram India Pvt Ltd continue to reflect VIPL's small scale of operations, susceptibility to volatile cotton prices, and weak financial risk profile, marked by a high total outside liabilities to tangible net worth (TOLTNW) ratio and weak debt protection metrics. These rating weaknesses are partially offset by the extensive industry experience of VIPL's promoter. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 100 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes that VIPL will continue to benefit over the medium term from its promoter's extensive experience in the cotton fabric business. However, the company's credit risk profile will remain constrained because of its small scale of operations and high TOLTNW ratio. The outlook may be revised to 'Positive' in case of significant improvement in VIPL's scale of operations and profitability, most likely driven by greater diversity in revenue profile. Conversely, the outlook may be revised to 'Negative' in case the company reports weaker-than-expected revenues and profitability or undertakes any large debt-funded capital expenditure programme. Set up in 1999 by Mr. Mahesh Jain, VIPL trades in denim fabric, and is also an authorised distributor for Arvind Ltd's products in New Delhi and the National Capital Region. For 2012-13 (refers to financial year, April 1 to March 31), VIPL reported a profit after tax (PAT) of INR2.77 million on net sales of INR609.0 million, as against a PAT of INR0.48 million on net sales of INR 455.2 million for 2011-12. For the nine months ended December 2013, the company reported a PBT of INR3.2 million on net sales of INR506.9 million. VEE KAY: CRISIL Assigns 'B' Rating to INR82.9MM Loans ----------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the long term bank facilities of Vee Kay Enterprises. Amount Facilities (INR Mln) Ratings ---------- -------- ------- Cash Credit 67.5 CRISIL B/Stable Term Loan 15.4 CRISIL B/Stable The rating reflects VKE's modest scale of operations, working capital intensive nature of activity and below-average financial risk profile of the firm marked by modest networth, high gearing, and subdued debt protection metrics. These rating weaknesses are offset by the extensive experience of the partners in the textile industry. Outlook: Stable CRISIL believes VKE will continue to benefit over the medium term from the extensive industry experience of the partners. The outlook may be revised to 'Positive' in case the firm records a significant and sustainable growth in revenues, while improving its profitability margins and capital structure. Conversely, the outlook may be revised to 'Negative' if the firm's revenues or margins decline significantly or if there is an elongation in the firm's working capital cycle or if it undertakes a larger-than- expected debt-funded capital expenditure programme, leading to further weakening of its financial risk profile. VKE was established as a partnership firm in 1985. The current partners of the firm are Mr. Vikas Behal and his brother, Mr. Vishal Behal. VKE is engaged in manufacturer of acrylic yarns, polyester yarns and polyster and acrylic knitting yarns. The manufacturing facility of the firm is located in Ludhiana, Punjab. VKE reported profit after tax (PAT) of INR1.6 million on net sales of INR259.9 million for 2012-13 (refers to financial year, April 1 to March 31) against PAT of INR 0.8 million on net sales of INR 189.1 million for 2011-12. VELLOILS LUBRICANT: CRISIL Assigns 'B' Rating to INR85MM Loans -------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' rating to the bank facilities of Velloils Lubricant & Petrochem Ltd. Amount Facilities (INR Mln) Ratings ---------- -------- ------- Term Loan 10.7 CRISIL B/Stable Proposed Long Term Bank Loan Facility 39.3 CRISIL B/Stable Letter of Credit 50 CRISIL A4 Bank Guarantee 15 CRISIL A4 Cash Credit 35 CRISIL B/Stable The rating reflects VLPL's below-average financial risk profile, marked by a small net worth, high gearing, weak debt protection metrics, and low cash accruals. The rating also factors in the company's small scale and working capital intensive nature of operations. These rating weaknesses are partially offset by the extensive experience of VLPL's promoters in the lubricants industry and its established clientele. Outlook: Stable CRISIL believes that VLPL will continue to benefit over the medium term from the extensive experience of its promoters in the lubricants industry. The outlook may be revised to 'Positive' in case of significant improvement in the company's scale of operations and profitability, leading to higher cash accruals and a better capital structure. Conversely, the outlook may be revised to 'Negative' in case of further deterioration VLPL's liquidity, most likely due to substantial working capital requirements or lower-than-expected cash accruals. VLPL was incorporated in 1995 in Bhilad (Gujarat), promoted by Mr. Mukesh R Vakharia, Mrs. Beena M Vakharia, Mr. Mitesh R Vakharia, and Mr. Darshan R Vakharia. The company manufactures automotive, industrial, and speciality lubricants. It caters to clients in Maharashtra and Gujarat. VLPL reported a profit after tax (PAT) of INR0.3 million on a net operating income of INR131.7 million for 2012-13 (refers to financial year, April 1 to March 31), against a PAT of INR0.9 million on a net operating income of INR131.2 million for 2011-12. ================= S I N G A P O R E ================= TIGER AIRWAYS: Names New CEO on Widening Losses ----------------------------------------------- Reuters reports that Tiger Airways said it would be replacing its chief executive with an executive from its largest shareholder, Singapore Airlines, days after the budget carrier reported a big increase in its losses. Lee Lik Hsin, a 20-year veteran of SIA, which owns 40 per cent of Tiger, will become chief executive from May 5, replacing Koay Peng Yen, who joined Tiger less than two years ago, the airline said on May 7, Reuters relates. "Tigerair Singapore, which had been growing at the rate of 30 per cent in the past three years, hit turbulence when the market sagged in mid-2013 through the imbalance of capacity and demand," Tiger said. "Nonetheless by the time of Mr. Koay's departure, Tigerair Singapore had started the process of consolidating its services in preparation for a decisive turnaround in its prospects." Tiger's shares have declined nearly 40 per cent over the past year and are trading near a record low, Reuters notes. The airline reported a net loss of SGD95.5 million (HK$593 million) in the quarter to March 31, more than six times the loss of SGD15.4 million in the same period last year, the report adds. ==================== S O U T H K O R E A ==================== WOORI BANK: S&P Cuts Rating on US$7BB Note Sub. Tranche to 'BB+' ---------------------------------------------------------------- Standard & Poor's Ratings Services said that it has lowered to 'BB+' from 'BBB+' its program rating on the subordinated tranche of Woori Bank's (Woori: A-/Stable/A-2) US$7 billion global medium- term note (GMTN) program after the bank updated the terms and conditions of the program. At the same time, S&P affirmed its 'A- ' program rating on the senior unsecured tranche of the same program after reviewing the updated terms and conditions. S&P also affirmed its existing 'BBB+' ratings on the program's subordinated debt issues, which were issued based on the previous terms and conditions of the program. "Our downgrade of the subordinated tranche reflects our view that the government of Korea is unlikely to extend extraordinary support to Woori's subordinated issues from the GMTN program as the subordinated tranche has become Basel III-compliant and thus carries relatively higher risk. Although we have factored extraordinary government support into our issuer credit ratings on Woori, we believe it is unlikely that the government would extend support to its Basel III-compliant subordinated debt, because it is designed to absorb losses and form part of the banks' regulatory capital. Hence, in our view, Woori's stand-alone credit profile (SACP), which excludes extraordinary support from the government, is an appropriate starting point in assessing the relative risks of the subordinated tranche of the GMTN program," S&P said. "Our 'BB+' rating on the subordinated tranche is two notches below Woori's SACP of 'bbb'. Based on our hybrid capital criteria, the notching reflects the risk related to subordination and the risk of write-down and waiver of principal and interest payments upon the occurrence of a nonviability event. Under the updated terms and conditions of the GMTN program, we note that there is a write- down clause for the subordinated tranche that allows the following upon the occurrence of a nonviability event: the full principal amount will be permanently written down to zero and the bonds will be canceled; and the payment of principal and interest will be irrevocably waived. The nonviability event trigger will also be the earlier of 1) the issuance of a management improvement order against the Bank by the Financial Services Commission pursuant to Article 36 of the Regulation on Supervision of Banking Business; and 2) the designation of the Bank as an "insolvent financial institution" pursuant to the Act on Structural Improvement of the Financial Industry," S&P noted. S&P affirmed the program rating on the senior unsecured tranche of the GMTN program, as there is no material change in the terms and conditions, in S&P's opinion. S&P also affirmed its existing 'BBB+' ratings on the subordinated notes as the updated terms and conditions will not affect the terms and conditions of subordinated debt previously issued from the GMTN program. * SOUTH KOREA: Large Firms' Debt-Repaying Ability Worsens in 2013 ----------------------------------------------------------------- Yonhap News reports that nearly one out of four listed companies with annual sales of KRW1 trillion (US$974 million) or more were unable to cover interest payments with their earnings last year as a sluggish domestic market hurt their profitability, data showed on May 7. According to the report, Chaebul.com, which tracks the nation's top conglomerates, said 36 firms, or 23 percent, out of 159 companies that logged annual sales of KRW1 trillion or more reported an interest coverage ratio of below 1 last year. The ratio, or a firm's operating profit divided by its interest costs, measures the company's ability to pay interest on outstanding debt, Yonhap relates. A reading higher than 1 means the firm earns more than what it has to pay in interest, while a drop in the reading indicates the firm's debt-repayment ability has deteriorated, Yonhap notes. Yonhap relates that the data showed the 2013 figure reached its highest mark in three years. The comparable figures for 2011 and 2012 were 17.8 percent and 21.5 percent, respectively. Airliners, construction firms, shipbuilders and shippers, in particular, reported an interest coverage ratio of below zero, mirroring a slump in the shaky sectors, the report notes. The interest coverage ratios at Daewoo Engineering & Construction Co., GS Engineering & Construction Co. and other major builders stayed below one. Shippers such as Hyundai Merchant Marine Co. and Hanjin Shipping Co. also suffered an interest coverage ratio of below one, the data, as cited by Yonhap, showed. =============== X X X X X X X X =============== * Large Companies with Insolvent Balance Sheets ----------------------------------------------- Total Total Shareholders Assets Equity Company Ticker (US$MM) (US$MM) ------- ------ ------ ------------ AUSTRALIA AAT CORP LTD AAT 32.50 -13.46 ANITTEL GROUP LT AYG 18.43 -0.26 ATLANTIC LTD ATI 490.17 -25.68 AUSTRALIAN ZI-PP AZCCA 77.75 -2.57 AUSTRALIAN ZIRC AZC 77.75 -2.57 BIRON APPAREL LT BIC 19.71 -2.22 BOUNTY MINING LT BNT 10.54 -0.94 CLARITY OSS LTD CYO 33.12 -11.66 CMA CORP LTD CMV 127.41 -51.00 CWH RESOURCES LT CWH 10.71 -3.03 IDM INTERNATIONA IDM 30.99 -23.62 LIONHUB GROUP LT LHB 19.21 -26.52 MIRABELA NICKEL MBN 335.09 -179.03 NATURAL FUEL LTD NFL 19.38 -121.51 PACT GROUP HOLDI PGH 1,120.30 -982.11 PENRICE SODA HOL PSH 122.46 -26.85 RIVERCITY MOTORW RCY 386.88 -809.13 RUBICOR GROUP LT RUB 45.20 -75.31 STERLING PLANTAT SBI 59.08 -6.07 STIRLING RESOURC SRE 16.53 -8.12 STRAITS RESOURCE SRQ 208.51 -29.73 SWAN GOLD MINING SWA 36.43 -9.08 TZ LTD TZL 12.88 -8.73 CHINA ANHUI GUOTONG-A 600444 79.12 -10.53 CHANG JIANG-A 520 770.91 -176.56 CHINA GREAT LAND CGL 16.52 -19.01 CHINA OILFIELD T COT 22.00 -16.71 FORGAME HOLDINGS 484 83.73 -21.92 HEBEI BAOSHUO -A 600155 114.00 -104.15 HULUDAO ZINC-A 751 507.79 -532.25 HUNAN TIANYI-A 908 59.37 -1.14 JIANGSU ZHONGDA 600074 338.59 -29.88 NANNING CHEMIC-A 600301 391.41 -43.60 QINGDAO YELLOW 600579 122.36 -71.04 QINGHAI SUNSHI-A 600381 394.70 -78.28 SHENZ CHINA BI-A 17 28.50 -283.65 SHENZ CHINA BI-B 200017 28.50 -283.65 SHIJIAZHUANG D-A 958 241.31 -111.50 SHUNFENG PHOTOVO 1165 411.73 -51.06 TAIYUAN TIANLO-A 600234 63.28 -17.71 WUHAN BOILER-B 200770 217.13 -213.03 WUHAN XIANGLON-A 600769 77.45 -103.43 YUNNAN JINGGU FO 600265 84.92 -2.90 HONG KONG BIRMINGHAM INTER 2309 59.95 -12.80 BUILDMORE INTL 108 17.36 -70.34 CHINA ENVIRONMEN 986 66.65 -0.87 CHINA HEALTHCARE 673 34.76 -0.75 CHINA OCEAN SHIP 651 248.21 -106.72 CNC HOLDINGS 8356 99.16 -9.03 CROSBY CAPITAL 8088 16.40 -20.27 EFORCE HLDGS LTD 943 60.73 -9.56 GRANDE HLDG 186 255.10 -208.18 INNO-TECH HLDGS 8202 84.54 -116.82 LANGHAM -SS 1270 684.55 -86.21 LONG SUCCESS INT 8017 50.05 -7.44 MASCOTTE HLDGS 136 57.51 -81.70 MEGA EXPO HOLDIN 1360 17.00 -0.53 MELCOLOT LTD 8198 13.69 -28.83 NORSTAR FOUNDERS 2339 21.97 -56.33 PALADIN LTD 495 159.65 -9.17 PROVIEW INTL HLD 334 314.87 -294.85 SINO RESOURCES G 223 29.34 -24.77 SURFACE MOUNT SMT 32.88 -10.68 VXL CAPITAL LTD 727 74.79 -0.16 INDONESIA APAC CITRA CENT MYTX 176.66 -6.99 ARPENI PRATAMA APOL 249.84 -319.77 ASIA PACIFIC POLY 375.58 -815.83 BUMI RESOURCES BUMI 7,027.47 -18.17 ICTSI JASA PRIMA KARW 56.41 -6.12 JAKARTA KYOEI ST JKSW 24.92 -34.90 MATAHARI DEPT LPPF 209.66 -89.74 ONIX CAPITAL TBK OCAP 13.22 -1.03 RENUKA COALINDO SQMI 15.84 -0.48 SUMALINDO LESTAR SULI 95.14 -18.99 UNITEX TBK UNTX 18.83 -18.53 INDIA ABHISHEK CORPORA ABSC 53.66 -25.51 AGRO DUTCH INDUS ADF 85.09 -22.81 ALPS INDUS LTD ALPI 201.29 -41.70 AMIT SPINNING AMSP 12.85 -7.68 ARTSON ENGR ART 11.81 -10.16 ASHAPURA MINECHE ASMN 161.89 -51.58 ASHIMA LTD ASHM 63.23 -48.94 ATV PROJECTS ATV 48.47 -43.93 BELLARY STEELS BSAL 451.68 -108.50 BENZO PETRO INTL BPI 26.77 -1.05 BHAGHEERATHA ENG BGEL 22.65 -28.20 BLUE BIRD INDIA BIRD 122.02 -59.13 CELEBRITY FASHIO CFLI 24.96 -8.26 CHESLIND TEXTILE CTX 20.51 -0.03 CLASSIC DIAMONDS CLD 66.26 -6.84 COMPUTERSKILL CPS 14.90 -7.56 DCM FINANCIAL SE DCMFS 18.46 -9.46 DFL INFRASTRUCTU DLFI 42.74 -6.49 DIGJAM LTD DGJM 99.41 -22.59 DISH TV INDIA DITV 579.01 -28.55 DISH TV INDI-SLB DITV/S 579.01 -28.55 DUNCANS INDUS DAI 122.76 -227.05 ENSO SECUTRACK ENSO 15.57 -0.46 EURO CERAMICS EUCL 110.62 -6.83 EURO MULTIVISION EURO 36.94 -9.95 FERT & CHEM TRAV FCT 311.92 -35.19 GANESH BENZOPLST GBP 44.05 -15.48 GANGOTRI TEXTILE GNTX 54.67 -14.22 GOKAK TEXTILES L GTEX 46.36 -0.29 GOLDEN TOBACCO GTO 97.40 -18.24 GSL INDIA LTD GSL 29.86 -42.42 GSL NOVA PETROCH GSLN 16.53 -1.31 GUJARAT STATE FI GSF 10.26 -303.64 GUPTA SYNTHETICS GUSYN 44.18 -6.34 HARYANA STEEL HYSA 10.83 -5.91 HEALTHFORE TECHN HTEC 14.74 -46.64 HINDUSTAN ORGAN HOC 74.72 -24.07 HINDUSTAN PHOTO HPHT 49.58 -1,832.65 HMT LTD HMT 108.71 -572.12 ICDS ICDS 13.30 -6.17 INDAGE RESTAURAN IRL 15.11 -2.35 INTEGRAT FINANCE IFC 49.83 -51.32 JCT ELECTRONICS JCTE 80.08 -76.70 JENSON & NIC LTD JN 16.49 -71.70 JET AIRWAYS IND JETIN 3,368.77 -335.45 JET AIRWAYS -SLB JETIN/S 3,368.77 -335.45 JOG ENGINEERING VMJ 45.90 -5.28 KALYANPUR CEMENT KCEM 23.39 -42.66 KERALA AYURVEDA KERL 13.97 -1.69 KIDUJA INDIA KDJ 11.16 -3.43 KINGFISHER AIR KAIR 515.93 -2,371.26 KINGFISHER A-SLB KAIR/S 515.93 -2,371.26 KITPLY INDS LTD KIT 14.77 -58.78 KLG SYSTEL LTD KLGS 40.64 -27.37 LML LTD LML 43.95 -78.18 MADRAS FERTILIZE MDF 167.72 -56.20 MAHA RASHTRA APE MHAC 14.49 -12.96 MAHANAGAR TELE MTNL 4,845.41 -511.72 MAHANAGAR TE-SLB MTNL/S 4,845.41 -511.72 MALWA COTTON MCSM 44.14 -24.79 MILTON PLASTICS MILT 17.67 -51.22 MODERN DAIRIES MRD 38.61 -3.81 MOSER BAER INDIA MBI 727.13 -165.63 MOSER BAER -SLB MBI/S 727.13 -165.63 MTZ POLYFILMS LT TBE 31.94 -2.57 MURLI INDUSTRIES MRLI 262.39 -38.30 MYSORE PAPER MSPM 87.99 -8.12 NATL STAND INDI NTSD 22.09 -0.73 NAVCOM INDUS LTD NOP 10.19 -3.53 NICCO CORP LTD NICC 71.84 -4.91 NICCO UCO ALLIAN NICU 23.25 -83.90 NK INDUS LTD NKI 141.35 -7.71 NRC LTD NTRY 63.70 -53.01 NUCHEM LTD NUC 24.72 -1.60 PANCHMAHAL STEEL PMS 51.02 -0.33 PARAMOUNT COMM PRMC 124.96 -0.52 PARASRAMPUR SYN PPS 99.06 -307.14 PAREKH PLATINUM PKPL 61.08 -88.85 PIONEER DISTILLE PND 53.74 -5.62 PREMIER INDS LTD PRMI 11.61 -6.09 PRIYADARSHINI SP PYSM 20.80 -2.28 QUADRANT TELEVEN QDTV 150.43 -137.48 QUINTEGRA SOLUTI QSL 16.76 -17.45 RAMSARUP INDUSTR RAMI 433.89 -89.28 RATHI ISPAT LTD RTIS 44.56 -3.93 RELIANCE BROADCA RBN 86.97 -0.59 RELIANCE MEDIAWO RMW 425.22 -21.31 RELIANCE MED-SLB RMW/S 425.22 -21.31 RENOWNED AUTO PR RAP 14.12 -1.25 RMG ALLOY STEEL RMG 66.61 -12.99 ROLLATAINERS LTD RLT 22.97 -22.24 ROYAL CUSHION RCVP 14.70 -75.18 SAAG RR INFRA LT SAAG 12.54 -4.93 SADHANA NITRO SNC 16.74 -0.58 SANATHNAGAR ENTE SNEL 49.23 -6.78 SANCIA GLOBAL IN SGIL 78.82 -25.13 SBEC SUGAR LTD SBECS 92.44 -5.61 SCOOTERS INDIA SCTR 19.75 -13.35 SERVALAK PAP LTD SLPL 61.57 -7.63 SHAH ALLOYS LTD SA 168.13 -81.60 SHALIMAR WIRES SWRI 22.79 -27.18 SHAMKEN COTSYN SHC 23.13 -6.17 SHAMKEN MULTIFAB SHM 60.55 -13.26 SHAMKEN SPINNERS SSP 42.18 -16.76 SHREE GANESH FOR SGFO 44.50 -2.89 SHREE KRISHNA SHKP 14.62 -0.92 SHREE RAMA MULTI SRMT 38.90 -4.49 SIDDHARTHA TUBES SDT 75.90 -11.45 SIMBHAOLI SUGAR SBSM 268.76 -54.47 SITI CABLE NETWO SCNL 219.45 -9.68 SPICEJET LTD SJET 563.64 -41.19 SQL STAR INTL SQL 10.58 -3.28 STATE TRADING CO STC 826.29 -276.56 STELCO STRIPS STLS 14.90 -5.27 STI INDIA LTD STIB 21.69 -2.13 STL GLOBAL LTD SHGL 30.73 -5.62 STORE ONE RETAIL SORI 15.48 -59.09 SUPER FORGINGS SFS 14.62 -7.00 SURYA PHARMA SUPH 370.28 -9.97 TAMILNADU JAI TNJB 17.07 -1.00 TATA METALIKS TML 156.70 -5.36 TATA TELESERVICE TTLS 1,311.30 -138.25 TATA TELE-SLB TTLS/S 1,311.30 -138.25 TODAYS WRITING TWPL 18.58 -25.67 TRIUMPH INTL OXIF 58.46 -14.18 TRIVENI GLASS TRSG 19.71 -10.45 TUTICORIN ALKALI TACF 19.86 -19.58 UDAIPUR CEMENT W UCW 11.38 -10.53 UNIFLEX CABLES UFCZ 47.46 -7.49 UNIWORTH LTD WW 149.50 -151.14 UNIWORTH TEXTILE FBW 22.54 -35.03 USHA INDIA LTD USHA 12.06 -54.51 VANASTHALI TEXT VTI 14.59 -5.80 VENUS SUGAR LTD VS 11.06 -1.08 WANBURY LTD WANB 141.86 -3.91 JAPAN FLIGHT HOLDINGS 3753 10.10 -2.62 GOYO FOODS INDUS 2230 11.79 -1.51 HARAKOSAN CO 8894 186.55 -8.07 IDEA INTERNATION 3140 23.66 -0.08 KANMONKAI CO LTD 3372 42.64 -0.81 KOREA DVS KOREA CO LTD 46400 17.40 -1.20 ORIENTAL PRECISI 14940 224.92 -79.83 ROCKET ELEC-PFD 425 111.09 -0.42 ROCKET ELECTRIC 420 111.09 -0.42 SHINIL ENG CO 14350 199.04 -2.53 SSANGYONG ENGINE 12650 1,231.13 -119.47 STX OFFSHORE & S 67250 7,627.42 -1,124.38 TEC & CO 8900 139.98 -16.61 TONGYANG NETWORK 30790 311.91 -36.46 WOONGJIN HOLDING 16880 2,197.34 -635.50 MALAYSIA HAISAN RESOURCES HRB 41.31 -11.54 HIGH-5 CONGLOMER HIGH 41.63 -34.19 HO HUP CONSTR CO HO 59.28 -16.64 PETROL ONE RESOU PORB 51.39 -4.00 SUMATEC RESOURCE SMTC 169.12 -26.18 VTI VINTAGE BHD VTI 17.74 -3.63 NEW ZEALAND NZF GROUP LTD NZF NZ Equity 11.69 -4.60 PULSE ENERGY LTD PLE NZ Equity 11.29 -3.44 PHILIPPINES CYBER BAY CORP CYBR 14.14 -21.59 FIL ESTATE CORP FC 40.90 -15.77 FILSYN CORP A FYN 23.11 -11.69 FILSYN CORP. B FYNB 23.11 -11.69 GOTESCO LAND-A GO 21.76 -19.21 GOTESCO LAND-B GOB 21.76 -19.21 LIBERTY TELECOMS LIB 108.53 -19.42 MRC ALLIED INC MRC 27.06 -2.56 PICOP RESOURCES PCP 105.66 -23.33 STENIEL MFG STN 21.07 -11.96 UNIWIDE HOLDINGS UW 50.36 -57.19 SINGAPORE ADVANCE SCT LTD ASCT 19.68 -22.46 CEFC INTL LTD SUNE 95.25 -0.31 HL GLOBAL ENTERP HLGE 83.11 -4.63 IGG INC 8002 21.53 -55.84 SCIGEN LTD-CUFS SIE 68.70 -42.35 SUNMOON FOOD COM SMOON 20.26 -17.36 TT INTERNATIONAL TTI 298.35 -82.84 UNITED FIBER SYS UFS 65.52 -56.60 THAILAND ABICO HLDGS-F ABICO/F 15.28 -4.40 ABICO HOLDINGS ABICO 15.28 -4.40 ABICO HOLD-NVDR ABICO-R 15.28 -4.40 ASCON CONSTR-NVD ASCON-R 59.78 -3.37 ASCON CONSTRUCT ASCON 59.78 -3.37 ASCON CONSTRU-FO ASCON/F 59.78 -3.37 BANGKOK RUBBER BRC 77.91 -114.37 BANGKOK RUBBER-F BRC/F 77.91 -114.37 BANGKOK RUB-NVDR BRC-R 77.91 -114.37 CALIFORNIA W-NVD CAWOW-R 28.07 -11.94 CALIFORNIA WO-FO CAWOW/F 28.07 -11.94 CALIFORNIA WOW X CAWOW 28.07 -11.94 CIRCUIT ELEC PCL CIRKIT 16.79 -96.30 CIRCUIT ELEC-FRN CIRKIT/F 16.79 -96.30 CIRCUIT ELE-NVDR CIRKIT-R 16.79 -96.30 DATAMAT PCL DTM 12.69 -6.13 DATAMAT PCL-NVDR DTM-R 12.69 -6.13 DATAMAT PLC-F DTM/F 12.69 -6.13 ITV PCL ITV 36.02 -121.94 ITV PCL-FOREIGN ITV/F 36.02 -121.94 ITV PCL-NVDR ITV-R 36.02 -121.94 K-TECH CONSTRUCT KTECH 38.87 -46.47 K-TECH CONSTRUCT KTECH/F 38.87 -46.47 K-TECH CONTRU-R KTECH-R 38.87 -46.47 KUANG PEI SAN POMPUI 17.70 -12.74 KUANG PEI SAN-F POMPUI/F 17.70 -12.74 KUANG PEI-NVDR POMPUI-R 17.70 -12.74 MANGPONG 1989 PC MPG 11.83 -0.91 MANGPONG 1989 PC MPG/F 11.83 -0.91 MANGPONG 19-NVDR MPG-R 11.83 -0.91 PATKOL PCL PATKL 52.89 -30.64 PATKOL PCL-FORGN PATKL/F 52.89 -30.64 PATKOL PCL-NVDR PATKL-R 52.89 -30.64 PICNIC CORP-NVDR PICNI-R 101.18 -175.61 PICNIC CORPORATI PICNI 101.18 -175.61 PICNIC CORPORATI PICNI/F 101.18 -175.61 SAHAMITR PRESS-F SMPC/F 27.92 -1.48 SAHAMITR PRESSUR SMPC 27.92 -1.48 SAHAMITR PR-NVDR SMPC-R 27.92 -1.48 SHUN THAI RUBBER STHAI 19.89 -0.59 SHUN THAI RUBB-F STHAI/F 19.89 -0.59 SHUN THAI RUBB-N STHAI-R 19.89 -0.59 SUNWOOD INDS PCL SUN 19.86 -13.03 SUNWOOD INDS-F SUN/F 19.86 -13.03 SUNWOOD INDS-NVD SUN-R 19.86 -13.03 TONGKAH HARBOU-F THL/F 62.30 -1.84 TONGKAH HARBOUR THL 62.30 -1.84 TONGKAH HAR-NVDR THL-R 62.30 -1.84 TRANG SEAFOOD TRS 15.18 -6.61 TRANG SEAFOOD-F TRS/F 15.18 -6.61 TRANG SFD-NVDR TRS-R 15.18 -6.61 TT&T PCL TTNT 589.80 -223.22 TT&T PCL-NVDR TTNT-R 589.80 -223.22 TT&T PUBLIC CO-F TTNT/F 589.80 -223.22 WORLD CORP -NVDR WORLD-R 15.72 -10.10 WORLD CORP PCL WORLD 15.72 -10.10 WORLD CORP PLC-F WORLD/F 15.72 -10.10 TAIWAN BEHAVIOR TECH CO 2341S 30.90 -0.22 BEHAVIOR TECH-EC 2341O 30.90 -0.22 HELIX TECH-EC 2479T 23.39 -24.12 HELIX TECH-EC IS 2479U 23.39 -24.12 HELIX TECHNOL-EC 2479S 23.39 -24.12 POWERCHIP SEM-EC 5346S 2,036.01 -52.74 TAIWAN KOL-E CRT 1606U 507.21 -147.14 TAIWAN KOLIN-EN 1606V 507.21 -147.14 TAIWAN KOLIN-ENT 1606W 507.21 -147.14 ********* 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 ***