/raid1/www/Hosts/bankrupt/TCRAP_Public/150401.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
Wednesday, April 1, 2015, Vol. 18, No. 064
Headlines
A U S T R A L I A
ABC LEARNING: Former CFO Gets 18-Mos. Jail Sentence
INDOCHINE MINING: Ferrier Hodgson Named as Administrators
QUICK COLOUR: Placed in Liquidation
SHORELINE DESIGNER: First Creditors' Meeting Slated For April 8
WOODLEIGH STATION: First Creditors' Meeting Set For April 8
ZEHNDER GLUTEN: In Voluntary Admin.; Creditors Meeting on April 8
ZUILL CONSULTING: Creditors Meeting Set for April 10
I N D I A
ACE KUDALE: CRISIL Reaffirms B Rating on INR187MM Loan
ANIL CORNER: CRISIL Assigns B+ Rating to INR55MM Cash Loan
ARJUN PULP: CRISIL Reaffirms B+ Rating on INR226MM LT Loan
ARNAV TECHNOSOFT: ICRA Revises Rating on INR15cr Bank Loan to D
AVYAAN ORNAMENT: CRISIL Cuts Rating on INR1.0BB Packing Loan to D
BALAJEE PLY: ICRA Assigns B- Rating to INR3.3cr Cash Credit
BENGAL SHRACHI: ICRA Revises Rating on INR114.15cr Loan to D
CONFEDERATION FOR: CRISIL Cuts Rating on INR71.4MM Loan to D
DASVE HOSPITALITY: CARE Reaffirms D Rating on INR27.17cr LT Loan
DEVANSH INDUSTRIES: ICRA Suspends D Rating on INR9cr FB Loan
DHENU HYDRO: CRISIL Cuts Rating on INR69.7MM Bank Loan to D
DIPU ENTERPRISES: CRISIL Assigns B+ Rating to INR45MM Cash Loan
ECOMOTEL HOTEL: CARE Lowers Rating on INR13.95cr LT Loan to D
GDJD EXPORTS: ICRA Assigns B+ Rating to INR8cr LT Loan
GIRIRAJ JEWELLERS: CRISIL Assigns B Rating to INR59MM Bank Loan
KEAUM ORGANICS: CRISIL Cuts Rating on INR41.7MM Loan to B-
KNOWLEDGE VISTAS: CARE Lowers Rating on INR14cr LT Loan to D
M L RICE: ICRA Reaffirms B+ Rating on INR20cr Fund Based Loan
MAHENDRA PUMPS: CRISIL Cuts Rating on INR50MM Cash Loan to B+
MANGALAM DRUGS: CRISIL Ups Rating on INR315MM Cash Loan to B+
MLM INFRA: CRISIL Assigns B+ Rating to INR35MM Cash Credit
NADAHALLI AGRO: ICRA Assigns B Rating to INR20cr e-Cash Credit
NARULA TOOLS: ICRA Assigns B Rating to INR6cr Long Term Loan
NATIONAL CAPSULES: CRISIL Reaffirms B Rating on INR72MM LT Loan
ORCHID CURE: CRISIL Assigns B+ Rating to INR105MM Term Loan
P B NIRMAN: CRISIL Reaffirms D Rating on INR90MM Cash Credit
POLY PRODUCTS: CRISIL Assigns B Rating to INR30MM Bank Loan
RATTAN POLYCHEM: CRISIL Suspends D Rating on INR45MM Cash Loan
SARAYA INDUSTRIES: CRISIL Assigns D Rating to INR373.1MM Loan
SHREE MAHAVIR: CRISIL Assigns D Rating to INR85MM Cash Credit
SHRI BALAJI: CRISIL Assigns B+ Rating to INR97.5MM Cash Loan
SHRINE VAILANKANNI: CRISIL Reaffirms B+ Rating on INR120MM Loan
SHYAM GINNING: CRISIL Rates INR275M Loan at B; Suspension Revoked
YADAV SOLVEX: CRISIL Assigns B Rating to INR82.5MM Term Loan
I N D O N E S I A
ANTAM (PERSERO): S&P Revises Outlook to Stable & Affirms 'B-' CCR
N E W Z E A L A N D
ALBANY HEIGHTS: Liquidators Mull Suing Lawyer
WAIMEA CONTRACT: PwC Appointed as Administrators
S I N G A P O R E
* Reed Smith Adds Bankruptcy Partner, Energy Counsel in Singapore
- - - - -
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A U S T R A L I A
=================
ABC LEARNING: Former CFO Gets 18-Mos. Jail Sentence
---------------------------------------------------
The former chief financial officer of ABC Learning Centres
Limited, James Black, was on March 30 sentenced in the Brisbane
District Court to a charge brought by Australian Securities and
Investment Commission.
Mr. Black was sentenced to 18 months imprisonment, wholly
suspended, to be released forthwith to enter into a good behaviour
bond for two years with AUD2,000 recognisance.
Mr. Black had earlier pleaded guilty to one rolled up count of
making available false or misleading information about the affairs
of ABC that he knew to be false or misleading in material
particulars.
The charge related to information being made available to an
auditor from Pitcher Partners who was conducting the half year
audit review of ABC accounts for the period ending 31 December
2006.
In December 2006, ABC announced the purchase of La Petite Academy
in the United States for US$330 million and Busy Bees Group Ltd in
the United Kingdom for GPB71 million.
ASIC alleged that Mr. Black gave -- or authorised the giving of
-- two engagement letters between two ABC-related companies
(Learning Care Group (UK) and Learning Care Group Inc (USA)) and
ABC Acquisitions Pty Ltd (ABC Acquisitions) which contained
information that he knew was false or misleading in material
particulars (specifically, information about the terms of
commissions payable to ABC Acquisitions arising from the purchase
of the two entities by ABC in December 2006). The engagement
letters were provided to the auditor during the audit, as part of
a number of documents used by ABC to justify the payments being
made to ABC Acquisitions.
ABC Acquisitions received AUD33 million in respect of the purchase
of La Petite Academy and AUD13.5 million in respect of the Busy
Bees Group purchase. The information was false and misleading in
that ABC Acquisitions did not identify La Petite Academy as an
acquisition target and was not involved in the approach and
negotiation process for its acquisition. In addition, ABC
Acquisitions had not presented Busy Bees as an acquisition target
and was not involved in the approach and negotiation process of
the Busy Bees transaction. Mr Black was aware that ABC
Acquisitions had not been engaged by ABC to provide these
services.
ASIC Commissioner John Price said, "The accuracy and reliability
of financial reports is key to confident and informed market
participation. ASIC will act against conduct by company officers
which undermines that confidence and places other interests ahead
of the shareholder interests they are meant to represent."
The Commonwealth Director of Public Prosecutions prosecuted the
matter.
ABC Acquisitions Pty Ltd was a private company and was not a
related entity of any ABC Learning Centres Limited company. Mr Don
Jones was the sole director of ABC Acquisitions.
An engagement letter is a form of contract that was specific to
this matter.
On December 14, 2006, ABC issued an ASX announcement referring to
the acquisition of the overseas transactions involving Busy Bees
Group in the United Kingdom and La Petite Academy in the United
States.
About ABC Learning
Based in Australia, ABC Learning Centres Limited (ASX: ABS) --
http://www.childcare.com.au/-- provides childcare services and
education in more than 1,200 centers in Australia, New Zealand,
the United States and the United Kingdom. The Company's
subsidiaries include A.B.C. Developmental Learning Centers Pty
Ltd., A.B.C. Early Childhood Training College Pty Ltd., Premier
Early Learning Centers Pty Ltd., A.B.C. Developmental Learning
Centers (NZ) Ltd., A.B.C. New Ideas Pty Ltd., A.B.C. Land Holdings
(NZ) Limited and Child Care Centers Australia Ltd. On Jan. 26,
2007, it acquired La Petite Holdings Inc. On Feb. 2, 2007, it
acquired Forward Steps Holdings Ltd. On March 23, 2007, it
acquired Children's Gardens LLP. In September 2007, the Company
purchased the Nursery division (Leapfrog Nurseries) from Nord
Anglia Education PLC. In June 2008, the Company completed the
sale of a 60% stake in its United States business to Morgan
Stanley Private Equity.
In November 2008, ABC Learning Centres Limited appointed Peter
Walker and Greg Moloney of Ferrier Hodgson as voluntary
administrators of the company and a number of its subsidiaries.
Subsequent to the appointment of administrators, the company's
banking syndicate appointed Chris Honey, Murray Smith and John
Cronin of McGrathNicol as receivers.
The Administrators filed a Chapter 15 petition for the Company
(Bankr. D. Del. Case No. 10-11711) on May 26, 2010. Joel A.
Waite, Esq., at Young, Conaway, Stargatt & Taylor, represents the
Petitioners in the Chapter 15 case. ABC's debts and assets were
estimated to be between US$100 million and US$500 million.
A separate Chapter 15 petition was filed for affiliate A.B.C.
USA Holdings Pty Ltd., listing assets and debts of at least
US$100 million.
In June 2010, ABC Learning creditors in Australia voted to wind
up the failed childcare provider.
INDOCHINE MINING: Ferrier Hodgson Named as Administrators
---------------------------------------------------------
Martin Bruce Jones, Darren Gordon Weaver and Benjamin Michael
Johnson of Ferrier Hodgson were appointed as administrators of
Indochine Mining Limited on March 27, 2015.
"The Administrators are working with the directors in reviewing
the Company's operations and financial position including
conferral with the Company's secured lender in respect to the Mt
Kare Project funding," Mr. Jones said in a statement. "We also
take this opportunity to advise that Kevin Hart on March 30
resigned as Company Secretary. We wish Kevin well with his other
endeavours and note that Ashok Jairath is continuing as Company
Secretary."
Australia-based Indochine Mining Limited (ASX:IDC) --
http://www.indochinemining.com/-- is a gold development company.
The Company is engaged in the development of a gold mine, the Mt
Kare Gold/Silver project in the highlands of Papua New Guinea
(PNG). The Company's flagship 2.1 million ounce Mt Kare
gold/silver resource is 100% owned and held through its wholly
owned PNG subsidiary, Summit Development Limited. The deposit lies
contains around 28 million ounces of gold (including a total of 17
million ounces of gold mined). The deposit lies southwest of
Porgera gold mine. The Mt Kare projects' total Mineral Resource is
around 43 Million tons at 1.5 grams per ton Gold for 2.1 ounces
Gold, 18 Million ounces Silver based on 454 diamond drill holes.
The Company's Ratanakiri Project has centers associated with
copper and gold mineralisation within the eroded zone of Permo-
Triassic meta-sediments and volcanics. The project holds alluvial
gold workings and hosts rocks for tonnage deposits. It also holds
a package of mineral leases in Cambodia.
QUICK COLOUR: Placed in Liquidation
-----------------------------------
Cliff Sanderson at Dissolve.com.au reports that Quick Colour Print
Pty Ltd, a print franchise group, is currently in liquidation.
Bryan Kevin Hughes and Daniel Bredenkamp of Pitcher Partners have
been appointed liquidators of the company on
March 16, 2015.
Dissolve.com.au relates that a number of the company's stores are
still trading which include East Perth and Geraldton franchisees.
Quick Colour Print was founded 25 years ago. A year ago, it had
eight stores but the past twelve months has seen many of them shut
down, the report says. Stores of the company in Western Australia
are located in Morley, Gosnells, North Perth, Midland and Perth
Esplanage Busport.
SHORELINE DESIGNER: First Creditors' Meeting Slated For April 8
---------------------------------------------------------------
Jack Robert James -- jjames@palisadebc.com -- of Palisade Business
Consulting was appointed as administrator of Shoreline Designer
Homes Pty Ltd on March 27, 2015.
A first meeting of the creditors of the Company will be held at
Palisade Business Consulting Pty Ltd, Level 1, 330 Churchill
Avenue, in Subiaco, West Australia, on April 8, 2015, at
10:00 a.m.
WOODLEIGH STATION: First Creditors' Meeting Set For April 8
-----------------------------------------------------------
Jack Robert James of Palisade Business Consulting was appointed as
administrator of Woodleigh Station Pty Ltd, trading as Pilbara
Glass Karratha, on March 27, 2015.
A first meeting of the creditors of the Company will be held at
Palisade Business Consulting Pty Ltd, Level 1, 330 Churchill
Avenue, in Subiaco, West Australia, on April 8, 2015, at
11:00 a.m.
ZEHNDER GLUTEN: In Voluntary Admin.; Creditors Meeting on April 8
-----------------------------------------------------------------
Eloise Keating at SmartCompany reports that Zehnder Gluten Free
has collapsed into voluntary administration.
Zehnder Gluten Free was established by Josef Zehnder and his
family on Queensland's Sunshine Coast in 2007.
Zehnder Gluten Free makes and supplies gluten-free breads, cakes
and pasta to major supermarkets and independent retailers and
eateries across Australia, as well as exporting to New Zealand and
countries in Asia and Europe. It has won several awards, including
the Telstra Business Awards for Queensland Innovation in 2011.
But less than three years after investing more than AUD5 million
in a new production centre at the Big Pineapple complex on the
Sunshine Coast, Zehnder Gluten Free has entered voluntary
administration, SmartCompany says.
Terrance Rose and Anne Meagher of SV Partners were appointed
administrators of Zehnder Gluten Free and related entity Zehnder
Dezentje on March 26, according to SmartCompany.
Mr. Rose confirmed to SmartCompany Zehnder Gluten Free is still
trading, continuing to supply products to its local supermarket
clients and maintaining its export business.
According to the report, Mr. Rose said it is too early to discuss
the reasons why the business has entered administration and was
unable to comment on the company's turnover.
SmartCompany relates that Zehnder Gluten Free currently employs 10
people and Mr. Rose said a restructure of the company is one
possible outcome of the administration process, but the
administrators will "explore all options", including selling the
business as a going concern.
The first meeting of creditors is scheduled to be held in
Maroochydore on April 8, the report notes.
ZUILL CONSULTING: Creditors Meeting Set for April 10
----------------------------------------------------
Timothy Clifton and Mark Hall of Clifton Hall were appointed Joint
and Several Liquidators of Zuill Consulting Services Pty Ltd on
March 30, 2015.
A meeting of creditors will be held at 10:30 a.m. on April 10,
2015, at Clifton Hall, Level 3, 431 King William Street, in
Adelaide.
=========
I N D I A
=========
ACE KUDALE: CRISIL Reaffirms B Rating on INR187MM Loan
------------------------------------------------------
CRISIL's ratings on the bank facilities of Ace Kudale Car Pvt Ltd
(AKCPL) continue to reflect AKCPL's weak financial risk profile,
marked by accumulated losses and weak debt protection measures,
and large working capital requirements.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 10 CRISIL A4 (Reaffirmed)
Cash Credit 35 CRISIL B/Stable (Reaffirmed)
Inventory Funding
Facility 187 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 12.7 CRISIL B/Stable (Reaffirmed)
Term Loan 35.3 CRISIL B/Stable (Reaffirmed)
The ratings also factor in the company's low bargaining power with
its principal, Maruti Suzuki India Ltd (MSIL), and competitive
pressures from other four-wheeler vehicle dealers. These rating
weaknesses are partially offset by the funding support that AKCPL
gets from its promoters.
Outlook: Stable
CRISIL believes that AKCPL will continue to benefit over the
medium term from its established relationship with its principal
and continued funding support from the promoters. The outlook may
be revised to 'Positive' if AKCPL reports considerable increase in
its revenue and profitability, and sustained improvement in its
capital structure over the medium term. Conversely, the outlook
may be revised to 'Negative' in case of deterioration in the
company's financial risk profile, most likely because of large
working capital requirements or low cash accruals.
Incorporated in 2007 by the Kudale family, AKCPL began operations
in 2010 with a dealership for MSIL's vehicles. AKCPL has one owned
showroom-cum-workshop at Manjri on the Pune-Solapur highway
(Maharashtra), and a workshop on rented premises at Bhosari, on
the Pune-Nashik highway.
ANIL CORNER: CRISIL Assigns B+ Rating to INR55MM Cash Loan
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facility of Anil Corner (AC).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 55 CRISIL B+/Stable
The rating reflects AC's modest scale of operations in a
competitive and fragmented industry, the firm's large working
capital requirements, and subdued financial risk profile marked by
modest net worth, large external debt, and weak debt protection
metrics. These rating weaknesses are partially offset by the
extensive experience of AC's promoter in the trading industry and
his established relationships with customers and suppliers.
Outlook: Stable
CRISIL believes that AC will continue to benefit over the medium
term from its promoter's extensive industry experience. The
outlook may be revised to 'Positive' in case of substantial
increase in the firm's scale of operations and profitability, or
fund infusion by its promoter, leading to improvement in its
financial risk profile. Conversely, the outlook may be revised to
'Negative' in case of decline in the firm's scale of operations
and profitability or stretch in its working capital cycle,
weakening its financial risk profile.
Set up in 1990, AC is a sole proprietorship firm of Mr. Dinesh G.
Bhojwani. The firm trades in hardware fittings, bathroom fittings,
and modular kitchen fittings, and has three showrooms in Nagpur
(Maharashtra).
For 2013-14 (refers to financial year, April 1 to March 31), AC
reported a net profit of INR2.1 million on net sales of INR213.1
million, as against a net profit of INR1.7 million on net sales of
INR94.0 million for 2012-13.
ARJUN PULP: CRISIL Reaffirms B+ Rating on INR226MM LT Loan
----------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Arjun Pulp and
Paper India Pvt Ltd (APPPL) continues to reflect the risks related
to APPPL's project implementation and the start-up phase of its
business. These rating weaknesses are partially offset by the
extensive industry experience of APPPL's promoters and their
funding support.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long Term Loan 226 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that APPPL will continue to benefit from its
promoters' extensive industry experience over the medium term. The
outlook may be revised to 'Positive' in case the company reports
higher cash accruals along with efficient working capital
management, resulting in significant improvement in its credit
risk profile. Conversely, the outlook may be revised to 'Negative'
in case APPPL reports lower than expected revenues leading to low
cash accruals or its working capital requirements increase or it
undertakes a large debt-funded capital expenditure.
APPPL, based in Tirunelveli (Tamil Nadu), is setting up a unit to
manufacture tissue paper. The plant is expected to commence
commercial operations in April 2015. The company is promoted by
Mr. Chandra Sekhar.
ARNAV TECHNOSOFT: ICRA Revises Rating on INR15cr Bank Loan to D
---------------------------------------------------------------
ICRA has revised its long term rating on the INR15.00 crore
fund based bank facilities of Arnav Technosoft Private Limited
(ATPL) to [ICRA]D from [ICRA]B.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based bank limits 15.00 [ICRA]D; revised
The revision in the rating takes into account the recent delays in
debt servicing on account of stretched liquidity position of the
company. ATPL's project has witnessed slow physical progress with
time overrun of around one year vis-a-vis the scheduled commercial
operation date of March 2015 (as per the terms of loan sanction).
While the pace of work has picked up since December 2014, the
company however continues to remain exposed to high likelihood of
further time and cost overruns as the company is yet incur more
than 20% of the pending costs (as on February 2015). This apart,
funding risk exists given the pending reschedulement of loan in
absence of which ATPL will remain dependent on promoter funding
support. This is crucial as the repayment of the principal
obligations is scheduled to commence from April 1, 2015. ICRA also
notes that the pace of construction going forward is highly
contingent on the timely disbursement of the pending loan amount,
which further adds to the funding pressures for the company.
Positive developments on the above concerns would be critical to
ease the liquidity pressure in near term and would be the key
rating monitorables.
Notwithstanding the favourable location of the project, ATPL also
continues to remain exposed to high market risk for the above
project as the company is yet to enter into any lease agreement
for the proposed corporate office space. In the event of sub-
optimal tenant occupancies, liquidity position of the company is
likely to stretch and necessitate additional funding from the
promoters/group companies for servicing of debt obligations. In
ICRA's view, ability of the company to complete the project while
minimizing time and cost overruns as well as timely funding
support from the promoter group to support any shortfalls for
project completion as well as debt servicing obligations would be
critical determinants for the liquidity position of the company in
the short term. This apart, the ability of the company to achieve
optimal rentals and tenancy would be the key rating sensitivities.
Incorporated in 2007, ATPL is a real estate developer and is
executing its maiden project in Noida (Uttar Pradesh). The project
involves construction of a corporate office building in Sector 16
A in Noida. ATPL is part of the SDS group which is engaged into
real estate construction spanning across
group housing projects, integrated townships, commercial space and
IT park in Noida and Greater Noida regions of Uttar Pradesh. The
group is headed by Mr. Deepak Bansal and Mrs. Anshul Bansal.
AVYAAN ORNAMENT: CRISIL Cuts Rating on INR1.0BB Packing Loan to D
-----------------------------------------------------------------
CRISIL has downgraded its rating on the short term bank facilities
of Avyaan Ornament Private limited (AOPL) to 'CRISIL D' from
'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Export Packing Credit 1,000 CRISIL D (Downgraded
from 'CRISIL A4')
The rating downgrade reflects continuous overutilization of its
export packing credit facilities for over 30 days owing to
stretched liquidity.
The rating also reflects its below-average financial risk profile
on account of leveraged capital structure and modest interest
coverage ratio as well as start- up nature and working capital
intensive operation. These weaknesses are partially offset by
extensive experience of the promoters in the jewellery industry.
Set up in 2013-14, Avyaan Ornaments Private Limited (AOPL) is a
pvt. Ltd. company based out of Mumbai. AOPL is set up by promoters
of KBJ group. Key promoter is Mr. Mohit Kamboj, a third generation
entrepreneur, and is engaged in the business of manufacturing gold
ornaments such as kundan jewellery as well as necklaces,
bracelets, earrings, bangles and other type of related allied
products.
BALAJEE PLY: ICRA Assigns B- Rating to INR3.3cr Cash Credit
-----------------------------------------------------------
ICRA has assigned its long term rating of [ICRA]B- to the INR4.90
crore fund based bank facilities of Balajee Ply Product Private
Limited. ICRA has assigned its short term rating of [ICRA]A4 to
the INR2.0 crore non fund based bank facilities of BPP. ICRA has
also assigned its long-term rating of [ICRA]B- and its short term
rating of [ICRA]A4 to the INR0.20 crore unallocated bank
facilities of BPP.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Fund Based
Facility-Cash credit 3.30 [ICRA]B- ; Assigned
Long-term Fund Based
Facility-Term Loan 1.60 [ICRA]B- ; Assigned
Short-term Non-Fund
Based Facility- Bank
Guarantee 2.00 [ICRA]A4; Assigned
Unallocated 0.20 [ICRA]B-/[ICRA]A4; Assigned
ICRA's ratings are constrained by the highly competitive nature of
the industry that BPP operates in, and the limited value-add
nature of business which keeps the profitability of the company
range bound.
The company's profitability is also exposed to adverse
fluctuations in exchange rates, as it has a significant dependence
on imports for meeting its raw material requirements and does not
have a hedging mechanism in place. Further, the revenues of the
company are dependent on the housing/construction industry,
thereby rendering the company vulnerable to any slowdown in the
sector. ICRA also takes note of the company's modest scale of
operations, its elevated TOL/TNW and its thin DSCR. However, the
ratings favourably take into account the extensive track record of
the promoters in plywood manufacturing and its established
relationship with suppliers and distributors, along with its pan
India presence.
Going forward the ability of the company to scale up its
operations while reducing its working capital requirements, along
with improving its coverage indicators will be the key rating
sensitivities.
BPP was incorporated in 1997 and is promoted by Mr. Sumeer Chand
Jain. The company trades in timber and manufactures plywood at its
facility in Jaipur, Rajasthan. Raw materials (timber, veneer,
adhesives and chemicals) are imported from Hong Kong and Singapore
based suppliers and also procured locally from traders. Plywood
and timber are sold to wholesale distributors/dealers across
India.
BENGAL SHRACHI: ICRA Revises Rating on INR114.15cr Loan to D
------------------------------------------------------------
ICRA has revised the long term rating assigned to the INR114.15
crore term loans of Bengal Shrachi Housing Development Limited
(BSHDL) to [ICRA]D from [ICRA]BB+.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 114.15 Revised to [ICRA]D from
[ICRA]BB+ (Stable)
The rating action primarily factors in the recent delays in
repayment of the term loan installments of a certain lender by
BSHDL.
The real estate development activities of the Shrachi Group
started with the incorporation of Bengal Shrachi Housing
Development Limited (BSHDL), a joint sector enterprise of the West
Bengal Housing Board (WBHB) in 1997. The objective of BSHDL was to
supplement the efforts of the West Bengal Government to meet the
housing needs in the State. As on date, BSHDL has completed five
residential projects namely Greenwood Nook, Greenwood Park,
Greenwood Park extension, Greenwood Sonata and Greenwood Elements,
and three commercial projects -- Junction mall in Durgapur, Block
by Block in NewTown and Synthesis Business Park at Rajarhat.
Recent Results
During 2013-14, BSHDL recorded a net loss of INR13.47 crore on the
back of an operating income (OI) of INR33.31 crore. During 2012-
13, the company posted an OI and profit after tax of INR95.81
crore and INR0.23 crore respectively.
CONFEDERATION FOR: CRISIL Cuts Rating on INR71.4MM Loan to D
------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Confederation For Ayurvedic Renaissance-Keralam Ltd (CARe-K) to
'CRISIL D' from 'CRISIL B+/Stable'. The rating downgrade reflects
delays by CARe-K in servicing its term loan; the delays were
because of the company's weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 30 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Term Loan 71.4 CRISIL D (Downgraded from
'CRISIL B+/Stable')
CARe-K's operations are in an early stage with large working
capital requirements. Moreover, the company has a below-average
financial risk profile, marked by weak debt protection metrics.
However, CARe-K benefits from its association with the Government
of Kerala.
Set up in 2008 as a public limited company, CARe-K is a joint
venture between Kerala Industrial Infrastructure Development
Corporation (KINFRA) and ayurvedic manufacturers in Kerala. The
company is engaged in creating infrastructure facilities for the
standardisation of ayurvedic medicines and services. The project,
set up in KINFRA Industries Park, Koratty, Thrissur (Kerala),
commenced commercial operations from December 2011.
DASVE HOSPITALITY: CARE Reaffirms D Rating on INR27.17cr LT Loan
----------------------------------------------------------------
CARE reaffirms rating assigned to bank facilities of Dasve
Hospitality Institutes Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 27.17 CARE D Reaffirmed
Rating Rationale
The reaffirmation of the rating assigned to the bank facilities of
Dasve Hospitality Institutes Limited (DHIL) takes into account the
recent delays in servicing of interest and installment obligations
on the restructured term loan. The rating is further constrained
on account of low level of enrollment at the institute.
DHIL's ability to scale up operations through higher enrollment of
students, timely servicing of interest obligations and repayment
of principal payments arising from FY16 (refers to the period
April 1 to March 31) are the key rating sensitivities.
DHIL is a wholly-owned subsidiary of Lavasa Corporation Limited
(LCL, rated 'CARE C/CARE D' for its bank facilities and
instruments) floated as a special purpose vehicle. LCL is a part
of Hindustan Construction Company Limited (HCC, rated 'CARE D/CARE
C' for its bank facilities and instruments); HCC holds 63.50%
stake in LCL. DHIL operates a hospitality management institute
under the brand name 'Ecole Hoteliere Lavasa'. The institute is
set-up and managed in accordance with arrangement with Ecole
Hoteliere de Lausanne, Switzerland. The institute can enroll
maximum of 840 students and is currently operating with 76
students.
During FY14, due to high interest expense and capital cost, DHIL
reported a net loss of INR12.18 crore on total operating
income of INR3.06 crore vis-a-vis net loss of INR1.92 crore and
total operating income of INR2.93 crore in FY13. Also in
9MFY15, DHIL reported net loss of INR10.00 crore on a total
operating income of INR2.59 crore.
DEVANSH INDUSTRIES: ICRA Suspends D Rating on INR9cr FB Loan
------------------------------------------------------------
ICRA has suspended [ICRA]D rating assigned to the INR9.00 crore of
fund based limits of Devansh Industries. The suspension follows
ICRA's inability to carry out a rating surveillance in the absence
of the requisite information from the company.
Devansh Industries was established in 2003 as a proprietorship
concern with Mr. Virendra Ganatra as the proprietor, later on in
FY2011 it was re-established as partnership firm with Mr. Virendra
Banatra and Mr. Bharat Ganatra as partners. The firm is engaged in
trading of flat steel products namely TMT bars (thermo-mechanical
treatment), mild steel angel, mild steel bending wire, GI bending
wire etc.
The product line remains concentrated with TMT bars accounting for
90% of the total revenue while the remaining sales is through
others products.
DHENU HYDRO: CRISIL Cuts Rating on INR69.7MM Bank Loan to D
-----------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Dhenu Hydro Pvt Ltd (DHPL) to 'CRISIL D/CRISIL D' from 'CRISIL
B/Stable/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 69.7 CRISIL D (Downgraded from
'CRISIL A4')
Cash Credit 30 CRISIL D (Downgraded from
'CRISIL B/Stable')
Working Capital 20 CRISIL D (Downgraded from
Term Loan 'CRISIL B/Stable')
Proposed Bank 5.3 CRISIL D (Downgraded from
Guarantee 'CRISIL B/Stable')
The rating downgrade reflects instances of delay by DHPL in
servicing its debt. The delays have been caused by the weakening
of the company's liquidity, owing to a stretch in its working
capital cycle.
DHPL has a modest scale of operations in the intensely competitive
construction industry, has large working capital requirements, and
has a high degree of customer and project concentration in its
order book. However, the company benefits from its promoter's
extensive industry experience.
DHPL was set up in 2000 by Mr. Yella Reddy and his family members.
The company is executing a sub-contract order, received from IVRCL
Ltd, towards construction of canals and reservoirs in the Kadapa
region (Andhra Pradesh).
DIPU ENTERPRISES: CRISIL Assigns B+ Rating to INR45MM Cash Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Dipu Enterprises Pvt Ltd (DEPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 5 CRISIL B+/Stable
Cash Credit 45 CRISIL B+/Stable
Proposed Cash Credit
Limit 5 CRISIL B+/Stable
The rating reflects DEPL's working-capital-intensive nature of
operations, and below-average financial risk profile, marked by a
small net worth and weak debt protection metrics. These rating
weaknesses are partially offset by the extensive experience of the
company's promoters in the textile industry.
Outlook: Stable
CRISIL believes that DEPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' in case of a significant and
sustained increase in the company's scale of operations or
substantial equity infusion by its promoters, leading to
improvement in its financial risk profile. Conversely, the outlook
may be revised to 'Negative' if DEPL's profitability or revenue
declines or if its working capital cycle is stretched, leading to
weakening of its liquidity.
DEPL was established in 2005 with the merging of three family-run
firms-Dipu Enterprises (established in 1985), Dipu Fab (1994), and
Dipu Handloom (1997)-all involved in the same line of business.
DEPL manufactures women's dress material and kurtis, which it
sells in the organised retail market. The company is based in
Mumbai.
ECOMOTEL HOTEL: CARE Lowers Rating on INR13.95cr LT Loan to D
-------------------------------------------------------------
CARE revises rating assigned to bank facilities of Ecomotel Hotel
Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 13.95 CARE D Revised from
CARE C
Rating Rationale
The revision in the rating assigned to the bank facilities of
Ecomotel Hotel Limited (EHL) takes into account the recent delays
in servicing of interest and installment obligations. Due to lower
capacity utilisation and consequent reliance on high interest
bearing inter corporate deposits (ICDs) availed from group
companies for meeting cash flow shortfalls, liquidity of company
is severely impacted. As a result of the low utilisation, the
company continued to book losses during FY14 (refers to the period
April 1 to March 31) resulting in erosion of net-worth as on March
31, 2014.
The company's ability to scale-up operations, ensure healthy
profitability margins and infusion of equity from Celebration
Resorts and Hotels India Private Limited (Celebrations) and Lavasa
Corporation Limited (LCL, rated 'CARE C/CARE D' for its
bank facilities and instruments)for repayment of ICDs will be the
key rating sensitivities.
EHL is a special purpose vehicle promoted by Celebrations, a part
of the Celebrations Group which operate multiple specialty theme
luxury hotels and resorts in Central India and LCL, a Hindustan
Construction Company Limited (HCC, rated 'CAREC/CARE D' for its
bank facilities and instruments) group company. EHL operates a
mid-priced 130 room hotel at Lavasa under the brand name 'Mercure
Lavasa'.
The hotel's built up area is around 77,000 square feet with 97
standard rooms, 31 superior rooms and 2 family rooms.
Additionally, the hotel operates four in-house restaurants suiting
different requirement of the customers. The hotel is operated by
AAPC Singapore PTE Limited (Mercure Hotels) who are paid 6% of
gross room rent as operating fees, in addition to other fees as
per the agreement.
During FY14, EHL reported net loss of INR3.30 crore on total
operating income of INR11.77 crore vis-a-vis net loss of
INR4.64crore and total operating income of INR10.64 crore in FY13.
Also, in 9MFY15, EHL reported net loss of INR0.81 crore
on total operating income of INR10.20 crore.
GDJD EXPORTS: ICRA Assigns B+ Rating to INR8cr LT Loan
------------------------------------------------------
ICRA has assigned the long-term rating of [ICRA]B+ to the INR8.00
crore fund based facilities of GDJD Exports. ICRA has also
reaffirmed the short term rating of [ICRA]A4 for the INR1.40 crore
proposed facilities of the firm.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term fund
based facilities 8.00 [ICRA]B+ assigned
Short term proposed
limits 1.40 [ICRA]A4 reaffirmed
The ratings factor in the long standing experience of the
promoters, the firm's established supplier base-spread across
India, which enables steady supply of high quality yarn, and
GDJD's negligible inventory levels and its consequent positive
impact on the holding costs and working capital intensity.
The ratings are however constrained by the financial profile of
the firm characterized by thin profit margins owing to the trading
nature of business, stretched capitalization and coverage
indicators, as well as by the decline in revenues during FY14 and
nine months of the current fiscal. Due to small scale of
operations in a highly fragmented industry and limited value
addition, the Company has limited pricing flexibility and
susceptible to volatility in yarn prices and vulnerable to foreign
exchange fluctuations. The company also remains exposed to demand
volatility in key importing regions like China, as witnessed in
current fiscal and has high customer churn rates, although GDJD
has been able to add new customers year on year.
GDJD Exports, which was established in 1990 as an offshoot of
Gocooldoss Jumnadoss and Co, is primarily engaged in trading of
various varieties of yarn such as cotton yarn, polycot yarn,
polyester yarn and viscose yarn apart from small quantities of
fabrics; cotton yarn constitutes over 80% of sales. The firm
procures from spinning mills across India and supplies the yarn
to customers in several countries such as China, Bangladesh,
Sudan, and Korea to name a few. GDJD currently has about eleven
employees and is managed by the three partners Mr. Bharat
Kumar Shah, Hema Bharat Shah and Tapan Tanmay B Shah.
GIRIRAJ JEWELLERS: CRISIL Assigns B Rating to INR59MM Bank Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Giriraj Jewellers Private Limited (GJPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Packing Credit 50 CRISIL A4
Gold Loan 6 CRISIL B/Stable
Bank Guarantee 59 CRISIL A4
Cash Credit 35 CRISIL B/Stable
The ratings reflect GJPL's below average financial risk profile,
marked by leveraged capital structure and weak debt protection
metrics, and its modest scale of operations in a highly
competitive gold jewellery industry resulting in its limited
bargaining power and profitability. These rating weaknesses are
partially offset by the extensive experience of the promoters in
the gold retailing and wholesaling business along with established
relationships of GJPL with its customers.
Outlook: Stable
CRISIL believes that GJPL will maintain its stable business risk
profile over the medium term, backed by its promoters' extensive
industry experience. The outlook may be revised to 'Positive' if
the company reports a significant growth in its revenues and
profitability while improving its overall financial risk profile.
Conversely, the outlook may be revised to 'Negative' in case of
significant decline in company's revenues and margins or
lengthening of its working capital cycle leading to pressure on
the liquidity and financial risk profile.
GJPL was set up as proprietorship firm in the year 1983 and later
incorporated as private Limited entity in 2004. The company is
engaged in exporting, retailing, and wholesaling of gold jewelry.
For 2013-14 (refers to financial year, April 1 to March 31), GJPL
is estimated to report a profit after tax (PAT) of INR2.47 million
on net sales of INR262.2 million against a PAT of INR1.79 million
on net sales of INR223.4 million in the year 2012-13.
KEAUM ORGANICS: CRISIL Cuts Rating on INR41.7MM Loan to B-
----------------------------------------------------------
CRISIL has downgraded the ratings on the long term bank facilities
of Keaum Organics Private Limited (Keaum) to 'CRISIL B-/Stable'
from 'CRISIL B/Stable', while reaffirming the ratings on its short
term bank facilities at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 3.3 CRISIL A4 (Reaffirmed)
Cash Credit 10.0 CRISIL B-/Stable (Downgraded
from 'CRISIL B/Stable')
Term Loan 41.7 CRISIL B-/Stable (Downgraded
from 'CRISIL B/Stable')
The downgrade reflects deterioration in Keaum's liquidity profile
due to a decline in cash accruals' generation, on the back of an
expected sharp decline of about 40 per cent in revenue in 2014-15
(refers to financial year, April 1-March 31). While the company
has managed to acquire new customers to arrest the decline in
revenue, the decline in order flow from its main customers is
expected to the constrain recovery, and near-term pressure on
growth is expected to remain. Reduction in capacity utilization
and pricing is also estimated to reduce operating margins to about
18-20 per cent in the near-term from about 28 per cent in 2013-14.
CRISIL expects that the reduction in profitability, coupled with
reduced revenue and high working capital intensity will weaken the
company's liquidity in the near-term. While its cash accruals are
expected to be tightly matched or lower against the scheduled debt
repayments, CRISIL believes that the modest buffer available in
the form of unutilized bank limits and availability of funding
need-based support from promoters partially offsets the stretch in
liquidity.
Outlook: Stable
CRISIL believes that Keaum will continue to benefit from its
promoters' extensive industry experience over the medium term. The
outlook may be revised to 'Positive' if Keaum's revenue growth
recovers strongly, accompanied by an increase in its operating
profitability resulting in an improved liquidity profile.
Conversely, the outlook may be revised to 'Negative' if there is a
further deterioration in Keaum's liquidity profile most likely on
the back of a slow recovery in revenue and profitability or due to
a further stretch in the working capital cycle.
Incorporated in July 2009, Keaum is promoted by Mr. Ketan Joshi
and Mr. Bipin Shah for setting up a solvent distillation unit in
India to cater to the pharmaceutical and chemical industries for
their requirements of rectifying/purifying/distilling solvents and
speciality chemicals. The company commenced manufacturing in July
2011.
KNOWLEDGE VISTAS: CARE Lowers Rating on INR14cr LT Loan to D
------------------------------------------------------------
CARE revises rating assigned to bank facilities of Knowledge
Vistas Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 14 CARE D Revised from
CARE C
Rating Rationale
The revision in the rating assigned to the bank facilities of
Knowledge Vistas Limited (KVL) takes into account the recent
delays in servicing of interest obligations. The rating continues
to be constrained due to non-commencement of operations of school
and pending completion of hostel and sports facilities and
consequent dependence on the group company-Lavasa Corporation
Limited (rated 'CARE C/CARE D' for its bank facilities and
instruments) for repayment of its debt obligations.
Knowledge Vistas Limited (erstwhile GDST Oxford International
School Limited) was incorporated on Feb. 24, 2009. The company was
floated as a special purpose vehicle (SPV) for establishing,
developing and operating a school in Lavasa. The school is
proposed to be established as a co-educational, fee paying school
for 1,200 pupils of which up to 70% of the pupils would be
boarding. The school is jointly owned by Educomp Infrastructure
and School Management Ltd (51%) and Lavasa Corporation Limited
(49%).
The company has not commenced its commercial operations. During
FY14 (refers to the period April 1 to March 31), the company
reported net loss of INR0.84 crore on a total operating income of
INR0.02 crore vis-…-vis net loss of INR0.75 crore and a nil total
operating income in FY13. Also, in 9MFY15,KVL reported net loss of
INR0.48 crore on nil operating income.
M L RICE: ICRA Reaffirms B+ Rating on INR20cr Fund Based Loan
-------------------------------------------------------------
ICRA has re-affirmed the [ICRA]B+ rating for INR20 crore fund
based bank facilities of M L Rice Mill.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits 20.00 [ICRA]B+ (re-affirmed)
The rating continues to be constrained by MRM's presence in a
highly competitive nature of the industry, its moderate scale of
operations, weak profitability metrics, high gearing level and
consequently weak debt protection indicators. The rating is also
constrained by its stretched liquidity position as reflected by
consistently high working capital limits utilization arising out
of high inventory holding period and risks inherent in a
partnership firm like limited ability to raise equity capital,
risk of dissolution due to death/retirement/insolvency of partners
etc. However, the ratings favorably factor in MRM's experienced
promoters with long track record in rice milling industry.
M L Rice Mill is a partnership firm established in 1983 promoted
by Mr. Janak Raj and his family members. The firm is primarily
engaged in milling of basmati rice. The firm is also engaged in
converting semi processed rice into parboiled Basmati rice. MRM's
milling unit is based out of Jalalabad, Distt. Ferozpur, Punjab
which is in close proximity to the local grain market.
Recent Results
During the financial year 2013-14, the company reported a profit
after tax (PAT) of INR0.35 crore on an operating income of
INR57.55 crore as against PAT of INR0.20 crore on an operating
income of INR35.80 crore in 2012-13.
MAHENDRA PUMPS: CRISIL Cuts Rating on INR50MM Cash Loan to B+
-------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Mahendra Pumps Pvt Ltd (MPPL) to 'CRISIL B+/Stable/CRISIL A4' from
'CRISIL BB-/Stable/CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 1 CRISIL A4 (Downgraded from
'CRISIL A4+')
Cash Credit 50 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
Letter of Credit 5 CRISIL A4 (Downgraded from
'CRISIL A4+')
Proposed Cash
Credit Limit 5 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
Proposed Standby 1.6 CRISIL B+/Stable (Downgraded
Line of Credit from 'CRISIL BB-/Stable')
Proposed Term Loan 4.0 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
Standby Line of 8.4 CRISIL B+/Stable (Downgraded
Credit from 'CRISIL BB-/Stable')
Term Loan 6.0 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
The rating downgrade reflects CRISIL's belief that MPPL's
financial risk profile will remain weak over the medium term
marked by high gearing and low interest coverage ratio. The
company's gearing is expected at 5.2 times as on March 31, 2015,
and is expected to remain high over the medium term because of
high dependence on debt for meeting working capital requirements.
High gearing and low profitability margins have led to weak
interest coverage ratio, expected at 1.6 times over the medium
term.
The ratings reflect MPPL's below-average financial risk profile,
marked by a small net worth and high gearing, driven by large
working capital requirements. The ratings also factor in MPPL's
small scale of operations, and its susceptibility to volatility in
raw material prices and to intense competition in the pumps
segment. These rating weaknesses are partially offset by the
company's established market position in the pump manufacturing
industry, primarily in southern India, and its promoters'
extensive industry experience.
Outlook: Stable
CRISIL believes that MPPL will continue to benefit over the medium
term from its established market position and its promoters'
extensive industry experience. The outlook may be revised to
'Positive' if MPPL scales up its operations significantly while
improving its profitability, resulting in large cash accruals, and
consequently, improvement in its financial risk profile.
Conversely, the outlook may be revised to 'Negative' if MPPL's
financial risk profile, particularly its liquidity, deteriorates,
most likely because of low cash accruals, large working capital
requirements, or debt-funded capital expenditure.
MPPL was set up in 1960 as a partnership firm which was
reconstituted as a private limited company in 2001. The company
manufactures submersible and surface pumps under its Mahendra
brand. MPPL also manufactures pumps for portable engines. It has
integrated manufacturing facilities (foundry and machine shop) at
Puliakulam in Coimbatore (Tamil Nadu).
MANGALAM DRUGS: CRISIL Ups Rating on INR315MM Cash Loan to B+
-------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Mangalam Drugs and Organics Ltd (MDOL) to 'CRISIL B+/Stable' from
'CRISIL B-/Stable', and has reaffirmed its rating on the company's
short-term facilities at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 13 CRISIL A4 (Reaffirmed)
Cash Credit 315 CRISIL B+/Stable (Upgraded
from 'CRISIL B-/Stable')
Letter of Credit 160 CRISIL A4 (Reaffirmed)
Proposed Long Term 10.8 CRISIL B+/Stable (Upgraded
Bank Loan Facility from 'CRISIL B-/Stable')
Term Loan 149.5 CRISIL B+/Stable (Upgraded
from 'CRISIL B-/Stable')
Working Capital 161.7 CRISIL B+/Stable (Upgraded
Term Loan from 'CRISIL B-/Stable')
The rating upgrade reflects CRISIL's expectation that MDOL will
further improve its scale of operations, following the launch of
new drugs and the revival of demand from key export markets in
2014-15 (refers to financial year, April 1-March 31). CRISIL
expects that the company's revenue will grow by over 70-75 per
cent in the year, coupled with improvement in operating margin.
The company registered a revenue growth of 71 per cent to INR1451
million in the nine months ended December 31, 2014; while
operating margins improved to 9.9 per cent in the nine months
ended December 31, 2014, from 3.4 per cent in the corresponding
period of the previous year. While growth rate will likely taper
over the medium term, CRISIL believes that MDOL will achieve
annual revenue growth of 15 to 20 per cent over the medium term.
The increase in sales and margin is expected to drive improvement
in cash accruals generated, thereby supporting the company's
liquidity. While the company's financial risk profile is expected
to remain constrained by its high gearing and low debt protection
metrics, CRISIL expects that a sustained increase in accruals will
lead to gradual improvement in its capital structure. However,
management of working capital cycle, coupled with the expansion of
its customer base, will remain a key rating sensitivity factor.
The ratings continue to reflect MDOL's weak financial risk profile
and the working-capital-intensity of operations. These rating
weaknesses are partially offset by the company's established
market position, and its promoters' extensive experience, in the
pharmaceutical industry.
Outlook: Stable
CRISIL believes that MDOL will continue to benefit over the medium
term from its established market position and its promoters'
extensive industry experience. The outlook may be revised to
'Positive' if the company achieves substantial sales growth, along
with a stable operating margin; leading to better than expected
improvement in financial risk profile. Conversely, the outlook may
be revised to 'Negative' if MDOL's sales or operating margin
declines, or if it undertakes a large debt-funded capital
expenditure programme, or if its working capital cycle
deteriorates, leading to further weakening of its financial risk
profile.
MDOL (formerly, Advent Pharma Pvt Ltd), promoted by the Mumbai
(Maharashtra)-based Dhoot family, was set up in 1972 as part of
the Mangalam group. The company was reconstituted as a public
limited company in 2001. MDOL manufactures bulk drugs, and organic
and inorganic chemicals.
It is among the four World Health Organization (WHO)-approved
Indian companies to be associated with the William J Clinton
Foundation (Clinton Foundation) for manufacturing of anti-malarial
drugs; the company supplies artemisinin-based bulk drugs to
pharmaceutical companies, for the manufacture of anti-malarial
formulations.
MDOL reported a net loss of INR30.3 million on net sales of
INR1207 million for 2013-14 (refers to financial year, April 1 to
March 31), against a net loss of INR117.9 million on net sales of
INR1248 million for 2012-13.
MLM INFRA: CRISIL Assigns B+ Rating to INR35MM Cash Credit
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of MLM Infra Pvt Ltd (MLM).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 35 CRISIL B+/Stable
Letter Of Guarantee 195 CRISIL A4
The ratings reflect MLM's modest scale of operations with customer
concentration in revenue profile, and average financial risk
profile marked by below-average debt protection metrics. These
rating weaknesses are partially offset by MLM's moderate order
book position and moderate working capital requirements.
Outlook: Stable
CRISIL believes that MLM will continue to benefit from the
extensive industry experience of its promoters. The outlook may be
revised to 'Positive' if the company generates significantly
higher-than expected cash accruals while prudently managing its
working capital requirements. Conversely, the outlook may be
revised to 'Negative' if MLM generates lower-than-expected cash
accruals, or if its working capital management deteriorates.
MLM (earlier known as SS Super Stone Tyres Private Limited) was
incorporated in 1986 and started operations in 2013. The company
undertakes civil construction works of roads in Madhya Pradesh.
MLM is based in Delhi and promoted by Mr Siddharth Jain.
NADAHALLI AGRO: ICRA Assigns B Rating to INR20cr e-Cash Credit
--------------------------------------------------------------
ICRA has assigned a long term rating of [ICRA]B and short term
rating of [ICRA]A4 to the INR50.0 crore bank facilities of
Nadahalli Agro International Private Limited (NAIPL).
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
e-Cash Credit 20.00 [ICRA]B assigned
Short term scale-
Packing Credit
(Interchangable) (15.00) [ICRA]A4 assigned
Long/Short-term
Scale - Proposed
facilities 30.00 [ICRA]B/[ICRA]A4 assigned
The ratings assigned take into account the successful first year
of operation, with the company achieving INR28 crore sales
turnover by trading in maize. The company has plans to diversify
into other commodities trading such as rice and raw cashew nuts
which will aid revenue growth and improve the margins. ICRA takes
note of the fact that the company sources the commodities from the
farmers and mostly backed by orders which lower the procurement
costs and price fluctuations in the commodity market. ICRA also
takes into account that the promoters have setup companies abroad
for sourcing raw cashew nuts directly from the farmers which will
give them an advantage in the domestic market.
The ratings are, however, constrained by the limited experience of
the promoters in the agro commodity trading business and the
moderate scale of operations restricting operational and financial
stability to an extent. The ratings are also constrained by the
weak financial profile characterised by thin operating margins on
account of no value addition, high gearing and weak coverage
indicators The capital structure of the company is stretched
resulting from low net worth combined with high working capital
limits to fund the growth in the trading operations. ICRA notes
that NAIPL will be exposed to forex fluctuation risk if there is
no hedging mechanism for the proposed export business and import
of raw cashew nuts. ICRA also takes into account that as an agro-
commodities trader, NAIPL's operations are susceptible to the
agro-climatic risks and government policies on price or
restriction of export of agricultural commodities.
Going forward, the company's ability to increase its scale of
operations, while improving its profitability and capital
structure will be the key rating sensitivities.
Nadahalli Agro International Private Limited (NAIPL) was
incorporated in 2012 as a trader and exporter of agro commodities.
The company was initially promoted by Mr. A.S Patil and his wife
Mrs. Mahadevi Patil, holding 90% and 10% stake respectively.
Currently, Mr Manjunath V and Mrs. Bharathi V have also joined the
business. Previously, Mr. Patil had a proprietorship concern,
Madhu Mineral Enterprises which was into iron ore trading and
exports with an annual turnover of around INR150-180 crores.
NAIPL started its operations by trading in maize and currently has
plans to trade in rice and raw cashew nuts. In the first year of
operations the company has reported a turnover of INR28 crore with
PBT of INR0.34 crore. The company has rented four godowns in
Karnataka at Bijapur, Bagalkot, Koppal and Hospet. The directors
have shareholding in Pranam SA, a company set up in August 2014
in Ivory Coast, which is involved in the procurement of raw cashew
nuts from farmers in West Africa and exporting it to India.
NARULA TOOLS: ICRA Assigns B Rating to INR6cr Long Term Loan
------------------------------------------------------------
ICRA has assigned its [ICRA]B rating to the INR6.00 crore fund
based limits of Narula Tools International (NTI).
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term fund 6.00 [ICRA]B; assigned
based facility
(Pre-shipment
credit packing
credit)
Long term fund (6.00) [ICRA]B; assigned
based facility
(post-shipment
credit packing
credit)
ICRA's rating is constrained by NTI's weak profitability margins
due to the intensely competitive and highly fragmented nature of
the industry it operates in, and due to the low value additive
nature of its operations. The ratings also take into account the
firm's high reliance on debt, which coupled with its modest
profitability, has led to elevated leverage and weak coverage
indicators, with gearing at 5.64x, interest coverage at 1.37x and
NCA/TD at 2.8% for FY2014. The ratings also take into account the
vulnerability of the firm's profitability to adverse fluctuations
in exchange rates, given the firm's reliance on exports. ICRA also
factors in the constitution of the entity as a partnership firm
which exposes the firm to risks related to dissolution, capital
withdrawal etc. Nevertheless, the rating derives comfort from the
long experience of the promoters in the scaffolding and tools
industry and its long standing relationship with key customers in
Gulf countries, and the favorable long term demand outlook for the
firm's products.
Going forward, the firm's ability to increase its scale of
operations in a profitable manner while maintaining an optimal
working capital intensity will be the key rating sensitivities.
NTI was established in the year 1995 as a proprietorship firm and
was converted into a partnership firm in 2011-12. The firm is
engaged in the manufacturing of scaffolding products. The
manufacturing facility of the firm is located at Jalandhar,
Punjab.
Recent Results
The firm reported a net profit of INR0.04 crore on an operating
income of INR49.49 crore in FY14 as against a net profit of
INR0.04 crore on an operating income of INR61.15 crore in FY13.
NATIONAL CAPSULES: CRISIL Reaffirms B Rating on INR72MM LT Loan
---------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of National
Capsules Pvt Ltd (NCPL) continues to reflect the company's below-
average financial risk profile, marked by small net worth, high
gearing, and weak debt protection metrics.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 11 CRISIL B/Stable (Reaffirmed)
Long Term Loan 72 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 17 CRISIL B/Stable (Reaffirmed)
The rating also factors in the company's small scale of operations
in a competitive and fragmented industry. These rating weaknesses
are partially offset by the benefits that NCPL derives from its
promoters' extensive experience in the pharmaceutical industry and
healthy demand prospects for the industry in India.
Outlook: Stable
CRSIL believes that NCPL will benefit from its promoters'
extensive experience in the pharmaceutical industry. The outlook
may be revised to 'Positive' in case of improvement in the
company's financial risk profile and liquidity owing to higher-
than-expected cash accruals, and efficient working capital
management. Conversely, the outlook may be revised to 'Negative'
in case of deterioration in the company's financial risk profile,
particularly its liquidity, on account of lower than expected cash
accruals or stretch in working capital cycle or any further debt-
funded capital expenditure.
Update
In 2013-14 (refers to financial year, April 1 to March 31), the
company registered lower-than-expected revenue on account of a
month's delay in commissioning of fourth machine, which was
installed in February 2014 as opposed to January 2014. With the
commissioning of all four machines, the company has a capacity to
earn monthly sales of INR10 million to INR12 million over the
medium term. It is expected to generate revenue of INR110-125
million in 2014-15, which will be the first year of full
commercialization.
The company achieved operating margin of around 29 per cent in
2013-14 on account of increase in operational efficiencies. Over
the medium term, CRISIL expects NCPL's operating margin to be in
the range of 20 to 25 per cent, which is in line with peers in the
industry.
NCPL has high working capital requirements on account of the
start-up phase of operations. It had high gross current asset
[GCA] of 152 days as on March 31, 2014, due to high inventory and
debtor days, which are partially funded by stretching creditors.
Its liquidity continues to remain stretched, impacted by the
modest cash accruals and large working capital requirements. The
company currently has annual repayment obligations of around INR12
million against which it is expected to generate net cash accruals
of INR12 million to INR18 million over the medium term.
NCPL's financial risk profile remains weak with modest net worth
and high gearing. CRISIL expects that the financial risk profile
will improve gradually, with the expected ramp up in scale of
operations. Increase in accruals generated is expected to decrease
the reliance on debt funding, which is expected to improve capital
structure over the medium term.
Incorporated in November 2010, NCPL manufactures empty hard
gelatin capsules. The company has its manufacturing unit at
Vidisha, near Bhopal (Madhya Pradesh); the unit commenced
operations in January 2013. NCPL is promoted by Mr. Rakesh Sharma
and his wife, Ms. Preeti Sharma.
ORCHID CURE: CRISIL Assigns B+ Rating to INR105MM Term Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facility of Orchid Cure and Care Pvt Ltd (OCCPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 105 CRISIL B+/Stable
The rating reflects OCCPL's exposure to risks associated with the
implementation of its ongoing hospital project. The rating also
factors in OCCPL's expected below-average financial risk profile
due to the large debt-funded capital expenditure (capex). These
rating weaknesses are partially offset by the promoters'
established presence and extensive experience as medical
practitioner's at Vishrantwadi (Pune).
Outlook: Stable
CRISIL expects OCCPL to continue to benefit from its promoters'
established presence and extensive experience over the medium
term. The outlook may be revised to 'Positive' if the ongoing
hospital project is completed, and its operations stabilise, on
time and within the budget costs. Conversely, the outlook may be
revised to 'Negative' if time or cost overruns on the project or
delays in ramp-up of operations of the hospital weaken OCCPL's
financial risk profile, especially liquidity.
Incorporated in September 2012, OCCPL is setting up a multi-
specialty hospital with 60 beds in Pune. The hospital is expected
to start commercial operations from the first quarter of 2016.
P B NIRMAN: CRISIL Reaffirms D Rating on INR90MM Cash Credit
------------------------------------------------------------
CRISIL's ratings on the bank facilities of P B Nirman Udyog Pvt
Ltd (PBN) continue to reflect PBN's consistent over-utilisation of
its bank lines for more than 30 consecutive days; the
irregularities have been caused by the company's weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 28.8 CRISIL D (Reaffirmed)
Cash Credit 90 CRISIL D (Reaffirmed)
Proposed Long Term
Bank Loan Facility 17.8 CRISIL D (Reaffirmed)
Working Capital
Demand Loan 33.4 CRISIL D (Reaffirmed)
PBN also has a small scale of operations, large working capital
requirements, and a modest financial risk profile, marked by a
small net worth and high gearing. Moreover, the company is exposed
to risks related to the tender-based nature of its business.
However, PBN benefits from the extensive experience of its
promoters in the construction industry.
Based in Kolkata, PBN undertakes construction of roads, buildings,
and bridges, in Kolkata and Tripura. It mainly takes up projects
of public sector undertakings and is a Class A subcontractor for
Hindustan Steelworks Construction Ltd, National Projects
Construction Corporation Ltd, National Buildings Construction
Corporation Ltd, and Engineering Projects India Ltd.
POLY PRODUCTS: CRISIL Assigns B Rating to INR30MM Bank Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Poly Products (PP).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 30 CRISIL B/Stable
Cash Credit 30 CRISIL B/Stable
Letter of Credit 40 CRISIL A4
The ratings reflect the firm's modest scale of operations in a
fragmented industry and below average financial risk profile
marked by high gearing and weak debt protection metrics. These
rating weaknesses are partially offset by the extensive experience
of promoters in the plastic-trading industry and PP's established
relationships with customers and suppliers.
Outlook: Stable
CRISIL expects PP to maintain its stable business risk profile
over the medium term, backed by its promoter's extensive
experience and established relationships with its customers and
suppliers. The outlook may be revised to 'Positive' if the company
reports higher than expected growth in revenues and profitability,
while improving its capital structure. Conversely, the outlook may
be revised to 'Negative' if PP's financial risk profile
deteriorates, because of sharp decline in profitability or
revenues, or lengthening of its working capital cycle.
PP was incorporated in 1973 as a partnership firm and is managed
by its partners Mr. Ashok Gupta and Mrs. Nirmal Gupta. The firm is
engaged in trading of plastic products and its sales office is
located in New Delhi.
The company reported profit-after-tax (PAT) of INR0.6 million on
an operating income of INR285.9 million for 2013-14, as compared
to PAT of INR0.5 million on an operating income of INR260.0
million for 2012-13.
RATTAN POLYCHEM: CRISIL Suspends D Rating on INR45MM Cash Loan
--------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Rattan
Polychem Pvt Ltd (Rattan).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 45 CRISIL D Suspended
Letter of Credit 15 CRISIL D Suspended
Proposed Long Term
Bank Loan Facility 20 CRISIL D Suspended
Term Loan 20 CRISIL D Suspended
The suspension of ratings is on account of non-cooperation by
Rattan with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, Rattan is yet to
provide adequate information to enable CRISIL to assess Rattan'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'
Incorporated in 2009 by Mr. Yashweer Dagar and his family members,
Rattan has been manufacturing expandable polystyrene of various
grades and diameters since 2010-11 (refers to financial year,
April 1 to March 31). The products are used to manufacture
thermocol, which is used for packaging and other purposes. The
company's manufacturing unit is in Faridabad (Haryana).
SARAYA INDUSTRIES: CRISIL Assigns D Rating to INR373.1MM Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the long-term bank
facilities of Saraya Industries Ltd (SIL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Working Capital
Term Loan 40 CRISIL D
Cash Credit 236.9 CRISIL D
Term Loan 373.1 CRISIL D
The rating reflects instances of delays by SIL in servicing its
term debt obligations; the delays have been caused because of the
company's stretched liquidity on account of its working-capital-
intensive operations and high level of advances provided to group
companies.
The rating also reflects the company's below-average financial
risk profile marked by high gearing and weak debt protection
metrics. These rating weaknesses are partially offset by the
promoters' extensive experience in the distillery industry.
SIL, incorporated in 1980, is managed by the promoters of the
Majithia family. Its directors include Mr. Gurmehar Singh
Majithia, Mr. Bikram Singh Majithia, and Mr. Pradeep Ahuja. The
company operates a distillery unit in Gorakpur (Uttar Pradesh) and
manufactures country liquor and Indian-made foreign liquor. It
also owns a sugar mill which is currently non-operational.
The company reported profit after tax (PAT) of INR125.4 million on
operating income of INR1340.0 million for 2013-14 (refers to
financial year, April 1 to March 31), as compared with PAT of
INR1.9 million on operating income of INR1663.5 million for 2012-
13.
SHREE MAHAVIR: CRISIL Assigns D Rating to INR85MM Cash Credit
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL D/CRISIL D' ratings to the bank
facilities of Shree Mahavir Alloys (SMA).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 15 CRISIL D
Bank Guarantee 5 CRISIL D
Cash Credit 85 CRISIL D
The ratings reflect instances of delay by SMA in servicing its
debt; the delays have been caused by the firm's weak liquidity,
driven by large working capital requirements and insufficient
accruals to meet debt obligations.
SMA also has modest scale of operations in the highly competitive
steel industry and weak financial risk profile. However, it
benefits from its promoters' extensive industry experience.
Established in 2005, SMA is promoted by Mr. Vipul Shah and Mr.
Pradeep Kumar Biravat. The company is engaged in manufacturing of
MS Ingots from scrap; with its production facilities located at
Daman.
SMA has incurred a net loss of INR30.6 million on net sales of
INR270.7 million during 2013-14 (refers to financial year; April 1
to March 31) as against net loss of INR12.5 million on net sales
of INR373.1 million during 2012-13.
SHRI BALAJI: CRISIL Assigns B+ Rating to INR97.5MM Cash Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank
facilities of Shri Balaji Rohilkhand Rice Mills Pvt Ltd (SBRPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 97.5 CRISIL B+/Stable
Long Term Loan 5 CRISIL B+/Stable
The rating reflects SBRPL's modest scale of operations in the
intensely competitive rice processing industry, susceptibility to
risks related to changes in regulatory policies and volatility in
raw material prices, and high dependence on the monsoon. The
rating also factors in SBRPL's low operating profitability. These
rating weaknesses are partially offset by its promoters' extensive
industry experience and its average financial risk profile marked
by moderate total outside liabilities to tangible net worth
(TOLTNW) ratio.
Outlook: Stable
CRISIL believes that SBRPL will continue to benefit over the
medium term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the company registers
large cash accruals, backed by increase in scale of operations
and improvement in operating profitability, along with prudent
working capital management. Conversely, the outlook may be revised
to 'Negative' if SBRPL's financial risk profile deteriorates on
account of further decline in its revenue and profitability or in
case of a large, debt-funded capital expenditure, or if its
liquidity weakens significantly owing to increase in working
capital requirements.
SBRPL, incorporated in 2011, is promoted by Mr. Rachin Gupta and
Ms. Seema Gupta. The Bareilly (Uttar Pradesh)-based company is
engaged in milling and processing of paddy into rice, rice bran,
broken rice and husk. Mr. Rachin Gupta manages its day-to-day
operations.
SHRINE VAILANKANNI: CRISIL Reaffirms B+ Rating on INR120MM Loan
---------------------------------------------------------------
CRISIL's rating on the bank facilities of Shrine Vailankanni
Senior Secondary School (Shrine Vailankanni) continues to reflect
Shrine Vailankanni's modest financial risk profile marked by weak
capital structure and debt protection metrics, and its below-
average operating efficiencies.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 120 CRISIL B+/Stable (Reaffirmed)
These rating weaknesses are partially offset by the benefits
derived from Shrine Vailankanni's long track record in education
segment, and its stable cash flows from its lease rentals.
Outlook: Stable
CRISIL believes that Shrine Vailankanni will continue to benefit
over the medium term from its long standing regional presence in
education segment in Chennai (Tamil Nadu). The outlook may be
revised to 'Positive' if Shrine Vailankanni reports substantial
increase in its revenues, thereby improving its profitability and
cash accruals, leading to improvement in its financial risk
profile. Conversely, the outlook may be revised to 'Negative' if
Shrine Vailankanni undertakes any substantial debt-funded capital
expenditure programme, or faces disruptions in its operations
because of unfavorable regulatory changes, or extends higher than
expected support to group companies, further weakening its
financial risk profile.
Shrine Vailankanni, established in 1964, is a part of Shrine
Vailankanni Senior Secondary School Society. Shrine Vailankanni is
an unaided private co-educational, day school based in Chennai
running classes from pre-kindergarten up to class XII. Shrine
Vailankanni Senior Secondary School Society also owns six-and-a-
half floors of a 12-storey commercial building (Bascon Futura IT
Park) at T Nagar in Chennai that it leases out to corporates.
Shrine Vailankanni, reported a net loss of INR0.8 million on fee
income of INR23 million in 2013-14, against net loss of INR4
million on fee income of INR21 million for 2012-13.
SHYAM GINNING: CRISIL Rates INR275M Loan at B; Suspension Revoked
-----------------------------------------------------------------
CRISIL has revoked the suspension of its rating on the bank
facilities of Shyam Ginning and Pressing Private Limited (SGPPL),
and has assigned its 'CRISIL B/Stable' rating to these facilities.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 275 CRISIL B/Stable (Assigned;
Suspension revoked)
Proposed Long Term 25 CRISIL B/Stable (Assigned;
Bank Loan Facility Suspension revoked)
CRISIL had suspended the rating on March 16, 2015, as the company
had not provided the necessary information required for a rating
view. SGPPL has now shared the requisite information, enabling
CRISIL to assign rating to the company's bank facilities.
The rating reflects SGPPL's below-average financial risk profile,
marked by high gearing, modest net worth, and weak debt protection
metrics, exposure to intense competition in the cotton industry,
and vulnerability to adverse changes in raw cotton (kapas) prices
and government policies. These weaknesses are partially offset by
SGPPL's promoters' extensive industry experience and the company's
proximity to the cotton-growing belt ensuring regular supply of
raw cotton.
Outlook: Stable
CRISIL believes that SGPPL will maintain its credit risk profile
over the medium term backed by the promoters' experience in the
industry. The outlook may be revised to 'Positive' in case of
infusion of capital leading to improvement in capital structure
and/or significant improvement in the scale of operations and
profitability thereby improving its debt protection measures.
Conversely, the outlook may be revised to 'Negative' in case of
higher-than-expected debt due to incremental working capital
requirements or more-than-expected debt-funded capital
expenditure.
SGPPL, located at Rajkot (Gujarat), is promoted by Mr. Bharatbhai
Wala. The company is engaged in the ginning and pressing of raw
cotton to make cotton bales. The company sells the cotton bales to
various traders and the cotton seed is sold to various oil mills
in the vicinity of the plant.
SGPPL reported a profit after tax (PAT) of INR3.6 million on net
sales of INR1.8 billion for 2013-14 (refers to financial year,
April 1 to March 31), as against a PAT of INR2.8 million on net
sales of INR1.4 billion for 2012-13.
YADAV SOLVEX: CRISIL Assigns B Rating to INR82.5MM Term Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the bank
facilities of Yadav Solvex Pvt Ltd (YSPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 47.5 CRISIL B/Stable
Term Loan 82.5 CRISIL B/Stable
The rating reflect YSPL's exposure to project implementation risk
and working capital intensive nature of the rice industry. These
rating strengths are partially offset by the company's moderate
capital structure and promoters' extensive experience in the rice
industry.
Outlook: Stable
CRISIL believes that YSPL will continue to benefit from its
promoters' extensive industry experience over the medium term. The
outlook maybe revised to 'Positive' if the company successfully
commences its operations without any time or cost overrun and
generates large cash accruals along with efficient working capital
management. Conversely, the outlook maybe revised to 'Negative' in
case it faces time or cost overruns in its project or generates
low cash accruals or contracts large debt to meet its working
capital requirements.
YSPL, incorporated in 2003, is setting up a rice milling unit with
milling capacity of 8 tonnes per hour (tph) and sorting capacity
of 6 tph. The manufacturing facility is based in Muktsar (Punjab)
and promoted by Mr Bhagwan Singh and his family.
=================
I N D O N E S I A
=================
ANTAM (PERSERO): S&P Revises Outlook to Stable & Affirms 'B-' CCR
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it had revised its
outlook on PT ANTAM (Persero) Tbk. (ANTAM) to stable from
developing. At the same time, S&P affirmed its 'B-' long-term
corporate credit rating and its 'axB' long-term ASEAN regional
scale rating on the company. ANTAM is an Indonesia-based
diversified metals and mining company in which the Indonesian
government has a majority stake.
"We revised our outlook on ANTAM because we believe that the
company will face no material liquidity pressure over the next 12
months because of its sizable cash balance, good buffer under
financial covenants, and improved diversity in banking
relationships," said Standard & Poor's credit analyst Xavier Jean.
S&P expects ANTAM to maintain an EBITDA interest coverage of about
1.5x over the next 18-24 months because of the improved scale and
profitability of the company's ferronickel operations, and the
ramp-up of the chemical grade alumina operations. As a result,
S&P do not envisage a payment crisis or default scenario over the
period.
In S&P's view, ANTAM's sizable cash balance of about Indonesian
rupiah (IDR) 2.62 trillion as of Dec. 31, 2014, provides good
headroom under the debt service coverage covenants of the
company's bank loans. The cash balance also reduces the risk of
an acceleration in repayment of ANTAM's bank loans because of a
covenant breach.
S&P believes the Indonesian government is committed to maintaining
a ban on exports of unprocessed mineral ores to stimulate
investment in smelting capacity. This ban will remain a
substantial drag on ANTAM's profitability because the company is
unable to export profitable nickel ore. However, S&P still
expects the company's operating and financial performance to
improve in 2015, compared with 2014. S&P anticipates stronger
profitability in ferronickel operations because of a decline in
oil prices (a major cost component), and the company's expanded
scale and efficiency measures.
S&P understands from news reports that certain state-owned
companies in Indonesia, including ANTAM, may receive cash
injections from the government before the end of 2015 to support
investment and partly fund greenfield projects. In S&P's view,
the cash injection would be mostly credit neutral for ANTAM, if it
materializes. This is because the company is likely to spend on
large-scale and long-dated expansion of smelting capacity rather
than on repaying debt or improving liquidity.
"We affirmed our rating because we anticipate that ANTAM will
continue to have high leverage through 2016 at least," said
Mr. Jean. "We forecast the ratio of debt to EBITDA to remain well
in excess of 5.0x over the next two years because of the ban on
nickel ore exports, a major contributor to the company's EBITDA
and cash flows."
At the same time, S&P still expects negative free operating cash
flows in 2015 and 2016, given ANTAM's still-high capital spending
on asset modernization and cash injections into subsidiaries or
joint ventures.
S&P views ANTAM's high single-asset concentration risks following
the export ban, high product concentration to nickel, and
structurally weaker cost position in ferronickel operations as
major constraints to its "vulnerable" business risk profile.
These factors underpin the company's 'b-' stand-alone credit
profile. S&P do not factor explicit government support in its
rating on ANTAM, given the increasing role of the private sector
in Indonesia's metals and mining sector.
S&P could lower the rating if it expects ANTAM's liquidity to
deteriorate. ANTAM's cash balance declining below IDR750 billion,
the company's inability to roll over its working capital
maturities, or a covenant breach would indicate such weakness.
S&P could also lower the rating if it perceives that ANTAM's
capital structure is unsustainable. The company's EBITDA interest
coverage falling to about 1.0x for more than 12 months with no
prospect of improvement could trigger a downgrade. A sharp
decline in nickel prices or ANTAM's further debt-funded capital
spending could lower the EBITDA interest coverage.
A rating upgrade is unlikely over the next 12 months, given S&P's
expectation that the company will have a "highly leveraged"
financial risk profile, with limited prospects for debt reduction.
Nevertheless, S&P could raise the rating if ANTAM's ratio of debt
to EBITDA improves below 5.0x, its EBITDA coverage stays
sustainably above 2.0x, and its liquidity stabilizes because of
higher cash flows, reduced short-term debt, lower capital
spending, or a combination of the three. S&P believes nickel
prices averaging more than US$8.5 per pound on a sustainable
basis, as well as the application of discretionary cash flows to
debt reduction is necessary for such improvement.
S&P could also raise the rating if it assess that the likelihood
of the extraordinary government support to the company has
increased. An upgrade would also be contingent upon better
clarity around ANTAM's capital spending, especially on its
Halmahera Timur ferronickel project, and the funding policy for
such expansion projects.
====================
N E W Z E A L A N D
====================
ALBANY HEIGHTS: Liquidators Mull Suing Lawyer
---------------------------------------------
Richard Meadows at Stuff.co.nz reports that liquidators are
considering suing a lawyer who handled millions of dollars of
overseas investors' cash for a controversial Auckland property
development.
The report says Albany Heights Villas, Hunter Gills Road, and
Hunter Capital were part of a syndicate that advertised heavily in
Southeast Asia to raise funds to build properties on Auckland's
North Shore. From March 2013 the companies began to enter
liquidation, leading to protests by angry investors at the New
Zealand embassy in Hong Kong, Stuff.co.nz recalls.
A Serious Fraud Office investigation into Albany Heights is
ongoing, Stuff.co.nz notes.
According to Stuff.co.nz, the latest liquidators' report from
Waterstone Insolvency revealed unsecured creditors now claim to be
owed more than NZ$18 million.
"At this stage it is unlikely there will be a distribution to
unsecured creditors," the report said, Stuff.co.nz relays.
However, the report also opened a possible new avenue for
recovering funds, with legal action against lawyer John Harkness
under consideration, according to Stuff.co.nz.
Stuff.co.nz notes that two investors have previously tried to take
action against Mr. Harkness and his Wellington law firm for
"dishonest assistance", alleging he was an accessory to the
developers' wrongdoing.
Stuff.co.nz relates that while the High Court threw out their
claims, Associate Judge Roger Bell stressed in his judgment that
it was only because they did not have the proper standing as
plaintiffs.
"There is nothing in the circumstances of this case to suggest
that the liquidators would not bring the claim in which the
plaintiffs are now asserting against the defendants," Stuff.co.nz
quotes Judge Bell as saying.
The contractual agreements with purchasers which Mr. Harkness
drafted were unusual, with normal safeguards missing, the judge
said, Stuff.co.nz relays.
He said Mr. Harkness was also aware of the "baggage" carried by
the men behind the project at the time; Paul Bublitz was a
director of a failed finance company, Roderick Nielsen was
bankrupt, Peter Chevin was on his third bankruptcy, and Chris Cook
was living in Southeast Asia, Stuff.co.nz relays.
Stuff.co.nz adds that the judge also noted the unusual trust
structure, the under-capitalised project, the fact that the
purchasers were not New Zealanders, and that Harkness was aware
they had not received legal advice.
"That combination of circumstances would be enough to create a
sense of suspicion in the mind of the ordinary, honest person that
this was a scheme which was likely to cause loss to those who
dealt with the companies," Associate Judge Bell, as cited by
Stuff.co.nz, said.
The liquidators are also investigating a claim against former
Albany Heights director Alastair Brown, understood to have
received almost NZ$150,000 from the company, adds Stuff.co.nz.
WAIMEA CONTRACT: PwC Appointed as Administrators
------------------------------------------------
Radio New Zealand reports that PwC partners John Fisk and Richard
Longman have been appointed the administrators of Waimea Contract
Carriers Limited.
Radio NZ says the business was expected to trade as usual during
the voluntary administration, which would effectively freeze the
company's financial position, while the options available to
rehabilitate it were assessed.
According to the report, Mr. Fisk said the company's directors
made the difficult decision to put the company into voluntary
administration because poor trading conditions had resulted in
cash flow pressures.
He said increased health and safety costs and "competitive
pressure" were also among the "combination of factors" that were
causing financial difficulties, Radio NZ relates.
Mr. Fisk said the Waimea Contract Carries employed about 120
people and owned about 80 trucks.
The standard voluntary administration term was 25 days, but this
could be extended if required, Mr. Fisk, as cited by Radio NZ,
said.
"We'll investigate the company and come up with a plan, then put
that to creditors . . . if a plan can't be worked out it will go
into liquidation," the report quotes Mr. Fisk as saying.
Waimea Contract Carrier's website describes the business as the
largest privately-owned local transport operator that carts logs
for the major forest owner in the Nelson, Marlborough and West
Coast regions, the report says. The Companies Office lists
members of the McIntyre family are listed as the owners and
directors and the business has been around since 1981.
=================
S I N G A P O R E
=================
* Reed Smith Adds Bankruptcy Partner, Energy Counsel in Singapore
-----------------------------------------------------------------
Global law firm Reed Smith on March 17 announced that partner Troy
Doyle and counsel Gerald Licnachan have joined the firm's
Singapore office, in the global Commercial Restructuring and
Bankruptcy Group and the Energy and Natural Resources Group
respectively. Troy joins the firm from DLA Piper (in Singapore),
where he led the firm's restructuring practice, while Gerald re-
joins Reed Smith from his role as general counsel at Steppe
Capital in Singapore.
Troy advises financial institutions, private equity firms, hedge
funds, corporates and insolvency practitioners across the Asia
Pacific region, including China, Singapore, Indonesia, Thailand,
Japan, Taiwan, Philippines and Australia. He has extensive
experience advising on financial and corporate restructurings,
distressed mergers and acquisitions, distressed debt trading (both
portfolio and single asset deals), insolvency proceedings and
special situation transactions.
"I'm delighted to be joining Reed Smith and to further developing
the restructuring and special situations practice across Asia. As
well as impressive strength in finance, the firm also has market-
leading expertise in shipping, energy and mining, sectors which
are experiencing considerable distress in the Asia Pacific
region," noted Troy. "I look forward to working with the various
international offices of the firm to provide a seamless global
restructuring offering to clients," he added.
Mr. Doyle may be reached at:
Troy Doyle, Esq.
REED SMITH
10 Collyer Quay
#06-01 to 06
Ocean Financial Centre
Singapore 049315
Tel: +65 6320 5359
Fax: +65 6320 5399
Email: tdoyle@reedsmith.com
Gerald Licnachan re-joins Reed Smith following his departure in
2010, when he left to work in-house at Steppe Capital, rising to
become general counsel. He has particular expertise in the sectors
of metals and mining, oil and gas, infrastructure, commodities,
hospitality, real estate, retail and aviation (including private
aviation and aircraft). Gerald advises on a broad range of
international securities, mergers and acquisitions, joint
ventures, corporate finance and corporate restructuring
transactions.
Mr. Licnachan may be reached at:
Gerald Licnachan, Esq.
10 Collyer Quay
#06-01 to 06
Ocean Financial Centre
Singapore 049315
Tel: +65 6320 5300
Fax: +65 6320 5399
E-mail: glicnachan@reedsmith.com
Reed Smith established its presence in Singapore in 2012 and, in
line with continued global expansion, has significantly grown its
footprint in South East Asia with a 27% increase in lawyer
headcount in the last year. The arrival of Troy and Gerald follows
that of corporate partner Matt Gorman, who joined Reed Smith's
Singapore office at the start of this year from Stephenson
Harwood.
Reed Smith further strengthened its commitment to Asia with the
recent appointment of David Adelman in New York. David, the former
United States Ambassador to Singapore and managing director at
Goldman Sachs in Hong Kong and Singapore regularly travels to Asia
and will support the development of the Singapore office. His
experience will benefit current and new clients in diverse
industry sectors, including Asian businesses expanding their
investments and operations.
"Our Singapore office has come a long way since we launched in
late 2012," commented Gautam Bhattacharyya, Singapore office
managing partner. "Our global strength in finance and
transactional work make Troy and Gerald very exciting additions."
"Not only is Troy a highly regarded restructuring practitioner,
but he has significant experience in the Asian market. Gerald also
has a great deal of transactional experience in Asia. They further
enhance our credentials in the region following the arrival of
Matt Gorman and we are delighted to welcome them to the team."
"Troy's appointment is another important step for Reed Smith in
building a market-leading, truly global, financial restructuring
practice," said Tamara Box, global chair of the Financial Industry
Group.
"Distressed investments and debt trading, particularly in non-
performing loan transactions across both Europe and Asia, remains
extremely active. With Troy in the team, we can provide clients
with an even broader service in this area."
About Reed Smith
Reed Smith is a global law firm with 25 offices and more than
1,800 lawyers in offices across Europe, the Middle East, Asia and
the United States.
For further information, please visit www.reedsmith.com or contact
Annabelle Price (branding & communications executive EME) on +44
(0)20 3116 2571.
*********
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 2015. 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 ***