/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/141202.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, December 2, 2014, Vol. 17, No. 238 Headlines A U S T R A L I A PIE FACE: AT Concept Sues US Pie Face Unit Over Unpaid Bills PIE FACE: Macquarie Capital Taps Ferrier Hodgson as Receivers SUMO VISUAL: Likely to Have Been Insolvent Since July C H I N A CHINA SOUTH: Stable Project Pipeline Brings Rating Closer to BB- GCL-POLY ENERGY: To Sell Solar Factories to Two Buyers LOGAN PROPERTY: Fitch Assigns BB-(EXP) Rating to Prop. USD Notes MAOYE INTERNATIONAL: Moody's Cuts Corporate Family Rating to Ba2 I N D I A AGGARWAL FOODS: ICRA Reaffirms B+ Rating on INR13cr FB Loan ASHARFI GRAMODYOG: CRISIL Rates INR4MM Cash Credit at 'B' ASHUTOSH FOODS: ICRA Reaffirms B Rating on INR29cr FB Loan AUM REALITY: ICRA Assigns B+ Rating to INR8cr FB Demand Loan BAAB CONSTRUCTIONS: CRISIL Assigns B+ Rating to INR50MM Cash Loan BASANT CITY: ICRA Assigns 'B' Rating to INR10cr Term Loan CALCO POLY: CRISIL Ups Rating on INR35MM Cash Credit to 'B+' GHANSHYAM GINN: ICRA Reaffirms 'B' Rating on INR15cr Cash Credit GLOBAL ENVIRO: ICRA Assigns B+ Rating to INR3.99cr FB Loan GRAMIN VIKAS: CRISIL Assigns B Rating to INR10MM Bank Loan KDJ HOSPITAL: ICRA Suspends 'D' Rating on INR60cr Term Loan LANTECH PHARMACEUTICALS: CRISIL Ups Rating on INR150MM Loan to B- LEXO CERAMIC: ICRA Reaffirms B+ Rating on INR2.60cr Term Loans M.R.R. INFRATECH: CRISIL Assigns 'B' Rating to INR700MM Bank Loan MASSIMO ENTERPRISE: ICRA Puts B+ Rating on INR9.75cr Term Loan MEHTA GOLD: CRISIL Assigns 'B+' Rating to INR120MM Cash Credit NAMRATA DEVELOPERS: CRISIL Reaffirms B Rating on INR140MM Loan NANAK HI-TECH: CRISIL Reaffirms D Rating on INR77.4MM Term Loan RADHESHYAM INDUSTRIES: CRISIL Reaffirms B+ Rating on INR120M Loan RENUKA OIL: CRISIL Reaffirms B- Rating on INR65MM Term Loan SATYAM GREEN: CRISIL Assigns B Rating to INR60MM Term Loan SAYONA CERAMIC: CRISIL Reaffirms B Rating on INR39.3MM Term Loan SHYAM GRAMODYOG: CRISIL Assigns B Rating to INR10MM Bank Loan SOMANIL CHEMICALS: CRISIL Reaffirms B Rating on INR45MM Cash Loan SREE SUBHALAKSHMI: CRISIL Puts B+ Rating on INR44MM Term Loan SRI SRINIVASA: ICRA Upgrades Rating on INR98.95cr Loan to B- SUPERSONIC TURNERS: CRISIL Cuts Rating on INR138.6MM Loan to D TAURUS POWERTRONICS: CRISIL Rates INR40MM Cash Credit at 'B+' ULTRA POWER: ICRA Reaffirms C+ Rating on INR16.62cr LT Loan VAISHNODEVI OIL: CRISIL Reaffirms B+ Rating on INR85MM Cash Loan VARDHMAN CABLES: CRISIL Reaffirms B+ Rating on INR20MM Cash Loan YAMIR PACKAGING: CRISIL Reaffirms B- Rating on INR80MM Cash Loan ZODIAC INFRA: CRISIL Reaffirms B- Rating on INR66MM Cash Credit * INDIA: Rajan Seeks More Power for India's Banks Over Defaulters I N D O N E S I A BAKRIE TELECOM: Fitch Withdraws 'Restricted Default' IDR M A L A Y S I A MALAYSIA AIRLINES: Trade Unions Get Ultimatum N E W Z E A L A N D OUTGRO FERTILISER: Directors Under Investigation TE RIMU: Still Owes NZ$1.28 Million to Creditors X X X X X X X X * BOND PRICING: For the Week Nov. 24 to Nov. 28, 2014 - - - - - ================= A U S T R A L I A ================= PIE FACE: AT Concept Sues US Pie Face Unit Over Unpaid Bills ------------------------------------------------------------ Eloise Keating at SmartCompany reports that the US arm of Pie Face could be in for a costly legal battle, with a New York-based building company initiating legal action against the company, which it alleges wrongfully terminated a contract and failed to pay bills of up to US$360,000 (AUD425,129). SmartCompany, citing News Corp., relates that building company AT Concept has launched a claim against the Pie Face store near Hell's Kitchen as well as parent company Pie Face Holdings in the Supreme Court of the State of New York. SmartCompany relates that in its claim, AT Concept said it was engaged by Pie Face Holdings to construct the store in 2013 for an agreed price of US$303,560, with the bills for the project later climbing to US$360,000 due to new demands from Pie Face management. But AT Concept alleges Pie Face breached its contract by failing to pay for the completed work and later terminating the contract, the report says. "At the time the plaintiff's contract was wrongfully terminated, it had completed work in the amount of US$313,831.35, no part of which had been paid, except the amount of US$194,069.08, thereby leaving a balance due and owing of US$119,762.27," the AT Concept claim stated, SmartCompany relays. The report says the building firm is hoping to recover this amount through the court action, as well as legal costs and fees. News Corp said Pie Face has denied the claims, SmartCompany adds. About Pie Face Pie Face offers premium handmade sweet and savoury pies, pastries, cakes, muffins, coffee and other lunch options. The Company launched in Sydney in 2003 and had 89 stores across Australia, the United States and New Zealand. Jirsch Sutherland partners Sule Arnautovic and Rod Sutherland were appointed as Joint Administrators of Pie Face Holdings Pty Ltd, Pie Face Franchising Pty Ltd and Pie Face Pty Ltd on Nov. 21, 2014. PIE FACE: Macquarie Capital Taps Ferrier Hodgson as Receivers ------------------------------------------------------------- Eloise Keating at SmartCompany reports that Macquarie Capital, one of Pie Face's secured creditors, late in November appointed Ferrier Hodgson partners Steve Sherman and Peter Gothard as receivers to a number of key Pie Face assets. A spokesperson for Ferrier Hodgson told SmartCompany, Sherman and Gothard have been appointed as receivers for "cash at bank as well as shares held in Pie Face Inc, as well as director loan accounts" in Pie Face Holdings. However, the spokesperson said Ferrier Hodgson will not have any involvement in determining if a Deed of Company Arrangement will be presented to Pie Face creditors. "This is a matter for the voluntary administrators and creditors generally," the spokesperson told SmartCompany. According to SmartCompany, Fairfax said Ferrier Hodgson has been appointed as receivers to control the agreement between Pie Face and high-profile US casino developer Steve Wynn, who made a AUD15 million investment in Pie Face's US operations in 2012. About Pie Face Pie Face offers premium handmade sweet and savoury pies, pastries, cakes, muffins, coffee and other lunch options. The Company launched in Sydney in 2003 and had 89 stores across Australia, the United States and New Zealand. Jirsch Sutherland partners Sule Arnautovic and Rod Sutherland were appointed as Joint Administrators of Pie Face Holdings Pty Ltd, Pie Face Franchising Pty Ltd and Pie Face Pty Ltd on Nov. 21, 2014. SUMO VISUAL: Likely to Have Been Insolvent Since July ----------------------------------------------------- Nic White at ProPrint reports that administrators for Sumo Visual said the collapsed retail printer was 'likely to have been insolvent since July', and amassed debts of AUD2.5 million in that time alone. ProPrint relates that administrators Craig Crosbie and David McEvoy at PPB Advisory also believed 30 unnamed creditors were given unfair preferential payments totalling AUD800,000 in the year leading up to the collapse. The administrators said company was propped up by AUD3 million in payments from its private equity investors between May and September this year, ProPrint relays. According to ProPrint, the administrators do not expect any return for the mass of 341 trade creditors that are looking for some of their money back. In a detailed 39-page investigative report to creditors obtained by ProPrint, administrators say Sumo accumulated debts of more than AUD7.5 million since July 1 last year -- the month after founder Matt Huber was replaced as chief executive following a heart attack. Senior Sumo managers told ProPrint it was from this point on that things started to go badly for the company, as executives appointed by major private equity shareholder Harbert Management Corporation managed to derail the company in less than 18 months. The administrators have given up on finding a buyer for the business or its assets, and recommend the creditors resolve to liquidate the company, ProPrint says. They did manage to sell in-house developed software Sumo Tools for an undisclosed sum, this is likely the AUD800,000 MIS system senior managers say was ill-conceived and contributed to Sumo's downfall, according to ProPrint. The production kit will be auctioned by Dominion Group on December 4 at Sumo's Port Melbourne facility, ProPrint adds. Sumo Visual Group is one of Australia's biggest retail signage printers. ========= C H I N A ========= CHINA SOUTH: Stable Project Pipeline Brings Rating Closer to BB- ---------------------------------------------------------------- Fitch says China-based trade centre developer China South City Holdings Limited's (CSC; B+/Positive) scale has reached a level that brings its profile closer to 'BB-' peers'. However, its rating is still restrained by high project concentration risk. The Positive Outlook reflects CSC's healthy pipeline of sellable resources in various locations that would enable the company to sustain its scale and diversify over time. CSC's performance has met some of the benchmarks the agency laid out for positive action. Its contracted sales reached CNY12bn in the 12 months ended Sept. 2014 (financial year ended March 31, 2014: CNY8.2bn), while leverage of 31% in 1HFY15 has remained below 35%. However, CSC's Zhengzhou project accounted for 41% of the company's total contracted sales in 1HFY15 (FY14: 30%). Fitch expects CSC's concentration risk to reduce in 2HFY15 with growing sales contribution from newer projects in Harbin and Hefei, and the launch of sales for its Chongqing project in the next 12 month. CSC's EBITDA margin fell to 34% in 1HFY15 (FY14: 36%), largely due to recognition of newer projects that have lower average selling prices and seasonal factors. Fitch expects average selling prices for contracted sales to increase steadily, albeit at a slower pace than before, and growing economies of scale to support an increase in the EBITDA margin to closer to 40%, the level at which the agency would consider positive rating action. CSC would be upgraded if it can sustain its scale and reduce its concentration risk while at the same time preserving its credit metrics. However, the weak sentiment in China's property market and slowing economic growth could hinder CSC's efforts to achieve its sales and diversification targets. In such a scenario, the rating Outlook would be revised to Stable. GCL-POLY ENERGY: To Sell Solar Factories to Two Buyers ------------------------------------------------------ Wayne Ma at The Wall Street Journal reports that GCL-Poly Energy Holdings Ltd., one of China's largest solar-equipment makers is selling its core business to two buyers -- one of which is controlled by its chairman -- for CNY8 billion (US$1.3 billion) as it tries to get out from under heavy debt. The Journal says the proposed sale by GCL-Poly Energy illustrates how China's solar industry is being reshaped after some of its largest and oldest companies stumbled by growing too quickly. According to the Journal, GCL-Poly said it was selling seven solar-wafer factories and two solar-ingot factories. Those facilities booked revenue of HK$10.86 billion (US$1.4 billion) in the first half of 2014, representing 63% of GCL-Poly's total revenue for the period, the Journal discloses citing company statements. Solar cells -- a key component for solar panels -- are made from solar wafers, which are made from solar ingots, the report notes. The Journal relates that GCL-Poly said the first buyer is a fund controlled by GCL-Poly Chairman Zhu Gongshan, while the second buyer, Shanghai Miaochang Investment Management Center L.P., may sell at least 30% of the acquired assets to Mr. Zhu. Both buyers have connections to Shanghai Chaori Solar Energy Science & Technology Co., another struggling Chinese solar company that was the first in China to default on domestic corporate bonds earlier this year, the Journal relates. Mr. Zhu's fund is part of a group of nine investors that bailed out Chaori by buying a more than 30% stake in the company, GCL- Poly's statements show, according to the Journal. Meanwhile, a general partner of the second buyer has guaranteed up to 788 million yuan of Chaori's defaulted bonds, the report relays. The Journal adds that GCL-Poly said Mr. Zhu's fund plans to inject the assets from GCL-Poly into Chaori, while the second buyer's assets may ultimately be injected into Chaori as well. GCL-Poly already has been supplying solar components to Chaori since July. The Journal says the Chinese government has revived its solar industry after a two-year slump by announcing ambitious targets to add as much as 14 gigawatts of solar capacity by the end of this year. That target helped companies such as GCL-Poly, which swung to a profit in the first half of 2014 from a net loss in the year- earlier period. Still, GCL-Poly has been mired in debt after it said it invested heavily over the past 2-1/2 years through borrowing. As of June, GCL-Poly had cash and cash equivalents of about HK$10 billion and debt of about HK$44.26 billion, the Journal discloses. The company said on November 30 that HK$16.03 billion in debt will be transferred off its books as part of the sale. Proceeds from the sale, which total HK$9.87 billion, will help the company pay down the remaining debt of HK$27.7 billion, it said, the Journal relays. GCL-Poly produces solar polysilicon and manufactures solar wafer. LOGAN PROPERTY: Fitch Assigns BB-(EXP) Rating to Prop. USD Notes ---------------------------------------------------------------- Fitch Ratings has assigned an expected rating of 'BB-(EXP)' to China-based homebuilder Logan Property Holdings Company's (BB- /Stable) proposed notes denominated in US dollars. Logan plans to use the note proceeds to refinance existing onshore borrowings. The final rating is contingent upon the receipt of final documents conforming to information already received. The notes are rated at the same level as Logan's senior unsecured debt rating as they represent direct, unconditional, unsecured and unsubordinated obligations of the company. KEY RATING DRIVERS Established Market Position: Logan's ratings reflect its established business position with contracted sales of CNY13.2bn in 2013 (1H14: CNY5.54bn), and strong execution ability in large- scale mass-market residential developments in key cities where it operates. About 66% of Logan's existing land bank is located in Huizhou, Nanning and Shantou, where Logan has been ranked among the top five developers by sales value in the past three years. Logan will continue to use its strong track record in these locations to expand over the medium term. Large Land Bank Gives Flexibility: Logan's large land bank of 12.8 million square metres (sqm) that it purchased at an average cost of below CNY1,200/sqm is sufficient for five to six years' worth of sales. This large low-cost land reserve, gives the company operational flexibility in terms of land purchases over the medium term. The leeway is especially important at a time when land prices are rising rapidly. Stable Margins: As land costs increase over time, Fitch expects the company's overall EBITDA margin to be sustained at above 25% (1H 2014: 24%) as lower margins from its fast-churn projects would be balanced by stronger profit margins from projects with low land cost. Logan also reaps some savings by using its in-house construction arm. Balance Sheet Supports Moderate Expansion: Logan's net debt/adjusted inventory is healthy at 30% as at 1H14 (end-Dec 2013: 33%). Logan's leverage may increase to beyond 40% at end- 2014 following its acquisition of seven new land parcels in January-October 2014. Fitch expects it to drop below 40% over the medium term, assuming Logan slows down its pace of acquisition in 2015 and maintains healthy sales performance. Manageable Single Project Exposure: Although plots in Huizhou make up about 40% of Logan's land bank, sales from its main project, Logan City (Huizhou), will be spread out over several years and likely remain below 25% of Logan's total annual sales. In addition, the low land cost of CNY220/ sqm for Logan City (Huizhou), compared with the average selling price (ASP) of CNY6,300/ sqm, provides a comfortable buffer against price corrections and potential competition from nearby projects. High Exposure in Guangdong: Logan's rating is constrained by its concentration in Guangdong province, which accounts for more than 70% of its sales and land bank. This increases its susceptibility to changes in the local economy and policies. Its exposure to smaller cities may leave it vulnerable to higher price volatility; however this is partially mitigated by the company's strong profit buffer due to the low cost of its land and products that target first-home buyers and upgraders. Due to its proximity to Shenzhen and to a lesser extent Guangzhou, Logan City (Huizhou) also targets end-users from these first-tier cities in Guangdong province. Large Projects May Lengthen Cash Cycle: Logan's strategy is to secure large parcels of land outside the city centre to tap demand from urbanization in China. The success of these projects hinges on the continuation of the urbanization trend and demands a longer cash cycle. Low land costs for these projects, Logan's healthy leverage, and cash flow from the company's fast-churn projects will mitigate some of this risk. RATING SENSITIVITIES Negative: Future developments that may, individually or collectively, lead to negative rating action include: -- EBITDA margin sustained below 25% -- Net debt/adjusted inventory sustained above 40% -- Contracted sales / total debt sustained below 1.0x -- Sustained decline in contracted sales from current levels Positive: No positive rating action is expected unless Logan is able to substantially increase its scale and diversify outside Guangdong province without compromising its financial metrics. MAOYE INTERNATIONAL: Moody's Cuts Corporate Family Rating to Ba2 ---------------------------------------------------------------- Moody's Investors Service has downgraded to Ba2 from Ba1 Maoye International Holdings Ltd.'s corporate family rating. At the same time, Moody's has downgraded Maoye's senior unsecured bond rating to Ba3 from Ba2. The ratings outlook is stable. Ratings Rationale "The downgrade reflects Moody's expectation that Maoye's financial leverage will remain elevated over the next 1-2 years, given its already high level of debt at end-June 2014 and uncertainty over its ability to reduce debt through using the proceeds from its property sales," says Lina Choi, a Moody's Vice President and Senior Analyst. According to Maoye, it made some progress in monetizing its property inventory in 3Q 2014, and expects to generate sizeable levels of operating cash flow and earnings in its property development business over the next several years. "However, Moody's believes that significant uncertainty exists as to the timing and the scale of such activities, particularly given the challenging character of property-market fundamentals and the expectation that this situation should persist into 2015," says Choi. In addition, Maoye's investments to establish new department stores and the size of construction costs for its property business should constrain its ability to reduce debt. In this regard, Moody's expects adjusted debt/EBITDA to stay at 5.0-5.5x over the next 12-18 months. Although this level is lower than the 6.3x for the 12-month period ended June 2014, it is still weak for the parameters of the Ba1 CFR category. At the same time, Moody's says that Maoye's Ba2 corporate family rating acknowledges its leading market position in Shenzhen, its successful low-cost expansion strategy, and its use of a competitive business model which involves the use of self-owned properties for its department stores in prime locations in lower- tier cities. The rating also reflects its reasonably good liquidity profile, as well as the low business and inventory risks stemming from the concessionaire model for its department stores. Moody's continues to apply a one-notch downward adjustment to Maoye's bond rating because of the subordination risk arising from priority debt. Moody's estimates that such debt will continue to account for more than 15% of the company's total assets over the next two years, unless a significant reduction occurs in onshore debt. The stable outlook reflects Moody's expectation that Maoye's overall financial profile will remain in line with the Ba2 corporate family rating over the next 12-18 months, given incremental earnings and cash flow from its property business, as well as stable cash flow generation at its department store business. Upgrade pressure could emerge over time if Maoye: (1) successfully executes its business plan; (2) improves operating cash flows and generates positive free cash flow; and (3) improves its credit metrics, such that adjusted debt/EBITDA falls below 4.5x and RCF/net debt exceeds 20%. On the other hand, downgrade pressure could arise if Maoye: (1) shows weak liquidity as a result of fast expansion, or an inability to sell its development properties; (2) invests in additional new projects that further delay deleveraging of its debt levels; or (3) suffers a material deterioration in the sales and cash flows of its existing stores, or takes longer than expected to break even at its new stores. Credit metrics indicating downgrade pressure include adjusted debt/EBITDA exceeding 5.5x-6.0x and retained cash flow (RCF)/adjusted net debt falling below 14%-16%. The principal methodology used in this rating was Global Retail Industry published in June 2011. Maoye International Holdings Ltd. is one of the leading department store operators in China. Listed on the Hong Kong Exchange in 2008, the company is headquartered in Shenzhen, and has expanded to China's second- and third-tier cities, targeting the mid- to high-end retail market. ========= I N D I A ========= AGGARWAL FOODS: ICRA Reaffirms B+ Rating on INR13cr FB Loan ----------------------------------------------------------- ICRA has reaffirmed the long term rating of [ICRA]B+ for the INR13.00 crore fund based facilities of Aggarwal Foods. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based limits 13.00 [ICRA]B+ (reaffirmed) The rating reaffirmation factors in AF's weak financial profile reflected by low sales during FY14 and high gearing level. The sales were low as the company undertook job work activity and processed less paddy for its own sales. The rating continues to be constrained by high intensity of competition in the industry and agro climatic risks, which can affect the availability of paddy in adverse weather conditions. The rating, however favorably takes into account long standing experience of promoters in rice industry and proximity of the mill to major rice growing area which results in easy availability of paddy. Aggarwal Foods (AF) is a proprietorship firm, was set up in 1997 by Mr. Suresh Kumar. Aggarwal Foods is engaged in processing and export of basmati rice to countries in the Middle East. It has a plant at Karnal (Haryana) which has a milling capacity of 6 tonnes per hour and a sortex machinery with a capacity of 4 ton/hr. Recent Results During the financial year 2013-14, the firm reported profit after tax (PAT) of INR0.91 crore on an operating income of INR20.36 crore as against PAT of INR0.91 crore on an operating income of INR30.22 crore in FY13. ASHARFI GRAMODYOG: CRISIL Rates INR4MM Cash Credit at 'B' --------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the bank facilities of Asharfi Gramodyog Sansthan (AGS). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit/Overdraft 4 CRISIL B/Stable facility The rating reflects the society's below-average financial risk profile marked by low networth. The rating also reflects the small scale of, and not-for-profit nature of operations. These rating weaknesses are partially offset by the society's track record of developed relations with government authorities for free-meal assignments. Outlook: Stable CRISIL believes that AGS's business risk profile will remain constrained on account of its small scale of operations. The outlook may be revised to 'Positive' in case the firm registers significant improvement in its scale of operations, diversification of revenue profile and/or timely collection of receivables leading to improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' in case the firm registers a decline in its sales or profitability or if its working capital requirements are larger than expected, leading to pressure on its financial risk profile. AGS is organized as a not-for-profit society and is managed by its president Mr. Hari Kishan and secretary Mr. Asarfi Lal. The society is located at Charra in Aligarh district of Uttar Pradesh and provides free meals under the mid-day meal scheme and other government mandated schemes. AGS reported a net surplus of INR0.14 million on an operating income of INR16.9 million for 2013-14, against a net surplus of INR0.13 million on an operating income of INR17.7 million for 2012-13. ASHUTOSH FOODS: ICRA Reaffirms B Rating on INR29cr FB Loan ---------------------------------------------------------- ICRA has reaffirmed the long term rating of [ICRA]B for the INR29.00 crore fund based facilities of Ashutosh Foods. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based facilities 29.00 [ICRA]B (reaffirmed) The rating is constrained by AF's weak financial profile, reflected by low profitability metrics, high gearing and consequently weak debt coverage indicators. The rating also takes into account high intensity of competition in the industry and agro climatic risks, which can affect the availability of paddy in adverse weather conditions. The ratings further take note of the risks inherent in proprietorship firm such as limited ability to raise funds; funds withdrawal and dissolution. The rating however, favorably takes into account long standing experience of promoters, expected benefits arising out of established client relationships of its group companies in rice industry and proximity of the mill to major rice growing area which results in easy availability of paddy. Ashutosh Foods (AF) was established in the year 2000. The firm is primarily engaged in the milling of basmati/non basmati paddy and is based out of Nisiing (Karnal). Recent Results During the financial year 2013-14, the firm reported a profit after tax (PAT) of INR0.17 crore on an operating income of INR134.70 crore as against PAT of INR0.09 crore on an operating income of INR81.48 crore in 2012-13. AUM REALITY: ICRA Assigns B+ Rating to INR8cr FB Demand Loan ------------------------------------------------------------ ICRA has assigned the long term rating of [ICRA]B+ to INR8.00 crore fund based limits of Aum Reality. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based- 8.00 [ICRA]B+ assigned Demand Loan The rating assigned to Aum Reality (AR) is constrained by the project's exposure to moderate execution risk given 69% of the estimated construction cost has been incurred. The rating is further constrained by the project's exposure to sales risk and risk pertaining to collections with respect to the sold area since only 17% of the sales value for the sold area has been collected upfront by way of advances from customers. Besides, ICRA notes that a limited cushion is available between the scheduled date of completion and repayment of term loan. Thus, any delay realization of sales and receipt of payments could lead to refinancing risks. Further, intense competition from upcoming projects in the area can adversely impact the marketability and profitability of the project. The rating also takes into account the risks associated with the legal status of AR as a partnership firm. The rating, however, takes into account the long experience of the promoters in Surat real estate market favourably and the project's limited exposure to regulatory risk as necessary approvals are in place.The rating also draws comfort from the favourable location of the project in proximity to public amenities and Hazira industrial belt. Established as a partnership firm in February 2013, M/s Aum Reality commenced the development of its first project viz. Veer Exotica in April 2013. The project is a residential project housing 96 two BHK flats with a saleable area of 1335 sq.ft and and 14 shops with a saleable area of 643sq.ft.The project is located in the Pal-Adajan area of Surat and the management is targeting the service class population employed in companies located in Hajira industrial belt as prospective buyers. The project is scheduled to be complete by June 2015. BAAB CONSTRUCTIONS: CRISIL Assigns B+ Rating to INR50MM Cash Loan ----------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Baab Constructions (India) Pvt Ltd (BCIPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 4.2 CRISIL B+/Stable Bank Guarantee 30 CRISIL A4 Cash Credit 50 CRISIL B+/Stable The ratings reflect BCIPL's working capital intensive and small scale of operations, and its susceptibility to intense competition from large players. These rating weaknesses are partially offset by its promoters' extensive experience in the civil construction industry. Outlook: Stable CRISIL believes that BCIPL will benefit from its promoters' extensive experience in the civil construction industry over the medium term. The outlook may be revised to 'Positive', if BCIPL significantly increases its scale of operations while it sustains its operating profitability, and shortens its working capital cycle, leading to an improvement in its liquidity. Conversely, the outlook may be revised to 'Negative', if the company's revenue and operating profitability decline or its working capital cycle elongates, leading to deterioration in its financial profile, especially liquidity. BCIPL was established in 2004 by Mr. Abdul Basheer and family in Ponda (Goa). The company undertakes civil construction activity mainly for Public Works Department of Goa and Goa Industrial Development Corporation. BCIPL reported a profit after tax (PAT) of INR6.6 million on an operating income of INR115 million for 2013-14 (refers to financial year, April 1 to March 31), against a PAT of INR5.6 million on an operating income of INR89.2 million for 2012-13. BASANT CITY: ICRA Assigns 'B' Rating to INR10cr Term Loan --------------------------------------------------------- ICRA has assigned [ICRA]B rating to the INR10.00 crore proposed term loan facilities of Basant City Centre Malls Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loan 10.00 [ICRA]B/assigned The rating takes comfort from the favorable location of the company's upcoming real estate project - Basant Hiralkh - in Court Circle on Traveller's Bunglow Road, which is one of the prominent localities of Hubli (Karnataka). The rating also considers the past track record of the promoters in the development of software parks, hotels and hospitals. The rating is however constrained due to the regulatory risk faced by the project as the project only has initial approvals for B+G+3 floors, although the plan is to develop B+G+8 floors. Moreover the execution risk is also high as the project implementation is in nascent stages and only the excavation work has been completed till now. The rating also considers the high funding risk as the debt has not been tied up yet and dependence on customer advances is also significant; with the project yet to be commercially launched, there is limited visibility on the timeliness and adequacy of future cash flows from sale of properties. Going forward, receipt of all the requisite approvals and the ability of the company to achieve adequate sales levels and collect advances would be the key sensitivities for any further rating action. Basant City Centre Mall Private Limited (BCMPL) is a private limited company promoted by Mr. Basantkumar Patil and his associates to carry on the business of construction and development of residential and commercial properties. The company was incorporated on in 2006 with its registered office at Bangalore. The firm is being managed by Mr. Patil who has developed several other projects including software parks, hotels and a hospital in Bangalore. He also runs three hotels in Bangalore and Hubli and a charitable trust in Bijapur. He has served as the president of Karnatka Film Producers Association for the period 2001-05. The company is currently developing a residential cum commercial project, "Basant Hiralkh" at Court Circle, Traveller's Bunglow Road, Hubli. The project has residential and commercial structures consisting of two towers of eight floors each. The project is being executed in JDA mode whereby the company has 100% share in residential area and 43% share in commercial area. The total project cost is INR120 crore which is to be funded through bank loans to the tune of INR50 crore, INR20 crore through promoter contribution and balance INR50 crore through customer advances. Recent Results This is the first project being executed by the company and it has not booked any revenues till date. CALCO POLY: CRISIL Ups Rating on INR35MM Cash Credit to 'B+' ------------------------------------------------------------ CRISIL has upgraded its rating on the long-term bank facilities of Calco Poly Technik Pvt Ltd (CPTPL) to 'CRISIL B+/Stable' from 'CRISIL B/Stable' and assigned the company's short-term rating at 'CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 35 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') Letter of Credit 20 CRISIL A4 (Reaffirmed) Standby Line of Credit 6 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') Term Loan 37.2 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') The rating upgrade reflects CPTPL's improved business risk profile; the company's net sales increased to around INR209 million in 2013-14 (refers to financial year, April 1 to March 31) from INR30 million in 2012-13, as it was the first full year of operations. Its operating margin significantly improved to 9.9 per cent in 2013-14 from 1.2 per cent in the previous year. The overall improvement in both sales as well as operating margin has been on account of stabilisation of sales, and an increase in the customer base. Consequently, the cash accruals for 2013-14 were higher at INR10 million, which were adequate to meet its debt obligations of INR7 million for the year. CPTPL's overall financial risk profile remains weak, with gearing at 3.96 times as on March 31, 2014. The gearing is likely to improve over the medium term on account of the absence of any large debt-funded capital expenditure programme and an increase in the net cash accruals. The rating continues to reflect CPTPL's below-average financial risk profile, marked by high gearing and average debt protection metrics, and large working capital requirements. These rating weaknesses are partially offset by its promoters' extensive experience in the polymers industry. Outlook: Stable CRISIL believes that CPTPL will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the company's financial risk profile improves, driven most likely by sizeable net cash accruals or a significant increase in the scale of operations. Conversely, the outlook may be revised to 'Negative' if there is a significant deterioration in the company's liquidity or further weakening of the capital structure, or a decline in its profitability. CPTPL was incorporated in 2010 as Calco Technologies Pvt Ltd and was renamed to the current one in 2011. It manufactures engineering thermoplastic for automobile, consumer durables, industrial goods, electrical, and electronics industries at its factory in Kundli (Haryana). Mr. Vijay Gupta, the key promoter and director of the company, looks after financial activities, while Mr. Varun Gupta, another key promoter and director, looks after the day-to-day operations. GHANSHYAM GINN: ICRA Reaffirms 'B' Rating on INR15cr Cash Credit ---------------------------------------------------------------- The rating of [ICRA]B has been reaffirmed to the INR15.00 crore fund based cash credit facility and the INR0.70 crore (reduced from INR1.46 crore) term loan facility of Ghanshyam Ginn Mill Industries. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 15.00 [ICRA]B reaffirmed Term Loan 0.70 [ICRA]B reaffirmed The rating continues to be constrained by the firm's weak financial profile as reflected by adverse capital structure along with weak debt coverage indicators and stretched liquidity position. 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 and export quota. Further, GGMI being a partnership firm, any significant withdrawals from the capital account would affect its net worth adversely. The rating, however, positively considers the long experience of the partners in the cotton ginning and pressing industry and the advantage, firm enjoys by virtue of its location in cotton producing region giving it easy access to raw cotton with the positive demand outlook for cotton and cottonseed. Ghanshyam Ginn Mill Industries (GGMI) was incorporated in 2011 and is promoted by Mr. Hirenbhai Sakariya and other family members. The firm is engaged in cotton ginning, pressing and cotton seed crushing to produce cotton bales, cotton seed oil and cake. Initially the firm has installed 24 ginning machines and 20 crushing machines with an installed capacity of 250 cotton bales per day and crushing 100 MT of cotton seed per day. Recent Results For the year ended 31st March, 2014, GGMI reported an operating income of INR73.12 crore and profit after tax of INR0.16 crore. GLOBAL ENVIRO: ICRA Assigns B+ Rating to INR3.99cr FB Loan ---------------------------------------------------------- ICRA has assigned a long term rating of [ICRA]B+ to INR3.99 crore fund based limits and short term rating of [ICRA]A4 to INR5.00 crore non-fund based limits of Global Enviro Air Systems Private Limited. ICRA has also assigned [ICRA]B+/A4 to INR0.01 crore unallocated limits of GEASPL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limits 3.99 [ICRA]B+ assigned Non Fund Based Limits 5.00 [ICRA]A4 assigned Unallocated Limits 0.01 [ICRA]B+/[ICRA]A4 assigned The assigned ratings are constrained by GEASPL's small scale of operations in the pollution control equipment installation; limited bargaining power with the customers who are mostly large corporate resulting in pressure on margins; and moderate operating margins traditionally at 8%-10% and low net margins at 2%-4% levels owing to high depreciation and interest expenses. The ratings also factor in decrease in revenues in the past 2 years owing to sluggish demand for capital equipment with deferment of new manufacturing units due to weak economic demand outlook and weak liquidity position as reflected in near full utilization of CC limits in the past 12 months owing to high working capital intensity of 37% for FY2014. The working capital intensity is high due to high inventory levels and high receivables on account of blockage of funds towards retention money and high credit period offered to customers in the range of 45-60 days. The ratings however positively factor in management experience of more than 15 years in the area of pollution control equipment design and manufacturing; reputed client base and healthy order book position with order book/OI of 1.43 times resulting in revenue visibility in near term. Going forward, the company's ability to manage working capital requirements will remain key rating sensitivities from credit perspective. Global Enviro Air Systems Private Ltd is the flagship company of the Global group which began operations in 1999 and it undertakes manufacturing and installation of pollution control equipment which includes Clean Rooms, HVAC (Heating, Ventilation and Air Conditioning) systems, Bag Filters, Centrifugal Blowers, Axle Flow Blowers, Dust Extraction Systems, Fume Extraction Systems etc. Recent Results The company reported an operating income and net profit of INR18.67 crore and INR0.39 crore respectively in FY2014 as against an operating income and net profit of INR17.60 crore and INR0.45 crore respectively in FY2013. GRAMIN VIKAS: CRISIL Assigns B Rating to INR10MM Bank Loan ---------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the bank facilities of Gramin Vikas Sewa Sansthan (GVSS). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term 10 CRISIL B/Stable Bank Loan Facility The rating reflects the society's below-average financial risk profile marked by low networth. The rating also reflects the small scale of, and not-for-profit nature of operations. These rating weaknesses are partially offset by the society's track record of developed relations with government authorities for free-meal assignments. Outlook: Stable CRISIL believes that GVSS's business risk profile will remain constrained on account of its small scale of operations. The outlook may be revised to 'Positive' in case the firm registers significant improvement in its scale of operations, diversification of revenue profile and/or timely collection of receivables leading to improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' in case the firm registers a decline in its sales or profitability or if its working capital requirements are larger than expected, leading to pressure on its financial risk profile. GVSS is organized as a not-for-profit society and is managed by its president Mr. Vinod Kumar and secretary Mr. Dinesh Kumar. The society is located at Charra town-ship of district Aligarh of Uttar Pradesh. The society provides free meals under mid-day meal scheme and various other government mandated schemes. GVSS reported a net surplus of INR0.15 million on an operating income of INR19.0 million for 2013-14, against a net surplus of INR0.05 million on an operating income of INR12.5 million for 2012-13. KDJ HOSPITAL: ICRA Suspends 'D' Rating on INR60cr Term Loan ----------------------------------------------------------- ICRA has suspended the [ICRA]D rating for the INR60.00 crores bank facilities of KDJ Hospital Limited (erstwhile KDJ Hotels & Resorts Limited). The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Fund 60.00 [ICRA]D (Suspended) Based-Term Loans According to its suspension policy, ICRA may suspend any rating outstanding if in its opinion there is insufficient information to assess such rating during the surveillance exercise. ICRA will withdraw the rating in case it remains under suspension for a period of three years. KDJ Hospital Limited (KDJ) is a part of the KDJ Group (erstwhile Prescon Group) which is promoted by the three partners -- Mr. Surendra Kedia, Mr. Vinod Deora and Mr. Dinesh Jalan. Mr. Deora, who is one of the promoters' of the Group, is engaged in the textile business while the other two promoters -- Mr. Jalan and Mr. Kedia are involved in the real estate and construction business. The company, KDJ Hospital Limited was initially incorporated as KDJ Hotels & Resorts Limited; with the promoters earlier planning to construct a 93 room 4-star hotel at Jodhpur on Pali National Highway about 17 km from Jodhpur city with a capex of INR50.75 crore and COD of December 2013. Due to the increase in demand for quality healthcare service providers and stiff competitive scenario for hospitality business, the promoters had decided to convert the under construction 4 star property into a 144 bed multi-specialty hospital. The Hospital would be positioned as a high end private hospital which would cater to the nearby district areas of Pali district, Barmer and Jaisalmer districts. The proposed hospital aims to cater to a catchment area of 100 km and the thrust areas will be Cardiac care, Orthopedics, Trauma, Oncology, gynaecology, Critical care, Neurology and Obstetrics. o ensure smooth day to day operations as well as to oversee the design and project management, the company has awarded the management contract to Hosmac India Private Limited (Hosmac India); which has significant experience in the field of design and project management for hospitals in India. LANTECH PHARMACEUTICALS: CRISIL Ups Rating on INR150MM Loan to B- ----------------------------------------------------------------- CRISIL has upgraded its ratings on the bank facilities of Lantech Pharmaceuticals Ltd (LPL) to 'CRISIL B-/Stable/CRISIL A4' from 'CRISIL D/CRISIL D'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 2.5 CRISIL A4 (Upgraded from 'CRISIL D') Cash Credit 40 CRISIL B-/Stable (Upgraded from 'CRISIL D') Letter of Credit 25 CRISIL A4 (Upgraded from 'CRISIL D') Long Term Loan 150 CRISIL B-/Stable (Upgraded from 'CRISIL D') The rating upgrade reflects LPL's timely debt servicing, backed by improvement in its liquidity driven by improving net cash accruals, and support from the promoters in the form of unsecured loans. The company's cash accruals over the near to medium term are expected to be adequate to meet term debt repayment obligations. The ratings also reflect LPL's modest scale of operations in the highly competitive domestic pharmaceuticals industry, working- capital-intensive operations as reflected in high gross current asset days, and weak financial risk profile, marked by high gearing, small net worth, and weak debt protection metrics. These rating weaknesses are partially offset by the extensive industry experience of LPL's promoters. Outlook: Stable CRISIL believes that LPL will benefit over the medium term from the extensive industry experience of the promoters and their funding support. The outlook may be revised to 'Positive' if the company significantly improves its scale of operations and cash accruals leading to improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if its cash accruals are considerably lower than expectation, or the company undertakes any substantial debt-funded capital expenditure programme, or there is an elongation in its working capital cycle, constraining its liquidity. Incorporated in April 2008, LPL is managed by Mr. B Ramchandra Reddy, Mr. V Prakash Reddy, Mr. D Venkat Reddy, and Mr. P Lakshmi Prasanna. The company started its operations in 2009-10 (refers to financial year, April 1 to March 31) and manufactures bulk drugs, such as telmisartan and glycerotril clopdogrel, and various chemical intermediates. Its manufacturing facility is in Srikakulam (Andhra Pradesh) with installed capacity of around 1200 tonnes per annum. In addition, the company undertakes job work for Mylan Laboratories Limited (CRISIL AA-/Stable/CRISIL A1+), Ranbaxy Laboratories Limited (CRISIL A1+), Aurbindo Pharma Limited and Laurus Labs Private Limited. LEXO CERAMIC: ICRA Reaffirms B+ Rating on INR2.60cr Term Loans -------------------------------------------------------------- ICRA has re-affirmed the long term rating of [ICRA]B+ to the INR2.50 crore cash credit fund based facility and the INR2.60 crore (reduced from INR3.69 crore) term loan fund based facilities of Lexo Ceramic. ICRA has also re-affirmed the short term rating of [ICRA]A4 to the INR2.00 crore (enhanced from INR0.80 crore) non-fund based facilities of Lexo. ICRA has also assigned [ICRA]B+ and [ICRA]A4 to the INR0.40 crore unallocated limits of Lexo. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based limits- 2.50 [ICRA]B+ reaffirmed Cash Credit Fund based limits- 2.60 [ICRA]B+ reaffirmed Term loans Non Fund based 2.00 [ICRA]A4 reaffirmed Limits- Bank Guarantee Unallocated limits 0.40 [ICRA]B+/[ICRA]A4 assigned The combined fund based, non fund based and unallocated limit utilization should not exceed INR7.50 crore at any point of usage. The ratings reaffirmation continue to remain constrained by Lexo Ceramic's (Lexo) small scale of operation in a highly competitive business environment with the presence of both organized as well as unorganized players. The ratings also take into account the firm's dependence on the performance of the real estate industry, which is the main consuming sector of ceramic wall tiles industry and its vulnerability to increasing gas and power prices, which is the major source of fuel. ICRA notes that despite steady operating margins, high remuneration and interest on capital has dented its net profit margin in FY14. ICRA also notes that Lexo being a partnership firm, any substantial withdrawal from the capital account would adversely impact the networth and thereby the capital structure. Nevertheless, the capital structure is comfortable at present. The ratings, however, favourably consider the long experience of the partners in the ceramic wall tile manufacture industry and the location advantage enjoyed by the firm giving it easy access to raw material. The ratings also consider the firm's presence in the digital wall tile-printing segment, which is likely to give a competitive edge over traditional wall tile printing players. M/s Lexo Ceramic is a partnership firm established in August 2008. The firm is engaged in the business of manufacturing ceramic wall tiles. The firm has fifteen partners while it is actively managed by three partners namely Mr. Jignesh Jalariya, Mr. Haresh Jalariya and Mr. Lalit Detroja. The firm has its manufacturing unit in Morbi, Gujarat and started commercial production in February 2010. Currently, the plant has an installed capacity of 6000 boxes per day and it operates in two shifts of 12 hours each. Recent Results: Lexo has reported a profit of INR0.3 crore on an operating income of INR21.3 crore for the year ending 31st March 2014. M.R.R. INFRATECH: CRISIL Assigns 'B' Rating to INR700MM Bank Loan ----------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term bank facility of M.R.R. Infratech Global Pvt. Ltd. (MRR). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term 700 CRISIL B/Stable Bank Loan Facility The rating reflects MRR's exposure to project implementation and demand risks and to risks related to cyclicality in the real estate industry. These rating weaknesses are partially offset by the extensive experience of MRR's promoters in the real estate business and the advantageous location of the company's project. Outlook: Stable CRISIL believes that MRR will continue to benefit from the extensive experience of its promoters' in the real estate industry over the medium term. The outlook may be revised to 'Positive' if MRR generates more-than-expected cash flows, aided by earlier- than-expected completion of its ongoing project and healthy occupancy rates, improving the company's financial risk profile. Conversely, the outlook may be revised to 'Negative' in case of time and cost overruns in the project, or lower-than-expected occupancy resulting in deterioration of financial risk profile. Set up in 2013, MRR is implementing a commercial real estate project in L.B.nagar, in Hyderabad. MRR is promoted by Mr. Ramreddy Mallareddy. MASSIMO ENTERPRISE: ICRA Puts B+ Rating on INR9.75cr Term Loan -------------------------------------------------------------- ICRA has assigned a long-term rating of [ICRA]B+ to the fund-based limits of Massimo Enterprise aggregating to INR9.75 Cr. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limit- 9.75 [ICRA]B+ assigned Term Loan The rating assigned is constrained by the execution risks associated with the project as well as high market risk on account of large unsold inventory. The rating also factors in the risk of high cash flow mismatches because the project funding structure incorporates advances from customer for funding the construction of the project. The rating also takes into consideration the vulnerability of the profitability to fluctuations in construction material & labour costs and cyclicality inherent in the real estate sector and the geographical concentration risk of the promoters, with all their projects being located in the same area. ICRA also notes that being a partnership firm, any substantial withdrawal from the capital account would impact the capital structure of the firm. The rating, however, favorably factors in the long standing experience of the firm's partners in real estate business, moderate funding risk and the favorable demand potential for commercial real estate projects in Surat. Massimo Enterprise (ME) was established in 2012 as a partnership firm based in Surat (Gujarat). The firm is engaged in construction of a commercial project viz. 'Massimo...A Business Bench' at Althan-Bhimrad in Surat. The firm is a part of the 'White Wings Group' which is engaged in many real estate development projects in Surat. The partners have almost a decade of experience in the real estate business through the White Wings group. MEHTA GOLD: CRISIL Assigns 'B+' Rating to INR120MM Cash Credit -------------------------------------------------------------- CRISIL has revoked the suspension of its rating on the long-term bank facilities of Mehta Gold (MG) and has assigned its 'CRISIL B+/Stable' rating to the bank facilities. CRISIL had, on June 30, 2014, suspended the rating as MG had not provided necessary information required to maintain a valid rating. MG has now shared the requisite information, enabling CRISIL to assign a rating to the bank facilities. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 120 CRISIL B+/Stable (Assigned; Suspension revoked) Proposed Long Term 70 CRISIL B+/Stable (Assigned; Bank Loan Facility Suspension revoked) The rating reflects MG's weak financial risk profile, marked by a high total outside liabilities to tangible net worth ratio and low interest coverage ratio, and the firm's exposure to intense competition in the jewellery business. These rating weaknesses are partially offset by the extensive experience of MG's promoter in the gold jewellery manufacturing and trading business. Outlook: Stable CRISIL believes that MG will continue to benefit over the medium term from its promoter's extensive industry experience. The outlook may be revised to 'Positive' if the firm's financial risk profile improves substantially, marked by better debt protection metrics most likely led by increased operating profitability, or if its capital structure improves significantly most likely because of large equity infusion. Conversely, the outlook may be revised to 'Negative' if MG's capital structure and liquidity weaken, most likely because of stretching of receivables or debt- funded capital expenditure. MG is a proprietorship firm set up in 2003 by Mr. Dilip Mehta, a first-generation entrepreneur. The firm manufactures gold ornaments and jewellery, and sells them in the wholesale market. MG operates only in the domestic market and sells to retailers based in South India and Maharashtra. MG reported a profit after tax (PAT) of INR1.2 million on net sales of INR377 million for 2013-14 (refers to financial year, April 1 to March 31), against a PAT of INR1.1 million on net sales of INR301 million for 2012-13. NAMRATA DEVELOPERS: CRISIL Reaffirms B Rating on INR140MM Loan -------------------------------------------------------------- CRISIL's ratings on the bank facility of Namrata Developers Pvt Ltd (NDPL) continue to reflect NDPL's high project risk, given that its project is in the nascent stage and has not yet been launched. The rating also factors in the company's exposure to intense competition and to risks and cyclicality inherent in Indian real estate industry. These rating weaknesses are partially offset by the promoters' extensive experience in the real estate sector, their funding support and established brand presence in Pune and surrounding areas. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Project Loan 140 CRISIL B/Stable (Reaffirmed) Outlook: Stable CRISIL believes that NDPL will benefit over the medium term from the promoters' extensive industry experience, and their funding support. The outlook may be revised to 'Positive' if the company improves its cash inflows with timely project completion, and enhanced customer bookings. Conversely, the outlook may be revised to 'Negative' if NDPL's liquidity is constrained by project time or cost overruns, or significantly low customer advances, resulting in lower cash inflows, or if the company simultaneously undertakes large debt funded projects. NDPL is a part of the Pune-based Namrata group. The company is a real estate developer, and has recently completed the Sakar a project in Talagaon Maharashtra. NDPL will commence its Namrata Weekender project in Kamshet (Maharashtra). NANAK HI-TECH: CRISIL Reaffirms D Rating on INR77.4MM Term Loan --------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Nanak Hi-Tech Pvt Ltd (NHT) continues to reflect delays by NHT in servicing its debt. The delays have been caused by the company's weak liquidity, with insufficient cash accruals to meet its term loan obligations. The rating also reflects NHT's limited track record of operations. These rating weaknesses are partially offset by the promoters' experience in the steel industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 70 CRISIL D (Reaffirmed) Term Loan 77.4 CRISIL D (Reaffirmed) Update NHT's operating income marginally decreased to INR367.1 million in 2013-14 (refers to financial year, April 1 to March 31) from INR379.7 million in 2012-13 on account of sluggish demand in the steel sector. Operating margin, however, improved to 5.1 per cent in 2013-14 from -3.0 per cent in the year before due to better realization. NHT has a weak financial risk profile on account small net worth and weak capital structure. The company has weak liquidity marked by working-capital-intensive operations as reflected in its gross current assets of 202 days as on March 31, 2014, and highly utilized bank limits. Further, company's net cash accruals generated have been inadequate to meet term debt repayments, thereby precipitating in to delay in debt servicing. CRISIL, therefore, believes that NHT's liquidity will remain weak over the near term on account of low net cash accruals generated by the business which are expected to be tightly matched with term debt repayments. NHT reported net profit of INR0.5 million on operating income of INR367.1 million for 2013-14 as against net loss of INR30.6 million on operating income of INR379.7 million for 2012-13. NHT was incorporated in 2008; the company is promoted by Jharkhand based businessmen Mr. Gunwant Singh Saluja and his son Mr. Harindar Singh Saluja. The company is engaged in trading of Mild Steel bars and sheets and the entire sales are made in the local markets (Jharkhand). RADHESHYAM INDUSTRIES: CRISIL Reaffirms B+ Rating on INR120M Loan ----------------------------------------------------------------- CRISIL's rating on the long-term bank facility of Radheshyam Industries (RI) continues to reflect RI's modest scale of operations in a highly fragmented industry. The rating also factors in the firm's exposure to intense competition and susceptibility to changes in government policies. These rating weaknesses are partially offset by the extensive experience of RI's partners in the cotton industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 120 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes that RI will continue to benefit over the medium term from its partner's extensive industry experience. The outlook may be revised to 'Positive' if the firm generates substantial accruals on the back of significant increase in its scale of operations, or reports sustained improvement in its operating profitability. Conversely, the outlook may be revised to 'Negative' if the firm's financial risk profile weakens, most likely driven by an increase in working capital requirements, or large debt-funded capital expenditure, or sizeable capital withdrawals by its partners. RI was set up in 2008 as a partnership firm by Mr. Barkatali Bhimjibhai, Mr. Amarshibhai Aambabhai, Mr. Samsudinbhai Sadrudinbhai, Mr. Akbarali Bhimjibhai, Mr. Yogeshbhai Dirubhai, Mr. Nagjibhai Aambabhai, Mr. Firojali Pyarlibhai, and Mr. Alkeshbhai Sirajbhai. The firm has a cotton ginning and pressing unit in Amreli (Gujarat). On a provisional basis, RI reported a profit after tax (PAT) of INR1.3 million on net sales of INR981.8 million for 2013-14 (refers to financial year, April 1 to March 31); it reported a PAT of INR1 million on net sales of INR1171.4 million in 2012-13. RENUKA OIL: CRISIL Reaffirms B- Rating on INR65MM Term Loan ----------------------------------------------------------- CRISIL's ratings continue to reflect Renuka Oil Industries' (ROI's) modest scale of operations, and below-average financial risk profile. These rating weaknesses are partially offset by the extensive industry experience of ROI's partners. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 2.5 CRISIL A4 (Reaffirmed) Cash Credit 20 CRISIL B-/Stable (Reaffirmed) Proposed Long Term 35 CRISIL B-/Stable (Reaffirmed) Bank Loan Facility Term Loan 65 CRISIL B-/Stable (Reaffirmed) Outlook: Stable CRISIL believes that ROI will benefit over the medium term from its partners' extensive industry experience. The outlook may be revised to 'Positive' if the firm improves its profitability and scale of operations, while it maintains its capital structure. Conversely, the outlook may be revised to 'Negative' if the firm undertakes any large debt-funded capital expenditure programme or reports delay in rental receipts, or significant pressure on its profitability, thus weakening its liquidity. Update ROI revenue increased to around INR128 million in 2013-14 (refers to financial year, April 1 to March 31) from INR84 million in 2012-13 backed by better industry scenario. The operating margin has also improved to 16 per cent in 2013-14 from 12 per cent in 2012-13 primarily because of rental income of about INR20 million from Food Corporation of India (FCI). The revenue is likely to remain stagnant in 2014-15 following an accident at the company's premises leading to closure of operations for four months. ROI's rental income from the warehouse segment is estimated to be just sufficient to meet its term debt repayments. ROI's gearing has improved to 2 times as on March 31, 2014 from around 2.61 times in the previous year backed by capital infusion of around INR3.6 million. The bank limits are highly utilised at an average 98 per cent for the 12 months ended March 2014. The cash credit limits are expected to be enhanced to around INR35 million in the near term which is expected to buffer the liquidity position. Renuka Oil, a partnership firm set up in 2005, extracts cotton seed oil, manufactures cotton seed oil cake, and processes cotton bales. The firm has a manufacturing facility in Khamgaon (Maharashtra). Renuka Oil has also set up a warehouse in Badnera (Maharashtra) from which it receives rental income. Mr. Sundersingh Juneja and Ms. Harbanskaur Juneja are the firm's partners. For 2013-14, Renuka Oil registered, on a provisional basis, a profit after tax (PAT) of INR12 million on revenue of INR128 million; the company registered a PAT of INR0.7 million on revenue of INR95 million for 2012-13. SATYAM GREEN: CRISIL Assigns B Rating to INR60MM Term Loan ---------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term bank facilities of Satyam Green Energy (SGE). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 60 CRISIL B/Stable The rating reflects SGE's exposure to project-related risks associated with the new solar power plant and expected weak financial risk profile and liquidity on account of expected low cash accruals vis-a-vis repayment obligations. These rating weaknesses are partially offset by funding support from the firm's promoter and his entrepreneurial experience. Outlook: Stable CRISIL believes that SGE will continue to benefit from entrepreneurial experience of its promoter and his committed funding support over the medium term. The outlook may be revised to 'Positive' in case of timely completion of the solar power project and better-than-expected ramp up in operations leading to higher cash accruals or sizable infusion of fresh funds by the promoter. Conversely, the outlook may be revised to 'Negative' in case of time or cost overrun in the project or lower than expected ramp up in operations leading to deterioration in financial risk profile and liquidity. SGE, (a proprietoriship firm) was promoted by Mr Sanjay Joshi for setting up a solar power project in Solapur (Maharashtra). The 1.1-megawatt project is expected to be completed by December 2014 and is expected to begin operations by January 2015. SAYONA CERAMIC: CRISIL Reaffirms B Rating on INR39.3MM Term Loan ---------------------------------------------------------------- CRISIL's ratings on the bank loan facilities of Sayona Ceramic (Sayona) continue to reflect Sayona's modest scale of operations in a highly competitive industry, its large working capital requirements, and the susceptibility of its operating margin to raw material price volatility and low bargaining power. These rating weaknesses are partially offset by the benefits that Sayona derives from its promoters' extensive experience in the ceramic industry, and the advantageous location of its facility in Morbi (Gujarat), marked by easy access to raw materials and skilled labour, which is expected to result in healthy operating efficiencies. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 1.6 CRISIL A4 (Reaffirmed) Cash Credit 30 CRISIL B/Stable (Reaffirmed) Term Loan 39.3 CRISIL B/Stable (Reaffirmed) Outlook: Stable CRISIL believes that Sayona will continue to benefit over the medium term from its favourable location and its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the firm achieves significant revenue growth or profitability resulting in large cash accruals. Conversely, the outlook may be revised to 'Negative' if Sayona achieves low revenue and profitability, or if its working capital requirements are larger than expectations, weakening its financial risk profile. Sayona, established in December 2010 and based in Morbi, has set up a facility to manufacture ceramic-glazed wall tiles. The project commenced commercial production in October 2011. Sayona incurred a net loss of INR1.3 million on net sales of INR92.6 million for 2013-14 (refers to financial year, April 1 to March 31), against profit after tax of INR2.7 million on net sales of INR119.5 million for 2012-13. SHYAM GRAMODYOG: CRISIL Assigns B Rating to INR10MM Bank Loan ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the bank facilities of Shyam Gramodyog Sansthan (SGS). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term 10 CRISIL B/Stable Bank Loan Facility The rating reflects the society's below-average financial risk profile marked by low networth. The rating also reflects the small scale of, and not-for-profit nature of operations. These rating weaknesses are partially offset by the society's track record of developed relations with government authorities for free-meal assignments. Outlook: Stable CRISIL believes that SGS's business risk profile will remain constrained on account of its small scale of operations. The outlook may be revised to 'Positive' in case the firm registers significant improvement in its scale of operations, diversification of revenue profile and/or timely collection of receivables leading to improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' in case the firm registers a decline in its sales or profitability or if its working capital requirements are larger than expected, leading to pressure on its financial risk profile. SGS is organized as a not-for-profit society and is located at Charra in Aligarh district of Uttar Pradesh. The society provides free meals under the mid-day meal scheme and other government mandated schemes. SGS reported a net surplus of INR0.19 million on an operating income of INR21.4 million for 2013-14, against a net surplus of INR0.09 million on an operating income of INR19.4 million for 2012-13. SOMANIL CHEMICALS: CRISIL Reaffirms B Rating on INR45MM Cash Loan ----------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Somanil Chemicals Ltd (SCL) continues to reflect SCL's below-average financial risk profile marked by high gearing and weak debt protection metrics. The rating also factors in the company's susceptibility to intense competition and its large working capital requirements. These rating weaknesses are partially offset by the extensive experience of SCL's management in the pesticides business. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 45 CRISIL B/Stable (Reaffirmed) Letter of Credit 40 CRISIL B/Stable (Reaffirmed) Term Loan 4.5 CRISIL B/Stable (Reaffirmed) Outlook: Stable CRISIL believes that SCL will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if SCL reports significant revenue and better profitability margins, while improving its financial risk profile. Conversely, the outlook may be revised to 'Negative' if SCL's working capital cycle deteriorates, or if the company undertakes any large debt-funded capital expenditure programme. SCL, incorporated in 1999, manufactures pesticide formulations, including insecticides, herbicides, and fungicides, which have varied applications in the agriculture industry. The company also trades in small quantities of pesticides in the domestic market. It is managed by Mr. Satnaryan Mittal and his relatives, Mr. Munesh Gupta and Mr. Jai Prakash Garg. SREE SUBHALAKSHMI: CRISIL Puts B+ Rating on INR44MM Term Loan ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Sree Subhalakshmi Spinning Mills (SSSM). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 44 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 7.9 CRISIL B+/Stable Bank Guarantee 3.1 CRISIL A4 Cash Credit 25 CRISIL B+/Stable The ratings reflect SSSM's modest scale of operations in the intensely competitive spinning industry, and its below-average financial risk profile marked by modest net worth. These rating weaknesses are partially offset by the extensive experience of SSSM's promoters in the textile industry. Outlook: Stable CRISIL believes SSSM will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the firm significantly increases its scale of operations and profitability, or improves its working capital management, resulting in a better financial risk profile. Conversely, the outlook may be revised to 'Negative' if the firm records a decline in its accruals or undertakes a large debt- funded capital expenditure programme, weakening its financial risk profile. Established in 2004 as a partnership firm and based in Tirupur (Tamil Nadu), SSSM manufactures cotton yarn. Its operations are managed by Mr. Manickam. SSSM reported a net profit of INR0.31 million on sales of INR151.93 million for 2013-14 (refers to financial year, April 1 to March 31), against a net profit of INR0.11 million on sales of INR120.37 million for 2012-13. SRI SRINIVASA: ICRA Upgrades Rating on INR98.95cr Loan to B- ------------------------------------------------------------ ICRA has revised the long term rating assigned to the INR104.25 crore bank facilities of Sri Srinivasa Spintex (India) Limited to [ICRA] B- from [ICRA]D assigned earlier. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based limits 98.95 [ICRA]B- (revised from [ICRA]D) Non Fund based 2.47 [ICRA]B- (revised from Limits [ICRA]D) Unallocated limits 2.83 [ICRA]B- (revised from [ICRA]D) The rating revision factors in the regularization in the payments of debt obligations in the recent past following completion of the ongoing capex. The company has been undertaking continuous capex since its inception in 2008 and there were frequent delays in the past on account of cash flow mismatches arising due to deployment of internal accruals for capacity expansion and non timely infusion of funds by the promoters. SSSIL has completed the last capex of INR21 crore towards the open ended spinning division. The unit however commenced operations after significant delays in October 2014. The debt repayment pertaining to this capex started before the commencement of operations which has been serviced through unsecured loans from the promoters. After stabilization of the spinning divisions of SSSIL (FY14 being the first full year of operations), and scaling up of the open ended spinning division, the internal cash generation is expected to be adequate to service the debt obligations going forward. The coverage indicators however are expected to remain weak given the weak capital structure and moderate profitability margin which is expected to be under pressure owing to the current adverse environment for spinners with declining demand of yarn in the export market and tumbling yarn prices. Further rating remains constrained on account of limited experience of promoters in spinning industry, moderate spindle capacity restricting economies of scale for SSSIL, commoditized nature of the product and highly fragmented industry that provides low pricing power to the company. The ratings however takes comfort from the location advantage of SSSIL's spinning mill resulting in ease of raw material availability and cost savings in logistics along with the interest and power subsidy eligibility of SSSIL for all its spinning divisions. SSSIL, incorporated in July 2006, is primarily engaged in producing cotton yarn of medium counts viz. 32s, 40s, etc. Based at Tadepalligudem in West Godavari district of Andhra Pradesh, SSSIL started commercial production of yarn in August 2008 with 4,000 spindles which was increased gradually to 18,000 spindles in January 2009 to 42,840 spindles in January 2011 and 55,440 spindles in June 2012. Recently the company has also commenced operations of Open Ended spinning division with 1380 rotors in October 2014. Recent Results SSSIL has, for the year ended March 31, 2014, reported an operating income of INR143.36 crore and a profit before tax of INR2.74 crore as against INR120.79 crore and INR2.77 crore respectively for FY13 SUPERSONIC TURNERS: CRISIL Cuts Rating on INR138.6MM Loan to D -------------------------------------------------------------- CRISIL has downgraded its ratings on the bank facilities of Supersonic Turners Pvt Ltd (STPL) to 'CRISIL D/CRISIL D' from 'CRISIL BB-/Stable/CRISIL A4+'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 138.6 CRISIL D (Downgraded from 'CRISIL BB-/Stable') Letter of Credit 30 CRISIL D (Downgraded from 'CRISIL A4+') Term Loan 25 CRISIL D (Downgraded from 'CRISIL BB-/Stable') The rating downgrade reflects delays in servicing of debt by STPL and the irregularity in the company's cash credit account lasting for around 30 days as on October 29, 2014, driven by its weak liquidity. STPL's liquidity is stretched on account of its large working capital requirements, marked by large inventory of about 286 days (Rs.244.2 million) and debtors of about 90 days (Rs.90.3 million) as on March 31, 2014; the inventory has increased from 162 days (Rs.204.0 million) as on March 31, 2013. STPL's liquidity was also affected by decline in its revenue over the 12 months ended March 31, 2014, resulting in lower cash accruals. CRISIL believes that STPL's liquidity will remain stretched over the medium term because of its large working capital requirements and low cash accruals. STPL is exposed to risks related to large working capital requirements, small scale of operations, and high customer concentration in revenue. However, the company benefits from its promoters' extensive experience in the bearing rings industry. STPL manufactures finished turned rings and roller bearings. The company manufactures bearing rings with diameter of 30 millimetres (mm) to 62 mm. About 70 per cent of the company's rings are used in the manufacture of bearings for two-wheelers. STPL makes around 60 per cent and 25 per cent of its sales to SKF India and FAG Bearings India Ltd, respectively. TAURUS POWERTRONICS: CRISIL Rates INR40MM Cash Credit at 'B+' ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Taurus Powertronics Pvt Ltd (TPPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term 20 CRISIL B+/Stable Bank Loan Facility Proposed Bank 20 CRISIL A4 Guarantee Bank Guarantee 40 CRISIL A4 Cash Credit 40 CRISIL B+/Stable The rating reflects modest scale and working capital intensive operations and below average financial risk profile marked by small networth and high external indebtedness. These rating weaknesses are partially offset by extensive industry experience of promoters and established relationships with customers. For arriving at the ratings, CRISIL has consolidated the business and financial profiles of TPPL and Taurus Powertronics Systems (TPS) on account of common promoters, same line of business and financial fungibility. Outlook: Stable CRISIL expects TPPL will continue to benefit from the promoters extensive experience in the industry. The outlook may be revised to 'Positive' in case TPPL registers significant increase in its scale of operation and its working capital management leading to improvement in external indebtedness. Conversely, the outlook may be revised to 'Negative' if TPPL's financial risk profile deteriorates on account of lower-than-expected cash accruals; or larger-than-expected debt for working capital requirements or if the company undertakes a large debt-funded capex. Mr. Makaram Narasimhan Ravinarayan, a first generation entrepreneur, started Taurus Powertronics Systems in 1991, as a partnership firm alongwith his wife. In 2007, the promoters setup TPPL, with a view to transfer entire business of TPS to the company. However, due to delays in getting TPPL registered as a vendor with its customers, the promoters continued to operate both entities. From 2014-15 onwards, only TPPL is undertaking new contracts, and TPS is defunct. The company is engaged in manufacturing of test and measurement instruments for power sector. The company is based out of Bangalore and has branch offices in Delhi, Kolkata and Mumbai. ULTRA POWER: ICRA Reaffirms C+ Rating on INR16.62cr LT Loan ----------------------------------------------------------- ICRA has reaffirmed the long-term rating of [ICRA]C+ assigned to the INR16.62 crore (Revised from 19.50) fund based limits and INR10.88 crore (Revised from 8.00) unallocated limits of Ultra Power Projects Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Fund Based Limits 16.62 [ICRA]C+ Reaffirmed Long Term- Unallocated 10.88 [ICRA]C+ Reaffirmed The reaffirmation of the ratings continue to take into account the absence of firm fuel supply arrangements for UPPPL's 7.5 MW Industrial Waste based power plant located in Telangana and the consequent volatility in PLF (Plant Load Factor) levels as reflected in the reduction in power generation due to shut down of operations for four months in FY14. The rating also factors in the fixed power tariff as per the twenty-year Power Purchase Agreement (PPA) with Transmission Corporation of Telangana Limited (TSTRANSCO) limiting the company's ability to pass through any increase in raw material prices. Further, UPPPL is exposed to counter party risk given that it sells its entire power output to TSTRANSCO. The rating is further constrained by the weak financial profile of the company as reflected in accumulated losses resulting into poor coverage indicators with OPBIDTA/Interest and Finance charges at 0.92 times and NCA/Total debt at -0.13% as on 31st March 2014. The rating however draws comfort from the presence of a long term PPA with assured off take of power generated since commencement of its commercial operations in October, 2010. UPPPL operates an Industrial Waste based power plant with an installed capacity of 7.5 MW located in Yacharam, Ranga Reddy District in Telangana. The power generated from this plant which began its commercial operations in October 2010 is sold to TSTRANSCO under a twenty-year PPA. UPPPL is a part of the "Ultra" group of companies which have interests in manufacture and supply of defence equipment for the Indian Navy under their group company Ultra Dimensions Private Limited. The group also undertakes pipe fabrication works, annual contracts for ship maintenance for the Navy. Recent Results As per audited financials for FY 2014, UPPPL reported an operating income of INR12.99 crore with a net loss of INR4.38 crore as against INR14.46 crore of operating income with net loss of INR6.42 crore in FY13. VAISHNODEVI OIL: CRISIL Reaffirms B+ Rating on INR85MM Cash Loan ---------------------------------------------------------------- CRISIL rating on the long-term bank facility of Vaishnodevi Oil Seeds Processing Industries (VOSPI) continues to reflect VOSPI's below-average financial risk profile marked by high gearing and weak debt protection metrics. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 85 CRISIL B+/Stable (Reaffirmed) Proposed Long Term 15 CRISIL B+/Stable (Reaffirmed) Bank Loan Facility The rating also reflects the firm's modest scale of operations, and its vulnerability to volatility in raw material prices and to changes in government policies. These rating weaknesses are partially offset by the extensive experience of VOSPI's promoters in the edible oil industry and the firm's proximity to raw material sources. Outlook: Stable CRISIL believes that VOSPI will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the firm increases its revenue and improves its profitability significantly, while improving its financial risk profile. Conversely, the outlook may be revised to 'Negative' in case of deterioration in VOSPI's financial risk profile, particularly its liquidity, most likely because of a stretch in its working capital cycle, low accruals, or large debt-funded capital expenditure (capex). Update In 2013-14 (refers to financial year, April 1 to March 31), VOSPI's revenue declined by around 14 per cent year-on-year to INR487 million on account of reduced revenue from trading and a 15 per cent fall in mustard seed prices in the last quarter of 2013- 14. The firm's operating margin, however, improved to around 3.0 per cent in 2013-14 from 2.2 per cent in 2013-14 because of decline in revenue from the trading segment. VOSPI generated revenue of around INR290 million till August 2014 in 2014-15 and is likely to generate revenue of around INR600 million for the full year. VOSPI's financial risk profile remains weak, marked by high gearing, small net worth, and average debt protection indicators. The firm's gearing was 2.37 times and net worth was around INR35 million as on March 31, 2014. Its net cash accruals to total debt and interest coverage ratios were 0.05 times and 1.7 times, respectively, for 2013-14 on account of low operating margin. VOSPI is likely to generate cash accruals of around INR430 million against nil term debt obligations in 2014-15. The firm has moderate working capital requirements, as reflected in its gross current assets of 88 days, on account of moderate receivables and inventory of around 35 days and 47 days, respectively, as on March 31, 2014. The firm's working capital requirements are largely funded through short-term debt and funds from the promoters by way of capital infusion and unsecured loans. VOSPI utilised its bank lines moderately, at an average of 84 per cent, over the 12 months through June 2014. The firm has no capex plans. VOSPI, set up in 2006, is promoted by Mr. Praful Kumar Thakkar and his brother Mr. Deepak Kumar Thakkar. The firm manufactures unrefined mustard oil, and also sells its by-product, mustard de- oiled cakes. Its seed crushing unit is in Banaskantha (Gujarat) and has installed capacity of 250 tonnes per day. VOSPI, on a provisional basis, reported a profit after tax (PAT) of INR2.9 million on net sales of INR487 million for 2013-14; it had reported a PAT of INR2.7 million on net sales of INR562 million for 2012-13. VARDHMAN CABLES: CRISIL Reaffirms B+ Rating on INR20MM Cash Loan ---------------------------------------------------------------- CRISIL's ratings on the bank facilities of Vardhman Cables and Conductors (VCC) continue to reflect the firm's weak financial risk profile, marked by small net worth, high gearing, and weak debt protection metrics, and its modest scale of operations with exposure to supplier concentration risks. These rating weaknesses are partially offset by the extensive experience of VCC's promoters in the cables and conductors industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 70 CRISIL A4 (Reaffirmed) Bill Discounting 210 CRISIL A4 (Reaffirmed) under Letter of Credit Cash Credit 20 CRISIL B+/Stable (Reaffirmed) Letter of Credit 90 CRISIL A4 (Reaffirmed) Outlook: Stable CRISIL believes that VCC will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the firm reports significant improvement in its financial risk profile, most likely because of larger-than-expected cash accruals along with efficient working capital management. Conversely, the outlook may be revised to 'Negative' if VCC's financial risk profile weakens further, most likely because of lower-than-anticipated cash accruals, or larger-than-expected working capital requirements or debt-funded capital expenditure. VCC, set up in 1993, manufactures cables and conductors. Under the conductor segment, the firm manufactures steel reinforced aluminium conductors and aluminium conductors of various measurements; its manufacturing unit is in Kolhapur district (Maharashtra). YAMIR PACKAGING: CRISIL Reaffirms B- Rating on INR80MM Cash Loan ---------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Yamir Packaging Pvt Ltd (YPPL) continues to reflect YPPL's weak financial risk profile marked by high gearing, weak debt protection metrics, and small net worth. The rating also factors in the company's small scale of operations in a fragmented industry. These rating weaknesses are partially offset by the extensive industry experience of YPPL's promoters. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 80 CRISIL B-/Stable (Reaffirmed) Proposed Long Term 2.5 CRISIL B-/Stable (Reaffirmed) Bank Loan Facility Rupee Term Loan 77.5 CRISIL B-/Stable (Reaffirmed) Outlook: Stable CRISIL believes that YPPL will continue to benefit over the medium term from its established relationship with reputable customers. CRISIL, however, also believes that YPPL's financial risk profile will remain weak, marked by high gearing and weak debt protection metrics, over the same period.. The outlook may be revised to 'Positive' if YPPL registers better-than-expected sales and operating margin, leading to higher cash accruals and hence, to significant improvement in its capital structure. Conversely, the outlook may be revised to 'Negative' if YPPL's liquidity is further constrained by increase in its working capital requirement, or by lower-than-expected sales due to continued demand pressure. Update YPPL's net sales for 2013-14 (refers to financial year, April 1 to March 31), at INR605.3 million, were largely in line with CRISIL's expectations.. However, due to higher raw material costs and company's inability to pass on the same to its customers resulted in lower than expected profitability and is expected to remain around 10 per cent over the medium term. YPPL's working capital requirement is in line with previous years, with debtor and inventory days at 80 and 45 days respectively during 2013-14. The company was able to get higher credit from its supplier, which led to increase in its creditor days to 121 days during 2013-14 from 68 days in the past and hence partially supporting its incremental working capital requirements. Its bank limits are utilised moderately with average utilisation of bank lines at 90 per cent for the 12 months ended March 2014 owing to moderate working capital requirements. YPPL's gearing remained high, around 3 times, as on March 31, 2014, due to the company's debt-funded capital expenditure and working capital requirements. Over the medium term, the gearing is expected to reduce to 1.5 to 1.6 times due to repayment of term loans. The company has stretched liquidity reflected in accruals expected to remain tightly matched against its repayment obligations of INR46 million for 2014-15. YPPL reported a net profit of INR6.9 million on net sales of around INR605 million for 2013-14, against a net profit of INR7.9 million on net sales of INR548 million for 2012-13. Incorporated in 2000, YPPL manufactures cartons that are used in the food, pharmaceutical, and consumer goods industries; its facility is in Bharuch (Gujarat). ZODIAC INFRA: CRISIL Reaffirms B- Rating on INR66MM Cash Credit --------------------------------------------------------------- CRISIL's rating on the long-term bank facility of Zodiac Infrastructures Pvt Ltd (ZIPL) continues to reflect ZIPL's exposure to risks inherent in the iron ore trading industry and to geographical and customer concentration risks, and its weak financial risk profile. These rating weaknesses are partially offset by the experience of ZIPL's promoters in iron ore trading. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 66 CRISIL B-/Stable (Reaffirmed) Outlook: Stable CRISIL believes that ZIPL will continue to benefit over the medium term from its promoters' industry experience. The outlook may be revised to 'Positive' if the company registers significant increase in its revenue and profitability, leading to substantial accruals, and consequently, to better liquidity. Conversely, the outlook may be revised to 'Negative' if ZIPL registers low revenue and profitability, or if its working capital cycle lengthens, resulting in weakening of its financial risk profile. Update ZIPL reported turnover of INR85.8 million for 2013-14 (refers to financial year, April 1 to March 31), against INR71.6 million for 2012-13. The turnover increased mainly because of higher volumes. The company reported operating loss of INR 8.4 million for 2013- 14, the loss being incurred due to increase in purchase price of iron ore fines, which the company could not pass on to customers. ZIPL's operations are highly working capital intensive, marked by gross current assets (GCAs) of 745 days, driven by large receivables of 221 days and inventory of 193 days, as on March 31, 2014. ZIPL funds part of its working capital requirements through credit from suppliers; it had creditors of 315 days as on March 31, 2014. Its bank lines were utilised at an average of 90 to 95 per cent over the 12 months through September 2014. ZIPL's financial risk profile is marked by weak capital structure and weak debt protection metrics, driven by accumulated losses that have eroded its net worth completely. The company's outstanding debt of INR67 million entirely comprises short-term bank borrowings. For 2013-14, ZIPL reported a net loss of INR8.4 million on net sales of INR85.8 million; the company had reported a profit after tax of INR0.5 million on net sales of INR71.6 million for 2012-13. ZIPL was originally set up as a partnership firm in 2005 that was reconstituted as a private limited company in 2008. The company trades in iron ore fines. It also operates a jewellery store in Bhubaneswar and deals in gold and diamond-studded jewellery manufactured by Gitanjali Gems Ltd. ZIPL is promoted by Mr. Miza Riaz Beg and his family. * INDIA: Rajan Seeks More Power for India's Banks Over Defaulters ----------------------------------------------------------------- Sandrine Rastello and Anoop Agrawal at Bloomberg News report that Reserve Bank of India Governor Raghuram Rajan said banks should have more power to recoup money from defaulters to rebalance a system that's skewed in favor of large companies. Bloomberg relates that Mr. Rajan said the Indian credit system is unhealthy and rests on an uneven sharing of risks and profits that overprotects big borrowers and forces state-controlled banks to absorb losses in downturns without profiting in good times. "The sanctity of the debt contract has been continuously eroded in India in recent years, not by small borrower but by the large borrower," Bloomberg quotes Mr. Rajan as saying at the Institute of Rural Management Anand, in India's western state of Gujarat. "This has to change if we are to get banks to finance the enormous infrastructure needs and industrial growth that this country aims to attain." Bloomberg says Mr. Rajan has proposed penalties and incentives to get lenders to move faster in containing soured debt in an effort to bolster the financial system at a time of slower economic growth. In his remarks, he took a swipe at the whole system, which deprives banks of money they could recover and prompts them to charge a premium for business loans, Bloomberg relays. "When the large promoter defaults willfully or does not cooperate in repayment to the public sector bank, he robs each one of us taxpayers, even while making it costlier to fund the new investment our economy needs," Mr. Rajan, as cited by Bloomberg, said. Kingfisher Airlines Ltd., whose valuation peaked at INR39 billion ($631 million) in 2007, topped a list of 406 defaulters facing legal action from banks, published in May by the All India Bank Employees' Association, Bloomberg discloses. Other large companies have restructured loans in the past two years, including Lanco Infratech Ltd. and Hotel Leelaventure Ltd., which are both valued at more than INR10 billion, according to Bloomberg. Bloomberg relates that restructured loans at Indian lenders will rise by INR1 trillion from end-September to a record INR4.7 trillion by March 2015, according to India Ratings & Research Pvt., Fitch Ratings's local unit. That would take stressed assets, including soured loans, to a 15-year high of 14 percent of advances from 9.8 percent a year earlier, Bloomberg says. According to Bloomberg, Mr. Rajan said the central bank is looking into allowing lenders more flexibility for debt restructuring. The process gives borrowers a moratorium on payments, longer maturities and lower interest rates, while allowing banks to prevent an increase in non-performing assets, the report adds. ================= I N D O N E S I A ================= BAKRIE TELECOM: Fitch Withdraws 'Restricted Default' IDR -------------------------------------------------------- Fitch Ratings has withdrawn its ratings on Indonesia-based PT Bakrie Telecom (BTEL) because the company has chosen to stop participating in the rating process. BTEL is currently going through a restructuring process and without further participation; Fitch will no longer have sufficient information to maintain the ratings. Accordingly, the agency will no longer provide ratings or analytical coverage for BTEL. Before withdrawal, BTEL's ratings were: -- Long-term Foreign-Currency Issuer Default Rating (IDR) at 'Restricted Default' (RD). -- Long-term Local-Currency Issuer Default Rating (IDR) 'RD' -- USD380m May 2015 bond rating of 'C'/ 'RR5'. Fitch believes that the company is currently in the process of restructuring its USD380m bond and obligations to trade creditors. Fitch understands that the company has stopped paying most of its trade creditors and an Indonesian court has asked the company to restructure its commitments to creditors by Dec. 9, 2014. BTEL has stopped servicing its USD380m notes due May 2015 and some of the bond holders have sued the company in a New York court. Fitch also understands that BTEL has divested its spectrum holding - its most important asset - to PT Smartfren Telecom Tbk (CCC(idn)) for a consideration of one billion Smartfren's shares (or 5.6% of Smartfren's diluted equity). BTEL is now operating as a mobile virtual network operator (MVNO) and is leasing spectrum from Smartfren to provide services to its remaining customers. The Indonesian government has already passed a decree ordering the transaction. =============== M A L A Y S I A =============== MALAYSIA AIRLINES: Trade Unions Get Ultimatum --------------------------------------------- Yvonne Tan and Izwan Idris at The Star Online report that the proposed law governing Malaysia Airlines Bhd, the new company that will take over Malaysian Airlines System Bhd, spells out clearly the terms that ensure unions and associations come to the negotiating table within a stipulated timeframe or risk losing out in any decision-making. According to the bill tabled in Parliament on November 26, any decision made during a meeting between MAB, the trade unions and associations present at the meeting shall be valid and binding, The Star relates. MAB is "not a successor employer", the bill, as cited by The Star, stated. According to the Star, the bill said trade unions and associations are to be duly represented in a meeting, which is the way all matters are to be discussed or negotiated. "If after half-an-hour from the time appointed for a meeting, not all of the trade unions and association are duly represented, the meeting shall be adjourned to the subsequent week on the same day and time and at the same venue without any further notice," it said. If the day is a public holiday, the adjourned meeting shall be reconvened on the next working day, according to the bill cited by The Star. "When the adjourned meeting is reconvened on the new day, the non- attendance by any trade union or association shall not prevent the meeting from proceeding and any decisions made here will be valid and binding," it said. The Star notes that dealing with the unions had been one of the key challenges that Khazanah Nasional Bhd, the controlling shareholder of MAS, faced. "It is estimated that the new company will require a workforce of about 14,000," Khazanah said in its recovery plan for the airline on Aug 29, The Star relays. The national carrier currently employs about 20,000 people, the report notes. According to the report, the national carrier's biggest in-house union, the Malaysia Airlines System Employees Union, was reported to be in favour of an alternative restructuring plan that it claimed would help save jobs. Other unions claiming to represent MAS workers include the Malaysia Airlines Employees Union Peninsular Malaysia, National Union of Flight Attendants Malaysia and the Malaysia Airlines Pilot Association, the report notes. The Star says MAB is the new company established under the Malaysian Airline System Bhd (Administration) Act 2014 to take over the role of the national airline and to operate it as a commercial enterprise. The report says the bill gives the new company the powers and immunity to renegotiate terms and contracts with its unions, suppliers, partners and contractors. This is "critical to ensure the continuity, profitability and sustainability" of the national carrier, the Bill, as cited by The Star, said. The legislation will provide an "effective, efficient and seamless means" to transfer "the business, property, rights, liabilities and affairs" of MAS to the new company, The Star says. The bill, once passed, will apply for a period of five years, or until the listing of MAS on Bursa Malaysia, the report adds. * * * As reported by the Troubled Company Reporter - Asia Pacific on September 1 2014, The Associated Press said Malaysia Airlines will cut 6,000 workers as part of a $1.9 billion overhaul announced on August 29 to revive its damaged brand after being hit by double passenger jet disasters. In March, Malaysia Airlines Flight 370 veered far off course while en route from Kuala Lumpur to Beijing, and went missing with 239 people on board, said the report. In July, 298 people were killed when Flight 17 was blasted out of the sky as it flew over an area of eastern Ukraine controlled by pro-Russian separatists. These tragedies have scarred the airline's brand, once associated with high-quality service, AP added. Headquartered in Selangor, Malaysia, state-owned Malaysia Airlines -- http://www.malaysiaairlines.com/-- engages in the business of air transportation and the provision of related services. Last year, Malaysia Airlines reported a net loss of MYR1.17 billion ($359 million), its third consecutive year of net losses, according to The Wall Street Journal. In a filing to the stock exchange, Malaysian Airline System Bhd (MAS) said its third-quarter net loss widened to MYR576.1 million ($170.39 million) from MYR375.4 million in the same period a year earlier, Reuters disclosed. This is the worst quarterly loss for the airline since October-December 2011. ==================== N E W Z E A L A N D ==================== OUTGRO FERTILISER: Directors Under Investigation ------------------------------------------------ Jono Galuszka at Manawatu Standard reports that the directors of a group of Dannevirke companies involved in a fertiliser business that went into receivership with just NZ$86 on hand, and which still owes millions of dollars to creditors, may have breached directors' duties in their time in charge of the business. Six companies related to fertiliser business Outgro were placed into receivership in May 2013 with NZ$3.5 million of debts, the report discloses. At the time it had NZ$8.7 million in assets, including NZ$4.3 million worth of vehicles and a NZ$1.15 million helicopter. However, it had just NZ$86 in the bank, the Manawatu Standard relates. According to Manawatu Standard, the latest receivers' report showed not too much has changed in a year of receivership. Manawatu Standard says ANZ Bank was owed NZ$2.6 million and unsecured creditors are owed NZ$533,000 -- the same amounts from a year ago. No more money has been recovered, as all the companies' assets had been sold in June. Manawatu Standard relates that receivers David Ruscoe and Richard Simpson, of Grant Thornton, indicated more money could be available in their report from six months ago, writing that they were investigating the directors of the companies for a "possible breach of directors' duties". In their latest report, they said they were still investigating claims against the companies for a possible breach of directors' duties, Manawatu Standard relays. Outgro is still trading, with Jim McMillan -- who is listed as one of the directors of the companies in receivership -- previously telling the Manawatu Standard he planned to buy the business back from the receivers. Manawatu Standard notes the business was founded by Mr. McMillan who, according to Outgro's website, grew up in Pongaroa. Outgro started in Dannevirke, before expanding to have offices in Invercargill and Hamilton. But failure to meet its loan repayment obligations saw the business' related companies put into the hands of receivers, Manawatu Standard reports. Outgro Fertiliser Ltd is a New Zealand-based fertiliser company. TE RIMU: Still Owes NZ$1.28 Million to Creditors ------------------------------------------------ Jono Galuszka at Manawatu Standard reports that creditors have been left more than NZ$1 million out of pocket after a Wairarapa farm run by a Dannevirke farmer went under because of a lack of investment from its owners. Te Rimu Station Ltd, directed by Shaun Currie, was put into receivership and liquidation last year owing NZ$7 million. Among the creditors were the Bank of New Zealand and Rabobank, the report says. According to Manawatu Standard, receivers said the business needed urgent investment from shareholders, but was not given it. That saw the Bank of New Zealand call in receivers to try to get its money back, the report relates. The receivership ended this year, with the banks still NZ$1.28 million out of pocket, Manawatu Standard discloses. Manawatu Standard, citing the Receivers' final liquidation report, recently released, relates that the Official Assignee said they had investigated and searched databases associated with the company. However, they were unable to find more money for creditors. =============== X X X X X X X X =============== * BOND PRICING: For the Week Nov. 24 to Nov. 28, 2014 ----------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRALIA --------- ANTARES ENERGY LTD 10.00 10/30/23 AUD 2.01 CRATER GOLD MINING 10.00 08/18/17 AUD 23.50 KBL MINING LTD 10.00 08/05/16 AUD 0.22 MIDWEST VANADIUM P 11.50 02/15/18 USD 11.00 MIDWEST VANADIUM P 11.50 02/15/18 USD 10.00 STOKES LTD 10.00 06/30/17 AUD 0.38 TREASURY CORP OF V 0.50 11/12/30 AUD 57.72 CHINA ----- CHANGCHUN CITY DEV 6.08 03/09/16 CNY 71.00 CHANGCHUN CITY DEV 6.08 03/09/16 CNY 70.85 CHANGZHOU INVESTME 5.80 07/01/16 CNY 70.31 CHANGZHOU INVESTME 5.80 07/01/16 CNY 70.84 CHANGZHOU SMALL & 6.18 11/29/14 CNY 60.03 CHINA GOVERNMENT B 1.64 12/15/33 CNY 69.06 CHINA NATIONAL ERZ 5.65 09/26/17 CNY 61.87 DANYANG INVESTMENT 6.30 06/03/16 CNY 71.06 GUANGXI XINFAZHAN 5.75 11/30/14 CNY 40.00 HEILONGJIANG HECHE 7.78 11/17/16 CNY 72.29 HEILONGJIANG HECHE 7.78 11/17/16 CNY 72.00 JIANGSU LIANYUN DE 7.85 07/22/15 CNY 71.39 KUNSHAN ENTREPRENE 4.70 03/30/16 CNY 70.06 KUNSHAN ENTREPRENE 4.70 03/30/16 CNY 69.53 NANJING PUBLIC HOL 5.85 08/08/17 CNY 65.34 NANTONG STATE-OWNE 6.72 11/13/16 CNY 72.02 NANTONG STATE-OWNE 6.72 11/13/16 CNY 71.60 NINGDE CITY STATE- 6.25 10/21/17 CNY 61.55 QINGZHOU HONGYUAN 6.50 05/22/19 CNY 51.32 QINGZHOU HONGYUAN 6.50 05/22/19 CNY 51.81 WUXI COMMUNICATION 5.58 07/08/16 CNY 50.50 WUXI COMMUNICATION 5.58 07/08/16 CNY 50.49 YANGZHOU URBAN CON 5.94 07/23/16 CNY 70.80 YANGZHOU URBAN CON 5.94 07/23/16 CNY 71.08 YIYANG CITY CONSTR 8.20 11/19/16 CNY 73.00 ZHENJIANG CITY CON 5.85 03/30/15 CNY 70.20 ZHENJIANG CITY CON 5.85 03/30/15 CNY 70.25 ZHUCHENG ECONOMIC 7.50 08/25/18 CNY 50.01 ZIBO CITY PROPERTY 5.45 04/27/19 CNY 60.05 ZOUCHENG CITY ASSE 7.02 01/12/18 CNY 72.29 INDONESIA --------- BERAU COAL ENERGY 7.25 03/13/17 USD 57.20 BERAU COAL ENERGY 7.25 03/13/17 USD 56.33 DAVOMAS INTERNATIO 11.00 12/08/14 USD 19.50 DAVOMAS INTERNATIO 11.00 12/08/14 USD 19.50 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 33.38 CORE EDUCATION & T 7.00 05/07/15 USD 9.50 COROMANDEL INTERNA 9.00 07/23/16 INR 15.42 GTL INFRASTRUCTURE 3.03 11/09/17 USD 30.17 INCLINE REALTY PVT 10.85 04/21/17 INR 14.45 INCLINE REALTY PVT 10.85 08/21/17 INR 17.54 INDIA GOVERNMENT B 0.23 01/25/35 INR 21.52 JCT LTD 2.50 04/08/11 USD 18.13 MASCON GLOBAL LTD 2.00 12/28/12 USD 4.32 PRAKASH INDUSTRIES 5.25 04/30/15 USD 70.38 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 26.38 JAPAN ----- AVANSTRATE INC 3.02 11/05/15 JPY 41.88 AVANSTRATE INC 5.00 11/05/17 JPY 32.63 ELPIDA MEMORY INC 0.50 10/26/15 JPY 16.63 ELPIDA MEMORY INC 0.70 08/01/16 JPY 17.00 ELPIDA MEMORY INC 2.03 03/22/12 JPY 17.00 ELPIDA MEMORY INC 2.10 11/29/12 JPY 17.00 ELPIDA MEMORY INC 2.29 12/07/12 JPY 17.00 KOREA ----- 2014 KODIT CREATIV 5.00 12/25/17 KRW 30.32 2014 KODIT CREATIV 5.00 12/25/17 KRW 30.32 DONGBU METAL CO LT 5.20 09/12/19 KRW 62.96 EXPORT-IMPORT BANK 0.50 12/22/17 BRL 70.35 EXPORT-IMPORT BANK 0.50 11/21/17 BRL 70.63 HYUNDAI MERCHANT M 7.05 12/27/42 KRW 41.24 KIBO ABS SPECIALTY 10.00 09/04/16 KRW 32.10 KIBO ABS SPECIALTY 10.00 08/22/17 KRW 29.75 KIBO ABS SPECIALTY 10.00 02/19/17 KRW 31.24 KIBO ABS SPECIALTY 5.00 01/31/17 KRW 30.07 KIBO GREEN HI-TECH 10.00 01/25/15 KRW 72.19 KIBO GREEN HI-TECH 10.00 12/21/15 KRW 33.06 KIBO GREEN HI-TECH 10.00 03/20/15 KRW 51.44 LSMTRON DONGBANGSE 4.53 11/22/17 KRW 30.04 POSCO ENERGY CORP 4.66 08/29/43 KRW 74.87 POSCO ENERGY CORP 4.72 08/29/43 KRW 74.30 POSCO ENERGY CORP 4.72 08/29/43 KRW 74.15 SINBO SECURITIZATI 5.00 02/11/18 KRW 30.05 SINBO SECURITIZATI 9.00 07/27/15 KRW 33.65 SINBO SECURITIZATI 5.00 01/19/16 KRW 29.42 SINBO SECURITIZATI 5.00 02/11/18 KRW 30.05 SINBO SECURITIZATI 8.00 03/07/15 KRW 49.21 SINBO SECURITIZATI 5.00 03/14/16 KRW 29.19 SINBO SECURITIZATI 5.00 09/13/15 KRW 30.88 SINBO SECURITIZATI 5.00 09/13/15 KRW 23.25 SINBO SECURITIZATI 8.00 02/02/15 KRW 50.86 SINBO SECURITIZATI 5.00 02/02/16 KRW 29.63 SINBO SECURITIZATI 8.00 02/02/16 KRW 34.59 SINBO SECURITIZATI 5.00 10/05/16 KRW 30.12 SINBO SECURITIZATI 5.00 10/05/16 KRW 30.12 SINBO SECURITIZATI 5.00 09/28/15 KRW 31.33 SINBO SECURITIZATI 5.00 12/07/15 KRW 32.31 SINBO SECURITIZATI 10.00 12/27/15 KRW 35.83 SINBO SECURITIZATI 10.00 12/27/14 KRW 64.04 SINBO SECURITIZATI 5.00 07/19/15 KRW 33.60 SINBO SECURITIZATI 5.00 07/26/16 KRW 30.44 SINBO SECURITIZATI 5.00 07/26/16 KRW 30.44 SINBO SECURITIZATI 5.00 08/31/16 KRW 30.43 SINBO SECURITIZATI 5.00 08/31/16 KRW 30.26 SINBO SECURITIZATI 4.60 06/29/15 KRW 30.94 SINBO SECURITIZATI 4.60 06/29/15 KRW 30.95 SINBO SECURITIZATI 5.00 01/29/17 KRW 28.93 SINBO SECURITIZATI 5.00 05/27/16 KRW 30.87 SINBO SECURITIZATI 5.00 05/27/16 KRW 31.51 SINBO SECURITIZATI 5.00 02/21/17 KRW 29.52 SINBO SECURITIZATI 5.00 08/16/16 KRW 30.61 SINBO SECURITIZATI 5.00 08/16/17 KRW 30.34 SINBO SECURITIZATI 5.00 08/16/17 KRW 30.34 SINBO SECURITIZATI 5.00 12/13/16 KRW 29.87 SINBO SECURITIZATI 5.00 02/21/17 KRW 28.68 SINBO SECURITIZATI 5.00 06/29/16 KRW 31.14 SINBO SECURITIZATI 5.00 08/24/15 KRW 31.49 SINBO SECURITIZATI 5.00 10/01/17 KRW 29.96 SINBO SECURITIZATI 5.00 03/13/17 KRW 29.42 SINBO SECURITIZATI 5.00 03/13/17 KRW 29.42 SINBO SECURITIZATI 5.00 06/07/17 KRW 27.22 SINBO SECURITIZATI 5.00 06/07/17 KRW 27.22 SINBO SECURITIZATI 5.00 07/08/17 KRW 30.49 SINBO SECURITIZATI 5.00 07/08/17 KRW 30.49 SINBO SECURITIZATI 5.00 12/25/16 KRW 30.27 SINBO SECURITIZATI 5.00 10/01/17 KRW 29.96 SINBO SECURITIZATI 5.00 10/01/17 KRW 29.96 SINBO SECURITIZATI 5.00 01/15/18 KRW 30.30 SINBO SECURITIZATI 5.00 01/15/18 KRW 30.30 SK TELECOM CO LTD 4.21 06/07/73 KRW 72.16 STX OFFSHORE & SHI 3.00 09/06/15 KRW 72.97 STX OFFSHORE & SHI 6.90 04/09/15 KRW 72.58 TONGYANG CEMENT & 7.50 04/20/14 KRW 70.00 TONGYANG CEMENT & 7.30 06/26/15 KRW 70.00 TONGYANG CEMENT & 7.50 09/10/14 KRW 70.00 TONGYANG CEMENT & 7.30 04/12/15 KRW 70.00 TONGYANG CEMENT & 7.50 07/20/14 KRW 70.00 U-BEST SECURITIZAT 5.50 11/16/17 KRW 30.39 WOONGJIN ENERGY CO 2.00 12/19/16 KRW 64.42 MALAYSIA -------- BANDAR MALAYSIA SD 0.35 02/20/24 MYR 67.73 BIMB HOLDINGS BHD 1.50 12/12/23 MYR 66.32 BRIGHT FOCUS BHD 2.50 01/22/31 MYR 60.34 BRIGHT FOCUS BHD 2.50 01/24/30 MYR 63.85 LAND & GENERAL BHD 1.00 09/24/18 MYR 0.41 SENAI-DESARU EXPRE 0.50 12/31/38 MYR 61.79 SENAI-DESARU EXPRE 0.50 12/30/39 MYR 63.11 SENAI-DESARU EXPRE 0.50 12/31/40 MYR 64.30 SENAI-DESARU EXPRE 0.50 12/29/45 MYR 69.17 SENAI-DESARU EXPRE 0.50 12/30/44 MYR 68.36 SENAI-DESARU EXPRE 0.50 12/31/46 MYR 69.95 SENAI-DESARU EXPRE 0.50 12/31/41 MYR 65.47 SENAI-DESARU EXPRE 0.50 12/31/42 MYR 66.51 SENAI-DESARU EXPRE 0.50 12/31/43 MYR 67.43 SENAI-DESARU EXPRE 0.50 12/31/47 MYR 70.67 SENAI-DESARU EXPRE 1.10 12/31/21 MYR 70.68 SENAI-DESARU EXPRE 1.10 12/31/20 MYR 74.44 SENAI-DESARU EXPRE 1.10 06/30/21 MYR 72.55 SENAI-DESARU EXPRE 1.15 12/30/22 MYR 67.65 SENAI-DESARU EXPRE 1.35 12/31/25 MYR 61.17 SENAI-DESARU EXPRE 1.35 06/30/27 MYR 58.10 SENAI-DESARU EXPRE 1.35 12/31/29 MYR 52.80 SENAI-DESARU EXPRE 1.35 06/28/30 MYR 51.63 SENAI-DESARU EXPRE 1.35 12/31/30 MYR 50.44 SENAI-DESARU EXPRE 1.35 06/30/31 MYR 49.28 SENAI-DESARU EXPRE 1.10 06/30/22 MYR 68.98 SENAI-DESARU EXPRE 1.15 06/30/23 MYR 66.12 SENAI-DESARU EXPRE 1.15 12/29/23 MYR 64.64 SENAI-DESARU EXPRE 1.15 06/28/24 MYR 63.29 SENAI-DESARU EXPRE 1.15 12/31/24 MYR 61.95 SENAI-DESARU EXPRE 1.15 06/30/25 MYR 60.74 SENAI-DESARU EXPRE 1.35 06/30/26 MYR 60.13 SENAI-DESARU EXPRE 1.35 12/31/26 MYR 59.11 SENAI-DESARU EXPRE 1.35 12/31/27 MYR 57.10 SENAI-DESARU EXPRE 1.35 06/29/29 MYR 53.91 SENAI-DESARU EXPRE 0.65 06/30/20 MYR 74.27 SENAI-DESARU EXPRE 1.35 06/30/28 MYR 56.05 SENAI-DESARU EXPRE 1.35 12/29/28 MYR 55.01 UNIMECH GROUP BHD 5.00 09/18/18 MYR 1.36 NEW ZEALAND ----------- KIWI INCOME PROPER 8.95 12/20/14 NZD 1.03 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 12.00 BAKRIE TELECOM PTE 11.50 05/07/15 USD 9.00 BERAU CAPITAL RESO 12.50 07/08/15 USD 59.50 BERAU CAPITAL RESO 12.50 07/08/15 USD 84.75 BLD INVESTMENTS PT 8.63 03/23/15 USD 16.38 BUMI CAPITAL PTE L 12.00 11/10/16 USD 30.00 BUMI CAPITAL PTE L 12.00 11/10/16 USD 28.05 BUMI INVESTMENT PT 10.75 10/06/17 USD 27.00 BUMI INVESTMENT PT 10.75 10/06/17 USD 28.23 ENERCOAL RESOURCES 6.00 04/07/18 USD 29.00 INDO INFRASTRUCTUR 2.00 07/30/10 USD 1.88 THAILAND -------- G STEEL PCL 3.00 10/04/15 USD 2.71 MDX PCL 4.75 09/17/03 USD 25.00 VIETNAM ------- DEBT AND ASSET TRA 1.00 10/10/25 USD 54.88 ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, and Peter A. Chapman, Editors. Copyright 2014. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000 or Nina Novak at 202-362-8552. *** End of Transmission ***