/raid1/www/Hosts/bankrupt/TCRAP_Public/140603.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Tuesday, June 3, 2014, Vol. 17, No. 109
Headlines
A U S T R A L I A
DSI HOLDINGS: To Close Permanently; 140 Workers to Lose Jobs
OCTAVIAR LIMITED: KordaMentha's Mark Korda Under Fire on Advice
RM WILLIAMS: News Denied Up to AUD40MM Lifeline to Cattle Firm
* AUSTRALIA: Orchard Value Crashes by More Than 40%
B A N G L A D E S H
BANGLADESH: S&P Affirms 'BB-' Rating; Outlook Stable
C H I N A
CHINA MINZHONG: S&P Affirms and Withdraws 'BB-' LT CCR
LONGFOR PROPERTIES: Moody's Rates RMB2BB Sr. Unsec. Notes 'Ba2'
I N D I A
AERO CANS: CRISIL Reaffirms 'D' Rating on INR200MM Loans
AGARWAL EDUCATION: CARE Places 'B' Rating on INR6.93cr Bank Loan
AHUJA AND ANAND: CARE Puts 'D' Rating on INR54.37cr Bank Loan
AMBICA IRON: CRISIL Assigns 'B+' Rating to INR60MM Loans
BAHUBALI MOTORS: CRISIL Rates INR100MM Cash Credit at 'B'
BAJARI FILAMENTS: ICRA Suspends 'B' Rating on INR9.2cr Loan
BHADORA INDUSTRIES: ICRA Assigns 'B' Rating to INR3.70cr Loan
CHINAR SYNTEX: CRISIL Reaffirms 'B+' Rating on INR180MM Loan
DEVAS ENGINEERING: CRISIL Assigns 'B-' Rating to INR150MM Loans
G.L. JAIN: ICRA Suspends 'B+' Rating on INR6cr Cash Credit
INDIAN BANK: S&P Withdraws Issue Ratings Under US$1BB MTN Program
JAYAN SRI: ICRA Assigns 'B' Rating to INR6cr Loan
JYOTI VINCOM: CRISIL Assigns 'B-' Rating to INR198.2MM Loans
KANAK AGROPIPES: ICRA Downgrades Rating on INR9cr Loans to 'D'
KANAKA INFRATECH: ICRA Suspends 'D' Ratings on INR61.72cr Loans
KANSAL OVERSEAS: CRISIL Assigns 'B' Rating to INR55MM Loans
KTC AUTOMOBILES: CRISIL Reaffirms 'B-' Rating on INR218.5MM Loans
LIVA CERAMICS: ICRA Reaffirms 'B+' Rating on INR9cr Loans
MOGAVEERA VYAVASTHAPAK: ICRA Suspends 'B+' Rating on INR10cr Loan
MOHAK CARPETS: CARE Assigns 'D' Rating to INR36.92cr Loans
P. R. STEELS: CRISIL Reaffirms 'B' Rating on INR65MM Loans
PATNAIK STEELS: CRISIL Raises Rating on INR1.36BB Loans to 'B-'
PYOGINAM: CRISIL Reaffirms 'B+' Rating on INR40.5MM Loan
RADIANT UDYOG: CRISIL Reaffirms 'D' Rating on INR50MM Loans
RAM SAROOP: ICRA Assigns 'B' Rating to INR7.50cr Loans
RNB INTERNATIONAL: ICRA Reaffirms B+ Rating on INR11cr Loans
RUSHI COTTEX: ICRA Assigns 'B+' Rating to INR20cr Loans
S.R. OVERSEAS: CRISIL Assigns 'B' Rating to INR190MM Loans
SAURASHTRA JINNING: CRISIL Assigns 'B' Rating to INR90MM Loans
SIDDHI TEXCHEM: CARE Downgrades Rating on INR11.71cr Loan to 'D'
SREE VISHNU: ICRA Lowers Rating on INR12cr Loan to 'D'
SURYAAMBA SPINNING: CRISIL Cuts Rating on INR300.7MM Loans to D
TAMIL NADU: ICRA Withdraws 'D' Rating on INR5000cr Loan
TIJIYA STEEL: CRISIL Reaffirms 'B' Rating on INR120MM Loan
UNIVERSAL COATINGS: CRISIL Reaffirms 'B' Rating on INR55MM Loan
UNIVERSAL CONVERTERS: CRISIL Reaffirms B Rating on INR69MM Loan
UTTAR PRADESH: Board Opts to Voluntarily Close Stock Exchange
VASANTHA RICE: CRISIL Reaffirms 'B' Rating on INR61.5MM Loans
VITAGREEN PRODUCTS: CRISIL Reaffirms 'B-' Rating on INR50MM Loans
VL RAKA: CRISIL Reaffirms 'B+' Rating on INR90MM Loans
WELLWISHER TREXIM: CRISIL Assigns 'B' Rating to INR200MM Loans
ZUBERI ENGINEERING: CRISIL Cuts Rating on INR80MM Loan to 'B+'
J A P A N
SURUGAYA COMPANY: Closes After 553 Years in Business
T H A I L A N D
KRUNG THAI: Fitch Affirms 'B' Rating on Hybrid Tier 1 Securities
X X X X X X X X
* BOND PRICING: For the Week May 26 to May 30, 2014
- - - - -
=================
A U S T R A L I A
=================
DSI HOLDINGS: To Close Permanently; 140 Workers to Lose Jobs
------------------------------------------------------------
Steve Smith at The Border Mail reports that DSI Holdings will
close permanently by the end of October, resulting in the loss of
more than 140 jobs.
According to the report, DSI International said in a statement
that the board of DSI Holdings Pty Limited "has decided to cease
its automotive manufacturing operations in Australia effective on
or around October 31, 2014 depending on conclusion of current
supply contracts."
DSI Holdings, once one of the Border's major employers in its
former guises as Borg Warner, Ion and BTR, has seen a steady
decline in recent years, the report says.
The Kaitlers Road site presently employs 142 permanent workers,
The Border Mail discloses.
The report notes that the plant's Chinese owners, Geely
Automotive, had a contract to supply gearboxes to SsangYong until
the end of October.
"This decision is taken with deep regret but unfortunately it is
no longer viable for DSIH to manufacture in Australia as has also
been evidenced by the recent announcements of Holden and Toyota
that they will cease manufacturing in Australia," the statement,
as cited by The Border Mail, said.
"DSIH has taken some time to consider all other alternatives and
has not been able to find a workable solution.
"DSIH recognises the impact of this decision on our employees and
the local community of Albury-Wodonga and as such we intend to
work with all employees and the union to ensure that all of our
employees are supported throughout this transition process.
"DSIH will ensure that all redundancy and other entitlements are
paid in accordance with the applicable enterprise agreement."
DSI is expected to keep a research and development presence at the
existing engineering site at Springvale, the report adds.
DSI Holdings is a gearbox manufacturer based in Australia.
OCTAVIAR LIMITED: KordaMentha's Mark Korda Under Fire on Advice
---------------------------------------------------------------
Ben Butler at The Sydney Morning Herald reports that one of
Australia's best-known insolvency practitioners, KordaMentha
partner Mark Korda, has been accused of giving substandard advice
to failed investment group Octaviar in the run-up to its collapse
in September 2008.
In a lawsuit filed with the Queensland Supreme Court, the
liquidators of two companies in the Octaviar group accuse
KordaMentha's advisory arm, 333 Capital, of breach of duty and
misleading or deceptive conduct, the report says.
SMH relates that the claim is based on advice given by Mr. Korda
to directors of Octaviar, formerly known as MFS, at a series of
board meetings from late January 2008.
333 Capital has yet to file a defence but a spokesman said the
claim was "ludicrous and would be a waste of the liquidators' and
creditors' time and resources if it proceeded," according to SMH.
SMH says the case against 333 Capital was lodged in January by
Ferrier Hodgson, which is liquidating Octaviar Investment Notes
and Octaviar Investment Bonds, two Octaviar companies that raised
money for the group.
It is alleged 333 Capital started providing advice to Octaviar on
January 22, when Mr. Korda and fellow KordaMentha partner Mark
Mentha met members of the board including chief financial officer
David Anderson, Rolf Krecklenberg, who headed tourism arm Stella,
and Craig White, who had replaced founder Michael King as chief
executive, the report recalls.
This allegedly was followed immediately by a full board meeting
where Mr. Korda and Mr. Mentha outlined a proposal to sell Stella
and restructure Octaviar, SMH relates.
According to SMH, Ferrier Hodgson alleged that by this time
Octaviar was already insolvent due to a cash-flow crisis and its
failure to pay a $60 million tax bill.
It is alleged Mr. Korda failed to tell the board the company was
insolvent at 21 board meetings between January 22 and July 15, the
report relays.
SMH notes that in addition to attending board meetings, 333
Capital allegedly also ran a project called "Cash is King", which
was supposed to monitor the cash flow of the group, help the
company sell off assets, meet the corporate regulator and take
part in a daily phone call with Octaviar's lawyers, Freehills.
SMH relates that Ferrier Hodgson said Octaviar would have gone
into administration earlier but for 333 Capital's advice, reducing
the loss to investors in company notes and bonds. 333 Capital's
spokesman said the claim had been filed but not served,
"presumably in order to avoid the deadline under the
Statute of limitations," the report adds.
As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 15, 2008, Octaviar Limited appointed John Greig and
Nicholas Harwood of Deloitte as Voluntary Administrators. The
directors of three Octaviar subsidiaries, Octaviar Financial
Services Pty Ltd, Octaviar Investment Notes Limited and Octaviar
Investment Bonds Limited, also appointed Messrs. Greig and
Harwood as Voluntary Administrators. Fortress Credit Corporation
(Australia) II Pty Ltd., one of Octaviar Limited's major
creditors, also appointed Stephen James Parbery and Anthony
Milton Sims of PPB Advisory as receivers and managers for
Octaviar.
In December 2008, Octaviar's creditors voted for a deed of
company arrangement over two entities in the Octaviar group,
Octaviar Limited, and Octaviar Administration Pty Limited. The
three other companies in the group were subsequently wound up.
The TCR-AP reported on Aug. 4, 2009, that the Supreme Court of
Queensland placed Octaviar Ltd into liquidation. Justice
Philip McMurdo terminated a deed of company arrangement that has
been in place since December 2008, naming company administrators
John Greig and Nick Harwood at Deloitte, as provisional
liquidators.
Administrators and liquidators Greig and Harwood at Deloitte were
then replaced by Bentleys Corporate Recovery under court order.
According to The Age, creditors are yet to recover about
AUD2.5 billion from the Group, which was found to have
AUD1 billion in intercompany loans.
RM WILLIAMS: News Denied Up to AUD40MM Lifeline to Cattle Firm
--------------------------------------------------------------
The Australian reports that former News Corp executive Ken Cowley
asked the media company for a cash injection of AUD30 million to
AUD40 million to provide a lifeline for his carbon farming and
cattle company ahead of the business being placed in receivership.
The Australian relates that Mr. Cowley, who on June 1 distanced
himself from an interview with Fairfax Media's Australian
Financial Review in which he attacks News, also asked News non-
executive co-chairman Lachlan Murdoch to join the board of RM
Williams Agricultural Holdings.
It's understood Mr. Murdoch declined the offer and also advised
against News making the investment, the report relays. After
Mr. Cowley's approach, RM Williams Agricultural Holdings appointed
administrators, owing Westpac AUD60 million, the report notes.
According to the report, the company ran into trouble after paying
over the odds for a cattle station in central Australia. Mr.
Cowley is the company's chairman and chief shareholder. The
financial problems did not affect a separate RM Williams entity, a
fashion and boot retailer mentioned in the AFR interview.
Mr. Cowley said he believed the interview would be about the
fashion brand, but the article gave prominence to an attack on
Mr. Murdoch, News's financial performance and other executives.
Mr. Cowley has since retracted the allegations, claiming he was
"misquoted". In the profile, AFR journalist Anne Hyland did not
mention that Mr. Cowley left News the year before the founding of
Google, one of the most disruptive forces in the media industry
since the invention of the printing press.
Ms. Hyland also claims Mr. Cowley called into question Mr.
Murdoch's business acumen and believes he "shouldn't be anointed
to lead News Corporation and 21st Century Fox". But she omits from
her piece Mr. Cowley's role as the architect of News's disastrous
-- attempt to create a rugby super league in the 1990s, a mess Mr.
Murdoch cleaned up following an expensive court case.
Mr. Stephen Parbery and Mr. Greg Quinn of PPB Advisory were
appointed to Labelle Welltree Pty Ltd (formerly R. M. Williams
Agricultural Co. Beef Pty Ltd) on July 15, 2013.
R.M. Williams Agricultural Holdings Pty Ltd. engages in food
production, alternative energy solutions, sustainable land
management, and land restoration programs.
* AUSTRALIA: Orchard Value Crashes by More Than 40%
---------------------------------------------------
Duncan Hughes at the North Queensland Register reports that
orchardists said the value of their properties has plunged by more
than 40 per cent because of rising costs, falling prices, imported
fruit flooding the market and the impact of the high dollar on
exports.
Falling property values and rising debts are pushing up loan-to-
value ratios, forcing many farmers to breach lending covenants or
sell, the Register relates.
The Register says farmers are also fighting major retailing
outlets, alleging predatory pricing by oligopoly retailers is
squeezing profit margins without benefiting consumers.
According to the report, Peter Darley, chairman of the NSW
horticultural committee of the NSW Farmers Association, said it
was affecting farmers on the eastern seaboard from Stanthorpe, in
Queensland, to Victoria's Goulbourn Valley.
"The horticultural [sector] is facing very, very difficult times,"
the report quotes Mr. Darley as saying.
The Register relates that veteran real estate agents, such as Don
Wright, from McCarron Cullinane, said many orchards are now worth
only their land value, which is the land less the value of
clearing the orchards.
He said buyers were nervous, despite record low interest rates, a
weakening dollar and booming residential prices in major capitals,
the Register reports citing The Australian Financial Review.
Local sales, such as Doocarrick, near Orange, included a
homestead, a 44-hectare orchard with 25,000 trees, and a large
shed complex with automated grading and packing machines. It was
likely to sell for up to AUD3 million, but interest was slow, Mr.
Wright, as cited by the Register, added.
Cattle farmers across the north of Australia, wheat farmers in
Western Australia, dairy farmers in Victoria, horticulturalists in
central NSW, northern Victoria and southern Queensland faced
unprecedented debt levels and forced sales, the report adds.
===================
B A N G L A D E S H
===================
BANGLADESH: S&P Affirms 'BB-' Rating; Outlook Stable
----------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-' long-term
and 'B' short-term sovereign credit ratings on the People's
Republic of Bangladesh. The outlook is stable. The transfer and
convertibility (T&C) assessment remains 'BB-'.
RATIONALE
The ratings on Bangladesh reflect the country's low economic
development and limited fiscal flexibility owing to a combination
of constrained revenue generation capacity, significant shortage
of basic infrastructure and government services, and extensive
subsidies. The country's volatile political setting combined with
administrative, governance, and institutional weaknesses represent
additional rating constraints. These factors are weighed against
a strengthening external profile, which draws support from
substantial donor and multilateral engagement.
Low economic development, as represented by per capita GDP of
US$967 (2014), is Bangladesh's main rating constraint. This
income level affords a weak and narrow revenue base, in turn
limiting the fiscal and monetary flexibility needed to respond to
changes in fiscal conditions or exogenous shocks. In addition,
Bangladesh's real per capita GDP growth of about 5% is below that
usually associated with this income level, reflecting numerous
structural impediments to growth, in particular the shortage of
electricity. These weaknesses are tempered somewhat by a track
record of resilient growth with minimal fluctuation.
The scarcity of fiscal resources and resulting public under-
investment is manifested in pervasive energy and infrastructure
deficiencies. These factors, combined with administrative and
bureaucratic weaknesses, prevent Bangladesh from achieving a
higher trend growth. The difficult investment environment is
reflected in persistently low direct investments.
Bangladesh's volatile domestic political conditions detract from
legislative efficiency and harbor the potential for conflict.
Periodic flare-ups in instability and associated economic
disruption along with an underlying weak institutional and
governance setting deter investment and constrain growth.
Bangladesh's narrow revenue base offers the government limited
flexibility to mitigate the effect of economic downturns or other
shocks, and to restore fiscal balance. Many basic social and
infrastructure needs remain unmet, further limiting the
government's maneuverability. In addition, the resultant
government borrowings often draw excessively on the domestic
banking sector, and close to half the total government debt is
denominated in foreign currency. However, the availability of
official concessional funding tempers these negative effects.
Bangladesh's revenue profile is one of the weakest among its
peers, with only about 2 million registered taxpayers and a tax-
to-GDP ratio of 10.5%. Nevertheless, numerous administrative
initiatives are underway to expand the revenue base.
On the expenditure side, high interest expense at approximately
17% of general government revenues and various subsidies amounting
to about 3% of GDP further limit fiscal flexibility. S&P expects
the overall subsidy burden will remain substantial in the absence
of an automatic tariff-adjustment mechanism for fuel and
electricity, together with the prevalence of fertilizer and export
subsidies.
Bangladesh's strong external liquidity position and declining
external leverage support the ratings. Remittance inflows
averaging 11% of GDP over the past three years and an
internationally competitive garment export sector generally ensure
current account surpluses. Foreign exchange reserves (as of end
April) stood at US$20.4 billion, equivalent to an estimated 5.5
months of current account payments. S&P expects Bangladesh's
gross external financing needs to remain below 80% of current
account receipts plus usable reserves over 2014-2017, indicating a
comfortable external liquidity position.
The past two years' significant reserve accumulation lowered
narrow net external debt to a projected 12% of current account
receipts for 2014. S&P expects reserve accumulation in the
forecast period (2014-2017) to moderate substantially as lower
remittance flows combine with stronger imports to decrease the
current account surplus. Nonetheless, S&P expects external
balance and liquidity to remain credit-supporting factors.
Bangladesh's external profile draws significant support from
substantial donor support, ensuring that the overwhelming portion
of public external debt is made up of low-cost borrowings with
long maturity. Additionally, donors and multilateral lenders
condition policy formulation and provide direct budgetary support.
OUTLOOK
The stable outlook reflects S&P's expectation that Bangladesh's
moderately strong growth and donor support will endure, raising
per capita wealth, and aiding the gradual strengthening of the
country's external profile. These factors are balanced against
lingering fiscal weaknesses, infrastructure deficiencies, and
inflation risks.
S&P could raise the ratings if measures aimed at expanding the
revenue base and boosting collection efficiency materially
improves fiscal performance. S&P could also upgrade Bangladesh if
the government materially reduces energy, infrastructure, and
administrative bottlenecks and boosts investment, leading to a
durable increase in trend real per capita GDP growth.
Conversely, S&P could downgrade the sovereign if fiscal slippages
result in rising public debt and external donor support declines
materially. S&P could also lower the ratings if Bangladesh
deviates substantially from the policies required under the
International Monetary Fund's Extended Credit Facility program, or
significant economic underperformance arrests the gradual
improvement in per capita income and GDP falls further behind its
peers'.
In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable. At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee by
the primary analyst had been distributed in a timely manner and
was sufficient for Committee members to make an informed decision.
After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts. The chair
ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision.
The views and the decision of the rating committee are summarized
in the above rationale and outlook.
RATINGS LIST
Ratings Affirmed
Bangladesh (People's Republic of)
Sovereign Credit Rating BB-/Stable/B
=========
C H I N A
=========
CHINA MINZHONG: S&P Affirms and Withdraws 'BB-' LT CCR
------------------------------------------------------
Standard & Poor's Ratings Services said that it had affirmed its
'BB-' long-term corporate credit rating and 'cnBB+' Greater China
regional scale rating on China-based agriculture company China
Minzhong Food Corp. Ltd. (Minzhong). S&P then withdrew the
ratings at the company's request. The outlook was stable at the
time of the withdrawal.
S&P assessed Minzhong's business risk profile as "weak," primarily
because of the company's small size relative to rated peers, and
its significant revenue from a single production facility.
Minzhong's established market position and good operating
efficiency tempered these weaknesses. S&P assessed the company's
financial risk profile as "modest" based on its expectation that
the company would maintain its low leverage and generate stable
cash flows.
The ratings also reflected a one-notch negative adjustment for
Minzhong's "financial policy" to reflect the company's tolerance
for higher leverage and its likely higher dividend payout. S&P
viewed the financial policy of Minzhong's parent PT Indofood
Sukses Makmur Tbk. as more aggressive than that of Minzhong. S&P
also made a one-notch negative adjustment because of Minzhong's
"comparable rating analysis" to reflect its view of the company's
small scale and limited business diversity compared with peers
that S&P rates.
The stable outlook at the time of the withdrawal reflected S&P's
opinion that Minzhong would maintain its financial position, which
would provide sufficient buffer for the company to meet its
working capital and capacity expansion needs.
LONGFOR PROPERTIES: Moody's Rates RMB2BB Sr. Unsec. Notes 'Ba2'
---------------------------------------------------------------
Moody's Investors Service, has assigned a definitive Ba2 rating to
Longfor Properties Co Ltd's RMB2 billion, 6.75%, 4-year senior
unsecured notes, due 28 May 2018.
The rating outlook is stable.
Ratings Rationale
Moody's definitive rating on this debt obligation follows
Longfor's completion of its RMB bond issuance, the final terms and
conditions of which are consistent with Moody's expectations.
The provisional rating was assigned on 21 May, and Moody's ratings
rationale was set out in a press release published on the same
day.
The proceeds from the bond issuance will be used for general
corporate purposes and debt refinancing.
The principal methodology used in this rating was the Global
Homebuilding Industry, published in March 2009.
Longfor Properties Co Ltd is one of the leading developers in
China's residential and commercial property development sector.
Founded in 1994, the company began its business in Chongqing and
has since established a leading brand name in the municipality.
As of end-2013, it had an attributable land bank of 35.8 million
square meters in gross floor area, spanning 21 cities in five
major regions in China.
=========
I N D I A
=========
AERO CANS: CRISIL Reaffirms 'D' Rating on INR200MM Loans
--------------------------------------------------------
CRISIL ratings on the bank loan facilities of Aero Cans India Pvt
Ltd continue to reflect the instances of delays by ACIPL in
servicing its term debt; the delays are because of the company's
operating losses and weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 10 CRISIL D (Reaffirmed)
Proposed Long Term
Bank Loan Facility 20 CRISIL D (Reaffirmed)
Long Term Loan 150 CRISIL D (Reaffirmed)
Cash Credit 20 CRISIL D (Reaffirmed)
ACIPL is also exposed to risks associated with stabilisation of
its recently set up facilities and offtake by potential customers.
However, the company benefits from its promoters' established
industry experience in the complementary business of perfumes and
toiletries.
Update
ACIPL's business risk profile continues to be weak because of the
company's initial stages of operations and intense industry
competition. Its capacity utilisation has been low, estimated at
about 50 per cent for 2013-14 (refers to financial year, April 1
to March 31). The company's estimated revenue is at INR120 million
for 2013-14, while its cash accruals are estimated to have been
negative. The company is estimated to have had high debtors of 80
days, primarily because of the credit period extended to its
overseas customers, and moderate inventory of 45 days as on March
31, 2014. CRISIL believes that stabilisation of recently set up
facilities and offtake by potential customers will remain the key
parameters for ACIPL's business risk profile to improve over the
medium term.
ACIPL's financial risk profile is weak marked by moderate gearing
and weak debt protection metrics. The company's gearing is
estimated at 2.9 times as on March 31, 2014 because of a small net
worth, initial debt-funded project, and high reliance on bank
borrowings for its working capital requirements. ACIPL's interest
coverage ratio is estimated at less than 1 time for 2013-14. Its
liquidity is stretched, marked by full utilisation of cash credit
facilities as well as overdrawn bank limits and delays in payments
of term debt obligations. CRISIL believes that ACIPL's liquidity
will remain stretched over the medium term. However, the promoters
continue to support the operations through regular infusion of
equity and unsecured loans. The promoters have brought in funds of
INR120 million in 2013-14.
ACIPL was set up by Mr. Danesh Sayani and Mr. Yasin Sayani in
April 2011 to manufacture aerosol cans. Its commercial operations
started in January 2013. It has its manufacturing facility in
Satara (Maharashtra).
ACIPL reported a net loss of INR7 million on net sales of INR11
million for 2012-13.
AGARWAL EDUCATION: CARE Places 'B' Rating on INR6.93cr Bank Loan
----------------------------------------------------------------
CARE assigns 'CARE B' rating to bank facilities of Agarwal
Education And Research Society.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 6.93 CARE B Assigned
Rating Rationale
The rating is primarily constrained on account of the short track
record of operations of Agarwal Education and Research Society and
its financial risk profile marked by cash losses in FY13 (refers
to the period April 1 to March 31), stressed liquidity position
and weak solvency position. The rating is further constrained on
account of its presence in the highly fragmented and regulated
education industry and ongoing project implementation risk.
The rating, however, derives strength from the qualified
management with adequate infrastructure facilities in its
institute.
The ability of AERS to increase its scale of operations through
improvement in enrolment with improvement in profitability and the
timely completion of the project within envisaged cost parameters
are the key rating sensitivities.
Jaipur-based (Rajasthan) AERS is registered as a society in 2010
with an objective to impart education. AERS is promoted and
managed by Mr Ramesh Kumar Agarwal along with his family members.
It runs an institute named Advait Vedanta Institute of Technology
(ADVED) spread over the 20 acres of land area at Jaipur. ADVED
offers degree courses of engineering at a graduate level in the
field of Civil Engineering, Mechanical Engineering, Electrical
Engineering, Electronics and Communication Engineering and
Computer Science and Polytechnic Diploma in the field of Civil
Engineering and Mechanical Engineering. The institute is
affiliated with Rajasthan Technical University (RTU), Kota and the
Board of Technical Education (BTE), Rajasthan and approved by All
India Council of Technical Education (AICTE), Directorate of
Technical Education (Rajasthan) & BTE (Rajasthan).
During FY13, AERS reported a total income of INR0.94 crore with a
net loss of INR1.31 crore. As per the provisional result of FY14,
AERS has achieved a TOI of INR4 crore.
AHUJA AND ANAND: CARE Puts 'D' Rating on INR54.37cr Bank Loan
-------------------------------------------------------------
CARE assigns 'CARE D' rating to the long-term bank facilities of
Ahuja And Anand Buildwell Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 54.37 CARE D Assigned
Rating Rationale
The rating assigned to the bank facilities of Ahuja and Anand
Buildwell Private Limited factors in the ongoing delays in debt
servicing on account of the constrained liquidity position of the
company attributable to more than anticipated time taken for the
completion of mall.
Ahuja and Anand Buildwell Private Limited was incorporated on
August 20, 2006 for the development of a commercial project 'World
Square Mall' in Mohan Nagar, Ghaziabad. The company is closely
held and is owned by Mr. Prem Bhutani along with his family
members and associates. Till March 31, 2014, the promoters have
developed a saleable area of 2.43 lakh square feet (lsf).
The company has obtained the completion certificate for the mall
from the Ghaziabad Development Authority. Currently, internal
finishing/ fit-out works are in-progress and the company is
expected to launch the mall in Q2FY14 (refers to the period
July 1, 2014 to September 30, 2014).
AMBICA IRON: CRISIL Assigns 'B+' Rating to INR60MM Loans
--------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank loan
facilities of Ambica Iron and Steel Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 50 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 10 CRISIL B+/Stable
The rating reflects AISPL's modest scale of operations in the
fragmented and competitive steel industry and its below-average
financial risk profile, marked by high gearing. These rating
weaknesses are partially offset by the extensive experience of the
promoters in the steel industry.
Outlook: Stable
CRISIL believes that AISPL will continue to benefit from its
promoters' extensive experience in the iron and steel industry
over the medium term. The outlook may be revised to 'Positive' if
AISPL improves its scale of operations and profitability, or
better capital structure leading to improvement in its financial
risk profile. Conversely, the outlook may be revised to 'Negative'
in case AISPL's financial risk profile, particularly liquidity,
weakens because of a stretch in its working capital cycle, low
cash accruals, or it undertakes any considerably large debt-funded
capital expenditure programme.
Incorporated in 1982, AISPL is into manufacturing of structured
steel products such as rounds, channels, angles, bars and others.
The company has its manufacturing facility in Rourkela (Odisha).
The day-to-day operations of the company are being managed by Mr.
Kaur Sain Bansal, Mr. Sanjay Bansal and Mr. Akhil Gupta.
BAHUBALI MOTORS: CRISIL Rates INR100MM Cash Credit at 'B'
---------------------------------------------------------
CRISIL has assigned its ' CRISIL B/Stable ' rating to the long-
term bank facilities of Bahubali Motors Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 100 CRISIL B/Stable
The rating reflects BMPL's below-average financial risk profile,
marked by stretched liquidity, leveraged capital structure and
average interest coverage ratio. The rating also reflects BMPL's
modest scale of operations in the intensely competitive automobile
dealership industry. These rating weaknesses are partially offset
by the extensive experience of the company's promoters in the
automobile dealership business and funding support it receives
from them.
Outlook: Stable
CRISIL believes that BMPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the company's financial
risk profile, particularly the liquidity, improves significantly
most likely because of a substantial increase in its cash accruals
or equity infusion. Conversely, the outlook may be revised to
'Negative' if BMPL reports lower-than-expected cash accruals, on
account of a decline in its sales or operating profitability, or
if its working capital cycle weakens further, or if it undertakes
any debt-funded capital expenditure programme, leading to further
pressure in its liquidity.
BMPL was incorporated in 1959 as a partnership firm and was later
reconstituted as company in 2005. The company is a dealer of Tata
Motors Ltd. (TML) (CRISIL AA/Stable/CRISIL A1+) in Raipur district
since 2000. The company is held by Mr. Hiralal Shah and family.
BAJARI FILAMENTS: ICRA Suspends 'B' Rating on INR9.2cr Loan
-----------------------------------------------------------
ICRA has suspended '[ICRA]B' and '[ICRA]A4' ratings assigned to
the INR9.20 crore of fund based and non fund based limits of
Bajari Filaments Private Limited. The suspension follows ICRA's
inability to carry out a rating surveillance in the absence of the
requisite information from the company.
Established in 1996, Bajari Filaments Private Limited (BFPL) is
engaged in manufacturing of roto/texturised synthetic yarn and
knitted fabric. The company is promoted by Mr. Bhagwani Ram
Mohanlal Bajari who has experience of over three decades in
textile business. The company has its registered office at
Kalbadevi, Mumbai and manufacturing facility at Silvassa, Dadra
Nagar Haveli (UT).
BHADORA INDUSTRIES: ICRA Assigns 'B' Rating to INR3.70cr Loan
-------------------------------------------------------------
ICRA has assigned the long term rating of [ICRA]B to the INR1.00
crore fund based limits (Rs. 3.70 crore enhanced from INR2.70
crore) of Bhadora Industries Private Limited. ICRA has also
assigned the short term rating of [ICRA]A4 to the INR2.00 crore
Non-Fund Based bank limits (Rs. 6.50 crore enhanced from INR4.50
crore) of BIPL. ICRA also has rating of [ICRA]B/[ICRA]A4
outstanding for INR2.70 crore fund based and INR4.50 crore non-
fund based bank facilities of BIPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Facilities 3.70 [ICRA]B
(Assigned/outstanding)
Non-Fund Based Facilities 6.50 [ICRA]A4
(Assigned/outstanding)
The ratings factor in BIPL's experienced management and their long
track record in the wire manufacturing industry and its reputed
client base which mainly consists of State Electricity Boards. The
ratings are however constrained on account of BIPL's weak
financial profile characterized by small scale of operations, weak
profitability and high gearing levels along with weak debt
protection indicators as on March 31, 2014. The ratings also
factor in the high working capital intensity of BIPL's operations
which results in stretched liquidity position and intensely
competitive nature of industry which puts pressure on
profitability. Going forward, company's ability to increase its
scale of operations while improving its profitability and capital
structure will be amongst the key rating sensitivity factors.
Bhadora Industries Private Limited (BIPL) is a Private Limited
company incorporated on April 01, 2013 and is based out of
Tikamgarh, Madhya Pradesh. The company is primarily engaged in the
production of PVC Insulated Cables. Its products are certified by
the Bureau of Indian Standards and its clientele comprises majorly
of State Electricity Boards like Kerala State Electricity Board,
Maharashtra State Distribution Company etc. The firm has Mr.
Pradeep Bhadora and Mr. Anil Bhadora as equal partners having
experience of more than 20 years in the industry. The
manufacturing plant is located in Tikamgarh, Madhya Pradesh and is
equipped with a proper testing laboratory.
Recent Results:
In FY12, BIPL reported a net profit of INR0.04 crore on an
operating income of INR9.44 crore. During FY13, the company
reported a profit after tax (PAT) of INR0.05 crore on an operating
income of INR9.47 crore.
CHINAR SYNTEX: CRISIL Reaffirms 'B+' Rating on INR180MM Loan
-------------------------------------------------------------
CRISIL's rating on the bank facilities of Chinar Syntex Ltd
continues to reflect the company's weak financial profile and
working-capital-intensive operations. The rating also factors in
the exposure of CSL's operating profitability to any fluctuations
in raw material prices. These rating weaknesses are partially
offset by the extensive experience of CSL's promoters in the
textile industry and moderate scale of operations.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 180 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that CSL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the company scales up its
operations substantially, while improving its profitability, thus
leading to better-than-expected cash accruals and easing the
pressure on its liquidity. Conversely, the outlook may be revised
to 'Negative' if CSL's financial risk profile deteriorates
further, most likely because of larger-than-expected working
capital requirements or a large debt funded capital expenditure.
CSL was incorporated in in 1992. The company is promoted by Mr.
Purushottam Aggarwal, Mr. Naresh Aggarwal, and Mr. Nand Kishore
Aggarwal. CSL manufactures suiting and shirting fabric under the
Chinar brand. The company has a weaving unit at Bhiwani (Haryana).
CSL has reported profit after tax (PAT) of INR5 million on net
sales of INR652 million for 2012-13; and PAT of INR4.6 million on
net sales of INR574 million for 2011-12.
DEVAS ENGINEERING: CRISIL Assigns 'B-' Rating to INR150MM Loans
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to
the bank facilities of Devas Engineering Systems Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Term Loan 18.5 CRISIL B-/Stable
Proposed Term Loan 41.5 CRISIL B-/Stable
Cash Credit 90 CRISIL B-/Stable
Letter of credit &
Bank Guarantee 50 CRISIL A4
The ratings reflect Devas's below-average financial risk profile
marked by high gearing and weak debt protection metrics, and
susceptibility to cyclicality in demand from its end-user
industry. The ratings also factor in Devas's modest scale of
operations and large working capital requirements. These rating
weaknesses are partially offset by the extensive experience of the
company's promoters in the engineering and capital goods segment.
Outlook: Stable
CRISIL believes that Devas will continue to benefit over the
medium term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if Devas's financial risk
profile improves significantly, most likely because of better-
than-expected revenue and profitability and improvement in working
capital cycle. Conversely, the outlook may be revised to
'Negative' if the company's financial risk profile, particularly
liquidity and capital structure, deteriorates because of stretch
in working capital cycle or large debt-funded capital expenditure.
Incorporated in 2011, Devas manufactures spares for bulk material
handling equipment. The company also undertakes turnkey projects
that include design, manufacture, erection, and commissioning of
bulk material handling equipment. Its day-to-day activities are
managed by managing director Mr. D P Sadhu.
Devas reported net loss of INR2.4 million on revenue of INR132
million for 2012-13 (refers to financial year, April 1 to
March 31), against net loss of INR4.9 million on revenue of INR147
million for 2011-12.
G.L. JAIN: ICRA Suspends 'B+' Rating on INR6cr Cash Credit
----------------------------------------------------------
ICRA has suspended '[ICRA]B+' rating assigned to the INR6.00 crore
bank facilities of G.L. Jain Button Store Pvt. Ltd. The suspension
follows ICRA's inability to carry out a rating surveillance in the
absence of the requisite information from the company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-Based Limit-
Cash Credit 6.00 [ICRA]B+ suspended
Incorporated in 1993, G.L. Jain Button Store Pvt. Ltd. (GLPL) is
engaged in the trading of various garment accessories and hosiery
materials like clothes, thread, buttons, zip, sliders, elastic
etc. Company mainly caters to garment manufacturers in Ludhiana
region. While the fabric trade is procured within India,
accessories are mostly imported from China.
GLPL is promoted by members of Ludhiana based Jain family who have
been engaged in this business for over 20 years. Currently, the
operations are being managed by Mr. Ripan Jain and his younger
brother Mr. Amit Jain.
INDIAN BANK: S&P Withdraws Issue Ratings Under US$1BB MTN Program
-----------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its issue ratings on
all debt under the US$1 billion medium-term note (MTN) program by
Indian Bank (BBB-/Negative/A-3) at the bank's request. There are
no outstanding rated issues under the program.
Ratings List
Withdrawn
To From
Senior Unsecured Not rated BBB-
Subordinated Not rated BB+
Junior Subordinated Not rated BB
Preferred Stock Not rated BB
JAYAN SRI: ICRA Assigns 'B' Rating to INR6cr Loan
-------------------------------------------------
ICRA has assigned a long-term rating of [ICRA]B to INR6.00 crore
fund based limits and short term rating of [ICRA]A4 to INR8.00
crore non fund based limits of Jayan Sri Exim.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based limits 6.00 [ICRA]B assigned
Non Fund based limits 8.00 [ICRA]A4 assigned
The assigned ratings are constrained by the presence of JSE into
export of agricultural commodities whose availability and prices
are linked to seasonality, crop harvest and climatic conditions
and thereby exposing the profitability and cash flows to
availability and price of these goods. The ratings further take
into account the high competitive intensity in trading business
resulting from low entry barriers; exposure of firm's
profitability to adverse regulatory changes related to exports
restriction and MSP (Minimum Support Price) by the government.
Further, the profitability remains exposed to foreign exchange
fluctuation risk in the absence of a defined hedging mechanism.
The ratings however factor in location advantage which ensures
easy accessibility of rice and maize; availability of warehouse
facility near Kakinada port to store the materials for export and
favorable demand outlook for rice and maize exports.
Jayan Sri Exim (JSE) was incorporated as a partnership firm in
October 2012. The firm started its operations in July 2012 and is
engaged in the export of agricultural products; primarily
exporting to South Africa. The firm has received IEC (Import
Export Code) from DGFT (Director General of Foreign Trade) and has
warehouse capacity of 6000 MT near Kakinada port (East Godavari
District) of Andhra Pradesh. The firm is promoted by Mr. T.
Sudhakar who is managing partner of the firm and looks after the
operational activity. The promoters have prior business experience
in food & beverages industry and are also engaged in real estate
business.
JYOTI VINCOM: CRISIL Assigns 'B-' Rating to INR198.2MM Loans
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to
the bank facilities of Jyoti Vincom Pvt Ltd (JVPL).
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Term Loan 110 CRISIL B-/Stable
Proposed Long Term
Bank Loan Facility 35.2 CRISIL B-/Stable
Bank Guarantee 1.8 CRISIL A4
Cash Credit 53 CRISIL B-/Stable
The ratings reflect (JVPL's) below-average financial risk profile,
and its exposure to risks related to the regulated nature of the
cold storage industry. These rating weaknesses are partially
offset by the extensive experience of the company's promoters in
the cold storage and potato trading business.
Outlook: Stable
CRISIL believes that JVPL will continue to benefit over the medium
term from the extensive industry experience of its promoters. The
outlook may be revised to 'Positive' if the company reports
higher-than-expected operating income and profitability, leading
to a substantial increase in its accruals and hence to an
improvement in its financial risk profile, particularly its
liquidity. Conversely, the outlook may be revised to 'Negative' if
JVPL's liquidity deteriorates, most likely on account of delay in
realisation of rents from, and loans extended to, farmers, a
stretch in its working capital management, significant debt-funded
capital expenditure, or further investment in group firms.
JVPL, promoted by the West Bengal-Based Kundu family, has recently
set up cold storage facilities for providing services to potato
farmers and traders. The company has also set up a multipurpose
cold storage. Its facilities are in the Hooghly district of West
Bengal.
KANAK AGROPIPES: ICRA Downgrades Rating on INR9cr Loans to 'D'
--------------------------------------------------------------
ICRA has revised the long term rating assigned to INR5.00 crore
term loan and INR4.00 crore cash credit facilities of Kanak
Agropipes Private Limited from [ICRA]B- to [ICRA]D.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term, Fund
based limits Term
Loan 5.00 Revised to [ICRA]D
from [ICRA]B-
Long Term, Fund
based limits Cash
Credit 4.00 Revised to [ICRA]D
from [ICRA]B-
The ratings revision takes into account delays in debt servicing
by the company.
Established in FY 10, Kanak Agro Pipes Private Limited is involved
primarily in the manufacture and sale of Poly Vinyl Chloride Pipes
which finds application mainly in agriculture along with ASTM and
SWR pipes which have high pressure applications. The Company has
its production unit at Shendra, Aurangabad (Maharashtra) with
installed capacity of 4800 tonnes per year.
KANAKA INFRATECH: ICRA Suspends 'D' Ratings on INR61.72cr Loans
---------------------------------------------------------------
ICRA has suspended the long term of [ICRA]D assigned to the
INR50.00 crore fund based limits, and the short term rating of
[ICRA]D assigned to INR11.72 crore non fund based limits of Kanaka
Infratech Limited. The suspension follows ICRA's inability to
carry out a rating surveillance in the absence of the requisite
information from the company.
KANSAL OVERSEAS: CRISIL Assigns 'B' Rating to INR55MM Loans
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Kansal Overseas. The rating reflects the firm's
below-average financial risk profile marked by a modest net worth,
high gearing and weak debt protection metrics, and its modest
scale of operations. These rating weaknesses are partially offset
by the extensive industry experience of KO's proprietor.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 0.5 CRISIL B/Stable
Cash Credit 50.0 CRISIL B/Stable
Proposed Long Term 4.5 CRISIL B/Stable
Bank Loan Facility
Outlook: Stable
CRISIL believes that KO will benefit from its proprietor's
extensive industry experience over the medium term. The outlook
maybe revised to 'Positive' in case the firm scales up its
operations substantially with improvement in profitability,
leading to better-than-expected cash accruals and financial risk
profile. Conversely, the outlook maybe revised to 'Negative' if
the firm generates lower-than-expected cash accruals, its working
capital requirements are larger-than-expected or it undertakes any
large debt-funded capital expenditure programme.
Established in 1998 and based in Karnal (Haryana), KO is a
proprietorship firm engaged in the processing basmati rice. The
firm is owned and managed by Mr. Kansal.
KTC AUTOMOBILES: CRISIL Reaffirms 'B-' Rating on INR218.5MM Loans
-----------------------------------------------------------------
CRISIL's rating on the bank facilities of KTC Automobiles Pvt Ltd
continues to reflect KTCAPL's weak financial risk profile, marked
by high gearing and weak debt protections metrics and its
susceptibility to intense competition in the automobile dealership
segment. These rating weaknesses are partially offset by KTCAPL's
established position in Hyundai Motor India Limited's vehicles in
Kerala.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 100 CRISIL B-/Stable (Reaffirmed)
Inventory Funding
Facility 35.1 CRISIL B-/Stable (Reaffirmed)
Long Term Loan 83.4 CRISIL B-/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that KTCAPL will continue to benefit over the
medium term from its established position in the automobile
dealership market for Hyundai in Kerala and the extensive industry
experience of its promoter. The outlook may be revised to
'Positive' if KTCAPL's volumes and operating margin improve
substantially or its promoters infuse significant equity,
resulting in an improvement in its capital structure and debt
protection metrics. Conversely, the outlook may be revised to
'Negative' if KTCAPL's market-share declines, thereby
significantly impacting its revenues and profitability, or the
company undertakes any large debt-funded capital expenditure
programme, further weakening its capital structure and liquidity.
Set up in 1998 as a partnership firm, KTCAPL was reconstituted as
a private limited company in 2004. The company is one of the
authorised dealers for Hyundai in Kerala. It is part of the KTC
group, which is a Kerala-based diversified business conglomerate
with interest in automobile dealership, hospitals, real estate,
education, plantation, logistics, and film production.
LIVA CERAMICS: ICRA Reaffirms 'B+' Rating on INR9cr Loans
---------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B+ to the
INR3.00 crore cash credit facility and INR6.00 crore (reduced from
INR6.70 crore) term loan facility of Liva Ceramics. ICRA has also
reaffirmed the short-term rating of [ICRA]A4to the INR0.75 crore
short-term non-fund based facility of LC.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 3.00 [ICRA]B+ reaffirmed
Term Loan 6.00 [ICRA]B+ reaffirmed
Bank Guarantee 0.75 [ICRA]A4 reaffirmed
Rating Rationale
The reaffirmation of the ratings factors in the modest scale of
the firm's operations and increase in working capital intensity of
operations in FY2014 owing to delayed receipt of payments from
customers. The ratings are further constrained by the
vulnerability of the firm's profitability to the cyclicality
inherent in the real estate industry, which is the main consuming
sector; and to the adverse fluctuations in prices of raw materials
and natural gas, which is the major fuel. The ratings also take
into account the highly competitive domestic ceramic industry with
presence of large established organized tile manufacturers as well
as unorganized players in Morbi (Gujarat) resulting in limited
pricing flexibility. ICRA also notes that as LC is a partnership
firm, any significant withdrawals from the capital account by the
partners would adversely affect its net worth and thereby its
capital structure; the same thus remains a rating sensitivity.
The ratings, however, favourably take into account the long
standing experience of the firm's promoters in the ceramic
industry and locational advantage due to presence of the firm's
plant in Morbi (Gujarat), India's ceramic hub, giving it easy
access to raw material.
Incorporated in April 2011, Liva Ceramics (LC) is engaged in
manufacturing of ceramic wall tiles with its production facility
located in Morbi, Gujarat. The firm currently manufactures
digitally printed ceramic wall tiles of three sizes 12" X 12", 12"
X 18", and 12" X 24" with total installed capacity of ~25,000
MTPA. The firm is promoted by fifteen partners with Mr. Tarun
Likhiya and Mr. Vasant Rojmala being the key partners of the firm.
Recent Results
During FY 2014 (as per provisional financials), LC reported an
operating income of INR24.45 crore and profit after tax of INR0.26
crore as against an operating income of INR29.05 crore and profit
after tax of INR0.59 crore during FY 2013.
MOGAVEERA VYAVASTHAPAK: ICRA Suspends 'B+' Rating on INR10cr Loan
-----------------------------------------------------------------
ICRA has suspended [ICRA]B+ rating to the INR10.00 Crore term
loans of Mogaveera Vyavasthapak Mandali. The suspension follows
ICRA's inability to carry out a rating surveillance in the absence
of the requisite information from the company.
MOHAK CARPETS: CARE Assigns 'D' Rating to INR36.92cr Loans
----------------------------------------------------------
CARE assigns 'CARE D' rating to the bank facilities of Mohak
Carpets Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 33.02 CARE D Assigned
Short term Bank Facilities 3.90 CARE D Assigned
Rating Rationale
The rating assigned to the bank facilities of Mohak Carpets
Private Limited takes into account the ongoing delays in debt
servicing due to stressed liquidity position.
MCPL was initially incorporated as Mohak Carpets & Flooring
Private Limited in June 2009 and the name was changed to
MCPL in June 2012. The company is promoted by Mr Surinder Bajaj
and his wife, Ms Minal Bajaj. MCPL is engaged in the manufacturing
of non-woven, tufted and printed carpets which were mainly used in
household, automotive and hotel industry. The company sells its
products directly (15%) and through a network of 12 distributors
(85%) covering cities like Delhi, Bangalore, Ahmedabad and
Hyderabad.
MCPL reported a PAT of INR3.58 crore on a total income of INR48.85
crore in FY13 (refers to the period April 1 to March 31) as
against the net loss of INR11.19 crore on a total income of
INR19.14 crore in FY13.
P. R. STEELS: CRISIL Reaffirms 'B' Rating on INR65MM Loans
----------------------------------------------------------
CRISIL's rating on the long-term bank facilities of P. R. Steels
continues to reflect PRS's weak financial risk profile and its
working-capital-intensive operations. These rating weaknesses are
partially offset by the extensive experience of PRS's promoters in
the steel industry leading to established relationship with
customers and suppliers.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL B/Stable (Reaffirmed)
Term Loan 15 CRISIL B/Stable (Reaffirmed)
CRISIL had assigned its 'CRISIL B/Stable' rating to the bank
facilities of PRS on May 19, 2014.
Outlook: Stable
CRISIL believes that PRS will benefit over the medium term from
its promoters' extensive industry experience. The outlook may be
revised to 'Positive' if PRS's scale of operations increases
substantially resulting in improvement in financial risk profile.
Conversely, the outlook may be revised to 'Negative' in case of
decline in the firm's operating margin leading to low cash
accruals, or large debt-funded capital expenditure.
Set up in 2006, PRS manufactures stainless steel and aluminium
utensils. The firm sells products under its own brands, Neelkamal
Soni, Paras Soni, and PR. Its manufacturing unit in Manakpur
(Haryana) is managed by Mr. Pawan Soni and his brother Mr.
Rajneesh Soni.
PRS's book profit and net sales were at INR0.6 million and INR128
million, respectively, for 2012-13 (refers to financial year,
April 1 to March 31); the firm reported a book profit of INR0.4
million on net sales of INR93 million for 2011-12. It is likely to
register sales of INR184 million for 2013-14.
PATNAIK STEELS: CRISIL Raises Rating on INR1.36BB Loans to 'B-'
---------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Patnaik Steels and Alloys Ltd to 'CRISIL B-/Stable' from 'CRISIL
C', while reaffirming its rating on the company's short-term
facilities at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 27.5 CRISIL A4 (Reaffirmed)
Cash Credit 300 CRISIL B-/Stable (Upgraded
from 'CRISIL C')
Proposed Long Term 33.1 CRISIL B-/Stable (Upgraded
Bank Loan Facility from 'CRISIL C')
Term Loan 1026.9 CRISIL B-/Stable (Upgraded
from 'CRISIL C')
The rating upgrade reflects the sustainable improvement in PSAL's
liquidity, driven by increasing cash accruals and tighter control
on its working capital cycle. Backed by favourable iron prices and
improving demand, the company's cash accruals have been
increasing. It utilised its accruals to ensure timely servicing of
its debt, which commenced from December 2013. Further increase in
accruals will ensure comfortable servicing of ballooning
repayments and hence will remain a key rating sensitivity factor
over the medium term.
The ratings reflect PSAL's marginal market share and its
susceptibility to cyclicality in the steel industry. The ratings
also factor in the company's weak financial risk profile, marked
by high gearing and weak debt protection metrics, though supported
by a comfortable net worth. These rating weaknesses are partially
offset by PSAL's moderately integrated operations.
Outlook: Stable
CRISIL believes that PSAL will remain susceptible to cyclicality
in the steel industry over the medium term. The outlook may be
revised to 'Positive' in case of significant equity infusion by
the promoters or higher-than-expected cash accruals, leading to an
improvement in its financial risk profile. Conversely, the outlook
may be revised to 'Negative' if PSAL's liquidity deteriorates,
most likely due to lower-than-expected accruals or a sharp
increase in its working capital requirements.
PSAL was originally set up in 2003 as a private limited company,
Patnaik Steels and Alloys Pvt Ltd (PSAPL), by Mr. Tara Ranjan
Patnaik, Mr. Jitendra Nath Patnaik, and Mr. Prasanta Kumar
Mohanty. PSAPL was later reconstituted as a public limited
company. PSAL manufactures sponge iron and billets, in addition
to generating power. It has a manufacturing facility in Keonjhar
(Odisha).
PSAL reported a net loss of INR222.5 million on net sales of
INR1.3 billion for 2012-13 (refers to financial year, April 1 to
March 31), against a net loss of INR204.7 million on net sales of
INR1.3 billion for 2011-12.
PYOGINAM: CRISIL Reaffirms 'B+' Rating on INR40.5MM Loan
--------------------------------------------------------
CRISIL's ratings on the bank facilities of Pyoginam continue to
reflect its average financial risk profile, marked by high gearing
and a small net worth, and small scale of operations with
geographical concentration in its revenue profile.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Bank Guarantee 1.2 CRISIL A4 (Reaffirmed)
Foreign Bill Purchase 57 CRISIL A4 (Reaffirmed)
Overdraft Facility 40.5 CRISIL B+/Stable (Reaffirmed)
Packing Credit 65 CRISIL A4 (Reaffirmed)
The ratings also factor in the firm's exposure to risks related to
volatility in raw material prices and to foreign exchange rate,
and constrained financial flexibility because of large working
capital requirements and withdrawal of capital by partners. These
rating weaknesses are partially offset by its promoters' extensive
experience in the ready-made garments business and the firm's
moderate debt protection metrics.
Outlook: Stable
CRISIL believes that Pyoginam will continue to benefit over the
medium term, backed by its promoters' extensive experience in the
ready-made garments business and its established relationships
with customers. However, the firm's financial risk profile is
expected to remain average, marked by high gearing, because of its
large working capital requirements. The outlook may be revised to
'Positive' if Pyoginam's operating margin improves significantly
or its partners infuse more capital, leading to better financial
risk profile. Conversely, the outlook may be revised to 'Negative'
if Pyoginam's operating margin declines further, or the firm's
financial risk profile deteriorates owing to large, debt-funded
capital expenditure or significant withdrawal of capital by
partners.
Update
The company's revenue declined 18 per cent year-on-year to around
INR500 million in 2012-13 (refers to financial year, April 1 to
March 31); this was mainly driven by lower demand in the European
market in the wake of economic slowdown. However, there was a
revival in demand in 2013-14 and Pyoginam is estimated to register
a turnover of around INR670 million for the year. The company's
operating margin was largely in line with the past trend at around
8 per cent in 2012-13; this is estimated to increase to around 11
per cent in 2013-14 on account of favourable currency movement
during the year.
The company's operations are working capital intensive as
reflected in its estimated gross current asset (GCA) of around 200
days as on March 31, 2014. These GCA days emanates from the
company's inventory levels of around 60 days and receivables cycle
of 110 days. As a result, the company's average bank limit
utilisation has been high at 90 per cent for the 12 months ended
March 31, 2014.
Pyoginam's net worth is also estimated to remain low at around
INR60 million as on March 31, 2014 thereby limiting its financial
flexibility to meet any exigency. The company has high debt
levels/high total indebtedness towards funding its working capital
requirements; this, coupled with small net worth is estimated to
result in high gearing of 4.5 times as on March 31, 2014.
Pyoginam was set up as a proprietorship firm in 1992 by Mr.
Yoginder Mukim. In 2004, it was reconstituted as a partnership
firm with the introduction of his wife, Ms. Poonam Mukim, as
partner. The firm manufactures ready-made cotton, polyester,
linen, viscose, and garments made of other blended fabrics for
women (blouses, dresses, trousers, tops, tunics, and skirts) at
its facilities in Gurgaon (Haryana).
RADIANT UDYOG: CRISIL Reaffirms 'D' Rating on INR50MM Loans
-----------------------------------------------------------
CRISIL's rating on the long term bank facilities of Radiant Udyog
Pvt Ltd continues to reflect instances of delay by RUPL in
servicing its debt; the delays have been caused by RUPL's weak
liquidity driven by losses due to initial phase of operation and
large working capital requirements arising from ramp-up in
revenue.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 10 CRISIL D (Reaffirmed)
Term Loan 40 CRISIL D (Reaffirmed)
RUPL's financial risk profile is weak, marked by small net worth
and weak debt protection metrics. These rating weaknesses are
partially offset by its promoters' extensive experience in the
petrochemical industry.
Update
RUPL is likely to report operating losses of INR1.4 million in
2013-14 (refers to financial year, April 1 to March 31), due to
start up nature of its operations, with 2013-14, being its first
full year of operations. Its financial risk profile remains weak,
marked by small net worth and absence of additional equity
infusion. Furthermore high debt taken for setting up the
Production facility and meet the working capital requirements, has
translated into high gearing and weak debt protection metrics. The
company's liquidity is expected to remain constrained in the near
time due to start up nature of its operations.
For 2013-14, RUPL is estimated to report a net loss of INR18
million on net sales of INR36 million, against a net loss of
INR0.6 million on net sales of INR4.3 million for 2012-13.
RUPL, promoted by Mr. Deepak Bharadwaj and Mr. Vijay Jindal, is
engaged in extraction of fuel oil and carbon from used tyres. It
was incorporated in 2007 as Nano Pyrolysis Pvt Ltd and was renamed
as RUPL and started its operations in March 2013. The firm's
manufacturing facility is in Nagpur (Maharashtra). Its key
customer is its affiliate Radiant Lubes Pvt Ltd (rated 'CRISIL
B/Stable/CRISIL A4').
RAM SAROOP: ICRA Assigns 'B' Rating to INR7.50cr Loans
------------------------------------------------------
ICRA has assigned a long-term rating of [ICRA]B to the INR7.00
crore fund based limits and INR0.50 crores unallocated fund based
limits of Ram Saroop Rajender Parshad.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits 7.00 [ICRA ]B assigned
Unallocated fund
based limits 0.50 [ICRA ]B assigned
The rating assigned to the firm is constrained by RSRP's weak
financial profile characterized by its moderate scale of
operations, low profitability due to trading nature of business,
high gearing and weak debt coverage indicators. The rating is also
constrained by intensely competitive nature of the trading
industry, vulnerability of RSRP's revenues and cash flows to agro
climatic risks and fluctuation in prices of traded goods.
Nevertheless, the rating derives comfort from RSRP's experienced
promoters, low working capital intensity of operations and the
firm's established relationship with customers and suppliers.
Going forward, the ability to increase scale of operation and
profit levels and manage its working capital cycle effectively
will be the key rating sensitivities.
RSRP was established in 1979 and is involved in trading of
cereals. The company is promoted by Mr. Subhash Chand who is
actively involved in the business. The promoter and his family has
been involved in the business of agri-commodity trading for more
than three decades
Recent Results
The firm reported a net profit of INR0.04 crores on an operating
income of INR16.58 crores in H1 FY14(provisional results) as
against net profit of INR0.08 crores on an operating income of
INR55.16 crores in FY13.
RNB INTERNATIONAL: ICRA Reaffirms B+ Rating on INR11cr Loans
------------------------------------------------------------
ICRA has reaffirmed the long term rating of [ICRA]B+ to INR11.00
crore fund based limits (enhanced from INR6.00 crore) of RNB
International Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-Term Fund
Based Facilities 11.00 [ICRA]B+ Reaffirmed
The rating reaffirmation takes into account the weak financial
profile of the company on account of low profitability which
coupled with increase in leveraging resulted in moderation of debt
coverage indicators. While the net cash accruals (NCA) of RNB are
adequate in relation to the annual fixed debt obligations; however
increasing funding support to group companies stretches the
company's liquidity position. A large proportion of promoters'
funds (including unsecured borrowings) are deployed as
investment/advances to group companies, the level of which has
increased from INR6.1 cr. on Mar-12 to INR14.1 cr. on Mar-13;
resulted in limited availability of cash accruals for the
businesses of the company. Consequently, the company's reliance on
external debt has increased, leveraging its capital structure
which along with low profitability moderated the debt coverage
metrics. Notwithstanding the above concerns, the rating continues
to take comfort from the experience of promoters in wool trading
business and company's established relationship with clients in
high margin market research segment although the scale of which
remains modest.
Going forward, the ability of the company to manage its liquidity
position, improve its profitability and recovery of advances to
group entities will be key determinants of the company's debt
servicing ability and hence remain the key rating sensitivities.
RNB International Private Limited was incorporated in 2003 and is
engaged in various businesses including market research
activities, wool trading, publications and construction work
contracts. While the company is engaged in market research
services since inception, it entered into wool trading business in
FY-12 which was earlier carried out in other group companies. In
the publication business, the company undertakes publication and
marketing of books while the construction work contracts largely
done for group companies. The market research and wool trading
business constitute the majority of revenues for the company while
the scale of operations for publications and construction work
contracts remain modest.
RUSHI COTTEX: ICRA Assigns 'B+' Rating to INR20cr Loans
-------------------------------------------------------
ICRA has assigned an [ICRA]B+ rating to the INR4.50 crore fund
based cash credit facility and INR15.50 crore unallocated bank
limits of Rushi Cottex Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit Limits 4.50 [ICRA]B+ assigned
Unallocated Limits 15.50 [ICRA]B+ assigned
The assigned rating is constrained by Rushi Cottex Private
Limited's (RCPL) weak financial risk profile as reflected by low
profitability, leveraged capital structure along with weak debt
coverage indicators. The rating, further takes into account the
vulnerability of RCPL's profitability to adverse fluctuations in
cotton prices, which are subject to the seasonal availability of
cotton and government regulations on MSP and export quota. The
rating also factor in trading nature of operations and intense
competition on account of the fragmented industry structure which
leads to thin profit margins.
The rating, however, positively considers the long experience of
the promoters in the cotton industry and the advantages arising
from the unit's proximity to the cotton bale sources which ensures
regular and easy availability of cotton bales.
Established in 2008, Rushi Cottex Private Limited is currently
managed by Mr. Shialesh Pandya and Ms Minakshi Soni. The company
is engaged in trading of Shanker 6 and V 764 cotton bales.
Recent Results
As per provisional results, for the year ended 31st March, 2014,
the company reported an operating income of INR50.24 crore with
profit before depreciation and taxes of INR0.19 crore.
S.R. OVERSEAS: CRISIL Assigns 'B' Rating to INR190MM Loans
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of S.R. Overseas.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Term Loan 30 CRISIL B/Stable
Cash Credit 50 CRISIL B/Stable
Export Packing Credit 110 CRISIL B/Stable
The rating reflects SRO's below-average financial risk profile,
marked by a modest net worth, high gearing and weak debt
protection metrics. The rating also factors in SRO's modest scale
of operations with exposure to foreign exchange volatility risk.
These rating weaknesses are partially offset by the extensive
industry experience of SRO's partners, and their funding support.
Outlook: Stable
CRISIL believes that SRO will continue to benefit from its
partners' extensive experience and their funding support over the
medium term. The outlook maybe revised to 'Positive' in the event
of a significantly higher-than-expected cash accruals or
substantial capital infusion along with efficient working capital
management. Conversely, the outlook maybe revised to 'Negative' in
case of lower-than-expected cash accruals or larger-than-expected
working capital requirements, or any unanticipated large debt-
funded capital expenditure, exerting further pressure on the
firm's liquidity.
SRO was established in 2013, as a partnership firm, by Mr. Rakesh
Kumar and family and is headquartered in Karnal (Haryana). The
firm is engaged in the processing and export of rice and commenced
its operations in January 2014.
SAURASHTRA JINNING: CRISIL Assigns 'B' Rating to INR90MM Loans
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long term
bank facilities of Saurashtra Jinning Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 18.4 CRISIL B/Stable
Cash Credit 67.5 CRISIL B/Stable
Proposed Long Term
Bank Loan Facility 4.1 CRISIL B/Stable
The rating reflects SJPL's modest scale of operations in the
highly fragmented cotton industry, and its subdued financial risk
profile marked by modest net worth, high gearing, and weak debt
protection metrics. These rating weaknesses are partially offset
by the extensive experience of SJPL's promoters in the cotton
industry and the proximity of the company's production facility to
the cotton growing belt of Gujarat.
Outlook: Stable
CRISIL believes that SJPL will continue to benefit over the medium
term from its promoters' extensive experience in the cotton
industry. The outlook may be revised to 'Positive' if SJPL
significantly improves its scale of operations and cash accruals
while strengthening its capital structure, leading to improvement
in its financial risk profile. Conversely, the outlook may be
revised to 'Negative' if SJPL's accruals are lower than expected,
or if the company undertakes any substantial debt-funded expansion
programme, or if its working capital management weakens,
significantly weakening its financial risk profile.
SJPL, based in Gariyadhar (Gujarat), was incorporated in 2004 by
the Bhilakhiya family. The company is engaged in ginning of raw
cotton to produce cotton bales and pressing of cotton seeds to
produce oil.
SJPL reported a net profit of INR1.53 million on net sales of
INR310 million for 2012-13 (refers to financial year, April 1 to
March 31), against a net profit of INR1.20 million on net sales of
INR313 million for 2011-12.
SIDDHI TEXCHEM: CARE Downgrades Rating on INR11.71cr Loan to 'D'
----------------------------------------------------------------
CARE revises the rating assigned to the bank facilities of Siddhi
Texchem Private Limited to 'CARE D'.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 11.71 CARE D Revised from
CARE B
Rating Rationale
The revision in the rating takes into account the ongoing delays
in servicing of interest and installment of its term loan by
Siddhi Texchem Private Limited due to its weak liquidity position.
STPL, incorporated in March 2005 was promoted by Mr Rajeev Gupta
along with his wife Ms Sudha Gupta based at Bhilwara, Rajasthan.
Initially, STPL was engaged in the business of trading of
chemicals used in the textile processing and later on, in 2008,
the company started trading of synthetic fabrics. Later, in July
2011, the company undertook a project to install 36 imported
second-hand Airjet looms for manufacturing of synthetic grey
fabrics with an installed capacity of 28.80 Lakh Meters Per Annum
(LMPA). The total cost of the project was INR7.45 crore being
funded at a debt to equity ratio of 1.76:1. The company commenced
commercial production from January 2012 after installation of 12
looms in the plant and the remaining 24 looms were installed in
July 2012.
In FY13 (refers to the period April 1 to March 31), the company
earned nearly 80% of the Total Operating Income (TOI) from the
trading of fabrics, 13% from manufacturing activity and 7% from
job work. The company is marketing its fabrics under the brand
name SIDDHI.
During FY13, STPL reported a total income of INR20.16 crore (FY12:
INR14.73 crore) and a net loss of INR1.59 crore (FY12: net loss of
INR0.11 crore).
SREE VISHNU: ICRA Lowers Rating on INR12cr Loan to 'D'
------------------------------------------------------
ICRA has downgraded the long term rating from '[ICRA]B+' to
[ICRA]D for the INR12.0 crore cash credit limit of Sree Vishnu
Velan Spinning Mills Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits-
Cash Credit 12.0 [ICRA]D Downgraded
The rating takes into consideration the significant
overutilization of cash credit facilities during the period of
February to March 2014 and delay in interest payments, consequent
to disruption in production activities resulting from power loom
strikes at its manufacturing unit's location. This resulted in
considerable weakening of the company's liquidly position.
Further, the company has been witnessing margin pressures
evidenced by high input costs, resulting in declining operating
profits, over the past year. The rating is also constrained by the
company's extensive dependence on job-workers for processing which
limits operational and pricing flexibility, the volatility in raw
material costs affecting operating margins, cyclical nature of the
industry and surplus capacities in a fragmented industry structure
that restricts pricing flexibility, when the demand-supply
equation is unfavourable. ICRA notes that the company's spinning
units located in Tamil Nadu experience power shortages which
impact its operating efficiencies to an extent though the company
has soothed the impact through the setup of spinning units in
Maharashtra and Kerala.
The rating, however, continues to consider the promoters'
extensive experience in the textile business and the company's
diversified product portfolio with its recent forward integration
into downstream processing of yarn to finished fabrics. The rating
also considers the proximity of the manufacturing unit of the
company to cotton growing belts resulting in savings on logistics
for the company.
Sree Vishnu Velan Spinning Mills Private Limited was incorporated
in the year 2005. The company underwent a management change in
March 2011 and December 2011. Presently, it is managed by the
Ashar Group. The company is engaged in the business of trading
greige fabrics and manufacturing various types of yarn (cotton,
polyster & blended) and has recently forward integrated into the
downstream processing of yarn to finished fabrics and sarees. For
manufacturing and processing, the company has entered into several
lease and conversion agreements with various defunct units in
Tamil Nadu, Maharashtra and Kerala.
SURYAAMBA SPINNING: CRISIL Cuts Rating on INR300.7MM Loans to D
---------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Suryaamba Spinning Mills Ltd to CRISIL D/CRISIL D from CRISIL B-
/Stable/CRISIL A4.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Bank Guarantee 2.5 CRISIL D (Downgraded
from 'CRISIL A4')
Cash Credit 150 CRISIL D (Downgraded
from 'CRISIL B-/Stable')
Letter of Credit 10 CRISIL D (Downgraded
from 'CRISIL A4')
Long Term Loan 138.2 CRISIL D (Downgraded
from 'CRISIL B-/Stable')
The rating downgrade reflects instances of delay in term debt
servicing by Suryaamba due to its weak liquidity.
The ratings on the bank facilities of Suryaamba reflect a weak
financial risk profile marked by high gearing and weak debt
protection indicators and the company's exposure to risks relating
to client concentration in revenue profile, and to volatility in
raw material prices. These rating weaknesses are partially offset
by the benefits that the company derives from the experience of
its promoters in the yarn manufacturing business.
Suryaamba was formed by the demerger of Suryalata Spinning Mills
Ltd's (Suryalata's) unit in Nayakund (Maharashtra) from Suryalata
in June 2007. Suryaamba manufactures polyester yarn and
polyester/viscose blended yarn.
Suryaamba reported a profit after tax (PAT) of INR20.7 million on
net sales of INR1308.1 million for 2012-13 (refers to financial
year, April 1 to March 31), against net loss of INR60.5 million on
net sales of INR996.8 million for 2011-12.
TAMIL NADU: ICRA Withdraws 'D' Rating on INR5000cr Loan
-------------------------------------------------------
ICRA has withdrawn the [ICRA]D rating to the INR5000 crore fund
based facilities of Tamil Nadu Generation and Distribution
Corporation Limited, as the terms and conditions of the rated
facilities have changed following the subsequent debt
restructuring.
TIJIYA STEEL: CRISIL Reaffirms 'B' Rating on INR120MM Loan
----------------------------------------------------------
CRISIL's ratings on the bank facilities of Tijiya Steel Pvt Ltd
continue to reflect the company's relatively small market share in
the fragmented thermo-mechanically treated (TMT) steel bar
industry, susceptibility of its operating margin to volatility in
raw materials prices, and its working-capital-intensive
operations. These rating weaknesses are partially offset by its
promoters' extensive experience in the steel industry, and its
moderate financial risk profile, marked by a comfortable capital
structure and moderate debt protection metrics.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 120 CRISIL B/Stable (Reaffirmed)
Letter of Credit 60 CRISIL A4 (Reaffirmed)
Outlook: Stable
CRISIL believes that TSPL will continue to benefit over the medium
term from its promoters' extensive experience in the steel
industry. The outlook may be revised to 'Positive' if there is a
significant improvement in the company's liquidity, most likely
driven by higher-than-expected cash accruals. Conversely, the
outlook may be revised to 'Negative' in case of deterioration in
TSPL's financial risk profile, most likely due to lower-than-
expected profitability, larger-than-expected working capital
requirements, or large, debt-funded, capital expenditure.
Incorporated in 1994, TSPL is managed by Mr. Rajesh Poddar and Mr.
Rajiv Poddar. The company manufactures TMT steel bars at its
facility in Kolkata (West Bengal). It also trades in mild steel
ingots, TMT bars, and allied products.
TSPL reported a net profit of INR0.7 million on an operating
income of INR541.3 million for 2012-13 (refers to financial year,
April 1 to March 31), as against a net profit of INR2.0 million on
net sales of INR579.5 million for 2011-12. The company, on a
provisional basis, reported an operating income of INR385 million
for the period from April 1, 2013 to January 15, 2014.
UNIVERSAL COATINGS: CRISIL Reaffirms 'B' Rating on INR55MM Loan
---------------------------------------------------------------
CRISIL's rating on the long term bank facilities of Universal
Coatings Pvt Ltd (UCPL; part of the Universal group) continues to
reflect the Universal group's moderate scale of operations in the
fragmented flexible packaging industry, its below- average
financial profile marked by subdued debt protection metrics, and
its large working capital requirements. These rating weaknesses
are partially offset by the Universal group's established presence
in the flexible packaging industry aided by the extensive industry
experience of its promoters and its healthy relationship with key
customers.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 55 CRISIL B/Stable (Reaffirmed)
For arriving at its rating, CRISIL has combined the business and
financial risk profiles of UCPL and its group entity Universal
Converters Pvt Ltd (UPL), together referred to as the Universal
group. This is because these entities are managed by the same
promoters, are into the same lines of business and have cash flow
fungibility.
Outlook: Stable
CRISIL believes that Universal group will benefit over the medium
term from the extensive experience of its promoters in the
flexible packaging industry. The outlook may be revised to
'Positive' if the Universal group registers larger-than-expected
revenues and cash accruals, improving its financial risk profile.
Conversely the outlook may be revised to 'Negative' if the
Universal group's relationship with its key customers deteriorates
resulting in a decline in revenues and operating profitability or
if the company undertakes a larger-than-expected debt-funded
capital expenditure programme leading to deterioration of its
financial risk profile.
Incorporated in 1990, UCPL and UPL manufactures polyester twist
wrappers for the confectionary industry. The group is promoted by
Mr. Pratap Reddy and Mrs. Anita Reddy.
During 2012-13 (refers to financial year from April 1 to
March 31), the Universal group, on a consolidated basis, reported
a profit after tax (PAT) of INR3.9 million on net sales of INR544
million as against a PAT of INR 2.7 million on net sales of INR652
million during 2011-12.
UNIVERSAL CONVERTERS: CRISIL Reaffirms B Rating on INR69MM Loan
---------------------------------------------------------------
CRISIL's rating on the long term bank facilities of bank
facilities of Universal Converters Pvt Ltd (UPL; part of the
Universal group).
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 69 CRISIL B/Stable (Reaffirmed)
The rating reflects the Universal group's moderate scale of
operations in the fragmented flexible packaging industry, its
below- average financial profile marked by high gearing and weak
debt protection metrics, and its large working capital
requirements. These rating weaknesses are partially offset by the
Universal group's established presence in the flexible packaging
industry aided by the extensive industry experience of its
promoters and its healthy relationship with key customers.
For arriving at its rating, CRISIL has combined the business and
financial risk profiles of UPL and its group entity Universal
Coatings Pvt Ltd, together referred to as the Universal group.
This is because these entities are managed by the same promoters,
are into the same lines of business and have cash flow
fungibility.
Outlook: Stable
CRISIL believes that Universal group will benefit over the medium
term from the extensive experience of its promoters in the
flexible packaging industry. The outlook may be revised to
'Positive' if the Universal group registers larger-than-expected
revenues and cash accruals, improving its financial risk profile.
Conversely the outlook may be revised to 'Negative' if the
Universal group's relationship with its key customers deteriorates
resulting in a decline in revenues and operating profitability or
if the company undertakes a larger-than-expected debt-funded
capital expenditure programme leading to deterioration of its
financial risk profile.
Incorporated in 1990, UPL and UCPL manufactures polyester twist
wrappers for the confectionary industry. The group is promoted by
Mr. Pratap Reddy and Mrs. Anita Reddy.
During 2012-13 (refers to financial year from April 1 to
March 31), the Universal group, on a consolidated basis, reported
a profit after tax (PAT) of INR3.9 million on net sales of INR544
million as against a PAT of INR 2.7 million on net sales of INR652
million during 2011-12.
UTTAR PRADESH: Board Opts to Voluntarily Close Stock Exchange
-------------------------------------------------------------
The Times of India reports that Uttar Pradesh Stock Exchange, the
only stock exchange in the state, is closing down as the board has
decided to voluntarily exit even as Sebi's deadline for closure of
exchanges with annual turnover of less than INR1,000 crores and
net worth less than INR100 crore nears. Sebi, in an order passed
on May 30, 2012, issued exit-policy circular which called for
'smaller' stock exchanges to close down.
Against the Sebi circular, Kanpur-based UP Stock Exchange (UPSE)
traders and brokers filed a petition in the Allahabad high court.
But as the court turned down the petition in an order passed on
May 23, the UPSE board has decided to opt for voluntary exit plan,
TOI relates.
"Our repeated efforts to seek help from Sebi, central government
and the state government failed to break the ice. This is a very
big jolt for the industry in Uttar Pradesh. We thrived on personal
relationship between the brokers and the investors and the closure
of UPSE will be end of road for many employees of the stock
exchange," said KD Gupta, public interest director and chairman of
UPSE, while talking to TOI.
Mr. Gupta added that the state government should have tried to
help UPSE as it was the only stock exchange in the state, the
report relates. "We got no help even as we were paying all the due
taxes to the state. We could have been allowed to carry on but now
before we are forced to compulsorily exit, we are opting for
voluntary exit," the report quotes Mr. Gupta as saying.
It all started with a May 30, 2012, Sebi circular, which asked
regional stock exchanges to shore up Rs 1,000 crore as annual
turnover and have a net worth of Rs 100 crore by May 30, 2014,
failing which the exchange should consider "exit" options, TOI
recalls.
According to the report, the UP Stock Exchange failed to meet any
of the two conditions and on May 29, the board asked its
shareholders to accept the voluntary exit plan. The process will
be completed before September 30 -- the schedule for AGM, the
report adds.
VASANTHA RICE: CRISIL Reaffirms 'B' Rating on INR61.5MM Loans
-------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Vasantha Rice
Industries continue to reflect its below-average financial risk
profile marked by its small net worth, high gearing and below-
average debt protection metrics. The ratings of the firm are also
constrained on account of its small scale of operations in the
intensely competitive rice milling industry, and susceptibility of
its profitability margins to changes in paddy prices and
government regulations. These rating weaknesses are partially
offset by the extensive experience of VRI's promoters in the rice
industry, and the assured off-take by Food Corporation of India
(FCI).
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 35 CRISIL B/Stable (Reaffirmed)
SME Credit 2.5 CRISIL B/Stable (Reaffirmed)
Term Loan 24 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that VRI will continue to benefit over the medium
term from its promoters' extensive experience in the rice
industry. The outlook may be revised to 'Positive' if the firm
registers a substantial increase in its scale of operations, while
maintaining its profitability margins, or there is a substantial
increase in its net-worth on the back of sizeable capital
additions by its partners. Conversely, the outlook may be revised
to 'Negative' in case of a steep decline in the firm's
profitability margins, or significant deterioration in its capital
structure caused most likely because of a large debt-funded
capital expenditure or stretch in its working capital cycle.
VRI was set up as a partnership firm in 2009 by Mr. Chenna Krishna
Reddy and his family members. The firm mills and processes paddy
into rice; the firm also generates by-products, such as broken
rice, bran, and husk. Its rice mill is located in Nalgonda
district in Andhra Pradesh.
VITAGREEN PRODUCTS: CRISIL Reaffirms 'B-' Rating on INR50MM Loans
-----------------------------------------------------------------
CRISIL ratings on the bank facilities of Vitagreen Products Pvt
Ltd continue to reflect its operating margin susceptibility to raw
material price volatility, its start-up nature and hence small
scale of operations, and its weak financial risk profile. These
rating weaknesses are partially offset by the resourceful
background of VPPL's promoters.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 28 CRISIL B-/Stable (Reaffirmed)
Rupee Term Loan 22 CRISIL B-/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that VPPL will benefit from the resourceful
background of promoters and their established relations with
customers and suppliers. The outlook may be revised to 'Positive'
if net worth of the VPPL improves significantly backed by equity
infusion and/or higher than expected cash accruals generated in
business resulting from significant improvement in its scale of
operations along with profitability. Conversely, the outlook may
be revised to 'Negative', if the company's liquidity is further
stretched on account of lower than expected off-take or if its
profitability declines or company executes larger than expected
debt funded capex plan.
Update
VPPL registered on a provisional basis, year-on-year (y-o-y)
growth of 54 per cent with net sales of INR138.5 million in 2013-
14 (refers to financial year, April 1 to March 31). Backed by
increase in its product portfolio and increased geographical
presence, CRISIL believes VPPL to register moderate sales growth
of 25 percent over medium term. On account of large selling and
distribution cost, VPPL's operating margins have remained with
expected operating margins of 0.9 per cent in 2013-14 as compared
to 4.46 per cent a year ago. VLPL's operation remains working
capital intensive with estimated gross current assets (GCA) of 148
days as on March 31, 2014 as compared to 185 days a year ago. With
stabilization of capacities, GCA is expected to moderate and
remain around 130 days over medium term. Cash losses in business
combined with its working capital intensive operation has led to
high gearing of estimated 2.32 times as on March 31, 2014 as
compared to 1.64 times a year ago. Gearing is expected to remain
high at around 3.9 times over medium term. VPPL has weak debt
protection metrics with estimated interest coverage ratio of 0.3
times and net cash accruals to total debt (NCATD) of -0.04 times
as on March 31, 2014. VPPL has stretched liquidity as is reflected
by high bank limit utilization of 96 per cent for the past 12
months ending March 2014, negative net cash accruals generated in
business and its working capital intensive operation leading to
high reliance on external debt. VPPL's liquidity though stretched
finds support from its promoters via timely infusion of unsecured
loan (USL) and equity. USL worth INR12.2 million was infused in
2013-14. CRISIL believes VPPL promoters will continue to support
its operation via timely infusion of USL over medium term to
support its operation.
VPPL reported net loss of INR5.7 million on net sales of INR90.2
million for 2012-13 (refers to financial year, April 1 to
March 31), as against a net loss of INR26 million on net sales of
INR63.8 million for 2011-12.
VPPL is a private limited company incorporated in 2009 by the
Makadia and Kadwani families, based out of Gujarat. Currently VPPL
is being run by the Makadia family. The Makadia family has a
diversified business portfolio under the Radhe Group. VPPL is
engaged in manufacturing and processing of various spices like
chilly, turmeric, coriander, cumin seed powder, masala and instant
mix food products for dhokla, khaman and gulab jamun. It is
selling under its own brand '77 green' and has presence in
Gujarat, Maharashtra, Goa, Madhya Pradesh and Bihar.
VL RAKA: CRISIL Reaffirms 'B+' Rating on INR90MM Loans
------------------------------------------------------
The rating continues to reflect VL Raka Jewellers Private Limited
(VLRJPL's) modest scale of operations in the highly competitive
and volatile jewellery retail industry and its weak financial risk
profile marked by a small net worth, high gearing and large
working capital requirement. These rating weaknesses are partially
offset by the extensive experience of VLRJPL's promoters in the
gold jewellery retail business.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 50 CRISIL B+/Stable (Reaffirmed)
Proposed Cash
Credit Limit 40 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that VLRJPL will continue to benefit from its
promoters' extensive industry experience. The outlook may be
revised to 'Positive' if the company improves its scale of
business supported by improvement in working capital cycle, or
substantial equity infusion, leading to easing of liquidity.
Conversely, the outlook may be revised to 'Negative' if the
company's capital structure weakens due to larger-than-expected
debt-funded capital expenditure and/or large working capital
requirements, or if its profitability declines substantially.
VLRJPL was set up in 2008 by Mr. Valchand Raka and Mr. Pradip
Raka. Prior to this, the promoters had presence in the retail
jewellery business through its proprietorship firm. VLRJPL sells
gold, silver, and diamond jewellery in its retail store in
Bhiwandi (Maharashtra). This store was started in 1975.
VLRJPL's profit after tax (PAT) and net sales are at INR11 million
and INR193 million, respectively, for 2012-13; the company
reported a PAT INR2.6 million on net sales of INR157 million for
2011-12.
WELLWISHER TREXIM: CRISIL Assigns 'B' Rating to INR200MM Loans
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long term
bank facilities of Wellwisher Trexim Private Limited.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Term Loan 116.5 CRISIL B/Stable
Cash Credit 20.0 CRISIL B/Stable
Proposed Long Term
Bank Loan Facility 63.5 CRISIL B/Stable
The rating reflects the modest scale of operations in the highly
competitive textile industry. The rating is also constrained by
the limited cushion between upcoming term debt obligations and
expected cash accruals over the near term. These rating weaknesses
are partially offset by the extensive experience of promoters in
the textile industry and their relations with its customers and
suppliers.
Outlook: Stable
CRISIL believes that WTPL will continue to benefit from the
extensive experience of promoters in the textile industry and
their relations with its customers and suppliers. The outlook may
be revised to 'Positive' if WTPL's achieves significantly better-
than-expected cash accruals leading to higher buffer vis-a -vis
repayment obligations. Conversely, the outlook may be revised to
'Negative' if the accruals are substantially below expectations or
stretching in WTPL's working capital cycle, leading to liquidity
pressures.
WTPL promoted by Agarwala family commenced its operations in 2008.
The company initially started with trading in various printed,
dyed and embroidery fabrics, wherein the company procured grey
fabric and used to get the processing done on job work basis. In
2013, WTPL acquired a yarn and fabrics dyeing and processing unit
at Vapi. The day to day operations of the company are managed by
Mr. Brahmanand Agarwala along with his sons Mr. Piyush Agarwala
and Mr. Sameer Agarwala.
WTPL reported a profit after tax (PAT) of INR 0.7 million on net
sales of INR 44.7 million for 2012-13 (refers to financial year,
April 1 to March 31) against PAT of INR 1.2 million in 2011-12 on
net sales of INR 281.7 million.
ZUBERI ENGINEERING: CRISIL Cuts Rating on INR80MM Loan to 'B+'
--------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Zuberi
Engineering Company (ZEC) to 'CRISIL B+/Stable/CRISIL A4' from
'CRISIL BB/Stable/CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Bank Guarantee 400 CRISIL A4 (Downgraded
from 'CRISIL A4+')
Cash Credit 80 CRISIL B+/Stable (Downgraded
from 'CRISIL BB/Stable')
Letter of Credit 50 CRISIL A4 (Downgraded from
'CRISIL A4+')
The downgrade in ratings reflects CRISIL's expectation that ZEC's
financial risk profile will remain constrained on account of
reduced cash accruals, coupled with high capital withdrawals by
partners and sharp decline in revenue to INR647 million in 2013-14
(refers to financial year, April 1 to March 31) from INR3 billion
in 2011-12). The firm's internal accruals have been declining on
account of lower orders executed. Moreover, the partners of the
firm have withdrawn around INR300 million over the three years
ended March 31, 2014. The withdrawals have been higher than the
profits generated during this period leading to reduced net worth
of INR106 million as on March 31, 2014. The firm's working capital
cycle has also deteriorated, reflected in an increase in gross
current assets to 400 days as on March 31, 2014 from 170 days a
year earlier. The firm's total outside liabilities to tangible net
worth ratio has deteriorated to 7.8 times as on March 31, 2014
from 5.2 times as on March 31, 2013. Its liquidity was also
adversely affected by increase in working capital requirements,
lower cash accruals, and withdrawal of funds by promoters.
The ratings continue to reflect ZEC's working capital intensive
nature of operations, average financial risk profile marked by
modest capital structure, and exposure to intense competition and
tender nature of business. These rating weaknesses are partially
offset by the benefits that the firm derives from its promoters'
extensive industry experience and adequate revenue visibility.
Outlook: Stable
CRISIL believes ZEC will benefit from its promoters' extensive
experience in the engineering industry. The outlook may be revised
to 'Positive' if ZEC's financial risk profile improves backed by
healthy cash accruals and prudent working capital management.
Conversely, the outlook may be revised to 'Negative' if the
partners withdraw significant capital from the firm or there is
time or cost overrun in its order execution or delays in realising
payments from its customers, resulting in weak liquidity.
Established in 1987, ZEC is a partnership firm formed by Mr. M Z
Zuberi, Mrs. Nasira Zuberi, Mr. Adil Zuberi, Mr. Iqbal Hussan, Mr.
Irfan Hussan, Mr. Moshin Khan and Mrs. Annie Zuberi. The firm,
based in Jaipur (Rajasthan), is an engineering, procurement and
construction contractor doing civil and mechanical works in the
industrial sector, mainly thermal plants and water supply
management systems.
For 2013-14, ZEC reported, on a provisional basis, a net profit of
INR22.6 million on revenue of INR647.2 million against a net
profit of INR48.9 million on revenue of INR1.3 billion for 2012-
13.
=========
J A P A N
=========
SURUGAYA COMPANY: Closes After 553 Years in Business
----------------------------------------------------
Mari Iwata at The Wall Street Journal's Japan Real Time reports
that Surugaya, a Japanese confectionary that was in business for
more than five centuries, has closed, according to credit-research
firm Teikoku Databank, after the weak yen increased its raw-
material costs.
Japan Real Time relates that Surugaya, which opened in 1461, was
well-known for yokan, a kind of pudding made from sweet beans and
starch. No one answered the phone at the company's number and its
bankruptcy lawyer couldn't be reached, the news agency says.
Prime Minister Shinzo Abe's economic policies, called Abenomics,
and dramatic monetary easing by the Bank of Japan have weakened
the Japanese currency, which now trades at about JPY102 to the
dollar compared with around JPY80 to the dollar in 2012 before Mr.
Abe took office, Japan Real Time notes. That's good for exporters
but trouble for importers, says Japan Real Time.
Surugaya, based in the western Japan city of Wakayama, stopped all
operations on May 29 after failing to rebuild under bankruptcy
protection, said Teikoku Databank, according to the report.
Since the mid-2000s, Surugaya's revenue declined to roughly a
quarter of its peak of JPY6 billion (about US$60 million) as the
younger generation preferred butter and whipped cream to
traditional sweet beans, according to Teikoku Databank, the report
relays. The higher cost of imported wheat, sugar and beans pushed
the already struggling company over the edge, it said.
Japan Real Time states that interest in Japanese traditional food
has been booming. Traditional cuisine, or washoku, was recognized
last year as an example of intangible cultural heritage by the
United Nations Educational, Scientific and Cultural Organization.
And sushi is more popular than ever internationally, the report
notes.
But intense competition and higher import prices have contributed
to a rise in bankruptcies. Teikoku Databank said that among food
categories, bankruptcies were most frequent in the seafood
industry, with sweets makers in second place, Japan Real Time
adds.
Surugaya Company Limited is a Japan-based confectioner maker.
===============
T H A I L A N D
===============
KRUNG THAI: Fitch Affirms 'B' Rating on Hybrid Tier 1 Securities
----------------------------------------------------------------
Fitch Ratings has affirmed the ratings of Thailand's four largest
commercial banks and their three subsidiaries. The Long-Term
Issuer Default Ratings (IDRs) on Bangkok Bank Public Company
Limited (BBL), Kasikornbank Public Company Limited (KBANK) and
Siam Commercial Bank Public Company Limited (SCB) have been
affirmed at 'BBB+' and their National Long-Term Ratings at
'AA(tha)'. Krung Thai Bank Public Company Limited's (KTB) Long-
Term IDR has been affirmed at 'BBB' and its National Long-Term
Rating at 'AA+(tha)'. The Outlooks are Stable.
Fitch has also affirmed the National Long-Term Ratings on the
banks' three subsidiaries, Kasikorn Securities Public Company
Limited (KS), SCB Securities Company Limited (SCBS) and KTB
Leasing Company Limited (KTBL) at 'AA-(tha)'.
A full list of rating actions is included at the end of this
commentary.
KEY RATING DRIVERS - IDRs, VRs, National Ratings and Senior Debt
The IDRs and National Ratings of BBL, KBANK and SCB are driven by
their Viability Ratings (VRs), while the IDR of KTB is driven by
its Support Rating Floor.
The National Ratings of KS, SCBS and KTBL are driven by their
strategic importance to their groups, and as a result, KS is
notched once, SCBS once and KTBL twice from their respective their
parent banks' ratings.
The senior debt ratings of BBL, KBANK, SCB and KTB are at the same
level as the IDRs (for international ratings) or National Ratings,
as the debt represent unsecured and unsubordinated obligations of
the banks.
The banks' VRs are driven by their strong domestic franchises,
sound capital levels, and acceptable loan loss reserves.
Fitch expects the operating environment to be more challenging in
the future, which may impact the banks' performance. The Thai
economy faces significant downside risks, with some signs already
seen in 1Q14 of deteriorating asset quality in the banking system.
However, Fitch believes that the buffers of these four banks
remain acceptable and sufficient for the banks to cope with a
normal cyclical economic downturn.
Fitch expects BBL's credit profile to remain resilient against
potential risks through its maintenance of strong capital and
reserve buffers, although its concentration in corporate loans is
relatively high compared with other major local banks. BBL
continues to maintain a high level of high-quality capital, with
Core Tier 1 ratio at 14.3% at end-2013. At the same time, BBL
also has the strongest level of loan loss reserve coverage among
Thai banks at 214% at end-2013.
Fitch expects KBANK's well-diversified portfolio and moderate risk
appetite, reflected by its slower loan growth (compared with local
peers) over the past few years, to provide some buffer against
future asset quality risks.
SCB's ratings reflect its sound franchise, particularly in retail
banking, and good performance. It has grown relatively quickly in
recent years, but at the same time it has maintained acceptable
levels of capital and improved its asset quality buffers.
KTB's VR is two notches lower than the other three banks,
reflecting its relatively weaker operating and financial
performance and the quasi-policy responsibility it bears (although
KTB has become more commercial in nature). While many of KTB's
metrics have improved over the past several years, key financial
ratios such as asset quality and leverage are still more
comparable to 'bbb-' rated international peers.
RATING SENSITIVITIES - IDRs, VRs, National Ratings and Senior Debt
Protracted economic weakness from a very severe downturn could
have a larger-than-expected impact on the banks' asset quality and
performance. The recent rise in private-sector leverage
(particularly in the household sector) may lead to unanticipated
adverse impacts on businesses and consumers in the event of a
sharp economic slowdown. If Fitch deems that this would have a
material negative impact on the banks' capital buffers, it could
take negative rating actions on the VRs of the four banks, and
subsequently on the IDRs and National Ratings of BBL, KBANK and
SCB. A further deepening and extension of the economic downturn
that is related to the current political uncertainties could lead
to a bigger impact on bank asset quality and absorption buffers.
A downgrade of Thailand's sovereign rating could lead to a similar
impact on the VRs of BBL, KBANK and SCB, as these are currently at
the same level as the sovereign.
KEY RATING DRIVERS - Support Rating and Support Rating Floor
The Support Ratings and Support Rating Floors of the four banks
reflect their clear systemic importance to the Thai banking
system. The four banks together account for more than 60% of
total commercial bank deposits and loans.
KTB's Support Rating Floor at 'BBB' is one notch higher than the
other three banks. This reflects KTB's strategic importance to
the government - it is the only state-owned commercial bank, with
close operational and branding links with the Finance Ministry.
RATING SENSITIVITIES - Support Rating and Support Rating Floor
A reduced propensity of the government to support systemically
important banks could result in a downgrade in the Support Ratings
and Support Rating Floors of the banks, but Fitch views this to be
unlikely in the medium term. A change in the sovereign ratings
could also lead to a change in the Support Ratings and Support
Rating Floors.
KEY RATING DRIVERS - Subordinated debt
BBL's US dollar subordinated debt is rated one notch below its
IDR. The four banks' Thai baht subordinated debts are rated one
notch below their National Long-Term Ratings. This is to reflect
their subordination in the capital structure and is in line with
Fitch's approach to rating such subordinated debt instruments of
financial institutions. These subordinated debts are legacy
instruments, which are not Basel III-compliant.
RATING SENSITIVITIES - Subordinated debt
The banks' subordinated debt ratings would be affected by changes
to the banks' IDR/ National Long-Term Ratings.
KEY RATING DRIVERS - Hybrid Tier 1
KTB's international hybrid Tier 1 rating of 'B' is rated five
notches below the VR, reflecting their going-concern risks that
include a non-cumulative coupon deferral feature that could be
triggered upon the bank posting a loss. The national hybrid Tier
1 rating also reflects this implied notching approach from the VR.
RATING SENSITIVITIES - Hybrid Tier 1
Any changes in KTB's VR could impact the ratings on KTB's hybrid
Tier 1 securities.
The list of rating actions is as follows:
BBL
Long-Term Foreign Currency IDR affirmed at 'BBB+'; Outlook Stable
Short-Term Foreign Currency IDR affirmed at 'F2'
Viability Rating affirmed at 'bbb+'
Support Rating affirmed at '2'
Support Rating Floor affirmed at 'BBB-'
National Long-Term Rating affirmed at 'AA(tha)'; Outlook Stable
National Short-Term Rating affirmed at 'F1+(tha)'
Senior unsecured USD3bn GMTN programme affirmed at 'BBB+'
Long-term foreign currency senior unsecured notes affirmed at
'BBB+'
Long-term foreign currency subordinated debt affirmed at 'BBB'
National long-term subordinated debt affirmed at 'AA-(tha)'
KBANK
Long-Term Foreign Currency IDR affirmed at 'BBB+'; Outlook Stable
Short-Term Foreign Currency IDR affirmed at 'F2'
Viability Rating affirmed at 'bbb+'
Support Rating affirmed at '2'
Support Rating Floor affirmed at 'BBB-'
National Long-Term Rating affirmed at 'AA(tha)'; Outlook Stable
National Short-Term Rating affirmed at 'F1+(tha)'
Senior unsecured USD2.5bn EMTN programme affirmed at 'BBB+'
Long-term foreign currency senior unsecured debt affirmed at
'BBB+'
National short-term senior unsecured debt rating affirmed at
'F1+(tha)'
National long-term subordinated debt rating affirmed at 'AA-(tha)'
SCB
Long-Term Foreign Currency IDR affirmed at 'BBB+'; Outlook Stable
Short-Term Foreign Currency IDR affirmed at 'F2'
Viability Rating affirmed at 'bbb+'
Support Rating affirmed at '2'
Support Rating Floor affirmed at 'BBB-'
National long-term rating affirmed at 'AA(tha)'; Outlook Stable
National short-Term rating affirmed at 'F1+(tha)'
Senior unsecured USD3.5bn MTN programme affirmed at 'BBB+'
Long-term foreign currency senior unsecured debt affirmed at
'BBB+'
National rating on short-term senior unsecured debt programme
affirmed at 'F1+(tha)'
National rating on long-term subordinated debt affirmed at 'AA-
(tha)'
KTB
Long-Term Foreign-Currency IDR affirmed at 'BBB'; Stable Outlook
Short-Term Foreign-Currency IDR affirmed at 'F3'
Viability Rating affirmed at 'bbb-'
Support Rating affirmed at '2'
Support Rating Floor affirmed at 'BBB'
National Long-Term Rating affirmed at 'AA+(tha)'; Stable Outlook
National Short-Term Rating affirmed at 'F1+(tha)'
Senior unsecured USD 2.5bn EMTN programme affirmed at 'BBB'
Senior unsecured notes affirmed at 'BBB'
International rating for hybrid Tier 1 securities affirmed at 'B'
National rating on THB30bn short-term debenture programme affirmed
at 'F1+(tha)'
National subordinated debt rating affirmed at 'AA(tha)'
National rating hybrid Tier 1 securities affirmed at 'BBB(tha)'
KS
National Long-Term Rating affirmed at 'AA-(tha)'; Stable Outlook
National Short-Term Rating affirmed at 'F1+(tha)'
SCBS
National Long-Term Rating affirmed at 'AA-(tha)'; Stable Outlook
National Short-Term Rating affirmed at 'F1+(tha)'
KTBL
National Long-Term Rating affirmed at 'AA-(tha)'; Stable Outlook
National Short-Term Rating affirmed at 'F1+(tha)'
===============
X X X X X X X X
===============
* BOND PRICING: For the Week May 26 to May 30, 2014
---------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA
---------
BOART LONGYEAR MAN 7.00 04/01/21 USD 74.88
BOART LONGYEAR MAN 7.00 04/01/21 USD 76.38
GRIFFIN COAL MININ 9.50 12/01/16 USD 72.13
GRIFFIN COAL MININ 9.50 12/01/16 USD 72.13
MIDWEST VANADIUM P 11.50 02/15/18 USD 54.00
MIDWEST VANADIUM P 11.50 02/15/18 USD 53.03
MIRABELA NICKEL LT 8.75 04/15/18 USD 24.00
MIRABELA NICKEL LT 8.75 04/15/18 USD 24.00
NEW SOUTH WALES TR 0.50 09/14/22 AUD 73.78
NEW SOUTH WALES TR 0.50 10/07/22 AUD 73.56
NEW SOUTH WALES TR 0.50 12/16/22 AUD 73.96
NEW SOUTH WALES TR 0.50 10/28/22 AUD 73.37
NEW SOUTH WALES TR 0.50 03/30/23 AUD 72.95
NEW SOUTH WALES TR 0.50 11/18/22 AUD 73.17
NEW SOUTH WALES TR 0.50 02/02/23 AUD 74.13
RELIANCE RAIL FINA 2.95 09/26/18 AUD 73.88
RELIANCE RAIL FINA 2.97 09/26/20 AUD 63.38
RELIANCE RAIL FINA 2.95 09/26/18 AUD 73.88
RELIANCE RAIL FINA 2.97 09/26/20 AUD 63.38
TREASURY CORP OF V 0.50 03/03/23 AUD 73.43
TREASURY CORP OF V 0.50 11/12/30 AUD 52.49
CHINA
-----
CHINA GOVERNMENT B 1.64 12/15/33 CNY 63.66
INDONESIA
---------
DAVOMAS INTERNATIO 11.00 12/08/14 USD 19.50
DAVOMAS INTERNATIO 11.00 12/08/14 USD 19.50
INDONESIA TREASURY 6.38 04/15/42 IDR 75.03
PERUSAHAAN PENERBI 6.75 04/15/43 IDR 74.80
PERUSAHAAN PENERBI 6.10 02/15/37 IDR 70.50
INDIA
-----
3I INFOTECH LTD 5.00 04/26/17 USD 34.25
CORE EDUCATION & T 7.00 05/07/15 USD 9.50
COROMANDEL INTERNA 9.00 07/23/16 INR 16.09
GTL INFRASTRUCTURE 2.53 11/09/17 USD 31.63
INDIA GOVERNMENT B 0.23 01/25/35 INR 19.68
JCT LTD 2.50 04/08/11 USD 20.00
MASCON GLOBAL LTD 2.00 12/28/12 USD 10.00
PRAKASH INDUSTRIES 5.25 04/30/15 USD 73.63
PRAKASH INDUSTRIES 5.63 10/17/14 USD 74.50
PYRAMID SAIMIRA TH 1.75 07/04/12 USD 1.00
REI AGRO LTD 5.50 11/13/14 USD 55.88
REI AGRO LTD 5.50 11/13/14 USD 55.88
SHIV-VANI OIL & GA 5.00 08/17/15 USD 27.04
SUZLON ENERGY LTD 5.00 04/13/16 USD 73.24
JAPAN
-----
ELPIDA MEMORY INC 0.70 08/01/16 JPY 8.63
ELPIDA MEMORY INC 0.50 10/26/15 JPY 14.75
ELPIDA MEMORY INC 2.10 11/29/12 JPY 11.75
ELPIDA MEMORY INC 2.03 03/22/12 JPY 15.63
ELPIDA MEMORY INC 2.29 12/07/12 JPY 15.63
JAPAN EXPRESSWAY H 0.50 03/18/39 JPY 71.13
JAPAN EXPRESSWAY H 0.50 09/17/38 JPY 71.72
KOREA
------
EXPORT-IMPORT BANK 0.50 10/23/17 TRY 71.79
EXPORT-IMPORT BANK 0.50 12/22/17 BRL 66.78
EXPORT-IMPORT BANK 0.50 12/22/17 TRY 70.21
EXPORT-IMPORT BANK 0.50 12/22/16 BRL 74.96
EXPORT-IMPORT BANK 0.50 11/21/17 BRL 67.64
GREAT KODIT SECURI 10.00 09/29/14 KRW 70.33
HYUNDAI MERCHANT M 7.05 12/27/42 KRW 45.90
KIBO ABS SPECIALTY 10.00 08/22/17 KRW 32.30
KIBO ABS SPECIALTY 10.00 02/19/17 KRW 29.78
KIBO ABS SPECIALTY 10.00 09/04/16 KRW 30.44
KOREA LAND & HOUSI 3.99 03/26/44 KRW 73.69
SINBO CONSTRUCTION 10.00 09/29/14 KRW 70.33
SINBO SECURITIZATI 5.00 08/16/17 KRW 30.08
SINBO SECURITIZATI 5.00 08/16/16 KRW 30.09
SINBO SECURITIZATI 5.00 08/16/17 KRW 30.08
SINBO SECURITIZATI 5.00 08/31/16 KRW 29.84
SINBO SECURITIZATI 5.00 08/31/16 KRW 29.84
SINBO SECURITIZATI 5.00 02/21/17 KRW 27.94
SINBO SECURITIZATI 5.00 02/21/17 KRW 29.44
SINBO SECURITIZATI 5.00 01/29/17 KRW 29.55
SINBO SECURITIZATI 5.00 06/29/16 KRW 30.06
SINBO SECURITIZATI 5.00 05/27/16 KRW 30.14
SINBO SECURITIZATI 5.00 05/27/16 KRW 30.14
SINBO SECURITIZATI 5.00 07/08/17 KRW 30.19
SINBO SECURITIZATI 5.00 07/08/17 KRW 30.19
SINBO SECURITIZATI 5.00 09/28/15 KRW 70.78
SINBO SECURITIZATI 5.00 10/05/16 KRW 29.82
SINBO SECURITIZATI 5.00 10/05/16 KRW 29.82
SINBO SECURITIZATI 5.00 06/07/17 KRW 28.66
SINBO SECURITIZATI 5.00 06/07/17 KRW 28.66
SINBO SECURITIZATI 5.00 12/13/16 KRW 29.64
SINBO SECURITIZATI 5.00 08/24/15 KRW 70.84
SINBO SECURITIZATI 4.60 06/29/15 KRW 72.51
SINBO SECURITIZATI 4.60 06/29/15 KRW 72.51
SINBO SECURITIZATI 5.00 09/13/15 KRW 73.13
SINBO SECURITIZATI 5.00 09/13/15 KRW 62.23
SINBO SECURITIZATI 8.00 02/02/15 KRW 74.95
SINBO SECURITIZATI 5.00 02/02/16 KRW 73.05
SINBO SECURITIZATI 5.00 01/19/16 KRW 72.47
SINBO SECURITIZATI 5.00 12/07/15 KRW 72.54
SINBO SECURITIZATI 5.00 03/14/16 KRW 72.40
SINBO SECURITIZATI 8.00 03/07/15 KRW 74.26
SINBO SECURITIZATI 5.00 07/19/15 KRW 70.97
SINBO SECURITIZATI 5.00 03/13/17 KRW 29.45
SINBO SECURITIZATI 5.00 03/13/17 KRW 29.45
SINBO SECURITIZATI 5.00 07/26/16 KRW 29.94
SINBO SECURITIZATI 5.00 07/26/16 KRW 29.94
TONGYANG CEMENT & 7.50 07/20/14 KRW 70.00
TONGYANG CEMENT & 7.30 06/26/15 KRW 70.00
TONGYANG CEMENT & 7.50 04/20/14 KRW 70.00
TONGYANG CEMENT & 7.50 09/10/14 KRW 70.00
TONGYANG CEMENT & 7.30 04/12/15 KRW 70.00
U-BEST SECURITIZAT 5.50 11/16/17 KRW 29.80
WOONGJIN ENERGY CO 2.00 12/19/16 KRW 60.47
SRI LANKA
---------
SRI LANKA GOVERNME 5.35 03/01/26 LKR 65.18
MALAYSIA
--------
BANDAR MALAYSIA SD 0.35 02/20/24 MYR 64.14
PHILIPPINES
-----------
BAYAN TELECOMMUNIC 13.50 07/15/06 USD 22.75
BAYAN TELECOMMUNIC 13.50 07/15/06 USD 22.75
SINGAPORE
---------
BAKRIE TELECOM PTE 11.50 05/07/15 USD 11.10
BAKRIE TELECOM PTE 11.50 05/07/15 USD 9.88
BLD INVESTMENTS PT 8.63 03/23/15 USD 30.13
BUMI CAPITAL PTE L 12.00 11/10/16 USD 44.80
BUMI CAPITAL PTE L 12.00 11/10/16 USD 43.00
BUMI INVESTMENT PT 10.75 10/06/17 USD 42.75
BUMI INVESTMENT PT 10.75 10/06/17 USD 41.04
ENERCOAL RESOURCES 9.25 08/05/14 USD 44.32
INDO INFRASTRUCTUR 2.00 07/30/10 USD 1.88
THAILAND
--------
G STEEL PCL 3.00 10/04/15 USD 13.50
MDX PCL 4.75 09/17/03 USD 17.13
VIETNAM
-------
DEBT AND ASSET TRA 1.00 10/10/25 USD 50.50
*********
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 ***