/raid1/www/Hosts/bankrupt/TCRAP_Public/140819.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, August 19, 2014, Vol. 17, No. 163
Headlines
A U S T R A L I A
AUSTRALIAN OUTBACK: Placed in Administration
FOREST CREEK: Faces Insolvent Trading Claims
NEWCREST MINING: Full-Year Loss Narrows to AUD2.2 Billion
ROBAINA JOINERY: In Administration; First Meeting Set Aug. 25
C H I N A
CIFI HOLDINGS: Moody's Places B1 CFR on Review for Upgrade
TEXHONG TEXTILE: Moody's Affirms Ba3 Corporate Family Rating
H O N G K O N G
CHINA FISHERY: Moody's Says Q3 2014 Results No Impact on B2 CFR
CHINA FISHERY: S&P Lowers CCR to 'B' & Puts on CreditWatch Neg.
PHYSICAL PROPERTY: Incurs HK$251,000 Net Loss in Second Quarter
I N D I A
ABIR INFRASTRUCTURE: CRISIL Cuts Rating on INR5.91BB Loans to D
ACTION BATTERIES: CRISIL Upgrades Rating on INR200MM Loan to B+
AKMG ALLOYS: CRISIL Rates INR230M Loans at B+; Suspension Revoked
ALVA EDUCATION: ICRA Revises Rating on INR106cr Term Loan to B+
AMBAY COKE: CRISIL Reaffirms 'D' Rating on INR715MM Loans
ANAND EDUCATION: CRISIL Reaffirms 'B' Rating on INR150MM Loan
BHAGWAN COTTON: CRISIL Raises Rating on INR160MM Loans to 'B+'
BIR ENGINEERING: CRISIL Lowers Rating on INR65MM Loan to 'B+'
CHANDI CHARAN: CRISIL Reaffirms 'D' Rating on INR135.4MM Loans
CHENDURAN COTSPIN: ICRA Ups Rating on INR36.5cr Loans to 'B+'
CHETAN CABLETRONICS: CRISIL Reaffirms B Rating on INR130MM Loans
DELTA SUGARS: CRISIL Upgrades Rating on INR630MM Loans to 'B'
ELKAYPEE SPINNERS: ICRA Upgrades Rating on INR10cr Loans to 'B+'
ESHWARNATH CONSTRUCTIONS: CRISIL Reaffirms INR50M Loan B Rating
FAB TRADE: ICRA Reaffirms 'B+' Rating on INR11.50cr Loan
GANPATI FOODS: CRISIL Reaffirms 'B+' Rating on INR185MM Loans
GREEN SHIELD: CRISIL Upgrades Rating on INR85MM Loan to 'B+'
GUDIMETLA SUNDARA: CRISIL Reaffirms B+ Rating on INR150MM Loan
HARIOM INDUSTRIES: CRISIL Assigns 'B+' Rating to INR55MM Loans
HARSHIT POWER: ICRA Reaffirms 'D' Rating on INR40.20cr Loans
JOTINDRA STEEL: ICRA Suspends 'B-' Rating on INR29cr Loan
KINGFISHER AIRLINES: IDBI Bank Declares Firm as Wilful Defaulter
KNOX IMPEX: CRISIL Reaffirms 'B+' Rating on INR50MM Loans
M. M. AUTOMOBILES: CRISIL Assigns 'B+' Rating to INR40MM Loans
MAHE EDUCATIONAL: ICRA Upgrades Rating on INR5.23cr Loan to 'B+'
MEGA VITRIFIED: ICRA Assigns 'B' Rating to INR11.1cr Loans
MILADI FASHIONS: ICRA Suspends B/A4 Rating on INR15cr Bank Loans
MKG COMPUTERS: CRISIL Reaffirms 'B' Rating on INR100MM Loans
MOKIA GREEN: CRISIL Assigns 'B+' Rating to INR250MM Bank Loan
NICE POULTRY: CRISIL Upgrades Rating on INR110MM Loans to 'B-'
PAYYANUR MEDICAL: CRISIL Assigns 'B' Rating to INR150MM Loan
PIONEER FABRICATORS: CRISIL Reaffirms C Rating on INR101.6M Loans
PRAVEEN SPINNERS: CRISIL Lowers Rating on INR569MM Loan to 'D'
RAGHAV MADHAV: ICRA Reaffirms 'B+' Rating on INR7cr Loans
SANGAM FORGINGS: CRISIL Reaffirms 'B' Rating on INR69MM Loans
SARAVANA TEXTILES: ICRA Reaffirms 'B+' Rating on INR15.5cr Loans
SRI LAKSHMI: ICRA Assigns 'B' Rating to INR11.7cr Loans
SURYA INNS: ICRA Assigns 'B+' Rating to INR20cr Term Loan
T B S MINES: CRISIL Reaffirms 'D' Rating on INR80MM Loans
UDUPI POWER: CRISIL Reaffirms D Rating on INR42.23BB Loans
ULTIMA SWITCHGEARS: CRISIL Reaffirms B+ Rating on INR75MM Loans
I N D O N E S I A
FAJAR SURYA: Fitch Affirms 'B+' IDR; Outlook Stable
N E W Z E A L A N D
LAKEVIEW RESORTS: Receivership 'Tidying Up'
SOVEREIGN STATION: Swamp Kauri Firm Goes Into Liquidation
T A I W A N
GLOBAL LIFE: Fubon, Cathay Mulls Acquiring Ailing Insurers
X X X X X X X X
* BOND PRICING: For the Week August 11 to August 15, 2014
- - - - -
=================
A U S T R A L I A
=================
AUSTRALIAN OUTBACK: Placed in Administration
--------------------------------------------
Cliff Sanderson -- cliff@dissolve.com.au -- of Dissolve Pty Ltd
was appointed as administrator of Australian Outback Apparel Pty
Ltd on Aug. 14, 2014.
A first meeting of the creditors of the Company will be held at
Level 8, 80 Clarence Street, in Sydney, on Aug. 26, 2014, at 11:00
a.m.
FOREST CREEK: Faces Insolvent Trading Claims
--------------------------------------------
Eloise Keating at SmartCompany reports that Consumer Affairs and
Fair Trading in Tasmania has issued a public warning about a
collapsed Tasmanian homewares business that is said to have short-
changed dozens of customers before sliding into liquidation.
SmartCompany understands a collection agency has also been
appointed to attempt to recover more than AUD131,691.69 in
insolvent trading claims against the director of Forest Creek
Investments TAS, Tammy Moore.
Forest Creek Investments traded as MAB Interiors in Kingston,
Tasmania, but Consumer Affairs and Fair Trading director Mark
Cocker said in a public warning notice in June the business has
now closed, SmartCompany relates.
SmartCompany notes that Renee Sarah Di Carlo and John Kukulovski
of Jirsch Sutherland were appointed liquidators of Forest Creek
Investments TAS on June 19 and according to a notice lodged with
the Australian Securities and Investments Commission, a meeting of
creditors was scheduled to take place in Melbourne on July 7.
But Jarrod Sierocki, managing director of insolvency consultancy
Insolvency Guardian, which is also involved in the liquidation,
told SmartCompany no company accounts or records have been handed
over to the liquidators.
MAB Interiors' assets, including stock and intellectual property,
were sold to a man named David Forrester for around AUD10,000
immediately prior to the company collapsing, SmartCompany says.
According to SmartCompany, Mr. Sierocki alleges Mr. Moore was
aware the company was "in trouble" and chose to sell the company's
assets to "defeat creditors".
He said in situations where a company director does not cooperate
with the liquidator, there is a "presumption of insolvency" almost
immediately, the report relates.
"It's also an offence under the Corporations Act, so ASIC would
normally get involved," the report quotes Mr. Sierocki as saying.
SmartCompany relates that Mr. Sierocki said it is difficult to
estimate the size of MAB Interiors' debts as without the company's
books and records, the liquidators are unable to determine how
many unsecured creditors there are.
In a public warning about Mr. Moore and her associate David
Medwin, Mr. Cocker urged any consumers who had paid money to MAB
Interiors since September 2013 to contact Consumer Affairs and
Fair Trading, SmartCompany adds.
According to the report, Mr. Cocker said his office has received
"a large number of complaints" from consumers who had placed
orders and paid up to a 50% for household furnishings from MAB
Interiors, but had either not received the goods in the time
promised, had received items that were not consistent with their
order, or had not received goods at all.
SmartCompany adds that Mr. Cocker said his office has attempted to
contact the owners of the business "who have failed to provide any
information and have failed to cooperate in any way about the
closure of their business, the orders and money taken".
NEWCREST MINING: Full-Year Loss Narrows to AUD2.2 Billion
---------------------------------------------------------
David Stringer at Bloomberg News reports that Newcrest Mining Ltd.
posted a full-year loss after a AUD2.35 billion ($2.2 billion)
writedown on the value of four mines.
The net loss was AUD2.2 billion in the 12 months ended June 30,
from a net loss of AUD5.78 billion a year earlier, the company
said, Bloomberg relates. It reported a AUD6.2 billion writedown
last year, the report says.
"The most significant component of the write downs related to
Lihir" mine in Papua New Guinea," says Chief Executive Officer
Sandeep Biswas, relays Bloomberg. "While we have realized some
initial operating improvements, I am not satisfied with either the
current operating performance or the cash generation of the
business."
Newcrest Mining Limited ((ASX:NCM) -- http://www.newcrest.com.au/
-- is a gold, copper and silver producer that has operations and
exploration projects in Australia, the Pacific region, Asia and
West Africa.
ROBAINA JOINERY: In Administration; First Meeting Set Aug. 25
-------------------------------------------------------------
Gavin Moss and Nick Combis of Vincents Chartered Accountants were
appointed as administrators of Robaina Joinery Pty Ltd on
Aug. 13, 2014.
A first meeting of the creditors of the Company will be held at
the boardroom of Servcorp, Level 56, MLC Centre, 19-29 Martin
Place, in Sydney, on Aug. 25, 2014, at 3:00 p.m.
=========
C H I N A
=========
CIFI HOLDINGS: Moody's Places B1 CFR on Review for Upgrade
----------------------------------------------------------
Moody's Investors Service has placed CIFI Holdings (Group) Co.
Ltd's (CIFI) B1 corporate family rating and B2 senior unsecured
rating on review for upgrade.
Rating Rationale
"The review reflects Moody's expectation that CIFI's credit
profile will continue to improve, driven by its strong sales
growth and disciplined approach to financial management," says
Franco Leung, a Moody's Vice President and Senior Analyst.
CIFI reported a 44% year-on-year growth in contracted sales in the
first seven months of 2014 to RMB11.72 billion, or 53% of its
full-year contracted sales target.
This achievement follows strong sales growth of around 60% year-
on-year in 2013.
Moody's expects that the company will likely achieve its full year
target of RMB22 billion in 2014.
While achieving high sales growth, CIFI has also slightly improved
its gross profit margin, which increased to 26.4% in 1H 2014 from
25.3% in 1H 2013.
This trend demonstrates that the company has maintained its
profitability, while adhering to its strategy of rapid asset
turnover, against a backdrop of general declining profit margin
trends for most of China's developers.
"CIFI's financial metrics will also likely improve on Moody's
expectation that recognized revenue will increase significantly in
2H 2014," adds Leung, who is the lead Analyst for CIFI.
At end-June 2014, CIFI had recorded RMB16.2 billion in contracted
but unrecognized sales, according to the company. Therefore while
EBITDA interest coverage was only at 1.8x for the 12-month period
ended 30 June 2014, Moody's expects that its full-year EBITDA
interest coverage will improve to around 2.0x-2.5x.
Moody's also expects CIFI's financing costs to gradually trend
downwards as it continues to obtain offshore debt to reduce its
proportion of trust financing.
Its onshore trust and other loans -- as a percentage of total debt
-- fell to 9% at end-June 2014 from 18% at end-2013. This has
helped to lower the company's weighted average interest cost,
which declined to 8.7% in 1H 2014 from 9.2% for FY 2013.
Gross debt increased slightly to RMB13.76 billion at end-June 2014
from RMB13.37 billion at end-2013. Adjusted debt/capitalization
remained largely stable at around 60%.
Debt leverage has kept stable due to rapid sales growth and the
slowdown in land acquisition spending this year.
CIFI only showed RMB1.9 billion in attributable land costs in 1H
2014 and is expected to continue with this conservative approach
in 2H 2014.
Thus, Moody's expects adjusted debt/capitalization to stay around
55%-60% over the next 12 months.
CIFI's liquidity position is sound. Its reported cash on hand of
RMB6.4 billion at end-June 2014 covers about 2.8x of its short-
term debt.
Moody's believes that its cash balance and operating cash flow
over the next 12 months will fully cover short-term maturing debt
of RMB2.3 billion and committed land payment premiums of around
RMB1.9 billion.
In its review, Moody's will evaluate CIFI's construction spending
requirements, future land acquisition strategy, growth plan,
investments in joint ventures, and the likelihood of the company
maintaining its current financial profile in the medium term.
Moody's expects to conclude the review in the near term.
The principal methodology used in this rating was Global
Homebuilding Industry published in March 2009.
CIFI Holdings (Group) Co. Ltd. was listed on the Hong Kong Stock
Exchange in November 2012. The company focuses on developing
residential and commercial properties, mainly in the Yangtze River
Delta Region. It has also expanded to the Pan Bohai Rim and the
Central Western Region. It owned more than 60 projects and had a
land bank of 7.5 million square meters attributable to the Group
as of 30 June 2014.
TEXHONG TEXTILE: Moody's Affirms Ba3 Corporate Family Rating
------------------------------------------------------------
Moody's Investors Service has affirmed the Ba3 corporate family
and senior unsecured bond ratings of Texhong Textile Group
Limited.
At the same time, the outlook on the ratings has been revised to
negative from stable.
Ratings Rationale
"The negative outlook primarily reflects Texhong's debt level at
end-June 2014, which was higher than Moody's had expected," says
Chenyi Lu, a Moody's Vice President and Senior Analyst.
Texhong's adjusted debt grew significantly to RMB5.7 billion at
end-June 2014 from RMB4.7 billion at end-2013, driven mostly by
weak earnings, sizeable working capital deficits -- which were
mainly due to higher inventories -- and large capital expenditures
to support the expansion of its production capacity in Vietnam and
China.
Given that Texhong has largely completed its current production
expansion in Vietnam and China, Moody's expects that the company
will reduce its capex to about RMB150 million in 2H 2014 and
RMB200 million in 2015, versus RMB651 million in 1H 2014.
In addition, its adjusted EBITDA margin fell to 10.8% in 1H 2014
from 18.1% in 1H 2013, which resulted in a 24.7% year-on-year
decline in its adjusted EBITDA to RMB492 million in 1H 2014. The
decline was owing to the depreciation of the RMB, and lower yarn
prices; the latter of which was because of the Chinese
government's move to cut the cotton auction price.
As a result, Texhong's adjusted debt/EBITDA rose to 4.6x for the
12 months to 30 June 2014 from 3.4x in 2013. This level of
leverage is weak for its Ba3 ratings.
"The negative outlook also reflects uncertainties over whether or
not Texhong can improve its financial leverage to a level more
consistent with its Ba3 ratings over the next 12-18 months,
particularly given its heavy exposure to volatile cotton prices,"
says Lu, who is also Moody's Lead Analyst for Texhong.
Texhong plans to lower its debt levels by lowering its inventory
days, and capital expenditures. While these measures are credit
positive, its ability to execute these initiatives remains to be
tested.
The ratings outlook could return to stable if Texhong: (1)
continues to maintain its current sales traction; (2) lowers its
debt levels by lowering capex and containing working capital
deficits to a moderate level; and (3) improves its profitability,
such that its adjusted debt/EBITDA stays below 4x and its adjusted
EBITDA margin exceeds 11%-12%.
On the other hand, Texhong's ratings could be downgraded if: (1)
the company adopts an aggressive cotton-procurement strategy,
which exposes it to a greater risk of cotton-price fluctuations;
(2) its debt level remains elevated due to aggressive capacity
expansion and/or large working capital deficits; (3) its
profitability remains weak; and/or (4) its liquidity deteriorates
significantly.
Moody's could also consider a ratings downgrade if the company's
adjusted debt/EBITDA consistently exceeds 4.0x-4.5x and adjusted
EBITDA margin stays below 10% on a sustained basis.
The principal methodology used in this rating was Global
Manufacturing Companies published in July 2014.
Established in 1997 and listed on the Hong Kong Stock Exchange in
2004, Texhong Textile Group Limited specializes in producing core-
spun yarn and textile products.
The company currently operates 15 yarn production bases; 12 in the
Yangtze River Delta and Shandong Province in China, and three in
Vietnam. Its chairman, Mr. Tianzhu Hong, is the majority
shareholder, with a 54% stake in the company.
================
H O N G K O N G
================
CHINA FISHERY: Moody's Says Q3 2014 Results No Impact on B2 CFR
---------------------------------------------------------------
Moody's Investors Service says that China Fishery Group Limited's
(CFG) fiscal Q3 2014 (April to June) results have no impact on its
B2 corporate family rating and the senior unsecured bond rating on
notes issued by its subsidiary -- CFG Investment S.A.C -- or the
stable outlook for the ratings.
"Changes to CFG's sales mix have had no impact on revenue
generation because the growth in its fishmeal business has
sufficiently covered the loss of revenue due to its exit from the
contract supply business," says Lina Choi, a Moody's Vice
President and Senior Analyst.
The first full nine-month revenue contribution from CFG's Peruvian
fishmeal business was US$325 million, up by US$242 million from a
year ago.
By contrast, revenue from the contract supply business fell to
US$130 million from US$320.8 million.
"CFG also booked an improved EBITDA, reflecting cost savings from
integrating its Peruvian fishmeal business," adds Choi.
For Q3, CFG registered total EBITDA of US$65 million, up 11% from
a year ago, and the result of lower average fixed costs from
increased production.
Debt/EBITDA for the 12 months ended June 2014 was 4.5x, in line
with Moody's expectations.
CFG acquired Copeinca ASA (Copeinca Norway, unrated) and
Corporaci¢n Pesquera Inca S.A.C. (Copeinca, B2 stable) -- the
global third largest fishmeal producer -- in August 2013.
The combination of Copeinca and with CFG's Peruvian fishmeal
operations resulted in a doubling of CFG's fishmeal production
capacity.
Since the completion of the transaction, CFG has rationalized
plants, vessel utilization, and third-party purchasing contracts.
These moves have resulted in meaningful cost savings, and Moody's
believes that they could be sustainable as they derive from better
economies of scale.
Moody's notes that CFG received cash repatriations with the
termination of its Russian supply contracts, and reported cash and
equivalents of US$132 million at 28 June 2014.
Moody's expects a further $120 million cash repatriation from its
Russian suppliers in the next 12 months.
But CFG's liquidity position could be vulnerable if it is unable
to obtain consent from its bond holders on cross-guarantees and
reorganization. Please refer to Moody's announcement of 18 July
2014 for details of the consent solicitation. Moody's notes that
CFG has extended the period of consent solicitation to August 21,
2014.
Moody's will monitor closely the progress of the consent
solicitation. If the company cannot obtain the necessary consent
from bond holders, Moody's will review the company's ratings.
The principal methodology used in these ratings was the Global
Protein and Agriculture Industry published in May 2013.
China Fishery Group Ltd is headquartered in Hong Kong and listed
in Singapore. It is engaged in the Peruvian fishmeal and fish oil
business and fishing fleet operations. China Fishery is 46.5%
effectively owned by the Pacific Andes group, through Pacific
Andes International Holdings Ltd (PAIH), a Hong Kong-listed
integrated fish and seafood products processor. The Carlyle Group,
a global alternative asset management firm, holds an 11.1% stake
in the company.
CHINA FISHERY: S&P Lowers CCR to 'B' & Puts on CreditWatch Neg.
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term corporate
credit rating on China Fishery Group Ltd. to 'B' from 'B+'. At
the same time, S&P lowered its issue rating on senior unsecured
notes due 2019 issued by CFG Investment S.A.C. to 'B' from 'B+';
China Fishery guarantees the notes. Our Greater China regional
scale rating on China Fishery and the outstanding senior unsecured
notes remain at 'cnBB-'. S&P has placed all the ratings on
CreditWatch with negative implications.
S&P downgraded China Fishery because of its weakened credit risk
profile. In S&P's view, the company's revenues and profitability
will remain under pressure over the next 12 months for two
reasons--weaker-than-expected cash flow from its Peruvian fishmeal
business, and significantly reduced revenue from its contract
supply business.
S&P placed the ratings on CreditWatch because of heightened
refinancing risk on the notes issued by Corporacion Pesquera Inca
S.A.C. (Copeinca; B+/Watch Neg/--), a wholly owned operating
entity of China Fishery acquired in August 2013, as well as a
US$650 million credit facility granted to China Fishery early this
year. The credit facility requires Copeinca to provide a
guarantee. However, its outstanding bond prohibits such a
guarantee. CFG had planned to redeem the Copeinca bond early but
has not done so.
In S&P's view, it is uncertain if the lenders of the credit
facility will call an early repayment on the US$650 million loan
if the company fails to secure the guarantee. Copeinca is
currently soliciting consent from the holders of its US$250
million notes to amend the covenants and allow it to guarantee
CFG's borrowings. The deadline for getting the consent was
extended to Aug. 21, 2014, from the end of July. If Copeinca does
not receive sufficient consent, it might have to redeem the notes
and that would pose a significant pressure on the company's
liquidity.
"We aim to resolve the CreditWatch within three months, depending
on the outcome of China Fishery's consent solicitation and its
refinancing prospects," said Standard & Poor's credit analyst
Lillian Chiou. "We may lower the ratings by one or more notches
if China Fishery's or the Pacific Andes group's liquidity profile
deteriorates. This could happen if Copeinca fails to secure
bondholders' consent to amend the covenants on the notes. If
China Fishery cannot present any credible refinancing or funding
plan, its liquidity will deteriorate."
Standard & Poor's may affirm the ratings if China Fishery secures
refinancing and has sufficient liquidity for its debt obligations
and business operations.
PHYSICAL PROPERTY: Incurs HK$251,000 Net Loss in Second Quarter
---------------------------------------------------------------
Physical Property Holdings Inc. filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing a
net loss and total comprehensive loss of HK$251,000 on HK$243,000
of total operating revenues for the three months ended June 30,
2014, as compared with a net loss and comprehensive loss of
HK$43,000 on HK$275,000 of total operating revenues for the same
period last year.
For the six months ended June 30, 2014, the Company reported a net
loss and comprehensive loss of HK$429,000 on HK$520,000 of total
operating revenues as compared with a net loss and total
comprehensive loss of HK$180,000 on HK$503,000 of total operating
revenues for the same period in 2013.
The Company's balance sheet at June 30, 2014, showed HK$9.50
million in total assets, HK$11.44 million in total liabilities,
all current, and a HK$1.93 million total stockholders' deficit.
Cash and cash equivalent balances as of June 30, 2014, was
HK$5,000.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/dGfj1A
About Physical Property
Located in Hong Kong, Physical Property Holdings Inc., through its
wholly-owned subsidiary, Good Partner Limited, owns five
residential apartments located in Hong Kong. The Company was
incorporated in the State of Delaware.
=========
I N D I A
=========
ABIR INFRASTRUCTURE: CRISIL Cuts Rating on INR5.91BB Loans to D
---------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Abir
Infrastructure Pvt Ltd to 'CRISIL D/CRISIL D' from 'CRISIL
C/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 3982.5 CRISIL D (Downgraded from
'CRISIL A4')
Cash Credit 1000.0 CRISIL D (Downgraded from
'CRISIL C')
Letter of Credit 917.5 CRISIL D (Downgraded from
'CRISIL A4')
Proposed Long-Term 10.0 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL C')
The rating downgrade reflects delay in servicing of debt
obligations by AIPL. The company's bank guarantee was invoked and
its cash credit account is irregular. The delays in debt servicing
and overdues in bank facilities are on account of stretched
liquidity profile arising from delay in project execution pending
environment clearances, and delays in payments by customers.
Moreover, AIPL has limited financial flexibility because of large
working capital requirements and is exposed to the risk of delays
in execution of projects. However, the company benefits from
extensive experience of promoters in the construction industry.
AIPL was set up in 2005 by Mr. Y Y Butchi Babu and Mr. K
Gnyandeep, and began operations in 2007. The company undertakes
construction activity in the infrastructure sector with focus on
the power sector. It provides engineering, procurement, and
construction services on turnkey basis, primarily in the
hydroelectric power and thermal power segments.
ACTION BATTERIES: CRISIL Upgrades Rating on INR200MM Loan to B+
---------------------------------------------------------------
CRISIL has upgraded its ratings on the long-term bank facilities
of Action Batteries Pvt Ltd to 'CRISIL B+/Stable' from 'CRISIL
B/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 200 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
The upgrade in the long-term rating reflects CRISIL's belief that
ABPL's credit risk profile will improve over the medium term,
driven by scale-up in operations, moderate operating
profitability, and higher cash accruals. The cash accruals are
expected to be adequate to service the maturing term debt. The top
line improved to around INR617.9 million in 2013-14 (refers to
financial year, April 1 to March 31) from around INR525.3 million
in the previous year, while cash accruals increased to around
INR20 million from around INR14 million during the same period.
Improved top line and stable operating margin have resulted in a
stronger capital structure. The gearing reduced to around 2.91
times as on March 31, 2014 from 3.46 times a year ago. The revenue
is expected to increase further over the medium term, supported by
stronger demand from customers, strengthening the financial risk
profile.
The ratings continue to reflect ABPL's working-capital-intensive
operations, and exposure to intense competition from both
organised and unorganised players. The ratings also factor in the
company's below-average financial risk profile, marked by low net
worth. These rating weaknesses are partially offset by the
company's moderate market position in the lead-acid batteries
segment, product diversification, and its promoters' extensive
industry experience.
Outlook: Stable
CRISIL believes that ABPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if substantial and sustained
improvement in revenue and profitability, or a sizeable increase
in net worth (on the back of equity infusion) strengthens ABPL's
financial risk profile. Conversely, the outlook may be revised to
'Negative' if there significant deterioration in the company's
capital structure and liquidity on account of large working
capital requirements or debt-funded capital expenditure.
ABPL manufactures lead-acid-based batteries used in automobiles,
inverters and electrical and solar systems. The company is based
in Jalandhar (Punjab). It has capacity to manufacture 25,000
batteries (150 AH) per month.
AKMG ALLOYS: CRISIL Rates INR230M Loans at B+; Suspension Revoked
-----------------------------------------------------------------
CRISIL has revoked the suspension of its ratings and assigned its
'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of
AKMG Alloys Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 100 CRISIL B+/Stable (Assigned;
Suspension revoked)
Inland/Import Letter 70 CRISIL A4 (Assigned;
of Credit Suspension revoked)
Long Term Loan 36 CRISIL B+/Stable (Assigned;
Suspension revoked)
Proposed Long Term 94 CRISIL B+/Stable (Assigned;
Bank Loan Facility Suspension revoked)
The ratings were suspended by CRISIL on November 8, 2013, as AAPL
had not provided necessary information required to maintain a
valid rating. AAPL has now shared the requisite information,
enabling CRISIL to assign ratings to its bank facilities.
The ratings reflect AAPL's small scale of operations in an
intensely competitive industry and below-average financial risk
profile, marked by high gearing. These rating weaknesses are
partially offset by its promoters' extensive entrepreneurial
experience and their need-based funding support.
Outlook: Stable
CRISIL believes AAPL will continue to benefit over the medium term
from its promoters' extensive entrepreneurial experience and their
need based funding support. The outlook may be revised to
'Positive' in case the company significantly improves its revenue
and profitability, leading to improvement in the company's
financial risk profile. Conversely, the outlook may be revised to
'Negative', if AAPL records low cash accruals, its working capital
management deteriorates, or it undertakes any significant debt-
funded capital expenditure resulting in further deterioration in
its financial risk profile.
Incorporated in 2010, AAPL manufactures mild steel ingots. The
day-to-day operations of the company are managed by its promoter,
Mr. G V Kumar.
AAPL reported a provisional profit after tax (PAT) of INR2.5
million on total revenue of INR301.9 million for 2013-14 (refers
to financial year, April 1 to March 31), as against a PAT of
INR0.9 million on total revenue of INR254.2 million for 2012-13.
ALVA EDUCATION: ICRA Revises Rating on INR106cr Term Loan to B+
---------------------------------------------------------------
ICRA has upgraded the long term rating for enhanced bank limits of
INR106.00 crore1 (enhanced from INR49.27 crore) of Alva Education
Foundation from [ICRA]B to [ICRA]B+.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 106.00 Revised to [ICRA]B+ from
[ICRA]B
The upgrade in the long-term rating takes into account the healthy
growth in the operating income and internal accrual generation of
AEF supported by the steady increase in the number of student
admissions and increase in the fee structure. In addition, the
rating takes into consideration the regular investment by the
trust in the infrastructure and accreditations which has helped in
regular increase in the new admissions especially for the Pre
University and PG College. Further, the rating continues to
favourably factor in the long track record of the AEF in the
education sector with established presence of some institutions
and efforts by the trust to expand the courses /programs to
provide diversity to the revenue stream.
The rating however remains constrained by the consistent debt-
funded capital expenditure incurred towards expansion of
infrastructure facility, leading to leveraged capital structure
and moderate debt protection metrics of the trust. ICRA also takes
into account the risk of cash flow mismatch during the year with
different fee collection frequency for each institute which may
pose the risk of short-term liquidity mismatches; although the
risk is partially mitigated by the repayment holiday offered by
the bank for one quarter every year (January to March). Moreover,
the rating continues to take into consideration the revenue
concentration risk arising of the fact that more than 50% of the
tuition fees is accounted by Ayurveda, Engineering and Pre-
University courses. Also, the revenue growth and profitability of
the trust remain exposed to the persisting high competitive
intensity in the region and the regulatory controls in the
education sector which may restrict its flexibility to increase
fees and student strength.
Established in 1995, Alva's Educational Foundation (AEF) is an
education trust offering courses/programs in various disciplines.
Its institutes are situated in Moodabidri, a town adjacent to
Mangalore, Karnataka. Currently, AEF operates 16 institutes
offering more than 30 courses in various disciplines like
ayurveda, nursing, physiotherapy, naturopathy, engineering, pre-
university colleges, high school etc. Many of the colleges are
resident type and the infrastructure facilities include an
auditorium (seating capacity 1500), common canteens, sports
facilities, libraries, laboratories and hostels (with an occupancy
of close to 12500). The various courses offered by AEF are
affiliated to Mangalore University, Rajiv Gandhi University of
Heath and Science, Visveswaraya Technological University, PU Board
and Nursing Council of Karnataka. The number of students currently
enrolled in close to 15151.
Recent results
As per the provisional results for FY2014, the trust reported a
profit of INR14.1 crore (provisional) on turnover of INR120.0
crore (provisional) as against profit of INR13.8 crore on turnover
of INR88.3 crore during FY2013.
AMBAY COKE: CRISIL Reaffirms 'D' Rating on INR715MM Loans
---------------------------------------------------------
CRISIL's ratings on the long-term bank facilities of Ambay Coke
Industries Pvt Ltd continue to reflect instances of delay by Ambay
in servicing its debt as well as overutilization of its cash
credit account continuously for more than 30 days; the
irregularities have been caused by the company's weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 260 CRISIL D (Reaffirmed)
Letter of credit 125 CRISIL D (Reaffirmed)
& Bank Guarantee
Proposed Long Term 315 CRISIL D (Reaffirmed)
Bank Loan Facility
Term Loan 15 CRISIL D (Reaffirmed)
Ambay is also exposed to project implementation risks. This rating
weakness is partially offset by the extensive experience of
Ambay's promoters' in the steel business.
Ambay was acquired by its current management in February 2008 and
commenced operations in July 2008. The company processes coke and
sells it to small vendors and blast furnaces. Its unit in Burdwan
(West Bengal) has 18 coking chambers, with capacity to process
30,000 tonnes of coke per annum (tpa). Ambay was reconstituted as
a private limited company from a partnership firm in October 2009.
Ambay reported a net loss of INR51.7 million on net sales of
INR991 million for 2012-13 (refers to financial year, April 1 to
March 31), as against a PAT of INR7.7 million on net sales of
INR495 million for 2011-12.
ANAND EDUCATION: CRISIL Reaffirms 'B' Rating on INR150MM Loan
-------------------------------------------------------------
CRISIL's rating on the long-term bank facility of Anand Education
& Research Trust continues to reflect AERT's weak financial risk
profile, marked by high adjusted gearing and weak debt protection
metrics, and susceptibility of its margins to adverse regulatory
changes. These rating weaknesses are partially offset by the
extensive experience of AERT's promoters in the educational
segment and the strong financial support they extend to the trust.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 150 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes AERT will benefit over the medium term from the
infusion of funds by its promoters. The outlook may be revised to
'Positive' if the trust's revenues and profitability are
significantly high, resulting in substantial cash accruals,
adequate to service its debt. Conversely, the outlook may be
revised to 'Negative' if there is a delay in stabilising its
incremental intake capacity or the trust undertakes any major
debt-funded capital expenditure programme.
AERT was set up in 2007 by Mr. Manoj Mittal and Mr. Anand Mittal
to set up engineering, management, and medical institutes. AERT
operates an engineering college, Anand International College of
Engineering, in Kanota (Rajasthan).
AERT reported a net loss of INR22.8 million on net sales of
INR48.7 million for 2012-13 (refers to financial year, April 1 to
March 31), against a net loss of INR1.2 million on net sales of
INR45.2 million for 2011-12.
BHAGWAN COTTON: CRISIL Raises Rating on INR160MM Loans to 'B+'
--------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Bhagwan Cotton Ginners Pvt Ltd to 'CRISIL B+/Stable' from 'CRISIL
B/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 80 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Proposed Cash Credit 65 CRISIL B+/Stable (Upgraded
Limit from 'CRISIL B/Stable')
Term Loan 15 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
The upgrade reflects CRISIL's belief that BCGPL will sustain its
improved scale of operations over the medium term supported by its
enhanced capacity and healthy demand for its products. The
company's revenues grew by 100 per cent during 2013-14 (refers to
financial year, April 1 to March 31), leading to improved cash
accruals. BCGPL is likely to maintain its cash accruals over the
medium term which would be more than adequate to meet debt
obligations over the medium term.
The rating reflects BCGPL's weak financial risk profile marked by
small net worth, high gearing, and average debt protection
metrics. The rating also factors in the company's modest scale of
operations in the highly fragmented cotton industry, and the
vulnerability of its business and profitability to changes in
government policy. These rating weaknesses are partially offset by
the extensive experience of BCGPL's promoters in the cotton
industry, its established relationship with suppliers, and its
wide customer base.
Outlook: Stable
CRISIL believes that BCGPL would continue to benefit from
promoter's extensive experience and its established relationships
with customers and suppliers. The outlook may be revised to
'Positive' if the company's financial risk profile improves, most
likely through substantial cash accruals or significant equity
infusion. Conversely, the outlook may be revised to 'Negative' if
BCGPL's credit risk profile deteriorates, most likely because of
lengthening of working capital cycle or decline in revenue or
profitability.
BCGPL was incorporated in 2001, promoted by Mr. Balkishan Boob,
Mr. Ramniwas Boob, Mr Vinod Boob, Mr. Vishal Boob, and Mr. Vikas
Boob. The company is engaged in ginning and pressing of cotton.
Its facilities are in Raichur (Karnataka).
BIR ENGINEERING: CRISIL Lowers Rating on INR65MM Loan to 'B+'
-------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Bir Engineering Solutions Pvt. Ltd's to 'CRISIL B+/Stable' from
'CRISIL BB-/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 65 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
The rating downgrade reflects the deterioration in BESPL liquidity
and financial risk profile on account of larger than expected debt
funded capex and higher than expected working capital requirements
leading to higher than previously anticipated debt level in
absence of sufficient cash accruals. The company undertook a capex
of around INR 20 million over the past two years ended 2013-14
towards purchasing a new office, and its incremental working
capital requirements during the same period were INR27 million. On
the other hand, the cash accruals of INR 9-10 million over the
past two years have been adequate to meet only 20 per cent of the
total capex and incremental working capital requirements; these
resulted in higher than expected debt levels.
CRISIL believes that liquidity profile of the company will
continue to remain under pressure in the medium term on account of
tightly match cash accruals expected against the repayment
obligation on account of its moderate scale of operation and low
profitability and high working capital requirement.
The rating continues to reflect BESPL's small scale of operations
in the highly competitive industry, and below-average financial
risk profile marked by small net worth and high TOL/TNW ratio.
These weaknesses are partially offset by extensive experience of
BESPL's promoters in the industry.
Outlook: Stable
CRISIL believes that BESPL will continue to benefit over the
medium term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' in case of significant
improvement in BESPL's scale of operations and margins, resulting
in improvement in the company's financial risk profile.
Conversely, the outlook may be revised to 'Negative' if there is a
significant deterioration in its capital structure on account of
larger-than-expected working capital requirements or large debt-
funded capex.
BESPL is a private limited company promoted by Mr. Ashish Gulati
and Mr. Mohit Gulati. It is engaged in heating, ventilation, and
air conditioning (HVAC) consulting and installation. It also
distributes split air conditioners (ACs) for Panasonic India
Private Limited and Mitsubishi India in north Delhi, home
appliances for Bajaj Electricals Ltd in north-west Delhi, and
ducts for Aero Flex industries Ltd Pan India. BESPL also operates
a multi-brand AC showroom at Rohini (Delhi).
CHANDI CHARAN: CRISIL Reaffirms 'D' Rating on INR135.4MM Loans
--------------------------------------------------------------
CRISIL's ratings on the bank facilities of Chandi Charan Cold
Storage Private Limited continue to reflect the instances of delay
by CCCSPL in meeting the interest obligations on its Working
Capital Loan and seasonal cash credit facility; the delays have
been caused by the company's weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 8 CRISIL D (Reaffirmed)
Cash Credit 69.5 CRISIL D (Reaffirmed)
Proposed Long Term 2.4 CRISIL D (Reaffirmed)
Bank Loan Facility
Term Loan 44.0 CRISIL D (Reaffirmed)
Working Capital Loan 11.5 CRISIL D (Reaffirmed)
CCCSPL also has a weak financial risk profile, marked by a high
gearing and weak debt protection metrics, and is exposed to the
highly regulated and intensely competitive cold storage industry
in West Bengal. However, CCCSPL benefits from its promoters'
extensive industry experience.
CCCSPL was set up in 2011 by the Gorai family of Kolkata (West
Bengal). The company has a cold storage unit (with two chambers)
in Bankura (West Bengal).
CHENDURAN COTSPIN: ICRA Ups Rating on INR36.5cr Loans to 'B+'
-------------------------------------------------------------
ICRA has upgraded the long-term rating outstanding on the INR8.00
crore term loan facilities (revised from INR20.72 crore), the
INR17.50 crore long-term fund based facilities (enhanced from
INR16.50 crore) and the INR11.00 crore unallocated long-term
facilities of Chenduran Cotspin India Private Limited to [ICRA]B+
from [ICRA]D. ICRA has also upgraded the short-term rating
outstanding on the INR8.50 crore short-term non-fund based
facilities (enhanced from INR7.78 crore) of the Company to
[ICRA]A4 from [ICRA]D. The long-term and short-term ratings of
[ICRA]D were earlier Suspended owing to lack of necessary
information, vide the release dated September 20, 2013.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term loan facilities 8.00 [ICRA]B+/upgraded from
[ICRA]D
Long-term fund based 17.50 [ICRA]B+/upgraded from
Facilities [ICRA]D
Long-term unallocated 11.00 [ICRA]B+/upgraded from
facilities [ICRA]D
Short-term non fund 8. 50 [ICRA]A4/upgraded from
based facilities [ICRA]D
The Company has now shared the requisite information, thereby
enabling ICRA to assign the rating for bank facilities.
The ratings reflects ICRA's consolidated view of the two Chenduran
Group entities, Chenduran Cotspin India Private Limited and
Elkaypee Spinners Private Limited (rated [ICRA]B+), considering
the common management and similar line of business. Henceforth,
the two entities would be referred to as "the Group".
The rating action takes into account the regularization of debt
servicing by the Group entities (as confirmed by the management
and banker) since July 2013, supported by improvement in cash
flows on the back of steady growth in operating income driven by
favourable demand and expansion in margins with stabilisation of
raw material prices (mainly polyester staple fibre [PSF]).
Consequently, the Group's debt indicators have improved over the
last two years. Till 2010-11, Group was mainly manufacturing
cotton yarn. However, after incurring cash losses in 2011-12 on
account of sharp fall in cotton prices, the Group had completely
shifted towards manufacturing of poly-cotton blended yarn given
the relatively lower volatility in PSF prices. The same coupled
with installation of direct feeder lines and purchase of
relatively lower cost third party thermal power, which aided in
un-interrupted power supply and consequently enabled higher
utilization of capacities at lower costs, led to expansion in the
Group's margins.
The ratings are, however, constrained by the Group's consolidated
financial profile which continues to be characterized by stretched
capital structure (gearing adjusted for unsecured loans from
promoters stood at 2.1x as on March 31, 2014) and modest debt
indicators. Further, the ratings continues to remain constrained
by the Group's moderate business risk profile as reflected by
small scale of operations (albeit expanding over the years), which
restrict scale economies and the intense competition prevalent in
the industry which restricts the Group's pricing flexibility to an
extent. For the near term, while domestic yarn demand is likely to
hold firm with the upcoming festive seasons and steady volumes
being sourced by garmenters, the expected weak monsoon may lead to
a surge in cotton prices and could have an adverse impact on the
Group's profitability. Going forward, the Group's ability to
generate higher cash accruals through scale and margin improvement
would be critical to continue servicing annual debt repayment
obligation of INR4cr to INR6 crore in a timely manner and
consequently, improve the credit profile of the Group.
Chenduran was started in 1991 as M/s. Thuran Spinning Mills
Private Ltd and was managed by Mr. P.Govindaswamy and his
brothers. In 2008-09 the name of the Company was changed to
Chenduran Cotspin (India) Private Limited and is now fully owned
by Mr. P. Govindaswamy and his wife. The Company has its spinning
mill in Vedasandur near Dindigul, with an installed capacity of
34,272 spindles. Till 2010-11, the Company was mainly
manufacturing cotton yarn with small portion of poly-cotton
blended yarn. However, since 2011-12, the Company had completely
shifted its focus towards manufacturing of poly-cotton blended
yarn owing to relatively less volatility in the raw material price
of polyester staple fibre (PSF) compared to cotton. Chenduran
produces poly-cotton blended yarn in lower to medium counts, which
is sold to knitting units through merchant traders. The Company
has installed windmills in various locations in Tamil Nadu with
total capacity of 4.20 MW per annum.
Recent Results (provisional)
As per the unaudited results for the year 2013-14, Chenduran has
reported a net profit of INR3.1 crore on an operating income of
INR95.3 crore as against net profit of INR2.0 crore on an
operating income of INR88.2 crore for 2012-13.
CHETAN CABLETRONICS: CRISIL Reaffirms B Rating on INR130MM Loans
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Chetan Cabletronics Pvt
Ltd continue to reflect CCPL's average financial risk profile
marked by small net worth, high gearing and its large working
capital requirements. These rating strengths are partially offset
by CCPL's promoters' extensive experience in the wires, cords and
cables industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 85 CRISIL B/Stable
Letter of Credit 50 CRISIL A4
Proposed Long Term 32 CRISIL B/Stable
Bank Loan Facility
Rupee Term Loan 13 CRISIL B/Stable
Outlook: Stable
CRISIL believes that CCPL will maintain its business risk profile,
supported by promoters' extensive industry experience, over the
medium term. The outlook may be revised to 'Positive' if CCPL's
topline growth and profitability exceed expectations and its
capital structure improves, primarily driven by equity infusion,
leading to improvement in its financial risk profile and also if
it is able to improve its liquidity through better working capital
management. Conversely, the outlook may be revised to 'Negative'
if the company's financial risk profile weakens, most likely
caused by erosion of net worth resulting from larger than expected
inventory write-offs or if there is further elongation of its
working capital cycle or if the company reports lower than
expected cash accruals or if the company undertakes larger-than-
expected, debt-funded capital expenditure (capex).
Update
For 2013-14 (refers to financial year, April 1 to March 31), CCPl
registered net sales of around INR192 million, a decline from that
of INR633 million a year ago. The revenue de-growth was mainly on
account of cancellation of orders from its key customer Cord Cable
Industries (contribution more than 50 per cent of revenues in
2012-13) resulting in lower order execution through the same year.
The company's operating profitability has however remained stable
at 9 per cent as on Mar 31, 2014 and is expected to remain under
similar levels over the medium term. CCPL has working-capital-
intensive operations, primarily because of the large inventory
levels of 441 days maintained as on March 31, 2014. The inventory
levels have increased as compared to 111 days in the previous year
on account of the piling up of inventory resulting from
cancellation of orders in the previous year. As a result, the
company's gross current asset days are at 471 as on March 31,
2014.
CCPL's financial risk profile remains average, with a high
gearing, small net worth and modest debt protection metrics. The
company had a gearing of 3.5 times as on March 31, 2014 mainly due
to its small net worth of INR53 million. The net worth has
remained small due to its low accretion to reserves. CCPL has
stretched liquidity. For 2013-14, it registered cash losses of
INR9 million. However the company's term debt repayments of INR7
million has been repaid largely from its bank lines of INR85
million which remains utilised at an average of 98 per cent
through 2013-14.
CCPL, on a provisional basis, reported a net loss of INR19 million
on net sales of INR192 million for 2013-14, against a profit after
tax (PAT) of INR2.5 million on net sales of INR616 million for
2012-13.
CCPL was incorporated in 2002, promoted by Mr. Rakesh Goyal. It
manufactures wires, cords and cables. Its units are in Bhiwadi
(Rajasthan). The company manufactures around 6,000 varieties of
cables, with diameters in the range of 0.70 to 65 millimetres. The
products are supplied to various industries, including power,
telecommunications and electronic goods.
DELTA SUGARS: CRISIL Upgrades Rating on INR630MM Loans to 'B'
-------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Delta Sugars Ltd to 'CRISIL B/Stable' from 'CRISIL D'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 600 CRISIL B/Stable (Upgraded
from 'CRISIL D')
Term Loan 30 CRISIL B/Stable (Upgraded
from 'CRISIL D')
The rating upgrade reflects the timely servicing of debt by DSL
over the past three months ended July 31, 2014. The upgrade also
reflects CRISIL's belief that DSL will continue to service its
debt in a timely fashion, with its cash accruals expected to
remain adequate to meet its maturing debt obligations.
The rating reflects DSL's weak financial risk profile marked by
negative net worth and below-average debt protection metrics, the
company's large working capital requirements, and its exposure to
risks related to the regulated nature of the sugar industry. These
rating weaknesses are partially offset by the extensive experience
of the company's promoters' in the sugar industry.
Outlook: Stable
CRISIL believes that DSL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if there is a substantial and
sustained improvement in the company's revenues, while maintaining
its profitability margins, or there is a substantial improvement
in its capital structure on the back of sizeable equity infusion
by its promoters. Conversely, the outlook may be revised to
'Negative' in case of a steep decline in the company's
profitability margins, or a significant deterioration in its
capital structure caused most likely because of any large debt-
funded capital expenditure or a stretch in its working capital
cycle.
DSL is a part of the Laila group of companies. The company
manufactures sugar, and also generates by-products, such as
bagasse, and molasses. The company's sugar mill is located in
Vijayawada district in Andhra Pradesh.
ELKAYPEE SPINNERS: ICRA Upgrades Rating on INR10cr Loans to 'B+'
----------------------------------------------------------------
ICRA has upgraded the long-term rating outstanding on the INR3.73
crore term loan facilities (revised from INR6.00 crore), the
INR4.00 crore long-term fund based facilities and the INR2.27
crore unallocated long-term facilities of Elkaypee Spinners
Private Limited to [ICRA]B+ from [ICRA]D.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term loan facilities 3.73 [ICRA]B+/upgraded from [ICRA]D
Long-term fund 4.00 [ICRA]B+/upgraded from [ICRA]D
based facilities
Long-term unallocated 2.27 [ICRA]B+/upgraded from [ICRA]D
facilities
The long-term rating of [ICRA]D was earlier Suspended owing to
lack of necessary information, vide the release dated September
20, 2013. The Company has now shared the requisite information,
thereby enabling ICRA to assign the rating for bank facilities.
The rating reflects ICRA's consolidated view of the two Chenduran
Group entities Elkaypee Spinners Private Limited and Chenduran
Cotspin India Private Limited (rated [ICRA]B+/[ICRA]A4),
considering the common management and similar line of business.
Henceforth, the two entities would be referred to as "the Group".
The rating action takes into account the regularization of debt
servicing by the Group entities (as confirmed by the management
and banker) since July 2013, supported by improvement in cash
flows on the back of steady growth in operating income driven by
favourable demand and expansion in margins with stabilisation of
raw material prices (mainly polyester staple fibre [PSF]).
Consequently, the Group's debt indicators have improved over the
last two years. Till 2010-11, Group was mainly manufacturing
cotton yarn. However, after incurring cash losses in 2011-12 on
account of sharp fall in cotton prices, the Group had completely
shifted towards manufacturing of poly-cotton blended yarn given
the relatively lower volatility in PSF prices. The same coupled
with installation of direct feeder lines and purchase of
relatively lower cost third party thermal power, which aided in
un-interrupted power supply and consequently enabled higher
utilization of capacities at lower costs, led to expansion in the
Group's margins.
The ratings are, however, constrained by the Group's consolidated
financial profile which continues to be characterized by stretched
capital structure (gearing adjusted for unsecured loans from
promoters stood at 2.1x as on March 31, 2014) and modest debt
indicators. Further, the ratings continues to remain constrained
by the Group's moderate business risk profile as reflected by
small scale of operations (albeit expanding over the years), which
restrict scale economies and the intense competition prevalent in
the industry which restricts the Group's pricing flexibility to an
extent. For the near term, while domestic yarn demand is likely to
hold firm with the upcoming festive seasons and steady volumes
being sourced by garmenters, the expected weak monsoon may lead to
a surge in cotton prices and could have an adverse impact on the
Group's profitability. Going forward, the Group's ability to
generate higher cash accruals through scale and margin improvement
would be critical to continue servicing annual debt repayment
obligation of INR4-6 crore in a timely manner and consequently,
improve the credit profile of the Group.
Elkaypee was promoted by Mr. P.Govindaswamy and his family members
in 1988 as a partnership Firm to manufacture specialty yarns and
other yarn varieties for the garments export sector. Later, in May
1993 the Firm was converted into a private limited company-
Elkaypee Spinners Private Limited.
ESHWARNATH CONSTRUCTIONS: CRISIL Reaffirms INR50M Loan B Rating
---------------------------------------------------------------
CRISIL' ratings on the bank loan facilities of Eshwarnath
Constructions continue to reflect the firm's small scale of
operations in a fragmented industry and large working capital
requirements. These rating weaknesses are partially offset by the
extensive experience of EC's promoter in the civil construction
industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 50 CRISIL A4 (Reaffirmed)
Cash Credit 50 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that EC will continue to benefit over the medium
term from its promoter's extensive experience in the civil
construction industry. The outlook may be revised to 'Positive' if
the firm scales up its operations significantly, while improving
its profitability, leading to better-than-expected cash accruals
and improvement in its liquidity. Conversely, the outlook may be
revised to 'Negative' if it registers lower-than-expected revenue
or profitability or deterioration in its working capital
management, resulting in weakening of its liquidity, or if the
firm undertakes a large debt-funded capital expenditure programme,
resulting in weakening of its overall financial risk profile.
Updates
EC's revenues increased to INR142.4 million in 2013-14 (refers to
financial year, April 1 to March 31) from INR80.6 million in 2012-
13 supported by execution of its healthy order book. The firm has
a healthy order book of about INR 300 million as on June 30, 2014,
which will support its revenue over the medium term. The operating
profitability is expected to remain at about 7-8 per cent over the
medium term. The firm's on-going real estate project is expected
to be completed during 2015-16.
The financial risk profile continues to remain moderate with net
worth estimated at INR168.7 million as on March 31, 2014, and low
gearing of below 0.5 times. The interest coverage ratio of 1.4
times in 2013-14, however, constrains the financial risk profile.
CRISIL believes that company's financial risk profile will remain
below-average over the medium term owing to its weak cash
accruals.
The firm's operations are highly working capital intensive, as
indicated by its gross current assets of about 275 days, causing
its liquidity to remain weak with high bank limit utilisation of
87 per cent on average for the 12 months through May 2014. Also,
its cash accruals are expected to remain tightly matched against
its retiring debt obligations owing to its moderate operating
profitability.
EC, set up in 1997, executes civil construction work for Southern
Railways and other private players in Tamil Nadu. The firm is also
involved in the construction of a real-estate project in Chennai
(Tamil Nadu).
FAB TRADE: ICRA Reaffirms 'B+' Rating on INR11.50cr Loan
--------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B+ assigned to
the fund-based facilities aggregating to INR11.50 crore (enhanced
from INR6.50 crore) of Fab Trade Private Limited. ICRA has also
assigned a long-term rating of [ICRA]B+ and a short term rating of
[ICRA]A4 to the proposed facilities aggregating to INR1.00 crore
of FTPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits 11.50 [ICRA]B+ reaffirmed
(Cash Credit)
Proposed Limits 1.00 [ICRA]B+/[ICRA]A4 assigned
The reaffirmation of ratings is constrained by the company's small
size of operations and weak financial profile as reflected by low
profitability and stretched liquidity position also arising from
high working capital intensity of operations. The ratings also
take into account the intense competitive pressures arising from a
fragmented industry structure and low value addition in business
operations. ICRA further notes that the company's profitability
margins are exposed to adverse movement in prices of traded goods
as well as fluctuations in foreign currency in the absence of any
firm hedging policy.
The ratings however, favorably factor in the long track record of
the company's promoters in the chemicals trading business and the
company's diversified product portfolio that reduces demand risks
pertaining to a single product or end-user industry.
Fab Trade Private Limited was incorporated in June 2007 by Mr.
Amit Bavisi and Mrs. Felie Bavisi and is engaged in the trading of
organic chemicals and solvents. The promoters initially conducted
the chemical trading business through a proprietorship firm viz.
Fab Trade Enterprises (FTE), incorporated in August 1997, with
Mrs. Felie Bavisi as the proprietor. The promoters subsequently
setup FTPL with Mr. Amit Bavisi having 55% equity stake and Mrs.
Felie Bavisi having 45% equity stake. FTPL took over the entire
operations of FTE in February 2010 and FTE is currently not
engaged in any kind of business activity. FTPL supplies chemicals
and solvents to various industries like paints, resins, plastics,
pharmaceutical, adhesive, textiles etc.
Recent Results
For FY 2013, the company reported profit after tax of INR0.05
crore on an operating income of INR38.79 crore. For FY 2014, the
company reported profit after tax of INR0.02 crore on an operating
income of INR25.58 crore (provisional).
GANPATI FOODS: CRISIL Reaffirms 'B+' Rating on INR185MM Loans
-------------------------------------------------------------
CRISIL's rating on the bank facilities of Ganpati Foods (GF)
continues to reflect its weak financial risk profile owing to
working capital intensive business, high dependence on monsoon,
and susceptibility to adverse changes in government policies.
These rating weaknesses are partially offset by the extensive
industry experience of GF's partners, healthy growth prospects for
the basmati rice industry, and funding support from promoters.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 110 CRISIL B+/Stable (Reaffirmed)
Term Loan 10 CRISIL B+/Stable (Reaffirmed)
Warehouse Receipts 65 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that GF will continue to benefit over the medium
term from the extensive industry experience of its promoters in
the basmati rice industry. The outlook may be revised to
'Positive' in case of significant improvement in GF's financial
risk profile due to capital infusion or improvement in its scale
of operations. Conversely, the outlook may be revised to
'Negative' in case GF's financial risk profile deteriorates, due
to a significant increase in inventory, leading to large
incremental bank borrowings or in case of a debt-funded capex
programme.
GF was set up in 2008 as a partnership firm by Mr. Keval Krishna
Bansal and his family. The firm is engaged in rice milling and
rice shelling at its plant in Patana (Punjab).
GREEN SHIELD: CRISIL Upgrades Rating on INR85MM Loan to 'B+'
------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Green Shield Enterprises Pvt Ltd to 'CRISIL B+/Stable' from
'CRISIL B/Stable', and reaffirmed its rating on the company's
short-term bank facilities at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 85 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Letter of Credit 10 CRISIL A4 (Reaffirmed)
Proposed Short Term 55 CRISIL A4 (Reaffirmed)
Bank Loan Facility
The rating upgrade reflects GSEPL's improved business risk profile
with moderate scale of operations and expected support from
promoters by way of equity infusion. The company achieved revenue
of INR1.89 billion in 2013-14 (refers to financial year, April 1
to March 31), its second year of operations, backed by established
relationship with customers which will help it sustain its scale.
Its financial risk profile was weak, with total outside
liabilities to tangible net worth (TOLTNW) ratio of 4.22 times as
on March 31, 2014, and interest coverage ratio of 1.08 times for
2013-14. The TOLTNW ratio is expected to improve over the medium
term, driven by expected conversion of unsecured loans of INR19.0
million into equity and additional equity infusion of INR6.0
million in 2014-15. However, its debt protection metrics are
expected to remain weak on account of modest operating margin and
high interest costs over the medium term.
The ratings reflect GSEPL's start-up phase of operations, the high
customer concentration in its revenue profile, and its weak
financial risk profile marked by weak debt protection metrics and
high TOLTNW ratio. These rating weaknesses are partially offset by
the extensive experience of GSEPL's promoter in the grey cloth
trading business and established relationship with key customer.
Outlook: Stable
CRISIL believes that GSEPL will continue to benefit over the
medium term from its promoters' extensive industry experience and
its established relationship with customers. The outlook may be
revised to 'Positive' if GSEPL scales up of operations
substantially and improves its operating margin, leading to
improvement in its financial risk profile, particularly its
liquidity. Conversely, the outlook may be revised to 'Negative' in
case of decline in operating profitability, or lengthening of
working capital cycle, or large unexpected debt-funded capital
expenditure, weakening its financial risk profile.
GSEPL, started by Mrs. Arti Kanodia trades in grey fabric and
processes grey fabric as required by customers. The company's
promoter and his family have been engaged in the business since
1985.
GUDIMETLA SUNDARA: CRISIL Reaffirms B+ Rating on INR150MM Loan
--------------------------------------------------------------
CRISIL's rating on the bank facilities of Gudimetla Sundara Rami
Reddy and Company continues to reflect GSRR's below-average
financial risk profile marked by its small net-worth, moderate
gearing, and weak debt protection metrics.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 150 CRISIL B+/Stable (Reaffirmed)
The ratings of the firm are also constrained on account of its
modest scale of operations in the intensely competitive rice
milling industry, the susceptibility of its profitability margins
to changes in paddy prices and government regulations, and its
working-capital-intensive nature of operations. These rating
weaknesses are partially offset by the extensive experience of
GSRR's promoters' in the rice industry, and the assured off-take
from the Food Corporation of India (FCI).
Outlook: Stable
CRISIL believes that GSRR will continue to benefit over the medium
term from its promoters' extensive experience in the rice milling
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
improvement in its capital structure on the back of sizeable
capital additions by its promoters. 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 programme or a stretch in its working capital
cycle.
Set-up as a partnership firm in 1985, GSSR mills and processes
paddy into rice; the firm also generates by-products, such as
broken rice, bran, and husk. The firm's rice milling unit is
located in the West Godavari district of Andhra Pradesh.
The firm currently has four partners Mr. Gudimetla Rama Krishna,
Mr. Gudimetla Tulasi, Mr. Gudimetla Nagamani, and Mr. Gudimetla
Sundara Rami Reddy.
HARIOM INDUSTRIES: CRISIL Assigns 'B+' Rating to INR55MM Loans
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long term
bank facilities of Hariom Industries.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 42.5 CRISIL B+/Stable
Long Term Loan 12.5 CRISIL B+/Stable
The ratings reflect susceptibility of Hariom Industries's
operations to changes in government regulations and its working
capital intensive operations and it's below average financial risk
profile marked by its estimated modest debt protection metrics.
These rating weaknesses are partially offset by the benefits
Hariom Industries is expected to derive from extensive experience
of its promoters in the cotton ginning business.
Outlook: Stable
CRISIL believes that Hariom Industries will continue to benefit
over the medium term from its promoters' extensive experience in
the cotton ginning business. The outlook may be revised to
'Positive' if the company's revenues and profitability increase
substantially or in case of significant infusion of capital
resulting in an improvement in Hariom Industries's capital
structure leading to an improvement in its financial risk profile.
Conversely, the outlook may be revised to 'Negative' if the firm's
revenues and profitability decline substantially or if the firm
undertakes a 'larger than expected' debt-funded expansion, or if
the partners withdraw significant capital from the firm leading to
deterioration in its financial risk profile.
Set up in the year 2012, Hariom Industries is a partnership firm
engaged in ginning and pressing of raw cotton and sells cotton
lint and cotton seeds based out of Bhavnagar, Gujrat. The partners
in the firm are Mr Vallabhbhai Solanki and Mr Jinabhai Solanki.
HARSHIT POWER: ICRA Reaffirms 'D' Rating on INR40.20cr Loans
------------------------------------------------------------
ICRA has re-affirmed the long term rating of [ICRA]D for the
INR30.70 crore fund based bank facilities of Harshit Power & Ispat
Private Limited. ICRA has also re-affirmed the short term rating
of [ICRA]D for the INR9.50 crore non fund based bank limits of
HPIPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limit-term Loans 17.95 [ICRA]D re-affirmed
Fund Based Limit-Cash Credit 12.75 [ICRA]D re-affirmed
Non Fund Based Limit 9.00 [ICRA]D re-affirmed
Letter of Credit
Non Fund Based Limit-Bank 0.50 [ICRA]D re-affirmed
Guarantee
The rating reaffirmation factors in HPIPL's continued delays in
debt servicing, its weak financial profile, as indicated by loss
making nature of operations, high gearing, along with weak
coverage indicators, and the highly competitive nature of the
sponge iron manufacturing industry, marked by the presence of
large number of players. The rating reaffirmation also takes into
account the low capacity utilization (which remained at around 5%
in FY 2013-14) on account of limited plant availability due to
stabilization related issues, as well as challenges associated
with the availability of key raw material. The rating is also
tempered bythe significant scheduled debt repayment obligations
lined up in the near to medium term, and the company's exposure to
margin pressure on account of the volatility in prices of key raw
materials, like iron are and coal. ICRA however notes that HPIPL's
coal linkage with Central Coalfields Limited (CCL) for supply of
coal at notified price mitigates raw material price volatility to
an extent. The rating also incorporates HPIPL's working capital
intensive nature of operations on account of the procurement of
iron ore and coal against 100% advance, the long lead time for
delivery of iron ore, and its high inventory levels, in turn
leading to a liquidity squeeze. The rating, however, factors in
the experience of the promoters in the iron and steel industry,
and the locational advantage of HPIPL's sponge iron manufacturing
plant, on account of its proximity to the steel smelting shop of a
group company, which is a key customer, thereby leading to low
freight costs. Going forward, HPIPL's ability to scale up
production and improve profitability from operations would be
crucial factors determining the company's debt repayment
capability.
HPIPL, promoted by the Sarawgi family, was incorporated in 2010,
and is engaged in the manufacturing of sponge iron. HPIPL's
manufacturing facility is located at Girdih in Jharkhand, and has
an installed production capacity of 30,000 TPA.
Recent Results
HPIPL reported a net loss of INR11.21 crore on an operating income
of INR5.47 crore during FY14, as against a net loss of INR2.36
crore on an operating income of INR12.19 crore in FY13.
JOTINDRA STEEL: ICRA Suspends 'B-' Rating on INR29cr Loan
---------------------------------------------------------
ICRA has suspended [ICRA]B- rating assigned to the INR29.00crore
fund based limits of JSTL and also [ICRA]A4 rating assigned to the
INR11.00crore non fund based limits of Jotindra Steel & Tubes Ltd.
The suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
KINGFISHER AIRLINES: IDBI Bank Declares Firm as Wilful Defaulter
----------------------------------------------------------------
The Times of India reports that IDBI Bank has started the process
of declaring Kingfisher Airlines a "wilful defaulter". The airline
owes the bank INR750 crore. IDBI is among a consortium of banks
which has lent money to the beleaguered airline, the report
discloses. Kingfisher is the country's top loan defaulter with
banks having an exposure of INR7,000 crore.
Other banks like SBI (the lead bank for the Kingfisher loan) and
Punjab National Bank are also ready to declare the airline a
wilful defaulter after a report by Ernst & Young pointed to gaps
in its running, according to TOI. United Bank of India, which is
also part of the consortium, has already initiated process to
declare the company a defaulter, the report says.
"The process is in an advanced stage and we would send out a
notice declaring them as a wilful defaulter in a couple of weeks.
Last week, we submitted all papers relating to the account, such
as statement of accounts, account opening form and cheque books,
to the CBI for the agency to start a preliminary enquiry against
the company," the report quotes M S Raghavan, chairman and
managing director of IDBI Bank, as saying.
The INR750 crore owed by Kingfisher Airlines to IDBI Bank is
currently a bad debt in the books of the bank. "It is an NPA (non-
performing asset) and has been fully provided for by the bank,"
Mr. Raghavan, as cited by TOI, said.
TOI relates that Mr. Raghavan said the bank is looking to raise
INR5,000 crore by paring down the government of India stake in it.
"We would be approaching the government to give permission to
dilute its stake from 76.5% to 58% or 51%. We are looking to get
INR5,000 crore, depending on the extent of dilution. In addition,
we are also looking to beef up our Tier-I capital through a rights
issue or a qualified institutional placement of INR2,000 crore and
we would approach both domestic as well as international investors
depending upon the market conditions," TOI quotes Mr. Raghavan as
saying.
Headquartered in Mumbai, India, Kingfisher Airlines --
http://www.flykingfisher.com/-- formerly known as Deccan
Aviation Ltd., served about 35 domestic destinations with a fleet
of more than 40 aircraft, including Airbus jets and ATR 72
turboprops.
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 15, 2014, Bloomberg News said Kingfisher has grounded planes
since October 2012. The airline lost its operating license in
January last year after failing to convince authorities it
has enough funds to restart flights.
The airline defaulted on payments to lessors, creditors and
airports as losses widened amid rising fuel costs and competition.
According to Bloomberg News, Mr. Mirpuri said in an e-mail on
January 13 the airline continues its efforts to recapitalize and
restart services.
As reported in the TCR-AP on Jan. 27, 2014, CRISIL's ratings on
bank loan facilities of Kingfisher Airlines Ltd continue to
reflect delays by KFAL in servicing its debt; the delays have been
caused by the company's weak liquidity and continued losses at the
operating level. Losses in the past six years have resulted in a
complete erosion of KFAL's net worth, leading to its weak
financial risk profile.
For 2012-13 (refers to financial year, April 1 to March 31),
KFAL reported a net loss of INR83.5 billion (INR23.3 billion for
2011-12) on net sales of INR5 billion (INR54.85 billion). For the
six months ended September 30, 2013, it reported a net loss of
INR18.72 billion (INR14.04 billion for the corresponding period
of 2012-13) on net revenues of INR0.0 (INR5.01 billion).
KNOX IMPEX: CRISIL Reaffirms 'B+' Rating on INR50MM Loans
---------------------------------------------------------
CRISIL ratings on the bank facilities of Knox Impex Pvt Ltd
continue to reflect KIPL's modest scale of operations, large
working capital requirements, and susceptibility to volatility in
prices of chemical products and foreign exchange rates. These
rating weaknesses are partially offset by the extensive experience
of KIPL's promoters in the chemicals distribution business and its
diversified product portfolio and clientele.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 20 CRISIL B+/Stable (Reaffirmed)
Letter of Credit 50 CRISIL A4 (Reaffirmed)
Proposed Long Term 30 CRISIL B+/Stable (Reaffirmed)
Bank Loan Facility
Outlook: Stable
CRISIL believes that KIPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the company achieves
significant and sustainable improvement in its scale of operations
while improving its margins and sustaining its capital structure.
Conversely, the outlook may be revised to 'Negative' in case of
decline in the company's revenue or margins, or stretch in its
working capital cycle weakening its financial risk profile.
Update
KIPL's performance bounced back in 2013-14 (refers to financial
year, April 1 to March 31) after registering a sharp revenue
decline in 2012-13. The company is likely to register 90 per cent
year-on-year growth to around INR310 million in 2013-14, backed by
better industry scenario in the pharmaceutical segment and
increased prices. Steady demand from the pharmaceutical industry
is expected to sustain KIPL's revenue in 2014-15. However, the
company's operating margin remains low, below 3 per cent, because
of its trading business. Its financial risk profile remains weak,
marked by small net worth of about INR13.5 million and aggressive
total outside liabilities to tangible net worth (TOLTNW) ratio of
about 7.5 times as on March 31, 2014. The TOLTNW ratio is high on
account of stretch in payables to 120 days as on March 31, 2014,
from 28 days as on March 31, 2012, to fund large working capital
requirements. The debtors are estimated to have increased to
around four months as on March 31, 2014, from about two months as
on March 31, 2013, because of stretch in payments by customers.
However, KIPL's inventory declined to around 35 days as on
March 31, 2014, from 95 days a year ago, resulting in stable gross
current assets. KIPL's liquidity remains moderate, marked by low
utilisation of bank lines and no major term debt obligations. The
company does not plan any capital expenditure and is likely to
generate annual cash accruals of about INR4 million against
negligible vehicle loans of around INR0.3 million in 2014-15.
KIPL was set up in 1988 by Mr. Mukesh Ramani. The company trades
in specialty chemicals. It is based in Mumbai. Mr. Ramani oversees
its day-to-day operations.
KIPL reported a profit after tax (PAT) of INR1.4 million on net
sales of INR162.3 million for 2012-13, against a PAT of INR1.8
million on net sales of INR210.7 million for 2011-12.
M. M. AUTOMOBILES: CRISIL Assigns 'B+' Rating to INR40MM Loans
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of M. M. Automobiles.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 35 CRISIL B+/Stable
Standby Line of Credit 5 CRISIL B+/Stable
The rating reflects MMA's average financial risk profile marked by
its small net-worth, modest total outside liabilities to tangible
net-worth ratio, and average debt protection metrics. The ratings
of the firm are also constrained on account of its susceptibility
to economic cyclicality, and exposure to intense competition in
the automobile dealership industry. These rating weaknesses are
partially offset by the extensive industry experience of the
promoter in the auto dealership industry, the firm's efficient
working capital management, and its low exposure to inventory and
debtor risks.
Outlook: Stable
CRISIL believes that MMA will continue to benefit over the medium
term from its promoters extensive industry experience. The outlook
may be revised to 'Positive' if there is a sustained increase in
the firm's scale of operations and profitability margins, or there
is a substantial increase in its net-worth on the back of sizeable
capital additions by its promoter. 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 programme or a stretch in its working capital
cycle.
MMA was incorporated in 2003 as a proprietorship firm by Mr.
Mutchu Mithi. The firm is an authorised dealer for Hyundai Motor
India Ltd's cars. The firm operates a showroom-cum service station
in Itnagar (Arunachal Pradesh).
MAHE EDUCATIONAL: ICRA Upgrades Rating on INR5.23cr Loan to 'B+'
----------------------------------------------------------------
ICRA has upgraded the long term rating assigned to the INR5.23
crore (revised from INR8.47 crore) term loan facilities of Mahe
Educational and Charitable NRI Trust from [ICRA]D to [ICRA]B+.
ICRA has also assigned the long term rating of [ICRA]B+ to the
INR5.24 crore proposed long term facilities of the Trust.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term: Term Loans 5.23 Upgraded from [ICRA]D
to [ICRA]B+
Long Term: Proposed 5.24 [ICRA]B+ assigned
The rating revision takes into account the regularization of the
debt servicing by the Trust, steady improvement in its donation
and operating income and continued full occupancy for the BDS
course conducted by the Trust. The ratings also derive comfort
from the favourable demand outlook for higher education in India
especially for dental courses and increasing demand for dental
professionals in the country. The rating however remains
constrained by the incipient stage of operations, with limited
students and lower tuition fees which constrains the scope for
revenue growth and margin expansion. Further ICRA notes the
deferment of completion of capital expenditure towards
construction of a multi-specialty hospital; given that the funding
for the capex is planned from donations (apart from the bank
funding) and incremental term loans; the trust's ability to
construct the hospital within the re-scheduled targeted time line
and costs remain to be seen. The rating is also constrained by the
stretched coverage indicators of the Trust and increased
dependence on donation receipts for supporting the cash flows.
While the long term demand outlook for higher education is
favourable, given the inherent regulated structure in the
education industry and the intense competition prevalent in the
industry with the presence of large number of established, budding
players, the Trust's ability to scale up, and generate adequate
cash flows will be key credit monitorables.
Mahe Educational and Charitable NRI Trust was established in the
year 2006 at Mahe, Pondicherry. The Trust manages Mahe Institute
of Dental Sciences and Hospital (MINDS), which started operations
in 2009. MINDS offers undergraduate course in dental sciences
(BDS) and is affiliated to Pondicherry University. The institute
is currently in the sixth year of operations and has a total of
400 students and 92 faculties.
Recent Results
As per the unaudited results for fiscal 2013-14, the Trust
reported a net profit of INR0.8 crore on an operating income of
INR8.0 crore in 2013-14, as against a net loss of INR0.3 crore on
an operating income of INR5.7 crore for 2012-13.
MEGA VITRIFIED: ICRA Assigns 'B' Rating to INR11.1cr Loans
----------------------------------------------------------
ICRA has assigned [ICRA]B rating to the INR7.00 crore1 cash credit
facility and INR0.45 crore term loan facility and INR3.65 crore
long term unallocated limits of Mega Vitrified Private Limited.
ICRA has also assigned [ICRA]A4 rating to INR3.60 crore short term
non fund based facility of MVPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 7.00 [ICRA]B assigned
Term Loan 0.45 [ICRA]B assigned
Unallocated-Term Loan 3.65 [ICRA]B assigned
Bank Guarantee 2.60 [ICRA]A4 assigned
Letter of Credit 1.00 [ICRA]A4 assigned
The assigned rating is constrained by Mega Vitrified Private
Limited (MVPL)'s small scale of operations single product
portfolio; de growth in operating income in last three years
attributable to lower capacity utilization. While assigning the
ratings, ICRA also takes note of the dependence of operations and
cash flows on the performance of real estate industry which is the
main consuming sector, intense competition with presence of large
established organized tile manufacturers and unorganized players
and vulnerability of profitability to increasing prices of gas and
power. Further rating is also constrained by weak financial
profile characterized by low profitability and high working
capital intensity on account of high inventory holding.
The assigned ratings, however, favorably consider the experience
of key promoters in ceramic industry and location advantage
enjoyed by MVPL giving it easy access to raw material.
Mega Vitrified Pvt Ltd was incorporated in March 2007 and is
engaged in manufacturing of vitrified tiles. The company started
commercial production from March 2008. The company has its
production facilities at Morbi, Gujarat with a total manufacturing
capacity of 36000 MTPA.
MILADI FASHIONS: ICRA Suspends B/A4 Rating on INR15cr Bank Loans
----------------------------------------------------------------
ICRA has suspended the [ICRA]B and [ICRA]A4 ratings assigned to
the INR15.00 crore bank lines of Miladi Fashions Pvt. Ltd. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
Miladi Fashions Private Limited was incorporated in July 2010 and
is engaged in the manufacturing, trading and export of readymade
garments and hosiery goods. MFPL has two units located in Ludhiana
and Delhi for the manufacturing of garments. The knitting capacity
of Unit 1 in Ludhiana is approximately 1800 kg per day and unit 2
in Delhi is approximately 400 kg per day.
The promoter had earlier incorporated two other proprietorship
entities namely Royal Incorporation in the year 2001 and Royal
J.P. Incorporation in the year 2008. These entities were engaged
in the trading and export of readymade garments and fabrics. In
December 2012, MFPL had taken over these entities as all the three
companies were into same line of business.
MKG COMPUTERS: CRISIL Reaffirms 'B' Rating on INR100MM Loans
------------------------------------------------------------
CRISIL's rating on the bank facilities of MKG Computers Private
Limited continue to reflect the company's below-average financial
risk profile marked by leveraged capital structure and modest debt
protection metrics, and its modest scale of operations. These
rating weaknesses are partially offset by the experience of
MKGPL's promoters in the computer and laptop distribution
business.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 42.5 CRISIL B/Stable (Reaffirmed)
Overdraft Facility 25 CRISIL B/Stable (Reaffirmed)
Proposed Long Term 22.5 CRISIL B/Stable (Reaffirmed)
Bank Loan Facility
Standby Line of Credit 5 CRISIL B/Stable (Reaffirmed)
Term Loan 5 CRISIL B/Stable (Reaffirmed)
For arriving at the ratings, CRISIL has now only considered
MKGPL's standalone business and financial risk profiles. The
company was earlier consolidated with its group companies Rome
Technologies Private Limited, Bharat Business Corporation (BBC)
and Mron International Pvt Ltd. CRISIL is not consolidating the
business and financial risk profiles of MKGPL with its group
entities because of revised group structure and there shall be no
intercompany business or financial transactions.
Earlier, CRISIL had combined the business and financial risk
profiles of MKGPL, and its group companies Rome Technologies
Private Limited (RTPL), Bharat Business Corporation (BBC) and Mron
International Pvt Ltd (MIPL). This was because all these entities,
together referred to as the MKG group, were engaged in same line
of business, had common ownership, and were expected to support
each other in case of a financial exigency.
Outlook: Stable
CRISIL believes that MKGPL will benefit over the medium term from
its established relationship with key suppliers and its promoters'
extensive experience in the mobiles/laptops distribution business.
The outlook may be revised to 'Positive' if MKGPL scales up
operations while improving its operating profitability, and
strengthens its financial risk profile, most likely through fresh
equity infusion. Conversely, the outlook may be revised to
'Negative' if MKGPL's revenue and profitability come under
pressure, or if its working capital cycle lengthens, or if it
undertakes any large debt-funded capital expenditure programme.
MKGPL, incorporated in 2001, is promoted by Mr. Umesh Garg and his
family members. The company trades in electronic products
including laptops, desktops, and computer accessories. MKGPL's
corporate office is in Agra (UP); it has branch offices in Meerut,
Aligarh, and Ghaziabad (all in UP).
MKGPL reported profit after tax (PAT) of INR1.1 million on
operating income of INR313 million for 2013-14, against PAT of
INR2.1 million on operating income of INR344.7 million for 2012-
13.
MOKIA GREEN: CRISIL Assigns 'B+' Rating to INR250MM Bank Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to bank
facilities of Mokia Green Energy Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term 250 CRISIL B+/Stable
Bank Loan Facility
The rating reflects MGEPL's exposure to risks related to timely
completion and implementation of the solar power project, the
construction of which has not commenced as on date. The rating
also factors in the funding risk for the project, as the project
is yet to tie-up funds. The above-mentioned rating weaknesses are
partially offset by the benefits that MGEPL derives from its long-
term power purchase agreement (PPA) with Punjab State Power
Corporation Ltd.
Outlook: Stable
CRISIL believes that MGEPL's credit risk profile will be
constrained by risks associated with the timeliness of project
completion and subsequent stabilisation of its operations. The
outlook may be revised to 'Positive' if the company completes the
project and stabilises operations with efficient power generation.
Conversely, the outlook may be revised to 'Negative' if the
project incurs any cost overruns, or experiences delays in
stabilising its operations after commissioning.
MGEPL was incorporated in June 2012, as a special-purpose vehicle,
to set up a 4-megawatt (MW) solar power plant in Mansa district
(Punjab). The company successfully bid for the project at a tariff
of INR8.59 per kwh. The proposed project is being developed as a
part of the Government of Punjab's New and Renewable Source of
Energy (NRSE) Policy for 2012.
The project's expected commercial operations date is January 2015.
The project cost, estimated at INR318 million, is being funded in
a debt-to-promoters' contribution ratio of 70:30.
MGEPL has received promoter's contribution of around INR80
million, as on July 30, 2014. Besides, the company has entered
into a lease agreement for land and signed an agreement with PSPCL
to evacuate power at 66 kilo volt (KV) from the 66/11 KV feeder of
its Boha Grid Sub-Station, in proximity to the project site. MGEPL
will develop the evacuation infrastructure as a part of the
project.
The company is a wholly owned subsidiary of Mokia Ltd, a trading
company based in Slovakia. Mr. Sanjay Kumar Rai and his wife, Ms.
Bandana Rai, are MGEPL's promoters.
NICE POULTRY: CRISIL Upgrades Rating on INR110MM Loans to 'B-'
--------------------------------------------------------------
CRISIL has upgraded its rating on the bank facilities of Nice
Poultry Feeds Mill Pvt Ltd to 'CRISIL B-/Stable' from 'CRISIL D'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 79 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Proposed Long Term 19.9 CRISIL B-/Stable (Upgraded
Bank Loan Facility from 'CRISIL D')
Term Loan 11.1 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
The rating upgrade reflects NPFMPL's timely servicing of its term
debt, backed by improved liquidity and funding support of
promoters. Increase in cash accruals, driven mainly by significant
ramp up in scale of operations also supports liquidity. The
revenue has increased at a compound annual growth rate (CAGR) of
87 per cent, to INR359 million in 2013-14 (refers to financial
year, April 1 to March 31) from INR104.10 million in 2011-12. The
company is expected to maintain its improved business risk profile
over the medium term.
NPFMPL's financial risk profile, however, remains weak, marked by
high gearing and modest debt protection metrics. The ratings also
factor in the company's moderate working capital requirements, and
its small scale and short track record of operations. These rating
weaknesses are partially offset by the extensive experience of
NPFPL's promoters in the poultry feeds industry.
Outlook: Stable
CRISIL believes that NPFMPL will continue to benefit over the
medium term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if substantial and sustained
improvement in revenue and profitability strengthens the financial
risk profile. Conversely, the outlook may be revised to 'Negative'
if there significant deterioration in the company's capital
structure and liquidity on account of large working capital
requirements or debt-funded capital expenditure.
NPFMPL, incorporated in 2011, manufactures poultry feed at its
facility in Ghaziabad. NPFPL is promoted by Mr. Rais Ahmad, Mr.
Naeem Ahmad and Ms. Shama Praveen.
PAYYANUR MEDICAL: CRISIL Assigns 'B' Rating to INR150MM Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the bank
facility of Payyanur Medical Service and Research Centre Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 150 CRISIL B/Stable
The rating reflects the company's exposure to project related
risks, primarily emanating from timely project implementation and
stabilization. These rating weaknesses are, however, partially
offset by the management's extensive industry experience, and the
company's limited reliance on external debt to fund the ongoing
project.
Outlook: Stable
CRISIL believes that PMSRC will benefit from the limited presence
of large multi-specialty hospitals in Payyanur, and limited
reliance on external debt to fund the project. The outlook may be
revised to 'Positive' in case of timely completion of the project
within the budgeted cost and if the hospital achieves ramp up of
revenues and accruals faster than expectations. Conversely, the
outlook may be revised to 'Negative' if PMSRC's debt servicing
capability is adversely impacted by project time or cost overruns,
or if the ramp of revenues and accruals is slower than
expectations.
PMSRC was incorporated in 2011. The company is setting up a multi-
specialty hospital, Anaamaya Medical Institute, in Payyannur
(Kannur district, Kerala). The project construction commenced in
November 2011, and is scheduled for completion in January 2015.
PMSRC has 12 directors, 9 of whom are experienced doctors from
various medical faculties.
Dr.M. Haridas, an experienced pediatrician in Payyanur, is PMSRC's
chairman.
PIONEER FABRICATORS: CRISIL Reaffirms C Rating on INR101.6M Loans
-----------------------------------------------------------------
CRISIL's ratings continue to reflect Pioneer Fabricators Pvt Ltd
modest scale of operations in the intensely competitive
engineering industry. These rating weaknesses are partially offset
by the extensive experience of the company's promoters in the
engineering and fabrication industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 120 CRISIL A4 (Reaffirmed)
Cash Credit 100 CRISIL C (Reaffirmed)
Term Loan 0.6 CRISIL C (Reaffirmed)
Proposed Long Term 1 CRISIL C (Reaffirmed)
Bank Loan Facility
Letter of Credit 40 CRISIL A4 (Reaffirmed)
CRISIL has assigned its 'CRISIL A4' rating to the short-term bank
facility of PFPL while reaffirming its rating on the long-term
bank facility at 'CRISIL C'.
Update
PEPL's revenue is estimated at over INR570 million for 2013-14
(refers to financial year, April 1 to March 31) from INR562
million in 2012-13. However, the company's gearing is estimated to
be moderate around 1 time and is expected to remain moderate over
the medium term. PEPL's debt protection metrics are estimated to
be moderate with net cash accruals to total debt and interest
coverage ratios at 0.15 times and 2 times, respectively, for 2013-
14; these ratios are expected to remain moderate over the medium
term. PEPL has been repaying its debt obligations in a timely
manner over the past year; however, there are still some delays in
servicing other debt (not rated by CRISIL) on account of weak
liquidity. PFPL has weak liquidity on account of working-capital-
intensive operations, driven by stretched receivables. Weak
liquidity is also reflected in the company's highly utilised bank
lines.
For 2012-13, PEPL reported profit after tax (PAT) of INR15 million
on net sales of INR562 million against PAT of INR12 million on net
sales of INR426 million for 2011-12.
PFPL was set up in 1988 by Mr. Ramesh Chandra Agarwal in Uttar
Pradesh. It offers engineering services and is involved in
designing and fabrication of iron and steel structures, such as
steel bridge girders, metal crash barriers, railway-track girders,
building structures, guard rails, chain-link fencing, and road
infrastructure. The company also trades in mild steel and
stainless steel in the domestic market.
PRAVEEN SPINNERS: CRISIL Lowers Rating on INR569MM Loan to 'D'
--------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Praveen Spinners (India) Pvt Ltd to 'CRISIL D/CRISIL D' from
'CRISIL B+/Stable/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 15 CRISIL D (Downgraded
from 'CRISIL B+/Stable')
Cash Credit 120 CRISIL D (Downgraded
from 'CRISIL A4')
Long Term Loan 350 CRISIL D (Downgraded
from 'CRISIL B+/Stable')
Proposed Long Term 84 CRISIL D (Downgraded
Bank Loan Facility from 'CRISIL B+/Stable')
The rating downgrade reflects instances of delays by PSIPL in
repaying its debt; the delays have been caused by the company's
weak liquidity resulting from its depressed cash accruals being
inadequate to meet its term debt obligations.
PSIPL has a below-average financial risk profile marked by its
high gearing and weak debt protection metrics. The company also
has large working capital requirements, its profitability margins
are susceptible to volatility in cotton prices, and is exposed to
intense competition in the cotton yarn industry. However, PSIPL
benefits from its plant's advantageous location, and its
promoter's entrepreneurial experience.
PSIPL was established in 2010 by Mr. K Rama Chandra Rao. . The
company is engaged in manufacturing of cotton yarn, and its
spinning mill is located in Krishna district of Andhra Pradesh.
The company commenced operations in 2013.
RAGHAV MADHAV: ICRA Reaffirms 'B+' Rating on INR7cr Loans
---------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B+ assigned to
the INR4.50 crore term loan facility and INR2.50 crore cash credit
facility of Raghav Madhav Filaments Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term loan 4.50 [ICRA]B+
Long Term cash credit 2.50 [ICRA]B+
Facility
The reaffirmation of rating continues to factor in the small scale
of operations of the company, its weak financial profile as
evinced by the subdued profitability levels, highly leverage
capital structure and stretched cash flow position, and the highly
working capital intensive nature of operations due to the high
inventory holding requirements. The rating is further constrained
by the vulnerability of the company's profitability to the
fluctuations in prices of raw materials and the cyclicality
inherent in the textile industry and the fragmented nature of
textile industry, leading to high competitive pressures.
The rating however, draws comfort from the long standing
experience of the promoters in the textile business and the
locational advantage available to the company by virtue of the
proximity of its operating unit to the sources of raw materials
and fabric processing units.
Raghav Madhav Filaments Private Limited was incorporated in 2011
and commenced operations in April 2012. The company has
established a yarn sizing unit at Karanj, Surat (Gujarat) with an
annual installed capacity of ~1800 metric tonnes of sized yarn.
Sized yarn acts as the raw material for further weaving activities
to produce greige fabric.
The promoters of Reliable Polyester Private Limited (RPPL) have a
50% stake in RMFPL and the Board of Directors of RMFPL is presided
by Mr. Ruchir R. Mittal and Ms. Esha R. Mittal, who are the
directors of RPPL.
Recent Results
In FY2014, RMFPL reported a profit before tax of INR0.02 crore on
operating income of INR15.70 crore (provisional). In FY2013, RMFPL
reported a profit after tax of INR0.01 crore on operating income
of INR6.12 crore.
SANGAM FORGINGS: CRISIL Reaffirms 'B' Rating on INR69MM Loans
-------------------------------------------------------------
CRISIL's ratings on the bank facilities of Sangam Forgings Pvt Ltd
continue to reflect the company's working capital intensive
operations, and modest financial risk profile. These weaknesses
are partially offset by the benefits that SFPL derives from its
promoters' extensive experience in the industrial forgings
segment.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL B/Stable (Reaffirmed)
Letter of credit 45 CRISIL A4 (Reaffirmed)
& Bank Guarantee
Proposed Long Term 19 CRISIL B/Stable (Reaffirmed)
Bank Loan Facility
Outlook: Stable
CRISIL believes that SFPL will maintain its credit profile backed
by the experience of its promoters in the forgings business. The
outlook may be revised to 'Positive' in case of significant
improvement in SFPL's scale without impacting operating
profitability, or further weakening financial risk profile.
Conversely, the outlook may be revised to 'Negative' if SFPL's
capital structure weakens considerably on account of a large,
debt-funded capital expenditure programme, or due to lower-than-
expected profitability and cash accruals.
Update
SFPL's revenues have remained in the INR160-170 million range in
the last 2 years; the company's sales have decreased in the last
three years, partly due to decrease in demand from the fertiliser,
chemical and cement industries, and also due to the management
toning down production in keeping with decreasing demand.
SFPL's operating margins improved sharply from the sharp dip seen
in 2011-12 (refers to financial year, April 1-March 31). The
company's operating margin in 2012-13 and 2013-14 has been over 11
per cent, in line with the profitability seen before 2011-12.
However, SFPL's cash accruals remain modest at about INR8.5
million, leading to continued dependence on external funding.
The company's operations are highly working capital intensive,
characterized by high debtor days and large inventory levels.
While debtors are estimated to have decreased in 2013-14, with the
company discounting the letters of credit (LC) from customers, the
inventory levels have increased. The working capital requirements
are met partially through creditors, which are estimated at over
120 days as on March 31, 2014.
SFPL's financial risk profile is impacted also by the net worth of
about INR30 million, as on March 31, 2014; its gearing as on the
date is high at about 2.9 times. The financial risk profile is
partly supported by the presence of unsecured loans from the
promoters, which provides some cushion to the company's liquidity.
SFPL, set up in 1976, is in the business of open dye forging of
wheels, shafts and gear blanks, which are used in the steel,
cement, and fertiliser industries, among others. SFPL is managed
by Mr. Arvind Shah.
For the year 2013-14, SFPL achieved provisional profit after tax
(PAT) of INR1.1 million on net sales of INR181.2 million, compared
to PAT of INR0.7 million on net sales of INR172.6 million in 2012-
13.
SARAVANA TEXTILES: ICRA Reaffirms 'B+' Rating on INR15.5cr Loans
----------------------------------------------------------------
ICRA has reaffirmed the long term rating outstanding on the
INR4.44 term loans (revised from INR6.15 crore), INR7.50 crore
long term fund based facilities, INR3.56 crore proposed fund based
facilities (revised from INR1.85 crore) of Saravana Textiles
Private Limited at [ICRA]B+. ICRA has also re-affirmed the short
term rating outstanding on the INR3.32 crore non fund based
facilities of STPL at [ICRA]A4.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term loan facilities 4.44 [ICRA]B+/reaffirmed
Long term fund based 7.50 [ICRA]B+/reaffirmed
Facilities
Long term proposed 3.56 [ICRA]B+/reaffirmed
fund based facilities
Short term non fund 3.32 [ICRA]A4/reaffirmed
based facilities
In re-affirming the ratings, ICRA takes into account the Company's
relatively modest business profile characterised by small scale of
operations in a highly competitive industry which restricts the
pricing flexibility and its modest financial profile marked by
thin margins, stretched capital structure, moderate coverage
indicators and weak cash flow position. While STPL recorded an
improvement in revenue and profits during 2013-14 on the back of
favourable yarn demand in the domestic market, the Company's
overall accruals continue to remain fairly modest. The working
capital intensity of the company also continues to remain high on
account of high inventory levels maintained, leading to tight
liquidity position as evidenced by fully utilised bank limits.
With cumulative repayment obligation of INR5.7 crore that fall due
over the next five years, the company's ability to improve its
revenue and profits, while managing its working capital position
would be crucial to meet the obligations in a timely manner. The
ratings, however, continue to draw comfort from the significant
experience of promoters in the cotton spinning industry which
supports the overall growth and operations of the Company.
Saravana Textiles Private Limited, was incorporated in July 1984
as Chari Textiles Private limited and is currently engaged in the
manufacturing of cotton yarn. STPL has an installed capacity of
15,808 spindles (expected to add another 920 spindles in October
2014) at its manufacturing unit at Rajapalayam. The company
primarily manufactures hank yarn (~95%) and caters mainly to the
handloom sector in the domestic market through trade depots at
Karur and Ekambarakuppam, Tamil Nadu.
Recent Results
During 2013-14, the company has reported a profit after tax of
INR0.3 crore on an operating income of INR39.7 crore as against a
net loss of INR0.1 crore on an operating income of INR33.1 crore
in the corresponding previous year.
SRI LAKSHMI: ICRA Assigns 'B' Rating to INR11.7cr Loans
-------------------------------------------------------
ICRA has assigned a long term rating of [ICRA]B to INR11.7 crore
fund based limits of Sri Lakshmi Srinivasa Hi-Tech Industries.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 5.7 [ICRA]B assigned
CC Limited 6.0 [ICRA]B assigned
The assigned rating takes into consideration SLSHI's moderate
scale of operations, its moderate profitability, and firm's weak
leverage profile owing to high debt funded capex in FY13 which led
to high gearing levels and stretched debt protection metrics.
Moreover the rating factors in the limited track record of the
firm's operations which given the commoditized and intensely
competitive nature of the rice milling business impacts its
profitability. Apart from above the firm's operations are also
vulnerable to agro climatic risks affecting the availability of
the raw material (paddy), government policies on paddy procurement
and selling of rice and the inherent risks in partnership nature
of the firm viz. Limited ability to raise capital, risk of
dissolution on the death/retirement/insolvency of partners. The
rating however takes comfort from the long experience of the
promoters in the rice industry; easy availability of raw material
owing to presence in a major rice producing region and favorable
demand prospects of the industry as SLSHI's caters to Karnataka
and AP markets where rice is a staple food.
Sri Lakshmi Srinivasa Hi-Tech Industries (SLSHI) is a partnership
firm established in the year 2011 by Mr. T. Srinivas Rao and Ms.
T. Mangadevi. Mr. T. Srinivas Rao has an experience of around 9
years in this line of business and looks after the overall
business operations.. The firm is engaged in the manufacture of
raw rice and parboiled rice. The firm operates from an owned
manufacturing facility which is located at Raichur in Karnataka
and has commenced the commercial operations from March-2013.
Recent Results
For FY2014 (unaudited & provisional), the firm reported an
operating income of INR42.5 crore.
SURYA INNS: ICRA Assigns 'B+' Rating to INR20cr Term Loan
---------------------------------------------------------
An [ICRA]B+ rating has been assigned to the INR20.00 crore
proposed long term loans of Surya Inns Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term loan proposed 20.00 [ICRA]B+ assigned
The assigned rating favourably takes into account the experience
of the promoters in successfully operating a 3-star hotel in
Mahabaleshwar for more than a decade, thereby providing a deep
understanding of the hospitality sector in the area. The rating
also incorporates the likely agreement with Marriott Group, to
manage the new resort under the Courtyard by Marriott brand, once
the construction activities are completed, which will provide a
strong operational support as well as branding for the new resort.
This is likely to result in healthy tourist inflow in the future.
However the current scale of operations remains small, with modest
profit levels. Further the timely completion of construction
activities will also remain a risk, with the construction at a
relatively early stage. In addition, the company is yet to tie-up
funding for its project, delays in which could hamper the progress
of the project as well as impact the financial profile of the
company. Nonetheless, the promoters have demonstrated strong
support in the past, in term of equity infusion as well as
unsecured loans, which provides comfort to an extent.
Surya Inns Limited was incorporated on 13th August 1992 by
promoters, Mr. Sunil Gupta and Mrs. Kavita Gupta to engage in
hospitality and real estate development. The company constructed
its hotel at Mahabaleshwar, Maharashtra "Surya Retreat" which has
been operational since 1996. Surya Retreat, a 3-star hotel, is
located on the Panchgani Mahabaleshwar road, with a view of the
Lingmala waterfalls, and is about 10 kms form the Mahabaleshwar
MSTRC bus stand. In 2009, the company appointed Concept
Hospitality, to manage the hotel, for a contract period of three
years.
The promoters also manage group company, DSG Corp Private Limited
(rated [ICRA]B), which was in the business of sanitary
installations, plumbing, external services and fire fighting. The
company provided these services to diversified projects such as
hospitals, hotels, industries, educational institutions,
commercial buildings, IT parks, residential and group projects. In
2010, Blue Star Limited acquired the business of D S Gupta
Construction Pvt. Ltd for a consideration of INR80cr. The
acquisition was done through Blue Star Electro Mechanical Ltd
(BSEML), a wholly owned subsidiary of Blue Star Limited on a slump
sale basis. Blue Star Limited acquired only the business of DSGCPL
and not the company. Consequently the company has no business
operations currently.
Recent Results
For the twelve months ending March 31, 2014, SIL reported profit
after tax (PAT) of INR0.2 crore (provisional) on revenues of
INR1.6 crore (provisional) as against a PAT of INR0.4 crore on
revenues of INR3.0 crore for the twelve months ending March 31,
2013.
T B S MINES: CRISIL Reaffirms 'D' Rating on INR80MM Loans
---------------------------------------------------------
CRISIL's rating on the long-term bank facilities of T B S Mines &
Minerals Private Limited (TBS; part of the TBS group) continues to
reflect instances of delay by TBS in servicing its term debt; the
delays have been caused by the company's weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 40 CRISIL D (Reaffirmed)
Working Capital 40 CRISIL D (Reaffirmed)
Demand Loan
The TBS group also has a modest scale of operations, and customer
concentration in its revenue profile; it is also susceptible to
regulatory changes in the sand-mining industry. However, the group
has a moderate financial risk profile marked by small net worth,
and benefits from the experience of its promoters in the logistics
industry.
For arriving at its rating, CRISIL has combined the business and
financial risk profile of TBS and TBS Logistics (TBSL). This is
because the two entities, together referred to as the TBS group,
are under a common management and have fungible funds.
The TBS group is promoted by Mr. Suresh Solanki. TBS, incorporated
in 2009-10 (refers to financial year, April 1 to March 31),
provides logistics services for sand transport to Trimex Sands Pvt
Ltd (rated 'CRISIL BBB+/Stable/CRISIL A2'). TBSL, a proprietorship
firm, commenced operations in 2003; it provided logistics services
to iron ore traders and exporters in Bellary (Karnataka). However,
following the mining ban in Bellary, TBSL discontinued the
transport operations. It is currently constructing a railway
siding in Bellary.
For 2013-14, on a provisional basis, TBS group has reported a
profit after tax (PAT) of INR21 million on net sales of INR612
million; the company had reported a net loss of INR5 million on
net sales of INR542 million for 2012-13.
UDUPI POWER: CRISIL Reaffirms D Rating on INR42.23BB Loans
----------------------------------------------------------
CRISIL's ratings on Udupi Power Corporation Ltd's bank facilities
continue to reflect its inability to service its debt in a timely
manner because of liquidity constraints. UPCL's weak liquidity is
on account of the delay in realisation of receivables, primarily
from the Karnataka State Power Distribution Companies (discoms).
The company had receivables of around INR18 billion as on March
31,2014, primarily due to partial recovery of the total amount
billed to Karnataka discoms.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Letter of credit 7,500 CRISIL D (Reaffirmed)
& Bank Guarantee
Long Term Loan 34,739.2 CRISIL D (Reaffirmed)
In February 2014, Central Electricity Regulatory Commission (CERC)
has passed a final tariff order for the tariff period 2009-14 at
INR 4.47 per unit of power sold by UPCL; while determining this
tariff CERC has considered the increase in capital cost of UPCL's
power project. However, the discoms continue to dispute on the
capital cost and related issues and have been paying tariff as
indicated in the interim CERC tariff order at INR4.11 per unit of
power sold. This has led to under recoveries for UPCL. In June
2014, Apellate Tribunal of Electricity (ATE) has ordered the
discoms to make the payments for the current year at the final
tariff determined by CERC; further, ATE has also ordered the
discoms to clear the arrears between February 2013 till March 2014
of INR 3.31 billion, in 8 equal installments starting from June
2014. CRISIL believes that this would provide relief to UPCL in
terms of cash flows and liquidity going forward. ATE is, however,
yet to resolve the matter of collection of remaining arrears of
INR 15 billion and would be a key monitorable over the medium
term.
UPCL has a weak financial risk profile marked by high gearing and
weak debt protection measures. However, the company continues to
benefit from assured offtake for its power generated through power
purchase agreements (PPAs) with utilities in Karnataka and its
ability to pass through increase in fuel costs.
UPCL is a Karnataka-based independent power producer; Lanco
Infratech Ltd (LITL; rated 'CRISIL D/CRISIL D') owns 81.6 per cent
stake in the company. UPCL operates an imported coal-based power
plant near Mangalore (Karnataka), with an installed capacity of
1200 megawatts (MW). The first unit of the plant started
commercial operations in November 2010, and the second unit
commenced operations in August 2012. The units have a capacity of
600 MW each. UPCL has signed a memorandum of understanding with
the Government of Karnataka to expand its power generation
capacity by another 1320 MW.
For the year 2013-14(financial year between April to March), UPCL
had a net profit after tax(PAT) of INR 1.24 billion on an
operating income of INR 30.37 billion as against PAT of INR 0.42
billion in 2012-13 on an operating income of INR 27.61 billion.
ULTIMA SWITCHGEARS: CRISIL Reaffirms B+ Rating on INR75MM Loans
---------------------------------------------------------------
CRISIL ratings on the bank loan facilities of Ultima Switchgears
Ltd continue to reflect the company's large working capital
requirements and modest scale of operations. These rating
weaknesses are partially offset by the extensive experience of
USL's promoters in the power transmission and distribution (T&D)
industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 50 CRISIL A4 (Reaffirmed)
Bill Discounting 15 CRISIL A4 (Reaffirmed)
Letter of Credit
Cash Credit 60 CRISIL B+/Stable (Reaffirmed)
Proposed Bank
Guarantee 10 CRISIL B+/Stable (Reaffirmed)
Term Loan 5 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that USL will continue to benefit over the medium
term from its promoters' industry experience. The outlook may be
revised to 'Positive' in case of substantial and sustained
improvement in the company's revenue and profitability margins or
in its working capital management. Conversely, the outlook may be
revised to 'Negative' in case of steep decline in the company's
profitability margins or significant deterioration in its capital
structure on account of large working capital requirements or
debt-funded capital expenditure.
Update
USL revenues remained flat, at around INR225 million for 2013-14
(refers to financial year, April 1 to March 31) because of partial
execution of orders from Himachal Pradesh Electricity Board on
account of domestic hurdles and non-allocation of budget by the
state government. However, USL's operating margin increased by
around 250 basis points year-on-year to 8.17 per cent in 2013-14
on account of reduction in fixed overheads. The company's topline
is expected to grow at a moderate rate of 8 to 10 per cent over
the medium term, backed by healthy order book of around INR250
million to be executed in the next 12 months; its operating margin
is expected to remain moderate on account of low value addition in
operations and exposure to intense competition.
The company's operations are highly working capital intensive, as
reflected in its estimated gross current assets (GCAs) of around
496 days as on March 31, 2014; the GCA days were at a similar
level in the past. The high GCA days emanate from large inventory
of around 163 days and receivables of 293 days. As a result, the
company's bank limit utilisation was high, averaging 97 per cent
for the 12 months through June 2014. USL's net worth remains
moderate, at around INR175 million as on March 31, 2014. The
company has limited debt on its books contracted for funding
working capital requirements; low debt and moderate net worth
result in healthy gearing, estimated at around 0.5 times as on
March 31, 2014.
Incorporated in 1997, USL manufactures electrical components such
as electrical control panels and boards, switchgears, suspension
clamps, and drop-out fuses. The company's day-to-day operations
are managed by Mr. D V Parmar.
=================
I N D O N E S I A
=================
FAJAR SURYA: Fitch Affirms 'B+' IDR; Outlook Stable
---------------------------------------------------
Fitch Ratings has affirmed Indonesia-based PT Fajar Surya Wisesa
Tbk's (Fajar) Long-Term Foreign and Local Currency Issuer Default
Ratings (IDRs) at 'B+' and its National Long-Term Rating at
'A(idn)'. The Outlook is Stable. The agency has simultaneously
withdrawn the ratings because they are no longer considered to be
relevant by Fitch to the agency's coverage. Therefore Fitch will
no longer provide ratings or analytical coverage for the packaging
company.
'A' National Ratings denote expectations of low default risk
relative to other issuers or obligations in the same country.
However, changes in circumstances or economic conditions may
affect the capacity for timely repayment to a greater degree than
is the case for financial commitments denoted by a higher rated
category.
KEY RATING DRIVERS
Capex to Expand Capacity: Fajar's new plant, PM-8, is expected to
cost about USD150m and is expected to increase production capacity
to about 1.55 million metric tonnes in 2016 from the current 1.2
million tonnes. PM-8 will ensure the company has adequate
capacity until about 2018-2019 before it would be required to
invest in additional expansion to maintain its market share in the
growing Indonesian packaging sector. The company has a good track
record of achieving healthy utilisation rates soon after
installation of new machinery.
High Leverage: Fitch expects Fajar's leverage to peak at about
4.5x in 2015 as a result of its investment in PM-8. However,
Fitch expects this to gradually start decreasing from 2016 when
PM-8 becomes operational. Leverage in 2013 increased as a result
of the depreciation of the rupiah, which increased its year-end
debt balances - about 75% of which is denominated in US dollars.
The rupiah was about 27% weaker at end-2013 from a year earlier.
Fitch expects Fajar's leverage to remain above 4.0x in 2014
because its EBITDA margins will be stressed due to delays in
passing through costs.
Strong Market Position: Fitch believes Fajar's strong pricing
ability will allow the company to gradually pass through a
meaningful share of raw-material cost increases over the medium
term. While the company usually takes about three-four months to
pass through cost increases, the severe and prolonged weakening of
the rupiah since mid-2013 has delayed the full passing through of
exchange rate-driven cost increases. While its EBITDA margins
have fallen to about 10% in the 1H14 from 14% in 2013 we expect
that the margins would be able to gradually recover when exchange
rates stabilize. That said a continued escalation of raw-material
costs, potentially due to a further weakening of exchange rates,
could dampen margins and in turn affect its leverage and ability
to service its debt.
Fajar and its closest competitor, PT Indah Kiat Pulp & Paper Tbk
each hold about 30% of the Indonesian containerboard market.
Containerboard sales comprise over 80% of Fajar's revenues.
Demand for its products is strong and the company recorded an
annualized increase of 12% in volumes in 1H14.
Adequate Liquidity: Fajar has secured long-term debt with a
comfortable repayment schedule to fund its USD150m PM-8 expansion.
The company has demonstrated a strong access to bank funding and
we believe that this ability should help it continue to roll over
and refinance its debt maturities in the medium term. At end-June
2014 Fajar had IDR95bn of cash reserves, annualised cash flow from
operations of about IDR1trn and over IDR3trn of undrawn credit
facilities (IDR1.7trn for PM-8). Its long-term debt maturities
amount to about IDR220bn to IDR850bn per year over the next two to
three years.
====================
N E W Z E A L A N D
====================
LAKEVIEW RESORTS: Receivership 'Tidying Up'
-------------------------------------------
Simon Hartley at Otago Daily Times reports that Queenstown
apartment developer Ross Wensley's company Lakeview Resorts Ltd
has been placed in receivership.
Mr. Wensley is the company's sole director and 79.75% shareholder.
Receiver BDO Christchurch was sent questions by email, but did not
respond.
The report notes that Mr. Wensley said, when contacted, the
Lakeview receivership was "just part of tidying up various
companies", but declined any further comment on the reason for the
receivership.
The report discloses that Mr. Wensley is well known around
Queenstown, having told the ODT in 2009 he had built an estimated
400 apartments since the mid-1990s in nine projects, including The
Club (44), The Shore (84) and The Beacon (77).
In July 2009, his Wensley Developments Ltd, incorporated in 1951,
was placed in liquidation by him, owing an estimated NZ$10 million
plus at the time, the report recalls.
The company itself was owed more than NZ$20 million from its NZ$37
million, 28-apartment Marina Baches complex in Queenstown, after
20 apartment buyers had failed to settle, the report says.
At the time, during the worst of the financial crisis, apartment
prices had plunged, the report relays.
Mr. Wensley told the ODT at the time that of the NZ$10 million
owed by his company, all but $700,000 was owed to other Wensley
companies through inter-company loans, the report says.
There were 33 creditors at the time, including the Queenstown
Lakes District Council and the former Lakes Environmental, the
report recalls.
The report relays that the Wensley Developments liquidation was
completed only last December. The secured lenders were unable to
be paid in full, and there were no proceeds for other creditors.
There was NZ$139,600 in asset realizations, most of which went in
liquidators, legal and professional fees, the report adds.
SOVEREIGN STATION: Swamp Kauri Firm Goes Into Liquidation
---------------------------------------------------------
The New Zealand Herald reports that a swamp kauri company fined
for draining protected wetland in Northland's "black gold rush"
has failed owing more than NZ$5 million.
The company, Sovereign Station Trustee, owns a 940ha Northland
property in a wetland known as the Kaimaumau swamp, about 30km
north of Kaitaia, the Herald says.
The Herald relates that the company, according to its liquidator,
was set up in 2010 when it purchased land "for the purpose of
extracting swamp kauri for export to Chinese markets".
While it was looking to cash in on the "black gold" trade,
Sovereign Station became embroiled in litigation with the
Northland Regional Council, which saw it fined NZ$50,000 for
breaching the Resource Management Act, the report notes.
After defaulting to both secured and unsecured creditors, the
company was in July put into liquidation and receivership, says
the Herald.
According to the Herald, liquidator Grant Reynolds released his
report into the company's affairs earlier this month, showing
debts of more than NZ$5 million.
Secured creditors have a NZ$2.5 million mortgage over the
property, the report says. However, the book value of this
property is only NZ$1.89 million, the liquidator, as cited by
Herald, said.
Inland Revenue is owed NZ$220,000 while unsecured creditors and
suppliers are owed NZ$2.86 million, the liquidator's report added.
===========
T A I W A N
===========
GLOBAL LIFE: Fubon, Cathay Mulls Acquiring Ailing Insurers
----------------------------------------------------------
Tien Yu-pin, Wu Ching-chun and Frances Huang at CNA report that
Fubon Financial Holding Co. and Cathay Financial Holding Co., two
of Taiwan's leading financial institutions, said on August 13 that
they will study the feasibility of acquiring two ailing life
insurers that were taken over by regulators.
But both Fubon Financial and Cathay Financial said they would wait
to see the terms offered by financial authorities before looking
into the possibility of making a deal for financially troubled
Global Life Insurance and Sinfor Life Insurance, relates CNA.
The report notes that the two financial holding companies already
have life insurance units. Fubon Life Insurance is Fubon
Financial's flagship insurance unit, while Cathay Life Insurance
is one of Cathay Financial's major sources of income.
According to CNA, the comments came after the Financial
Supervisory Commission (FSC), Taiwan's top financial regulator,
announced on August 12 that it had taken over the two debt-ridden
insurers in a bid to prevent their financial conditions from
worsening further.
It is now planning to hold auctions next year to find suitors for
Global Life and Singfor Life, the report notes.
Analysts cited Mega Financial Holding Co., E. Sun Financial
Holding Co. and China Development Financial Holding Co. as other
potential buyers, according to CNA.
CNA relates that the FSC said it made the move because the two
life insurers' net worth was continuing to decline after years of
losses.
As of the end of the second quarter, Global Life's net worth had
fallen to minus NT$25.2 billion (US$840 million), compared with
minus NT$23.2 billion recorded at the end of 2013, the report
discloses. Singfor Life's net worth had dropped to minus NT$23.9
billion as of the end of June from minus NT$23.3 billion at the
end of last year.
In addition, the risk-based capital (RBC) ratios of Global Life
and Singfor Life were lower than the minimum 200 percent required
by the Insurance Act, the FCS said, but it declined to disclose
the two insurers' RBC ratios, CNA relays.
In announcing the takeover, CNA adds, the FSC said that the
employees and customers of Global Life and Singfor Life will be
fully protected.
Global Life and Singfor said their operations remained normal
after the takeovers, the report adds.
Currently, Global Life has 393,000 policyholders and 545
employees, while Singfor Life has 136,000 policyholders and 706
employees.
===============
X X X X X X X X
===============
* BOND PRICING: For the Week August 11 to August 15, 2014
---------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA
---------
BOART LONGYEAR MAN 7.00 04/01/21 USD 74.65
BOART LONGYEAR MAN 7.00 04/01/21 USD 76.36
GRIFFIN COAL MININ 9.50 12/01/16 USD 70.88
GRIFFIN COAL MININ 9.50 12/01/16 USD 70.88
MIDWEST VANADIUM P 11.50 02/15/18 USD 41.55
MIDWEST VANADIUM P 11.50 02/15/18 USD 44.58
MIRABELA NICKEL LT 8.75 04/15/18 USD 23.25
MIRABELA NICKEL LT 8.75 04/15/18 USD 24.00
NEW SOUTH WALES TR 0.50 09/14/22 AUD 74.30
NEW SOUTH WALES TR 0.50 10/07/22 AUD 74.09
NEW SOUTH WALES TR 0.50 10/28/22 AUD 73.90
NEW SOUTH WALES TR 0.50 12/16/22 AUD 73.86
NEW SOUTH WALES TR 0.50 11/18/22 AUD 73.70
NEW SOUTH WALES TR 0.50 02/02/23 AUD 73.97
NEW SOUTH WALES TR 0.50 03/30/23 AUD 72.86
RELIANCE RAIL FINA 2.97 09/26/20 AUD 71.75
RELIANCE RAIL FINA 2.97 09/26/20 AUD 71.75
TREASURY CORP OF V 0.50 11/12/30 AUD 52.38
TREASURY CORP OF V 0.50 08/25/22 AUD 75.09
TREASURY CORP OF V 0.50 03/03/23 AUD 73.44
CHINA
-----
CHANGCHUN CITY DEV 6.08 03/09/16 CNY 70.52
CHANGCHUN CITY DEV 6.08 03/09/16 CNY 70.57
CHANGZHOU SMALL & 6.18 11/29/14 CNY 60.21
CHINA GOVERNMENT B 1.64 12/15/33 CNY 64.28
DANYANG INVESTMENT 6.30 06/03/16 CNY 70.00
GUANGXI XINFAZHAN 5.75 11/30/14 CNY 39.86
KUNSHAN ENTREPRENE 4.70 03/30/16 CNY 69.28
KUNSHAN ENTREPRENE 4.70 03/30/16 CNY 69.32
QINGZHOU HONGYUAN 6.50 05/22/19 CNY 49.92
QINGZHOU HONGYUAN 6.50 05/22/19 CNY 49.18
ZHENJIANG CITY CON 5.85 03/30/15 CNY 70.13
ZHENJIANG CITY CON 5.85 03/30/15 CNY 70.41
ZHUCHENG ECONOMIC 7.50 08/25/18 CNY 57.16
ZIBO CITY PROPERTY 5.45 04/27/19 CNY 59.08
ZOUCHENG CITY ASSE 7.02 01/12/18 CNY 70.75
INDONESIA
---------
DAVOMAS INTERNATIO 11.00 12/08/14 USD 19.38
DAVOMAS INTERNATIO 11.00 12/08/14 USD 19.38
INDONESIA TREASURY 6.38 04/15/42 IDR 74.87
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 41.13
CORE EDUCATION & T 7.00 05/07/15 USD 9.25
COROMANDEL INTERNA 9.00 07/23/16 INR 16.12
DEWAN HOUSING FINA 5.50 09/24/23 INR 72.32
GTL INFRASTRUCTURE 2.53 11/09/17 USD 36.49
INDIA GOVERNMENT B 0.23 01/25/35 INR 20.06
JCT LTD 2.50 04/08/11 USD 20.00
MASCON GLOBAL LTD 2.00 12/28/12 USD 10.00
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 25.99
JAPAN
-----
ELPIDA MEMORY INC 0.70 08/01/16 JPY 13.13
ELPIDA MEMORY INC 0.50 10/26/15 JPY 14.25
ELPIDA MEMORY INC 2.10 11/29/12 JPY 14.25
ELPIDA MEMORY INC 2.29 12/07/12 JPY 16.13
ELPIDA MEMORY INC 2.03 03/22/12 JPY 14.38
JAPAN EXPRESSWAY H 0.50 03/18/39 JPY 70.43
JAPAN EXPRESSWAY H 0.50 09/17/38 JPY 70.92
KOREA
-----
EXPORT-IMPORT BANK 0.50 10/23/17 TRY 72.39
EXPORT-IMPORT BANK 0.50 12/22/17 BRL 66.85
EXPORT-IMPORT BANK 0.50 12/22/17 TRY 71.05
EXPORT-IMPORT BANK 0.50 12/22/16 BRL 75.16
EXPORT-IMPORT BANK 0.50 11/21/17 BRL 68.31
GREAT KODIT SECURI 10.00 09/29/14 KRW 73.16
HYUNDAI MERCHANT M 7.05 12/27/42 KRW 45.45
KIBO ABS SPECIALTY 10.00 08/22/17 KRW 32.34
KIBO ABS SPECIALTY 10.00 02/19/17 KRW 29.82
KIBO ABS SPECIALTY 10.00 09/04/16 KRW 30.47
KOREA LAND & HOUSI 3.99 03/26/44 KRW 73.90
SINBO CONSTRUCTION 10.00 09/29/14 KRW 73.16
SINBO SECURITIZATI 5.00 03/14/16 KRW 72.39
SINBO SECURITIZATI 8.00 02/02/15 KRW 74.88
SINBO SECURITIZATI 5.00 02/02/16 KRW 73.03
SINBO SECURITIZATI 8.00 03/07/15 KRW 74.20
SINBO SECURITIZATI 5.00 12/07/15 KRW 72.51
SINBO SECURITIZATI 5.00 01/19/16 KRW 72.45
SINBO SECURITIZATI 5.00 09/13/15 KRW 73.10
SINBO SECURITIZATI 5.00 09/13/15 KRW 62.52
SINBO SECURITIZATI 5.00 08/24/15 KRW 70.81
SINBO SECURITIZATI 5.00 07/19/15 KRW 70.93
SINBO SECURITIZATI 5.00 05/27/16 KRW 30.16
SINBO SECURITIZATI 5.00 10/05/16 KRW 29.83
SINBO SECURITIZATI 5.00 09/28/15 KRW 70.77
SINBO SECURITIZATI 5.00 10/05/16 KRW 29.83
SINBO SECURITIZATI 5.00 12/13/16 KRW 29.66
SINBO SECURITIZATI 5.00 07/26/16 KRW 29.94
SINBO SECURITIZATI 5.00 07/26/16 KRW 29.94
SINBO SECURITIZATI 5.00 01/29/17 KRW 29.57
SINBO SECURITIZATI 5.00 06/29/16 KRW 30.05
SINBO SECURITIZATI 5.00 02/21/17 KRW 27.95
SINBO SECURITIZATI 5.00 08/16/16 KRW 30.08
SINBO SECURITIZATI 5.00 08/31/16 KRW 29.85
SINBO SECURITIZATI 5.00 08/31/16 KRW 29.85
SINBO SECURITIZATI 5.00 08/16/17 KRW 30.07
SINBO SECURITIZATI 5.00 08/16/17 KRW 30.07
SINBO SECURITIZATI 5.00 05/27/16 KRW 30.16
SINBO SECURITIZATI 4.60 06/29/15 KRW 72.45
SINBO SECURITIZATI 4.60 06/29/15 KRW 72.45
SINBO SECURITIZATI 5.00 02/21/17 KRW 29.45
SINBO SECURITIZATI 5.00 03/13/17 KRW 29.47
SINBO SECURITIZATI 5.00 07/08/17 KRW 30.27
SINBO SECURITIZATI 5.00 07/08/17 KRW 30.27
SINBO SECURITIZATI 5.00 03/13/17 KRW 29.47
SINBO SECURITIZATI 5.00 06/07/17 KRW 27.47
SINBO SECURITIZATI 5.00 06/07/17 KRW 27.47
TONGYANG CEMENT & 7.50 04/20/14 KRW 70.00
TONGYANG CEMENT & 7.50 07/20/14 KRW 70.00
TONGYANG CEMENT & 7.50 09/10/14 KRW 70.00
TONGYANG CEMENT & 7.30 06/26/15 KRW 70.00
TONGYANG CEMENT & 7.30 04/12/15 KRW 70.00
U-BEST SECURITIZAT 5.50 11/16/17 KRW 29.85
WOONGJIN ENERGY CO 2.00 12/19/16 KRW 60.89
SRI LANKA
---------
SRI LANKA GOVERNME 5.35 03/01/26 LKR 65.49
MALAYSIA
--------
BANDAR MALAYSIA SD 0.35 02/20/24 MYR 64.13
BANDAR MALAYSIA SD 0.35 02/22/21 MYR 74.96
BRIGHT FOCUS BHD 2.50 01/22/31 MYR 68.57
BRIGHT FOCUS BHD 2.50 01/24/30 MYR 69.97
SENAI-DESARU EXPRE 1.35 12/31/29 MYR 57.32
SENAI-DESARU EXPRE 1.15 06/30/23 MYR 70.04
SENAI-DESARU EXPRE 1.35 06/29/29 MYR 58.21
SENAI-DESARU EXPRE 1.35 06/30/28 MYR 60.04
SENAI-DESARU EXPRE 1.15 12/30/22 MYR 71.64
SENAI-DESARU EXPRE 1.35 12/31/30 MYR 55.57
SENAI-DESARU EXPRE 1.35 12/29/28 MYR 59.13
SENAI-DESARU EXPRE 1.15 06/30/25 MYR 64.52
SENAI-DESARU EXPRE 1.35 06/30/27 MYR 61.99
SENAI-DESARU EXPRE 1.15 12/31/24 MYR 65.71
SENAI-DESARU EXPRE 1.10 06/30/22 MYR 72.91
SENAI-DESARU EXPRE 1.35 12/31/25 MYR 65.07
SENAI-DESARU EXPRE 1.35 06/30/31 MYR 54.71
SENAI-DESARU EXPRE 1.35 06/28/30 MYR 56.47
SENAI-DESARU EXPRE 1.15 06/28/24 MYR 66.99
SENAI-DESARU EXPRE 1.15 12/29/23 MYR 68.50
SENAI-DESARU EXPRE 1.35 06/30/26 MYR 63.99
SENAI-DESARU EXPRE 1.35 12/31/26 MYR 62.99
SENAI-DESARU EXPRE 1.35 12/31/27 MYR 61.01
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 9.25
BLD INVESTMENTS PT 8.63 03/23/15 USD 30.00
BUMI CAPITAL PTE L 12.00 11/10/16 USD 52.45
BUMI CAPITAL PTE L 12.00 11/10/16 USD 50.02
BUMI INVESTMENT PT 10.75 10/06/17 USD 49.75
BUMI INVESTMENT PT 10.75 10/06/17 USD 50.53
ENERCOAL RESOURCES 9.25 08/05/14 USD 35.03
INDO INFRASTRUCTUR 2.00 07/30/10 USD 1.88
THAILAND
--------
G STEEL PCL 3.00 10/04/15 USD 13.63
MDX PCL 4.75 09/17/03 USD 17.13
*********
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
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thereof are US$25 each. For subscription information, contact
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*** End of Transmission ***