/raid1/www/Hosts/bankrupt/TCRAP_Public/141204.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, December 4, 2014, Vol. 17, No. 240
Headlines
A U S T R A L I A
GOLD-X AUSTRALIA: First Creditors' Meeting Slated For Dec. 11
HIP PHARMACY: Receivers Seek Expression of Interest
OGL RESOURCES: First Creditors' Meeting Set For December 10
PIE FACE: Prime Sites Sought After as Franchisees Winds Up
SINO STRATEGIC: Fined For Failing to Lodge Financials
TEN NETWORK: Studying Takeover, Refinancing Proposals
THEO & CO: In Administration; 1st Creditors' Meeting on Dec. 10
I N D I A
APC DRILLING: CRISIL Suspends B Rating on INR140MM Overdraft Loan
ARUN REGA: CRISIL Assigns B+ Rating to INR75MM Cash Credit
BANSAL CONSTRUCTION: ICRA Reaffirms B+ Rating on INR25cr Loan
BANSAL FOODS: ICRA Assigns B Rating to INR4.50cr Term Loan
BHARATH REDDY: ICRA Suspends 'D' Rating on INR5.30cr Term Loan
BHAVANI TIMBER: CRISIL Suspends B+ Rating on INR16MM Loan
BIOMAX FUELS: CRISIL Assigns C Rating to INR400MM Export Loan
DARVESH CONSTRUCTIONS: ICRA Assigns B+ Rating to INR30cr Loan
DIVYA CONSTRUCTION: ICRA Suspends B- Rating on INR8cr FB Loan
DOLPHIN CLOTHING: CRISIL Suspends B+ Rating on INR9.2MM Loan
DRS DILIP: ICRA Revises Rating on INR10cr Cash Credit to C+
DSG CORP: ICRA Revises Rating on INR11.20cr Loan to B-
G AND G ISPAT: CRISIL Cuts Rating on INR70MM Cash Loan to 'B-'
GEETALAKSHMI MODERN: ICRA Suspends B+ Rating on INR10cr Bank Loan
GURUTEK INDIA: ICRA Revises Rating on INR5cr Bank Loan to 'B'
LODHA DEVELOPERS: Fitch Puts 'B+(EXP)' Rating on US$ Denom. Notes
MA SARSINSA: CRISIL Suspends B- Rating on INR100MM Term Loan
MEDICO REMEDIES: ICRA Reaffirms B+ Rating on INR6.5cr LT Loan
MOHAN INDIA: Asked to Disclose Assets in 4 Weeks
MPB CONSTRUCTION: ICRA Suspends B+ Rating on INR2.7cr Loan
MURALI KRISHNA: ICRA Suspends B+ Rating on INR9cr Bank Loan
N. A. YARNS: CRISIL Assigns B+ Rating to INR70MM Cash Credit
POONAM LEEKHA: CRISIL Assigns B Rating to INR61MM Term Loan
PREGIO PHARMA: CRISIL Suspends B Rating on INR25MM Bank Loan
RAJASTHAN VIKAS: ICRA Assigns B+ Rating to INR27.20cr Term Loan
RAJESH RAYON: ICRA Suspends B Rating on INR8.81cr Long Term Loan
SAINATH AUTOLINKS: CRISIL Suspends D Rating on INR82MM Bank Loan
SAUDAGAR ENTERPRISES: CRISIL Ups Rating on INR130MM Loan to 'B-'
SHARU STEELS: ICRA Revises Rating on INR18cr Cash Credit to B+
SIDANA EDUCATIONAL: CRISIL Suspends D Rating on INR61.5MM Loan
SOLAR TECHNOLOGIES: CRISIL Suspends B- Rating on INR127MM Loan
SRI LAKSHMI: ICRA Suspends B Rating on INR8cr Bank Loan
SRI SANTHOSHI: ICRA Assigns B Rating to INR8cr Fund Based Loan
SRI VENKATESWARA: CRISIL Suspends B Rating on INR50MM Cash Loan
TOSHBRO MEDICALS: CRISIL Reaffirms B Rating on INR65MM Cash Loan
VAST INDUSTRIES: ICRA Suspends B Rating on INR3.75cr Cash Credit
VIKAS COTTON: CRISIL Assigns B Rating to INR85MM Cash Credit
I N D O N E S I A
BUMI RESOURCES: S&P Lowers LT Corporate Credit Rating to 'D'
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A U S T R A L I A
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GOLD-X AUSTRALIA: First Creditors' Meeting Slated For Dec. 11
-------------------------------------------------------------
Christopher Darin and Aaron Lucan of Worrells Solvency & Forensic
Accountants were appointed as administrators of Gold-X Australia
Pty Ltd, Gold-X Services Pty Ltd, and Gold-X Properties Pty Ltd on
Dec. 1, 2014.
A first meeting of the creditors of the Company will be held at
Suite 3, Level 3, 350 George Street, in Sydney, on Dec. 11, 2014,
at 10:30 a.m.
HIP PHARMACY: Receivers Seek Expression of Interest
---------------------------------------------------
George Georges and Brendan Richards of Ferrier Hodgson were
appointed Receivers and Managers of the following entities on Aug.
28, 2014, on behalf of the Westpac Banking Corporation:
-- HIP QLD Pty Ltd Trading as Morningside Health Information
Pharmacy
-- HIP Brimbank Pty Ltd Trading as Brimbank Health Information
Pharmacy
-- Eferes Pty Ltd
-- Ken Lee trading as Castle Hill Information Pharmacy
The Receivers' appointment follows the appointment of Ross
Blakeley and Stefan Dopkin of FTI Consulting as Voluntary
Administrators of HIP Brimbank Pty Ltd, Eferes Pty Ltd and HIP QLD
Pty Ltd.
The Receivers now control the Group's assets and operations and
are assessing the Group's financial position. At this stage the
Receivers and Managers intend to continue the Group's trading
while seeking expressions of interest for a sale as a going
concern.
HIP Pharmacy Group operates 3 community pharmacies in Deer Park
(VIC), Castle Hill (NSW) and Morningside (QLD).
OGL RESOURCES: First Creditors' Meeting Set For December 10
-----------------------------------------------------------
Maxwell Prentice and David Sampson of BPS Recovery were appointed
as administrators of OGL Resources Limited on Nov. 28, 2014.
A first meeting of the creditors of the Company will be held at
Institute of Chartered Accountants, 33 Erskine Street, in Sydney,
on Dec. 10, 2014, at 10:00 a.m.
Based in Sydney, Australia, OGL Resources Limited --
http://www.oglltd.com/-- is engaged in plantation development,
and mining and exploration activities. The company's Mining and
Exploration segment explores, develops, and mines for coal in
Australia. Its Plantation Development segment cultivates and
develops tropical hardwood plantations in Fiji; and sells and
markets plant seedlings in Fiji and Papua New Guinea.
PIE FACE: Prime Sites Sought After as Franchisees Winds Up
----------------------------------------------------------
Simon Johanson at The Sydney Morning Herald reports that city
retailers are looking to snatch up prime corner sites as
franchisees in the troubled Pie Face chain relinquish leases and
wind up their businesses.
SMH says one former Pie Face shop in Elizabeth Street, Melbourne,
has a new "leased" sign on its window and other venues are being
advertised to potential occupants.
Industry sources suggested all the chain's 14 Melbourne stores
were "unofficially" on the market, SMH relates.
A raft of shops is likely to become available in Sydney as well,
the report says.
According to the report, the sites are likely to be keenly sought
after because of their corner locations and small footprints in a
strong market conditions characterised by low retail vacancy rates
about 1.75 per cent.
SMH relates that CBRE agents Zelman Ainsworth and Cam Taranto, who
leased the store at 219 Elizabeth Street, would not disclose rent
or tenant details.
Retail rents on the strip usually attract between AUD3,000 and
AUD3,500 per square metre, SMH discloses.
"Because they're small in size and in prime locations, retailers
are lining up to take these stores," the report quotes
Mr. Ainsworth as saying.
At least five stores in Melbourne shut last week as administrator
Jirsch Sutherland confirmed on November 28 that 20 company-owned
stores and two offices were being closed, with 130 part-time
employees to lose their jobs, SMH 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.
As reported in the Troubled Company Reporter-Asia Pacific on
Dec. 2, 2014, SmartCompany said 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.
SINO STRATEGIC: Fined For Failing to Lodge Financials
-----------------------------------------------------
Sino Strategic International Limited has been convicted and fined
AUD18,000 for failing to hold annual general meetings and lodge
financial reports with ASIC.
Sino Strategic International Limited was convicted in Adelaide
Magistrates Court on Nov. 28, 2014 after pleading guilty to
14 charges laid by ASIC for failing to:
* lodge half-year reports with either ASIC or the Australian
Stock Exchange (ASX) between 2010 and 2012;
* lodge annual reports with either ASIC or ASX between 2011
and 2013; and
* report to members between 2010 and 2013, and hold annual
general meetings between 2010 and 2013.
ASIC Commissioner, Greg Tanzer, said Sino Strategic International
Limited was one of six companies prosecuted since 1 July 2014 for
offences concerning the failure to lodge financials and hold
annual general meetings with fines of up to AUD27,000.
"Companies required to provide financial reports and hold annual
general meetings need to do so within the specified timeframe,"
Mr. Tanzer said. "These reports and meetings are not only crucial
to the integrity of our market, but also used by investors,
employees and creditors to help them make informed decisions."
The Commonwealth Director of Public Prosecutions prosecuted the
matter.
Based in Australian, Sino Strategic International Limited
(ASX:SSI) -- http://www.sino.com.au/-- is engaged in gaming and
entertainment business, financial services, and distribution of
Internet and mobile media via GoTrek technology and provision of
Internet service provider services. Its gaming division is engaged
in the welfare lottery, Keno and sports lottery businesses in
China. The gaming business is conducted through the 100% owned
China Entertainment Holdings Ltd. The online and mobile media
activities were conducted through GoConnect Ltd group. The
Company's investment and related financial services are operated
through the 100% owned Sino Investment Services Pty Ltd. The
business operating activities are located entirely in China,
Melbourne, Australia.
TEN NETWORK: Studying Takeover, Refinancing Proposals
-----------------------------------------------------
Brett Foley and David Fickling at Bloomberg News report that
Ten Network Holdings Ltd. said it's studying takeover or
refinancing proposals received from a number of parties.
The proposed transactions "could result in a change of control of
Ten or a refinancing of its existing debt facilities," the Sydney-
based company said in a regulatory statement on
December 3. It didn't name any suitors or prices, Bloomberg notes.
Potential buyers including Time Warner Inc., Providence Equity
Partners LLC, and Discovery Communications Inc. together with
local pay-TV operator Foxtel have all approached the company in
recent weeks, people with knowledge of the matter said last month,
Bloomberg recalls. Foxtel is jointly owned by Rupert Murdoch's
News Corp. and phone company Telstra Corp.
According to Bloomberg, Ten Network, which broadcasts the U.S.
television show "Homeland" in Australia, has been exploring
options after Chief Executive Officer Hamish McLennan took steps
to cut costs and jobs in response to a shrinking pool of viewers.
The company, which lacks the rights its rivals have to broadcast
the nation's most popular sports, is forecast to post losses
through 2017, data compiled by Bloomberg show.
Bloomberg relates that Ten said last month it had appointed
Citigroup Inc. to advise on strategic options and that there was
no guarantee of a deal being reached. The broadcaster has been
working with the New York-based bank on various alternatives,
including a sale, since at least July, people with knowledge of
the matter said at the time, Bloomberg relays.
The confidential, non-binding and conditional proposals will be
considered by an independent board committee, Ten said on December
3, Bloomberg relates. They may or may not result in any
transaction.
Foxtel was looking at buying a small piece of Ten, the Australian
newspaper quoted Murdoch as saying at News Corp.'s annual
shareholder meeting last month, according to Bloomberg.
Gina Rinehart, Asia's richest woman, owns a 9.5 percent stake in
Ten, according to data compiled by Bloomberg. Other shareholders
include Lachlan Murdoch, as well as billionaire casino operator
James Packer and Australian media executive Bruce Gordon, the data
show.
Ten Network Holdings Limited is an Australia-based company. The
principal activity of the Company is the investment in The Ten
Group Pty Limited (Ten Group) and controlled entities, whose
principal activities are the operation of multi-channel commercial
television licenses in Sydney, Melbourne, Brisbane, Adelaide and
Perth, and out-of-home advertising. The Company operates in the
television segment. Network Ten operates three free-to-air
television channels in Australia's five metropolitan markets of
Sydney, Melbourne, Brisbane, Adelaide and Perth.
THEO & CO: In Administration; 1st Creditors' Meeting on Dec. 10
---------------------------------------------------------------
Giovanni Maurizio Carrello and Mathieu Tribut of BRI Ferrier
Western Australia were appointed as administrators of Theo & Co on
Nov. 29, 2014.
A first meeting of the creditors of the Company will be held at
Unit 7, 99-101 Francis Street, in Northbridge, West Australia, on
Dec. 10, 2014, at 10:00 a.m.
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I N D I A
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APC DRILLING: CRISIL Suspends B Rating on INR140MM Overdraft Loan
-----------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of
APC Drilling and Construction Co. (APC).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Overdraft Facility 140 CRISIL B/Stable
The suspension of rating is on account of non-cooperation by APC
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, APC is yet to
provide adequate information to enable CRISIL to assess APC's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
APC, formed in the 1990s as a partnership concern, is involved in
the drilling and exploration of minerals for private and
government enterprises. The firm's day-to-day operations are
managed by Mr. A Pari and Mr. A Chandran.
ARUN REGA: CRISIL Assigns B+ Rating to INR75MM Cash Credit
----------------------------------------------------------
CRISIL has assigned its CRISIL B+/Stable rating to the bank
facilities of Arun Rega Bakery Machineries Pvt Ltd (ARBMPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 75 CRISIL B+/Stable
The rating reflects its below-average financial risk profile
marked by a small net worth and high gearing, modest scale of
operations in a fragmented industrial machinery manufacturing
industry. These rating weaknesses are partially offset by the
extensive experience of ARBMPL's promoters in the machinery
manufacturing industry and their established relationships with
customers.
Outlook: Stable
CRISIL believes that ARBMPL will continue to benefit over the
medium term from its promoters' extensive experience in the
machinery manufacturing industry. The outlook may be revised to
'Positive' if the company reports a significant improvement in its
scale of operations and profitability, leading to a substantial
increase in its cash accruals. Conversely, the outlook may be
revised to 'Negative' if ARBMPL's generates low cash accruals or
its working capital cycle deteriorates, thereby adversely
impacting its liquidity.
Incorporated in 1995 ARBMPL manufactures extensive range of bakery
machines and equipments. The company is promoted by Mr.A.L.
Bhaskar and the day-to-day operations are managed by Mr.Bhasker.
BANSAL CONSTRUCTION: ICRA Reaffirms B+ Rating on INR25cr Loan
-------------------------------------------------------------
ICRA has reaffirmed its [ICRA]B+ rating on the INR30.0 crore bank
facilities of Bansal Construction Works Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based limits 25.0 [ICRA]B+; reaffirmed
Unallocated 5.0 [ICRA]B+; reaffirmed
The rating reaffirmation takes into account the ramp up in BCWPL's
revenues due to the steady execution of its order book, healthy
order book position which lends moderate revenue visibility (Order
book to operating income ratio of 2.85 times as on October 2014)
and healthy profitability indicators.
The rating is however constrained by the company's continued high
dependence on subcontracting (to its group entity Bansal
Construction Works (BCW, rated [ICRA]B+/A4)) in the absence of its
own equipment base and resources. The execution risks apart, with
the company having forayed into road projects on a Build-Operate-
Transfer (BOT) basis, given its limited cash accruals and bank
lines, BCWPL remains dependent on group entities for managing its
equity commitments in these projects. The rating also factors in
the company's dependence on two road construction contracts and
its exposure to sectoral and geographic concentration risks. Going
forward, BCWPL's ability to get new orders and execute them in a
timely manner, maintain its profitability in the backdrop of a
competitive environment and manage its funding requirements will
be the key rating sensitivities.
BCWPL, promoted by Mr. Anil Bansal and Mr. Sunil Bansal, is a part
of the 'Bansal Group' of Bhopal which has a three decade old
construction business (currently being carried out through BCW), a
steel rolling mill and edible oil extraction unit. Further, it is
also present in education through its engineering and management
institutes. BCWPL was incorporated in 2011 as a vehicle to take up
BOT and engineering, procurement and construction projects,
primarily in the road construction segment in Madhya Pradesh.
Recent Results:
In 2013-14, BCWPL posted revenues of INR76.4 crore with an
Operating profit before depreciation interest and tax (OPBDIT) of
INR14.3 crore and a net profit of INR6.1 crore, as compared to
revenues of INR50.5 crore, OPBDIT of INR9.7 crore and a net profit
of INR8.3 crore in the previous year.
BANSAL FOODS: ICRA Assigns B Rating to INR4.50cr Term Loan
----------------------------------------------------------
ICRA has assigned a rating of [ICRA]B to the INR9.0 crore bank
facilities of Bansal Foods (India).
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 4.50 [ICRA]B; (assigned)
Term Loan 4.50 [ICRA]B; (assigned)
The assigned rating is constrained by the limited track record of
the firm as it commenced commercial operations only from September
29, 2014, due to which its operational and financial track record
is limited. The rating also takes into account the high working
capital intensity of the business because of the need to maintain
high paddy inventory due to the inherent seasonality. While this
leads to high funding requirements, BNF is also exposed to the
risk of crop damage due to rain, pest infection etc. The rating
also takes cognizance of the proprietorship nature of the firm
related to the risk of capital withdrawals and dependence on the
proprietor.
However, the rating positively factors in the entrepreneurial
experience of the proprietor and the favourable location of BNF's
manufacturing facility. The rating also derives comfort from the
fiscal incentives extended by the Punjab state government, which
include waiver of 2% market fee, 2% rural development fee, 3%
Punjab infrastructure development cess and 5% VAT on the basmati
paddy procured through grain mandis and meant for export. Further,
the rating is also supported by the steady export demand and good
growth prospects for the basmati rice industry.
Going forward, the ability of the firm to stabilize the new
business, run its plant at optimal utilization levels throughout
the year and efficiently manage its working capital cycle, would
be the key rating sensitivities.
BNF was set up in December, 2013 as a proprietorship firm under Mr
Jodha Ram Bansal in Samana (Punjab). The firm's plant, which has a
capacity of 6 metric tonnes per hour, commenced commercial
operations from September 29,2014 and will cater entirely to the
export markets. Mr. Bansal is a director in two other Companies as
well Pooja Cotspin Pvt Ltd (yarn manufacturing) and Bansal Polyvin
Pvt Ltd (PVC pipe manufacturing). He is assisted by his two sons
in the rice shelling business.
BHARATH REDDY: ICRA Suspends 'D' Rating on INR5.30cr Term Loan
--------------------------------------------------------------
ICRA has suspended the long term rating of [ICRA]D assigned to
INR5.30 crore term loan facilities and INR0.20 crore proposed
facilities of M/s Bharath Reddy Educational Society. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
Bharath Reddy Educational Society was established in 2009 and runs
one school in Mahboobnagar, Andhra Pradesh. BRES is part of
Keshava Reddy group of educational institutions which was started
in the year 1993 by Mr. N. Keshava Reddy. For the first 15 years
of operation the group ran it's schools only in Kurnool, AP but
since 2008 the group has been undertaking major expansion and has
spread across several locations in Andhra Pradesh. The group
presently has close to 100,000 students studying in 38 schools
under the guidance of ~5000 teachers in 14 different locations in
Andhra Pradesh. The school imparts education from KG to class X as
per the Andhra Pradesh state curriculum.
BHAVANI TIMBER: CRISIL Suspends B+ Rating on INR16MM Loan
---------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Bhavani
Timber Depot (BTD).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Letter of Credit 60 CRISIL A4
Overdraft Facility 16 CRISIL B+/Stable
The suspension of ratings is on account of non-cooperation by BTD
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, BTD is yet to
provide adequate information to enable CRISIL to assess BTD's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.
BTD, set up in 1960 by the Shencottah (Tamil Nadu)-based Patel
family, trades in timber such as teakwood and hardwood imported
from countries such as Myanmar and from Africa and South America.
BTD has a warehouse in Tuticorin (Tamil Nadu) and registered
office in Shencottah.
BIOMAX FUELS: CRISIL Assigns C Rating to INR400MM Export Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL C/CRISIL A4' ratings to the bank
facilities of Biomax Fuels Ltd (BFL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Letter of Credit 330 CRISIL A4
Bank Guarantee 20 CRISIL A4
Export Packing Credit 400 CRISIL C
The ratings reflect company's weak liquidity driven by weak
operating efficiencies and large working capital requirements. The
rating also reflects BFL's weak financial risk profile,
vulnerability of its operating profitability to adverse movement
in raw material prices and foreign exchange rates and its
susceptibility to adverse government regulations. The above
mentioned weaknesses are partially offset by the benefits derived
by BFL from the extensive entrepreneurial experience of its
promoters and its established relationships with major customers.
Commenced operations in 2010, BFL undertakes manufacture and sale
of biodiesel. The company is promoted by Mr.M.Ravinder,
Mr.N.S.Balamukundan, Dr.N.S.Venkatesh, and Mr.Kalyan Chakravarthy.
The company's manufacturing unit is located in Vishakhapatnam
Special Economic Zone at Duvvuda, Andhra Pradesh.
BFL reported, on a provisional basis, a net loss of INR129 million
on net sales of INR1.6 billion on for 2013-14(refers to financial
year, July 01 to June 30), as against a net loss of INR125 million
on net sales of INR1.04 billion for 2012-13.
DARVESH CONSTRUCTIONS: ICRA Assigns B+ Rating to INR30cr Loan
-------------------------------------------------------------
ICRA has assigned a long term rating of [ICRA]B+ to the INR30.00
crore bank facilities of M/s Darvesh Constructions Private
Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 30.0 [ICRA]B+
The assigned rating is constrained by the modest scale of
operations of the company vis-…-vis the size of the project, MAK
Address, which is the largest project of the company launched till
date. Presently the project is in intermediate stage of execution
(56% completion and 38% of bookings), exposing the company to
marketing and execution risk, customary to the nature of such real
estate projects. The rating assigned takes into account the
deterioration in financial profile, as evidenced by the decline in
turnover and profitability, with slowdown in the sales velocity.
The rating also factors in the deterioration in the capital
structure with fresh term loan being availed, resulting in sizable
repayment obligations in the short to medium term, vis-…-vis the
cash accruals of the company. ICRA also notes that there are
strong operational and financial linkages among the MAK India
Group of entities and surplus from DCPL could be utilized towards
funding the financial commitments of the group concerns leading to
liquidity risk.
The rating, however, positively factors in the strong reputation
and long track record of promoters with more than 20 years of
experience in the Mangalore real estate market. The rating
assigned factors in the comfortable liquidity position of the
company with unutilized bank limits and committed receivables
providing surplus cover to the balance cost proposed to be
incurred. The rating also takes comfort from the premium location
of the project, which may aid in achieving healthy sales velocity.
Going forward, timely completion of the project and the ability of
the company to achieve healthy bookings and maintain collection
efficiency would be the key rating sensitivities.
Incorporated in 1993, Darvesh Constructions Private Limited DCPL,
part of MAK India Group of entities, is involved in real estate
development, with presence mainly in the Mangalore real estate
market. DCPL has nearly 20 years of experience in the real estate
sector (commercial and residential) with completion of 4 projects
encompassing ~0.16 msft* of constructed area. The largest
residential apartment developed by the company is MAK Grand
(43,100 sqft). The company is also involved in commercial projects
and the largest commercial project developed is MAK Mall (70,098
sqft). The project, MAK Address, with a saleable area of 0.25
million sqft is the biggest project of the company launched till
date and carries a total project cost of INR63.0 crore, funded by
INR30.00 crore term loan, INR13.56 crore unsecured loans from
directors and relatives and balance through customer advances. The
project has achieved 38% bookings and construction is 56% complete
as on October 31, 2014; target date of completion and handing over
of possession is February 2016.
Recent Results
In the financial year FY14, the company reported a net profit of
INR0.67 crore on an operating income of INR11.53 crore as against
a net profit of INR0.52 crore on an operating income of INR21.55
crore in FY13.
DIVYA CONSTRUCTION: ICRA Suspends B- Rating on INR8cr FB Loan
-------------------------------------------------------------
ICRA has suspended the [ICRA] B- rating assigned to the INR11.00
crore bank facilities of Divya Construction Company. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits 8.0 [ICRA]B- Suspended
Non-Fund Based 3.0 [ICRA]B- Suspended
Limits
Divya Construction Company (DCC) was formed in 1970 as a
partnership firm and is registered as a class AA contractor. The
firm has executed civil works for government and semi-government
departments in Mumbai.
DOLPHIN CLOTHING: CRISIL Suspends B+ Rating on INR9.2MM Loan
------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Dolphin Clothing (DC).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bill Discounting 95 CRISIL A4
Packing Credit 15.8 CRISIL A4
Term Loan 9.2 CRISIL B+/Stable
The suspension of ratings is on account of non-cooperation by DC
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, DC is yet to
provide adequate information to enable CRISIL to assess DC's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
DC, set up in 1996, is a proprietorship concern of Mr. Dinesh Jain
and is into manufacturing and export of garments. The firm has its
manufacturing units at Dapoda village (Bhivandi, Thane district).
DC manufactures men, women and kids wear, including shirts,
trousers, tops, jackets, etc. DC exports, predominantly to retail
chains, in countries like Belgium, UK, Netherland, Germany,
Ireland, etc.
DRS DILIP: ICRA Revises Rating on INR10cr Cash Credit to C+
-----------------------------------------------------------
ICRA has revised the long term rating of DRS Dilip Roadlines
Private Limited (DRSDRL) to [ICRA]C+ from [ICRA]D for INR10.00
crore (reduced from 17.50) fund based facilities of DRSDRL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 10.00 Revised to [ICRA]C+
The rating revision of DRSDRL takes into account timely servicing
of debt obligation in the past three months. The rating continues
to be constrained by weak financial profile as reflected by high
gearing and weak coverage indicators; modest scale of operation;
and intensely competitive nature of the road transportation
industry which exerts pressure on its profitability and
vulnerability of its profitability to fluctuations in hire charges
given the fact that higher proportion of its vehicles are on hire
basis. However, ICRA draws comfort from the long track record of
the promoter in transportation industry and established
relationship with reputed clients with long term contracts with
them; presence in home relocation segment with well known brand
name "Agarwal Movers and Packers".
Going forward, the ability of the company to maintain adequate
liquidity as well as timeliness in debt servicing is the key
rating servicing.
DRS Dilip Roadlines Private Limited (DRSDRL) was incorporated in
2009 by Mr. Anjani Kumar Agarwal and Mr. Sanjay Agarwal. Prior to
incorporation of DRSDRL, the promoters were involved in the
operations of DRS Logistics Private Limited (another group company
involved in the similar business) which had been promoted by their
father Mr. Dayanand Agarwal along with his brothers. DRSDRL is
engaged in the transportation of household items, commercial and
industrial goods and parcel movement across the country and
operates through its 100 branch offices and agencies.
Recent Results
As per provisional FY2014 financials, DRSDRL reported operating
income of INR135.15 crore and net profit of INR4.26 crore against
INR125.91 crore operating income and INR0.62 crore net profit in
FY2013.
DSG CORP: ICRA Revises Rating on INR11.20cr Loan to B-
------------------------------------------------------
ICRA has revised the long term rating assigned to the INR11.20
crore (reduced from INR14.00 crore) non fund based limits of
DSG Corp Private Limited to [ICRA]B-.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Non 11.20 Revised to [ICRA]B-
Fund Based from [ICRA]B
Rating Rationale
The rating revision factors in the countenance of company's
suspension of business operations post acquisition of its business
by Blue Star Limited (BSL) in August 2010 which has resulted in
losses at operating level for past three years. ICRA notes that
although the non-compete agreement signed with BSL at the time of
acquisition has ended in June 2014, there is still uncertainly
regarding recommencement of any business activity in DSGCPL
offering low revenue visibility for the near to medium term. While
ICRA also notes that currently the company has adequate liquidity
by way of unencumbered fixed deposits, the same is likely to
reduce going forward as DSGCPL plans to draw-down these fixed
deposits and advance funds to group companies for investing in
real estate ventures.
The rating however favorably factors in the adequate cover in form
of fixed deposits for its working capital (bank overdraft)
facility.
DSGCPL was started as a proprietorship firm by Mr. Sunil Gupta in
1992 which was converted to a partnership firm in 1995 and
subsequently converted to a private limited company in 1997 with
Mr. Sunil Gupta and Mrs. Kavita Gupta holding 100% shares of the
company. DSGPL offered plumbing and fire-fighting equipment-
related systems and services to hotels, hospitals, information
technology parks, residential multiplexes, and educational
institutions. On August 31, 2010 Blue Star Limited (BSL) acquired
the business of DSGCPL; consequently DSGCPL currently has no
business operations.
Recent Results
For the financial year ended March 31, 2014, the company reported
an operating income of INR0.35 crore and profit after tax of
INR0.56 crore as against an operating income of INR1.41 crore and
profit after tax of INR0.63 crore for the financial year 2012-13.
G AND G ISPAT: CRISIL Cuts Rating on INR70MM Cash Loan to 'B-'
--------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facility of
G and G Ispat Pvt Ltd (GGPL) to 'CRISIL B-/Stable' from 'CRISIL
B+/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 70 CRISIL B-/Stable (Downgraded
from 'CRISIL B+/Stable')
The rating downgrade reflects deterioration in GGPL's business
risk profile because of decline in net sales and cash losses
incurred in the past two years. The company's net sales reduced to
Rs.345 million for 2013-14 (refers to financial year, April 1 to
March 31) from Rs.396 million for 2012-13. The downgrade also
factors in deterioration in GGPL's financial risk profile, marked
by decrease in its net worth to Rs.13.6 million as on March 31,
2014, from Rs.14.9 million as on March 31, 2013. Also, the
company's gearing deteriorated to 7.00 times as on March 31, 2014,
from 4.71 times as on March 31, 2013. GGPL's liquidity is
stretched because of consistently overdrawn bank limits. CRISIL
believes that the revival of the situation is bleak in the short
term.
The rating reflects GGPL's exposure to intense competition in the
steel industry, the vulnerability of its operating margin to
volatility in raw material prices, and its below-average financial
risk profile. These rating weaknesses are partially offset by the
extensive experience of GGPL's promoters in the steel industry.
Outlook: Stable
CRISIL believes that GGPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' in case of significant
improvement in the company's profitability and ramp-up in its
operations, leading to sizeable cash accruals and improvement in
its capital structure. Conversely, the outlook may be revised to
'Negative' in case of a significant decline in the company's
revenue or profitability margins or large debt-funded capital
expenditure, weakening its financial risk profile.
GGPL was established in April 2011 by members of the Chhattisgarh-
based Agarwal family. The company manufactures mild steel channels
and angles at its facility in Raipur.
GEETALAKSHMI MODERN: ICRA Suspends B+ Rating on INR10cr Bank Loan
-----------------------------------------------------------------
ICRA has suspended [ICRA]B+ rating assigned to INR10.00 crore bank
facilities of Geetalakshmi Modern Rice Mill Private Limited. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
firm.
GURUTEK INDIA: ICRA Revises Rating on INR5cr Bank Loan to 'B'
-------------------------------------------------------------
ICRA has revised its long term rating on the INR5.00 crore fund
based bank facilities of Gurutek India Private Limited (GIPL) to
[ICRA]B from [ICRA]B+.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based bank 5.00 [ICRA]B; revised from
facilities [ICRA]B+
The rating action factors in the weakening in the operational
profile of GIPL as evident in its stagnant revenues and low
revenue visibility owing to slow moving order-book and limited
order-inflows. Further the pending order-book of GIPL continues to
be concentrated towards a single order pertaining to real estate
construction for a group Company (Gurutek Estate Private Limited
(GEPL); rated [ICRA]C+/A4). ICRA notes that this project, which
continues to remain in the initial stages of implementation, has
witnessed slow sales progress in the past one and half years. The
future revenue booking from this order will be driven by the
booking velocity as well as the funding availability for the
project. The rating also factors in the weakened liquidity
position of GIPL owing to increase in receivables (largely from
GEPL) as well as continued high loans and advances/ investments
(directly in shares as well as through purchase of plots) in group
companies (largely GEPL). Consequent to this, despite stagnation
in revenues, while the company's reliance on external financing
has increased, the financial profile continues to remain moderate.
The rating also continues to draw comfort from the established
track record of the promoters in the construction sector.
In ICRA's view, given the order concentration towards group
company, the ability of GIPL to improve the pace of execution of
this order while ensuring prudent working capital management would
be critical determinants of its liquidity position and hence would
be the key rating sensitivities, This apart, GIPL's ability to
strengthen and diversify its order-book position by securing
additional orders would remain critical for facilitating an
increase in its scale of operations and hence would be the key
rating monitorables.
Incorporated in 2001, GIPL primarily undertakes construction and
maintenance work for real estate companies (mainly clients in the
private sector). GIPL's scope of work includes construction of
residential complexes (including multi storied group housing
projects), club houses, under-ground and over ground water tanks,
electric substations and external development including
landscaping, piling, construction of swimming pools etc. The
company has been promoted by Mr. Kamal Agarwal and his wife Mrs.
Sapna Agarwal. Mr. Agarwal, who is a civil engineer by
qualification, has extensive experience in the execution of real
estate projects. Besides GIPL, the promoters are also involved in
the development of a residential township spread over 51 acres in
Sectors 25 and 26 in Rewari (Haryana) through Gurutek Estate
Private Limited (GEPL; rated [ICRA]C+/A4). The civil construction
and land development work of this township are being executed by
GIPL.
Recent Results
GIPL reported a net profit of INR0.89 crore on an operating income
of INR20.05 crore in 2013-14 as against a net profit of INR0.95
crore on an operating income of INR19.73 crore in the previous
year.
LODHA DEVELOPERS: Fitch Puts 'B+(EXP)' Rating on US$ Denom. Notes
-----------------------------------------------------------------
Fitch Ratings has assigned India-based Lodha Developers Private
Limited's (Lodha) US dollar denominated notes an expected rating
of 'B+(EXP)' and Recovery Rating of 'RR4'. The notes will be
issued by Lodha Developers International (Mauritius) Limited
(Lodha Mauritius) and guaranteed by Lodha.
The final rating on the notes is contingent upon the receipt of
final documents conforming to information already received.
Lodha Mauritius is a wholly owned subsidiary of Lodha, and its
proposed notes will be unconditionally and irrevocably guaranteed
by Lodha and its key subsidiaries. The notes will rank pari passu
with existing and future senior unsecured indebtedness of Lodha
and its key subsidiaries. However as of the date of the
indenture, only group companies that together account for 40% of
consolidated EBITDA would extend guarantees to the notes, while
the remaining material subsidiaries (defined in the indenture as
those which account for at least 5% of consolidated EBITDA or 5%
of consolidated net worth each) as of this date will be added on
as guarantors within a span of six months. Subsidiaries that are
not material as of the indenture date will be added on as
guarantors as and when they pass the materiality test in future.
However provisions in the indenture allow the initial guarantors
to access net free cash flows of several other material
subsidiaries via inter-company loans, and also restrict these cash
flows from being paid out as dividends until the additional
guarantors are in place. Under this scenario, the aggregate net
cash flows (defined as operating cash inflows net of all outflows,
including working capital, dividends, and debt servicing) under
Fitch's projections are sufficient to service the coupon payments
on the notes, even if the additional guarantees are not added.
The agency has therefore taken the view that cash flow
subordination to the note holders is not a key credit risk. Fitch
also expects that Lodha's senior unsecured creditors will benefit
from average recovery (defined as between 31% - 50% of their
investment value) in the event of liquidation. The agency has
rated the US dollar notes at the same level as Lodha's Long-Term
IDR of 'B+' taking both these factors into account.
KEY RATING DRIVERS
Project Concentration: Lodha's rating reflects its high
concentration in a few projects despite the considerable scale of
its operations. Its four largest projects will account for nearly
80% of contracted sales in the financial year ending 31 March 2015
(FY15), reducing to around 60% in FY19.
Furthermore, a majority of Lodha's medium-term sales are focused
in the high-end and luxury segments, which are defined by the
company as per square foot prices of over INR20,000 (USD325) and
over INR50,000 respectively. For the 18 months to 15 September
2014, over 60% of the company's INR106.3bn sales stemmed from
these two market segments. Sales within these segments typically
exhibit higher correlation with economic cycles, and therefore are
generally more volatile, owing to consumers' ability to delay
their purchase decisions.
Largest Domestic Developer: Lodha is the largest India-based
residential real estate property developer based on sales. The
company has demonstrated strong execution capabilities in high-end
residential developments in Mumbai. Lodha's aggregate contracted
sales value in FY13 and FY14 was higher than the combined sales
value of the second- and third-largest property developers in
India during the same period. Lodha's land bank of 25 million
square meters is among the largest among Indian developers, and
has a market value assessment of over USD10bn by external valuers.
The company expects its current land bank to support developments
and sales over the next seven years.
High Leverage to Moderate: Lodha's leverage, as measured by net
debt to inventory less customer advances, is high at 77% at FYE14,
compared to its rating peers. However leverage has reduced from
108% in FYE12 as the company's focus has shifted towards
monetizing its inventory rather than aggressively land-banking as
in prior years. Fitch expects Lodha's leverage to remain at
around 50%-55% over the medium term as the company's sales gain
traction, but leverage may increase from time to time depending on
the timing and cost of additional land acquisitions.
Strong Long-Term Growth: Fitch expects strong medium-term growth
in the Indian real-estate market, supported by growing demand in
line with economic growth, limited supply in the key cities and
rising income levels. Demand will also be underpinned by
favorable demographics and rapid urbanization, as well as the
government's aim to provide housing for all by 2020 and its plans
to develop about 100 cities/townships.
Cyclical Sector, Regulatory Risks: The real estate industry is
highly correlated with macroeconomic conditions. This risk is
partly mitigated by the essential nature of residential real
estate, as well as Fitch's expectations that the pace of India's
GDP growth will increase in the next 12-24 months. The real
estate business in India is also regulated, in that the
acquisition of land and construction of projects need approvals at
both the local and federal government levels. Any delay in
approvals or changes in regulations can impact developers.
RATING SENSITIVITIES
Positive: Future developments that may, individually or
collectively, lead to a positive rating action include:
-- Lower project concentration, with no single project
accounting for more than 15% of contracted sales on a
sustained basis
-- High sales turnover, with contracted sales/gross debt
maintained at over 1.2x (FYE14: 0.85x; Fitch projection for
FYE15: 1.1x)
Negative: Future developments that may, individually or
collectively, lead to a negative rating action include:
-- Total debt net of cash / inventory less customer advances
sustained above 55%
-- Contracted sales / gross debt sustained below 1x
-- EBITDA margin sustained below 25% (FYE14: 19.2%; Fitch
projection for FYE15: 37%)
MA SARSINSA: CRISIL Suspends B- Rating on INR100MM Term Loan
------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
MA Sarsinsa Steels Pvt Ltd (MSSPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 100 CRISIL B-/Stable
Term Loan 100 CRISIL B-/Stable
The suspension of ratings is on account of non-cooperation by
MSSPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, MSSPL is yet to
provide adequate information to enable CRISIL to assess MSSPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
MSSPL manufactures CR strips from HR strips. The manufacturing
plant of the company is located at Jhajjar (Haryana). The company
was started in 1985 and is promoted and managed by by Mr. Nirmal
Bindal and his brother, Mr. Deepak Bindal.
MEDICO REMEDIES: ICRA Reaffirms B+ Rating on INR6.5cr LT Loan
-------------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B+ assigned to
the INR6.50 crore(enhanced from INR5.00 crore) long term fund
based limits of Medico Remedies Private Limited. ICRA has also
reaffirmed the short-term rating of [ICRA]A4 rating assigned to
the INR4.00 crore, short term non-fund based limits of the
company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-Term Fund
Based Facilities 6.50 [ICRA]B+ reaffirmed
Short-Term Non
Fund Based
Facilities 4.00 [ICRA]A4 reaffirmed
The ratings continue to reflect the vast experience of the
promoters in the formulation manufacturing industry and the
healthy growth in revenues witnessed over the last two years. The
company's expansion into newer geographies coupled with the
recently completed capacity expansion is likely to further boost
revenues in the future. The company also benefits from the
financial support from the promoters in terms of equity infusion
and interest free unsecured loans. However, pharmaceutical exports
to the semi-regulated markets, remains a highly competitive
market, with pricing pressure, thereby limiting the net profit
margins of the company. Also, MRPL has no formal hedging policies,
which exposes the company to currency fluctuations. The financial
profile of the company is characterised by moderate coverage and
gearing indicators.
Medico Remedies Private Limited, a family owned organisation, was
incorporated in 1994, when the company took over the formulations
unit of Syncom Formulations India Private and in 2000 transferred
the registration of the company in the name of the promoters. The
company is primarily engaged in the manufacturing of
pharmaceutical formulations for generics, which is supplied in the
domestic market as well as international market, comprising mainly
of the semi-regulated markets. The company manufactures tablets,
capsules and dry syrups from its WHO GMP certified plant located
in Palghar, Thane.
Recent Results:
For the 6-month period ending September 30, 2014, MRPL has
reported profit before tax (PBT) of INR0.53 crore on an operating
income of INR24.55 crore (provisional). For the twelve months
ending March 31, 2014, MRPL reported profit after tax (PAT) of
INR0.63 crore on an operating income of INR44.74 crore.
MOHAN INDIA: Asked to Disclose Assets in 4 Weeks
------------------------------------------------
The Hindu Business Line reports that the Bombay High Court has
ordered Mohan India and PrimeZone Developers, the largest
defaulters in the National Spot Exchange Ltd (NSEL), to disclose
their assets in four weeks.
Hearing a petition filed by the exchange on December 2, the court
also observed that Mohan India has to furnish a bank guarantee
equivalent to the suit amount of over INR922 crore with the court
to revoke the order, the report says.
The Hindu Business Line notes that Mohan Group, which owes over
INR922 crore, has failed to meet its commitment after entering
into a conciliation agreement with NSEL. The exchange has filed a
series of suits to recover INR5,600 crore from defaulters.
According to the report, Prakash Chaturvedi, Joint Managing
Director, NSEL, said the exchange has appealed to its trading
clients to approach the exchange through their respective members
and furnish client and member IDs to get authentic information on
the progress of recovery efforts.
MPB CONSTRUCTION: ICRA Suspends B+ Rating on INR2.7cr Loan
----------------------------------------------------------
ICRA has suspended [ICRA] B+ rating assigned to the INR4.65 crore
of working capital facilities and term loans & [ICRA] A4 rating to
the INR2.85 crore of short term, non fund based facilities of
MPB Construction Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Working Capital
Limits 2.70 [ICRA]B+ suspended
Term Loans 1.65 [ICRA]B+ suspended
SLC 0.30 [ICRA]B+ suspended
Non Fund Based 2.00 [ICRA]A4 suspended
Unallocated 0.85 [ICRA]A4 suspended
The suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
MURALI KRISHNA: ICRA Suspends B+ Rating on INR9cr Bank Loan
-----------------------------------------------------------
ICRA has suspended [ICRA]B+ rating assigned to INR9.00 crore bank
facilities of Murali Krishna Raw & Boiled Rice Mill. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
firm.
N. A. YARNS: CRISIL Assigns B+ Rating to INR70MM Cash Credit
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of N. A. Yarns (NAY).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 70 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 20 CRISIL B+/Stable
The rating reflects NAY's small scale of operations in the
intensely competitive textile-trading industry, and the
susceptibility of its operating profitability to fluctuations in
raw material prices. The rating also factors in the firm's below-
average financial risk profile, marked by a high total outside
liabilities to tangible net worth ratio and below-average debt-
protection metrics. These rating weaknesses are partially offset
by the extensive experience of NAY's promoters in the textile-
trading industry.
Outlook: Stable
CRISIL believes that NAY will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the firm improves its
capital structure either through equity infusion or substantial
cash accruals, backed by increase in its scale of operations and
sustained profitability, while prudently managing its working
capital requirements. Conversely, the outlook may be revised to
'Negative' if NAY's financial risk profile weakens, most likely
because of a decline in its revenue and profitability, large debt-
funded capital expenditure, or an increase in its working capital
requirements.
NAY was set up in 2000 as a proprietorship firm by Ludhiana
(Punjab)-based Mr. Vipon Gupta. The firm trades in polyester,
acrylic, and other blended yarns along with knitted fabric.
NAY, on a provisional basis, registered a book profit of INR1.77
million on net sales of INR421.49 million in 2013-14 (refers to
financial year, April 1 to March 31); it had registered a book
profit of INR1.98 million on net sales of INR408.37 million in
2012-13.
POONAM LEEKHA: CRISIL Assigns B Rating to INR61MM Term Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the bank
facilities of Poonam Leekha & Anju Leekha (part of Agreement
Members).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 61 CRISIL B/Stable
The rating reflects low demand risk on account of long term lease
agreement, and low counterparty risk. These rating strengths are
partially offset by geographical and customer concentration in
revenue profile.
For arriving at the ratings, CRISIL has consolidated the business
and financial risk profiles of 'Neena Girdhar & Wanti Devi',
'Poonam Leekha & Anju Leekha' and 'Renu Chanana, Ranjana Chanana
Pallavi Chanana, & Anita Gupta'; together referred to as the
'Agreement Members', as the term loans are jointly and severally
guaranteed by all Agreement Members and the Agreement Members are
jointly responsible for honoring the debt obligations.
Outlook: Stable
CRISIL believes that Agreement Members will benefit from the long
term lease contract leading to stable cash accruals over the
medium term. The outlook may be revised to 'Positive' in case
Agreement Members generate significantly higher-than-expected cash
accruals, leading to improvement in financial risk profile.
Conversely the outlook may be revised to 'Negative' in case of
delays in receipt of rent or in case of unexpected termination of
lease contract adversely affecting cash flows which impairs its
debt-servicing ability.
Agreement Members have signed a joint agreement with The Haryana
State Cooperative Supply and Marketing Federation Ltd (HAFED,
rated CRISIL A-/Stable) for leasing 70,000 metric tonnes (MT) of
warehouse capacity to facilitate storage of agro based products
storage in Sadalpur Village, Adampur District, Hisar (Haryana).
The tenure of the agreement is of 10 years till May 2024.
PREGIO PHARMA: CRISIL Suspends B Rating on INR25MM Bank Loan
------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Pregio
Pharma Pvt Ltd (PPPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Cash
Credit Limit 3 CRISIL B/Stable
Proposed Long Term
Bank Loan Facility 25 CRISIL B/Stable
Proposed Term Loan 22 CRISIL B/Stable
The suspension of ratings is on account of non-cooperation
byPPPLwith CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, PPPL is yet to
provide adequate information to enable CRISIL to assess PPPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
PPPL, incorporated in 2011, is currently setting up a unit in
Puducherry for the manufacture of pharmaceutical formulations. The
company is promoted by Mr. A Saravanan and Mr M Sivakumar, who
have been in the pharmaceuticals business for over two decades.
RAJASTHAN VIKAS: ICRA Assigns B+ Rating to INR27.20cr Term Loan
---------------------------------------------------------------
ICRA has assigned a long-term rating of [ICRA]B+ to the INR5.30
crore enhanced fund-based bank facilities of Rajasthan Vikas
Sansthan (RVS). ICRA also has a [ICRA]B+ rating outstanding for
the INR32.30 crore bank facilities of RVS.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based bank 27.20 [ICRA]B+; assigned
facilities-Term
loan
Fund based bank 5.00 [ICRA]B+; assigned
Facilities-
Overdraft
Non-fund based 5.40 [ICRA]B+; outstanding
bank facilities-
Bank Guarantee
The assigned rating factors in the year on year increase in
revenue receipts and surplus levels of the society due to the
continued healthy occupancies witnessed by the society in its
dental courses combined with regular fee hikes. While ICRA takes
note of the 4% year-on-year contraction in the student base of the
society in AY14-15 owing to the decline in admissions in the
engineering and management courses, RVS' receipts and surplus
levels are expected to remain adequately supported by the upward
fee revision received by the society in AY14-15 for its dental
courses as well as the stable revenue streams from hostel and
allied operations, which together account for over 50% of the
revenue receipts generated by the society.
Aided by improvement in accruals, the financial profile of the
society has also improved over the last two years and remains
satisfactory as reflected in gearing of 1.22x as on March 31,
2014, interest cover of 3.35x and Net Cash Accruals/Total Debt of
29% for FY2014. The rating continues to derive strength from the
experienced management of the society, which has been engaged in
the education sector for more than a decade.
Notwithstanding the improvement in accruals, the rating however
remains constrained by the society's stretched liquidity position
owing to the scheduled debt repayments and regular debt funded
capital expenditure incurred by the society for infrastructure
development. Additional stressors to the liquidity are delays in
receipt of fee reimbursement (scholarship awards for students from
Jammu and Kashmir) from the State Government. The lumpy nature of
fee receipts further aggravates the liquidity issue, exposing the
society to risk of cash flow mismatches.
Given the scheduled debt repayments (Rs 7 crore over the next two
years), the scale of capital expenditure, and adequacy and
timeliness of debt funding availed to fund the same will be the
key determinants of the credit profile and liquidity position, and
will thus remain the key rating sensitivities. This apart, the
ability of the society to maintain healthy occupancies in dental
courses, as well as improve the enrolments in engineering courses
would be the key rating monitorables.
Incorporated in 1999, RVS is a registered society which runs and
operates eight colleges through its two campuses based in Jodhpur
(Rajasthan). The institutes operating under RVS offer graduate and
post graduate courses in dentistry, engineering, teacher training,
nursing and commerce/management and have a current (AY14-15)
student base of 3,846 students. Apart from the educational
institutes, RVS also runs a hospital with 150 beds, besides 260
dental chairs. The society is headed by Mr. Manish Vyas, who has
more than a decade of experience in the education sector.
Recent Results
RVS reported a net surplus of INR4.78 crore on revenue receipts of
INR29.16 crore in 2013-14 as against a net surplus of INR3.84
crore on revenue receipts of INR25.79 crore in the previous year.
RAJESH RAYON: ICRA Suspends B Rating on INR8.81cr Long Term Loan
----------------------------------------------------------------
ICRA has suspended the [ICRA]B rating assigned to the INR8.81
crore long-term, fund-based facilities of Rajesh Rayon Silk Mills
Limited. The suspension follows ICRA's inability to carry out a
rating surveillance due to non-co-operation from the company.
SAINATH AUTOLINKS: CRISIL Suspends D Rating on INR82MM Bank Loan
----------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Sainath Autolinks Pvt Ltd (SAPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 63 CRISIL D
Proposed Long Term
Bank Loan Facility 82 CRISIL D
Term Loan 75 CRISIL D
The suspension of ratings is on account of non-cooperation by SAPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SAPL is yet to
provide adequate information to enable CRISIL to assess SAPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
SAPL, set up in 2010 by Mr. Amarjeet Chawla and his father Mr.
Mohan Chawla, is an authorised dealer of MSIL with one showroom
each in Durgapur, Purulia, and Shantiniketan (all in West Bengal).
The company also deals in MSIL spare parts and services.
SAUDAGAR ENTERPRISES: CRISIL Ups Rating on INR130MM Loan to 'B-'
----------------------------------------------------------------
CRISIL has upgraded the rating on the bank facilities of Saudagar
Enterprises (SE) to 'CRISIL B-/Stable' from 'CRISIL D'
Amount
Facilities (INR Mln Ratings
---------- -------- -------
Long Term Loan 130 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Overdraft Facility 40 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Post Shipment Credit 20 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Pre Shipment Packing 30 CRISIL B-/Stable (Upgraded
Credit from 'CRISIL D')
Proposed Long Term 37.5 CRISIL B-/Stable (Upgraded
Bank Loan Facility from 'CRISIL D')
The upgrade reflects the track record of the timely repayment of
the debt obligations owing to improvement in business risk profile
as reflected in the operating revenues in the range of INR300
million to 570 million over the past 3 years ended March 2014.
Further the company has Moderate financial risk profile as seen
from gearing of 1.1 times as on March 31 2014 and above debt
protection metrics reflected in Net Cash Accruals to Total Debt
(NCATD) and Interest Coverage Ratio of 2.42 times and 11 per cent
respectively. This is however constrained on account of stretched
liquidity owing to high working capital requirements.
Outlook: Stable
CRISIL believes that SE's financial risk profile will remain
moderate over the medium term due to large working capital
requirements. The outlook may be revised to 'Negative' if the
firm's financial risk profile deteriorates further, due to large,
debt-funded capital expenditure. Conversely, the outlook may be
revised to 'Positive' if the firm is able to diversify its
customer base and increase its net worth, while maintaining
current operating margins.
Established in 1977, Saudagar is a proprietorship firm promoted by
Mr. Ashraf Saudagar K Merchant. The firm manufactures Haj towels
and hosiery garments for men, women, and children, and exports
these products to the Middle East countries. The firm has
integrated operations, with facilities for knitting, stitching,
printing, and embroidering, manufacture of cotton yarn.
SHARU STEELS: ICRA Revises Rating on INR18cr Cash Credit to B+
--------------------------------------------------------------
ICRA has revised its long-term rating on the INR18.48 crore fund
based bank facilities of Sharu Steels (P) Ltd. to [ICRA]B+ from
[ICRA]BB-. ICRA has reaffirmed its short-term rating of [ICRA]A4
on the INR16 crore non fund based bank facilities of SSPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 18.00 [ICRA]B+;Revised from
[ICRA]BB- (Stable)
Term Loan 0.48 [ICRA]B+;Revised from
[ICRA]BB- (Stable)
Letter of Credit 16.00 [ICRA]A4; Reaffirmed
The rating revision is driven by the weakening in the financial
profile of the company due to the decline in its operating income
in FY2014 and increase in its working capital intensity owing to
increase in the receivables collection period. Further, the
resultant increase in working capital requirements has been funded
mainly through bank borrowings, leading to a highly leveraged
capital structure. The ratings also factor in the company's
moderate scale of operations, which coupled with the high
competitive intensity has resulted in thin profitability and weak
debt coverage indicators (as reflected in Total Debt/ OPBDITA of
9.91 times and net cash accruals/total debt ratio of 2% for
FY2014). The ratings also take into account the vulnerability of
the company's profitability to adverse movements in raw material
prices (mainly steel scrap) as bulk of the procurement is not
order backed. However, the ratings continue to derive comfort from
the extensive experience of the promoters in the steel industry;
proximity of the plant to Mandi Gobindgarh (established steel
market of India) which ensures easy availability of raw material;
partial backward integration into manufacturing of ingots, which
provides some support to operating margins and the company's large
customer base.
Going forward, the ability of the company to scale up its revenues
while maintaining adequate profitability, optimally manage its
working capital cycle and maintain a prudent capital structure,
will be the key rating sensitivities.
Incorporated in 1991, SSPL is a closely held company engaged in
manufacturing of steel ingots and rolling them into rounds and
other steel products. The manufacturing facility of the company is
located in Ludhiana, Punjab. The company has an induction furnace
with a capacity of 25, 000 tonnes per annum (tpa) and a rolling
mill with a capacity of 20,000 tpa.
Recent Results
The company reported a profit after tax (PAT) of INR0.15 crore on
an operating income of INR78.42 crore in FY2014 as against a PAT
of INR0.24 crore on an operating income of INR93.09 crore in the
previous year.
SIDANA EDUCATIONAL: CRISIL Suspends D Rating on INR61.5MM Loan
--------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of
Sidana Educational and Welfare Society (SEWS).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 61.5 CRISIL D
The suspension of rating is on account of non-cooperation by SEWS
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SEWS is yet to
provide adequate information to enable CRISIL to assess SEWS's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.
Sidana Educational and Welfare Society was setup in the year 2006
by Mr. Mohinder Paul Sidana and Mrs. Jeewan Sidana at Amritsar,
Punjab. The society is engaged in imparting education at various
levels which include primary education, technical education.
SOLAR TECHNOLOGIES: CRISIL Suspends B- Rating on INR127MM Loan
--------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of HHV
Solar Technologies Pvt Ltd (HHV Solar).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 100 CRISIL A4
Cash Credit 200 CRISIL B-/Stable
Letter of Credit 100 CRISIL A4
Proposed Long Term
Bank Loan Facility 91.5 CRISIL B-/Stable
Term Loan 127 CRISIL B-/Stable
The suspension of ratings is on account of non-cooperation by HHV
Solar with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, HHV Solar is yet
to provide adequate information to enable CRISIL to assess HHV
Solar's ability to service its debt. The suspension reflects
CRISIL's inability to maintain a valid rating in the absence of
adequate information. CRISIL considers information availability
risk as a key credit factor in its rating process and non-sharing
of information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
Set up in 2007, HHV Solar manufactures solar photovoltaic modules
at its facility in Bangalore and primarily caters to customers
within India.
SRI LAKSHMI: ICRA Suspends B Rating on INR8cr Bank Loan
-------------------------------------------------------
ICRA has suspended long term rating of [ICRA]B and short term
rating of [ICRA]A4 assigned to INR8.00 crore bank facilities of
Sri Lakshmi Narasimha Raw and Boiled Rice Mill. The suspension
follows ICRA's inability to carry out a rating surveillance in the
absence of the requisite information from the firm.
SRI SANTHOSHI: ICRA Assigns B Rating to INR8cr Fund Based Loan
--------------------------------------------------------------
ICRA has assigned [ICRA]B to the INR8.00 crore long term fund
based limits and INR2.00 crore unallocated limits of Sri Santhoshi
Matha Cotton Industries.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Fund 8.00 [ICRA]B assigned
Based Limits
Long Term 2.00 [ICRA]B assigned
Unallocated
Limits
The rating assigned takes into account the small scale of SSMCI's
operations with 36 Gins and the recent commencement of operations
in the month of April-2014. The rating is further constrained by
the high competitive intensity primarily due to fragmented nature
of the industry limiting the pricing power and the vulnerability
of the firm to regulatory risks with regard to minimum support
price for kapas and export restrictions on kapas and yarn. The
rating also takes into account the risks inherent in partnership
firm including the risk of capital withdrawal. The rating,
however, favourably takes into account the long standing
experience of promoters in the cotton trading industry and
presence of the plant in the cotton growing region of Nalgonda
District in Telangana which provides easy access to raw material.
The ability of the firm to successfully ramp up the operations
while managing it's working capital requirement remains the key
rating sensitivity.
Setup in April 2014, M/s Sri Santhoshi Matha Cotton Industries is
engaged in cotton ginning and pressing with a capacity of 36 gins,
2 kappas cleaner, 2 lint cleaner and 1 double pressing machine
located in Nalgonda district of Telangana. The promoters
Mr.G.Ramesh, Mr.S.Venkanna, Mr.N Jaiveer Rao and Mr. G.
Chandrasekhar have an experience of 15 years in Kapas and lint
trading. The firm's major products include cotton lint and cotton
seeds.
SRI VENKATESWARA: CRISIL Suspends B Rating on INR50MM Cash Loan
---------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Sri Venkateswara Traders (SVT).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL B/Stable
The suspension of ratings is on account of non-cooperation by SVT
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SVT is yet to
provide adequate information to enable CRISIL to assess SVT's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
Sri Venkateswara Traders (SVT), established in 2007 by Mr.
Sirasani Srinivasa Rao, is engaged in the trading of chillies. The
firm procures chillies mainly from farmers and supplies to large
agricommodity exporters. The day-to-day operations of the firm are
managed by Mr. Srinivasa Rao. The firm has its registered office
at Guntur, Andhra Pradesh.
TOSHBRO MEDICALS: CRISIL Reaffirms B Rating on INR65MM Cash Loan
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Toshbro Medicals
Private Limited (TMPL) continue to reflect TMPL's modest scale of
operations in intensely competitive industry, below average
financial risk profile marked by low networth level, modest debt
protection indicators, and large working capital requirements.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 50 CRISIL A4 (Reaffirmed)
Cash Credit 65 CRISIL B/Stable (Reaffirmed)
These rating weaknesses are partially offset by TMPL's promoters'
extensive experience and established presence in the trading of
medical equipments.
Outlook: Stable
CRISIL believes that TMPL will benefit over the medium term from
its promoters' extensive experience in the industry. The outlook
may be revised to 'Positive' if TMPL reports significant and
sustainable growth in its revenues and profitability margins,
while improving its debt protection indicators and working capital
cycle. Conversely, the outlook may be revised to 'Negative' in
case of significantly lower-than expected revenues and operating
margin, or if its working capital cycle lengthens significantly,
impacting its financial risk profile.
TMPL was incorporated in 2001, by Mr. Arun Toshniwal and his son
Mr. Anurag Toshniwal. TMPL is engaged in the trading of medical
equipments primarily related to Ophthalmology, Neurosurgery,
Dentistry and ENT. The company is based out of Mumbai
(Maharashtra).
For 2013-14 (refers to financial year, April 1 to March 31), TMPL
reported a net profit of INR7.8 million on net sales of INR329.5
million, as against a net profit of INR3.5 million on net sales of
INR289.5 million for 2012-13.
VAST INDUSTRIES: ICRA Suspends B Rating on INR3.75cr Cash Credit
----------------------------------------------------------------
ICRA has suspended the [ICRA] B rating assigned to the INR5.0
crore facilities of Vast Industries Private 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
---------- ----------- -------
Cash Credit 3.75 [ICRA]B Suspended
Term Loan 1.25 [ICRA]B Suspended
Vast Industries Private Limited (VIPL) was incorporated on
May 2, 2012 by Mr. Vikas Chandel, Mr. Vivek Chandel and Mr.
Praveen Awatade. VIPL is engaged in the business of manufacturing
of various kinds of leno bags, woven sacks, high density polythene
film, high- density polyethylene bags for packaging of bulk
agricultural commodities, mainly onions and potatoes.
VIKAS COTTON: CRISIL Assigns B Rating to INR85MM Cash Credit
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Vikas Cotton Industries Pvt Ltd (VCIPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 12 CRISIL B/Stable
Cash Credit 85 CRISIL B/Stable
Proposed Long Term
Bank Loan Facility 3 CRISIL B/Stable
The rating reflects VCIPL's modest scale of operations in the
highly fragmented cotton industry, and its weak financial risk
profile, marked by a modest net worth, high gearing, and weak debt
protection metrics. These rating weaknesses are partially offset
by the extensive experience of the company's promoters in the
cotton industry, and the proximity of its production facility to
the cotton-growing belt of Gujarat.
Outlook: Stable
CRISIL believes that VCIPL will continue to benefit over the
medium term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the company significantly
improves its scale of operations and profitability, or if there is
sizeable capital infusion by its promoters, leading to a better
financial risk profile. Conversely, the outlook may be revised to
'Negative' if VCIPL's accruals are lower than expected, or if it
undertakes a substantial debt-funded expansion programme, or if
its working capital management weakens, resulting in significant
deterioration in its financial risk profile.
VCIPL, based in Kadi (Gujarat), was incorporated in 2005 and
promoted by the Patel family. The company is engaged in ginning
and pressing of raw cotton. It has its facility at Kadi, with a
capacity of more than 350 bales of cotton per day.
VCIPL reported a net profit of INR1.04 million on an operating
income of INR928.65 million for 2013-14 (refers to financial year,
April 1 to March 31), against a net profit of INR0.8 million on an
operating income of INR603.30 million for 2012-13.
=================
I N D O N E S I A
=================
BUMI RESOURCES: S&P Lowers LT Corporate Credit Rating to 'D'
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term corporate
credit rating and ASEAN regional scale rating on PT Bumi Resources
Tbk. to 'D' from 'SD'.
S&P also lowered its long-term issue rating to 'D' from 'CCC-' on
the US$300 million senior secured notes due 2016 that the
Indonesia-based coal mining company Bumi Resources guarantees.
Bumi Capital Pte. Ltd., a subsidiary, issued the notes. S&P
removed the issue rating from CreditWatch, where it was placed
with negative implications on Aug. 13, 2014.
At the same time, S&P maintained its 'D' issue rating on the
US$700 million senior secured notes due 2017 that another Bumi
Resources' subsidiary, Bumi Investment Pte. Ltd., issued. Bumi
Resources guarantees these notes too. The notes remain in default
because interest on these notes remains unpaid after the due date.
"We lowered the corporate credit rating on Bumi Resources to 'D'
because we do not expect the company will service any of its debt
obligations for at least the next six months. We assess this to
be a general default," said Standard & Poor's credit analyst
Vishal Kulkarni.
This comes after a Singapore court approved Bumi Resources
subsidiaries' request for a six-month moratorium against legal and
enforcement actions by noteholders to facilitate debt
restructuring efforts. This moratorium will also mean the company
will not service any of its other debt obligations, including bank
loans, as per the intercreditor agreement.
"Because of the moratorium, we believe Bumi Resources will not pay
the interest on the US$300 million in notes within the grace
period that ends on Dec. 10, 2014," Mr. Kulkarni said.
S&P will reassess the ratings on completion of any restructuring.
The ratings would then take into account the group's business
prospects and prospective capital structure after the completion
of debt restructuring.
*********
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
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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 ***