/raid1/www/Hosts/bankrupt/TCRAP_Public/150422.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, April 22, 2015, Vol. 18, No. 078
Headlines
A U S T R A L I A
EDBOB PTY: First Creditors Meeting Slated For April 28
FLEXI ABS 2015-1: Moody's Rates AUD8.4MM Cl. E Notes (P)Ba1
INTEGRATED CONSTRUCTION: Goes Into Liquidation
C H I N A
GLORIOUS PROPERTY: Moody's Cuts CFR to Caa3, Outlook Negative
KAISA GROUP: Sackings Dim Prospects For Sunac Takeover
H O N G K O N G
NORD ANGLIA: 1H 2015 Financial Results Support Moody's B1 CFR
I N D I A
A.M. INTERNATIONAL: CRISIL Suspends B Rating on INR100M Cash Loan
ABIR INFRASTRUCTURE: CRISIL Suspends D Rating on INR3.98BB Loan
ANNAPURNA PET: CARE Reaffirms B+ Rating on INR24.63cr LT Loan
BINDALS PAPERS: CARE Lowers Rating on INR402.28cr Loan to D
CLASSIQUE INTERNATIONAL: ICRA Rates INR20cr Cash Loan at B
EBONY AUTOMOBILES: CRISIL Ups Rating on INR140MM Cash Loan to B+
EMCO LIMITED: CARE Lowers Rating on INR369.40cr LT Loan to B
GALAXY COTTON: ICRA Reaffirms B Rating on INR14cr Cash Credit
GANESH MULTIPLEX: CRISIL Suspends D Rating on INR65MM LOC
GOKUL JEWELLERY: CRISIL Cuts Rating on INR160MM Bank Loan to D
JAVIN CONSTRUCTION: ICRA Assigns B Rating to INR30cr Term Loan
JESSOP AND CO: CRISIL Suspends D Rating on INR600MM Cash Credit
KALYANI ENGINEERING: CRISIL Suspends D Rating on INR300MM Loan
MAA VAISHNO: CRISIL Suspends D Rating on INR165MM Cash Loan
MANN RESIDENCY: CRISIL Suspends D Rating on INR280MM Term Loan
METROWORLD TILES: ICRA Reaffirms B+ Rating on INR9.55cr Loan
NADIA CONSTRUCTIONS: CRISIL Suspends D Rating on INR100M Loan
NADIA HEALTHCARE: CRISIL Suspends D Rating on INR50MM Term Loan
NEOTECH EDUCATION: ICRA Reaffirms D Rating on INR18.22cr Loan
OM COTTON: ICRA Reaffirms B+ Rating on INR5.0cr Cash Credit
PANNA LAL: CRISIL Suspends D Rating on INR90MM Cash Credit
PAR DRUGS: ICRA Upgrades Rating on INR27.68cr Term Loan to B
PARATUS REAL: ICRA Assigns B+ Rating to INR15cr Term Loan
PASHUPATI DIAMONDS: CRISIL Suspends B+ Rating on INR60MM Loan
PERFEX IMPEX: CRISIL Suspends D Rating on INR250MM LOC
R C JEWELLERS: CRISIL Suspends B+ Rating on INR280MM Cash Loan
R H AGRO: CRISIL Suspends D Rating on INR850MM Cash Loan
RABIN SINGHA: CARE Reaffirms D Rating on INR22.79cr LT Loan
RLJ FERRO: CRISIL Suspends D Rating on INR60MM Cash Credit
ROOP RAM: CRISIL Suspends D Rating on INR147MM Bank Loan
SALGUTI INDUSTRIES: ICRA Ups Rating on INR50.37cr Loan to B-
SAMEEP FABRICS: ICRA Reaffirms B Rating on INR18.50cr Cash Loan
SANTOSH KUMAR: CRISIL Suspends D Rating on INR67.5MM Bank Loan
SARVESH RICE: CRISIL Ups Rating on INR107MM Term Loan to B+
SHREE BHARKA: CRISIL Assigns B+ Rating to INR110MM Cash Credit
SHREE SHANKAR: CRISIL Suspends D Rating on INR270MM Term Loan
SONA DIAMOND: CARE Assigns B+ Rating to INR6cr LT Bank Loan
SOVA ISPAT: CRISIL Suspends D Rating on INR165.5MM Term Loan
SRI LAXMI REVANTH: ICRA Reaffirms B- Rating on INR3.25cr Loan
SUMMIT CORPORATION: CARE Rates INR12.99cr Long Term Loan at D
TUFFCELL BOARD: CRISIL Assigns B+ Rating to INR30MM Cash Credit
UNITECH COTSPIN: ICRA Reaffirms B Rating on INR24.32cr Term Loan
VAISHALI AGRO: CARE Assigns B+ Rating to INR19.25cr LT Bank Loan
VISHNU VIDYUTH: CRISIL Ups Rating on INR260MM Term Loan to C
N E W Z E A L A N D
SANFORD LIMITED: Shuts Christchurch Mussel Processing Facility
P H I L I P P I N E S
LEPANTO CONSOLIDATED: Aims to Cut Losses on Increased Output
S I N G A P O R E
PACNET LIMITED: Moody's Upgrades Sr. Secured Note Ratings to Ba3
S O U T H K O R E A
PANTECH CO: Seoul Court Aborts Sale
PANTECH CO: Strives to Release New Smartphone Amid Uncertainties
- - - - -
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A U S T R A L I A
=================
EDBOB PTY: First Creditors Meeting Slated For April 28
------------------------------------------------------
Daniel Lopresti and Mark Hall of Clifton Hall were appointed Joint
and Several Liquidators of Edbob Pty Ltd on April 17, 2015.
A meeting of creditors will be held at 10:30 a.m. on April 28,
2015, at Clifton Hall, Level 3, 431 King William Street, in
Adelaide.
FLEXI ABS 2015-1: Moody's Rates AUD8.4MM Cl. E Notes (P)Ba1
-----------------------------------------------------------
Moody's Investors Service assigned provisional ratings to notes to
be issued by Perpetual Corporate Trust Limited in its capacity as
the trustee of the Flexi ABS Trust 2015-1.
Issuer: Flexi ABS Trust 2015-1
-- AUD 157.5 million Class A Notes, Assigned (P)Aaa (sf)
-- AUD 12.6 million Class B Notes, Assigned (P)Aa2 (sf)
-- AUD 12.6 million Class C Notes, Assigned (P)A2 (sf)
-- AUD 6.3 million Class D Notes, Assigned (P)Baa2 (sf)
-- AUD 8.4 million Class E Notes, Assigned (P)Ba1 (sf)
The AUD12.6 million Class F Notes are not rated by Moody's.
The ratings address the expected loss posed to investors by the
legal final maturity. The structure allows for the timely payment
of interest and the ultimate payment of the principal by the legal
final maturity.
Flexi ABS Trust 2015-1 is a securitisation of operating and
financial equipment lease receivables extended predominantly to
small-to-medium-sized corporate obligors located in Australia.
Notable features of the transaction include the following:
- strong back-up servicing arrangements
- substantial amount of excess spread
- presence of equipment maintenance components in around 19.8%
of the contracts
- the short-weighted average lives of the notes.
The receivables have either been originated by Flexirent Capital
Pty Ltd (Flexirent, a subsidiary of FlexiGroup Ltd) through vendor
partnerships, retail at the point of sale, or have been purchased
by Flexirent from other financiers. During the life of the
receivables, the obligors will make at least monthly payments to
Flexirent or to the vendor itself, which then, typically on a
monthly basis, transfers the aggregate funds to Flexirent. The
receivables are unsecured.
Flexirent and FlexiGroup Ltd are unrated. Consequently, the
transaction structure includes back-up servicing arrangements with
Dun & Bradstreet (Australia) Pty Limited. Dun & Bradstreet carries
out servicing in parallel with Flexirent, providing near 'hot'
levels of support and mitigating the risks of a prolonged
servicing disruption.
Moody's expected default rate for the portfolio is 4.3%. The
assumption is based primarily on the historical performance data,
and incorporates additional stresses to reflect a more stressful
economic environment than that evident during the 2004-2014 period
covered by the historical data. The expected default rate also
incorporates potential losses due to the originator providing
equipment protection.
The coefficient of variation of the expected default rate was
assumed at 55%, significantly higher than historical observations
due to the lack of any stressed economic environment in the
historical data, and the presence of maintenance components in
some contracts, which could expose the transaction to tail losses.
The 25% subordination is commensurate with the Aaa (sf) rating of
the senior notes. It is materially higher that of a typical auto
lease ABS transaction. This is attributed to the unsecured nature
of the receivables leading to zero recovery values and to the
comparatively higher historical default rates.
In order to fund the purchase price of the portfolio, the Trust
has issued six classes of notes. The notes will be repaid on a
sequential basis until the later of: (1) the seventh payment date
following the Issue Date, (2) increase in the subordination to
Class A notes to 30% from 25%, and as long as (3) the 10% clean-up
call date has not been reached, (4) there are no carryover charge-
offs on any note, and (5) the 60 days past due arrears ratio does
not exceed 4%.
If all those conditions are met, then classes A to E will be
amortized on a pro-rata basis. Subsequently if the subordination
to the Class E Notes becomes greater than 12%, the Class F Notes
will be repaid pro rata with the other tranches as well, as long
as conditions (3) to (5) are still met.
The principal methodology used in this rating was "Moody's
Approach to Rating ABS Backed by Equipment Leases and Loans"
published in January 2015.
Levels of credit protection that are greater than necessary to
protect investors against current expectations of loss could lead
to an upgrade of the rating. Moody's current expectations of loss
could be better than its original expectations because of fewer
defaults by underlying obligors. The Australian macroeconomic
environment is a key driver of performance.
Levels of credit protection that are insufficient to protect
investors against current expectations of loss could lead to a
downgrade of the ratings. Moody's current expectations of loss
could be worse than its original expectations because of more
defaults by underlying obligors. The Australian macroeconomic
environment is a key driver of performance. Other reasons for
worse performance than Moody's expects include poor servicing,
error on the part of transaction parties, a deterioration in
credit quality of transaction counterparties, lack of
transactional governance and fraud.
If the default rate rises to 5.5% from 4.3%, then the model-
indicated rating for the Class A Notes drops one notch to Aa1. The
model-indicated rating for the Class B Notes, Class C Notes and
Class D Notes drop three, two and one notch to A2, Baa1 and Baa3
respectively under this scenario.
INTEGRATED CONSTRUCTION: Goes Into Liquidation
----------------------------------------------
Cara Waters at SmartCompany reports that Integrated Construction
Management Group has collapsed into liquidation. David Young of
Young Business was appointed as a liquidator of the refurbishment
business on April 17, the report says.
SmartCompany understands staff were told early last week that ICMG
was insolvent and had collapsed.
Sources told SmartCompany the impact would be felt throughout the
construction industry, particularly by sub-contractors.
ICMG's work included the refurbishment of 90 Collins Street,
Melbourne, for GE Capital, as well as the Four Seasons Hotel in
Sydney and Norwest Private Hospital in Sydney. Its clients
included Investa, Charter Hall, Aviva, Centuria, LEDA and AMP
Capital Investors.
At one stage ICMG had turnover of AUD50 million and employed 60
staff with plans for even more expansion, the report discloses.
The business is owned by directors Paul Attard and John O'Gorman.
SmartCompany contacted Mr. Attard on April 16 to seek confirmation
on the status of the business and he said no appointment had been
made at that time.
"The staff were not told the company is insolvent," the report
quotes Mr. Attard as saying. "At the appropriate time the
circumstances will become evident".
Mr. Attard has not responded to further requests for comment, the
report notes.
Mr. Young told SmartCompany on April 20 the ICMG group comprised
of five companies which are no longer trading.
"I have staff at the premises from yesterday morning,"
SmartCompany quotes Mr. Young as saying. "There was a problem with
a major project at the Langham Hotel and an adjudication in
relation to that led to a loss of AUD2.5 million which caused a
big cash flow problem."
SmartCompany adds that Mr. Young said staff were terminated prior
to the appointment of liquidators and he is yet to determine how
much is owed to creditors.
"Most of the major creditors are sub-contractors," Mr. Young told
SmartCompany.
An initial meeting of creditors will be held before May 5, the
report adds.
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C H I N A
=========
GLORIOUS PROPERTY: Moody's Cuts CFR to Caa3, Outlook Negative
-------------------------------------------------------------
Moody's Investors Service downgraded Glorious Property Holdings
Limited's corporate family rating to Caa3 from Caa1.
At the same time, Moody's downgraded Glorious' senior unsecured
rating to Ca from Caa2.
The rating outlook is negative.
The downgrade follows 1) the delay in Glorious' announcement of
its 2014 results -- which have now been released -- and the fact
that its external auditors have issued a Disclaimer of Opinion
based on uncertainty related to the company as a going-concern; 2)
its much weaker-than-expected liquidity and sales performance, and
3) a heightened level of refinancing risk.
"Glorious' downgrade reflects Moody's concern over the company's
high risk of default. Moreover, its ability to refinance the bond
maturing on 25 October 2015 has been weakened substantially by the
set of very poor results for 2014," says Gerwin Ho, a Moody's Vice
President and Senior Analyst.
Glorious reported a year-on-year fall of 45% in contracted sales
to RMB4.0 billion for 2014.
The company's cash balance fell to RMB1.4 billion at end-2014 from
RMB3.0 billion at end-2013, which is insufficient to repay the
USD300 million in offshore bonds.
"Given that most of Glorious' debt is secured, we believe the
recovery prospects for offshore bondholders are low and are
reflected in its Ca senior unsecured rating," adds Ho.
Furthermore, at end-2014, Glorious was overdue in its repayment of
RMB149.6 million in principal and RMB46.4 million in interest.
This failure to repay on time was seen by its auditors as a cross-
default event, leading to the reclassification of RMB8.6 billion
in debt as current liabilities.
Its cash to short-term debt ratio has deteriorated notably, from
55.5% at end-2013 to 8.7% at end-2014. Even after excluding RMB6.7
billion of the reclassified debt of RMB8.6 billion with
contractual repayment dates beyond 12 months, cash to short-term
debt remains very low at 15.2%.
The company further reported a significant 48% year-on-year
decline in revenue to RMB4.3 billion in 2014, driven by a 61%
year-on-year fall in delivered GFA of 365,309 sqm.
Furthermore, it registered a negative gross profit of RMB956
million, mainly due to a RMB1.1 billion provision for impairment
on its property projects.
After excluding the provision, gross margins remained very low at
4.3% for 2014, due to lower revenue recognition and higher unit
costs.
The negative outlook reflects Moody's concerns that Glorious will
face difficulty in refinancing its upcoming bond while its
liquidity will further weaken.
The ratings could be further downgraded if Glorious' liquidity
deteriorates further, or the company shows an inability to meet
its payment obligations.
An upgrade is unlikely in the near term, given Glorious' liquidity
challenges.
The principal methodology used in these ratings was Global
Homebuilding Industry published in March 2009.
Glorious Property Holdings Limited is a medium-sized residential
property developer based in Shanghai. The company has expanded to
eastern and northern China. At end-2014, it had a land bank with a
gross floor area ("GFA") of around 14.8 million square meters in
Shanghai, Beijing, Tianjin, and in several second-tier and third-
tier cities in the Yangtze River Delta and northeast China.
Glorious listed on the Stock Exchange of Hong Kong in 2009. Its
major shareholder, Mr. Zhang Zhi Rong, owns 68.39% and also has a
shipbuilding company listed in Hong Kong.
KAISA GROUP: Sackings Dim Prospects For Sunac Takeover
------------------------------------------------------
South China Morning Post reports that Kaisa Group Holdings has
fired three staff members it had appointed from its suitor and
larger rival Sunac China Holdings, a move analysts said cast
further doubt over the proposed US$385 million takeover.
SCMP relates that in an internal notice which appeared in the
media, Kaisa said an executive vice-president and two employees at
its human resources and administrative department -- who were
appointed from Sunac after it made the takeover proposal -- had
been "discharged of their duties".
A Kaisa official confirmed the contents of the circular, but Kaisa
and Sunac declined to comment on it, SCMP says.
Sunac offered in February to buy two units of Kaisa and acquire
majority stakes in another two, giving the heavily indebted
developer a financial lifeline after the authorities in its home
base, Shenzhen, blocked sales of several residential projects in
December last year, the report recalls.
Kaisa said earlier this month that the authorities had removed
most of the sales block, the report notes. On April 13, it also
reinstated founding chairman Kwok Ying-shing, who had stepped down
during the sales freeze, sending its bonds higher, the report
says.
Executives at Kaisa, which has struggled to repay its US$10
billion debt after the sales block, declined to comment on the
takeover proposal, the report notes.
On April 14, Sunac chairman Sun Hongbin said on his microblog
account the deal was "proceeding as planned," the report relays.
According to the report, analysts said the lay-offs, combined with
Kwok's return to the company and the sales resumption, had dimmed
the deal's prospects, especially as Kaisa's bondholders were
opposed to some terms of the takeover.
"It looks likely that Sunac and Kaisa may not close the deal now,"
the report quotes Nomura credit analyst Annisa Lee as saying. "The
return of the chairman is positive to Kaisa but will he manage the
company for long or will he find another buyer?
These are uncertainties."
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.
================
H O N G K O N G
================
NORD ANGLIA: 1H 2015 Financial Results Support Moody's B1 CFR
-------------------------------------------------------------
Moody's Investors Service said that Nord Anglia Education, Inc has
reported 1H FY2015 results that support its B1 corporate family
rating (CFR) and the B1 rating on its senior secured term loan B
and revolving credit facility issued by Nord Anglia Education
Finance LLC.
The rating outlook is stable.
NAE reported 1H 2015 revenue growth of 17% year-on-year, boosted
by schools acquired in Singapore and Cambodia in 2014 and the
consolidation of four British International Schools (BIS) in
Vietnam since January 2015. On a constant currency basis, revenue
was up about 21%.
NAE's profitability remained strong, with its adjusted EBITDA
margin of 34.6% for the 12 months ended February 2015.
The modest decline from the 35.4% recorded for FY2014 was due to
larger exposure to the lower-margin Southeast Asian business and
start-up schools in Dubai and Aubonne that still are ramping up.
"Looking ahead, earnings growth will continue in 2015, underpinned
by the full-year recognition of schools acquired since 2014,
organic growth of the student population, and continued increases
in tuition fees at rates above the growth rates for staff costs
and lease expenses," says Joe Morrison, a Moody's Vice President
and Senior Analyst.
NAE's adjusted debt/EBITDA, which excludes debt associated with
the recent acquisition in Vietnam, improved to 6.3x for the 12
months ended February 2015 from 6.7x for the fiscal year ended
August 2014.
"We expect that given earnings contributions from recently
acquired schools, NAE's full-year fiscal 2015 debt/EBITDA will
continue to improve towards 6.0x, if the company refrains from
debt-funded greenfield projects or large scale acquisitions," adds
Morrison.
NAE's ratings are supported by stable and predictable cash flow
from the demand for its premium educational services.
NAE's liquidity remains solid, with its $97 million in cash
holdings at end-February 2015 sufficient to cover $53 million in
debt maturing within the next 12 months.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in December 2014.
Nord Anglia Education, Inc. is headquartered in Hong Kong and
operates 35 international premium schools in Asia, Europe, the
Middle East, and North America, with more than 23,700 students
ranging in level from pre-school through to secondary school. NAE
also provides outsourced education and training contracts with
governments and curriculum products through its Learning Services
division. For the 12 months ended 28 February 2015, NAE generated
revenues of about $521 million.
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I N D I A
=========
A.M. INTERNATIONAL: CRISIL Suspends B Rating on INR100M Cash Loan
-----------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
A.M. International (AMI).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 100 CRISIL B/Stable
Proposed Cash
Credit Limit 100 CRISIL B/Stable
The suspension of ratings is on account of non-cooperation by AMI
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, AMI is yet to
provide adequate information to enable CRISIL to assess AMI'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'
AMI is a proprietorship firm started by Mr. Pankaj Sharma in the
year 2011 and is engaged in the trading of rice. The firm is based
out of Narela, Delhi and procures primarily from the Narela Mandi.
ABIR INFRASTRUCTURE: CRISIL Suspends D Rating on INR3.98BB Loan
---------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Abir
Infrastructure Pvt Ltd (AIPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 3,982.5 CRISIL D
Cash Credit 1,000 CRISIL D
Letter of Credit 917.5 CRISIL D
Proposed Long Term
Bank Loan Facility 10 CRISIL D
The suspension of ratings is on account of non-cooperation by AIPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, AIPL is yet to
provide adequate information to enable CRISIL to assess AIPL'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'
AIPL was set up in 2005 by Mr. Y Y Butchi Babu and Mr. K
Gnyandeep, and began operations in 2007. The company undertakes
construction activity in the infrastructure sector with focus on
the power sector. It provides engineering, procurement, and
construction services on turnkey basis, primarily in the
hydroelectric power and thermal power segments.
ANNAPURNA PET: CARE Reaffirms B+ Rating on INR24.63cr LT Loan
-------------------------------------------------------------
CARE reaffirms ratings assigned to bank facilities of Annapurna
Pet Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 24.63 CARE B+ Reaffirmed
Short-term Bank Facilities 11.00 CARE A4 Reaffirmed
Rating Rationale
The rating assigned to the bank facilities of Annapurna Pet
Private Limited(APPL) continues to be constrained by meager cash
accruals, moderately leveraged capital structure, weak debt
coverage indicators, working capital intensive nature of
operations and presence in highly competitive and fragmented
industry.
The ratings however, continue to derive strength from experienced
promoter and association with reputed customer base.
Ability of the company to improve scale of operations and accruals
amidst intense competition along with efficient management of
working capital cycle are the key rating sensitivities.
Incorporated in 2011, by Mr. Vijay Bajoria, Mr. Vimal Bajoria, Mr.
Krishna Tulsian, Mr. Suresh Murarka and Mr. Sunil Goyal, Annapurna
Pet Private Limited (APP) is engaged in manufacturing of
polyethylene terephthalate (PET) pre-forms, used in the
manufacturing of plastic bottles/containers.
The company commenced commercial operations from March 01, 2013
and therefore FY14 (refers to the period from April 1 to March 31)
was the first full year of operations. The entity has set up its
manufacturing facility at Valsad (Gujarat) with an installed
capacity to produce 800 MT of pre-form capacity.
During FY14, APP reported total operating income of INR17.05 crore
and net loss of INR1.46 crore vis-…-vis a total operating income
of INR 0.68 crore and a net loss of INR 0.47 crore reported during
1MFY13. Further till February 24, 2015 (CA certified), the company
has achieved total income of INR40.43 crore. As on March 25, 2015,
the company has an order book of INR19.5 crore.
BINDALS PAPERS: CARE Lowers Rating on INR402.28cr Loan to D
-----------------------------------------------------------
CARE revises the ratings assigned to the bank facilities of
Bindals Papers Mills Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 402.28 CARE D Revised from
CARE C
Short-term Bank Facilities 121.20 CARE D Revised from
CARE C
Rating Rationale
The revision in the ratings takes into account the ongoing delays
in servicing of the company's debt obligations.
Incorporated in 2006, Bindals Papers Mills Limited (BPML) is a
closely held company engaged in manufacturing of writing &
printing paper (WPP). BPML has been promoted by the Bindal's-
Goel's family having long standing experience of installation,
erection and commissioning of paper plants and captive power
plants.
BPML has waste paper and agro based WPP manufacturing facilities
located in Muzaffarnagar, Uttar Pradesh with total installed
capacity of 90,000 MTPA as on March 31, 2014.
BPML reported total operating income of INR593.04 crore and PAT of
INR3.23 crore in FY14 (refers to the period April 1 to
March 31) against total operating income of INR558.28 crore and
PAT of INR3.73 crore in FY13.
CLASSIQUE INTERNATIONAL: ICRA Rates INR20cr Cash Loan at B
----------------------------------------------------------
ICRA has assigned its long-term rating of [ICRA]B) to the INR20.00
crore bank facilities of Classique International.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 20.00 [ICRA]B; Assigned
ICRA's rating factors in the modest scale of operations of the
firm, in jewellery manufacturing and iron and steel business,
which coupled with high intensity of competition in these
industries, has resulted in weak profitability (Net profit margins
of 0.23% for FY2014) and modest return indicators (ROCE of 2% for
FY2014). The rating also factors in high customer concentration
risk for the firm as its top two customers have contributed to
more than 90% of the total revenues, in the past three years. The
rating also takes into account risk associated with proprietorship
constitution of the firm such as risk of capital withdrawal, risk
of dissolution etc. The rating also factors in the relatively high
working capital intensity of the firm owing to high receivable
collection period. However, the rating derives comfort from the
extensive experience of the promoters in the jewellery industry,
healthy growth in the firm's revenues and low inventory price risk
given that majority of the transactions are order backed and the
physical trading transactions are hedged with corresponding future
contracts. The rating also derives comfort from the fact that that
the firm does not have any major long term scheduled debt
repayments.
Classique International was initially established as a partnership
firm and was converted into a proprietorship firm in 2009. The
firm is engaged in manufacturing, design and wholesale of gold and
diamond jewellery and trading of iron and steel products. The firm
gets the jewellery manufactured on job work basis. In FY2015, the
firm has forayed into trading of coal. The firm procures coal from
subsidiaries of Coal India Limited and other players and sells it
mainly to companies engaged in thermal power generation.
Recent Results
The firm reported a profit after tax (PAT) of INR0.11 crore on an
operating income of INR46.37 crore in FY2014 as against a PAT of
INR0.06 crore on an operating income of INR17.73 crore in the
previous year.
EBONY AUTOMOBILES: CRISIL Ups Rating on INR140MM Cash Loan to B+
----------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Ebony Automobiles Pvt Ltd (EAPL) to 'CRISIL B+/Stable' from
'CRISIL B/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 140 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Long Term Loan 40 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Proposed Long Term 25 CRISIL B+/Stable (Upgraded
Bank Loan Facility from 'CRISIL B/Stable')
The rating upgrade reflects improvement in EAPL's financial risk
profile, particularly liquidity, on the back of fund infusion by
its promoters and its controlled working capital management.
Equity infusion of INR24 million by the promoters in 2013-14
(refers to financial year, April 1 to March 31) also led to
improvement in the company's total outside liabilities to tangible
net worth (TOLTNW) ratio to 4.6 times as on March 31, 2014, from
6.2 times a year earlier. Fund infusion and steady working capital
cycle resulted in slight decline in bank limit utilisation.
Furthermore, steady revenue growth and sustained profitability
will result in improved cash accruals, expected at INR18 million
in 2015-16 which will be sufficient to cover debt obligations of
INR14 million during the year. CRISIL believes that EAPL will
continue to receive need-based fund support from its promoters,
thereby ensuring sustenance of its improved capital structure.
The rating reflects EAPL's weak financial risk profile, marked by
a small net worth, high TOLTNW ratio, and weak debt protection
metrics. The rating also factors in the company's exposure to
risks relating to geographical concentration in revenue and
intense competition in the automobile (auto) dealership industry.
These rating weaknesses are partially offset by the extensive
experience of EAPL's promoters in the auto dealership business.
Outlook: Stable
CRISIL believes that EAPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the company reports a
better financial risk profile, backed by sustained improvement in
its scale of operations and profitability and stable working
capital cycle. Conversely, the outlook may be revised to
'Negative' if a stretch in working capital cycle or low cash
accruals lead to deterioration in EAPL's liquidity, or if it
undertakes a large debt-funded capital expenditure programme,
further weakening its capital structure.
EAPL, promoted by Mr. Sanjay M, is an authorised dealer of
passenger vehicles of Tata Motors Ltd (rated 'CRISIL
AA/Stable/CRISIL A1+') and Fiat India Automobiles Pvt Ltd in
Bengaluru (Karnataka). The company, incorporated in September
2010, commenced operations in March 2011.
For 2013-14, EAPL reported a profit after tax (PAT) of INR1.2
million on an operating income of INR725.1 million; the company
reported a PAT of INR0.38 million on an operating income of INR710
million for 2012-13.
EMCO LIMITED: CARE Lowers Rating on INR369.40cr LT Loan to B
------------------------------------------------------------
CARE revises ratings assigned to bank facilities of Emco Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 369.40 CARE B Revised from
CARE BB+
Short term Bank Facilities 1,350.00 CARE A4 Revised from
CARE A4+
Rating Rationale
The revision in the ratings assigned to the bank facilities of
EMCO Limited (EMCO) factors in weak liquidity position due to the
stretched working capital cycle on account of high collection
period. The rating action also factors in low profitability margin
during FY14 (refers to the period April 01 to March 31).
Furthermore, the revised ratings take into consideration high
leverage ratios and large exposure to loss making subsidiaries
(via corporate guarantees and loans & advances).
The ratings, however, continue to reflect the company's
established position in the Transmission & Distribution (T&D)
segment of the power sector.
The ability of the company to manage its working capital in view
of its growing scale of operations along with reduction in
receivables, improvement in profitability and future performance
of the loss-making subsidiaries are the key rating sensitivities.
Incorporated as a private limited company in 1964, EMCO Limited
(EMCO) was converted into a public limited company in 1965. The
current promoter, R.S. Jain Group, took over the company from B.S.
Jain Group in 1991. EMCO operates through two main verticals:
Products and Projects. The products division is engaged in the
manufacturing of transformers and electronic energy meters. EMCO
has six manufacturing facilities for transformer, transmission
tower line and meters viz two in Thane, two in Jalgaon, and one
each in Dadra and Vadodara. As on
March 31, 2014, the installed capacity was 20,000 MVA p.a. in the
transformer division, 45,000 MT in tower & structural division and
1.30 million p.a. in the meters division.
During FY14, EMCO reported total income of INR847.29 crore (up
23.9% y-o-y), and PAT of INR7.07 crore. For the period ended
9MFY15, total income stood at INR614.7 crore and the company
reported PAT of INR2.87 crore.
GALAXY COTTON: ICRA Reaffirms B Rating on INR14cr Cash Credit
-------------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B assigned to
the INR14.00 crore cash credit facility of Galaxy Cotton &
Textiles Private Limited. Also, ICRA has reaffirmed the short-term
rating of [ICRA]A4 assigned to the INR2.10 crore Standby Line of
Credit facility of GCTPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 14.00 [ICRA]B reaffirmed
Standby Line of
Credit 2.10 [ICRA]A4 reaffirmed
Rating Rationale
The reaffirmation of the ratings factors in GCTPL's weak financial
profile as evident from low return indicators, leveraged capital
structure and weak coverage indicators. The rating continues to
remain constrained by lack of diversification in product profile;
highly competitive and fragmented industry structure owing to low
entry barriers and vulnerability of profitability to raw material
prices, which are subject to seasonality, crop harvest and
regulatory risks.
However, the ratings favorably factor in the long experience of
the promoters in the ginning industry; healthy scaling up of
operations in FY14 and favorable location of the company's
manufacturing facility in Veraval giving easy access to raw
material.
Galaxy Cotton & Textiles Private Limited (GCTPL) was incorporated
in the year 1994 and is involved in the business of ginning and
pressing of raw cotton. The company's plant is located in Veraval
(Rajkot) and is equipped with forty eight ginning machines and one
pressing machine with production capacity of 400 bales per day.
Besides manufacturing, the company is also engaged in trading of
cotton seeds, yarn, lint etc. The promoters of GCPTL have been
associated with the cotton ginning and trading business for over
two decades and are also involved in the operations of a few other
cotton ginning companies, either as directors or partners.
Recent Results
For the year ended on March 31, 2014, the company reported an
operating income of INR101.05 crore and profit after tax of
INR0.18 crore as against an operating income of INR70.89 crore and
profit after tax of INR0.24 crore for the year ended on
March 31, 2013.
GANESH MULTIPLEX: CRISIL Suspends D Rating on INR65MM LOC
---------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Ganesh
Multiplex Pvt Ltd (GMPL; part of the GMPL group).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Letter of Credit 65 CRISIL D
The suspension of ratings is on account of non-cooperation by GMPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, GMPL is yet to
provide adequate information to enable CRISIL to assess GMPL'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'
For arriving at the rating, CRISIL has combined the business and
financial risk profiles of Siddhi Vinayak Industries Pvt Ltd
(SVIPL), GMPL, and Jai Shree Balaji Fats & Oils Pvt Ltd (JSFPL).
This is because the three companies, together referred to as the
GMPL group, have common promoters and management, significant
operational linkages with common suppliers and customers, and
fungible cash flows.
The GMPL group trades in edible oil, primarily refined, bleached,
and deodorised (RBD) palmolein oil. The group also trades in
pulses. Its daily operations are managed by Mr. Naval Kishore
Banka and his son, Mr. Rajeev Banka.
GOKUL JEWELLERY: CRISIL Cuts Rating on INR160MM Bank Loan to D
--------------------------------------------------------------
CRISIL has downgraded its ratings on the short-term bank
facilities of Gokul Jewellery House Pvt Ltd (Gokul; a part of the
SGJHL group) to 'CRISIL D' from 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bill Discounting 140 CRISIL D (Downgraded from
'CRISIL A4')
Proposed Short Term 160 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL A4')
The rating downgrade reflects instances of bills remaining unpaid
for more than 30 consecutive days because of the group's weak
liquidity. The weak liquidity is on account of stretch working
capital cycle driven by delays in collection of receivables.
The ratings continue to reflect Shree Ganesh Jewellery House Ltd
(SGJHL) weak financial risk profile, marked by subdued debt
protection metrics, its exposure to risks related to customer and
geographic concentration and intense competition in the retail
jewellery market. However, the group derives comfort from its
promoters' extensive industry experience.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of Gokul, Easy Fit Jewellery Pvt Ltd (Easy
Fit) and SGJHL. This is because, the three entities, together
referred to as SGJHL group, are under a common management, are
engaged in the same line of business, and operational and
financial linkages.
The SGJHL group of Kolkata is promoted by Mr. Nilesh Parekh and
Mr. Umesh Parekh. SGJHL was incorporated in 2002. The company is
engaged in trading, manufacturing and export of handcraft and
machine-made studded gold and diamond jewellery.
Easy Fit is a 100 per cent subsidiary of SGJHL and is engaged in
manufacturing and export of handcrafted or machine-made plain and
studded diamond jewellery. Gokul is a 51.5 per cent subsidiary of
SGJHL. The company is engaged in trading of bullions and
manufacturing of handcraft jewellery.
JAVIN CONSTRUCTION: ICRA Assigns B Rating to INR30cr Term Loan
--------------------------------------------------------------
ICRA has assigned its long term rating of [ICRA]B to the INR30
crore term loan of Javin Construction Pvt Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term loan 30.00 [ICRA]B; (assigned)
ICRA's rating is constrained by the execution risks that JCPL is
exposed to, given the intermediate stage of project completion
(23% of the project cost has been incurred till January, 2015) and
the modest level of bookings (38% of the area had been sold as of
January, 2015). This is critical as the company remains highly
dependent on customer advances for funding the project execution
(customer advances constitute 62% of the envisaged funding). This
apart, with project completion planned by Q1 FY2017 and debt
repayment commencing from Q2 FY 2017, JCPL's committed outflows
will be significant going forward. In absence of strong bookings
and consequent collections, the company will remain dependent on
additional promoter support. Moreover, with the company planning
to enhance the scope of the project by applying for additional
Floor Area Ratio(FAR) approvals, upfront funding requirements are
expected to increase. However, the rating favourably factors in
the experience of JCPL's promoters in the real estate sector in
the National Capital Region (NCR), low approval risks for JCPL's
project 'Raj Empire' and the fact that the debt tie-up is in
place.
Going forward, the company's ability to improve booking levels,
and execute the project as planned while managing its cashflows
will be the key rating sensitivities. Further, the timing of any
additional approval costs and revenue share to land owning
entities will also be rating sensitivities.
JCPL is developing a residential project called 'Raj Empire' at
Raj Nagar Extension, Ghaziabad, Uttar Pradesh. The project has a
current saleable area of 6.17 lakh square feet at an estimated
cost of INR132 crore. The same is envisaged to be funded through
customer advances of INR82 crore, bank term loan of INR30 crore,
and balance through promoter funds. The land is owned by a
consortium of JCPL and promoter owned entities which will receive
a revenue share from the project. The key promoter Mr. Mukesh
Agrawal has been executing projects in NCR for the past many years
under the banner of the SS group.
JESSOP AND CO: CRISIL Suspends D Rating on INR600MM Cash Credit
---------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Jessop
and Co Ltd (JCL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 450 CRISIL D
Cash Credit 600 CRISIL D
Letter of Credit 250 CRISIL D
The suspension of ratings is on account of non-cooperation by JCL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, JCL is yet to
provide adequate information to enable CRISIL to assess JCL'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'.
JCL was established in the eighteenth century as a heavy
engineering company. It is renowned for the construction of
Electric Multiple Unit coaches and wagons for the Indian Railways.
The company also manufactures diverse engineering products,
including bogie frames, cranes, road rollers, and hydraulic
cylinders; and undertakes fabrication of steel structures.
Additionally, JCL trades in steel products.
KALYANI ENGINEERING: CRISIL Suspends D Rating on INR300MM Loan
---------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Kalyani
Engineering Works (KEW).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 60 CRISIL D
Cash Credit 300 CRISIL D
Proposed Long Term
Bank Loan Facility 3.4 CRISIL D
Term Loan 166.6 CRISIL D
The suspension of ratings is on account of non-cooperation by KEW
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, KEW is yet to
provide adequate information to enable CRISIL to assess KEW'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 1982 by Mr. G R Makharia, KEW is a manufacturer and
fabricator of spares, components, and sub assemblies. The firm
undertakes machining of spares as well as critical components such
as cylinders, pistons, tie rods, axle boxes, and magnet frames of
locomotive engines and other vehicles. Its workshop is based in
Ghaziabad (Uttar Pradesh). The firm is equally held by two
partners: Mr. Vinod Makharia (son of Mr. G R Makharia) and his
wife Mrs. Kiran Makharia.
MAA VAISHNO: CRISIL Suspends D Rating on INR165MM Cash Loan
-----------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Maa Vaishno Sales Pvt Ltd (MVSPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 165 CRISIL D
Proposed Long Term
Bank Loan Facility 35 CRISIL D
The suspension of ratings is on account of non-cooperation by
MVSPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, MVSPL is yet to
provide adequate information to enable CRISIL to assess MVSPL'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'
MVSPL was set up as a proprietorship firm named Maa Vaishno
Enterprises, by Mr. Harish Agarwal, in August 2000. MVSPL
distributes electrical products manufactured by various principals
such as Finolex Cables Limited, Surya Roshni Limited, KEI
Industries Limited etc. in West Bengal.
MANN RESIDENCY: CRISIL Suspends D Rating on INR280MM Term Loan
--------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Mann Residency Pvt Ltd (Mann).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 20 CRISIL D
Proposed Long Term 87 CRISIL D
Bank Loan Facility
Term Loan 280 CRISIL D
The suspension of ratings is on account of non-cooperation by Mann
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, Mann is yet to
provide adequate information to enable CRISIL to assess Mann'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'
Mann was set up in 2007 by Mr. Joginder Singh Mann and his family.
The company runs a four-star hotel in Gurgaon. The hotel commenced
operations in October 2011.
METROWORLD TILES: ICRA Reaffirms B+ Rating on INR9.55cr Loan
------------------------------------------------------------
ICRA has re-affirmed [ICRA]B+ rating to the INR15.55 crore long
term fund based facility of Metroworld Tiles Private Limited. ICRA
has also reaffirmed the [ICRA]A4 rating to the short term
fund/non-fund based limits of INR2.11 crore of MTPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 6.00 [ICRA]B+ reaffirmed
Term Loan 9.55 [ICRA]B+ reaffirmed
Bank Guarantee 1.92 [ICRA]A4 reaffirmed
Credit Exposure Limit 0.19 [ICRA]A4 reaffirmed
The reaffirmation of the ratings takes into account MTPL's
relatively small scale of operations: susceptibility of the
company's profitability to the volatile raw material prices and
increasing natural gas prices. The ratings further takes into
account the declining operating margins and modest coverage
indicators of the company. ICRA also notes the highly competitive
and fragmented ceramic industry, and the vulnerability of MTPL's
profitability to the cyclicality associated with real estate
industry.
The ratings continue to favorably factor in the extensive
experience of promoters in the ceramic industry; MTPL's access to
marketing network of the group concern, and its locational
advantage resulting in easy access to raw material sources. The
ratings also take into account the steady increase in the
company's scale of operations with the stabilization of operations
and the stable demand outlook for MTPL's new products - Polished
Glazed Vitrified Tiles (PGVT) and porcelain tiles. Moreover,
MTPL's reputed clientele base with off-take agreements results in
stable business.
Metroworld Tiles Private Limited (MTPL) is a glazed vitrified tile
manufacturer with its plant situated at Morbi, Gujarat. The plant
has current installed capacity of 39,600 Metric Tonnes Per Annum
(MTPA). The company started with manufacturing vitrified tiles and
later, during FY13 modified its operations to switch to production
of Polished Vitrified Glazed Tiles (PGVT) and Porcelain Tiles. The
company is a part of Metro Group of Industries having presence
across floor tiles, vitrified tiles and glazed vitrified tiles
manufacturing. MTPL is promoted by Mr. Dilip R. Patel and Mr.
Ratilal L. Patel.
Recent Results
For the 2013-2014, MTPL reported an operating income of INR34.95
crore and profit after tax of INR0.23 crore as against operating
income of INR30.32 crore and profit after tax of INR0.17 crore for
the financial year 2012-13. Further, during 9M FY 2015
(provisional unaudited financials), MTPL reported an operating
income of INR27.46 crore and profit before tax of INR0.05 crore.
NADIA CONSTRUCTIONS: CRISIL Suspends D Rating on INR100M Loan
-------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Nadia Constructions Pvt Ltd (NCPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 100 CRISIL D
The suspension of ratings is on account of non-cooperation by NCPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, NCPL is yet to
provide adequate information to enable CRISIL to assess NCPL'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'
NCPL was established in March 2008 by Mr. Saurav Saha, Mrs. Nadia
Saha, and Mr. Somnath Paul. The company undertakes real estate
development, and is currently constructing a residential complex,
Durgapur Residency ' Phase 3, at Benachity, Durgapur (West
Bengal), comprising 12 blocks with 230 flats.
NADIA HEALTHCARE: CRISIL Suspends D Rating on INR50MM Term Loan
---------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Nadia Healthcare Pvt Ltd (NHCPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 2 CRISIL D
Term Loan 50 CRISIL D
The suspension of ratings is on account of non-cooperation by
NHCPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, NHCPL is yet to
provide adequate information to enable CRISIL to assess NHCPL'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'
NHCPL was incorporated in 2009, and has franchisee arrangements
with Gold's Gym to establish a gym in Kolkata and with Apollo
Clinic for a multi-specialty clinic in Durgapur (West Bengal).
NEOTECH EDUCATION: ICRA Reaffirms D Rating on INR18.22cr Loan
-------------------------------------------------------------
ICRA has reaffirmed the long term rating assigned to the INR18.22
crore (enhanced from INR12.22 crore) fund based facilities of
Neotech Education Foundation at [ICRA]D. The rating suspension
done in January 2015 has been revoked.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 18.22 [ICRA]D reaffirmed;
suspension revoked
Rating Rationale
The rating reaffirmation takes into consideration the delays in
debt servicing as a result of liquidity constraints arising due to
an increase in project cost and lower than expected intake of
students for diploma course due to delay in availing regulatory
approvals for its commencement. The rating is further constrained
by the weak financial profile of the company as characterized by
negative cash accruals, adverse capital structure and weak
coverage indicators. The rating continues to be constrained by the
start up nature of the college which makes it difficult to recruit
competent academic staff and secure adequate enrolments; exposure
to execution risks as the project has already had a significant
cost and time overruns. Further the rating is constrained by the
high competitive intensity due to the presence of other
educational institutions in the nearby regions; however Vadodara,
where the institute is located, has limited number of reputed
engineering colleges thereby mitigating this risk to a certain
extent.
The rating, however, takes comfort from the long experience of the
promoters in the education business through other colleges and
positive outlook for the higher education sector in India.
Incorporated in November 2011, under Section 25 of Company's act
1956, Neotech Education Foundation (NEF) has set up a college
namely "Neotech Technical Campus" (NTC) in Vadodara, Gujarat. NEF
is a part of Gujarat Technical University (GTU) and affiliated to
All India Council for Technical Education (AICTE) norms. At
present, the college offers civil, electrical and mechanical
engineering courses at undergraduate level to a total of 300
students per batch and Diploma to Degree courses to a total of 100
students per batch. From the academic year 2014-15, the college
has also started offering Diploma courses in civil, computer,
electrical and mechanical streams with the total intake of 300
students per batch.
Recent Results
For year ended on March 31, 2014, NEF has reported an operating
income of INR1.38 crore and a net loss of INR1.71 crore. For the
period ended March 20, 2015 of the current fiscal, the company has
reported an operating income of INR4.25 crore and a net loss of
INR1.99 crore. (as per provisional financials)
OM COTTON: ICRA Reaffirms B+ Rating on INR5.0cr Cash Credit
-----------------------------------------------------------
ICRA has reaffirmed the [ICRA]B+ rating to the INR1.03 crore term
loans facility and INR5.00 crore cash credit facility of Om Cotton
& Oil Industries.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based-Term Loan 1.03 [ICRA]B+; reaffirmed
Fund Based-Cash Credit 5.00 [ICRA]B+ ;reaffirmed
The reaffirmation of rating continues to be constrained by Om
Cotton & Oil Industries' (OCOI) modest scale of operation and weak
financial profile characterized by low profitability, modest debt
coverage indicators and stretched capital structure due to high
working capital borrowings. ICRA also takes note of the highly
competitive and fragmented industry structure with the limited
value additive nature of operations, which leads to pressure on
profitability. The rating further incorporates the vulnerability
of margins to adverse movements in agricultural produce prices,
which are in turn dependent on agro climatic condition, demand
from international market and availability of cotton in domestic
market. Also, being a partnership firm, any substantial withdrawal
by the partners can have an adverse impact on the capital
structure of the firm.
The rating, however, continues to factor in the experience of the
partners in the cotton industry and the favourable location of the
firm, giving it easy access to high quality raw cotton. The rating
also considers the forward integration in crushing facilities
providing additional revenues and diversification.
Om Cotton & Oil Industries (OCOI) was incorporated as a
partnership firm in the year 2012. It is engaged in the ginning
and pressing of raw cotton and crushing of cottonseeds. The firm
is managed by six partners, Mr. Govindbhai Loh, Mr. Pravinkumar
Loh, Mr. Sanjaybhai Jivani, Mr. Mitulbhai Jivani, Mr. Nileshbhai
Virsodiya and Mr. Arvindbhai Bhalodiya. The manufacturing unit is
located at Hirapar, Rajkot district of Gujarat. It currently has
24 ginning machines, one automatic pressing machine, and four
expellers with an installed capacity to produce 235 cotton bales,
8.5 MT of cottonseed oil and 63.50 MT of cottonseed oil cake per
day (24 hours operation).
Recent Results
In FY14, the firm reported an operating income of INR19.04 crore
and net profit of INR0.01 crore.
PANNA LAL: CRISIL Suspends D Rating on INR90MM Cash Credit
----------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Panna Lal Tarak Shaw Ispat Private Limited (Panna Lal).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 90 CRISIL D
Letter of Credit 20 CRISIL D
The suspension of ratings is on account of non-cooperation by
Panna Lal with CRISIL's efforts to undertake a review of the
ratings outstanding. Despite repeated requests by CRISIL, Panna
Lal is yet to provide adequate information to enable CRISIL to
assess Panna Lal'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'
Panna Lal was originally formed as a partnership concern in 1973;
the firm was reconstituted as a private limited company in 2011.
Initially, it traded in steel products such as mild-steel rounds.
Since 1995, it has been trading in die steel castings and alloy
steel. The directors of Panna Lal are Mr. Arun Jaiswal and Mr.
Tarak Nath Shaw, who look after the company's day-to-day
operations.
PAR DRUGS: ICRA Upgrades Rating on INR27.68cr Term Loan to B
------------------------------------------------------------
ICRA has upgraded the long term rating assigned to the INR32.68
crore long term fund based facilities of Par Drugs & Chemicals
Private Limited (PDCPL) from [ICRA]D to [ICRA]B. ICRA has also
upgraded the short term rating assigned to the INR1.00 crore
short-term non-fund based facilities of PDCPL from [ICRA]D to
[ICRA]A4. The short term facilities are sublimit of the cash
credit facility.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 5.00 Revised to [ICRA]B
from [ICRA]D
Term Loans 27.68 Revised to [ICRA]B
from [ICRA]D
Letter of credit 1.00 Revised to [ICRA]A4
from [ICRA]D
The revision in ratings takes into account the regularizing of the
debt servicing by PDCPL in the recent months and healthy growth in
scale of operations in FY 2014 and current fiscal on account of
successful augmentation of its installed capacities in July 2013.
Further healthy off take of high value additive products in recent
years has lead to an improvement in profitability and cash-flows
of the company. The ratings also factor in the long experience of
promoters and established track record of the company in basic
chemical manufacturing industry, diversified clientele base, and
healthy profitability of the company at operating level.
The ratings, however, continues to remain constrained by modest
scale of the company's operations in a commoditized basic chemical
industry and vulnerability of profitability to adverse
fluctuations in prices of key raw materials which may not be
passed onto the customers adequately. The ratings further take
into account the weak financial risk profile of the company
characterized by aggressive capital structure and weak debt
protection metrics due to aggressive debt funded capex undertaken
in recent past (FY 2013) as well as company's exposure to foreign
currency exchange rate fluctuations on export sales, although the
risk is mitigated to the extent of forward contracts booked by the
company. ICRA also takes note of the fact that the company's
annual repayment obligations for next five years are quite
sizeable and achievement of optimum utilization of newly added
capacities remains critical from the credit perspective.
Bhavnagar (Gujarat) based Par Drugs & Chemicals Private Limited
(PDCPL) is promoted by the Savani family and is engaged in
manufacturing basic chemicals including Aluminium and Magnesium
salts majorly used in antacid drugs and polymer industry. The
company finds its roots in M/s Par Inorganic, proprietary firm,
set up in 1982 by first generation entrepreneur Mr. V. J. Savani
in Bhavnagar. The firm was converted into a private limited
company in 1999. The company has two manufacturing facilities, one
at Bhavnagar and other at Ankleshwar with Bhavnagar facility being
WHO GMP approved.
Recent Results
For the year ended March 31, 2014 the company reported an
operating income of INR27.27 crore and profit after tax of INR0.72
crore as against an operating income of INR18.68 crore and profit
after tax of INR0.90 crore for the year ended March 31, 2013.
During first ten months of FY 2015, the company has reported
operating income of INR27.21 crore and Profit before tax of
INR1.09 crore (unaudited provisional financials).
PARATUS REAL: ICRA Assigns B+ Rating to INR15cr Term Loan
---------------------------------------------------------
ICRA has assigned its long term rating of [ICRA]B+ to the INR15.00
crore proposed term loan facility of Paratus Real Estates Pvt Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Proposed term loan 15.00 [ICRA]B+; (assigned)
ICRA's rating factors in the extensive experience and track record
of the promoters of PREPL, who have executed a number of
residential projects in various locations across North India such
as Moradabad, Dwarka, Noida, Nainital etc. The rating is also
supported by the good initial response to the project with ~58% of
the area having been sold as of February, 2015, resulting in
moderate committed receivables. Further the rating also takes
comfort from the fact that the company has a fully paid up land
parcel and low approval risk for the project.
The rating is, however, constrained by the fact that the project
is in initial stages of construction with only ~14% of the
construction cost having been incurred as of February, 2015.
PREPL's ability to ramp up the execution will be critical in order
to meet the targeted completion deadline of March, 2017. Further,
PREPL is yet to achieve tie up for the term loan, and given that
27% of the project cost is expected to be funded by the same,
funding risk persists. The rating also factors in the risk of
slowdown in real estate and competitive pressures to which the
company is exposed.
Going forward the ability of the company to tie up the debt,
progress in execution and pace of collections will comprise the
key rating sensitivities.
PREPL is a special purpose vehicle floated by Earthcon
Construction Private Limited and ISP Construction Private Limited,
holding a 50.74% and 49.26% stake respectively. The company was
incorporated on May 4, 2013 and is developing a residential
project, 'Mega County', in Dehradun, Uttarakhand. The project
comprises saleable area of 174,335 square feet and consists of one
hundred nineteen 2/3 BHK flats, in two towers of six floors each.
The construction started in 2013-14 and as of February, 2015, ~14%
of the estimated construction cost had been incurred and ~58% area
had been sold. The total project cost is estimated at INR56.54
crore, with INR41.54 crore proposed to be funded through
promoter's contribution and customer advances, and the balance
through bank loan.
PASHUPATI DIAMONDS: CRISIL Suspends B+ Rating on INR60MM Loan
-------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Pashupati Diamonds.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 60 CRISIL B+/Stable Suspended
The suspension of ratings is on account of non-cooperation by PD
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, PD is yet to
provide adequate information to enable CRISIL to assess PD'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'
PD was set up as a proprietorship firm in 2002 by Mr. Pradeep
Verma. It is involved in the manufacturing, wholesaling, and
retailing of precious-stone-studded and gold jewelry. PD's
showroom is at Karol Bagh in New Delhi.
PERFEX IMPEX: CRISIL Suspends D Rating on INR250MM LOC
------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Perfex Impex Pvt Ltd (PIPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bill Discounting 150 CRISIL D
Cash Credit 30 CRISIL D
Letter of Credit 250 CRISIL D
Proposed Long Term
Bank Loan Facility 0.5 CRISIL D
The suspension of ratings is on account of non-cooperation by PIPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, PIPL is yet to
provide adequate information to enable CRISIL to assess PIPL'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'
PIPL was established in Kolkata (West Bengal) in 2002. The company
trades timber logs and sawn timber in Odisha, Karnataka, and Tamil
Nadu. PIPL is promoted by Mr. Bhagwan Lal Patel, based in West
Bengal.
R C JEWELLERS: CRISIL Suspends B+ Rating on INR280MM Cash Loan
--------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
R C Jewellers Pvt Ltd (RCJPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 40 CRISIL A4
Cash Credit 280 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 20 CRISIL B+/Stable
Proposed Short Term
Bank Loan Facility 660 CRISIL A4
The suspension of ratings is on account of non-cooperation by
RCJPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, RCJPL is yet to
provide adequate information to enable CRISIL to assess RCJPL'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'
RCJPL was established in 2001 by Mr. Arun Soni. The company
operates two showrooms for gold, silver and diamond-studded
jewellery in the Delhi-National Capital Region (NCR).
R H AGRO: CRISIL Suspends D Rating on INR850MM Cash Loan
--------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
R H Agro Overseas Private Limited (RH Agro).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 10 CRISIL D
Cash Credit 850 CRISIL D
Foreign Exchange Forward 50.1 CRISIL D
Funded Interest Term Loan 82 CRISIL D
Term Loan 135.9 CRISIL D
Working Capital Term Loan 400 CRISIL D
The suspension of ratings is on account of non-cooperation by RH
Agro with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, RH Agro is yet
to provide adequate information to enable CRISIL to assess RH
Agro'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'
RH Agro was set up in 2005-06 (refers to financial year, April 1
to March 31) by Mr. Dilbagh Rai Chawla and Mr. Sukhchain Chawla.
It mills, processes, and sells basmati rice. The company's
promoters have been in the rice business for 25 years through LT
Foods Ltd (sells under the Dawat basmati brand). RH Agro's rice
milling unit at Sonepat (Haryana) has a rice milling, grading, and
sorting capacity of 30 tonnes per hour. The company sells rice
under the brand names Hardik, Nafis, and Dilshan.
RABIN SINGHA: CARE Reaffirms D Rating on INR22.79cr LT Loan
-----------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Rabin Singha Heavy Earth Movers Co. Pvt. Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 22.79 CARE D Reaffirmed
Rating Rationale
The rating of Rabin Singha Heavy Earth Movers Co Pvt Ltd (RHEMCO)
continues to be constrained by the ongoing delay in servicing of
the bank debt obligations on account of the stretch liquidity
position of the company. The delay in servicing of the debt
obligations is on account of cash flow mismatches due to a delay
in realisation of receivables.
The timely servicing of debt obligations would be the key rating
sensitivity.
RHEMCO was set up as a proprietorship entity in 1989 by the Late
Mr Rabin Singha of Bankura, West Bengal, for carrying out
different types of earthwork and construction activities.
Subsequently, in September 1998, it was converted into a private
limited company. After the demise of Mr Rabin Singha in July 2010,
the company has been spearheaded by his son Mr Sanjib Singha ably
supported by his sister Mrs Ishita Singha.
RHEMCO is a small-sized West Bengal-based company engaged in
providing different types of civil construction activities like
earthwork, border-fencing, constructing airport hangars, digging
ash ponds, railway embankments, etc for government and semi-
government entities. This apart, the company is also an authorized
dealer of Case New Holland Construction Equipment (India) Pvt Ltd
for selling its construction equipment, ie, loader backhoes and
compactors with 3S facilities (sales, service & spare parts).
During FY14 (refers to the period April 1 to March 31), RHEMCO had
reported a total operating income of INR49.5 crore (INR98.0 crore
in FY13) and PAT of INR0.5 crore (INR1.0 crore in FY13).
RLJ FERRO: CRISIL Suspends D Rating on INR60MM Cash Credit
----------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
RLJ Ferro Alloys Pvt Ltd (RLJFA).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 60 CRISIL D
Proposed Long Term
Bank Loan Facility 20 CRISIL D
The suspension of ratings is on account of non-cooperation by
RLJFA with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, RLJFA is yet to
provide adequate information to enable CRISIL to assess RLJFA'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'.
RLJFA, incorporated in 2006, trades in ferroalloys imported from
Bhutan and Meghalaya and those manufactured by other players in
India.
ROOP RAM: CRISIL Suspends D Rating on INR147MM Bank Loan
--------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Roop Ram Educare Pvt Ltd (RREPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Overdraft Facility 10 CRISIL D
Proposed Long Term
Bank Loan Facility 147 CRISIL D
Term Loan 30 CRISIL D
The suspension of ratings is on account of non-cooperation by
RREPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, RREPL is yet to
provide adequate information to enable CRISIL to assess RREPL'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'.
RREPL was set up in 2007 by Mr. Anand Singh Mann and his family.
The company operates a co-educational school, Lancers
International, in New Delhi. The school follows the International
Baccalaureate and University of Cambridge International
examinations syllabus and has classes from pre-primary (lower
kindergarten and upper kindergarten) to standard 12 (primary,
lower secondary, and higher secondary levels).
SALGUTI INDUSTRIES: ICRA Ups Rating on INR50.37cr Loan to B-
------------------------------------------------------------
ICRA has revised the long-term rating assigned to INR50.37 crore
fund based limits, INR0.15 crore non-fund based limits and INR0.72
crore unallocated limits of Salguti Industries Limited (SIL) from
[ICRA]D to [ICRA]B-. ICRA has also revised the short term rating
assigned to INR3.76 crore non-fund based limits of SIL from
[ICRA]D to [ICRA]A4.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limit 50.37 [ICRA]B- revised from [ICRA]D
Non-fund based
Limits, LT scale 0.15 [ICRA]B- revised from [ICRA]D
Non-fund based
Limits, ST scale 3.76 [ICRA]A4 revised from [ICRA]D
Unallocated Limits 0.72 [ICRA]B- revised from [ICRA]D
The revision in rating primarily factors in the timely servicing
of debt obligation by the company in the past 6 months. The rating
however, continues to remain constrained on account of stretched
liquidity position of the company due to delayed receivables and
weak financial profile on account of high gearing owing to debt
funded capex coupled with low profitability. The ratings also
takes into consideration SIL's exposure to significant customer
concentration risk and high competitive intensity in the poly
woven sacks & spinning industry exerting pressure on the
profitability. The ratings however take comfort from the long
track record of operations & promoters' experience in the
packaging industry; established relationship with major customers
such as Coromandel International Limited & Venkat Polymers Private
Limited and favourable demand prospects for cement and fertilizer
industry in the medium term.
The ability of the company to improve its profitability while
managing its working capital requirements would remain key rating
sensitivities going forward.
Salguti Industries Limited (SIL) was incorporated in 1984 and is
engaged in the manufacturing of poly woven sacks for packaging of
fertilizers, cement, food grains etc. In year 2005, SIL
diversified into textiles segments and is engaged in the
manufacturing of cotton grey fabric for garments, bed linen and
furnishings. The manufacturing facilities for packaging division
are located at Bollaram, Medak District and Rajapur, Mahaboobnagar
District of Telangana and for textile division at Jadcherla,
Telangana. Currently, the installed capacity of poly woven sacks
is 10400 MT/annum and of textile unit is at 2600 MT/annum.
Recent Results
The company reported a net loss of INR0.71 crore on an operating
income of INR122.77 in FY2014 as against a net loss of INR0.95
crore on an operating income of INR110.05 crore in FY2013.
SAMEEP FABRICS: ICRA Reaffirms B Rating on INR18.50cr Cash Loan
---------------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B to the
INR18.50 crore (enhanced from INR10.00 crore) cash credit facility
and the INR0.16 crore (reduced from INR0.48 crore) term loan
facility of Sameep Fabrics Private Limited. ICRA has also
reaffirmed the short-term rating of [ICRA]A4 to the INR0.44 crore
(reduced from INR2.30 crore) short-term non-fund based facility of
SFPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 18.50 [ICRA]B reaffirmed
Term Loan 0.16 [ICRA]B reaffirmed
Non-fund Based,
Short-term facility 0.44 [ICRA]A4 reaffirmed
Rating Rationale
The reaffirmation of the ratings takes into account SFPL's weak
financial profile as reflected by low profitability levels,
leveraged capital structure and high working capital intensity of
operations. The ratings are further constrained by the
vulnerability of the company's profitability to fluctuations in
prices of key raw materials which may not be passed onto the
customers adequately, and to foreign currency exchange rate
fluctuations although the latter risk is mitigated to the extent
of forward contracts booked by the company. Further, the ratings
continue to factor the exposure to intense competitive pressures
from numerous small as well as large manufacturers as a result of
fragmented nature of the garment industry.
The ratings, however favourably factor in the extensive experience
of promoters in the textile industry, favourable location of the
company in Ahmedabad in proximity to raw material suppliers and
downstream processing units, and a diversified clientele base of
the company. The ratings also factor in the healthy growth in the
operating income of the company in FY 2014.
Sameep Fabrics Private Limited (SFPL) was incorporated in November
2005 by the name of Aman Fabrics Private Limited which was later
changed to the present name in the year 2008-09. SFPL is engaged
in the manufacturing of cotton based textile products such as bed
sheets, pillow covers, suiting & shirting fabrics through
outsourcing of key manufacturing processes. In addition, the
company is also engaged in trading of cotton bales and other
textile products. It operates out of Ahmedabad and is promoted by
Agarwal family.
Recent Results
During FY 2014, SFPL reported an operating income of INR173.00
crore and profit after tax of INR0.53 crore as against an
operating income of INR69.06 crore and profit after tax of INR0.14
crore during FY 2013. During 9M FY2015, SFPL reported an operating
income of INR138.01 crore and profit after tax of INR0.57 crore
(as per provisional financials).
SANTOSH KUMAR: CRISIL Suspends D Rating on INR67.5MM Bank Loan
--------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Santosh
Kumar Chourasia (SKC).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 67.5 CRISIL D
Cash Credit 55 CRISIL D
Long Term Loan 15 CRISIL D
Proposed Long Term
Bank Loan Facility 7.9 CRISIL D
Proposed Short Term
Bank Loan Facility 1.6 CRISIL D
Standby Line of
Credit 8.0 CRISIL D
The suspension of ratings is on account of non-cooperation by SKC
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SKC is yet to
provide adequate information to enable CRISIL to assess SKC'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'.
SKC was set up as a partnership firm in 2003 by Mr. Santosh Kumar
Chourasia, Mr. Anil Kumar Srivastava, and Mr. Arvind Kumar
Chourasia. SKC undertakes civil construction work such as
maintenance of roads and construction of railway stations,
primarily in Jharkhand and West Bengal.
SARVESH RICE: CRISIL Ups Rating on INR107MM Term Loan to B+
-----------------------------------------------------------
CRISIL has upgraded its rating on the long term bank facilities of
Sarvesh Rice Mill Pvt Ltd (SRMPL) to 'CRISIL B+/Stable' from
'CRISIL B/Stable', while reaffirming its short term rating at
'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 5 CRISIL A4 (Reaffirmed)
Cash Credit 52.5 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Proposed Term Loan 35.5 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Term Loan 107.0 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
The rating upgrade reflects improvement in the business risk
profile of the company, marked by significant improvement in scale
of operations. The company's revenues have increased to an
estimated INR 450 million in 2014-15, against INR 192 million in
2013-14. . The increase is on account of expansion in the
manufacturing capacity of the company. The rating upgrade also
factors in the improvement in the financial profile of the
company, marked by increase in the net worth of the company due to
equity infusion done by the promoters of the company for the
capacity expansion. As on March 31, 2014, the net worth of the
company stood at INR66 million, increased from INR22 million a
year back. The increase in the net worth of the company has also
resulted in improvement in the gearing of the company, which
improved to 1.76 times as on March 31, 2014, from 2.5 times as on
March 31, 2013. Moreover, company's liquidity also improved, due
to increase in cash accruals in 2014-15, estimated to be about INR
10 million against term debt repayment obligation of INR 5
million. CRISIL believes that the company's business risk profile
shall remain moderate over the medium term, supported by adequate
liquidity.
The ratings continue to reflect the SRMPL's modest scale of
operations in the fragmented rice milling industry and its weak
debt protection metrics. These rating weaknesses are partially
offset by the extensive experience of SRMPL's promoters in the
agro-based industry.
Outlook: Stable
CRISIL believes that SRMPL will continue to benefit from its
promoters' extensive experience in the agro-based industry over
the medium term. The outlook may be revised to 'Positive' if SRMPL
increases its scale of operations further and reports better
profitability or improves its capital structure. Conversely, the
outlook may be revised to 'Negative' if SRMPL undertakes larger-
than-expected, debt-funded expansions, or its revenues and
profitability decline substantially.
Incorporated in 2009, SRMPL processes par-boiled rice at its
facility in Bardhaman (West Bengal). The day-to-day operations of
the company are managed by Mr. Ritesh Agarwal and Mrs. Vasudha
Agarwal.
SHREE BHARKA: CRISIL Assigns B+ Rating to INR110MM Cash Credit
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank
facilities of Shree Bharka Synthetics Ltd (SBSL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 110 CRISIL B+/Stable
Standby Line of Credit 15 CRISIL B+/Stable
The rating reflects SBSL's modest scale of operations and below-
average financial risk profile, marked by muted debt protection
metrics. These rating weaknesses are partially offset by the
extensive experience of SBSL's promoters in manufacturing suiting
fabric.
Outlook: Stable
CRISIL believes that SBSL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if increase in revenue and
profitability and efficient working capital management lead to
sizeable net cash accruals for SBSL. Conversely, the outlook may
be revised to 'Negative' if SBSL's financial risk profile
deteriorates on account of decline in revenue and profitability,
any large debt-funded capital expenditure, or substantial loans
and advances to group companies.
SBSL was incorporated in 1992 by the Bhilwara-based Kothari
family. SBSL manufactures suiting fabric under the brands BD
Suitings and Ahinsa Suitings. Its directors, Mr Narender Kumar
Kothari, Mr Puneet Kothari and Mr. Lad Kanwar Kothari manage its
daily operations.
SHREE SHANKAR: CRISIL Suspends D Rating on INR270MM Term Loan
-------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Shree Shankar Saw Mill Pvt Ltd (SSSPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 60 CRISIL D
Proposed Long Term
Bank Loan Facility 30 CRISIL D
Working Capital
Term Loan 270 CRISIL D
The suspension of ratings is on account of non-cooperation by
SSSPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SSSPL is yet to
provide adequate information to enable CRISIL to assess SSSPL'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'
SSSMPL was set up as a partnership firm, Shankar Saw Mill, in 1954
and was reconstituted as a private limited company in 2002. SSSMPL
is engaged in timber trading and sawing with a capacity of 1500
cubic feet per day. Its operations are managed by Mr. Purshottam
Patel and Mr. Ankit Patel.
SONA DIAMOND: CARE Assigns B+ Rating to INR6cr LT Bank Loan
-----------------------------------------------------------
CARE assigns 'CARE B+' rating to bank facilities of Sona Diamond &
Gold Exporters Pvt Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 6 CARE B+ Assigned
Rating Rationale
The rating assigned to the bank facilities of Sona Diamond & Gold
Exporters Pvt Ltd. (SDGE) is primarily constrained by its small
scale of operations in the highly fragmented and competitive gems
& jewellery industry coupled with low profitability margins,
susceptibility of the margins to fluctuation in gold & silver
price and exchange rates, customer concentration risk and working
capital intensive nature of business.
The above constraints outweigh the comfort derived from the rich
experience of the promoter in the Gems and Jewellery business and
strategic location of the plant being situated in Cochin Special
Economic Zone (CSEZ).
The ability of SDGE to grow its scale of operation along with
improvement in profitability margins and effective working capital
management would be the key rating sensitivities.
SDGE was incorporated in December 2008 by Mr Mohanan Kallate
Velayudhan and his family members based out of Thrissur, Kerala.
Since inception, the company is engaged in manufacturing and
wholesaling of gold & silver jewellery studded with precious and
semi-precious stones and plain gold & silver jewellery. SDGE has
one processing unit located in Thrissur, Kerala. It is a 100%
export-oriented unit (EOU) with entire sales made to Gulf
countries based clients to whom it supplies on made-to-order-
basis.
Subsequently in FY13 (refers to the period April 1 to March 31),
with increased restriction by government on gold import, high
custom duty and delay in getting duty drawbacks and VAT refunds,
the operation have turned unviable and resultantly, the company
has had to shut down the plant.
Later in April 2014, in order to avail the benefit of government
policies under Cochin Special Economic Zone (CSEZ), the company
has setup a new manufacturing unit at Kakkanad Kochi, wherein it
enjoys various fiscal as well as duty benefits provided by the
government. The unit was setup at a cost of INR1.25 crore. The
unit commenced operation from August, 2014.
During FY14, SDGE reported a total operating income of INR0.30
crore (vis-a-vis INR2.19 crore in FY13) and a PAT (after deferred
tax) of INR0.00 crore (vis-…-vis INR0.00 crore in FY13).
Furthermore in 9MFY15 (Provisional), the company has achieved TOI
of INR16.21 crore.
SOVA ISPAT: CRISIL Suspends D Rating on INR165.5MM Term Loan
------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Sova
Ispat Alloys (Mega Projects) Ltd (SIAMPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 60 CRISIL D
Funded Interest
Term Loan 62.4 CRISIL D
Proposed Long Term
Bank Loan Facility 76.3 CRISIL D
Term Loan 75.8 CRISIL D
Working Capital
Term Loan 165.5 CRISIL D
The suspension of ratings is on account of non-cooperation by
SIAMPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SIAMPL is yet to
provide adequate information to enable CRISIL to assess SIAMPL'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'.
SIAMPL was incorporated in 2004 and started commercial operations
in 2008. It manufactures ferro-manganese and silico-manganese. Its
operations are managed by Mr. Samir Mukherjee.
SRI LAXMI REVANTH: ICRA Reaffirms B- Rating on INR3.25cr Loan
-------------------------------------------------------------
ICRA has reaffirmed the long term rating of [ICRA]B- assigned to
INR6.35 crore (including unallocated limit of INR1.24 crore) fund
based limits of Sri Laxmi Revanth Rice Industries.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based Limit-
Term Loan 1.86 [ICRA]B- reaffirmed
Fund based Limit-
Cash Credit 3.25 [ICRA]B- reaffirmed
Unallocated 1.24 [ICRA]B- reaffirmed
The reaffirmation of rating factors in the intensely competitive
nature of rice industry with presence of several small-scale
players which puts pressure on the operating margins; weak
financial profile of the firm characterized by high gearing and
modest coverage indicators; and risks inherent to a partnership
firm though promoters have consistently introduced capital in the
last few years to support business. The rating is also constrained
by the susceptibility of profitability & revenues to agro-climatic
risks which impact the availability of paddy in adverse weather
conditions. The rating, however, takes comfort from the long track
record of the promoters in the rice mill business; presence of
rice mill in major rice growing area results in easy availability
of paddy and favorable demand prospects for rice with India being
the second largest producer and consumer of rice internationally.
Going forward, the ability of the firm to improve its financial
profile by efficiently managing its working capital requirements
remains the key rating sensitivity.
Founded in 2008, Sri Laxmi Revanth Rice Industries (SLRRI) is a
partnership firm engaged in milling of paddy to produce raw and
boiled rice. The firm is based out in Nalgonda district of Andhra
Pradesh with a total installed capacity of 240000 million tonnes
per annum (MTPA) of paddy. The firm is also engaged in trading of
paddy.
SUMMIT CORPORATION: CARE Rates INR12.99cr Long Term Loan at D
-------------------------------------------------------------
CARE assigns 'CARE D' rating to the bank facilities of Summit
Corporation Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 12.99 CARE D Assigned
Short term Bank Facilities 1.50 CARE D Assigned
Rating Rationale
The ratings assigned to the bank facilities of Summit Corporation
Private Limited (SCPL) factors in the ongoing delays in debt
servicing.
Pune-based, SCPL was incorporated in the year 2016. Formerly known
as Bharat J Com India Private Limited, the name was changed to
SCPL in January 2012. SCPL is engaged in the manufacturing of
fabricated sheet metal items for engineering and automobile
companies. The company also undertakes projects on turnkey basis
for supply, installation and commissioning of fabricated
structures, pressure vessels, storage tanks and others. Raw
material required for fabrication includes sheet metal and
structured steel, which is procured from domestic steel
manufacturers and traders like Bansal Steel Traders, Lohan Ispat
India Limited, Jindal Stainless Steelway Limited and other.
SCPL is a part of the Sumeet group, and associate companies are
Sumeet Facilities Pvt. Ltd., Unique Delta Force Security Private
Limited, Delta Works Wear, Eagle Industrial Services Pvt. Ltd.,
Unique Delta Force Esecurity Pvt. Ltd. and others.
The customers of the company in FY14 (refers to the period
April 1 to March 31) were Klaus Multi Parking Systems Private
Limited, Trans Mech Systems Limited, Tata Automotive Limited,
Voltas Material Handling Private Limited.
In FY14, SCPL earned net loss of INR0.77 crore on a total
operating income of INR22.73 crore against PAT of INR0.23 crore on
a total operating income of INR45.11 crore in FY13.
TUFFCELL BOARD: CRISIL Assigns B+ Rating to INR30MM Cash Credit
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Tuffcell Board Pvt Ltd (TBPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long Term Loan 21 CRISIL B+/Stable
Inland/Import Letter
of Credit 8.1 CRISIL A4
Bank Guarantee 0.9 CRISIL A4
Cash Credit 30.0 CRISIL B+/Stable
The ratings reflect TBPL's modest scale of operations in the
highly competitive Boards and laminates industry, the company's
working-capital-intensive operations, and the susceptibility of
its operating margin to raw material price fluctuations. These
rating weaknesses are partially offset by the extensive industry
experience of TBPL's promoter and strong dealership network.
Outlook: Stable
CRISIL believes that TBPL will benefit from its promoter's
extensive experience in the industry over the medium term. The
outlook may be revised to 'Positive' if the company's scale of
operations improves substantially along with efficient working
capital management. Conversely, the outlook may be revised to
'Negative' if TBPL's financial risk profile deteriorates due to
large working capital requirements or more-than-expected debt-
funded capital expenditure or low cash accruals.
Incorporated in 2011, TBPL is promoted by Mr. Dharmesh Patel, who
is based in Bavla, Ahmedabad (Gujarat). The company manufactures
PVC (polymerization of vinyl chloride) boards, which are used as a
substitute for plywood boards in furniture.
For 2013-14 (refers to financial year, April 1 to March 31), TBPL
reported net profit of INR1.09 million on net sales of INR87.7
million against net profit of INR0.56 on net sales of INR49.01
million in 2012-13.
UNITECH COTSPIN: ICRA Reaffirms B Rating on INR24.32cr Term Loan
----------------------------------------------------------------
ICRA has reaffirmed the [ICRA] B long term rating to the INR24.32
crore (enhanced from INR23.60 crore) term loan and INR6.00 crore
(enhanced from INR3.00 crore) cash credit facility of Unitech
Cotspin Limited. A rating of [ICRA] A4 has also been reaffirmed to
the INR1.50 crore non-fund based facilities of UCL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 6.00 [ICRA]B reaffirmed
Term Loan 24.32 [ICRA]B reaffirmed
Bank Guarantee 1.50 [ICRA]A4 reaffirmed
The rating reaffirmation continues to be constrained by Unitech
Cotspin Limited's (UCL) relatively small scale of operations with
limited track record, as well as weak financial profile as
reflected by adverse capital structure, weak debt coverage
indicators and high working capital intensity. The ratings further
take into account the vulnerability of profitability to adverse
fluctuations in cotton prices considering the high inventory
maintained by the company. Further the capital structure and
credit metrics is expected to remain stretched, given the debt
funded expansion and impending debt repayments.
The rating reaffirmation, however, favourably consider the
promoters' experience in the cotton industry through the associate
concern engaged in cotton gining and the fiscal benefits in terms
of interest subsidy, subsidized power tariff and refund of VAT.
Incorporated in 2007, Unitech Cotspin Limited (UCL) was promoted
by Mr. Manubhai Patel and Mr. Hasmukh Patel. However in May, 2011
it was taken over by present promoters Mr. Mahesh Patel, Mr.
Narendra Patel and Mr. Pravin Khut having vast experience in
textile industry. The company is engaged in the manufacture of
cotton yarn ranging between 24's to 40's with 29376 spindles of
installed capacity of 5470MT per annum.
Recent Results
During FY 2014, UCL reported an operating income of INR17.70 crore
and profit before tax of INR0.54 crore.
VAISHALI AGRO: CARE Assigns B+ Rating to INR19.25cr LT Bank Loan
----------------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of Vaishali
Agro Soya Products.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 19.25 CARE B+ Assigned
The rating assigned by CARE is based on capital deployed by the
partners and the financial strength of the firm at present. The
rating may undergo change in case of withdrawal of capital or
unsecured loans brought in by the partners in addition to the
financial performance and other relevant factors.
Rating Rationale
The rating assigned to the bank facilities of Vaishali Agro Soya
Products (VASP) is constrained by its project stabilisation risk,
and working capital intensity of business. The rating also takes
into account the susceptibility of margins to fluctuations in raw
material prices, presence in a highly competitive and fragmented
industry segment and constitution of the entity as a partnership
firm.
The rating, however, derives strength from the experienced
promoters, support from associate companies and location advantage
with proximity to sources of raw material.
Stabilization of operations and achievement of the envisaged sales
and profitability are the key rating sensitivities.
Based in Latur, Maharashtra, VASP was incorporated in October 2012
by the members of the Mukkawar family. VASP is involved in the
manufacturing, processing and refining of soyabean oil from
soyabean seeds. The main products being produced are soyabean oil
and de-oiled soyabean cakes. The unit is set up with an installed
capacity of 108,000 MT/per year for soyabean oil and 90,000 MT/per
year for de-oiled cakes. Trial operations of the unit commenced
from January 12, 2015. The total project cost was INR6.60 crore,
which was funded by the promoters' contribution of INR2.35 crore
and bank loan of INR4.25 crore. (at a Debt/equity: 1.80 times).
Operations of the firm commenced from January 20, 2015.
The soyabean oil is widely used for cooking purposes and
industrial use in printing oils and oil paints, while de-oiled
cake is primarily used as animal feed in poultry farms. The
process of extraction involves procurement of soyabean, solvent
extraction, oil desolvenizing, flake desolvenizing and oil
refining.
The other group entities managed by the promoters are M/S Balaji
Ramchandra Mukkawar, Udaygiri Agro Industries, Udaygiri Dal
Industries and Balaji Oil Mill, which are engaged in the
processing of pulses and trading of agro commodities.
VISHNU VIDYUTH: CRISIL Ups Rating on INR260MM Term Loan to C
------------------------------------------------------------
CRISIL has upgraded its rating on the long term bank facilities of
Vishnu Vidyuth India Limited (VVIL) to 'CRISIL C' from 'CRISIL D'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 40 CRISIL C (Upgraded from
'CRISIL D')
Term Loan 260 CRISIL C (Upgraded from
'CRISIL D')
The rating upgrade is driven by VVIL's track record of timely
servicing of its debt obligations, driven by regular funding
support from its promoters. The company is likely to generate just
adequate cash accruals to meet its corresponding term debt
obligations, in 2015-16 (refers to financial year, April 1 to
March 31). However, CRISIL believes that VVIL will continue to
receive funding support from its promoters to meet its debt
obligations in a timely manner.
The rating continues to reflect VVIL's modest scale of operations
and the susceptibility of its profitability to fluctuations in raw
material prices. The rating also reflects the weak financial risk
profile of the company. These rating weaknesses are partially
offset by the benefits that the company derives from its
promoters' extensive industry experience.
VVIL was set up in December 1999 by Mr. B Eshwar Rao. It was
acquired by its current promoters, the Rao family headed by Mr.
Vishnu Rao, in 2010. The company operates a biomass-based power
plant in Visakhapatnam (Andhra Pradesh).
====================
N E W Z E A L A N D
====================
SANFORD LIMITED: Shuts Christchurch Mussel Processing Facility
--------------------------------------------------------------
Sanford Limited met with its Christchurch employees on April 20 to
confirm that it is closing the company's Christchurch mussel
processing facility. Production at the mussel opening plant ended
at 12:30 p.m. on April 20.
The decision comes after a period of consultation with the 232
staff employed at the Riccarton site, who were told on 9 April
that Sanford was considering the future of mussel processing in
Christchurch. Recent weather patterns had impacted on natural spat
(offspring) supply to a point where the Company needed to look at
its South Island mussel processing capacity.
At the meeting staff were also briefed on the payments they will
receive as a result of the closure. "All employees, even those
with very little service to the Company and no redundancy
entitlements will receive a minimum of four weeks' pay, plus a
paid four week notice period starting tomorrow, with eight weeks
total pay being the minimum entitlement," said Sanford CEO Volker
Kuntzsch.
Sanford has another mussel processing facility in Havelock, near
to its mussel farms in the Marlborough Sounds.
Sanford will be combining its South Island mussel volumes at the
Havelock site. "The final decision to close has been a difficult
one due to the number of staff impacted, however given the outlook
of reduced Greenshell mussel crop supply in the short to medium
term, the Company needs one South Island location working
efficiently at capacity, rather than two impacted by uncertain
supply," said Volker Kuntzsch.
"This will eliminate the strong likelihood of intermittent
processing interruptions, unpredictable shift patterns and two sub
optimal manufacturing environments, which have been caused by spat
shortages limiting crop supply. These supply conditions are
expected to continue for the next two to three years."
"Following our initial announcement about the potential closure 10
days ago, employers across the Christchurch region have rallied in
support of staff with more than 30 Canterbury based companies
offering jobs. We're hosting an introduction day on Wednesday for
affected staff and prospective new employers to meet and discuss
alternative job opportunities."
Mr Kuntzsch said the response from employers in Christchurch is
very encouraging. "This is a difficult and uncertain time for our
staff and the support of other employers is very much
appreciated."
Sanford is also looking at all suitable vacancies across its
operations nationwide to offer to staff from the Christchurch
plant.
Costs associated with the closure are expected to be over
NZ$2 million and will include payments to staff of notice period,
redundancy and leave entitlements.
Mr Kuntzsch said that a decision about the future use of the site
would be made in due course.
Sanford is currently investing NZ$13 million into the SPATnz
Primary Growth Partnership, which over the medium to longer-term
will produce selectively bred mussels in a new Nelson hatchery.
Currently the industry is reliant on wild-caught spat to supply
mussel farms. "Wild spat supply is the single biggest constraint
on the mussel industry with current spat shortages limiting future
crop supply," said Volker Kuntzsch.
The Christchurch mussel processing facility became part of
Sanford's operations with the acquisition of Pacifica Seafoods in
2010.
Sanford Limited (NZX:SAN)-- http://www.sanford.co.nz/-- is a
New Zealand-based fishing company engaged to the harvesting,
farming, processing, storage and marketing of seafoods and
aquaculture products.
=====================
P H I L I P P I N E S
=====================
LEPANTO CONSOLIDATED: Aims to Cut Losses on Increased Output
------------------------------------------------------------
Krista Angela M. Montealegre at BusinessWorld Online reports that
Lepanto Consolidated Mining Co. is aiming to reduce losses this
year as it ramps up production from two new areas in its existing
mines.
BusinessWorld relates that in a speech delivered to stockholders
on April 19, Lepanto President and Chief Operating Officer Bryan
U. Yap said the company turned in a net loss of PHP177 million in
the first quarter due to "depressed gold prices." The miner posted
a net loss of PHP77.94 million in the same period last year, the
report says.
"We project by the third quarter, we will start generating
operational profits, but these may not be sufficient to compensate
for the losses of the earlier quarters," the report quotes Mr. Yap
as saying. "Therefore, we are projecting a yearend loss of PHP74
million, albeit with a positive cash flow of PHP117 million."
Lower production, aggravated by the decline in metal prices,
resulted in a wider net loss of PHP713 million last year compared
to PHP327 million in 2013, BusinessWorld discloses.
After installing a new management team in August 2014, Lepanto
embarked on a comprehensive drilling program that yielded two
promising areas: the "lower extensions of the Victoria veins below
the 700 level" and the "low-copper, high-gold vein-type ores,
similar to those of the Victoria, located adjacent to the old
Enargite orebodies," BusinessWorld relays.
Lepanto suspended its Enargite operations in 1996, says
BusinessWorld.
Mr. Yap said these new areas will start contributing to production
in the second semester, the report adds.
"With the contribution of these two additional sources in the
second half of the year, we are forecasting a production of 38,000
ounces of gold and 73,000 ounces of silver for 2015,"
Mr. Yap said, adding that production reached 4,098 ounces of gold
and 9,595 ounces of silver in the first quarter, relays
BusinessWorld.
Last year, Lepanto produced 24,617 ounces of gold and 44,431
ounces of silver.
The listed miner is operating the Victoria and Teresa gold
deposits in Benguet, the report adds.
About Lepanto Consolidated
Headquartered in Makati City, Lepanto Consolidated Mining
Company -- http://www.lepantomining.com/-- was incorporated on
September 8, 1986, and operated an enargite copper mine until
1997, after which, LC shifted to gold bullion production through
its Victoria Project. LC also operated a copper flotation plant
from August 2000 to December 2001, and restarted it in late
2006. LC sells its gold and silver bullion production to
Heraeus Ltd. (Hong Kong) while its copper concentrate production
are sold to various traders.
=================
S I N G A P O R E
=================
PACNET LIMITED: Moody's Upgrades Sr. Secured Note Ratings to Ba3
----------------------------------------------------------------
Moody's Investors Service upgraded Pacnet Limited's corporate
family and senior secured note ratings to Ba3 from B3 following
the completion of its acquisition by Telstra Corporation Limited
(A2 stable).
The rating outlook is stable.
This concludes the review for upgrade initiated on Dec. 23, 2014.
On April 16, Telstra announced it had completed its acquisition of
Pacnet. The acquisition, first announced on 23 December 2014, was
subject to a number of conditions, including approval from
Pacnet's financier and relevant regulators. Telstra has now
received all approvals, with the exception of a regulatory
approval in the United States for Pacnet's US assets. However,
Telstra expects to complete the acquisition of the US assets in
due course, and has indicated that the US approval does not impact
operations or the agreed purchase price.
Telstra also announced separately that it will redeem all of
Pacnet's 9% $350 Million senior secured notes due 2018. The
redemption will be completed on 16 May 2015.
"Telstra's acquisition will materially improve Pacnet's liquidity
position, which supports an upgrade in its fundamental credit
quality to B2. But Pacnet remains a small player in the
international submarine cable industry which remains characterized
by over capacity and declining pricing trends," says Annalisa Di
Chiara, a Moody's Vice President and Senior Analyst.
Once Pacnet redeems its outstanding notes and repays all of its
bank debt, the company will be debt-free compared to adjusted
leverage around 4.0x historically.
"Furthermore, we believe Telstra is both willing and able to
provide financial support to Pacnet in a distressed situation, and
have reflected this in a two-notch uplift to Pacnet's final rating
of Ba3," adds Di Chiara
The upgrade reflects Moody's view that the acquisition by Telstra
-- a significantly larger and financially stronger entity --
removes concerns over Pacnet's current fragile liquidity profile,
which had deteriorated in 2014 due to weak indefeasible rights of
use (IRU) sales.
The bond redemption will be made through a combination of an
equity clawback mechanism under the indenture for 35% of the
notes, and the 65% remaining notes will be redeemed at the
relevant make-whole premium.
To facilitate the equity clawback mechanism , Moody's understands
Telstra will inject cash equity into Pacnet. At the same time,
Telstra management has also confirmed it will repay all of
Pacnet's bank debt imminently.
Following the redemption of the notes, the associated bond ratings
will be withdrawn.
The outlook is stable, reflecting expectation that Pacnet's
operating performance and free cash flow generation will improve,
while its debt levels and interest costs will fall significantly.
Further upwards ratings pressure is unlikely in the near term,
given the current upgrade. However, any additional evidence of
tangible support from Telstra, such as a guarantee or a further
material equity injection, would be positive for the rating.
At a fundamental level, upward rating pressure could also
materialize if Pacnet (1) maintains leverage below 2.0x; (2)
demonstrates an ability to sustain annual IRU sales over $60
million; (3) grows it data center revenues meaningfully to around
35% of sales; and (4) maintains adequate liquidity.
Moody's would consider downgrading the rating if Pacnet's
fundamental performance or liquidity position deteriorates, such
that it fails to book at least $50 million of IRU sales per annum.
Moreover, a decline in the perceived level of support for Pacnet
from Telstra would be negative for the rating.
The principal methodology used in these ratings was Global
Communications Infrastructure Rating Methodology published in June
2011.
Pacnet, incorporated in Bermuda in 2006, wholly owns and operates
the EAC-C2C network, Asia's largest privately-owned submarine
cable infrastructure of 36,800km, as well as the EAC Pacific
network, which spans 9,620km from Japan to the US. The cables land
at 21 cable landing stations across Asia and the US. Pacnet
provides data connectivity solutions to major telecommunications
carriers, large multinational enterprises, and small- and medium-
sized enterprises in Asia Pacific with a need for multinational
IP-based solutions and connectivity.
====================
S O U T H K O R E A
====================
PANTECH CO: Seoul Court Aborts Sale
-----------------------------------
The Chosun Ilbo reports that the Seoul Central District Court has
aborted the sale of Pantech Co. after all three bidders were
deemed incapable of buying the company.
The report relates that the Court said after reviewing the letters
of intent from the bidders, it concluded that they all lacked the
capabilities.
It is the third attempt to be scrapped, the report says. The court
and creditors will continue to negotiate whether to hold yet
another round of bidding or liquidate the company, says Chosun
Ilbo.
About Pantech
Founded in 1991, Pantech Co. is a Korean manufacturer and seller
of mobile devices. Major shareholders include Qualcomm (11.96%),
Korea Development Bank (11.81%), and Samsung Electronics Co., Ltd
(10.03%).
Pantech filed for court receivership in Seoul, Korea in
August 2014 after its latest flagship smartphone failed to take
off.
The company filed for Chapter 15 bankruptcy protection at the U.S.
Bankruptcy Court in Atlanta (Bankr. N.D. Ga. Case No.: 14-70482)
on Oct. 16, 2014.
Joonwoo Lee, the Seoul-court appointed custodian, serving as
foreign representative in the U.S. case, is represented by
attorneys at Jacobs Legal, LLC, and H.C. Park & Associates.
The Debtor is estimated to have assets and debt ranging from
$100 million to $500 million.
PANTECH CO: Strives to Release New Smartphone Amid Uncertainties
----------------------------------------------------------------
Yonhap News Agency reports that Pantech Co. said on April 21 that
it will continue efforts to roll out a new smartphone although its
latest bid to be purchased by investors has ended in vain, casting
a dark cloud over its viability.
On April 20, a local court said three investors, one from the
U.S., have offered to buy the handset maker currently under court
protection but rejected the bids citing their weak financial
capabilities, according to the news agency.
Yonhap says the fate of Pantech will be determined through
negotiations with its creditors, with options, including another
round of bidding or liquidation.
According to the report, the first open bidding was held in
November but fell through as there were no prospective buyers. The
court then sought to sell Pantech in a private deal after a U.S.-
based consortium expressed interest in taking over the company
early this year but that ended in vain, Yonhap says.
"There are many disturbances among workers (due to the latest
bidding failure)," said an official from Pantech who added
employees are conducting their routine tasks, including preparing
for a new smartphone set to be released by August, the report
relays.
Yonhap says the release of the new smartphone, if things go
smoothly, will mark the first smartphone to be released by Pantech
since the Vega Pop-up Note introduced in November 2014.
However, it is still unclear whether Pantech's new smartphone will
really reach the market due to uncertainties over its business
normalization, industry watchers said.
Around half of its 1,500 workers are currently on leave with
reduced pay, waiting for the company to stand on its own feet,
Yonhap notes.
Yonhap recalls that Pantech started out as a small pager
manufacturer and after early success as a handset maker went under
in 2007 as its debt increased and an acquisition of a local
handset maker resulted in losses.
The company was rescued and put under a five-year debt
rescheduling program in 2007. But its financial footing weakened
again as it struggled with falling sales from increased
competition in the smartphone market dominated by giants like
Samsung Electronics Co. and Apple Inc., Yonhap says.
In December 2011, it ended the debt rescheduling program but a
continued drop in sales led the firm to file for court
receivership in August last year, the report adds.
About Pantech
Founded in 1991, Pantech Co. is a Korean manufacturer and seller
of mobile devices. Major shareholders include Qualcomm (11.96%),
Korea Development Bank (11.81%), and Samsung Electronics Co., Ltd
(10.03%).
Pantech filed for court receivership in Seoul, Korea in
August 2014 after its latest flagship smartphone failed to take
off.
The company filed for Chapter 15 bankruptcy protection at the U.S.
Bankruptcy Court in Atlanta (Bankr. N.D. Ga. Case No.: 14-70482)
on Oct. 16, 2014.
Joonwoo Lee, the Seoul-court appointed custodian, serving as
foreign representative in the U.S. case, is represented by
attorneys at Jacobs Legal, LLC, and H.C. Park & Associates.
The Debtor is estimated to have assets and debt ranging from
$100 million to $500 million.
*********
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
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*** End of Transmission ***