/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/150417.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 Friday, April 17, 2015, Vol. 18, No. 075 Headlines A U S T R A L I A 30THIRTY PTY: Marketing Agency Placed Into Administration BCD RESOURCES: PwC Appointed as Administrators GVB SHELF: First Creditors' Meeting Set For April 22 MAIN INDUSTRIAL: Administrators Seek Expression of Interest PFSI PTY: First Creditors' Meeting Slated For April 22 SPECIAL TASK: In Liquidation; Creditors' Meeting Set April 24 * AUSTRALIA: Over 6K Independent Hardware Stores to Close by 2024 C H I N A CHINA METALLURGICAL: S&P Hikes LT Corp Credit Rating From 'BB+' KAISA GROUP: Public Float at 20.81pc, Below 25pc Requirement I N D I A ADITYA STEEL: CRISIL Reaffirms B Rating on INR170MM Cash Loan AKT INTERNATIONAL: CRISIL Reaffirms B Rating on INR280MM Loan AMRIT BIO-ENERGY: CRISIL Suspends D Rating on INR216MM Loan ANRAK ALUMINIUM: CARE Revises Rating on INR2,995cr Loan to D ASHIRWAD CHAIN: CRISIL Suspends D Rating on INR105MM Bank Loan B S TAR: CRISIL Suspends B+ Rating on INR55MM Cash Credit BELGACHI TEA: CARE Revises Rating on INR12.34cr Loan From B+ BENTEC INDIA: CRISIL Ups Rating on INR150MM Cash Loan to B BMC FERROCAST: CRISIL Suspends B+ Rating on INR57.5MM Term Loan BUDHIA AGENCIES: CRISIL Suspends B+ Rating on INR152.5MM Loan BUSH FOODS: CRISIL Suspends D Rating on INR2.67BB Packing Loan CHITRA UTSAV: CRISIL Ups Rating on INR162M Discounting Loan to B- CLASSIC WEARS: CRISIL Suspends D Rating on INR92.2MM Term Loan DINESH INFRAPROJECTS: CRISIL Suspends B- Rating on INR27MM Loan HYGIENE FEEDS: CRISIL Suspends B Rating on INR90MM Cash Loan INDIAN YARN: CARE Reaffirms D Rating on INR67.25cr LT Loan ISPAT ALLOYS: CRISIL Suspends D Rating on INR120MM Term Loan JAGDAMBA TIMBERS: CARE Reaffirms B/A4 Rating on INR2cr Bank Loan LAVASA HOTEL: CARE Reaffirms B Rating on INR18.81cr LT Loan NAV DURGA: CARE Reaffirms B Rating on INR85.97cr LT Loan NAV ENGINEERS: CRISIL Suspends D Rating on INR49.7MM Term Loan NIRBHAI TEXTILES: CRISIL Suspends B- Rating on INR157MM Loan ORBIT RESORTS: CARE Reaffirms B+ Rating on INR232.74cr LT Loan PARVATI AGRO: CARE Reaffirms B+ Rating on INR17.27cr LT Loan PREMIER COTSPIN: CRISIL Suspends B+ Rating on INR115MM Term Loan PULSE POWER: CRISIL Suspends B Rating on INR32.5MM Cash Loan R. PIYARELALL: CRISIL Suspends D Rating on INR550MM LOC R. PIYARELALL IRON: CRISIL Suspends D Rating on INR250MM Loan RADHA-RUKMAN: CARE Reaffirms B+ Rating on INR22.11cr Loan RAJEEV KUMAR: CARE Assigns B Rating to INR0.8cr LT Bank Loan ROCK REGENCY: CARE Reaffirms B- Rating on INR5.41cr LT Loan RR FABS: CARE Reaffirms B+ Rating on INR3.80cr LT Bank Loan SANWARIYA IMPEX: CARE Assigns B+ Rating to INR6.52cr LT Loan SHRESHT INDUSTRIES: CRISIL Rates INR110MM Bank Loan at B SHRI GURU: CARE Revises Rating on INR30cr LT Bank Loan to B+ SONARCH INT'L: CARE Revises Rating on INR22.5cr Loan From B+ SRI RAM: CRISIL Suspends B- Rating on INR270MM Cash Credit STAR WIRE: CARE Lowers Rating on INR53.60cr LT Loan to D STERIMED SURGICALS: CRISIL Ups Rating on INR30MM Cash Loan to B SUNIL GARG: CRISIL Suspends B+ Rating on INR35MM Cash Credit TRANSSTROY (INDIA): CARE Lowers Rating on INR938.32cr Loan to D VARAD EXTRUSIONS: CARE Revises Rating on INR5.68cr Loan From B+ WHITE LOTUS: CRISIL Reaffirms B Rating on INR104.5MM Bank Loan I N D O N E S I A BUMI SERPONG: Fitch Publishes 'BB-' IDR; Outlook Stable BUMI SERPONG: Moody's Assigns Ba3 Corporate Family Rating LIPPO KARAWACI: Fitch Affirms 'BB-' IDR; Outlook Stable N E W Z E A L A N D KIWI FORESTRY: Two Units' Collapse Hurt Truck Firms S I N G A P O R E JONES THE GROCER: Singapore Unit's Assets Up For Sale S R I L A N K A SRILANKAN AIRLINES: Is 'Technically' Insolvent X X X X X X X X * Large Companies with Insolvent Balance Sheets - - - - - ================= A U S T R A L I A ================= 30THIRTY PTY: Marketing Agency Placed Into Administration --------------------------------------------------------- 30thirty Pty Ltd, a marketing agency which represented well-known businesses including Everready, Adriano Zumbo, Magnum, Nikon and Schick, has collapsed into administration. SmartCompany says the business had turnover last financial year of AUD4.4 million but it ran into trouble, with Kathleen Vouris and Blair Pleash of Hall Chadwick appointed as administrators this week. Ms. Vouris told SmartCompany creditors are owed around $670,000. "We are still assessing the financial position of the company but obviously the goal of an administration is to see if a restructuring process can be put in place," the report quotes Ms. Vouris as saying. 30thirty's remaining 10 employees were already let go prior to the appointment of the administrators, the report notes. SmartCompany relates that Ms. Vouris said cash flow was the major issue behind 30thirty's collapse. The report says the administrators are "exploring all the options" including a potential sale of the business. "We just need to get our heads around the financial position," Ms. Vouris told SmartCompany. 30thirty -- http://3030.com.au/-- was founded in 2001 and billed itself as a "multi award winning integrated marketing agency," the report discloses. Its services included marketing strategy, social media, photography, art direction, licensing and sponsorship. BCD RESOURCES: PwC Appointed as Administrators ---------------------------------------------- BCD Resources NL announced on April 10 the appointment of Administrators Messrs Gregory Hall and William Honner of PricewaterhouseCoopers, Sydney, acting on behalf of MKS Precious Metals (formerly MKS Capital Limited). The appointment of Voluntary Administrators provides a brief moratorium period during which the Administrators will work with various parties to develop proposals to put to creditors, who will then decide the future of the company. "We understand that a Deed of Company Arrangement may be proposed, which the Administrators would put to creditors in the meeting to decide the Company's future. BCD will remain in voluntary suspension throughout the appointment of the Receivers and Managers and Administrators," BCD said in statement to the stock exchange. As previously advised, in January 2015, BCD advised the ASX that MKS Precious Metals had appointed Messrs Chris Palmer and Bryan Collis of O'Brien Palmer as Receiver and Manager of BCD. Prior to this appointment site works at Lorena were put on hold so that the Company could review the development costs and negotiate its funding requirements to complete the development and commissioning of Lorena. Following the Company's review of the cost and timing to complete the development of Lorena, BCD has been in discussions with Malachite regarding a potential restructure of the current JV agreement to assist the Company with its additional funding requirements. "BCD and its Receiver and Manager have now been advised by Malachite that BCD has to date not fully met its obligations to develop the Lorena Gold Project and that Malachite has a right to terminate the agreement with BCD. Notwithstanding this, Malachite remains in discussions with the Receiver and Manager and is awaiting information from them to consider their latest proposal together with details of the proposed DOCA," the company said. About BCD Resources Based in Australia, BCD Resources NL, formerly Beaconsfield Gold NL, -- http://www.bcdresources.com.au/-- engages in the gold production and exploration at the Tasmania Mine in north-east Tasmania and mineral exploration in Tasmania and Victoria. Beaconfield gold mine is located in Beaconsfield, Tasmania, Australia. GVB SHELF: First Creditors' Meeting Set For April 22 ---------------------------------------------------- Bradd William Morelli of Jirsch Sutherland was appointed as administrator of GVB Shelf Pty Ltd on April 10, 2015. A first meeting of the creditors of the Company will be held at Jirsch Sutherland, Level 4, 55 Hunter Street, in Sydney, on April 22, 2015, at 10:00 a.m. MAIN INDUSTRIAL: Administrators Seek Expression of Interest ----------------------------------------------------------- Cliff Sanderson at Dissolve.com.au reports that urgent expressions of interest are being sought for the sale of the assets and business or equity investment of Main Industrial and Electrical Pty Ltd. Assets for sale include goodwill and related intellectual property that includes established customer base, equipment and plant, fully fitted out motor vehicles, office equipment, stock and leased premises. The sale may also include the Laser Group membership which is subject to the consent of the group. Main Industrial and Electrical operates an electrical business mainly offering maintenance services to retail and commercial customers in Adelaide Metropolitan, South Australia and CBD areas. The company, which trades as Laser Electrical Adelaide CBD, was placed into administration on April 8, 2015 with Desmond Robert Munro, Alan Scott and Stuart Otway of BRI Ferrier being appointed administrators. PFSI PTY: First Creditors' Meeting Slated For April 22 ------------------------------------------------------ Gavin Moss & Nick Combis of Vincents Chartered Accountants were appointed as administrators of PFSI Pty Ltd, formerly known As "Pro-Finish Shop Fitting & Interiors Pty Ltd, on April 10, 2015. A first meeting of the creditors of the Company will be held at The Theatrette, Wollongong Central Library, 41 Burelli Street, in Wollongong, New South Wales, on April 22, 2015, at 4:00 p.m. SPECIAL TASK: In Liquidation; Creditors' Meeting Set April 24 ------------------------------------------------------------- Timothy Clifton and Simon Miller of Clifton Hall were appointed as Joint and Several Liquidators of Special Task Group Pty Ltd on April 14, 2015. A meeting of creditors will be held at 11:00 a.m. on April 24, 2015, at Clifton Hall, Level 3, 431 King William Street, in Adelaide. * AUSTRALIA: Over 6K Independent Hardware Stores to Close by 2024 ----------------------------------------------------------------- Cara Waters at SmartCompany reports that the number of hardware stores in Australia is set to fall from 20,920 to 14,050 over the next 10 years, with 6142 independent retailers set to close by 2024, according to a GDC Advisory forecast. Intensifying competition in the hardware market between Wesfarmers-owned Bunnings and Woolworths-owned Masters led the Australian Competition and Consumer Commission in 2012 to oppose Woolworths' proposed acquisition of an independent chain of three hardware stores owned by G Gay & Co in Ballarat, Victoria, according to the report. SmartCompany relates that the latest GDC Advisory report, titled Home Improvement Industry Market Report 2014, showed specialist hardware companies, including Reece Plumbing, Dulux and Kresta, accounted for 46% of the AUD45.3 billion Australian market in 2014. This was followed by a 23% share by big box retailers, including Bunnings and Masters, 9% through buying groups, 3% through independents, 1% through online retailers and 18% through other sources, SmartCompany relays. But spending at independent hardware retailers is set to contract at a compound annual growth rate of 2% per year over the next decade, with total revenues dropping from AUD1.2 billion in 2014 to just AUD994 million in 2024, according to SmartCompany. By contrast, over the same period, spending at specialist retailers is set to grow from AUD20.8 billion to AUD28 billion, big box revenues will surge from AUD10.2 billion to AUD22 billion, and online will grow from AUD252 million to AUD670 million, SmartCompany states. But it's in the number of stores that the independent hardware sector is really going to be hammered, according to GDC Advisory. According to SmartCompany, the figures show the number of independent hardware stores has fallen from 18,251 in 2012 to 15,948, with the number of independents set to collapse further to just 9756 in 2014. A similar report, published in March by IBISWorld, titled Hardware and Building Supplies Retailing in Australia, showed 80,027 people are employed in the hardware and building supplies retailing industry, meaning thousands of jobs will potentially be lost as a result of the closures, SmartCompany reports. GDC Advisory director Geoff Dart told SmartCompany a number of factors are contributing to the closure of independent hardware stores. "The first thing is it's a pretty tough market, and the second thing is the competition is intensifying from the corporates -- Woolies with Masters and Wesfarmers with Bunnings -- and Mitre 10 are still aggressive," the report quotes Mr. Dart as saying. "Mitre 10 is owned by Metcash, who also own IGA. With IGA, many of the stores are joint ventures where Metcash might own 26% and the independent store owner will own the rest, and they're doing something similar with Mitre 10 joint ventures." "You also have the issue of succession planning. A lot of baby boomers are getting close to retirement and no one wants to take over the business, even if it's doing well." SmartCompany says the growing market penetration of big box retailers is also leading many independents to form their own buying groups. "HBT -- which is a growing buying group for independent hardware stores -- has now grown to over 500 members," Mr. Dart, as cited by SmartCompany, said. ========= C H I N A ========= CHINA METALLURGICAL: S&P Hikes LT Corp Credit Rating From 'BB+' --------------------------------------------------------------- Standard & Poor's Ratings Services said that it had raised its long-term corporate credit rating on China Metallurgical Group Corp. (MCC) to 'BBB-' from 'BB+'. The outlook is stable. "We also raised our Greater China regional scale rating on the China-based engineering and construction (E&C) company to 'cnA-' from 'cnBBB+'. At the same time, we raised the long-term issue rating on the US$500 million senior unsecured notes issued by MCC Holding (Hong Kong) Corp. Ltd. and guaranteed by MCC to 'BBB-' from 'BB+'. We also raised our long-term Greater China regional scale rating on the notes to 'cnA-' from 'cnBBB+'." "The upgrade reflects our expectation that MCC will continue to generate positive operating cash flows over the next one to two years," said Standard & Poor's credit analyst Leo Hu. "MCC's business risk profile has improved following enhanced operating efficiency, as shown in the company's sustained generation of positive operating cash flows over the past two years. We therefore revised MCC's business risk profile to "satisfactory" from "fair." In 2012, the company's senior management shifted its strategic focus back to the core E&C business, although still maintaining the supplementary business segments, and placed high priority on cash collection and strict working capital management. As a result, the company materially reduced its working capital outflow, leading to positive operating cash flows in 2013 and 2014, compared with negative Chinese renminbi (RMB) 30 billion in 2010." "We see a limited likelihood of further material losses in MCC's resources segment over the next 12-24 months. The performance of MCC's resources segment has improved, as shown by 50% lower operating losses in 2014 compared with 2013. The enhanced performance was a result of the company's significant efforts over the past two years to reorganize and ramp up production at its existing resource projects." "In our view, MCC will continue to use its free operating cash flows [FOCF] to repay debt, as it has been doing over the past two years," said Mr. Hu. "We expect the company's tight working capital management and reduced capital expenditure to support its debt-reduction initiative." "MCC's bills and accounts receivables increased moderately by about RMB2 billion in 2014 because of the focus on cash collection, while the inventory level was largely unchanged. In addition, the company reduced its total capital expenditure to less than RMB2 billion in 2014, from RMB6 billion in 2012, as it slashed investments aimed at non-core business expansion. We expect MCC's continued focus on its core business to further reduce working capital outflows while keeping capital expenditure at maintenance levels, thereby keeping FOCF positive." "The stable outlook reflects our expectation that MCC will maintain its steady financial performance over the next 12-24 months. We anticipate that the company will maintain its profitability while continuing to limit working capital outflow, and use positive FOCF to repay debt, leading to steadily improving credit metrics. We also assume that MCC will continue to restrict its capital expenditure while ramping up production at its resources projects to reduce net operating losses in that segment. However, the company's financial leverage will remain high over the next 12 months, despite improving." "We could raise the rating if MCC materially improves its financial risk profile, such that its debt-to-EBITDA ratio is less than 4.5x on a sustained basis with EBITDA interest coverage of more than 3x. This could happen if the company's profitability and working capital are higher than we anticipate and it continues to use most of its FOCF to repay debt." "We could lower the rating if MCC's financial risk profile deteriorates, as indicated by EBITDA interest coverage approaching 2x. Weaker-than-expected profitability or working capital as a result of increasing competition in the Chinese E&C industry, or MCC's increasing appetite for debt-funded acquisition or expansion could lead to such a scenario, in our view." KAISA GROUP: Public Float at 20.81pc, Below 25pc Requirement ------------------------------------------------------------ The South China Morning Post reports that Kaisa Group Holdings said on April 16 its public float fell to 20.81 per cent, below the minimum regulatory requirement of 25 per cent. Trading in Kaisa shares has been suspended since March 31, 2015, the report says. According to the report, the Shenzhen-based developer said in a stock exchange filing that the family of chairman Kwok Ying-shing holds a 49.25 per cent stake in the company, while 29.94 per cent is owned by the Sino Life group. Kaisa's outstanding shares stood at 1.06 billion, the report notes. Kwok, who resigned about three months ago, returned as chairman last week, SCMP recalls. SCMP relates that Houlihan Lokey (China), the financial advisor in the restructuring of the group's debt obligations, said they will take into account the current shortfall of the public float. It would assist Kaisa in reviewing and assessing various options and in formulating a plan to implement an appropriate debt restructuring, the report relays citing a company statement. Kaisa, which is reportedly under an anti-graft investigation, is struggling to restructure US$7.6 billion of debt, the report notes. It failed to pay US$52 million in interest due on March 18 and March 19 on offshore notes, but was given a one-month grace period, says SCMP. About Kaisa Group China-based Kaisa Group Holdings Ltd. (HKG:1638) -- http://www.kaisagroup.com/english/-- is an investment holding company, and its subsidiaries are engaged in property development, property investment and property management. As reported in the Troubled Company Reporter-Asia Pacific on March 9, 2015, Moody's Investors Service said that Kaisa Group Holdings Ltd's proposed onshore debt restructuring, if successful, will constitute a distressed debt exchange -- a default event under Moody's definition -- but has no immediate impact on its Ca corporate family and senior unsecured debt ratings. The transaction will also help reduce near-term liquidity stress. The ratings remain under review for upgrade. On February 9, 2015, Kaisa announced the resumption of trading in its shares and provided some updates on recent developments, including interest payments under its 2013 senior notes, demand notices for payment against the company, and court proceedings. On February 6, 2015, Sunac China Holdings Limited (Ba3 stable) and Kaisa jointly announced that Sunac conditionally agreed to acquire 49.25% of Kaisa's outstanding shares from its major shareholder, Mr. Kwok Ying Shing and his family members. The completion of the share purchase is conditional on a number of factors, including the resolution of Kaisa's debt payments, the waiver by creditors of any actions against breaches of the terms of existing debt due to the share purchase, the resolution of all existing disputes and court applications faced by the company, the resolution of irregularities in Kaisa's business operations, and shareholder approvals for certain actions. ========= I N D I A ========= ADITYA STEEL: CRISIL Reaffirms B Rating on INR170MM Cash Loan ------------------------------------------------------------- CRISIL ratings on the bank facilities of Aditya Steel Rolling Mills Pvt Ltd (ASRM) continue to reflect ASRM's below-average financial risk profile marked by its small net worth, high total outside liabilities to tangible net worth ratio and below-average debt protection metrics. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 40 CRISIL A4 (Reaffirmed) Cash Credit 170 CRISIL B/Stable (Reaffirmed) Term Loan 10 CRISIL B/Stable (Reaffirmed) The ratings also factor in the company's large working capital requirements, and its exposure to intense competition in the steel trading segment. These rating weaknesses are partially offset by the extensive experience of ASRM's promoters in the steel trading business, and its established relations with customers. Outlook: Stable CRISIL believes that ASRM will continue to benefit over the medium term from its promoters' extensive industry experience and its established relations with customers. The outlook may be revised to 'Positive' if the company registers a substantial and sustained improvement in its revenues and profitability margins, or there is a sizeable increase in its net worth on the back of capital additions by the promoters. Conversely, the outlook may be revised to 'Negative' if there is a substantial decline in ASRM's profitability margins, or deterioration in its capital structure because of larger-than-expected working capital requirements. Incorporated in 1994, ASRM manufactures and trades in thermo- mechanically treated bars and other steel intermediaries (blooms, billets, and ingots). The company is promoted by Mr. S K Khemka and Mr. P K Khemka, who have about three decades' experience in the steel business. AKT INTERNATIONAL: CRISIL Reaffirms B Rating on INR280MM Loan ------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of AKT International Pvt Ltd (AKT) continue to reflect small scale of and short track record of operations in an intensely competitive gold jewellery retailing market and below-average financial risk profile. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Adhoc Limit 50 CRISIL B/Stable (Reaffirmed) Cash Credit 280 CRISIL B/Stable (Reaffirmed) Drop Line Overdraft Facility 30 CRISIL B/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 40 CRISIL B/Stable (Reaffirmed) These rating strengths are partially offset by the strong brand presence of AKT's principal 'Tanishq'. Outlook: Stable CRISIL believes that AKT will benefit from the strong brand presence of its principal 'Tanishq' in the gold jewellery business over the medium term. The outlook may be revised to 'Positive' if the company records significant and sustained improvement in its revenue and operating margin resulting in improvement in capital structure and debt protection metrics. Conversely, the outlook may be revised to 'Negative' if there is low growth in revenue and margins, or its working capital cycle stretches or if AKT undertakes a large debt-funded capex leading to weakening of its financial risk profile. Update AKT registered sales of around INR540 million for the nine months through December 2014 and will report sales expected at INR650 million to INR700 million for 2014-15 (refers to financial year, April 1 to March 31). It registered an operating income of around INR327 million in 2013-14, on account of first full year of operations. It reported operating margin of 7.0 per cent in 2013- 14. CRISIL believes that AKT's operating margin will remain around 7.0 per cent over the medium. AKT's financial risk profile remained weak marked by low net worth of INR47 million and high total outside liabilities to tangible net worth ratio of 7.0 times for 2013-14. Its debt protection metrics remained weak with low interest coverage and net cash accruals to total debt of 1.69 times and 0.03 times respectively, in 2013-14. CRISIL believes that AKT's financial risk profile will remain weak over the medium term on account of low profitability and working-capital-intensive operations leading to high reliance on bank borrowings. AKT's liquidity is expected to remain weak marked my sufficient cash accruals of INR10 million to INR13 million expected over the medium term against debt obligation of INR10 million. The company's bank limits remained utilised at 91 per cent for the 12 months through December 2014. However, liquidity is supported by equity infusion of INR9 million by promoters in 2014-15. Incorporated in 2012 by Mr. Ashok Kumar Tiwari and his son Mr. Akash Tiwari, AKT retails branded gold and diamond jewellery under a franchise agreement with Tanishq (jewellery brand of Titan Company Ltd [rated, 'CRISIL AA+/Stable/CRISIL A1+']). The company has showrooms in Bareilly (Uttar Pradesh) and Haldwani (Uttarakhand). AMRIT BIO-ENERGY: CRISIL Suspends D Rating on INR216MM Loan ----------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Amrit Bio-Energy and Industries Ltd (ABEIL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Funded Interest 44 CRISIL D Suspended Term Loan Term Loan 216 CRISIL D Suspended Working Capital 35 CRISIL D Suspended Term Loan The suspension of ratings is on account of non-cooperation by ABEIL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, ABEIL is yet to provide adequate information to enable CRISIL to assess ABEIL'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' ABEIL was incorporated in 2004 under the Amrit group. The Amrit group is mainly engaged in real estate development in West Bengal. ABEIL set up a 10-megawatt biomass power plant in Bankati (West Bengal) and has signed a power purchase agreement with West Bengal State Electricity Board. ANRAK ALUMINIUM: CARE Revises Rating on INR2,995cr Loan to D ------------------------------------------------------------ CARE revises the ratings assigned to the bank facilities of Anrak Aluminium Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 2995 CARE D Revised from CARE BB Rating Rationale The revision in the ratings assigned to the bank facilities of Anrak Aluminium Limited (AAL) factors in delays in the debt- servicing on account of the delay in commencement of operations. AAL was incorporated in 2007 and is promoted by Penna Group along with Ras Al Khaimah Investment Authority (RAKIA - Investment Body of Government of Ras Al Khaimah) to set up a 1.5 million tons per annum (MTPA) alumina refinery along with 3*75 (225 MW) coal-based co-generation power plant at Vishakhapatnam. AAL executed Bauxite supply agreement with Andhra Pradesh Mineral Development Corporation Ltd (APMDC). As per the agreement, APMDC shall supply bauxite from four blocks covering an area of 1162 Hectares of Jerrala deposits with mineable reserves of 200 Million tons. However, APMDC is waiting for Stage II clearance from the Ministry of Environment and Forestry (MoEF). Despite completion of the project and achieving commercial operations on March 31, 2013, AAL's operations from the alumina refinery segment did not takeoff due to non-availability of raw material (Bauxite) from Jerrala mines. Currently AAL is operating 150 MW co-generation power plants from November 2013. AAL has entered into short term Power Purchase Agreement with power distribution companies in AP for supply of 130MW of power at a tariff of INR5.45 per unit valid till May 28, 2015. During FY14 (refers to the period April 1 to March 31), AAL reported operating income of INR73.77 crore and incurred loss of INR40.65 crore. During 9MFY15 (UA), AAL achieved operating income from power generation of INR361.75 crore and incurred loss of INR0.79 crore. ASHIRWAD CHAIN: CRISIL Suspends D Rating on INR105MM Bank Loan -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Ashirwad Chain Company (ACC, part of the Ashirwad group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 95 CRISIL D Proposed Long Term Bank Loan Facility 105 CRISIL D The suspension of ratings is on account of non-cooperation by ACC with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, ACC is yet to provide adequate information to enable CRISIL to assess ACCO'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' ACHPL, set up in 2012 by Mr. Amit Singla and his family, commenced operations in April 2012 after taking over the operations of Ashirwad Jewellery House (AJH). The company manufactures and sells gold jewellery, particularly gold chains, in Delhi. Like ACHPL, ACC is also in the gems and jewellery business. B S TAR: CRISIL Suspends B+ Rating on INR55MM Cash Credit --------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of B S Tar Pvt Ltd (BS Tar). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 55 CRISIL B+/Stable Letter of Credit 10 CRISIL A4 Standby Line of Credit 5 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by BS Tar with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, BS Tar is yet to provide adequate information to enable CRISIL to assess BS Tar'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' BS Tar was originally set up as a proprietorship firm in 1941; it was reconstituted as a partnership concern, Bhagwandas Sagarmal, in 1983. This firm was again reconstituted as a private limited company with the current name in 1999. Owned by Mr. Santosh Kumar Kedia and his family members, BS Tar is based in Kolkata (West Bengal). The company manufactures coal tar pitch, dehydrated coal tar, and a by-product, creosote oil; it also trades in coal tar. BELGACHI TEA: CARE Revises Rating on INR12.34cr Loan From B+ ------------------------------------------------------------ CARE revises/reaffirms the rating assigned to the bank facilities of The Belgachi Tea Co. Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 12.34 CARE BB- Revised from CARE B+ Short-term Bank Facilities 0.58 CARE A4 Reaffirmed Rating Rationale The revision in the long-term rating of The Belgachi Tea Co. Ltd. (TBL) takes into cognizance the successful commissioning of capacity expansion project without any cost & time overrun and improvement in profitability margins in FY14 (refers to the period April 1 to March 31) vis-…-vis FY13. However, the ratings continue to be constrained by its small scale of operation, leveraged capital structure, inherent susceptibility of green leaf availability to vagaries of the nature, highly labour-intensive nature of business entailing substantial employee expenses and its presence in a fragmented & competitive industry. The ratings, however, draw comfort from the long track record & satisfactory experience of the promoters in the tea industry, moderate operational parameters and presence of backward integration for the major raw material (i e, tea leaf). The ability of the company to grow its scale of operation while sustaining its profitability margin amidst agro-climatic risks as well as the inherent cyclicality of the fixed cost intensive tea industry would be the key rating sensitivities. The Belgachi Tea Company Limited (TBL) was incorporated in 1921 by Mr Musaddilal Dalmia, Mr Mathuraprasad Saroff and Mr Makhanlal Saroff of West Bengal for cultivating and processing of black tea. Over the years, there was multiple change of hands, the company, in 2011, was acquired by the present promoter, Mr Apurba Guha, Mr Amit Agarwal, Mr Vivek Agarwal and Mr Ankit Agarwal. The revamped unit commenced operation from April, 2011 with processing capacity of 5 Lakhs Kg per annum. After acquisition, the company undertook expansion in phases and has increased the processing capacity to 32.50 Lakhs Kg Per Annum of CTC (Crush, Tear and Curl) tea by August, 2014. Tea is sold by TBL through auctions and brokers. Currently, TBL owns one tea estate named The Belgachi Tea Estate in Darjeeling, West Bengal and its tea processing facility is located near the tea estate, which process the leaf from the garden. The aggregate area available for cultivation is 632.19 hectares; of which, the area under cultivation is 462.89 hectare, having average yield of 24.80 kgs per hectare in FY14. BENTEC INDIA: CRISIL Ups Rating on INR150MM Cash Loan to B ---------------------------------------------------------- CRISIL has upgraded its rating on the long-term bank facilities of Bentec India Ltd (BIL) to 'CRISIL B/Stable' from 'CRISIL B- /Stable', while reaffirming its rating on the company's short-term facilities at 'CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 420 CRISIL A4 (Reaffirmed) Cash Credit 150 CRISIL B/Stable (Upgraded from 'CRISIL B-/Stable') Letter of Credit 50 CRISIL A4 (Reaffirmed) Proposed Long Term 50 CRISIL B/Stable (Upgraded Bank Loan Facility from 'CRISIL B-/Stable') The rating upgrade reflects slight improvement in BIL's working capital management backed by better collection of receivables and receipt of retention money from its customers. This has resulted in lower bank limit utilisation, and hence, to improvement in the company's liquidity. CRISIL believes that the liquidity will improve further backed by faster collection of receivables and better working capital management. The ratings reflect BIL's modest scale of operations and its stretched liquidity because of working-capital-intensive operations. These rating weaknesses are partially offset by the extensive experience of BIL's promoter in the meter manufacturing industry, the company's diverse customer profile, and its moderate financial risk profile, marked by a strong net worth, low gearing and moderate debt protection metrics. Outlook: Stable CRISIL believes that BIL will continue to benefit over the medium term from its promoter's extensive industry experience. The outlook may be revised to 'Positive' if the company's working capital cycle improves on account of faster realisation of receivables, or if its revenue and profitability increase substantially, leading to higher cash accruals, thereby strengthening its liquidity. Conversely, the outlook may be revised to 'Negative' in case of any further stretch in BIL's working capital cycle, or unanticipated capital expenditure, or a decline in its profitability, leading to weakening of its financial risk profile. Incorporated in 1987, BIL (formerly known as Bentec Electricals and Electronics Pvt Ltd) manufactures electric meters and electrical wires. The company is promoted by Mr. Anup Bhartia. BIL's main customers are various state electricity boards, corporates such as Damodar Valley Corporation Ltd and National Hydel Power Corporation Ltd, and various housing cooperatives. BIL is based in Kolkata. BIL reported a profit after tax (PAT) of INR4.98 million on net sales of INR966.2 million for 2013-14 (refers to financial year, April 1 to March 31), as against a PAT of INR5.72 million on net sales of INR1227.4 million for 2012-13. BMC FERROCAST: CRISIL Suspends B+ Rating on INR57.5MM Term Loan --------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of BMC Ferrocast Pvt Ltd (BMC). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 15.5 CRISIL B+/Stable Suspended Term Loan 57.5 CRISIL B+/Stable Suspended The suspension of ratings is on account of non-cooperation by BMC with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, BMC is yet to provide adequate information to enable CRISIL to assess BMC'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' BMC manufactures rear hubs and other castings with a capacity of 1200 tonnes per annum. The company, promoted by Mr. Mahabir Ram and Mr. Deepak Dokania, started commercial operations in November 2012. BUDHIA AGENCIES: CRISIL Suspends B+ Rating on INR152.5MM Loan ------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Budhia Agencies Pvt Ltd (BAPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 25 CRISIL B+/Stable Suspended Inventory Funding Facility 152.5 CRISIL B+/Stable Suspended Proposed Long Term Bank Loan Facility 5.0 CRISIL B+/Stable Suspended The suspension of ratings is on account of non-cooperation by BAPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, BAPL is yet to provide adequate information to enable CRISIL to assess BAPL'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'. BAPL was set up in 2002 by Mr. Rahul Budhia and his family in Ranchi (Jharkhand). The company is a dealer of TML's commercial vehicles. BUSH FOODS: CRISIL Suspends D Rating on INR2.67BB Packing Loan -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Bush Foods Overseas Pvt Ltd (Bush Foods). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 1980 CRISIL D Suspended Packing Credit 2670 CRISIL D Suspended Proposed Long Term 100 CRISIL D Suspended Bank Loan Facility Cash Credit 1850 CRISIL D Suspended Cash Credit 500 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by Bush Foods with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, Bush Foods is yet to provide adequate information to enable CRISIL to assess Bush Foods'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' Bush Foods was originally set up as a partnership firm in 1992 by Mr. Virkaran Awasty; the firm was reconstituted as a private limited company in 2005. Bush Foods mills and processes basmati rice for the domestic and export markets. The company markets its basmati rice under the brands Neesa, Indian Star, and Himalayan Crown, with Neesa being the dominant brand. Bush Foods' manufacturing unit is in Sonepat (Haryana). In March 2013, HNBV acquired a controlling stake in Bush Foods. CHITRA UTSAV: CRISIL Ups Rating on INR162M Discounting Loan to B- ----------------------------------------------------------------- CRISIL has upgraded its rating on the long-term bank facilities of Chitra Utsav Video Pvt Ltd (CUPL) to 'CRISIL B-/Stable' from 'CRISIL D'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Lease Rental 162 CRISIL B-/Stable (Upgraded Discounting Loan from 'CRISIL D') The rating upgrade reflects CUPL's timely servicing of its debt over the past six months. CRISIL believes that CUPL will maintain its improved liquidity over the medium term, supported by its rental income receipts from its marquee tenants which will be adequate to meet its maturing debt obligations. The rating reflects CUPL's susceptibility to cyclicality in the real estate industry and its average financial risk profile. These rating weaknesses are partially offset by the strategic location of its commercial building. Outlook: Stable CRISIL believes that CUPL will continue to benefit over the medium term due to presence of marquee tenants. The outlook may be revised to 'Positive' if the company's financial risk profile, particularly liquidity, improves with increase in rental income. Conversely, the outlook may be revised to 'Negative' if CUPL's liquidity weakens because of a decline in lease rentals or if the company contracts a large debt funded capital expenditure program. CUPL was founded by Mr. Anil Khanna in Gurgaon in 1989. The company has developed a six-storey commercial building in Sector 32, Gurgaon, with a total floor area of over 100,000 square feet, which has been completely leased out. CLASSIC WEARS: CRISIL Suspends D Rating on INR92.2MM Term Loan -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Classic Wears Pvt Ltd (CWL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 2 CRISIL D Suspended Cash Credit 90 CRISIL D Suspended Proposed Long Term 15.8 CRISIL D Suspended Bank Loan Facility Term Loan 92.2 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by CWL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, CWL is yet to provide adequate information to enable CRISIL to assess CWL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings' Set up in 1984 by Mr. Raj Awasthy and his wife, CWL manufactures ready-made woollen garments at its facility in Ludhiana (Punjab). CWL mainly sells its products in retail through its own network of 7 showrooms, and through its associate company, Sobhagia Sales Private Limited (SSPL), 52 showrooms. DINESH INFRAPROJECTS: CRISIL Suspends B- Rating on INR27MM Loan --------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Dinesh Infraprojects Pvt Ltd (DIPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 19.5 CRISIL A4 Suspended Cash Credit 27.0 CRISIL B-/Stable Suspended Overdraft Facility 23.0 CRISIL A4 Suspended Proposed Long Term Bank Loan Facility 10.0 CRISIL B-/Stable Suspended The suspension of ratings is on account of non-cooperation by DIPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, DIPL is yet to provide adequate information to enable CRISIL to assess DIPL'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' DIPL was established in Chakbad (West Bengal) in 2011 by Mr. Dinesh Mahoto by reconstituting partnership firm, Dinesh Infraprojects, founded by his father in 1988. The company undertakes civil construction, the scope of which includes construction of residential complexes, buildings, roads, and platforms. HYGIENE FEEDS: CRISIL Suspends B Rating on INR90MM Cash Loan ------------------------------------------------------------ CRISIL has suspended its ratings on the bank facilities of Hygiene Feeds & Farms Pvt. Ltd. (HFPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 90 CRISIL B/Stable Term Loan 50 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by HFPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, HFPL is yet to provide adequate information to enable CRISIL to assess HFPL'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' Established in 2010 by Mr. Robin Dahiya and Mr. Jitender Dahiya; HFPL is setting up plant to manufacture poultry feeds. The facility is located at Adhiana Village, Panipat. INDIAN YARN: CARE Reaffirms D Rating on INR67.25cr LT Loan ---------------------------------------------------------- CARE reaffirms the ratings assigned to the bank facilities of Indian Yarn Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 67.25 CARE D Reaffirmed Short term Bank Facilities 3.36 CARE D Reaffirmed Rating Rationale The ratings assigned to the bank facilities of Indian Yarn Limited (IYL) continue to factor in the ongoing delays in debt servicing due to stressed liquidity position. IYL incorporated in 1992 was promoted by Mr V K Indrayan. IYL is engaged in the manufacturing of synthetic yarn with its manufacturing facilities at SAS Nagar (Punjab) and has installed capacity of 38,616 spindles. During H1FY13, the promoters of Shiva Texfab Limited (Ludhiana-based group) have entered into an agreement with the erstwhile promoters of IYL to acquire 100% stake in IYL. The transaction was completed at the end of FY13 (refers to the period April 1 to March 31). IYL registered a total operating income of INR147.15 crore during FY14 (Aud.; refers to the period April 1 to March 31) with a PBILDT of INR8.08 crore and net losses of INR2.68 crore as against total operating income of INR142.78 crore during FY13 with a PBILDT of INR18.12 crore and net losses of INR7.94 crore. ISPAT ALLOYS: CRISIL Suspends D Rating on INR120MM Term Loan ------------------------------------------------------------ CRISIL has suspended its ratings on the bank facilities of Ispat Alloys India Pvt Ltd (IAIPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Packing Credit 20 CRISIL D Term Loan 120 CRISIL D The suspension of ratings is on account of non-cooperation by IAIPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, IAIPL is yet to provide adequate information to enable CRISIL to assess IAIPL'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' IAIPL was established in 2008-09 (refers to financial year, April 1 to March 31) by Mr. Rajiv Gupta. The company manufactures ferromanganese, ferrosilicon, and silico manganese alloys. Its manufacturing unit is in Deogarh district (Odisha). JAGDAMBA TIMBERS: CARE Reaffirms B/A4 Rating on INR2cr Bank Loan ---------------------------------------------------------------- CARE reaffirms the ratings assigned to the bank facilities of Jagdamba Timbers Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term/ Short-term 2 CARE B/CARE A4 Bank Facilities Reaffirmed Short-term Bank Facilities 10 CARE A4 Reaffirmed Rating Rationale The ratings assigned to the bank facilities of Jagdamba Timbers Private Limited (JTP) continue to be constrained by its small scale coupled with short track record of operations and its weak financial risk profile. The ratings are further constrained by the foreign exchange fluctuation risk and intense competition and dependence on the real estate sector. The ratings, however, take comfort from the experience of its promoters in the trading of timber. Going forward, the ability of JTP to increase its scale of operations while improving its profitability margins and capital structure shall be the key rating sensitivities. The ability of the company to manage foreign currency fluctuation risk shall also be a rating sensitivity. Incorporated in 2010, JTP is promoted by Mr Radhey Shyam Jain and his son, Mr Niraj Jain. The company commenced its business operations from 2012. JTP is engaged in the business of trading and processing of timber logs. The timber logs are imported mainly from Malaysia, Canada and Russia which is subsequently sized at its saw mill units in Gandhidham, Gujarat, into various commercial sizes. The company has its offices located in Gandhidham (Gujarat) and Karnal (Haryana). The company sells its products mainly in Punjab, Delhi and Haryana regions. The customers of JTP primarily include traders. For FY14 (refers to the period April 01 to March 31), JTP achieved a total operating income (TOI) of INR23.61 crore with PBILDT and profit after tax (PAT) of INR0.58 crore and INR0.07 crore, respectively, as against TOI of INR23.18 crore with PBILDT and PAT of INR0.33 crore and INR0.07 crore, respectively, in FY13. During FY15, the company has achieved a total income of INR30.00 crore in 8MFY15. LAVASA HOTEL: CARE Reaffirms B Rating on INR18.81cr LT Loan ----------------------------------------------------------- CARE reaffirms rating assigned to bank facilities of Lavasa Hotels Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 18.81 CARE B Reaffirmed Rating Rationale The rating assigned to the bank facilities of Lavasa Hotels Limited (LHL) is constrained by continuous losses in the past, low number of rooms and weak financial indicators. The weak financial indicators are a cause of additional borrowing undertaken for repayment of loan along with high interest thereon to Lavasa Corporation Limited (LCL). However, the rating also takes into consideration operational nature of the hotel and established operator -- Fortune Park Hotels Limited. Ability of LHL to achieve revenue growth along with an improvement in the occupancy levels and improvement in the average room rates are the key rating sensitivities. LHL is a full service hotel promoted by Lavasa Corporation Limited (rated 'CARE C/CARE D') situated at the Sahyadri Mountains across the Warasgaon Lake in Dasve district, Lavasa, Maharashtra. Lavasa is India's first planned city spread over 23,000 acres and at a very close proximity to Mumbai and Pune. The hotel is spread over 1.5 acres of land with 48 standard rooms, 6 suites and 6 executive suites. The hotel also has three banquet halls with capacity for around 300 guests, 24 hour coffee shop and a lounge bar. The hotel is operated by Fortune Park Hotels Limited (100% subsidiary of ITC Limited) at a fee of 3% of the gross operating income. NAV DURGA: CARE Reaffirms B Rating on INR85.97cr LT Loan -------------------------------------------------------- CARE reaffirms the ratings assigned to the bank facilities of Nav Durga Fuel Pvt Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 85.97 CARE B Reaffirmed Short term Bank Facilities 23.50 CARE A4 Reaffirmed Rating Rationale The ratings continue to be constrained by the low capacity utilisation of the manufacturing facilities of Nav Durga Fuel Pvt. Ltd (NDFPL), lack of backward integration for primary raw materials, deterioration in financial performance in FY14 (refers to the period April 01 to March 31) resulting in net loss, working capital intensive operation leading to stretched liquidity position and inherent cyclicality of the steel industry. The above constraints are partially offset by the long business experience of the promoters and continuous equity infusion by the promoters over the years leading to satisfactory capital structure. Ability of the company to increase scale of operation, improve profitability levels and margin, manage working capital effectively and outlook of the domestic steel industry would remain the key rating sensitivities. Nav Durga Fuel Pvt. Ltd. belonging to Gadodia family of Orissa is engaged in manufacturing of sponge iron (90,000 MTPA), ingots (66,000 MTPA) and TMT Bars (90,000 MTPA). The company also has a captive coal based thermal power plant of 5 MW (from April 2010), a waste heat recovery based power plant of 5 MW (from April 2012) and a coal washery unit. NDFPL sells its products under the brand name "Shristi". Apart from this, NDFPL is also involved in trading of iron & steel related products, though contributing a small portion of revenue in FY14. NDFPL registered net loss of INR23.62 crore on total operating income of INR143.99 crore in FY14 (refers to the period April 1 to March 31) as compared to net loss of INR30.38 crore on a total operating income of INR107.92 crore in FY13 (refers to the period April 1 to March 31). Further, NDFPL posted net loss of INR2.4 crore on a net sale of INR89.0 crore during the half year ended September 30, 2014. NAV ENGINEERS: CRISIL Suspends D Rating on INR49.7MM Term Loan -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Nav Engineers Private Limited (NEPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 11 CRISIL D Suspended Letter of Credit 7.4 CRISIL D Suspended Term Loan 49.7 CRISIL D Suspended Working Capital Term Loan 3.5 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by NEPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, NEPL is yet to provide adequate information to enable CRISIL to assess NEPL'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' NEPL was incorporated in 1988, promoted by Mr. Navin Gupta. It manufactures woven and printed labels used in the garment and home furnishing segments. The company also undertakes schiffli embroidery on a job-work basis. Its plant is in Noida (Uttar Pradesh). NIRBHAI TEXTILES: CRISIL Suspends B- Rating on INR157MM Loan ------------------------------------------------------------ CRISIL has suspended its ratings on the bank facilities of Nirbhai Textiles Pvt Ltd (NTPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 157 CRISIL B-/Stable Term Loan 23 CRISIL B-/Stable The suspension of ratings is on account of non-cooperation by NTPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, NTPL is yet to provide adequate information to enable CRISIL to assess NTPL'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' NTPL, incorporated in 1994 and promoted by Mr. Pramod Kumar in Ludhiana (Punjab), manufactures suiting and shirting fabrics. The promoters have been trading in fabrics in Gujarat and Punjab since 1975. NTPL has capacity to manufacture about 7.6 million metres of fabric per annum. ORBIT RESORTS: CARE Reaffirms B+ Rating on INR232.74cr LT Loan -------------------------------------------------------------- CARE reaffirms the ratings assigned to the bank facilities of Orbit Resorts Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank facilities 232.74 CARE B+ Reaffirmed Rating Rationale The rating for the bank facilities of Orbit Resorts Pvt. Ltd. (ORPL) continues to be constrained by weak financial risk profile of the company, exposure to group companies in the form of investments and corporate guarantees and cyclical nature of the hotel industry.These constraints are, however, partially offset by the strength derived from operating and marketing arrangement with one of the leading hotel chains, EIH Ltd (Oberoi hotels group), and favourable location of the hotel properties. Going forward, the ability of the company to improve the average room revenue (ARR) and occupancy for hotels and improve its capital structure will remain the key rating sensitivities. ORPL, incorporated in March 1988, is engaged in the hospitality and transport business. The company owns two 5-star hotels in Gurgaon, Haryana, i e Trident and The Oberoi. Trident has been operational since February 2004. It is a 5-Star hotel having 136 rooms, three dining restaurant, two bars, a spa and conference and banquet facilities. The Oberoi commenced operations in March 2011 and is a 202 rooms property with two restaurants, a bar, a cigar lounge, a private club, a bakery shop, fitness and spa facility and conference and banquet facilities. Both the hotels run under operations management agreement with EIH Limited. ORPL also provides transport services by the name of Indo Canadian Transport and operates between Indira Gandhi International Airport, New Delhi to over 40 locations in Punjab and Haryana. During FY14 (refers to the period April 1 to March 31), ORPL has reported total operating income of INR245.01 crore with PAT of INR5.23 crore as compared to total operating income of INR189.96 crore with net loss of INR21.26 crore during FY13. PARVATI AGRO: CARE Reaffirms B+ Rating on INR17.27cr LT Loan ------------------------------------------------------------ CARE reaffirms the rating assigned to bank facilities of Parvati Agro Plast. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 17.27 CARE B+ Reaffirmed The ratings assigned by CARE are based on the capital deployed by the proprietor and the financial strength of the firm at present. The ratings may undergo a change in case of withdrawal of the capital or the unsecured loan brought in by the proprietor in addition to the financial performance and other relevant factors. Rating Rationale The rating assigned to the bank facilities of Parvati Agro Plast continues to be tempered by below average financial risk profile characterised by small scale of operations, leveraged capital structure, stretched liquidity position, and constitution as a proprietorship firm. The above mentioned constraints far outweigh the benefits derived from the experience of the proprietor, and positive industry outlook. Ability of the firm to improve its capital structure and efficiently manage its working capital requirements with increasing scale of operations remains the key rating sensitivity. Established in 1994 as a proprietorship firm, Parvati Agro Plast (PAP) is engaged in manufacturing of Rigid Polyvinyl Chloride (PVC) pipes & High Density Polyethylene (HDPE) pipes. PAP has two manufacturing units located at Sangli, Maharashtra, with an installed capacity of manufacturing 18500 metric tons of PVC and HDPE pipes per annum. PAP manufactures ISI marked pipes which find application in irrigation, water supply & chemical industry. The products are sold under the brand name of 'PARVATI', 'MOVILEX', 'SUNBLESS' & 'VASANT'. PAP is a registered supplier for water supply schemes in Maharashtra & Karnataka under Maharashtra Jeevan Pradhikaran and Jal Nirmal of Karnataka state. PAP mainly requires PVC resin as a raw material which it procures entirely from domestic market. PAP reported a PAT of INR 0.97 crore on the total operating income of INR 44.24 crore in FY14 (refers to the period April 1 to March 31) as compared to the PAT of INR 1.24 crore on the total sales of INR 43.96 crore in FY13. PREMIER COTSPIN: CRISIL Suspends B+ Rating on INR115MM Term Loan ---------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Premier Cotspin Ltd (PCL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 35 CRISIL B+/Stable Term Loan 115 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by PCL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, PCL is yet to provide adequate information to enable CRISIL to assess PCL'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 2006 in Samana (Punjab) and promoted by Mr. Virendra Kumar Garg, PCL commenced operations in April 2008. The company manufactures cotton yarn in the count range of 10s to 20s. PULSE POWER: CRISIL Suspends B Rating on INR32.5MM Cash Loan ------------------------------------------------------------ CRISIL has suspended its ratings on the bank facilities of Pulse Power Technologies Pvt Ltd (Pulse Power). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 32.5 CRISIL B/Stable Suspended Letter of credit & Bank Guarantee 30 CRISIL A4 Suspended Proposed Long Term Bank Loan Facility 12.7 CRISIL B/Stable Suspended Standby Line of Credit 4.8 CRISIL A4 Suspended The suspension of ratings is on account of non-cooperation by Pulse Power with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, Pulse Power is yet to provide adequate information to enable CRISIL to assess Pulse Power'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' Established in 1995 in Kolkata by Mr. T Banerjee, Pulse Power initially manufactured and assembled uninterrupted power supply (UPS) units, charge controllers, and control panels, and carried out in-house design and testing of solar inverters. In 1997-98, Pulse Power was acquired by Mr. Swarna Kumar Ray Chaudhuri, and it ventured into the solar power conditioning segment. In 2001, the company entered into a technical collaboration with Optimal Power Solutions Pty Ltd, Australia, to undertake manufacturing and assembly of solar power conditioning equipment, mainly solar power conditioning units. R. PIYARELALL: CRISIL Suspends D Rating on INR550MM LOC ------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of R. Piyarelall Import and Export Limited (RPIE). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 260 CRISIL D Suspended Letter of Credit 550 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by RPIE with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, RPIE is yet to provide adequate information to enable CRISIL to assess RPIE'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 1981, RPIE mainly imports pulses, which include split green peas, whole yellow peas, whole green peas, dun peas, chick peas, and black maple. It also occasionally imports other agri-commodities, such as sugar, wheat, mustard seed, depending on the market scenario. R. PIYARELALL IRON: CRISIL Suspends D Rating on INR250MM Loan ------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of R. Piyarelall Iron and Steel Private Limited (RPISPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 100 CRISIL D Suspended Packing Credit 250 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by RPISPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, RPISPL is yet to provide adequate information to enable CRISIL to assess RPISPL'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' RPISPL was formed in 2005 to export minerals and agricultural commodities. Currently, the company exports only minerals. It mainly exports iron ore fines, which are exported mostly from Paradip and Visakhapatnam ports. RADHA-RUKMAN: CARE Reaffirms B+ Rating on INR22.11cr Loan --------------------------------------------------------- CARE reaffirms the ratings assigned to bank facilities of Radha-Rukman Packages Pvt Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 22.11 CARE B+ Reaffirmed Short-term bank Facilities 0.50 CARE A4 Reaffirmed Rating Rationale The ratings of Radha-Rukman Packages Pvt Ltd (RPL) continue to be constrained by its short track record coupled with small size of operations, susceptibility of profitability to volatile raw material price and its presence in highly fragmented and competitive packaging industry. Furthermore, the ratings also factors in high working capital intensity of the operations and losses incurred by the company at the net level in FY14 (refers to the period April 1 to March 31), resulting in erosion of networth and leveraged capital structure. The ratings, however, draw comfort from the experience of the promoters in packaging & printing industry. Going forward the company's ability to grow its scale of operations coupled with improvement in profitability margins while managing the working capital effectively would be the key rating sensitivity. RPL was incorporated in August 2008 and was promoted by Mr Govardhan Lal Sikaria and his family members based out of Kolkata. The company, after remaining dormant for three years, commenced operation from January 2012. RPL is engaged in the manufacturing of corrugated & duplex boxes and providing offset printing services. The facilities of the company are located at Howrah, West Bengal, with an installed capacity to manufacture of 8,400 tonnes per annum (TPA) of corrugated & duplex boxes. RPL carries out manufacturing & printing as per the designs and specification provided by the customers and its products are used for packaging in different industries like pharmaceuticals, textiles, automobile, engineering, consumer goods industry, etc. During FY14, RPL had reported a total operating income of INR22.23 crore (vis-a-vis INR5.13 crore in FY13) and a loss of INR0.26 crore (vis-a-vis INR0.61 crore in FY13). RAJEEV KUMAR: CARE Assigns B Rating to INR0.8cr LT Bank Loan ------------------------------------------------------------ CARE assigns 'CARE B' and 'CARE A4' ratings to the bank facilities of Rajeev Kumar. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 0.8 CARE B Assigned Short-term Bank Facilities 5.0 CARE A4 Assigned Rating Rationale The ratings assigned to the bank facilities of M/s. Rajeev Kumar (RKR) are primarily constrained by its small size of the operation in the highly fragmented & competitive industry, its weak liquidity position, susceptibility to volatility in input prices and customer & geographical concentration risk. The ratings also factor in its proprietorship form of constitution with inherent risk of withdrawal of capital in time of contingency and risk of dissolution on account of poor succession planning. The aforesaid constraints are partially offset by the long- standing experience of the proprietor in the construction business, moderate order book position and comfortable capital structure. The ability of the entity to grow its scale of operations and profitability margins along with effective working capital management would be the key rating sensitivities. RKR was set up as a proprietorship entity in the year 2006 by Mr Rajeev Kumar of Patna, Bihar, for carrying out different types of construction activities. The entity is engaged in the business of construction and maintenance of roads for Rural Works Department (RWD), Bihar and Road Construction Department (RCD), Jharkhand and other government departments. The entity mainly caters clients and projects present in Bihar & Jharkhand. The entity has a status of 'Class 1' (highest in the scale of 1 to 3) class contractor from RWD, Bihar. The entity has an unexecuted order book of INR43.25 crore as on February 28, 2015, to be executed over the next 2 years. During FY14 (refers to the period April 1 to March 31), RKR reported a total operating income of INR7.83 crore and a profit of INR0.36 crore. In 11MFY15, the entity has maintained to achieve sales of around INR10.0 crore. ROCK REGENCY: CARE Reaffirms B- Rating on INR5.41cr LT Loan ----------------------------------------------------------- CARE reaffirms 'CARE B-' rating to the bank facilities of Rock Regency Hotels Private Limtied. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 5.41 CARE B- Reaffirmed Rating Rationale The rating assigned to the bank facilities of Rock Regency Hotels Private Limited (RHPL) continues to remain constrained by its small scale of operations, weak financial profile marked by increase in operating income, continuing net losses in FY14 (refers to the period April 1 to March 31), highly leveraged capital structure and weak debt coverage indicators along with slowdown in the industrial growth in the Bellary region, thereby impacting the business and geographical concentration of the company's business. The rating, however, derives strength from the experience of the promoters and comfortable operating cycle. The ability of the company to improve its overall financial profile and scale up its operations by achieving optimum occupancy and average room rent along with rationalization of debt levels remain the key rating sensitivities. Rock Regency Hotels Private Limited (RHPL) was incorporated in the year 2007 by Mr Pola Radha Krishna, Mr Y Satish, Mr Y Harish, and Mr K V R Prasad who are the directors of the company. RHPL operates a three-star hotel, Hotel Rock Regency, in Bellary. The hotel is setup in four floors with 117 rooms, two restaurants, four conference halls, a pub, a health centre, beauty parlour and a lease store for super market (MORE super market). The hotel commenced its operations in January 2010. The company has generated around 54% of its total revenues from room rentals, around 43% from restaurant food and liquor billing (including food billing for banquets), 1.5% from super market rent and 1.5% from Spa & Saloon and leasing of banquet halls. During FY14, the average occupancy rate of RHPL stood at 56% and average room rent stood at INR2570. During FY14, RHPL reported net loss of INR1.10 crore on a total operating income of INR5.76 crore as against a loss of INR0.92 crore on a total operating income of INR3.84 crore in FY13. RR FABS: CARE Reaffirms B+ Rating on INR3.80cr LT Bank Loan ----------------------------------------------------------- CARE reaffirms the ratings assigned to the bank facilities of RR Fabs Constructions. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 3.80 CARE B+ Reaffirmed Short-term Bank Facilities 4.50 CARE A4 Reaffirmed Rating Rationale The ratings assigned to the bank facilities of RR FAB Constructions (RFC) continue to remain constrained by its small scale with working capital intensive nature of operations, tender driven nature of operations with intense competition, volatility in input prices in the absence of price escalation clause in contracts and constitution of the entity as a partnership firm. The reaffirmation of ratings also factor in decline in total operating income and profit and elongated operating cycle with improvement in capital structure during FY14 (refers to the period April 1 to March 31). However, the ratings continue to derive strength from the experienced management, moderate order book position with established customer base and satisfactory capital structure and debt coverage indicators. The ability of the firm to increase its scale of operations by diversifying its client base amidst high competition and manage its working capital efficiently is the key rating sensitivities. RR FAB Constructions (RFC), formerly known as R&R Fabricators was initially established in the year 1985 by Mr. S. Ramachandra as a proprietorship concern, for executing civil construction works. Subsequently it was converted into partnership firm on May 05, 2010. Mr. S. Ramachandra and Mr. R. Somesh are serving as partners of RFC. RFC is engaged in execution of civil construction works like structural, road, ancillary, plumbing, drainage and other electrical works in the state of Karnataka under direct tender basis. The firm is currently executing civil construction works for private and Govt. entities. During FY14, RRFC reported a PAT of INR 0.32 crore on a total operating income of INR10.59 crore as against PAT of INR0.31 crore and a total operating income of INR 10.75 crore in FY13. SANWARIYA IMPEX: CARE Assigns B+ Rating to INR6.52cr LT Loan ------------------------------------------------------------ CARE assigns 'CARE B+' and CARE 'A4' rating to bank facilities of Sanwariya Impex Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 6.52 CARE B+ Assigned Short-term Bank Facilities 0.06 CARE A4 Assigned Rating Rationale The ratings assigned to the bank facilities of Sanwariya Impex Private Limited (SIPL) are primarily constrained on account of small scale of operations in the highly fragmented textile industry, declining profitability with loss reported during FY14 (refers to the period April 1 to March 31), leveraged capital structure and weak debt coverage indicators coupled with project execution and stabilization risk. The above constraints outweigh the benefits derived from the promoter's experience and location advantage by way of proximity to the textile hub. The ability of SIPL to increase the scale of operations along with improvement in profit margins, capital structure and better working capital management are the key rating sensitivities. SIPL was incorporated during October, 2010 by Mr Hari Prakash Bajaj and Ms Sangeeta Bajaj as a private limited company. Subsequently, Mr Harikrishna Agrawal, Mr Manojkumar Agarwal joined the business during FY13. SIPL is into the business of knitting of fabric. The manufacturing unit of the firm is located near Surat, Gujarat which has an installed capacity of 10,98,000 Meters Per Annum (MPA) as on March 31, 2014. During FY12, SIPL started manufacturing of knitted fabrics. Currently, SIPL is undertaking expansion project for manufacturing of yarn and additional machinery for knitting fabrics with total cost of INR3.03 crore which is to be funded through term loan of INR2.15 crore, INR0.35 crore of share capital and INR0.53 crore of unsecured loan. Installed capacity of SIPL will increase to 1,692,000 MPA after completion of project. Commercial production from new machinery will start from the end of Q1FY16. During FY14, SIPL reported TOI of INR10.66 crore and loss of INR0.08 crore as against PAT of INR0.04 crore on a TOI of INR8.13 crore during FY13. Up to March 30, 2015 (Provisional), SIPL has achieved TOI of INR12.87 crore. SHRESHT INDUSTRIES: CRISIL Rates INR110MM Bank Loan at B -------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the long term bank facilities of Shresht Industries Pvt Ltd (SIPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 15 CRISIL B/Stable Proposed Long Term Bank Loan Facility 110 CRISIL B/Stable The rating reflects SIPL's nascent and small scale of operations. The rating also reflects SIPL's below-average financial risk profile marked by low networth levels. These rating weaknesses are partially offset by moderate revenue visibility of the company and promoters' extensive industry experience. Outlook: Stable CRISIL believes that SIPL will benefit over the medium term supported by its moderate revenue visibility. The outlook may be revised to 'Positive' in case of significant and sustained increase in its scale of operations leading to higher cash accruals and substantial improvement in networth levels driven by higher-than-expected equity infusion. Conversely, the outlook may be revised to 'Negative 'in case of lower-than-expected revenues and profitability, or if it undertakes a large debt funded capital expenditure program, impacting its business risk profile. Incorporated in 2013, SIPL is engaged in manufacturing of water purifiers for domestic and industries purpose. Promoted by Mr.Pattela Gaurav and Mrs. Sailaja Pattela and based out of Hyderabad, the company manufactures water purifiers under the brand name 'Shresht RO'. SIPL reported a PAT (profit after tax) of INR0.3 million on an operating income of INR2.5 million for 2013-14. SHRI GURU: CARE Revises Rating on INR30cr LT Bank Loan to B+ ------------------------------------------------------------ CARE revises the rating assigned to the bank facilities of Shri Guru Gorakhnath Rice Mill. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 30 CARE B+ Revised from CARE B Rating Rationale The revision in the rating of Shri Guru Gorakhnath Rice Mill (SGRM) factors in improvement in profitability margins and debt service coverage indicators. The rating continues to derive strength from experience of the partners in the rice milling industry and proximity of its processing unit to the paddy-growing areas. The rating, however, continues to remain constrained by its modest scale of operations, low profitability margins and leveraged capital structure. The rating is further constrained by its elongated operating cycle, partnership nature of constitution, susceptibility to fluctuation in raw material prices and its presence in a highly competitive and fragmented agro-processing. Going forward, SGRM's ability to scale-up its operations while improving its capital structure along with effective working capital management would be the key rating sensitivities. SGRM was established in 1990 as a partnership firm. The firm has four partners Ms Dayawati Devi, Ms Pushpa Devi, Mr Brijesh Kumar and Mr Bankey Lal with profit sharing ratio of 3:3:2:2. Mr Bankey Lal looks after the overall operations of the firm. The firm is primarily engaged in the milling and processing of basmati rice at its sole processing facility situated at Dadri, Uttar Pradesh, which has a processing capacity of 8 metric tonnes per hour (MTPH) of paddy as on March 31, 2013. The firm sells its product under the brand name 'Pankhi' and 'Ten Star' in the domestic market. SGRM has reported a net profit of INR2.05 crore on a total operating income of INR103.22 crore during FY14 (refers to the period April 1 to March 31) as compared with a net profit and TOI of INR0.09 and INR119.68 crore in FY13. During FY15, the firm had achieved total sales of INR70.00 crore till December 31, 2014. SONARCH INT'L: CARE Revises Rating on INR22.5cr Loan From B+ ------------------------------------------------------------ CARE revises ratings assigned to bank facilities of Sonarch International Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 22.50 CARE BB Revised from CARE B+ Rating Rationale The ratings assigned to Sonarch International Pvt. Ltd. have been revised on account of Increased scale of operations and Subordination of unsecured loans leading to improved capital structure. The ratings assigned to the bank facilities of Sonarch International Private Limited (SIPL) continue to be constrained by low profitability margins, weak debt coverage indicators, working capital intensive nature of operations and presence in competitive and fragmented nature of industry. The ratings however, continue to derive strength from experienced promoter and demonstrated financial support from promoters. Ability of the company to continue to improve its scale of operations and also improve profitability margins amidst intense competition along with efficient management of working capital cycle with continued financial support from promoters are the key rating sensitivities. Established in 1996, Sonarch International Private Limited (SIPL) is engaged in trading and manufacturing (entirely outsourced) of vitrified and ceramics tiles under the brand name '"Picasso Ceramica". SIPL mainly deals in tile imported from China (98% of the total imports) and European countries. SIPL supplies tiles to dealers & distributors (forming 26% of overall sales in FY14; refers to period April 1 to March 31) and institutional clients (viz. Lodha Group, Hiranandani builders, Marthon Builders and others; forming 74% of overall sales) across India. SIPL has also started retail showrooms under the name "Urban Posch" in Kandivali (leased) and Andheri, were it sells multi- brand products (however, it forms around 12% of the total sales which is a miniscule portion of overall sales in FY14 SIPL also has warehouses across various cities of India viz. Mumbai, Navi Mumbai, Bangalore, Pune, Chennai and Ahmadabad. SRI RAM: CRISIL Suspends B- Rating on INR270MM Cash Credit ---------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Sri Ram Cables Pvt Ltd (SCPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 173 CRISIL A4 Suspended Cash Credit 270 CRISIL B-/Stable Suspended Letter of Credit 90 CRISIL A4 Suspended Term Loan 23 CRISIL B-/Stable Suspended The suspension of ratings is on account of non-cooperation by SCPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SCPL is yet to provide adequate information to enable CRISIL to assess SCPL'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' SCPL is promoted by the Garg family. Its operations are currently being managed by Mr. Anil Garg, Mr. Sunil Garg, and Mr. Satish Garg. The company manufactures a variety of cables, including high-tension cross-linked polyethylene and low-tension power cables, and control, railway signaling, telecommunication, and aerial-bunched cables. It has a 40,000-square-metre manufacturing facility at Rico Industrial Area in Bhiwadi (Rajasthan). STAR WIRE: CARE Lowers Rating on INR53.60cr LT Loan to D -------------------------------------------------------- CARE revises the ratings assigned to the bank facilities of Star Wire India Vidyut Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 53.60 CARE D Revised from CARE BB Rating Rationale The revision in the rating assigned to the bank facilities of Star Wire India Vidyut Private Limited (SWP) takes into account the delays in debt servicing due to the stretched liquidity attributed to delay in realization of payment. Star Wire (India) Vidyut Private Limited (SIVL) is running a 9.9 MW biomass-based power plant in village Khurawata of Mahendargarh district in Haryana. The purpose of the project is to utilize biomass fuel (mustard crop residue, julia flora, etc) which is an agriculture waste, to generate electricity. The power plant has been set up at a total cost of INR59.51 crore and commenced commercial production from May 2013. Key updates There are regular delays in the payment of interest and principal amount for term loan. The delays were primarily on account of weak liquidity attributable to delay in realization from debtors i e a government department which led to cash flow mismatches. The company achieved a total operating income (TOI) of INR33.56 crore with net losses of INR1.67 crore during FY14 (refers to the period April 01 to March 31). STERIMED SURGICALS: CRISIL Ups Rating on INR30MM Cash Loan to B --------------------------------------------------------------- CRISIL has upgraded its rating on the long-term bank facilities of Sterimed Surgicals India Private Limited (SSPL) to 'CRISIL B/Stable' from 'CRISIL B-/Stable', while reaffirming its rating on the company's short-term bank facilities at 'CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 30 CRISIL B/Stable (Upgraded from 'CRISIL B-/Stable') Letter of Credit 15 CRISIL A4 (Reaffirmed) Term Loan 15 CRISIL B/Stable (Upgraded from 'CRISIL B-/Stable') Working Capital 15 CRISIL B/Stable (Upgraded Term Loan from 'CRISIL B-/Stable') The rating upgrade reflects CRISIL's belief that SSPL's financial risk profile, particularly its financial flexibility and debt protection metrics, will improve over the medium term, driven by the company's healthy growth in turnover and improved profitability. The company's interest coverage ratio is estimated at around 3 times for 2014-15 (refers to financial year, April 1 to March 31) and gearing is estimated at 1.3 times as on March 31, 2015. Its turnover is estimated at around INR320 million and operating profitability is estimated in the range of 8.5 to 9.0 per cent for 2014-15; the turnover is expected to improve to around INR340 million in 2015-16 with sustained profitability. Furthermore, SSPL's working capital cycle has also improved, with gross current assets at 130 days as on March 31, 2014, down from 147 days a year earlier, and is estimated at a similar level in 2014-15. The company's working capital limits were utilised at an average of 90 per cent over the 12 months through December 2014. The ratings reflect SSPL's modest scale of operations, average operating profitability, and weak financial risk profile, marked by small net worth. These rating weaknesses are partially offset by the extensive experience of the company's promoters in the medical disposables and industrial and medical adhesive tapes industry. Outlook: Stable CRISIL believes that SSPL will continue to benefit over the medium term from its promoters' extensive experience and its strong technical expertise in the self-adhesive tapes and medical disposables industry. The outlook may be revised to 'Positive' in case of a significant improvement in SSPL's scale of operations and operating margin, or in its working capital management. Conversely, the outlook may be revised to 'Negative' in case of a significant decline in SSPL's revenues or operating margin, or large debt-funded capital expenditure, leading to deterioration in its financial risk profile. SSPL was incorporated in 2002-03, promoted by Mr. S B Singh Narang and his two sons, Mr. Sabjot Singh Narang and Mr. Sarabdeep Singh Narang. SSPL manufactures medical disposables and industrial and medical adhesive tapes. SUNIL GARG: CRISIL Suspends B+ Rating on INR35MM Cash Credit ------------------------------------------------------------ CRISIL has suspended its ratings on the bank facilities of Sunil Garg & Co (SGC). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 50 CRISIL A4 Cash Credit 35 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by SGC with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SGC is yet to provide adequate information to enable CRISIL to assess SGC'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' SGC was established in April 2004 as a partnership firm. It is based in Ghaziabad (Uttar Pradesh) and undertakes civil construction and other allied activities for several government and public works departments. It is registered as a 'Class A' contractor with Uttar Pradesh Public Works Department, Uttar Pradesh Irrigation Department, Ghaziabad Development Authority, and Hapur Pilakhua Development Authority (organizations located in western Uttar Pradesh and neighbouring regions). The firm is managed by three brothers: Mr. Sunil Garg, Mr. Anil Garg, and Mr. Praveen Garg. TRANSSTROY (INDIA): CARE Lowers Rating on INR938.32cr Loan to D --------------------------------------------------------------- CARE revises the ratings assigned to the bank facilities of Transstroy (India) Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 938.32 CARE D Revised from CARE BBB- Short-term Bank Facilities 552.63 CARE D Revised from CARE A3 Long-term/ Short-term Bank Facilities 1,730.20 CARE D Revised from CARE BBB- Rating Rationale The revision in the ratings of Transstroy India Limited (Transstroy) is on account of delay in servicing debt obligations owing to deterioration in the liquidity position of the company. Transstroy established in 2001, is a civil engineering and construction company mainly engaged in the construction and development of infrastructure projects. Transstroy initially undertook sub-contracting works from key players in the infrastructure sector. Having gained requisite experience over the years, the company forayed into infrastructure development segment on public private partnership (PPP) basis through joint ventures (JVs). Transstroy has bagged over 10 build operate and transfer (BOT) projects during FY11-FY14 (FY refers to the period April 01 to March 31) pertaining majorly to the road sector with its JV partner, Transstroy Corporation OJSC, Russia on 74:26 sharing criteria. Each BOT project is handled by a special purpose vehicle (SPV). During FY14 (refers to the period April 01 to March 31), the company has earned a net profit of INR266.2 crore on a total operating income of INR4,535.8 crore. VARAD EXTRUSIONS: CARE Revises Rating on INR5.68cr Loan From B+ --------------------------------------------------------------- CARE revised the ratings assigned to the bank facilities of Varad Extrusions Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 5.68 CARE BB Revised from CARE B+ Short-term Bank Facilities 1.50 CARE A4 Reaffirmed Rating Rationale The revision in the long-term rating takes into account the improvement in Varad Extrusions Private Limited's (VEPL) financial profile marked by stabilization of its operations, increase in operating income and improvement in profitability and capital structure during FY14 (refers to the period April 1 to March 31). The ratings, however, continue to remain constrained by its small scale of operations, leveraged capital structure, stretched liquidity position with working capital intensive nature of business and presence in competitive aluminum extrusion industry and susceptibility of margins to fluctuation in raw material and foreign exchange rates. The ratings, however, draws comfort from the experience of the promoters and moderate growth prospects for aluminum products. The ability of the company to scale up its operations and improve its overall financial risk profile remain the key rating sensitivities. Incorporated in the year 2008 as a private limited company, Varad Extrusions Private Limited (VEPL) is promoted by Mr Ravi Kiran Patha and commenced its business operation from May 06, 2011. VEPL is engaged in the business of manufacturing of aluminium profiles/sections of different shapes and sizes through extrusion process at its manufacturing facility located at Medak, Andhra Pradesh with an overall installed capacity of 2000 Metric Tonnes Per Annum (MTPA). VEPL is an ISO 9001:2008 certified company registered by International Registrar "QA TECHNIC" and accredited by "TGA" German Association for Accreditation GMBH. The products developed by the company are used in various industrial segments such as solar systems applications, air flow & air condition, ladder, infrastructure applications and other related areas. WHITE LOTUS: CRISIL Reaffirms B Rating on INR104.5MM Bank Loan -------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of White Lotus Cotyledon Pvt Ltd (WLCPL) continues to reflect WLCPL's modest scale of operations in the intensely competitive cotton ginning industry and its moderate working capital requirements. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 70.5 CRISIL B/Stable (Reaffirmed) Proposed Long Term 104.5 CRISIL B/Stable (Reaffirmed) Bank Loan Facility Term Loan 25 CRISIL B/Stable (Reaffirmed) The rating also factors in the company's below-average financial risk profile, particularly liquidity, marked by a leveraged capital structure and low cash accruals. These rating weaknesses are partially offset by the extensive industry experience of WLCPL's promoters in the cotton ginning industry and the expected ramp-up in its operations. Outlook: Stable CRISIL believes that WLCPL will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' in case of significant improvement in the company's financial risk profile, particularly liquidity, on account of increase in cash accruals or equity infusion by promoters, and improvement in its business risk profile, most likely driven by ramp-up in its operations. Conversely, the outlook may be revised to 'Negative' if WLCPL's financial risk profile deteriorates due to steep increase in debt- funded working capital requirements or lower profitability leading to low cash accruals or deterioration in capital structure. Update WLCPL's operating income is estimated at around INR380.0 million in 2014-15 (refers to financial year, April 1 to March 31), slightly lower than the INR409.5 million for the previous year, with increase in volume sales offsetting lower realizations of cotton prices. The company's operating margin is estimated at around 4.8 per cent in 2014-15, higher than previous year on account of increase in manufacturing business; the margin is expected at a similar level over the medium term. WLCPL's financial risk profile remains below average, marked by high gearing, small net worth, and weak debt protection metrics. The company's gearing and net worth are estimated at around 5.8 times and around INR240 million as on March 31, 2015, because of low accretion to reserves. WLCPL's debt protection metrics remain weak, with interest coverage and net cash accruals to total debt ratios estimated in the range of 1.4 to 1.5 times and 0.3 to 0.5 times, respectively, for 2014-15, because of its moderate profitability. The company's financial risk profile is likely to remain below average over the medium term. WLCPL's liquidity is stretched, marked by extensive utilisation of bank limit on account of moderate working capital requirements. The company's cash accruals are expected in the range of INR5 million to INR8 million over the two years through 2015-16, vis-a- vis debt obligations of INR3.5 million to INR5.0 million during the period. WLCPL's operations are moderately working capital intensive, marked by estimated gross current assets of 105 to 120 days as on March 31, 2015, on account of large inventory. WLCPL utilised its bank facilities at an average of 94 per cent over the 11 months through February 2015. WLCPL, established by the Shah family in Aurangabad (Maharashtra), gins and presses raw cotton. The company's unit at Vaijapur in Aurangabad (Maharashtra) has a manufacturing capacity of 1500 quintals per day. ================= I N D O N E S I A ================= BUMI SERPONG: Fitch Publishes 'BB-' IDR; Outlook Stable ------------------------------------------------------- Fitch Ratings has published Indonesia-based property developer PT Bumi Serpong Damai Tbk's (BSD) Long-Term Foreign Currency Issuer Default Rating (IDR) of 'BB-' with a Stable Outlook. The agency has also assigned an expected rating of 'BB-(EXP)' to the company's proposed five-year US dollar notes, issued by Global Prime Capital Pte Ltd (a wholly owned subsidiary of BSD), and guaranteed by BSD and its subsidiaries. The final rating on the notes is contingent upon the receipt of final documents conforming to the information already received. The proposed notes will rank pari passu with senior unsecured obligations of BSD and its key subsidiaries. Fitch expects BSD's secured debt/EBITDA to remain below 2x-2.5x (end-2014: 1.6x), a threshold beyond which the agency will consider notching the bond rating below BSD's Long-Term IDR. At the date of the indenture, subsidiaries that together account for 90% of BSD's consolidated EBITDA will guarantee the bond. The remaining material subsidiaries, including its listed subsidiary PT Duta Pertiwi Tbk (Duta), will be restricted subsidiaries, and will be subject to restrictive covenants that prevent any meaningful subordination of potential bond investors. Because of these reasons, Fitch has rated the proposed bond at the same level as BSD's Long-Term IDR. KEY RATING DRIVERS Strong Financial Profile: BSD has a track record of maintaining a conservative financial profile. Its cash reserves exceeded its debt in 2008-2013, while its leverage (measured as debt net of unrestricted cash to the sum of inventory, land bank, advances paid for land, less customer sales advances) has remained low at other times. Fitch expects BSD's leverage to remain below 25% over the medium term even though it plans to add to its land bank. BSD's end-2014 EBITDA margin of 50% is strong compared to regional and domestic peers. Although EBITDA margin is likely to decline due to a lower proportion of landed property in its sales mix, Fitch expects the company to maintain EBITDA margins of more than 40% over the medium term. Geographic Concentration: Fitch expects BSD to generate more than 50% of its cash flow from its BSD City township over the medium term. This limits the company's ability to discount its inventory to speed up sales and increase liquidity in a downturn, as it could impair the future profitability of a large part of its development book. However this risk is mitigated by the products within BSD City that target different price points and both the residential and commercial segments. The diversity may help the company to offer discounts on some products, if needed. Good Quality Investment Property Portfolio: Significant recurring cash flow is generated from BSD's investment property income stream, which provides strong interest coverage (2014: 2.0x; 2015 projection: 2.2x). This mitigates the higher risk of its property development business, which is more volatile across economic cycles. At end-2014 BSD controlled 18 investment properties, which comprised of two hotels, as well as its ITC-branded retail malls, large-scale mixed-use developments, and office buildings. Average occupancy in its malls and office buildings stood at 90% in 2014, while occupancy at its hotels was 63%. Fitch expects occupancy to remain healthy over the medium term. BSD has another 14 investment properties under development that will start adding to its recurring EBITDA over the medium term. Good Project Execution, Large Land Bank: BSD has a track record of maintaining high sales turnover, with presales/gross debt at 1.5x in 2014. This reflects its strong brand and good execution of its projects compared to domestic peers. BSD is the largest property developer in Indonesia in terms of presales. Its land bank available for development of around 45 million square meters is large compared to regional peers, and provides BSD with more than a decade of development potential. In 2014, BSD sold more than USD500m worth of properties, and Fitch expects presales to increase by a compounded annual growth rate of 15%-20% through 2017. Most of the company's land bank was acquired at low cost, which supports its ability to maintain healthy profit margins. Senior Unsecured Debt Not Notched: Fitch's senior unsecured rating of 'BB-' is based on average recovery in a distressed scenario, despite senior unsecured creditors ranking behind secured creditors. Fitch expects BSD's prior-ranking debt/EBITDA to remain below 2.0x-2.5x, a threshold above which Fitch may consider notching senior unsecured debt below the IDR. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: -- EBITDA margins will be sustained at over 40% -- Annual presales growth will hover in the mid-teens through 2017 -- Leverage will increase in 2015 due to the proposed bond issue, but improve thereafter -- Free cash flow will be neutral to negative over the medium term RATING SENSITIVITIES Negative: Future developments that may, individually or collectively, lead to a negative rating action include: -- Leverage sustained above 40% (2014: 10%) -- Presales / gross debt sustained below 1x (2014: 1.5x) -- Investment property EBITDA / cash interest costs sustained below 1.75x (end-2014: 2.0x) Positive: Fitch doesn't expect a rating upgrade over the medium term because of the concentration of BSD's cash flows in the Tangerang region in the Greater Jakarta area, primarily through its sales in BSD City, as well as the company's smaller development scale compared to regional peers. FULL LIST OF RATING ACTIONS PT Bumi Serpong Damai Tbk -- Long-Term Foreign Currency Issuer Default Rating published at 'BB-'; Outlook Stable -- Long-term senior unsecured debt class rating published at 'BB-' Global Prime Capital Pte Ltd -- Proposed five-year senior unsecured US dollar bonds assigned 'BB-(EXP)' BUMI SERPONG: Moody's Assigns Ba3 Corporate Family Rating --------------------------------------------------------- Moody's Investors Service assigned a corporate family rating of Ba3 to Bumi Serpong Damai TBK (P.T.) (BSD), a leading Indonesian property company. Moody's has also assigned a provisional senior unsecured bond rating of (P)Ba3 to the proposed senior unsecured notes to be issued by Global Prime Capital Pte. Ltd. -- a wholly owned subsidiary of BSD -- and guaranteed by BSD and some of its subsidiaries. The ratings outlook is stable. This is the first time Moody's has assigned ratings to BSD. Moody's will remove the provisional status on the senior unsecured rating after completing a satisfactory review of the final bond documentation. BSD plans to use the bond issuance proceeds to finance land acquisitions, current development projects, and other related fees and expenses. The Ba3 ratings reflect BSD's established position as one of the largest property developers in Indonesia with diversification across multiple projects and property segments. As of 31 December 2014, the company had a land bank of 4,667 ha -- of which 83% are located in the Greater Jakarta region -- supporting 20-25 years of development. The bulk of BSD's land bank is located in its flagship township, BSD City, whilst the rest is spread across three townships and one industrial estate. It also has a portfolio of investment properties comprising office buildings, retail space and hotels that is largely held under its 89%-owned subsidiary, PT Duta Pertiwi Tbk (unrated). Duta Pertiwi is also listed on the Indonesia Stock Exchange. Duta Pertiwi and its subsidiaries are excluded as guarantors of the senior unsecured notes to be issued by Global Prime Capital Pte. Ltd., but remain as restricted subsidiaries and are bound by a similar set of terms and conditions. "Although BSD derives approximately 80% of its revenue from non- recurring sources, its focus on the sale of land lots and low-rise properties entails lower development risks and provides it with the flexibility to scale operations in line with demand," says Jacintha Poh, a Moody's Assistant Vice-President and Analyst. As of 31 December 2014, BSD generated approximately 17% of its total revenue from recurring sources. Moody's expects its recurring EBITDA to be sufficient to cover at least 1.0x of its interest expenses, after taking into account its proposed bond issuance. "BSD's ratings are anchored by its healthy financial profile and solid liquidity position, supported by an expected continued strong operating performance over the next 12 months. The company is also expected to maintain strong profitability ratios, backed by its extensive low-cost land bank," adds Poh, who is also the Lead Analyst for BSD and other companies in the Indonesian property sector. In FY2015, BSD targets to achieve marketing sales of IDR7,500 billion. Moody's expects the company to exhibit adjusted revenue/debt of around 100% and adjusted EBITDA/interest expenses of around 6.5x. As of 31 December 2014, the company exhibited adjusted revenue/debt of 124% and adjusted EBITDA/interest expense of 7.7x. In terms of profitability, Moody's expects the company's EBITDA margin to decline marginally to 50%-52% in FY2015 -- due to the rising cost of construction -- from 54% in FY2014. Nonetheless, BSD's ratings are constrained by its small scale relative to global peers, complex corporate structure and concentration in the Greater Jakarta region. The company is also exposed to the volatile property sector and evolving regulatory environment of Indonesia. The stable rating outlook reflects our expectation that BSD will achieve its sales target and maintain financial discipline as it pursues growth. An upgrade is unlikely over the near to medium term, but could emerge if BSD is able to successfully execute its business plans and grow revenue to above IDR10 trillion, and keep its healthy financial and liquidity profile. Credit metrics that will support an upgrade include adjusted EBITDA/interest coverage above 5.0x, adjusted revenue/debt above 120%, and a consistent level of positive free cash flow on a sustained basis. On the other hand, BSD's rating could face downward pressure if: (1) the company fails to implement its business plans; (2) there is a deterioration in the property market, leading to protracted weakness in its operations and credit profile; and/or (3) evidence emerges of cash leaking from BSD to fund affiliated companies, for example, through inter-company loans, aggressive cash dividends, or investments in affiliates. Moody's considers adjusted EBITDA/interest coverage below 3.0x and adjusted revenue/debt below 80% on a sustained basis as indications that a downgrade may be necessary The principal methodology used in these ratings was Global Homebuilding Industry published in March 2009. Established in 1984, Bumi Serpong Damai TBK (P.T.) is the largest listed developer on the Indonesia Stock Exchange by market capitalization. The company and its subsidiaries are engaged in the development, management and operation of residential townships, condominium towers, office buildings, retail malls and hotel properties. BSD has a presence in nine cities across Indonesia, but remains focused on the Greater Jakarta region. It is sponsored by Sinarmas Land Limited (unrated) with a shareholding of approximately 61% in BSD as at 31 December 2014. LIPPO KARAWACI: Fitch Affirms 'BB-' IDR; Outlook Stable ------------------------------------------------------- Fitch Ratings issued an announcement correcting the version published on April 1, 2015, to clarify that the US dollar bonds are issued by Theta Capital. Fitch Ratings has affirmed PT Lippo Karawaci Tbk's (Lippo) Long- Term Foreign and Local Currency Issuer Default Ratings (IDR) at 'BB-' with Stable Outlook. The agency has also affirmed Lippo's senior unsecured rating and outstanding notes issued by Theta Capital at 'BB-' and its National Long-Term Rating at 'A+(idn)' with Stable Outlook. Lippo's rating reflects its strong market position and demonstrated track record in the property development and investment property businesses, the adequate coverage provided by the recurring EBITDA generated by its retail, healthcare, hospitality and fee-based income business of interest and lease rental expenditures, comfortable liquidity and low refinancing risk due to its well spread out debt maturity profile. The Stable Outlook reflects the stable outlook in Indonesia for the key real estate sub-markets Lippo operates in - residential, healthcare, retail and hospitality. 'A' National Ratings denote expectations of low default risk relative to other issuers or obligations in the same country. However, changes in circumstances or economic conditions may affect the capacity for timely repayment to a greater degree than is the case for financial commitments denoted by a higher rated category. KEY RATING DRIVERS Property Development Strategy Modified: Lippo has successfully changed its property development strategy to focus on condominiums, mid-market properties, and property development in suburbs and Tier 2 cities. In 2014, marketing sales revenue rose to IDR5.2trn from IDR4.1trn in 2013, with condominiums accounting for 52% (2013: 25%), followed by townships with 41% (2013: 58%) and offices with 7% (2013:16%). Robust Marketing Sales: The change in the property development strategy in response to market conditions and buyers' preferences drove the 26% increase in its property marketing sales. Lippo's sales to the two REITs it has sponsored, First REIT (FREIT) and Lippo Malls Indonesia Retail Trust (LMIRT), more than doubled to IDR3.3trn in 2014 (2013: IDR1.5trn), which has strengthened the company's liquidity and will allow it to finance its 2015 capital expenditure without tapping additional debt. Lippo's consolidated unrestricted cash balance increased to IDR3,529bn as of end-2014 from IDR1,855bn in end-2013. Stable Recurring Businesses: Lippo's portfolio of businesses that generate recurring revenues - retail malls, healthcare, hotels and hospitality, and fee-based business - recorded robust revenue growth of 28% to IDR4.7trn in 2014. EBITDA margin from these businesses was also maintained at 21.37% in 2014 (2013:20.47%). These businesses are more stable than the cyclical property development business and generate adequate cash flows for Lippo to meet its fixed finance costs, that is, interest and lease rental expenses. Asset Disposal Funded Capex: Lippo has proposed to sell its stable retail and healthcare assets to FREIT and LMIRT, and use the proceeds to fund its capex. This strategy, if implemented successfully, would result in the development property leverage, as measured by the ratio of net debt to net inventory, declining, and Lippo's gross debt remaining below the end-2014 level of IDR10trn till end-2017. Lippo's capex is scalable and the company has the flexibility to limit capex to the amount of cash raised from asset sales to FREIT and LMIRT. KEY ASSUMPTIONS Fitch's key assumptions within our rating case for the issuer include: -- Property marketing sales will increase by 16% to IDR6,000bn in 2015 and growth in Indonesian rupiah terms will be sustained till end-2017 -- EBITDA margin to remain steady at over 30% -- Asset sales to FREIT and LMIRT to be significantly lower in 2015 (2014: IDR3.3trn) -- Starting 2015, Lippo will fund its capex through asset sales and accumulated cash balance. Hence gross debt will not exceed the end-2014 level of IDR10trn till end-2017. RATINGS SENSITIVITIES Negative: Future developments that may, individually or collectively, lead to negative rating action include: -- Failure to sustain development property leverage (net debt/net inventory) at below 30% due to a prolonged weakness in property demand, while assuming the investment property fixed charge cover remains at 1.75x. -- Inability to pre-fund capex Positive rating action is not anticipated due to the geographical concentration of Lippo's businesses in Indonesia and the company's smaller scale in relation to international peers. The full list of rating actions is: Long-Term Foreign Currency IDR affirmed at 'BB-'; Outlook Stable Long-Term Local Currency IDR affirmed at 'BB-'; Outlook Stable Senior unsecured rating affirmed at 'BB-' USD250m senior unsecured notes due in 2019 issued by Theta Capital affirmed at 'BB-' USD403m senior unsecured notes due in 2020 issued by Theta Capital affirmed at 'BB-' USD150m senior unsecured notes due in 2022 issued by Theta Capital affirmed at 'BB-' National Long-Term Rating affirmed at 'A+(idn)'; Outlook Stable ==================== N E W Z E A L A N D ==================== KIWI FORESTRY: Two Units' Collapse Hurt Truck Firms --------------------------------------------------- Imran Ali at The Northern Advocate reports that the Companies Office will not investigate alleged irregularities in two logging companies that have gone bust owing NZ$26 million unless an official complaint is made after both businesses are liquidated. HarvestPro and Smith and Davies (NZ) -- both 100 per cent owned subsidiaries of Kiwi Forestry International -- owe a string of non-secured creditors NZ$1.7 million, including NZ$192,916 to seven Northland trucking firms. Three secured creditors are owed more than NZ$24 million, the report discloses. According to the report, HarvestPro's sub-contractors in the Far North were forced to lay off about 100 forestry workers three weeks ago while all 120 staff of Smith and Davies (NZ) in Whangarei were terminated on March 16. Whangarei truck owner Dave Sills is owed more than NZ$29,000 by Smith and Davies, but will only receive NZ$5,862 if he agrees to the company's proposal to pay 20 cents in the dollar, The Northern Advocate relates. The Northern Advocate notes that the collapse of the two companies led to questions over whether it had been trading while insolvent, but the Companies Office said it did not hold information on the financial position of the companies and was therefore unable to comment on their solvency or the directors' apparent efforts to restructure the companies' affairs. "In the event that a liquidator is appointed to the companies, they will be required under section 258A of the Companies Act 1993 to report any suspected offending to the Registrar of Companies," the report quotes the Companies Office as saying. "The registrar will review allegations of offending and take action in a manner consistent with the Companies Office enforcement policy guidelines." According to the report, the Companies Office said the board of directors of a company had all the powers necessary for managing, and for directing and supervising the management of the business and its affairs until the company was placed into liquidation, receivership or was subject to another insolvency procedure. Since HarvestPro and Smith and Davies (NZ) were not in liquidation, receivership or other insolvency procedure, it appeared the directors were able to facilitate the sale of company assets, the report notes. "It should be noted, however, that the law imposes a duty on directors to consider the interests of creditors once a company becomes insolvent, and if a director continues to trade or authorises the disposition of assets to the detriment of creditors they may become personally liable for company losses," the Companies Office, as cited by The Northern Advocate, said. Both companies owe secured creditors GE Finance, Mercedes Benz Financial and Itochu Corporation NZ$24.9 million, the report discloses. The Northern Advocate says the former two have repossessed assets of HarvestPro New Zealand and Smith and Davies (NZ) and have yet to determine the recovered amount. The directors of HarvestPro and Smith and Davies have proposed to pay non-secured creditors 20 cents for every one dollar of debt as a final settlement, the report adds. ================= S I N G A P O R E ================= JONES THE GROCER: Singapore Unit's Assets Up For Sale ----------------------------------------------------- Debbie Yong at The Business Times reports that things have gone further south for Jones the Grocer Singapore (JTG), three months after the gourmet grocer from Down Under assured that it was business as usual. BT relates that the Singapore arm of the Louis Vuitton-backed Australian gourmet cafe and retail chain has been placed under judicial management, and its assets are now up for public sale. When contacted, a manager from PriceWaterhouseCoopers, the appointed judicial manager for Singapore-registered Jones The Grocer International Pte Ltd, said that bids will close on May 22, with a view to a completion of the sale by late June, according to the report. There is no minimum sum for bids. In the meantime, JTG's outlets on Dempsey Hill and in the Mandarin Gallery will continue trading as usual, The Business Times relates. The report says the assets up for sale include the two Singapore outlets at 6,200 square feet and 2,200 sq ft respectively, its current payroll of staff, and its existing kitchen, bar and retail inventory. Buyers also have the option to purchase the Singapore franchise rights from its Australia-registered counterpart, Jones the Grocer IP Pty Ltd, the report notes. Parent company Jones the Grocer Pty Ltd in Australia, which is majority-owned by LVMH Moet Hennessy Louis Vuitton's private equity arm L Capital, was placed under voluntary administration in its home market in mid-December last year, days after its Australian chief executive John Manos resigned from his position, BT recalls. Related Australian entities including its distribution arm Senselle Foods Distribution, Jones Group Franchising, Jones Group Holdings, Jones the Grocer IP and 3GS Holdings were also placed in administration. In Singapore, L Capital Asia chairman and managing partner Ravi Thakran had in December assured that JTG's Singapore operations would be fine and that "the prognosis is good", even as the chain was in the midst of withdrawing from its outlets in Orchard Ion, the report states. When contacted, Mr Manos, who is still a 37 per cent shareholder in JTG and a director of its Singapore operations, told BT that the decision to put the business on sale "is being led by differences in vision at the board level between myself and the other shareholders." Saying that he had not been operationally involved and even "excluded from some aspects of the business" since last November, Mr Manos nevertheless believed that JTG's Singapore stores are still performing well and that "there is no fundamental issue with the brand, its offering and its following," the report adds. "These are all internal issues, and we are going through the process of resolving shareholder issues, not fundamental operational issues," the report quotes Mr. Manos as saying. He added that potential buyers should be "strategic buyers" rather than financial investors, the report relates. "They need to be someone who understands the food industry, the brand, and can invest appropriately while expecting a reasonable investment." BT relates that insiders familiar with the company's financials said, however, that poorly managed operating expenses and overly aggressive growth plans in Singapore's costly retail landscape may have been the cause of JTG's swift decline, and going under administration was a way to free itself from debts. "They opened multiple outlets in Orchard Ion within the span of one year, where their turnover was even less than their rent alone," noted a former staff member, the report relays. JTG opened subsidiary burger joint Charlie & Co in the basement of the upscale shopping mall last February, followed by two outlets of Becasse Bakery in Orchard Ion and Dempsey two months later. The Ion outlets closed last year, while Becasse's Dempsey space and existing staff of 10 was taken over by local restaurant group GToken and rebranded as casual eatery G House on April 1. BT understands that several suppliers to JTG have been left several thousands of dollars out of pocket, and the first creditors' meeting will be held tomorrow. According to retail manager Rashmi Pandey, however, their roster of around 140 part- time and full-time staff in both outlets are still being paid on time. ================ S R I L A N K A ================ SRILANKAN AIRLINES: Is 'Technically' Insolvent ---------------------------------------------- Azhar Razak at The Nation reports that Sri Lanka's state-owned flagship carrier, SriLankan Airlines (SLA) is presently technically insolvent (though not legally) as it is in a negative working capital position, the report by the Board of Inquiry (BoI) has outlined. According to the BoI report, the total liabilities of the airline as at January 31, 2015, amount to INR160 billion approximately, of which current liabilities stand at INR109.5 billion while Current Assets are a mere INR57 billion, The Nation relays. "It is important to realize that the company is technically (not legally) insolvent with a gross negative situation in net current assets and total debts far exceeding its equity resulting in a negative working capital position," the report released by the four member investigation panel headed by J.C. Weliamuna has stated, relates The Nation. According to The Nation, the BoI report notes that the Company's total liabilities at March 31, 2014, had however stood at US$124 billion of which the current liabilities amounted to INR71, 346 million while current assets stood at INR54, 905 million. "It is also important to realize that the serious loss of capital of the company. It is noted that the SLA could not meet the covenants of the bridging finance facility taken for Mashreq and this has compelled the company to substitute the loan using Treasury bonds," the BoI report said indicating the struggle the airline had underwent to meet its previous debt obligation. The Nation relates that the BoI report further alleged that the airline's management in 2011 had made a seriously wrong decision to pursue a re-fleeting exercise at a time when its Financial Position was critical with financial position score at a negative 1.85. "Re-Fleeting and Financing of new Aircraft acquisitions for Sri Lankan Airways was entered into during the period 2010 - 2013, when the Airline had substantial accumulated losses and there appeared to be no real hope of breaking -- even and moving to profitability in the very short term. A colossal capital commitment of approximately USD 2.3 billion or approximately LKR 290 billion on the Re-Fleeting and Financing of new Aircraft acquisitions for Sri Lankan Airways was entered into during the period 2010 - 2013, when the Airline had substantial accumulated losses and there appeared to be no real hope of breaking-even and moving to profitability in the very short term". "Currently INR105 billion of Accumulated losses & INR65 billion of Negative Net Assets only show a further slide downwards in the Airlines profitability and financial status from then. At these levels of operation, the big question now is how the Airline would meet all lease payment when they fall due in the future. It is important to realize that in addition to the white body aircrafts, SLA is committed to purchase narrow body plans and this led the SLA to a grave situation," the panel observed, The Nation relays. Consequently, the investigators have concluded that there is prima facie evidence to initiate a high level criminal investigation into the entire re-fleeting exercise although there is no material for the BoI to point to specific individuals, The Nation adds. =============== X X X X X X X X =============== * Large Companies with Insolvent Balance Sheets ----------------------------------------------- Total Total Shareholders Assets Equity Company Ticker (US$MM) (US$MM) ------- ------ ------ ------------ AUSTRALIA ACONEX LTD ACX 36.38 -152.68 ADCORP AUSTRALIA AAU 17.86 -0.81 ATLANTIC LTD ATI 64.03 -517.87 AUSTRALIAN ZI-PP AZCCA 16.99 -71.67 AUSTRALIAN ZIRC AZC 16.99 -71.67 AXXIS TECHNOLOGY AYG 19.18 -1.88 BIRON APPAREL LT BIC 19.71 -2.22 BLUESTONE GLOBAL BUE 46.32 -2.40 BRIDGE GLOBAL CA BGC 19.38 -121.51 BULLETPROOF GROU BPF 11.11 -2.99 CLARITY OSS LTD CYO 13.99 -15.57 CONTINENTAL COAL CCC 141.26 -6.69 IPH LTD IPH 22.71 -7.54 LOVISA HOLDINGS LOV 19.02 -3.43 MBD CORP LTD MBD 14.63 -0.20 MIRABELA NICKEL MBN 158.54 -375.82 NORSEMAN GOLD PL NGX 36.28 -43.40 OPUS GROUP LTD OPG 63.26 -8.99 RIVERCITY MOTORW RCY 386.88 -809.13 RUTILA RESOURCES RTA 34.45 -3.90 SAVCOR GRP LTD SAV 25.90 -10.32 SIGNATURE METALS SBL 33.09 -18.85 SPHERE MINERALS SPH 108.81 -64.95 STERLING PLANTAT SBI 59.64 -12.67 STONE RESOURCES SHK 21.76 -14.91 SUBZERO GROUP LT SZG 31.95 -3.19 CHINA ANHUI GUOTONG-A 600444 75.07 -7.31 BAIOO 2100 88.34 -3.21 CHINA ESSENCE GR CESS 48.99 -108.56 GCL SYSTEM INT-A 2506 577.79 -465.36 JIANGXI CHANG-A 600228 109.53 -11.09 LINEKONG INTERAC 8267 40.79 -112.57 LUOYANG GLASS-A 600876 203.45 -2.05 LUOYANG GLASS-H 1108 203.45 -2.05 NANNING CHEMIC-A 600301 257.94 -14.09 SHAANXI QINLIN-A 600217 339.47 -24.55 SHANG BROAD-A 600608 39.94 -0.31 SONGLIAO AUTO -A 600715 27.06 -6.12 TIANGE 1980 139.51 -13.82 WUHAN BOILER-B 200770 193.47 -235.12 XIAKE COLOR-A 2015 268.17 -18.47 CHINA HEALTHCARE 673 26.86 -17.33 CHINA MINING RES 340 97.56 -1.90 CHINA OCEAN SHIP 651 315.16 -76.51 CNC HOLDINGS 8356 50.95 -10.22 GR PROPERTIES LT 108 17.83 -52.36 GRANDE HLDG 186 194.96 -302.44 HARMONIC STR 33 33.31 -2.82 MASCOTTE HLDGS 136 17.72 -4.61 TITAN PETROCHEMI 1192 422.49 -1,073.54 INDONESIA APAC CITRA CENT MYTX 174.01 -17.22 ARPENI PRATAMA APOL 166.39 -336.11 ASIA PACIFIC POLY 323.36 -862.79 BAKRIE & BROTHER BNBR 937.98 -160.00 BAKRIE TELECOM BTEL 627.41 -271.18 BENTOEL INTL INV RMBA 854.30 -17.77 BERAU COAL ENERG BRAU 1,876.65 -29.46 BERLIAN LAJU TAN BLTA 766.11 -1,173.91 BERLIAN LAJU TAN BLTA 766.11 -1,173.91 BORNEO LUMBUNG BORN 1,050.10 -541.61 BUMI RESOURCES BUMI 6,595.57 -320.93 ICTSI JASA PRIMA KARW 53.53 -10.11 JAKARTA KYOEI ST JKSW 24.64 -34.00 MERCK SHARP DOHM SCPI 92.25 -0.08 ONIX CAPITAL TBK OCAP 13.75 -2.96 RENUKA COALINDO SQMI 15.99 -0.30 SUMALINDO LESTAR SULI 77.28 -34.38 TRUBA ALAM ENG TRUB 216.87 -34.67 UNITEX TBK UNTX 20.62 -17.28 INDIA ABHISHEK CORPORA ABSC 53.66 -25.51 AGRO DUTCH INDUS ADF 85.09 -22.81 ALPS INDUS LTD ALPI 201.29 -41.70 ARTSON ENGR ART 11.64 -10.64 ASHAPURA MINECHE ASMN 162.39 -16.64 ASHIMA LTD ASHM 63.23 -48.94 ATV PROJECTS ATV 48.47 -43.93 BELLARY STEELS BSAL 451.68 -108.50 BENZO PETRO INTL BPI 26.77 -1.05 BHAGHEERATHA ENG BGEL 22.65 -28.20 BHARATI SHIPYARD BHSL 1,428.69 -17.76 BINANI INDUS LTD BZL 1,163.38 -38.79 BLUE BIRD INDIA BIRD 122.02 -59.13 CELEBRITY FASHIO CFLI 24.96 -8.26 CHESLIND TEXTILE CTX 20.51 -0.03 CLASSIC DIAMONDS CLD 66.26 -6.84 COMPUTERSKILL CPS 14.90 -7.56 DCM FINANCIAL SE DCMFS 18.46 -9.46 DFL INFRASTRUCTU DLFI 42.74 -6.49 DIGJAM LTD DGJM 99.41 -22.59 DISH TV INDIA DITV 462.53 -52.19 DISH TV INDI-SLB DITV/S 462.53 -52.19 DUNCANS INDUS DAI 122.76 -227.05 ELECTROTHERM IND ELT 501.15 -96.22 ENSO SECUTRACK ENSO 15.57 -0.46 EURO CERAMICS EUCL 110.62 -6.83 EURO MULTIVISION EURO 36.94 -9.95 FERT & CHEM TRAV FCT 314.24 -76.26 GANESH BENZOPLST GBP 44.05 -15.48 GANGOTRI TEXTILE GNTX 54.67 -14.22 GOKAK TEXTILES L GTEX 48.71 -5.00 GOLDEN TOBACCO GTO 97.40 -18.24 GSL INDIA LTD GSL 29.86 -42.42 GSL NOVA PETROCH GSLN 16.53 -1.31 GUJARAT STATE FI GSF 15.26 -304.68 GUPTA SYNTHETICS GUSYN 44.18 -6.34 HARYANA STEEL HYSA 10.83 -5.91 HEALTHFORE TECHN HTEC 14.74 -46.64 HINDUSTAN ORGAN HOC 57.24 -51.76 HINDUSTAN PHOTO HPHT 49.58 -1,832.65 HIRAN ORGOCHEM HO 14.56 -4.59 HMT LTD HMT 106.62 -454.42 ICDS ICDS 13.30 -6.17 INDAGE RESTAURAN IRL 15.11 -2.35 INDOSOLAR LTD ISLR 193.78 -6.91 INTEGRAT FINANCE IFC 49.83 -51.32 JCT ELECTRONICS JCTE 80.08 -76.70 JENSON & NIC LTD JN 16.49 -71.70 JET AIRWAYS IND JETIN 2,856.84 -697.07 JET AIRWAYS -SLB JETIN/S 2,856.84 -697.07 JOG ENGINEERING VMJ 45.90 -5.28 KALYANPUR CEMENT KCEM 23.39 -42.66 KERALA AYURVEDA KERL 13.97 -1.69 KIDUJA INDIA KDJ 11.16 -3.43 KINGFISHER AIR KAIR 515.93 -2,371.26 KINGFISHER A-SLB KAIR/S 515.93 -2,371.26 KITPLY INDS LTD KIT 14.77 -58.78 KLG SYSTEL LTD KLGS 40.64 -27.37 KSL AND INDUSTRI KSLRI 269.42 -14.19 LML LTD LML 43.95 -78.18 MADHUCON PROJECT MDHPJ 1,226.74 -21.90 MADRAS FERTILIZE MDF 289.78 -34.43 MAHA RASHTRA APE MHAC 14.49 -12.96 MALWA COTTON MCSM 44.14 -24.79 MAWANA SUGAR MWNS 142.07 -32.88 MODERN DAIRIES MRD 38.61 -3.81 MOSER BAER INDIA MBI 727.13 -165.63 MOSER BAER -SLB MBI/S 727.13 -165.63 MPL PLASTICS LTD MPLP 17.67 -51.22 MTZ POLYFILMS LT TBE 31.94 -2.57 MURLI INDUSTRIES MRLI 262.39 -38.30 MYSORE PAPER MSPM 87.99 -8.12 NATL STAND INDI NTSD 22.09 -0.73 NAVCOM INDUS LTD NOP 10.19 -3.53 NICCO CORP LTD NICC 71.84 -4.91 NICCO UCO ALLIAN NICU 23.25 -83.90 NK INDUS LTD NKI 141.35 -7.71 NRC LTD NTRY 55.11 -52.44 NUCHEM LTD NUC 24.72 -1.60 PANCHMAHAL STEEL PMS 51.02 -0.33 PARAMOUNT COMM PRMC 124.96 -0.52 PARASRAMPUR SYN PPS 99.06 -307.14 PAREKH PLATINUM PKPL 61.08 -88.85 PIONEER DISTILLE PND 53.74 -5.62 PREMIER INDS LTD PRMI 11.61 -6.09 PRIYADARSHINI SP PYSM 20.80 -2.28 QUADRANT TELEVEN QDTV 105.10 -183.38 QUINTEGRA SOLUTI QSL 16.76 -17.45 RADHA MADHAV COR RMCL 10.33 -48.95 RAMSARUP INDUSTR RAMI 433.89 -89.28 RATHI ISPAT LTD RTIS 44.56 -3.93 RELIANCE MED-SLB RMW/S 279.61 -144.47 RENOWNED AUTO PR RAP 14.12 -1.25 RMG ALLOY STEEL RMG 66.61 -12.99 ROYAL CUSHION RCVP 14.70 -75.18 SAAG RR INFRA LT SAAG 12.54 -4.93 SADHANA NITRO SNC 16.74 -0.58 SANATHNAGAR ENTE SNEL 49.23 -6.78 SANCIA GLOBAL IN SGIL 53.12 -30.47 SBEC SUGAR LTD SBECS 92.44 -5.61 SERVALAK PAP LTD SLPL 61.57 -7.63 SHAH ALLOYS LTD SA 168.13 -81.60 SHALIMAR WIRES SWRI 21.39 -24.28 SHAMKEN COTSYN SHC 23.13 -6.17 SHAMKEN MULTIFAB SHM 60.55 -13.26 SHAMKEN SPINNERS SSP 42.18 -16.76 SHREE GANESH FOR SGFO 44.50 -2.89 SHREE KRISHNA SHKP 14.62 -0.92 SHREE RAMA MULTI SRMT 38.90 -4.49 SHREE RENUKA SUG SHRS 2,162.34 -82.52 SHREE RENUKA-SLB SHRS/S 2,162.34 -82.52 SIDDHARTHA TUBES SDT 44.95 -15.37 SIMBHAOLI SUGARS SBSM 268.76 -54.47 SPICEJET LTD SJET 489.96 -170.22 SQL STAR INTL SQL 10.58 -3.28 STATE TRADING CO STC 556.35 -392.74 STELCO STRIPS STLS 11.65 -5.73 STI INDIA LTD STIB 21.69 -2.13 STL GLOBAL LTD SHGL 30.73 -5.62 STORE ONE RETAIL SORI 15.48 -59.09 SURYA PHARMA SUPH 370.28 -9.97 SUZLON ENERG-SLB SUEL/S 5,061.62 -53.02 SUZLON ENERGY SUEL 5,061.62 -53.02 TAMILNADU JAI TNJB 17.07 -1.00 TATA METALIKS TML 122.76 -3.30 TATA TELESERVICE TTLS 1,311.30 -138.25 TATA TELE-SLB TTLS/S 1,311.30 -138.25 TIMEX GROUP IND TIMX 20.14 -0.42 TIMEX GROUP-PREF TIMXP 20.14 -0.42 TODAYS WRITING TWPL 18.58 -25.67 TRIUMPH INTL OXIF 58.46 -14.18 TRIVENI GLASS TRSG 19.71 -10.45 TUTICORIN ALKALI TACF 17.17 -22.86 UDAIPUR CEMENT W UCW 11.38 -10.53 UNIFLEX CABLES UFCZ 47.46 -7.49 UNIWORTH LTD WW 149.50 -151.14 UNIWORTH TEXTILE FBW 22.54 -35.03 USHA INDIA LTD USHA 12.06 -54.51 VANASTHALI TEXT VTI 14.59 -5.80 VENUS SUGAR LTD VS 11.06 -1.08 WANBURY LTD WANB 141.86 -3.91 WEBSOL ENERGY SY WESL 105.10 -23.79 JAPAN GOYO FOODS INDUS 2230 11.13 -1.81 LCA HOLDINGS COR 4798 21.73 -1.75 OPTROM INC 7824 15.63 -4.50 PIXELA CORP 6731 13.97 -0.02 KOREA HYUNDAI CEMENT 6390 454.92 -262.92 SAMWHAN CORP 360 624.46 -9.54 SAMWHAN CORP-PRE 365 624.46 -9.54 SHINIL ENG CO 14350 199.04 -2.53 STX CORPORATION 11810 1,275.13 -484.08 STX ENGINE CO LT 77970 1,170.67 -62.72 TEC & CO 8900 139.98 -16.61 TONGYANG INC 1520 1,068.15 -452.52 TONGYANG INC-2PF 1527 1,068.15 -452.52 TONGYANG INC-3RD 1529 1,068.15 -452.52 TONGYANG INC-PFD 1525 1,068.15 -452.52 MALAYSIA BIOSIS GROUP BHD BGH 10.39 -7.66 DING HE MINING 705 48.83 -57.14 HAISAN RESOURCES HRB 23.80 -20.90 HIGH-5 CONGLOMER HIGH 29.86 -65.83 LION CORP BHD LION 1,128.18 -160.72 ML GLOBAL BHD MLG 13.23 -4.07 OCTAGON CONSOL OCTG 14.55 -53.99 PERWAJA HOLDINGS PERH 515.46 -163.63 NEW ZEALAND PULSE ENERGY LTD PLE 15.04 -4.52 PHILIPPINES CYBER BAY CORP CYBR 13.68 -25.95 DFNN INC DFNN 14.84 -2.76 FILSYN CORP A FYN 23.11 -11.69 FILSYN CORP. B FYNB 23.11 -11.69 GOTESCO LAND-A GO 21.76 -19.21 GOTESCO LAND-B GOB 21.76 -19.21 METRO GLOBAL HOL MGH 40.90 -15.77 PICOP RESOURCES PCP 105.66 -23.33 STENIEL MFG STN 21.07 -11.96 UNIWIDE HOLDINGS UW 50.36 -57.19 SINGAPORE CHINA GREAT LAND CGL 12.24 -21.26 GPS ALLIANCE HOL GPS 15.91 -0.61 OCEANUS GROUP LT OCNUS 81.89 -13.92 QT VASCULAR LTD QTVC 17.99 -11.99 SCIGEN LTD-CUFS SIE 46.71 -55.42 SINGAPORE EDEVEL SGE 12.81 -3.18 SINOPIPE HLDS SPIP 146.50 -80.06 TERRATECH GROUP TEGP 13.55 -5.24 UNITED FIBER SYS UFS 46.83 -87.24 THAILAND ABICO HLDGS-F ABICO/F 15.28 -4.40 ABICO HOLDINGS ABICO 15.28 -4.40 ABICO HOLD-NVDR ABICO-R 15.28 -4.40 ASCON CONSTR-NVD ASCON-R 59.78 -3.37 ASCON CONSTRUCT ASCON 59.78 -3.37 ASCON CONSTRU-FO ASCON/F 59.78 -3.37 BANGKOK RUBBER BRC 77.91 -114.37 BANGKOK RUBBER-F BRC/F 77.91 -114.37 BANGKOK RUB-NVDR BRC-R 77.91 -114.37 BIG CAMERA COP-F BIG/F 19.86 -13.03 BIG CAMERA CORP BIG 19.86 -13.03 BIG CAMERA -NVDR BIG-R 19.86 -13.03 CIRCUIT ELEC PCL CIRKIT 16.79 -96.30 CIRCUIT ELEC-FRN CIRKIT/F 16.79 -96.30 CIRCUIT ELE-NVDR CIRKIT-R 16.79 -96.30 ITV PCL-NVDR ITV-R 36.02 -121.94 K-TECH CONSTRUCT KTECH/F 38.87 -46.47 KTECH CONSTRUCTI KTECH 38.87 -46.47 K-TECH CONTRU-R KTECH-R 38.87 -46.47 KUANG PEI SAN POMPUI 17.70 -12.74 KUANG PEI SAN-F POMPUI/F 17.70 -12.74 KUANG PEI-NVDR POMPUI-R 17.70 -12.74 PAE THAI PUB CO PAE 42.42 -0.28 PAE THAI-FRGN PAE/F 42.42 -0.28 PAE THAI-NVDR PAE-R 42.42 -0.28 PATKOL PCL PK 52.89 -30.64 PATKOL PCL-FORGN PK/F 52.89 -30.64 PATKOL PCL-NVDR PK-R 52.89 -30.64 PROFESSIONAL WAS PRO 10.68 -1.71 PROFESSIONAL-F PRO/F 10.68 -1.71 PROFESSIONAL-N PRO-R 10.68 -1.71 SHUN THAI RUBBER STHAI 13.16 -6.13 SHUN THAI RUBB-F STHAI/F 13.16 -6.13 SHUN THAI RUBB-N STHAI-R 13.16 -6.13 TONGKAH HARBOU-F THL/F 62.30 -1.84 TONGKAH HARBOUR THL 62.30 -1.84 TONGKAH HAR-NVDR THL-R 62.30 -1.84 TRANG SEAFOOD TRS 15.18 -6.61 TRANG SEAFOOD-F TRS/F 15.18 -6.61 TRANG SFD-NVDR TRS-R 15.18 -6.61 TT&T PCL TTNT 169.38 -510.60 TT&T PCL-NVDR TTNT-R 169.38 -510.60 TT&T PUBLIC CO-F TTNT/F 169.38 -510.60 WORLD CORP -NVDR WORLD-R 15.72 -10.10 WORLD CORP PCL WORLD 15.72 -10.10 WORLD CORP PLC-F WORLD/F 15.72 -10.10 ********* 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 ***