/raid1/www/Hosts/bankrupt/TCRAP_Public/141023.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
Thursday, October 23, 2014, Vol. 17, No. 210
Headlines
A U S T R A L I A
BALI D'LUXE: Reportedly Accepted Deposit Days Before Liquidation
COALPAC PTY: To Liquidate After Mine Expansion Bid Rejected
ESSENTIAL SMASH: First Creditors' Meeting Set For Oct. 28
PATINACK FARM: First of 4 Horse Stud Farm Auction Begins Today
PROJECT SUNSHINE IV: Moody's Changes Outlook on B2 CFR to Neg.
ROAD MAINTENANCE: First Creditors' Meeting Set For Oct. 29
TELSMART PTY: In Administration; 1st Meeting Set For Oct. 30
VAN EYK RESEARCH: Placed Into Liquidation
C H I N A
WINSWAY ENTERPRISES: Fitch Affirms 'CCC' Issuer Default Rating
I N D I A
A.N.E. INDUSTRIES: CRISIL Cuts Rating on INR200MM Cash Loan to C
AARCOT CERAMIC: CRISIL Assigns B+ Rating to INR46MM Term Loan
ANJANI COTTON: ICRA Reaffirms B+ Rating on INR18cr Cash Credit
BHAMBRA OVERSEAS: ICRA Suspends B+ Rating on INR5cr FB Loan
DEVGAN RICE: CRISIL Lowers Rating on INR110MM Cash Credit to 'D'
DOLLY EXIM: ICRA Reaffirms B Rating on INR12cr LT Fund Based Loan
GALAXY GLASS: CRISIL Assigns B+ Rating to INR34.5MM Cash Credit
GREYS EXIM: CRISIL Reaffirms 'B' Rating on INR143MM Cash Credit
GUJARAT HIFLOW: ICRA Revises Rating on INR4.5cr Cash Credit to B
HIMSON TEXTILE: ICRA Revises Rating on INR7cr Cash Credit to 'B'
HINDUSTHAN CALCINED: ICRA Reaffirms B- Rating on INR8cr Cash Loan
KADVANI FORGE: ICRA Revises Rating on INR25cr Cash Credit to 'B'
KAMAL SUITINGS: CARE Ups Rating on INR6.54cr Bank Loan to 'B+'
KB ISPAT: ICRA Assigns 'B+' Rating to INR7cr Term Loan
LIBRA FABRIC: CRISIL Ups Rating on INR85MM Cash Credit to B+
MEGHDOOT GINNING: ICRA Reaffirms B+ Rating on INR30cr Cash Credit
OMARK INTERNATIONAL: CARE Assigns B+ Rating to INR7cr Bank Loan
PATSPIN INDIA: CARE Revises Rating on INR220.43cr Bank Loan to B+
PURULIA CHEMICALS: CRISIL Cuts INR30M Bank Guarantee Rating to D
R.B.CREATION: CRISIL Cuts Rating on INR37.5MM Loan to 'D'
RAVINA HEALTH: CRISIL Reaffirms B Rating on INR160MM Term Loan
S D BANSAL: ICRA Suspends 'C' Rating on INR12cr Fund Based Loan
SAMARPAN SYNTHETICS: CARE Ups Rating on INR15.84cr Loan to B+
SKS POWER: CARE Lowers Rating on INR2,840cr Bank Loan to 'D'
TRACK INNOVATIONS: ICRA Reaffirms 'B' Rating on INR15cr Loan
TUSHAR FABRICS: CRISIL Assigns 'B' Rating to INR45MM Cash Credit
VIGNAN VIDYALAYAS: ICRA Ups Rating on INR15.06cr Term Loan to B+
VIRAT SPINNERS: CARE Reaffirms B+ Rating on INR28cr Bank Loan
ZED VITRIFIED: ICRA Reaffirms B+ Rating on INR13.4cr Term Loan
* INDIA: New Bankruptcy Law Likely to Help SMEs
S O U T H K O R E A
MONEUAL INC: Seeks Court Receivership After Bond Payment Default
- - - - -
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A U S T R A L I A
=================
BALI D'LUXE: Reportedly Accepted Deposit Days Before Liquidation
----------------------------------------------------------------
Insolvency News reports that Bali D'Luxe, a collapsed Bali wedding
planning company, owes thousands of dollars to Australian couples.
Insolvency News says that it has been found that the company still
took deposits just days before it went down. There are more than
10 couples across Australia who are owed a combined total of more
than AUD200,000.
Insolvency News relates that a Consumer Protection WA commissioner
said it would take some time before Bali D'Luxe's customers get
their money back because they have to join the queue with everyone
else who is owed money.
However, he said "If you made a Bali D'Luxe booking with a credit
card or selecting 'credit' on a debit card, you should seek a
chargeback (transaction reversal) from your card provider because
you did not receive any goods or services in return for the amount
paid," the report relays.
COALPAC PTY: To Liquidate After Mine Expansion Bid Rejected
-----------------------------------------------------------
Andrew Clennell at The Daily Telegraph reports that Coalpac Pty
Ltd is set to go into liquidation after it received a refusal of
an application to extend a coal mine near Lithgow from the
Planning Assessment Commission.
The report says the refusal has come despite the Planning
department recommending that the project be approved.
Both Treasury and the Department of Trade and Investment had
supported the project on the basis the supply of the coal would
help keep electricity prices down, The Daily Telegraph relates.
Last year, the Planning Assessment Commission knocked a larger
proposal from the firm on the head, the report recalls.
"This state's in one hell of a mess as far as the planning system
is concerned, it's just a joke," the report quotes Coalpac chief
executive Ian Follington as saying. "The planning department gave
us a 100 per cent positive report.
"My view was they [the Planning Assessment Commission] were
bedazzled by what the PAC said before and couldn't get off it.
"It means we have to go into liquidation as we've got no reason to
continue to trade."
The decision will cost hundreds of jobs, the report adds.
Coalpac Pty Ltd is a privately owned, Australian coal mining
company that operates the existing Invincible Colliery and Cullen
Valley Mine.
ESSENTIAL SMASH: First Creditors' Meeting Set For Oct. 28
---------------------------------------------------------
Bruce Gleeson -- bgleeson@jonespartners.net.au -- of Jones
Partners Insolvency was appointed as administrators of Essential
Smash Repairs Pty Ltd on Oct. 16, 2014.
A first meeting of the creditors of the Company will be held at
Jones Partners Insolvency & Business Recovery, Level 13, 189 Kent
Street, in Sydney, on Oct. 28, 2014, at 10:00 a.m.
PATINACK FARM: First of 4 Horse Stud Farm Auction Begins Today
--------------------------------------------------------------
Jonathan Chancellor and Paddy Manning at Property Observer reports
that everyone knows Harvey Norman co-founder Gerry Harvey will
want to mop up the last of his debt, but the Australian Taxation
Office will also be watching closely when the first of former
mining magnate Nathan Tinkler's four stud farm auctions gets
underway today, October 23.
Property Observer says the Tax Office has taken the unusual step
of registering two mortgages over the stud farms following their
recent deed of settlement with the coal baron.
According to the report, title searches show one deed relates to a
AUD0.1 million debt, signed last month between the Tax
Commissioner and Tinkler himself (and witnessed by his sister
Donna), five Patinack entities, and the companies that own the
Newcastle Jets A-League team and formerly owned the Newcastle
Knights rugby league team.
A separate deed over a AUD19.5 million debt, signed in May, is
between the Tax Commissioner, the Tinkler group of companies and
four Patinack Farm entities, the report relates.
Property Observer notes that Mr. Tinkler reportedly owed
Mr. Harvey about AUD40 million and was forced to break up his
beloved Patinack Farm operation after a touted AUD130 million sale
to a Middle Eastern consortium, led by mysterious Dubai-based
Cibola Capital, fell through earlier this year.
A four-day total stud dispersal sale at Harvey's Magic Millions
auctions on the Gold Coast netted AUD34 million, Property Observer
recalls. Reports suggested Mr. Harvey has either been paid in
full or was close to being extinguished. It is unclear whether the
Tax Office ranks ahead of Mr. Harvey, or vice versa, Property
Observer relates.
Property Observer says listing agents expect somewhere between
AUD43 million and AUD60 million is likely to be recouped in the
four stud farm sales over the next fortnight.
According to Property Observer, the Australian Financial Review
reckoned the sales would leave Mr. Tinkler with a fortune of
AUD50 million to "play with" but the tally does not include
outstanding tax debts, or the other unpaid creditors lining up
against him.
Auditors Ernst and Young filed a wind-up application against a
number of the Patinack Farm entities in July, Property Observer
discloses.
The report notes that Patinack Farm, Canungra, Queensland, is the
initial offering, with 447 hectares comprising four properties
known as Wadham Park, Elysian Fields, Benobble and Sarahvale
listed through LJ Hooker Surfers Paradise.
The price estimates for the four Canungra properties range from
AUD18 million to AUD23 million in total, the report notes.
LJ Hooker agent Cameron McPhie has advised at least five
international buyers have inspected the property, with three from
Hong Kong, and one from Europe and one from the US, says Property
Observer.
Next week, Patinack Farm's Hunter Valley complex, Richmond Grove
Stud, a 1337-hectare property goes under the hammer, likely to
fetch between AUD17 million and AUD25 million, the report says.
Patinack Farm's 1397-hectare Tremayne property in Broke will also
go up for October 30 auction with sale estimates around AUD6 to
AUD9 million.
The final Patinack property Banoon, in Monegeetta, Victoria, has
been scheduled for an October 31 auction with Keating Real Estate
suggesting a sale between AUD2 million and AUD3 million, which
would represent a loss, the report adds.
The Troubled Company Reporter-Asia Pacific, citing Bloomberg News,
reported on May 10, 2013, that Nathan Tinkler's Mulsanne Resources
Pty was ordered liquidated by a New South Wales state judicial
officer on Nov. 20, 2012, after the company failed to pay AUD28.4
million for shares in coal developer Blackwood Corp. His Patinack
Farm Administration Pty was put in liquidation a day later by a
federal judge in Adelaide over a debt to Workcover Corp. of South
Australia. Mr. Tinkler also lost ownership of his personal jet
and helicopter after a financing company pushed TGHA Aviation Pty
into receivership on Nov. 23, 2012. He has avoided other of his
companies being pushed into bankruptcy
with settlements at the last minute, including an agreement with
Mirvac Group (MGR) over a failed property deal.
PROJECT SUNSHINE IV: Moody's Changes Outlook on B2 CFR to Neg.
--------------------------------------------------------------
Moody's Investors Service has changed the outlook on Project
Sunshine IV Pty Ltd's B2 Corporate Family Rating (CFR) to negative
from stable. At the same time, Moody's has assigned a B2 rating,
with a negative outlook, to the company's upsized $450 million
senior secured term loan B facility. The facility amount
supersedes the previous amount of $315million.
Project Sunshine is the 100% owner of Sensis Pty Ltd (Sensis),
which is Australia's leading provider of telephone directory
services.
Ratings Rationale
"The change in outlook to negative reflects the increase in the
amount of the loan facility - from the previous debt outstanding
of $315 - and which narrows the headroom within the B2 rating",
says Saranga Ranasinghe, a Moody's Analyst. The increase in the
amount of the facility was used to fund a distribution to equity
holders.
"Moody's had previously indicated that if Project Sunshine upsized
the term loan to $450 million, the outlook on the rating would
likely change to negative from stable, Ranasinghe says, adding
"the negative outlook considers a more aggressive dividend policy
relative to Moody's previous expectation, and increases the risk
that the company may be unable to delever as previously expected".
As a result, maintenance of an acceptable financial profile in
order to offset the risks associated with an industry in material
decline, will be more challenging.
Project Sunshine' operating profile is weak given the structural
decline of the industry sector in which Sensis operates, namely
print and digital directories.
The rating could face further negative pressure in the event that
the company's revenue and earnings deteriorate faster than Moody's
current expectations, or if the company fails to de-lever as
expected to below 1.25x in FY15, carries out further debt-funded
shareholder friendly initiatives or fails to generate positive
free cash flow in any year.
Upward pressure on the rating is unlikely given the uncertainties
and risks associated with the structural decline of the industry
sector in which the company principally operates. Nevertheless,
the rating outlook could revert to stable if the company is able
to accelerate its revenue and earnings growth from digital
services on a sustained basis. Indicators that Moody's would look
for include digital earnings constituting more than 50% of total
earnings and EBIT margins improving to around 20%, also on a
sustained basis.
Project Sunshine is the 100% owner of Sensis Pty Ltd (Sensis),
which is Australia's leading provider of telephone directory
services.
The principal methodology used in this rating was Global
Publishing Industry published in December 2011.
ROAD MAINTENANCE: First Creditors' Meeting Set For Oct. 29
----------------------------------------------------------
Shane Leslie Deane -- shane@dyeco.com.au -- and Nicholas Giasoumi
-- nicholas@dyeco.com.au -- of Dye & Co. were appointed as
administrator of Road Maintenance Pty. Ltd. on
Oct. 20, 2014.
A first meeting of the creditors of the Company will be held at
the offices of Dye & Co. Pty Ltd, 165 Camberwell Road, in Hawthorn
East, on Oct. 29, 2014, at 10:00 a.m.
TELSMART PTY: In Administration; 1st Meeting Set For Oct. 30
------------------------------------------------------------
Altan Djenab of Wild Apricot Corporate Insolvency was appointed as
administrator of Telsmart Pty Ltd on Oct. 20, 2014.
A first meeting of the creditors of the Company will be held at
the offices of Wild Apricot Corporate Insolvency & Advisory
Services, Level 1, 5 Everage Street, in Moonee Ponds, Victoria, on
Oct. 30, 2014, at 10:30 a.m.
VAN EYK RESEARCH: Placed Into Liquidation
-----------------------------------------
Andrew Main at The Australian reports that van Eyk Research has
been put into liquidation on the recommendation of an
administrator.
The Australian relates that administrator Trent Hancock, from
Sydney accountants Moore Stephens, said corporate regulator ASIC
had been investigating the group's financial failure, as had the
Financial Markets Authority in New Zealand, where it also has
operations.
Van Eyk went into administration in September after Macquarie
Investement Management, which was acting as responsible entity for
the Blueprint series of funds, terminated all but one of the 14-
fund series after a run on redemptions by investors that started
in August, the report discloses.
The report relates that Macquarie had declared three of the funds
to be "illiquid".
According to the report, the problem occurred after a
AUD31 million investment in the UK by the Blueprint International
Shares Fund, which had been in cash in September of last year, was
invested partly in a string of local newspapers in the UK and
partly in an investment in New Zealand.
"Once the company is in liquidation there are a number of
regulatory requirements in terms of further investigations that
must be undertaken by the liquidator," the report quotes
Mr. Hancock as saying.
He noted that there are parts of the business, both in Australia
and New Zealand, over which he and buyers are negotiating, the
report relays.
The Australian adds that Mr. Hancock said the sale of the
New Zealand business, once complete, would result in "a
significant return to van Eyk in Australia", although he declined
to identify any numbers.
Van Eyk was an unlisted company with about 30 shareholders whose
Blueprint series at one point in 2012 had around AUD1.2 billion
under management. By August this year that had dropped to below
AUD800 million, the report notess.
=========
C H I N A
=========
WINSWAY ENTERPRISES: Fitch Affirms 'CCC' Issuer Default Rating
--------------------------------------------------------------
Fitch Ratings has affirmed China-based Winsway Enterprises
Holdings Limited's (Winsway) Issuer Default Rating (IDR) at 'CCC'.
No outlook has been assigned. This rating reflects on-going
concerns about the company's liquidity and ability to refinance
debt.
Winsway's senior unsecured rating and the rating on its 2016 US-
dollar denominated notes have been downgraded to 'C' from 'CCC-',
as the Recovery Rating was lowered to 'RR6' from 'RR5'.
The company, which provides logistics services for bulk
commodities, changed its name from Winsway Coking Coal Holdings
Limited in July 2014.
KEY RATING DRIVERS
Cash Generation Further Deteriorates: Fitch does not expect
Winsway's core business to generate positive free cash flow for
the foreseeable future (1H14: a reported gross outflow of
HKD337m). Fitch believes the prospects for improvement are low,
barring a sharp and sustained increase in coking coal prices.
This weakens the prospect that cash resources would increase
sufficiently to repay the US-dollar notes in 2016.
Refinancing Uncertain: Winsway's senior unsecured notes of USD309m
(HKD2.38bn) are due in April 2016. Based on the current outlook
for the company's financial performance, Fitch believes that
Winsway will have to refinance a significant portion of the bond.
However, the likelihood that Winsway will be able to refinance the
bond has worsened following the covenants waiver and debt exchange
in 2013.
Limited Capex Going Forward: Fitch believes that Winsway's recent
agreement to sell 42.72% of Grande Cache Coal (GCC) (from its
existing 60% interest in the subsidiary) is a strong sign that
Winsay will no longer inject any cash into GCC. Any capex going
forward will be restricted to sustaining operations only. In
addition, the company is taking steps to dispose underutilized
assets to increase cash flow.
Future Liquidity Concerns Remain: Fitch expects Winsway's
liquidity to remain tight in 2015 because its US-dollar notes are
due in early 2016 and the company's ability to generate free cash
flow remains weak. Although GCC's USD410m of outstanding debt is
ring-fenced from Winsway, Winsway's ability to maintain a
significant credit facility might be affected if GCC goes into
default because certain banks provide financing for both
companies.
New Strategy Untested: Winsway is reducing its reliance on coal
products, and focusing on providing logistics services for a wider
range of bulk commodities and providing commodity financing-like
services to banks. The new business model will use the company's
existing trading platform and logistics resources, and if
successfully executed, is expected to improve the company's
margins. However, the new business model remains untested and
presents execution risks.
RATING SENSITIVITIES
Negative: Future developments that may, individually or
collectively, lead to negative rating actions include:
-- deterioration in refinancing prospects and liquidity
profile;
-- inadequate plans to refinance the bonds by mid-2015; and
-- failure to complete the proposed sale of its GCC stake
Positive: Future developments that may, individually or
collectively, lead to positive rating actions include:
-- increased profits from the new business strategy that
result in higher cash flow
=========
I N D I A
=========
A.N.E. INDUSTRIES: CRISIL Cuts Rating on INR200MM Cash Loan to C
----------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of A.N.E. Industries Pvt Ltd to 'CRISIL C' from 'CRISIL B/Stable';
the rating on the short-term bank facilities has been reaffirmed
at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 400 CRISIL A4 (Reaffirmed)
Cash Credit 200 CRISIL C (Downgraded from
'CRISIL B/Stable')
Proposed Short Term
Bank Loan Facility 5 CRISIL A4 (Reaffirmed)
The rating downgrade reflects instances of delays in servicing of
its obligations on various equipment loans. The delay has been
caused by ANE's stretched liquidity driven low order execution
leading to lower cash accruals and delay in debtor realization.
The rating continues to reflect the high customer and geographic
concentration in ANE's revenue profile and working capital
intensive nature of operations. These rating weaknesses are
partially offset by the extensive experience of the company's
promoters in the mineral excavation and removal of overburden
business.
ANE was set up in 2003 by Mr. Soham Singh. The company executes
open cast mining contracts involving removal of over burden and
mineral excavation.
ANE reported a profit after tax (PAT) of INR84.9 million on net
sales of INR1.2 billion for 2012-13, as against a PAT of INR76.9
million on net sales of INR875.4 million for 2011-12.
AARCOT CERAMIC: CRISIL Assigns B+ Rating to INR46MM Term Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Aarcot Ceramic Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term 44 CRISIL B+/Stable
Bank Loan Facility
Cash Term Loan 46 CRISIL B+/Stable
Bank Guarantee 10 CRISIL A4
Cash Credit 25 CRISIL B+/Stable
The ratings reflect ACPL's expected modest scale of operations in
the competitive ceramics industry. The ratings also factor in the
company's large working capital requirements and impending
commencement of operations. These rating weaknesses are partially
offset by the extensive industry experience of ACPL's promoters
and strategic location of its upcoming factory.
Outlook: Stable
CRISIL believes that ACPL will benefit over the medium term from
its promoters' extensive industry experience. The outlook may be
revised to 'Positive' if the company improves its financial risk
profile and promptly stabilises its operations leading to
substantial cash accruals. Conversely, the outlook may be revised
to 'Negative' if its financial risk profile weakens because of
significantly low cash accruals after commencing operations, or
substantial working capital requirements or debt-funded capital
expenditure.
Incorporated in Morbi (Gujarat) in 2013, ACPL is promoted by Mr.
Jitendra Lavjibhai Dekavadiya and Mr. Lakhmanbhai Madhavbhai
Zalariya. The company is setting up a factory to manufacture
digital wall tiles. It is likely to start commercial operations in
November 2014.
ANJANI COTTON: ICRA Reaffirms B+ Rating on INR18cr Cash Credit
--------------------------------------------------------------
ICRA has reaffirmed an [ICRA]B+ rating to INR18.00 crore (enhanced
from INR14.00 crore) fund based cash credit facility of Anjani
Cotton Industries.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit Limit 18.00 [ICRA]B+; Reaffirmed
The rating continues to be constrained by the firm's weak
financial profile characterized by low profitability indicators,
stretched capital structure and weak debt protection indicators.
The rating also considers the and vulnerability of profitability
to raw material prices, which are subject to seasonality and crop
harvest and regulatory risks with regard to minimum support price
(MSP) of raw cotton and export of cotton bales. ICRA further notes
that the firm is exposed to risk of capital withdrawal inherent in
the partnership nature of the business.
The rating however continues to favorably consider the long
experience of the partners in cotton industry, favorable location
of the plant giving it easy access to high quality raw cotton and
strong demand for cotton seed oil in Gujarat.
Anjani Cotton Industries is engaged in cotton ginning and pressing
operations. The current partnership was formed in 2008 after the
business was acquired from the retiring partners, who established
the firm in 2000. The business is managed by Mr. Rajesh Ghodasara
and Mr. Vipul Ghodasara. The firm's manufacturing facility is
located at Wakaner, District- Rajkot. The firm has 48 ginning
machines and 1 pressing machine with a processing capacity of 240
tonnes of raw cotton per day.
Recent Results
For the year ended 31st March, 2014, the firm reported an
operating income of INR228.63 crore with profit after tax (PAT) of
INR1.05 crore.
BHAMBRA OVERSEAS: ICRA Suspends B+ Rating on INR5cr FB Loan
-----------------------------------------------------------
ICRA has suspended [ICRA]B+ rating assigned to the INR5.00crore
long term fund based limits and INR2.00 crore of term loan
facilities of M/s Bhambra Overseas. The suspension follows ICRA's
inability to carry out a rating surveillance in the absence of the
requisite information from the company.
DEVGAN RICE: CRISIL Lowers Rating on INR110MM Cash Credit to 'D'
----------------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of
Devgan Rice & General Mills to 'CRISIL D' from 'CRISIL B/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 110 CRISIL D (Downgraded from
'CRISIL B/Stable')
The rating downgrade reflects continuous over-utilisation of bank
lines for more than 30 days by DRGM; the over-utilisation has been
on account of large working capital requirements, which have, in
turn, been driven by sizeable inventory. CRISIL believes that
DRGM's sanctioned bank facility is insufficient to meet its
current working capital requirements.
The ratings also factor in DRGM's modest scale of operations and
below-average financial risk profile, marked by small net worth
and high gearing. The ratings also reflect the extensive
experience of the firm's partners in the rice-milling industry.
DRGM, set up as a partnership firm in 1972 by Mr. Naresh Kumar and
his family, processes rice at its manufacturing facility in
Amritsar (Punjab).
For 2013-14 (refers to financial year, April 1 to March 31), DRGM
reported provisional net profit of INR2.9 million on net sales of
INR397.0 million (INR1.3 million and INR226.4 million,
respectively, in 2012-13).
DOLLY EXIM: ICRA Reaffirms B Rating on INR12cr LT Fund Based Loan
-----------------------------------------------------------------
ICRA has reaffirmed an [ICRA]B rating to the INR2.84 crore, Term
Loans; INR12.00 crore long-term, fund-based facilities and INR0.16
crore unallocated long term facilities of Dolly Exim Private
Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Fund Based 12.00 [ICRA]B reaffirmed
Term Loans 2.84 [ICRA]B reaffirmed
Unallocated Long 0.16 [ICRA]B reaffirmed
Term Fund Based
The rating reaffirmation factors in the vast experience of the
promoters in the textile trading business, the reputed and
diversified client base the increase in assets and networth of the
Company on account of conversion of leased property into ownership
due to redevelopment under Sec 56 of Maharashtra Rent Control Act.
The rating, however, is constrained by the weak financial risk
profile of the company characterised by modest accruals, leveraged
capital structure and stretched debt coverage indicators. The
liquidity profile remains stretched on account of large interest
free loans and advances extended to group companies. The rating
also factors in the high geographical concentration risk as the
operations are restricted to only one city which could likely
impact the future revenue growth potential of the company.
Dolly Exim Private Limited is involved in the business of trading
of grey yarn and fabric for suiting and shirting. The Company was
started by Mr. Vinod Deora in the year 1994 and was earlier called
'Dolly Jewels Private Limited'. DEPL primarily operates in Mumbai
area. The company has long and established relationship with most
of its customers and suppliers. Apart from fabrics, a small
proportion of the company's sales are from trading of gold
jewellery and diamonds.
Recent Results
As per the audited results for FY 2014, DEPL reported a Profit
after tax (PAT) of INR0.12 crore on an operating income of
INR48.84 crore as compared to a PAT of INR0.16 crore on an
operating income of INR46.28 crore in FY 2013.
GALAXY GLASS: CRISIL Assigns B+ Rating to INR34.5MM Cash Credit
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Galaxy Glass Products Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 3.3 CRISIL B+/Stable
Proposed Cash
Credit Limit 5.0 CRISIL B+/Stable
Cash Credit 34.5 CRISIL B+/Stable
Bank Guarantee 22.2 CRISIL A4
Bill Discounting 5 CRISIL A4
The ratings reflect the company's below-average financial risk
profile and its modest scale of and working-capital-intensive
operations. These rating weaknesses are partially offset by the
extensive experience of GGPPL's promoters in the glass processing
industry.
Outlook: Stable
CRISIL believes that GGPPL will continue to benefit from the
extensive experience of its promoters over the medium term. The
outlook may be revised to 'Positive' if the company significantly
scales up its operations, while maintaining its operating
profitability, or improves its working capital management,
improving its financial risk profile. Conversely, the outlook may
be revised to 'Negative' if GGPPL's cash accruals decline, or if
large working capital requirement weakens its financial risk
profile.
Established in 2005 and based in Chennai (Tamil Nadu), GGPPL
manufactures toughened and double-glazed unit glass. The company
is promoted by Mr. Omanakuttan.
GGPPL reported a profit after tax (PAT) of INR4 million on total
revenue of INR132 million for 2013-14 (refers to financial year,
April 1 to March 31), as against a loss of INR17 million on total
revenue of INR133 million for 2012-13.
GREYS EXIM: CRISIL Reaffirms 'B' Rating on INR143MM Cash Credit
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Greys Exim Pvt Ltd
continue to reflect its below-average financial risk profile,
marked by low net worth, aggressive gearing, weak debt protection
metrics, and working capital intensity in operations. These rating
weaknesses are mitigated by the extensive experience of GEPL's
promoter in the textile industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 143 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that GEPL's financial risk profile will remain
constrained over the medium term, on account of large working
capital requirements. The outlook may be revised to 'Positive' if
efficient working capital management or a sizeable equity infusion
leads to a stronger liquidity and capital structure, respectively,
for GEPL. Conversely, the outlook may be revised to 'Negative' if
decline in topline and profitability, or any large debt-funded
capex leads to further weakening in its financial risk profile.
Update
GEPL maintained healthy revenue growth, with topline increasing at
35 per cent year-on-year, to around INR950 million in 2013-14
(refers to financial year April to March) from INR697.4 million in
the previous year. The accruals improved marginally to INR12
million from INR11 million during this period. However, the
working capital cycle is stretched, with gross current assets of
235 days as on March 31, 2014 from 168 days a year ago. Increasing
working capital borrowings have meant that the company's liquidity
is stretched, with full utilisation of bank lines for the 12
months through May 2014 due to which the overall financial risk
profile has been weak with gearing of around 4.5 times and
interest coverage ratio and net cash accruals to total debt at
about 1.5 times and 0.05 times for the year ended
March 31, 2014. Additionally, small net worth of around INR60
million on March 31, 2014 also restricts financial flexibility.
CRISIL believes that GEPL will maintain a healthy turnover growth
going forward, though incremental working capital requirements
will continue to constrain the overall financial risk profile.
For 2013-14, on a provisional basis, GEPL reported a profit before
tax of INR12.2 million on net sales of INR 953.6 million, against
a profit before tax of INR 9.1 million on net sales of INR 697.4
million for 2012-13.
Incorporated in 1986, GEPL is promoted by Mr. Mehul Sedani. The
company manufactures woven garments such as tops, shorts, inner
wear, shorts, and shirts for men.
GUJARAT HIFLOW: ICRA Revises Rating on INR4.5cr Cash Credit to B
----------------------------------------------------------------
ICRA has revised the long term rating outstanding on the INR2.05
crore (reduced from INR2.76 crore) term loan and INR4.50 crore
(enhanced from INR4.00 crore) fund based facility (cash credit) of
Gujarat Hiflow Yarn Limited from [ICRA]B+ to [ICRA]B. ICRA has
also reaffirmed the short term rating outstanding on the INR0.35
crore non-fund based facilities at [ICRA]A4. ICRA has also
assigned the long term rating of [ICRA]B and short term rating of
[ICRA]A4 to the proposed limits of INR4.82 crore which would
attract rating as per the tenure of usage.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits 4.50 [ICRA]B; Revised from
Cash Credit [ICRA]B+
Fund Based Limits
Term Loans 2.05 [ICRA]B; Revised from
[ICRA]B+
Non-Fund Based 0.35 [ICRA]A4 reaffirmed
Limits- Bank
Guarantee (BG)
Proposed Limits 4.82 [ICRA]B/[ICRA]A4 assigned
The ratings revision takes into account the deterioration in
Gujarat HiFlow Yarn Limited's financial profile characterized by a
steep decline in operating income, operating losses and stressed
liquidity position emanating from accumulating inventory,
stretched capital structure resulting from high borrowing and weak
cash accruals and tight liquidity position as reflected in the
full utilization of working capital limits. The ratings also
continue to factor in the exposure of the company's profitability
to volatility in prices of key raw materials, which are linked to
crude price movements and strong competition in a fragmented
industry structure, which limits the pricing flexibility of
players.
The ratings, however, positively factor in the experience of the
promoters in the textile industry and location advantage with the
presence of GHYL's manufacturing facility in proximity to
customers and raw material suppliers in Surat. ICRA has also
factored in the near term opportunity for growth in revenue and
profitability arising from backward integration into metalizing
and diversification into hologram manufacturing.
Incorporated in the year 1993, Guajrat Hiflow Yarn Limited (GHYL)
is engaged in the business of manufacturing sequins foil, hot
stamping foil and metalized films. The company is based out of
Gujarat with its manufacturing facility located in Karanj Village
of Surat District, having an installed capacity of 2880 TPA
(Tonnes Per Annum).
Recent Results:
During the twelve month period ending March 31, 2014, the company
reported a net profit of INR0.18 crore on an operating income of
INR9.33 crore.
HIMSON TEXTILE: ICRA Revises Rating on INR7cr Cash Credit to 'B'
----------------------------------------------------------------
ICRA has revised downwards the long term rating assigned to
INR7.00 crore cash credit facility and INR0.69 crore (reduced from
INR1.03 crore) term loan facility of Himson Textile Engineering
Industries Private Limited from [ICRA]BB- to [ICRA]B. ICRA has
also reaffirmed the short term rating of [ICRA]A4 to the INR1.00
crore bank guarantee facility of Himson Textile Engineering
Industries Private Limited (HTEIPL).
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based-Term 0.69 Revised to [ICRA]B from
Loan [ICRA]BB- (stable)
Fund Based-Cash 7.00 Revised to [ICRA]B from
Credit [ICRA]BB- (stable)
Non Fund Based- 1.00 [ICRA]A4; Reaffirmed
Bank Guarantee
The rating revision reflects the deterioration in financial
profile as reflected in significant dip in FY14 operating income,
high dependence on cyclical textile industry as well as huge
losses suffered backed by weak demand due to poor market
conditions given the slowdown in textile industry. The ratings
also consider the vulnerability of margins to fluctuations in
prices of inputs like steel and aluminium (which constitutes major
raw material), company's ability to sustain delivery timelines
which is critical in order to maintain regular cash flows as well
as significantly high working capital intensive nature of
operations given huge delays in debtor realizations as well as
high inventory levels.
The ratings, however, continues to favorably consider the long
track record of the promoters and established presence of the
company in the machinery manufacturing business, favourable
location in the textile manufacturing and processing hub as well
as favourable capital structure with low gearing levels; despite
deterioration in net worth of the company.
Himson Textile Engineering Industries Pvt Ltd. was established as
a partnership company in 1974, later reconstituted as a private
limited company in 1980. It is engaged in manufacturing of draw
texturising and winding machineries used for synthetic yarn
processing to make Draw Textured Yarn. The business is managed
primarily by Mr. Pannalal Bachkaniwala and Mr.Devendra
Bachkaniwala.
Recent Results
During FY14, the firm reported an operating income of INR14.08
crore with net losses of INR3.94 crore (as per unaudited
provisional numbers).
HINDUSTHAN CALCINED: ICRA Reaffirms B- Rating on INR8cr Cash Loan
-----------------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B- to INR8.00
crore1 cash credit limits of Hindusthan Calcined Metals Private
Limited. ICRA has also reaffirmed the short-term rating of
[ICRA]A4 assigned to INR4.00 crore letter of credit facilities of
HCMPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 8.00 [ICRA]B- reaffirmed
Letter of Credit 4.00 [ICRA]A4 reaffirmed
The ratings reaffirmation takes into consideration the improvement
in the operating income, profitability and strengthening of debt
protection metrics of HCMPL. Further, the ratings continue to
favourably factor in the long track record of the HCMPL in the
industry, its experienced management and its established
clientele. The ratings however remain constrained by the continued
under utilization of the capacity of sponge iron plant owing to
uncertainty associated with raw material availability and prices
due to the iron ore mining restriction in Karnataka. This has
continued to adversely impact the revenue growth and profitability
of the company. Further, the ratings factor in the working capital
intensive nature of operations driven by sizeable inventory
holding and exposure of company's profitability to the commodity
price risk. These apart, the ratings continue to take into
consideration the limited value addition in the existing stand
alone sponge iron business and highly competitive nature of the
industry.
Hindusthan Calcined Metals Private Limited was incorporated in the
year 2003 and is engaged in the manufacturing of sponge iron. The
company is promoted by Mr S.K Modi and his family members. The
manufacturing unit is located in Bellary district of Karnataka
with the capacity of 200 MT per day. The other group companies of
HCMPL are involved in the mining business.
Recent results
As per the provisional results for FY2014, the company reported
PAT of INR2.58 crore (provisional) on turnover of INR43.40 crore
(provisional) as against loss of INR1.38 crore on turnover of
INR37.04 crore during FY2013.
KADVANI FORGE: ICRA Revises Rating on INR25cr Cash Credit to 'B'
----------------------------------------------------------------
ICRA has revised the long term rating assigned to the INR25.00
crore cash credit facility, the INR2.32 crore (reduced from
INR2.50 crore) term loans and the INR1.30 crore (reduced from
INR3.00 crore) working capital demand loan of Kadvani Forge
Limited [ICRA]B+ to [ICRA]B. Further, ICRA has reaffirmed the
short term rating assigned to the INR1.00 crore bill discounting
facility, the INR2.50 crore forex forward limit, the INR2.00 crore
Letter of credit facility and the INR1.50 crore bank guarantee
facility of KFL at [ICRA]A4.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit facility 25.00 Revised to [ICRA]B
from [ICRA]B+
Term Loan 2.32 Revised to [ICRA]B
from [ICRA]B+
Working Capital 1.30 Revised to [ICRA]B from
Demand Loan [ICRA]B+
Letter of Credit
facility 2.00 [ICRA]A4 reaffirmed
Sale Bill Discounting- 1.00 [ICRA]A4 reaffirmed
LCBD
Forex Forward Limit 2.50 [ICRA]A4 reaffirmed
Bank Guarantee facility 1.50 [ICRA]A4 reaffirmed
The revision in rating takes into account the significant de-
growth in scale of operations in FY 2014 owing to weak demand
scenario and pressure on the company's profitability in FY 2014 as
reflected by net losses booked in last fiscal. The ratings
continue to remain constrained by the weak financial profile as
reflected by adverse capital structure and weak debt coverage
metrics as well as high working capital intensity leading to
stretched liquidity position of the company. The ratings also take
into account the low capacity utilization levels, high customer
concentration risk, vulnerability of sales volumes to performance
of automobile sector and intense competition from large number of
domestic forging units leading to pressure on operating margins.
The ratings, however, take into account the promoters' experience
in the forging industry; long standing relationships with a stable
customer base and order linked production leading to low risk of
raw material price fluctuations.
Kadvani Forge Limited, incorporated in 1995, is involved in
manufacturing of closed die steel forged products in carbon, alloy
and stainless steel with its plant located at GIDC Lodhika in
Rajkot, Gujarat. KFL was initially promoted by Kadvani family and
was taken over by Mr. Vitthal Dhaduk in February 2009. Currently
the plant has an installed capacity of 30,000 MTPA.
Recent Results
For FY 2014, the company reported an operating income of INR69.40
crore and net loss of INR1.19 crore as against operating income of
INR98.88 crore and profit after tax of INR1.35 crore for FY 2013.
KAMAL SUITINGS: CARE Ups Rating on INR6.54cr Bank Loan to 'B+'
--------------------------------------------------------------
CARE revises the rating assigned to the long-term bank facilities
of Kamal Suitings Private Limited and reaffirms the rating
assigned to its short-term bank facilities.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 6.54 CARE B+ Revised from
CARE B
Short term Bank Facilities 1.00 CARE A4 Reaffirmed
Rating Rationale
The revision in the long-term rating takes into account equity
infusion by the promoters which has led to an improvement in the
overall gearing of Kamal Suitings Private Limited (KSPL).
The ratings continue to derive strength from the rich experience
of the promoters in the textile industry and location
advantage with ease of availability of raw material and labour.
The ratings, however, continue to remain constrained on account of
KSPL's relatively small scale of operations in the highly
competitive and fragmented textile industry and weak liquidity
position. The ratings, further, remained constrained due to its
limited presence in the textile value chain and susceptibility of
its profitability to fluctuation in the raw material prices.
KSPL's ability to increase its scale of operations with efficient
management of working capital and improvement in the capital
structure are the key rating sensitivities.
Bhilwara-based (Rajasthan) KSPL was promoted by Mr Naval Kumar
Gupta and Mr Kamal Kishore Gupta in June 1993. During FY08, the
company was taken over by Tawani family by acquiring the
controlling stake in the company. Currently, KSPL is managed by Mr
Satyanarayan Tawani and Mr Kapil Maheshwari who collectively look
after the overall operations and take all the strategic decisions.
KSPL is engaged in the manufacturing of synthetic and cotton
fabric at its manufacturing facility located at Bhilwara
(Rajasthan), largest textile cluster in India, with an installed
capacity of 18 Lakh Meters Per Annum (LMPA) (36 Sulzer Looms) for
synthetic and cotton fabrics as on March 31, 2014 and capacity
utilization stood at around 70% during FY14 (refers to the period
April 1 to March 31). KSPL sells its products through the
network of its agents primarily spread in the northern region of
India under the brand name 'KSPL'.
During FY14, KSPL has reported a total operating income of
INR34.13 crore and PAT of INR0.05 crore as against TOI and
PAT of INR33.80 crore INR0.04 crore respectively during FY13.
During H1FY15, KSPL has generated TOI of INR18.05 crore.
KB ISPAT: ICRA Assigns 'B+' Rating to INR7cr Term Loan
------------------------------------------------------
A rating of [ICRA]B+ has been assigned to the INR12.00 crore long-
term, fund based facilities of KB Ispat Pvt. Ltd. A rating of
[ICRA]A4 has also been assigned to the INR0.42 crore bank
guarantee facility of KBPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 5.00 [ICRA]B+ assigned
Term Loan 7.00 [ICRA]B+ assigned
Non fund based-
Bank Guarantee 0.42 [ICRA]A4 assigned
The assigned ratings are constrained by company's relatively
modest scale of operations, weak financial risk profile
characterized by the low profitability, aggressive capital
structure and weak coverage indicators and the high competitive
intensity given the fragmented nature of industry consisting of
many organized/unorganized players that limits pricing
flexibility. Further, the rating takes into account vulnerability
of operations to the volatility in raw material prices (steel
scrap).
The ratings, however, positively factor in the long standing
experience of the promoters in steel trading industry and
established relationships of the promoters with suppliers and
customers through associate concerns. ICRA also notes the
company's favourable plant location near Alang ship breaking yard
ensuring timely and easy access to required raw materials (steel
scrap) for the company.
KBPL was incorporated in November 2010 as a private limited
company and is engaged in the manufacturing of mild steel billets
which finds application as inputs by rolling mills for
manufacturing of mild steel bars, angles, beams etc. The company
is promoted by the members of Vora family who have an experience
of two decades in the steel rolling business through their
associate concerns. The manufacturing unit is located in Bhavnagar
(Gujarat) with installed capacity of manufacturing 160 MT of mild
steel billets per day.
Recent Results
For the nine months ended March 31, 2014 (provisional financials),
KB Ispat Private Limited reported an operating income of INR43.90
crore and profit after tax of INR0.02 crore.
LIBRA FABRIC: CRISIL Ups Rating on INR85MM Cash Credit to B+
------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Libra Fabric Designs Pvt Ltd to 'CRISIL B+/Stable' from 'CRISIL
B/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 85 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
The rating upgrade reflects the sharp and sustained improvement in
Libra's business risk profile marked by healthy increase in
turnover and cash accruals. The company's turnover increased by
almost 40 per cent to about INR800 million in 2013-14 (refers to
financial year, April 1 to March 31) from about INR580 million in
the previous year; it is expected to increase to about INR1
billion over the medium term backed by steady demand. The
company's cash accruals are also expected to increase to more than
INR11 million in 2014-15 from under INR60 million in 2013-14. The
upgrade assumes that Libra will maintain steady revenue growth
over the medium term without weakening its working capital cycle.
The rating reflects Libra's below-average financial risk profile,
marked by a small net worth and weak interest coverage ratio, and
its large working capital requirements. These rating weaknesses
are partially offset by the extensive experience of the company's
promoter in the textile industry.
Outlook: Stable
CRISIL believes that Libra will continue to benefit over the
medium term from its promoter's extensive industry experience. The
outlook may be revised to 'Positive' if the company registers
significant improvement in its liquidity and capital structure
backed by infusion of long-term funds by its promoter, while
sustaining its topline and profitability. Conversely, the outlook
may be revised to 'Negative' in case of lengthening of Libra's
working capital cycle resulting in pressure on its liquidity, or
if any debt-funded capital expenditure adversely impacts its
financial risk profile.
Libra, promoted by Mr. Mehul Sedani, was originally established as
a proprietorship concern, Libra Apparels, in 1986; the firm was
reconstituted as a private limited company with the current name
in 2012. The company trades in cotton fabric.
For 2013-14, on a provisional basis, Libra reported a profit
before tax of INR12.3 million on net sales of INR798.1 million,
against a profit before tax of INR8.3 million on net sales of
INR582.5 million for 2012-13.
MEGHDOOT GINNING: ICRA Reaffirms B+ Rating on INR30cr Cash Credit
-----------------------------------------------------------------
ICRA has reaffirmed the [ICRA]B+ rating to the INR30.00 crore cash
credit facility of Meghdoot Ginning and Pressing Industries
Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Fund based 30.00 [ICRA]B+ reaffirmed
Cash Credit
The rating continues to be constrained by the company's weak
financial profile as reflected by adverse capital structure and
weak debt coverage indicators. The rating also takes into account
the low value additive nature of operations and intense
competition on account of fragmented industry structure leading to
thin profit margins. The rating is further constrained by
vulnerability of profitability to adverse fluctuations in raw
material prices which are subject to seasonal availability of raw
cotton and government regulations on MSP for procurement of raw
cotton and export quota for cotton bales.
The rating, however, positively factors in the long experience of
the promoters in the cotton ginning and pressing business,
favorable location of the company giving it easy access to raw
cotton and positive demand outlook for edible oil in India.
Incorporated in 1999, Meghdoot Ginning & Pressing Industries Pvt
Ltd is engaged in ginning and pressing of raw cotton. The business
is owned and managed by Mr. Anand Shah, Mr. Ajay Shah, Mr. Bharat
Shah and other family members. The company's manufacturing
facility is located at Karjan, in Vadodara, The company has 52
ginning machines and 1 pressing machine with processing capacity
of 200 MTPD of raw cotton.
Recent Results
For the year ended March 31, 2014, the company reported an
operating income of INR244.58 crore and profit after tax of
INR0.48 crore.
OMARK INTERNATIONAL: CARE Assigns B+ Rating to INR7cr Bank Loan
---------------------------------------------------------------
CARE assigns 'CARE B+' rating to the long-term bank facilities of
Omark International.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 7.00 CARE B+ Assigned
Proposed Long-term Bank 3.00 CARE B+ Assigned
Facilities
Rating Rationale
The rating assigned to the bank facilities of Omark International
are constrained by relatively small scale & cyclical nature of
operations coupled with low capitalization, low profitability
margins and working capital intensive nature of operations leading
to leveraged capital structure and stressed debt coverage
indicators. The rating is further constrained by customer
concentration and foreign exchange fluctuation risk, presence in
highly fragmented and competitive industry and proprietorship
nature of entity.
These factors far offset the benefits derived from reasonably
experienced proprietor and established relationship with
customers.
Ability of OI to grow its scale of operations and profitability
amidst increasing competition and effectively manage its
working capital cycle are the key rating sensitivities.
Established in 2008 as proprietorship concern by Mrs. Smitha
Prasad, Omark International (OI) is engaged in the trading
(mainly exports) of agricultural products namely maize and
groundnut oil. During FY14, OI has also started exporting rice.
OI sources maize & rice from the local mandis of central
Maharashtra and groundnut shells from Gujarat (processing is
outsourced). Moreover OI is 100% export oriented unit with exports
mainly to Singapore, Malaysia, China, Vietnam and others.
As per the provisional results for FY14, OI posted total income of
INR50.19 crore (vis-a-vis INR59.35 crore in FY13) and PAT
of INR0.38 crore(vis-a-vis INR0.71 crore in FY13).
PATSPIN INDIA: CARE Revises Rating on INR220.43cr Bank Loan to B+
-----------------------------------------------------------------
CARE revises the ratings assigned to the bank facilities of
Patspin India Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 220.43 CARE B+ Revised from
CARE B
Short term Bank Facilities 199.25 CARE A4 Reaffirmed
Long/Short term Bank 7.00 CARE B+/CARE A4
Facilities Revised from
CARE B/CARE A4
Rating Rationale
The revision in the long-term rating assigned to the bank
facilities of Patspin India Limited takes note of improvement in
the operational and financial performance of the company during
FY14 (refers to the period April 1 to March 31). The ratings
continue to be constrained by PIL's volatile operating profit
margins, highly leveraged capital structure and exposure to
volatility in raw material prices. The ratings continue to factor
in the vast experience of the promoters in the textile industry,
presence of well-experienced management team and improvement in
the industry scenario. Going forward, the ability of the company
to increase sales, improve profitability and capital structure are
the key rating sensitivities.
The primary business activity of PIL is production and sale of
cotton yarn. In addition to this, it is also engaged in value-
adding activities like TFO (Two-For-One) twisting and gassing of
the textile yarn. PIL has two spinning units located at Palakkad,
Kerala and Ponneri, Tamil Nadu with a total capacity of 111,742
spindles and knitting machines with an aggregate production
capacity of 1,008 tonnes per annum (TPA) as on March 31, 2014. PIL
also has four windmills with an aggregate capacity of 5.8 megawatt
(MW). The Palakkad unit produces medium and fine counts yarn
ranging from 24s to 100s. The company's second spinning unit at
Ponneri, Tamil Nadu which was established in 2007 produces counts
ranging from 20s to 80s.
For the year ended FY14, the company registered profit after tax
of INR4.3 crore on a total operating income of INR589.7
crore as against an after tax loss of INR15.8 crore on the total
income of INR478.2 crore in FY13.
PURULIA CHEMICALS: CRISIL Cuts INR30M Bank Guarantee Rating to D
----------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Purulia Chemicals Pvt Ltd to 'CRISIL D/CRISIL D' from 'CRISIL
B+/Stable/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 30 CRISIL D (Downgraded from
'CRISIL A4')
Cash Credit 18 CRISIL D (Downgraded from
'CRISIL B+/Stable')
The rating downgrade reflects PCPL's non-payment of its ad-hoc
cash credit limits for more than 30 consecutive days; the limits
have been overdrawn because of the company's weak liquidity.
PCPL remains vulnerable to cyclical downturns because of its small
scale of operations in the fragmented shellac industry. However,
the company benefits from its promoters' extensive experience in
the shellac industry.
PCPL was originally set up as a partnership firm by Mr. Rajesh
Kumar Lath and his brother Mr. Satish Kumar Lath in 2003; the firm
was reconstituted as a private limited company in November 2010.
PCPL commenced commercial production in 2005 and produces seedlac,
shellac/aleuritic acid, and button lac, which are used in
processes such as leather polish, varnish, perfume, and food
coating. Nearly 55 per cent of PCPL's revenue comes from shellac,
about 30 per cent from seedlac, and the remainder from button lac.
R.B.CREATION: CRISIL Cuts Rating on INR37.5MM Loan to 'D'
---------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
R.B.Creation to 'CRISIL D/CRISIL D' from 'CRISIL C/CRISIL A4'. The
rating downgrade reflects the delay by R.B.Creation in servicing
its term loan; the delay was caused by the firm's weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 0.5 CRISIL D (Downgraded from
'CRISIL A4')
Corporate Loan 20.5 CRISIL D(Downgraded from
'CRISIL C')
Export Packing 7.5 CRISIL D (Downgraded from
Credit 'CRISIL A4')
Foreign Bill 37.5 CRISIL D (Downgraded from
Discounting 'CRISIL A4')
Standby Line of 3.3 CRISIL D (Downgraded from
Credit 'CRISIL A4')
Working Capital 20.0 CRISIL D (Downgraded from
Term Loan 'CRISIL C')
R.B.Creation also has a small scale of operations and a below-
average financial risk profile, marked by an aggressive capital
structure and weak debt protection measures. The firm is also
exposed to risks related to customer concentration in its revenue
profile and to intense competition in the ready-made garments
(RMG) segment. However, it benefits from its established
relationships with customers and its promoters' extensive industry
experience.
For arriving at its ratings, CRISIL has considered the business
and financial risk profiles of R.B.Creation on a standalone basis;
CRISIL had previously combined the business and financial risk
profiles of R.B.Creation and OHM Knit Fashion. The change in
analytical approach follows the communication from R.B.Creation's
management that there will be no financial linkages between the
two entities, and that the firms will be managed independently.
R.B.Creation, established in 2003 in Tirupur (Tamil Nadu),
manufactures RMG. The firm's promoters, Mr. K Ramalingam and Mr. M
Krishnasamy, have experience of more than 35 years in the textile.
RAVINA HEALTH: CRISIL Reaffirms B Rating on INR160MM Term Loan
--------------------------------------------------------------
CRISIL's rating on the long-term bank facility of Ravina Health
Care Pvt Ltd continues to reflect RHPL's exposure to risks
associated with the funding and implementation of its hospital
project in Chennai (Tamil Nadu). This rating weakness is partially
offset by the extensive experience of RHPL's promoters in the
healthcare industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Term Loan 160 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that RHPL will continue to benefit over the medium
term from its promoters' extensive experience in the healthcare
industry. The outlook may be revised to 'Positive' if the company
stabilises operations at its hospital earlier than expected,
resulting in higher-than-expected accruals. Conversely, the
outlook may be revised to 'Negative' if RHPL faces significant
cost or time overrun in its project, resulting in weakening of its
financial risk profile.
RHPL, incorporated in 2011, is promoted by five doctors: Dr. K
Senthil, Dr. A Sreenivasulu, Dr. M A Srinivasarao, Dr. M V
Sathyanarayana, and Dr. Surya Prakash Irakam. The company is
constructing a multi-speciality hospital in Chennai.
S D BANSAL: ICRA Suspends 'C' Rating on INR12cr Fund Based Loan
---------------------------------------------------------------
ICRA has suspended [ICRA]C rating assigned to the INR12.00 crore
long term fund based limits and INR13.50 crore of term loan
facilities of S D Bansal Iron & Steel Pvt. Ltd. The suspension
follows ICRA's inability to carry out a rating surveillance in the
absence of the requisite information from the company.
SAMARPAN SYNTHETICS: CARE Ups Rating on INR15.84cr Loan to B+
-------------------------------------------------------------
CARE revises rating assigned to bank facilities of Samarpan
Synthetics Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 15.84 CARE B+ Revised from
CARE B
Rating Rationale
The revision in the long-term rating takes into account the
stabilization of operations of the newly established unit of
Samarpan Synthetics Private Limited and subsequent improvement in
the overall financial risk profile in FY14 (refers to the period
April 1 to March 31) marked by healthy growth in Total Operating
Income (TOI) and improvement in solvency position of the company.
The rating, however, continues to remain constrained on account of
its modest scale of operations and stressed liquidity profile. The
ratings are further constrained on account of the ongoing debt-
funded project, its limited presence in the textile value chain,
vulnerability of margins to fluctuation in the raw material prices
and its presence in a highly fragmented and competitive textile
industry.
The rating, however, favorably takes into account the vast
experience of the promoters and location advantage by way of
its presence in textile cluster at Bhilwara.
The ability of the company to increase its scale of operations
while maintaining solvency position in light of the on-going
debt funded project and efficient management of liquidity position
would remain the key rating sensitivities.
SMSPL, incorporated in 2003, is promoted by the Kabra family of
Bhilwara (Rajasthan). SMSPL started the commercial operations of
manufacturing of cotton grey fabrics from its greenfield plant
from May 2012. It gets the processed work done on grey fabrics
from other processors on job work basis. The manufacturing
facility of SMSPL is located at Bhilwara, largest textile cluster
in India, having total 36 airjet looms with an installed capacity
of 48 Lakh Meters Per Annum (LMPA) for manufacturing of cotton
fabrics. It is also engaged in the weaving of cotton fabrics on
job work basis as well as trading of grey and finished fabrics. It
sells its product under the brand name of 'Samarpan'.
The group concern of SMSPL includes Satyam Suitings Private
Limited (SSPL, incorporated in 1987, rated CARE B+/CARE A4) which
is engaged in the manufacturing of synthetic fabrics at Bhilwara.
As per provisional results for FY14, SMSPL has reported a total
operating income of INR32.91 crore as against INR 21.80 crore
during FY13 and PAT of INR1.60 crore during FY14 as against net
loss of INR1.23 crore during FY13.
SKS POWER: CARE Lowers Rating on INR2,840cr Bank Loan to 'D'
------------------------------------------------------------
CARE revises ratings assigned to bank facilities of SKS Power
Generation (Chhattisgarh) Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 2840 CARE D Revised from
CARE BB+
Long-term/Short-term Bank 312 CARE D Revised from
Facilities CARE BB+
Non-Convertible Debenture 500 CARE D Revised from
CARE BB
Rating Rationale
The ratings reflect the ongoing delays in servicing of debt
obligations by the company on account of delays in infusion of
equity. This delays was on account of non fulfillment of equity
commitments by the strategic investor (Sithe Globalprivate
equity fund) as a result of which the company is facing difficulty
in raising required equity funds.
SKS Power Generation (Chhattisgarh) Limited promoted by the SKS
group is a 51% subsidiary of SKS Ispat and Power Limited (SIPL).
SPGL is setting up the thermal power plant with a capacity of
1,200 MW (4x300 MW) in the State of Chhattisgarh based on domestic
coal in two phases of 600 MW each. SPGL is currently executing
Phase I (600 MW) of project and Phase II (600 MW) of SPGL has been
currently put on hold.
The original total project cost (Phase I) was estimated at INR3787
crore which was proposed to be funded in Debt: Equity ratio of
75:25 but due ongoing delay in commissioning of the project, the
total project cost is expected to increase and uncertainty
pertains regarding the funding of cost overun. SPGL is facing
difficulty in raising required equity funds on account of non
fulfillment of equity commitments by the strategic investor (Sithe
Global-private equity fund). This has resulted into delay in
equity infusion and has affected servicing of debt obligations.
SPGL is in discussion with the lenders to revise current debt
equity funding pattern and are also in discussion with the
prospective investor to bridge the funding gap.
Physical Progress: As on July 31, 2014 the project has achieved
physical progress of 66.32% in the following activities and
expects to achieve COD for unit I (300 MW of Phase I) as on
June 30, 2015 (Original COD April 1, 2014) and Unit II (300MW of
Phase I) as on September 30, 2015 (Original COD July 1, 2014). It
has incurred INR2529.61 crore on the project cost which is funded
in a debt equity ratio of 2.29x.
TRACK INNOVATIONS: ICRA Reaffirms 'B' Rating on INR15cr Loan
------------------------------------------------------------
ICRA has re-affirmed its long-term rating of [ICRA]B on the
INR23.0 crore(reduced from INR25.0 crore) long-term bank
facilities and the short-term rating of [ICRA]A4 on the INR2.0
crore non-fund based facilities of Track Innovations (India)
Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Working Capital 15.00 [ICRA]B; Reaffirmed
Facilities
Term Loan 3.32 [ICRA]B; Reaffirmed
Bank Guarantee 2.00 [ICRA]A4; Reaffirmed
Unallocated 3.68 [ICRA]B; Reaffirmed
The ratings continue to be constrained by the company's high
dependence on Northern Railways which accounts for majority of the
company's revenue (95% in 2013-14) and the high working capital
intensity of operations which has led to gearing of 3.1 times and
TD/OPBDITA of 4.5 times as on March 31, 2014. Further, the
company's limited ability to pass on the increase in input prices
to its customers has resulted in pressure on profitability. The
rating reaffirmation also takes into consideration the healthy
scale-up of TIPL's operations owing to the increase in sales
volume on the back of benefit derived from capacity addition done
in the last two years. ICRA also favorably factors in the
extensive experience of the promoters in concrete sleeper
manufacturing coupled with established relationship with Northern
Railways, supplies to which are being done since 1991. Going
forward, the ability of the company to increase its scale of
operations and manage its working capital intensity would be the
key rating sensitivities.
Incorporated in 1989, TIPL manufactures and supplies pre-stressed
concrete monoblock line sleepers and other special types of
sleepers to Indian Railways and other government and private
sector organizations. The manufacturing plant is located in
Railway Colony, Chandigarh. The company was initially promoted by
Mr. Manish Verma in 1989 and was then taken over by the current
promoters, Mr. Amit Padia and his family members in February 2009.
TUSHAR FABRICS: CRISIL Assigns 'B' Rating to INR45MM Cash Credit
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Tushar Fabrics.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 6.2 CRISIL B/Stable
Cash Credit 45 CRISIL B/Stable
Letter of Credit 10 CRISIL A4
The ratings reflect of Tushar Fabrics's working capital intensive
operations and it's below average financial risk profile marked by
its modest debt protection metrics. These rating weaknesses are
partially offset by the benefits Tushar Fabrics is expected to
derive from extensive experience of its promoters in manufacturing
fabric material.
Outlook: Stable
CRISIL believes that Tushar Fabrics will continue to benefit over
the medium term from its promoters extensive experience in the
textile industry. The outlook may be revised to 'Positive' in case
there is significant and sustained improvement in the firm's
revenues and profitability, while maintaining its capital
structure. Conversely, the outlook may be revised to 'Negative' in
case of a significant decline in the firm's revenues or
profitability margins or elongation of working capital cycle or
larger than anticipated debt funded capex resulting in a weakening
in its financial risk profile.
Tushar Fabrics, formed in 2005, by Mr. Jatinbhai Madrasi and Mrs.
Vandanaben Madrasi is engaged in weaving and knitting of grey
fabric made out of viscose and cotton yarn. The company has its
weaving and knitting facility at Surat, Gujarat. The fabric
produced by the firm is sold in the domestic market and is
primarily used in ladies dress material.
For 2012-13 (refers to financial year, April 1 to March 31),
Tushar Fabrics reported, a profit before tax of INR0.27 million on
net sales of INR56.4 million; the company reported a profit after
tax of INR1.17 million on net sales of INR62.2 million for 2011-
12.
VIGNAN VIDYALAYAS: ICRA Ups Rating on INR15.06cr Term Loan to B+
----------------------------------------------------------------
ICRA has upgraded the long-term rating from [ICRA]B to [ICRA]B+ to
the INR17.03 crore fund based facilities of Vignan Vidyalayas
Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based limits- 1.97 [ICRA]B+ Upgraded from
Overdraft [ICRA]B
Fund based limits- 15.06 [ICRA]B+ Upgraded from
Term Loan [ICRA]B
The assigned rating is constrained by the low scale of operations
of the company and the limited long term growth prospects given
the plans to remain focused on Vignan group of institutions. The
growth of the parent society, Lavu Educational Society, to which
VVL provides hostel and mess facilities exclusively has been
largely through engineering and technical education where the
hostel enrollments are lower. The ability of the company to
improve operating profit margins is critical as the company's cash
flows are tightly matched with the scheduled term loan repayments
over the next two years. However the rating draws comfort from the
long experience of over three decades of the promoters in the
field of education and the established presence of the group's
institutions. The rating also positively factors in the healthy
growth of 29% in operating income in FY14 and the improved net
profit margins of the company.
Vignan Vidyalayas Limited was incorporated in 1993 as a limited
company by Dr. Lavu Rathaiah and family. The company provides
hostel and mess facilities exclusively for the students enrolled
under Lavu Education Society (LES) apart from leasing buildings to
schools and junior colleges of LES in Hyderabad and Vizag.
Recent Results
In FY14, the company reported a profit after tax of INR2.95 Crore
(un-audited & provisional) on an operating income of INR16.21
Crore (un-audited and provisional) against a profit after tax of
INR1.21 Crore on an Operating Income of INR12.63 Crore in FY13.
VIRAT SPINNERS: CARE Reaffirms B+ Rating on INR28cr Bank Loan
-------------------------------------------------------------
CARE reaffirms ratings and assigns 'CARE A4' ratings to the bank
facilities of Virat Spinners Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 28 CARE B+ Reaffirmed
Short-term Bank Facilities 2 CARE A4 Assigned
Rating Rationale
The rating assigned to the bank facilities of Virat Spinners
Private Limited continue to remain constrained on account of its
nascent stage of operations in a competitive and cyclical textile
industry, project stabilization risk with pending installation of
third machinery. The rating is also constrained on account of its
moderate capital structure, volatile raw material prices having
dependence on government policies and agro-climatic conditions.
However, the rating continues to derive strength from the widely
experienced promoters in the textile industry, presence in the
textile cluster with easy access to raw material & end users and
government support through various incentives. The ability of VIPL
to increase its scale of operations post successful commissioning
of the remaining debt funded capex and derive the envisaged
benefits is the key rating sensitivity.
Incorporated in October 2010, VIPL was promoted by Mr Sanjeev
Kumar Agarwal and Mr Vasudev Agarwal with the objective to set up
a rotor cotton yarn spinning project for the manufacturing of
coarser counts of cotton yarn in Ahmedabad (Gujarat). Their
efforts are supported by Mr Devesh Jhunjhunwala and Mr Ankit
Gadia.
The total cost of the project being undertaken by VIPL is INR34.50
crore which was proposed to be funded by a mix of term loan of
INR21.50 crore, unsecured loans of INR3.50 crore and equity
infusion of INR9.50 crore. The company started commercial
production in the first week of March 2014 with two sets of
machineries. Another machine, Autocoro machinery is proposed to be
installed by first week of November 2014. Currently, VIPL is
running two machineries and approximately INR27 crore has already
been incurred by February 2014 which was funded through part
availment of term loan of INR15.80 crore, unsecured loan of
INR2.09 crore and equity infusion of INR9.11 crore.
During FY14 (refers to the period April 1 to March 31), VIPL
reported a PAT of INR0.10 crore on a total operating income
(TOI) of INR5.32 crore.
ZED VITRIFIED: ICRA Reaffirms B+ Rating on INR13.4cr Term Loan
--------------------------------------------------------------
ICRA has reaffirmed the long term rating of [ICRA]B+ to the
INR13.40 crore term loans and the INR8.00 crore cash credit
facility of Zed Vitrified Private Limited. ICRA has also
reaffirmed the short term rating of [ICRA]A4 to the INR3.00 crore
(enhanced from INR2.10 crore) non fund based bank guarantee
facility of ZVPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 13.40 [ICRA]B+; Reaffirmed
Cash Credit 8.00 [ICRA]B+; Reaffirmed
Bank Guarantee 3.00 [ICRA]A4; Reaffirmed
The ratings continues to remain constrained by Zed Vitrified
Private Limited's (ZVPL) moderate scale of operations and weak
financial profile as reflected by thin profitability, leveraged
capital structure and weak coverage indicators. The ratings also
take into consideration the the intense competition with the
presence of large established organized tile manufacturers and
unorganized players. ICRA also takes note of the dependence of
operations and cash flows of the company on the performance of the
real estate industry which is the main consuming sector for the
company's products, and susceptibility of ZVPL's margins to raw
material price volatility and increasing prices of gas, as it is
the major source of fuel. ICRA also note that ZVPL has a single
product portfolio which restricts sales prospects to large
distributors and institutional players as they prefer to deal with
producers having entire ceramic tile product range.
The ratings, however, favorably consider the experience of the key
promoters in the ceramic industry and the location advantage
enjoyed by ZVPL with its plant located in Morbi giving it easy
access to raw materials. Further, ZVPL's diversification in
product profile as well as presence in digital printed segment is
expected to result in better realization.
Zed Vitrified Private Limited is engaged in the manufacture of
vitrified tiles with its plant situated in Morbi, Gujarat. The
company was incorporated in 2010 and the operations commenced in
April 2011. It is promoted by Mr. Karmashi Patel, Mr. Dayalji
Patel, Mr. Ashokkumar Rangpariya, Mr. Mahesh Patel and Mr.
Maheshkumar. The plant has an installed capacity of 59000 MTPA. It
currently manufactures two sizes i.e. 24"x24" and 24"X36" with the
current set of machineries and production facilities.
Recent Results
For the year ended 31st March, 2014, ZVPL reported an operating
income of INR44.26 crore and profit after tax of INR0.73 crore as
against an operating income of INR45.11 crore and a profit after
tax of INR0.81 crore during FY13.
* INDIA: New Bankruptcy Law Likely to Help SMEs
-----------------------------------------------
Hindustan Times reports that the government has set up a committee
to frame a bankruptcy law to enable entrepreneurs to close down
unviable businesses. The move is likely to primarily help small
and medium enterprises (SMEs), the report says.
A bankruptcy law will facilitate faster wind-up of insolvent
companies and provide an easy exit route for investors, Hindustan
Times relates.
Hindustan Times says other countries have structured bankruptcy
laws. The US Bankruptcy Code, Chapter 11, for instance, takes
companies through a court-monitored process of liquidation or
financial restructuring.
According to the report, Finance minister Arun Jaitley, while
presenting the Budget 2014-15, had announced that a framework
would be developed for SMEs to enable easy exit.
At present, there is no bankruptcy law in India, the report notes.
Hindustan Times states that the committee, to be headed by TK
Vishwanathan, former law secretary, will examine issues relating
to bankruptcy with a focus on early detection and resolution of
financial distress, protection of stakeholders' interest,
liquidation procedure among other things. It is also expected to
recommend ways of framing a rescue mechanism, the report notes.
The committee will submit its report by February next year,
Hindustan Times discloses.
====================
S O U T H K O R E A
====================
MONEUAL INC: Seeks Court Receivership After Bond Payment Default
----------------------------------------------------------------
Park Si-soo at The Korea Times reports that Moneual Inc. has filed
for court receivership after failing to pay bonds worth KRW500
billion ($474.1 million) that matured last week.
The report says the Suwon District Court will soon decide whether
to approve its request. Major creditors include the National
Agricultural Cooperative Federation, the Korea Development Bank
and the Industrial Bank of Korea, The Korea Times discloses.
According to the report, the firm's payment failure sent
shockwaves through the investment market since the company was
known as a financially healthy and technologically-innovative
entity among investors.
The Seoul-based company, extolled by Bill Gate in 2007 for its
technological prowess, reported KRW1.27 trillion in sales and
KRW110 billion in operating profit last year, the report
discloses. Nearly 80 percent of its sales were generated in the
overseas markets. Its liquid assets were valued at KRW359.1
billion as of the end of 2013, The Korea Times relays.
Last month, Moneual displayed its up-to-date products in Berlin
during the IFA, the largest electronics fair in Europe, pledging
to bolster its presence in the European market, the report
recalls.
The report says the payment failure was allegedly largely caused
by overdue payment from overseas buyers. Some observers have not
ruled out the possibility that the company may have manipulated
its financial reports to exaggerate its conditions, the report
notes.
Worse, the firm's founder and vice president Won Duck-yeon was
confirmed to have retired recently and its CEO Park Hong-seok's
whereabouts are reportedly uncertain, spawning speculation that
there are some untold stories linked with the company's sudden
collapse, according to The Korea Times.
Korea-based Moneual Inc. manufactures robot vacuum cleaner.
*********
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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Information contained herein is obtained from sources believed
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thereof are US$25 each. For subscription information, contact
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*** End of Transmission ***