/raid1/www/Hosts/bankrupt/TCRAP_Public/150424.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, April 24, 2015, Vol. 18, No. 080
Headlines
A U S T R A L I A
ATLAS IRON: To Extend Suspension, Receivership Looms
BECTON PROPERTY: In Receivership After Not Getting Debt Extension
BENCHMARK DESIGNER: Administrators Seek Buyer for Assets
BRIMARCO PTY: Placed Under Administration
COFFS HARBOUR: First Creditors' Meeting Set For May 1
FORTESCUE METALS: S&P Assigns 'BB+' Rating to US$2.3BB Sr. Debt
FORTESCUE METALS: S&P Lowers CCR to 'BB'; Outlook Negative
MATERA CONSTRUCTION: Lender Rejects Rescue Plan
ORIGIN ENERGY: S&P Lowers Rating on Subordinated Debt to 'BB'
REELTIME MEDIA: ASIC Applies to Wind Up Firm and Five Units
UNITED DAIRY: Processing Plants Set to Close; 100 Jobs at Risk
UNITED DAIRY: Burra Foods Buys Gippsland Assets
* Traffic Management and Planning Company Up For Sale
C H I N A
YANZHOU COAL: S&P Lowers CCR to 'BB'; Outlook Stable
* CHINA: Tolerance for Defaults by Small SOEs to Rise, Fitch Says
I N D I A
AL MANAMA: CRISIL Reaffirms B+ Rating on INR120MM Cash Credit
APOORVA IT: CRISIL Assigns B+ Rating to INR25MM Cash Credit
ARROW CABLES: CRISIL Assigns B+ Rating to INR70MM Cash Credit
AURA HOTELS: CRISIL Reaffirms B+ Rating on INR350MM Term Loan
BEEPEE ENTERPRISE: CRISIL Reaffirms B+ Rating on INR35MM Loan
EMPIRE PHOTOVOLTAIC: CRISIL Reaffirms D Rating on INR127.5MM Loan
FOOD AND BIOTECH: CRISIL Reaffirms B- Rating on INR60MM Loan
INDIAN SUCROSE: CRISIL Ups Rating on INR1.5BB Loan to B+
KOPPAL GREEN: ICRA Reaffirms B+ Rating on INR14cr Cash Credit
KSM MILLS: CRISIL Assigns B+ Rating to INR39.2MM Bank Loan
MANGALORE SEA: ICRA Assigns B+ Rating to INR5cr Fund Based Loan
MARINE CHEMICALS: CRISIL Puts B+ Rating on INR20MM Bank Loan
MTV EXPORTS: CRISIL Assigns B Rating to INR35MM Bank Loan
NARMADA CEREAL: CRISIL Reaffirms B+ Rating on INR450MM Loan
NASHIK INSTITUTE: CRISIL Reaffirms D Rating on INR70MM Term Loan
NAYEK PAPER: CRISIL Lowers Rating on INR45MM Cash Loan to D
NESTER CORN: CRISIL Reaffirms D Rating on INR72MM LT Loan
PIONEER NF: CRISIL Reaffirms B Rating on INR50MM Cash Loan
PLASCARE INDUSTRIES: CRISIL Reaffirms D Rating on INR200MM Loan
PRASANNA TECHNOLOGIES: ICRA Ups Rating on INR5cr Loan to BB-
R P FOAM: CRISIL Ups Rating on INR75MM Overdraft Loan to B+
RATNAGIRI CERAMICS: ICRA Reaffirms B+ Rating on INR7.22cr LOC
S.T.G. CONCRETE: ICRA Assigns 'B' Rating to INR6.3cr LT Loan
SANDEEP TRADING: CRISIL Suspends D Rating on INR200MM Cash Loan
SANKALP COTTON: ICRA Assigns B+ Rating to INR5cr Cash Credit
SARTHAK ENTERPRISE: CRISIL Puts B+ Rating on INR27.5MM Bank Loan
SHANKAR SAW: CRISIL Suspends D Rating on INR49.5MM LOC
SIDDHARTH DEVELOPERS: ICRA Cuts Rating on INR28cr Cash Loan to B+
SPARKLE MULTIPURPOSE: CRISIL Suspends D Rating on INR66MM Loan
SRI RAJU: ICRA Reaffirms B+ Rating on INR5cr Long Term Loan
SRI RAVICHANDRA: CRISIL Reaffirms B+ Rating on INR240MM Loan
SRINIDHI REAL: ICRA Assigns B Rating to INR8cr Unallocated Loan
STRETCH BANDS: CRISIL Ups Rating on INR45MM Cash Loan to B
SUPREME ELECTROCAST: CRISIL Suspends D Rating on INR155MM Loan
SUYASH POLYMER: ICRA Reaffirms B+ Rating on INR4.6cr Cash Credit
TATA POWER: S&P Revises Outlook to Stable & Affirms 'B+' CCR
TOOFAN STEEL: CRISIL Suspends D Rating on INR212.2MM LT Loan
UMA RANI: CRISIL Suspends D Rating on INR37.5MM Term Loan
URAL INDIA: CRISIL Suspends D Rating on INR175MM Term Loan
V-CHEM: ICRA Lowers Rating on INR5cr Cash Credit to B
V3 KNITTING: CRISIL Assigns B Rating to INR57.5MM Term Loan
VEDIK ISPAT: CRISIL Reaffirms B+ Rating on INR380MM Term Loan
VERA INDUSTRIES: CRISIL Places B Rating on INR75MM Cash Credit
VERONICA MARINE: CRISIL Ups Rating on INR8.9MM LT Loan to B
VICTORA AUTO: CRISIL Suspends B+ Rating on INR100MM Cash Loan
VIKROMAITIC STEELS: CRISIL Suspends D Rating on INR60MM Loan
N E W Z E A L A N D
KIWI FORESTRY: Truckers Mull Filing Legal Suit Over Collapse
S R I L A N K A
SRI LANKA: Fitch Affirms 'BB-' IDR; Outlook Stable
X X X X X X X X
* Moody's Says Most High-Yield Firms Can Stand US$ Appreciation
* Large Companies with Insolvent Balance Sheets
- - - - -
=================
A U S T R A L I A
=================
ATLAS IRON: To Extend Suspension, Receivership Looms
-----------------------------------------------------
Sarah Thompson, Anthony Macdonald and Jake Mitchell at Financial
Review report that embattled iron ore junior Atlas Iron was
expected to extend its suspension from trading last April 21 but
is likely to be in receivership by the end of the month, industry
sources told Street Talk.
The miner suspended its shares from trading on April 7 to give it
the breathing space to undertake a review of its operations,
financial outlook, asset sale opportunities and capital structure
"in light of the rapid fall in the iron ore price," according to
Financial Review.
The report notes that that suspension from trading was expected to
be extended last April 21 as the company continues its review and
works desperately to settle agreements with contractors.
Sources said the majority of the company's debt-holders were in
favor of it entering receivership, an outcome which is likely to
be realized by the end of the month, the report notes.
Ferrier Hodgson's Perth office is believed to be in line to manage
the receivership, as previously noted by Street Talk, the report
relays.
Atlas's slide into suspension, which has startled an industry
frantically battling to lower costs, came after the iron ore price
fell to a fresh overnight low of $US46.70 a ton, the report notes.
Less than a week later, the miner announced it would suspend
operations at its three mines in order to conserve cash. The iron
ore price continues to hover at about $US50 a ton and it is
understood the company's debt-holders are becoming increasingly
nervous, the report discloses.
Atlas is saddled with US$327 million of gross debt, the majority
of which is held by bondholders in a fully drawn Term Loan B debt
facility of about US$270 million, which matures in December, 2017,
the report relays.
The report says that it remains unclear what would trigger
receivership as Atlas insists it is not insolvent and had not
defaulted on its facility.
BECTON PROPERTY: In Receivership After Not Getting Debt Extension
-----------------------------------------------------------------
Business Spectator reports that Becton Property Group Ltd has been
placed in receivership, after the group's lending syndicate GSFIG
refused to grant Becton a further extension on its debt.
In a statement to the Australian Securities Exchange, Becton said
that despite extensive negotiations, it has received notice from
its debtors that receivers have been appointed to Becton and all
of its subsidiaries, according Business Spectator.
"The appointment of receivers and managers follows protracted
discussions with GSFIG, which elected not to provide the waivers
and support requested by BPGL in respect of its debt facilities,
which were necessary to ensure the future and ongoing solvency of
Becton," the group said, the report notes.
"The board and management submitted detailed restructuring
proposals to GSFIG but has been advised that GSFIG is not prepared
to support these restructuring proposals," the group added, the
report relays.
The report notes that Mr. Becton said that as a result, its board
has been forced to declare default on its debt.
"In the absence of any transaction which could achieve value for
shareholders, the Board considers that its actions have maximized
the expected outcome for other stakeholders of the group,
including employees and creditors," the group said, the report
relays.
GSFIG is a syndicate made up of Goldman Sachs and Fortress
Investment Group.
Receiver Mark Korda said the move mainly affected the ownership
and control of Becton, not its business operations, the report
notes.
"It will be business as usual in the development, construction and
retirement operations," Mr. Korda said in a statement obtained by
the news agency.
"The entity that employs Becton staff is part of the headstock and
we can confirm that all salaries will continue to be paid and all
accrued employee entitlements will be paid as and when they fall
due," Mr. Korda added.
The report relays that Mr. Korda said settlements on the sale of
homes and retirement villas will continue as planned, and deposits
for properties will be preserved.
Creditors, including contractors, would continue to be paid, the
report notes.
Becton Property Trust's securities have been suspended from
trading on the Australian Securities Exchange.
BENCHMARK DESIGNER: Administrators Seek Buyer for Assets
--------------------------------------------------------
Cliff Sanderson at Dissolve.com.au reports that Hall Chadwick, the
administrators of Benchmark Designer Homes Pty Ltd, is seeking
expressions of interest for the sale of the company and novation
of residential projects.
The assets of the business include equipment and plant, office and
IT equipment, trading name and contact number as well as client
list, the report says.
Benchmark Designer Homes operates in Wangara, Perth constructing
residential homes in the metropolitan area of Perth. The company
entered administration on April 15, 2015 with Richard Albarran and
Cameron Shaw being appointed as administrators, Dissolve.com.au
discloses.
BRIMARCO PTY: Placed Under Administration
-----------------------------------------
Cliff Sanderson at Dissolve.com.au reports that Brimarco Pty Ltd
has been placed into administration. The business has stopped
trading, the report says.
Dissolve.com.au relates that workers have been assured that the
focus of the administration will be to secure their jobs.
Brimarco has been operating for nearly forty years building custom
coaches such as rigs and booze buses for companies such as
Specialized and Mercedes-Benz. It employs 12 staff.
COFFS HARBOUR: First Creditors' Meeting Set For May 1
-----------------------------------------------------
Andrew Sallway and Said Jahani of Grant Thornton were appointed as
administrators of Coffs Harbour Deep Sea Fishing Club Ltd on April
21, 2015.
A first meeting of the creditors of the Company will be held at
Coffs Harbour Deep Sea Fishing Club, Jordan Esplanade, in Coffs
Harbour, New South Wales, on May 1, 2015, at 9:00 a.m.
FORTESCUE METALS: S&P Assigns 'BB+' Rating to US$2.3BB Sr. Debt
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it had assigned its
'BB+' rating to Fortescue Metals Group Ltd.'s new US$2.3 billion,
senior secured, debt issue. At the same time, S&P lowered the
ratings on the company's senior secured debt to 'BB+' from 'BBB-',
and on the senior unsecured debt to 'B+' from 'BB-'. The recovery
rating on the secured debt has also been lowered to '2L' from '1',
and on the unsecured debt to '6' from '5L'.
The downgrades on Fortescue's debt issue ratings follow the
company's refinancing of some of its senior unsecured debt with
new US$2.3 billion senior secured notes. Under the refinancing
proposal, Fortescue will use the proceeds from the new senior
secured notes to repay existing unsecured debt facilities (the
2017 and 2018 bonds plus some of the 2019 bonds). Following this
transaction, the company's secured debt will increase to US$7.2
billion from US$4.9 billion.
The refinancing will not change the quantum of the company's debt.
However, S&P considers that the increased proportion of secured
debt is likely to materially reduce the recovery prospects for
existing secured and unsecured debt providers. This has led to
S&P's downgrades on the issue and recovery ratings on the
company's senior secured and unsecured debt. S&P now projects a
recovery for the senior secured notes of 70%-90% in a hypothetical
scenario. At the same time, S&P expects the recovery prospects
for the group's unsecured debt to be minimal.
Since the total debt will remain unchanged following the proposed
debt refinancing, the 'BB' credit rating on Fortescue remains
unchanged. Furthermore, the refinancing transaction will extend
the group's debt-maturity profile and reduce refinancing risk over
the next couple of years, with no sizable debt maturities falling
due until 2019.
FORTESCUE METALS: S&P Lowers CCR to 'BB'; Outlook Negative
----------------------------------------------------------
Standard & Poor's Ratings Services said that it had lowered its
corporate credit rating on Fortescue Metals Group Ltd. to 'BB'
from 'BB+'. The outlook is negative.
At the same time, S&P lowered the ratings on the company's senior
secured debt to 'BBB-', from 'BBB', and the senior unsecured
rating to 'BB-' from 'BB'. The recovery rating remains unchanged
at '1' for the senior secured debt rating, and '5L' for the senior
unsecured debt. S&P has also removed all ratings from CreditWatch
with negative implications.
"The downgrades reflect our expectation that Fortescue's financial
risk profile will weaken significantly in the next two years due
to low iron ore prices," said Standard & Poor's credit analyst May
Zhong.
S&P has revised its assessment of Fortescue's financial risk
profile to "aggressive" from "significant" because S&P expects the
company's adjusted debt to EBITDA to approach 4.5x and funds from
operations (FFO) to debt to fall to about 15% in the years ending
June 30, 2015 and 2016 under S&P's base-case iron ore price
assumptions. Nonetheless, S&P expects reduced freight and
production costs to mitigate the impact of lower prices.
More importantly, the company's ability to reduce costs is key to
generating a positive cash margin amid lower iron ore prices and
to achieving credit metrics in line with the 'BB' rating. The
company has embarked on a number of initiatives to reduce its C1
production costs materially. In addition, the cost of fuel for
vessels that transport iron ore to final destination has dropped
materially recently and the Australian dollar has depreciated 14%
in the past six months. S&P expects Fortescue's C1 costs to
reduce to US$18 per wet metric ton and freight costs to be about
US$5 per ton in fiscal 2016. Based on these cost guidance, S&P
expects Fortescue's all-in breakeven cost (including interest
expense and sustaining capital expenditure) on a 62% Platts
(delivered to China) price to fall to about US$40 per dry metric
ton in fiscal 2016. Nonetheless, if Fortescue fails to achieve
this cost guidance, its credit metrics would be at risk of further
downward revision to the "highly leveraged" category.
S&P's base case also incorporates these assumptions:
-- AUD/USD exchange rates of US$0.75 for the rest of calendar
year 2015, and in 2016.
-- Average benchmark iron ore prices of US$45 per ton for the
rest of calendar year 2015, US$50 in 2016, and US$55 in
2017 (Platts 62% iron content, delivered to China);
-- C1 cost improves to US$18 per wet metric ton for fiscal
2016;
-- Total iron ore production of 160 million-165 million tons
in fiscal year 2015 and about 165 million tons in fiscal
2016;
-- Average iron ore content for its production of 58%, with a
moisture content of about 9%;
-- Fortescue's average realized price will be about 85% of
benchmark iron ore prices (62% iron content, delivered to
China);
-- S&P expects no dividends will be distributed when iron ore
prices stay low; and
-- Capital expenditure of US$650 million in fiscal 2015.
"We continue to assess Fortescue's business risk profile as
"satisfactory," based on its large-scale iron ore production,
competitive cost position, and long reserve life. Fortescue's
expansion has improved its asset diversity and operational
flexibility, with five mines from two hubs in the Pilbara region
in Western Australia. It has also solidified its position as the
fourth-largest iron ore producer globally. In addition, its
proximity to the Asian market gives it a geographic advantage over
its European, African, and South American competitors because of
lower shipping costs. Tempering these strengths is the company's
lack of product and customer diversity. Almost all of Fortescue's
production is sold to the Chinese steel market, making it more
sensitive to a decline in China's iron ore demand," S&P said.
Ms. Zhong added: "The negative outlook reflects the challenging
market conditions facing iron ore players. It also reflects the
risks that Fortescue's credit metrics could fall below our current
expectation if there is any misstep in reducing its cash
production cost or there is any unfavorable foreign exchange
movement."
S&P could lower the rating if Fortescue's FFO to debt falls to
about 12% or debt to EBITDA approaches 5x. The scenario could
occur if the pace and magnitude of the cost reduction is less than
our expectation; or benchmark iron ore prices stay below US$45 per
ton for a prolonged period (assuming an 85% realization rate for
Fortescue's products and the AUD/USD exchange rate averages
US$0.75).
S&P may revise the outlook to stable if the company successfully
arrests the downward trend in its EBITDA margins and credit
metrics, and restores some buffer in the 'BB' rating, either due
to deeper cost cuts or more positive market conditions.
MATERA CONSTRUCTION: Lender Rejects Rescue Plan
-----------------------------------------------
Peter Williams at The West Australian reports that the biggest
creditor of Phil Matera's collapsed construction company has
rejected the terms of a rescue plan proposed by the former West
Coast Eagles star.
Mr. Matera has been trying to persuade lender Indigenous Business
Australia to change its mind before a creditors' meeting next
week, according to administrator Grant Thornton, the report notes.
But the administrator has recommended creditors reject the deal
and liquidate Riverline Enterprises, trading as Matera
Construction, even if IBA comes on board, according to The West
Australian.
The report relates that the company was put into administration
last month owing about AU$7 million following a payment dispute at
the Elizabeth Quay project on Perth's waterfront. Riverline is
suing client Leighton Contractors for at least AU$4.1 million, the
report notes.
IBA loaned Riverline AU$1.95 million to help finance the contract,
the report discloses. A report to creditors said the Federal
Government organization was owed $1.45 million when the
administrator took over.
Grant Thornton estimated the business had been trading while
insolvent since August 2014.
Most of Riverline's unsecured creditors -- who are owed about AU$4
million -- were subcontractors at the waterfront project, the
report notes.
The report discloses that Mr. Matera's proposal involves
transferring Riverline's debts to a creditors' trust, and requires
the release of IBA's security.
Grant Thornton said IBA had advised Mr. Matera it was not prepared
to do that, the report relays.
The size of a payout to unsecured creditors would depend on the
outcome of the litigation-funded suit against Leighton, the report
notes.
"It's questionable whether the rescue package as formulated
provides a significant benefit to all creditors," the report
quoted Grant Thornton managing partner Matthew Donnelly as saying.
The report said Riverline suffered a AU$1.2 million loss in fiscal
2014, and AU$3.4 million by March 13, the report relays.
The report notes that Mr. Matera had sold his house and told the
administrator he would pay net proceeds of about AU$750,000 to IBA
under a personal guarantee connected to the loan, the report
discloses.
ORIGIN ENERGY: S&P Lowers Rating on Subordinated Debt to 'BB'
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it has lowered the
corporate credit rating on Origin Energy Ltd. and the company's
senior unsecured issue ratings, as well as Origin Energy Finance's
senior unsecured debt ratings, to 'BBB-' from 'BBB'. At the same
time, S&P lowered the short-term rating on Origin Energy to 'A-3'
from 'A-2' and the rating on Origin Energy Finance's and Origin
Energy Contact Finance No.2's subordinated debt issue ratings to
'BB' from 'BB+'. The outlook on the long-term rating is stable.
"The downgrade to 'BBB-' primarily reflects our view that Origin
Energy's leverage will remain high for longer than we expected
because of recent heavy investments. We expect its key financial
ratio of debt-to-EBITDA will remain at more than 3x until at least
the year ending June 30, 2018, compared to our previous
expectation of a recovery in fiscal 2017," Standard & Poor's
credit analyst Thomas Jacquot said. "Moreover, in our opinion the
company has not taken any positive action to support its balance
sheet despite the weakening in its operating environment mainly
due to lower oil prices, while its capital commitment to the
Australia Pacific Liquefied Natural Gas (APLNG) project remains
high."
Origin Energy's continued heavy capital investment, primarily in
the form of capital contribution for the APLNG project, which
relies primarily on debt funding given the company's commitment to
maintaining stable dividends, will result in a high leverage for
longer than S&P had previously anticipated. Furthermore, the
lower oil price, the fact that the full run rate of the APLNG cash
flows will not occur until fiscal 2017, and ongoing capital
expenditure at its other businesses will also stretch the
company's credit metrics. As such, any material deleveraging that
had underpinned the previous 'BBB' rating is now likely to occur
around at least fiscal 2018, instead of S&P's previous expectation
of around fiscal 2017.
In the near term, S&P continues to expect the company's debt-to-
EBITDA ratio will remain outside the bounds for the 'BBB-' rating,
in part because S&P's forecasts incorporate Origin Energy's
explicit guarantee to support APLNG. Nevertheless, S&P continues
to anticipate a recovery in financial metrics as the two LNG
trains are commissioned and the guarantee falls away.
Accordingly, S&P estimates that the company's debt-to-EBITDA ratio
will remain about 5x in fiscal 2016 before recovering to the 3.5x-
to-3.75x range in fiscal 2017. S&P's forecasts also factor in
benefits from the company's near-term investment in the upstream
segment, as well as the start of large gas sales contracts.
In the interim, while S&P forecasts increased contribution from
its gas business driven by increasing gas prices and sales to the
other LNG projects, S&P expects Origin Energy's electricity
segment to show only limited earnings growth. This is because the
retail market remains subject to weak volumes and intense
competition squeezing margins, despite prospects for stable
wholesale prices from the current oversupply of generation.
Therefore, absent a materially positive movement in oil prices or
significantly positive capital management measures, S&P do not
forecast Origin Energy's debt-to-EBITDA to drop below 3x until
fiscal 2018 at the earliest. Moreover, S&P believes that there
remains some downside risk to this level being achieved in that
year, given that S&P's oil price forecasts, which are a key input
for APLNG earnings, remain above current market prices.
Mr. Jacquot added: "The stable outlook reflects our expectation
that the APLNG project will be fully completed in the second half
of fiscal 2016, with no material increase in Origin's capital
contributions beyond current commitments."
The stable outlook further reflects S&P's expectation of a stable
operating environment for Origin Energy's energy market segment,
enabling modest underlying growth over the medium term (excluding
the increase generated by gas sales to other LNG projects in
Queensland). The outlook also reflects S&P's expectation that
Origin Energy's debt-to-EBITDA ratio will reduce to the mid 3x
level by fiscal 2017, based on our forecast of dividends from the
APLNG project post completion.
S&P would lower the rating if it believed the company's debt to
EBITDA would not reduce to sustainably below 4x from fiscal 2017.
This could occur if:
-- Earnings in the core energy markets segment materially
underperform;
-- Oil prices remain weak, resulting in dividends from APLNG
being substantially below S&P's expectations; or
-- Origin Energy were to inject significant additional capital
in APLNG, which could lead S&P to reconsider APLNG's scope
of consolidation despite the construction guarantee falling
away.
Although S&P considers an upgrade as unlikely in the next 12-to-18
months, upward rating pressure would be reliant on Origin being
committed to lowering and maintaining its debt to EBITDA ratio
below 3x, together with continued solid operating performance from
the group's core energy market businesses.
REELTIME MEDIA: ASIC Applies to Wind Up Firm and Five Units
-----------------------------------------------------------
The Australian Securities and Investments Commission has applied
to Supreme Court of New South Wales to wind up publicly-listed
company, Reeltime Media Limited and the following wholly owned
subsidiary companies on just and equitable grounds:
* DE Digital Pty Ltd;
* DE Personnel Pty Ltd;
* Ocean Feather Pty Ltd;
* Paricia Pty Ltd; and
* Zaramamma Pty Ltd.
The application was made following ASIC's investigation into
allegations of corporate governance failures by RMA over a number
of years.
Subsequent to the filing of ASIC's winding up application, RMA and
the Subsidiaries appointed David Ross and Shanon Thomson of Hall
Chadwick as Administrators on April 21, 2015.
ASIC's application to wind up RMA and the Subsidiaries continues
and has been listed in the Supreme Court of New South Wales at
Sydney on May 4, 2015.
About Reeltime Media
Based in Australia, Reeltime Media Limited (ASX:RMA) --
http://www.reeltimemedia.com.au/-- is a digital services, media
and advertising and Information Technology (IT) company. It
provides online applications, marketing solutions, online and
offline media, IT solutions and training and consulting services
to Small and medium-sized enterprises (SME), corporate and
Government clients. It operates through the following divisions:
Digital Services Division, Media & Advertising Division, IT
Services Division and Training Division. Digital Services Division
provides Website design and development, display advertising,
social media management and email marketing services, among
others. Media & Advertising Division includes Television, Radio,
Printing and Branding. IT Services Division includes MANAGED IT
services, software solutions and cloud solutions. Training
Division includes digital marketing workshops, online training,
corporate training and consulting services.
UNITED DAIRY: Processing Plants Set to Close; 100 Jobs at Risk
--------------------------------------------------------------
Carl Curtain and Danielle Grindlay at ABC Rural reports that about
100 jobs look set to be lost at Murray Bridge and Jervois in South
Australia, with United Dairy Power (UDP) moving into
administration.
ABC Rural says the company, which is a broker and processor of
milk in Victoria and SA, had been continuing normal operations
despite its parent company Five Star Foods falling under receiver
management last December.
But with processor Murray Goulburn announcing it had purchased
equipment from the UDP plant at Murray Bridge, closure of current
processing will take place this week, the report notes.
According to the report, SA Dairy Farmers Association (SADA)
president David Basham said he had spoken directly with the
company, which indicated the imminent ceasing of operations.
"They've told me that as of April 17 they will no longer be
collecting milk from farmers," the report quotes Mr. Basham as
saying. "They also wanted to make sure that I got across to the
farmers that they will definitely be paid for all the milk they've
supplied up to that point . . . as of April 17, we have to find a
new home for those farmers."
ABC Rural relates that Mr. Basham said farmers had hoped the UDP
plants could have been sold as a going concern, but that will not
happen now the equipment had been sold separately.
"There's not much left in the business now that would enable them
to operate," he said, the report relays.
It's remains unclear what will become of the 100 workers employed
at the two processing sites in South Australia, ABC Rural notes.
ABC Rural says SADA will now negotiate with other processors on
behalf of dairy farmers to find new buyers for milk.
UDP receiver PPB Advisory has released a statement to ABC Rural in
response to questions posed about the future of the processing
plants.
"The manufacturing facilities in Murray Bridge and Jervois have
been unable to be sold to date," it read, notes the report.
"Consequently, Rod Slattery and Greg Quinn of PPB Advisory have
been appointed receivers and managers over UDP's operating
entities to facilitate the orderly wind-down of the respective
processing facilities.
"This follows the appointment of Voluntary Administrators by the
director of UDP.
"PPB Advisory's priority is to work with all staff throughout this
process.
"Farmers impacted by the closure of facilities will be paid in
full, and PPB Advisory will also be assisting those affected to
establish new milk supply agreements with alternative dairy
processors in an orderly manner.
"There is currently strong demand for milk supply from other local
processors, and it is anticipated that this positive environment
will enable affected dairy farmers to find alternative
distribution channels for their milk."
UNITED DAIRY: Burra Foods Buys Gippsland Assets
-----------------------------------------------
Sue Neales and Damon Kitney at The Australian report that two of
Australia's most progressive dairy companies have announced their
separate purchases of parts of the financially distressed United
Dairy Power empire.
The report says Victoria's Burra Foods has bought the Gippsland
assets of United Dairy Power and assured local dairy farmers of
their continuing milk supply contracts.
In turn, Australia's largest dairy company, Murray Goulburn, has
acquired UDP's leading cheese brand, Caboolture Cheese, as well as
some of its processing equipment, the Australian relates.
According to the report, the sale of UDP's assets follow the
appointment of receivers to UDP's parent company, Five Star United
Foods, late last year after its bankers, Rabobank, lost confidence
in the company and its Hong Kong owners, and removed its board.
Five Star United Foods, owned by Hong Kong businessmen William Hui
and Johnny Chan, had bought UDP from its founder Tony Esposito for
AUD70 million nine months earlier, with plans to expand into the
milk powder export business, the report notes.
The Australian notes that the receivership was unusual in that its
cheese and butter processing company, UDP, and its subsidiaries
continued to trade while receivers tried to stabilise the
business.
UDP collects 200 million litres of milk, equal to 4 per cent of
Australia's annual production, from farmers in SA and Victoria,
which its uses to produce cheddar cheese, butter, whey and
mozzarella cheese under its well-known Caboolture brand.
Advisory firm PPB was appointed receivers and managers of Five
Star United Food (Aust) and has handled the sale of its assets.
* Traffic Management and Planning Company Up For Sale
-----------------------------------------------------
Cliff Sanderson at Dissolve.com.au reports that urgent expressions
of interest are being sought for the purchase of the assets and
business of a traffic management and planning firm which operates
in Melbourne. The report relates that the sale`s details include
circa AUD6 million annual turnover, fleet that includes 16s light
and heavy vehicles as well as established customer base.
The administrators of the business Hall Chadwick reserves the
right to withdraw the business from sale without notice,
Dissolve.com.au relates.
=========
C H I N A
=========
YANZHOU COAL: S&P Lowers CCR to 'BB'; Outlook Stable
----------------------------------------------------
Standard & Poor's Ratings Services said that it had lowered its
long-term corporate credit rating on China-based Yanzhou Coal
Mining Co. Ltd. to 'BB' from 'BB+'. The outlook is stable. S&P
also lowered the long-term issue rating on the company's
guaranteed senior unsecured notes to 'BB' from 'BB+'. At the same
time, S&P lowered its Greater China regional scale rating on
Yanzhou and the notes to 'cnBBB-' from 'cnBBB'.
"We lowered the rating on Yanzhou because we expect the company's
cash flow leverage to deteriorate over the next 12-18 months due
to low coal prices," said Standard & Poor's credit analyst Jian
Cheng.
Given the challenging industry conditions and the company's high
capital spending, S&P also lowered its assessment of the company's
financial risk profile to "highly leveraged" from "aggressive."
S&P's assessments of the "fair" business risk profile and
"moderately high" likelihood of extraordinary government support
remain unchanged.
"We expect the average coal price to drop another 5%-10% in 2015
and remain low over the next 12-18 months because of: (1) weaker
demand due to the economic slowdown; (2) coal oversupply; and (3)
reduced on-grid wholesale prices for thermal electricity. As a
result, we anticipate that Yanzhou's gross margin will drop to
about 29% in 2015 from about 31% in 2014 because of sliding coal
prices. Nevertheless, various factors should temper the price
declines, such as the seasonality of coal price movements, the
recent reform of resource taxes, and the removal of the local
government's miscellaneous charges. In addition, the regulator
has reined in production levels, inefficient producers may be
consolidated, and some coal demand may be inelastic," S&P said.
S&P expects Yanzhou to take further steps to rein in its costs to
temper the effects of low prices, although S&P believes there is
no much room left. Under S&P's existing coal price assumption, it
do not expect Yanzhou to generate enough operating cash flow to
cover its capital expenditure. Therefore Yanzhou has to incur
additional debt to meet its growth appetite.
S&P believes Yanzhou will benefit from ongoing government support
and maintain its good access to the capital market and banks due
to its status as a major state-owned enterprise (SOE) in Shangdong
province. S&P also assess Yanzhou's business risk profile as
being at the higher end of the "fair" category.
"The stable outlook on Yanzhou reflects the company's large cash
balance and adequate liquidity, which could counter the expected
prolonged industry downturn," said Mr. Cheng. The outlook also
reflects S&P's expectation that coal prices will remain low for
next 12-18 months, at least.
S&P may lower the rating if Yanzhou spends larger capital
expenditure than S&P's forecast, coal prices drop sharply from the
existing level, and the company's operations cannot generate break
even, such that its EBITDA interest coverage drops to below 1x and
remains at that level for an extended period. S&P believes this
is a remote case over the next 12 months.
S&P is unlikely to raise the rating over the next 12 months, given
Yanzhou's cash flow generation is associated with low coal prices.
S&P will raise the rating if industry conditions improve or
Yanzhou strengthens its leverage such that its ratio of funds from
operations to debt is more than 12% on a sustainable basis.
* CHINA: Tolerance for Defaults by Small SOEs to Rise, Fitch Says
-----------------------------------------------------------------
Fitch Ratings says that large state-owned enterprises (SOEs) could
start to be more tolerant of failures of their non-strategic
subsidiaries and/or affiliates, as the Chinese government's
financial reform plan progresses.
Defaults by non-strategic, commercially unviable SOEs can help to
instil greater market discipline and reallocate capital more
efficiently within the economy. The agency expects defaults by
SOEs to become less uncommon in China's corporate bond market, but
still sporadic and isolated, as controlling systemic risk remains
a top priority for the Chinese government while the economy
remains soft.
Baoding Tianwei Group Co. Ltd.'s (Tianwei) failure to meet a bond
coupon payment due on 21 April indicates that SOEs are no longer
shielded from credit events in China's onshore bond market.
Baoding Tianwei is a Chinese electric equipment and solar
manufacturer and is a wholly owned subsidiary of China South
Industries Group Corporation, one of China's largest military
defence companies and 100% owned by the State-owned Assets
Supervision and Administration Commission (SASAC).
China's corporate bond market has not been immune to credit events
and some degree of credit spread differentiation has already
emerged since the occurrence of a few credit events over the last
12 to 18 months, including those from Shanghai Chaori Solar Energy
Science and Technology Co. Ltd. and Cloud Live Technology Group Co
Ltd. However, SOEs have still broadly benefited from a wide
perception of implicit state support, which allows them to obtain
lower cost debt funding than privately owned companies.
Although Tianwei's post-default plan remains unclear (and some
form of bail-out could still be a possibility), Fitch believes
that a default from a relatively small, non-listed state-owned
entity, which is only indirectly held by the SASAC and operates in
a fully market-driven sector with little synergy and low strategic
importance to its larger and stronger SOE parent, fits the Chinese
government's intention to allow isolated cases of financial risk
and give market forces more say in the economy. In fact, Fitch
expects large SOEs to start stripping off non-core, less strategic
assets, particularly those operating in sectors suffering from
structural downturns and capacity surpluses.
Fitch expects that more SOEs could be allowed to default, to
instil credit discipline and facilitate capital reallocation in
order to serve the government's reform agenda. However, state
authorities could still intervene in varying forms on a selective
basis, as they gauge the impact of each default case on the debt
capital market and the broader economy, particularly if there is a
bigger chance of heightened market volatility that potentially
hampers the access to liquidity and funding by corporates, which
are to be promoted and supported during the reform. The
government is likely to maintain a cautious stance on defaults of
large monetary values, those that involve large corporates in
strategic sectors, and/or those that hurt a large number of retail
investors in the near term.
=========
I N D I A
=========
AL MANAMA: CRISIL Reaffirms B+ Rating on INR120MM Cash Credit
-------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Al Manama
Wedding Center (Al Manama) continues to reflect its small scale of
operations in the intensely competitive and highly fragmented
retail industry and below-average financial risk profile marked by
small net worth and high gearing. These rating weaknesses are
partially offset by the promoters' extensive experience in the
retail industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 120 CRISIL B+/Stable (Reaffirmed)
Long Term Loan 40 CRISIL B+/Stable (Reaffirmed)
Rupee Term Loan 40 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that Al Manama will continue to benefit from the
promoters' extensive industry experience, over the medium term.
The outlook may be revised to 'Positive' if the firm reports a
sustainable increase in its revenue and profitability and improves
its capital structure. Conversely, the outlook may be revised to
'Negative' if Al Manama's financial risk profile weakens with
significantly low cash accruals, or deterioration in its working
capital cycle, or large debt-funded capital expenditure.
Established in 2012, Al Manama runs a single retail textile and
cosmetics show room in Kollam and Karunagappally (Kerala). The
firm is promoted by Mr. Abdul Aziz and his family.
APOORVA IT: CRISIL Assigns B+ Rating to INR25MM Cash Credit
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings on
the bank facilities of Apoorva IT Solutions (AIS).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Letter of Credit 35 CRISIL A4
Bank Guarantee 25 CRISIL A4
Cash Credit 25 CRISIL B+/Stable
CRISIL's ratings on the bank facilities of AIS reflect its small
scale of operations, large working capital requirements, and its
exposure to intense competition in the information technology (IT)
hardware distribution business. The ratings of the firm are also
constrained on account of its below-average financial risk
profile, marked by its small net worth, high total outside
liabilities to tangible net worth ratio, and average debt
protection metrics. These rating weaknesses are partially offset
by the extensive experience of AIS's promoters in the IT industry.
Outlook: Stable
CRISIL believes that AIS will continue to benefit over the medium
term from its promoter's extensive industry experience. The
outlook may be revised to 'Positive' if there is a substantial and
sustained increase in the firm's scale of operations and
profitability margins, or if there is sustained improvement in its
working capital cycle. Conversely, the outlook may be revised to
'Negative' in case of a steep decline in AIS's profitability
margins, or significant deterioration in its capital structure
caused most likely by a stretch in its working capital cycle.
AIS was set up in 1998 as a partnership firm by Mr. Muralidhar
Reddy and his family members. The firm is an IT hardware
distributor of renowned brands and also provides maintenance
services. AIS also supplies commercial & rugged hardware like
laptop, server and UPS to various departments of the Ministry of
Defence and for defence establishments. It is based in Hyderabad
(Telangana).
ARROW CABLES: CRISIL Assigns B+ Rating to INR70MM Cash Credit
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Arrow Cables Limited (ACL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 70 CRISIL A4
Cash Credit 70 CRISIL B+/Stable
The ratings reflect the small scale and working capital intensive
nature of operations in the highly competitive power cable
industry. These rating weaknesses are partially offset by the
extensive experience of the promoters in the power cable industry
and the above-average financial risk profile of the company marked
by healthy gearing and moderate debt protection metrics, albeit
constrained by a modest net worth.
Outlook: Stable
CRISIL believes that ACL will continue to benefit over the medium
term from the extensive industry experience of its promoters. The
outlook may be revised to 'Positive' in case of higher than
expected top-line and margins leading to improvement in the
business risk profile. Conversely, the outlook may be revised to
'Negative' in case the company's profitability or revenues
decline, resulting in lower-than-expected cash accruals or stretch
in working capital cycle leading to deterioration of its financial
risk profile.
Established in 1996, Arrow Cables Limited (ACL) manufactures power
conductors and power cables. The company is promoted by
Mr.K.S.Varma.
For 2013-14 (refers to the financial year April 1 to March 31),
ACL reported a profit after tax (PAT) of INR1.48million on a net
sales of INR428 million against a PAT of INR5.7million against a
net sales of INR490 million for 2012-13.
AURA HOTELS: CRISIL Reaffirms B+ Rating on INR350MM Term Loan
-------------------------------------------------------------
CRISIL's rating on the bank facilities of Aura Hotels and Resorts
Pvt Ltd (Aura) continues to reflect Aura's exposure to risks
related to implementation and stabilisation of its ongoing four-
star hotel project in Shillong (Meghalaya), and exposure to
intense competition in the hospitality industry. These rating
weaknesses are mitigated by the benefits that Aura derives from
its promoters' vast entrepreneurial experience in the North-
eastern region.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term 50 CRISIL B+/Stable (Reaffirmed)
Bank Loan Facility
Term Loan 350 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that Aura will benefit from the promoters' vast
entrepreneurial experience in the North-eastern region. The
outlook may be revised to 'Positive' if the company generates
more-than-expected revenue and profits after stabilisation of
operations. Conversely, the outlook may be revised to 'Negative'
if the commissioning of the project is delayed by unforeseen
events, or if the company undertakes additional debt-funded
capital expenditure leading to deterioration in the financial risk
profile.
Incorporated in June 2010, Aura is promoted Mr. Vikash Agrawal and
Mr. Ronak Jain. The company is setting up a four-star hotel in
Shillong.
BEEPEE ENTERPRISE: CRISIL Reaffirms B+ Rating on INR35MM Loan
-------------------------------------------------------------
CRISIL's ratings on the bank facilities of Beepee Enterprise Pvt
Ltd (BEPL) continue to reflect BEPL's below-average financial risk
profile, marked by a modest networth and weak debt protection
metrics, its large working capital requirements,and its modest
scale of operations. These rating weaknesses are partially offset
by the extensive experience of the company'spromoters in the
textile industry, and its established relationships with
customers.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 35 CRISIL B+/Stable (Reaffirmed)
Foreign Demand
Bill Purchase 20 CRISIL A4 (Reaffirmed)
Letter Of Guarantee 3 CRISIL A4 (Reaffirmed)
Proposed Long Term 10 CRISIL B+/Stable (Reaffirmed)
Bank Loan Facility
Outlook: Stable
CRISIL believes that BEPL will continue to benefit over the medium
term from its promoters' extensive industry experience and its
established customer relationships. The outlook may be revised to
'Positive' in case of a substantial increase in BEPL's scale of
operations and profitability, leading to higher cash accruals, or
if the company's capital structure or working capital cycle
improves. Conversely, the outlook may be revised to 'Negative' in
case of deterioration in the company's financial risk profile,
most likely due to further lengthening of its working capital
cycle or a decline in its revenue and profitability.
Update
For 2014-15 (refers to financial year, April 1 to March 31), BEPL
is estimated to register revenue of INR324 million as against
INR319 million for the previous year. The flat revenue growth was
mainly because of stable demand from its international customers.
BEPL's operating profitability is estimated to remain stable
around 6 per cent driven by stable cotton yarn prices. Over the
medium term, its operating profitability is expected to be
sustained at a similar level.
BEPL's operations are working capital intensive, reflected in its
gross current assets (GCAs) estimated at around 196 days for March
31, 2015. The high GCAs were because of a large inventory of 111
days as on this date. This has resulted in large working capital
requirements and hence in high utilisation of its bank limits of
INR55 million, at an average of 98 per cent over the ten months
through December 2014. BEPL has a moderate gearing estimated at
around 2.22 times for March 31, 2015, on account of its modest
accretion to reserves and small net worth of INR47 million as on
this date.
BEPL has stretched liquidity. For 2014-15, its cash accruals are
expected to be modest at around INR6 million against no debt
obligations. CRISIL believes that BEPL's liquidity will remain
stretched over the medium term on account of its average cash
accruals and no large capital expenditure plans.
BEPL was incorporated in 2003, promoted by Mr. Chandrakishor
Poddar along with his sons, Mr. Anup Poddar and Mr. Anil Poddar.
The company manufactures of bed sheets, table cloths, serviettes,
chair covers, table linen, duvets, and mats. BEPL's customers
include various reputed players such as Air India Ltd, Taj Hotels
Resorts and Palaces, and Hotel Leela Ventures Ltd.
EMPIRE PHOTOVOLTAIC: CRISIL Reaffirms D Rating on INR127.5MM Loan
-----------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of
Empire Photovoltaic Systems Pvt Ltd (EPSPL) continues to reflect
instances of delay by EPSPL in servicing its term debt. The delays
have been caused by the company's weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 28 CRISIL D (Reaffirmed)
Proposed Long Term
Bank Loan Facility 10.8 CRISIL D (Reaffirmed)
Term Loan 127.5 CRISIL D (Reaffirmed)
Working Capital
Term Loan 3.7 CRISIL D (Reaffirmed)
EPSPL has a below-average financial risk profile marked by its
small net worth, high gearing, and below-average debt protection
metrics. The company also has large working capital requirements
and is exposed to intense competition in the solar photovoltaic
module manufacturing industry. However, the company benefits from
the healthy growth prospects for the solar power industry.
EPSPL was set up in 2010 by Mr. L Anil Kumar and his friends. The
company manufactures solar photovoltaic modules. It commenced
operations in 2012, and is based in Hyderabad (Telangana).
FOOD AND BIOTECH: CRISIL Reaffirms B- Rating on INR60MM Loan
------------------------------------------------------------
CRISIL's ratings on the bank facilities of Food and Biotech
Engineers India Private Limited (FBEIPL) continue to reflect
FBEIPL's weak financial risk profile, particularly liquidity,
marked by highly leveraged capital structure and weak debt
protection metrics.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 140 CRISIL A4 (Reaffirmed)
Cash Credit 60 CRISIL B-/Stable (Reaffirmed)
The ratings also underscore FBEIPL'S large working capital
requirements driven by stretched receivables and modest scale of
operations with high susceptibility to demand from certain end-
user industries. These rating weaknesses are partially offset by
the benefits that FBEIPL derives from its promoters' extensive
experience and long track record in designing and manufacturing
machines for the dairy/food processing industry and its
established relationships with its customers.
Outlook: Stable
CRISIL believes that FBEIPL will continue to benefit over the
medium term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if FBEIPL significantly
improves its scale of operations and profitability, leading to
large cash accruals, while improving its working capital
management, thereby improving its liquidity. Conversely, the
outlook may be revised to 'Negative' in case of further weakening
in the company's financial risk profile, particularly liquidity,
most likely because of delayed receivables, low cash accruals, or
decline in operating profitability or if the company undertakes
any large, debt-funded capital expenditure.
FBEIPL (an ISO 9001: 2000 company) was established in 1991 by Mr.
R P Singh in association with the other directors, Mr. Maninder
Kumar Singh and Mr. Anil Kumar Sinha, and is based in Palwal
(Haryana). FBEIPL designs, manufactures, installs, and commissions
dairy processing and food processing plants on turnkey basis. The
company specialises in evaporators and dryers used for industries
such as dairy, fruits, distilleries, and chemicals. It also
undertakes designing and fabrication work for pressure vessels,
storage tanks, stainless steel piping and structural works. The
company has the ability to execute turnkey projects of setting up
dairy units with a processing capacity of 1 million litres of milk
per month.
FBEIPL reported a profit after tax (PAT) of INR5.7 million on
operating income of INR508 million for 2013-14 (refers to
financial year, April 1 to March 31), against a PAT of INR3.6
million on operating income of INR560 million for 2012-13.
INDIAN SUCROSE: CRISIL Ups Rating on INR1.5BB Loan to B+
--------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank loan facility
of Indian Sucrose Ltd (ISL) to 'CRISIL B+/Stable' from 'CRISIL
B/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 1500 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
The rating upgrade reflects the expected improvement in ISL's
liquidity, with its cash accruals expected to remain adequate for
meeting its debt obligations over the medium term owing to
increase in ISL's scale of operations. The company has strong
funding support from its promoters and affiliates, who bring in
funds to support its working capital requirements, when required.
The upgrade also factors in ISL's sustained scale of operations
with a moderate operating margin, backed by its established track
record in the sugar industry.
The rating reflects ISL's average financial risk profile, marked
by high gearing and weak debt protection metrics, and its
susceptibility to regulatory changes and to sugarcane
availability. These rating weaknesses are partially offset by the
company's established position in Punjab's sugar market.
Outlook: Stable
CRISIL believes that ISL will continue to benefit over the medium
term from its established position in the sugar market in Punjab.
The outlook may be revised to 'Positive' if the company's
liquidity improves, with significantly higher cash accruals driven
by an increase in its scale of operations, or if its capital
structure improves substantially, most likely because of large
accretions to reserves or additional capital infusion by its
promoters. Conversely, the outlook may be revised to 'Negative' if
ISL's capital structure deteriorates, or if its working capital
requirements increase, thereby straining its liquidity.
ISL, a part of the Yadu group, was acquired by the present
management from the Oswal group. The company has a manufacturing
unit in Mukerian (Punjab), with sugarcane crushing capacity of
5000 tonnes per day; it caters to the Punjab, Himachal Pradesh,
Rajasthan, and Jammu & Kashmir markets. ISL markets its products
under the Sweeto brand through its dealer network.
KOPPAL GREEN: ICRA Reaffirms B+ Rating on INR14cr Cash Credit
-------------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B+ to the
INR5.00 crore term loans (reduced from INR9.60 crore) and INR14.00
fund based limits of Koppal Green Power Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 14.00 [ICRA]B+ reaffirmed
Term loans 5.00 [ICRA]B+ reaffirmed
The rating reaffirmation favorably factors in the continued
financial support to KGPL in the form of interest free unsecured
loans from the promoters, healthy profitability in the rice mill
division during FY 2013 to FY 2015 (9m) due to larger export and
institutional sales, and better yield in paddy milling resulting
from modern, high capacity machinery installed. ICRA also notes
the limited off-take risk in the power division given the ten year
Power Purchase Agreement (PPA) with Gulbarga Electricity Supply
Company Limited (GESCOM), expiring in FY2020 coupled with
increment in tariff of 10.1%, 3.7% and 3.6% for FY15 (Q4), FY 16
and FY17. The rating is however constrained by the significant
increase in the raw material (bio-mass) prices in the last three
years, forced shutdown of the plant for two months in the current
and previous financial year resulting in reduced Plant Load Factor
(PLF). The rating also takes into account the low capacity
utilization in FY14 and (9m) FY15 for the rice mill division due
to reduced paddy availability in the region and increase in
customer concentration owing to the company's strategy to sell the
rice only against firm long term orders (from established
institutional customers). ICRA's rating also factors in the KGPL's
exposure to adverse regulatory changes given its presence in
highly government regulated industries.
Going forward, the ability of the company to increase its capacity
utilization in the rice mill division and its ability to keep the
raw material procurement and operational costs under control while
ensuring healthy PLF to cover the fixed costs in the power
division will be the key rating sensitivities.
Koppal Green Power Limited runs a 6MW bio-mass based power plant
and an 8MT per hour rice mill in the Koppal district of Karnataka.
The commercial operations of the bio-mass power plant began in
2005 and the entire power generated is exported to GESCOM under a
ten year PPA last, renewed in 2011 (till 29th March 2020). The
rice mill unit was earlier part of SNC Foods Private Limited
(SNCPL) which merged with KGPL with effect from 1st April 2011.
SNCPL was promoted by KGPL and its promoters Mr. M Subbaiah and
family.
Recent Results
According to unaudited report, during the nine month period ended
31st December 2014 (9m, FY15), KGPL reported an operating income
of INR32.87 crore and profit before tax of INR0.76 crore as
against an operating income of INR36.36 crore and profit after tax
of INR0.26 crore in FY2014.
KSM MILLS: CRISIL Assigns B+ Rating to INR39.2MM Bank Loan
----------------------------------------------------------
CRISIL has assigned 'CRISIL B+/Stable' rating on the long term
bank facilities of KSM Mills (KSM).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Rupee Term Loan 15.8 CRISIL B+/Stable
Cash Credit 5 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 39.2 CRISIL B+/Stable
The rating reflects its modest scale of operations in highly
fragmented textile industry and its working capital intensive
operations. The rating also factors in the below average financial
risk profile of KSM, marked by its modest net worth and high
gearing, though supported by adequate debt protection metrics.
These rating weaknesses are partially mitigated by the benefits
that KSM gets due to extensive experience of its promoters in the
textile industry along-with its healthy operating margins.
Outlook: Stable
CRISIL believes that KSM will maintain its credit risk profile
over the medium term on account of promoters' extensive industry
experience. The outlook may be revised to 'Positive' if the firm
is able to significantly increase its scale of operations while
sustaining its operating margins leading to strong increase in
cash generation. Conversely, the outlook maybe revised to
'Negative' in case of stretch in working capital or less than
expected cash generation leads to deterioration in the liquidity
profile.
Established in October 2011, KSM is engaged in the activity of
bleaching of fabric and is based out of Tirupur (Tamil Nadu).
MANGALORE SEA: ICRA Assigns B+ Rating to INR5cr Fund Based Loan
---------------------------------------------------------------
ICRA has assigned a long term rating of [ICRA]B+ to the INR2.50
crore term loan and INR5.00 crore fund based facilities of
Mangalore Sea Products.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term loan 2.50 [ICRA]B+ assigned
Fund based facilities 5.00 [ICRA]B+ assigned
The rating assigned takes into account the high demand for fish
meal and fish oil in the domestic market and the firm's plans to
venture into export sales in the near to medium term that support
the growth prospects. The rating also factors in the healthy
revenues clocked by the firm in its first year of operation (2014-
15) on account of high capacity utilization and good realizations
for fish meal and fish oil and the firm's plans to increase the
production capacity in the near term that support the revenue
visibility going forward.
The rating is, however, constrained by the small scale of
operations that limits economies of scale to an extent and the
high customer concentration risk with majority of the revenues
derived from the top customer C P Aquaculture (India) Private
Limited. The rating is further constrained by the high competitive
intensity with the presence of large number of players in
Mangalore that limits the bargaining power to an extent and the
moderate financial profile of the firm marked by low profit
margins, moderate capital structure and coverage indicators and
high working capital intensity, adversely impacting the cash flows
of the firm. Going forward, the ability of the firm to scale up
its operations and improve its financial profile remains the key
rating sensitivities.
Mangalore Sea Products is a partnership firm bought by Mr. Abdul
Khader on January 28, 2014. The firm is engaged in the
manufacturing and selling of fish meal and fish oil in the
domestic market and procures raw fish from domestic suppliers. It
has a manufacturing unit with a total capacity to process 200
tonne of fish per day and a corporate office in Mangalore. The
firm started its operations in May 2014 after renovations of the
existing building and the machineries.
Recent results
As per the provisional financials, the firm has reported a net
profit of INR0.7 crore on an operating income of INR34.3 crore
during 10 months 2014-15.
MARINE CHEMICALS: CRISIL Puts B+ Rating on INR20MM Bank Loan
------------------------------------------------------------
CRISIL has assigned its ratings of 'CRISIL B+/Stable/CRISIL A4' to
the bank facilities of Marine Chemicals (MC).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term 20 CRISIL B+/Stable (Assigned)
Bank Loan Facility
Packing Credit 50 CRISIL A4 (Assigned)
Cash Credit 5 CRISIL B+/Stable (Assigned)
Letter of Credit 25 CRISIL A4 (Assigned)
The ratings reflect MC's modest scale of operations in an
intensely competitive industry and susceptibility to volatility in
raw material prices. These rating weaknesses are partially offset
by the extensive experience of MC's promoters in the manufacture
of agar agar commonly called china grass, and its average
financial risk profile, marked by moderate gearing and healthy
debt protection metrics.
Outlook: Stable
CRISIL believes that MC will maintain its business risk profile
over the medium term on the back of its promoters' extensive
experience in the manufacture of agar-agar business. The outlook
may be revised to 'Positive' if the firm scales up its operations
significantly, while it improves its profitability, leading to
better cash accruals. Conversely, the outlook may be revised to
'Negative' if MC reports lower than expected revenues or
profitability, or its working capital management deteriorates
resulting in weak liquidity or if it undertakes larger than
expected capital expenditure programme leading to weak financial
risk profile.
MC, incorporated in 1982 by Mr. Kurien Jose, manufactures Agar
commonly called as China grass which is a jellyfying agent used in
industries like food and pharmaceuticals. Its manufacturing
facilities are located in Cochin (Kerala).
MTV EXPORTS: CRISIL Assigns B Rating to INR35MM Bank Loan
---------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of MTV Exports (MTVE).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 35 CRISIL B/Stable
Cash Credit 20 CRISIL B/Stable
Packing Credit 20 CRISIL A4
The ratings reflect MTVE's working-capital-intensive operations
and below-average financial risk profile, marked by a small net
worth and weak debt protection metrics. These rating weaknesses
are partially offset by the extensive experience of the firm's
promoters in the textile industry.
Outlook: Stable
CRISIL believes that MTVE will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the firm registers a
significant and sustained increase in its scale of operations and
profitability, resulting in a substantial increase in its cash
accruals. Conversely, the outlook may be revised to 'Negative' if
MTVE's cash accruals are low or its working capital cycle is
stretched, leading to stress on its liquidity.
MTVE, established in 1999, manufactures and exports uniforms for
corporate entities, schools, hospitals, and hotels, besides other
ready-made garments. The firm generates 30 per cent of its total
revenue through exports mainly to the US, Portugal, Bahrain, and
Israel.
NARMADA CEREAL: CRISIL Reaffirms B+ Rating on INR450MM Loan
-----------------------------------------------------------
CRISIL's ratings on the bank facilities of Narmada Cereal Pvt Ltd
(NCPL) continue to reflect NCPL's weak financial risk profile,
marked by a high gearing, and average debt protection metrics.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bill Purchase-
Discounting Facility 30 CRISIL A4 (Reaffirmed)
Cash Credit 450 CRISIL B+/Stable (Reaffirmed)
Packing Credit 80 CRISIL A4 (Reaffirmed)
Rupee Term Loan 40 CRISIL B+/Stable (Reaffirmed)
The ratings also factor in the company's susceptibility to
regulatory changes, volatility in raw material prices, and changes
in rainfall pattern. These rating weaknesses are partially offset
by the experience of NCPL's promoters in the rice industry, the
company's established relationships with customers and suppliers,
and its moderate brand image.
Outlook: Stable
CRISIL believes that NCPL's financial risk profile will remain
constrained over the medium term by its weak capital structure.
The outlook may be revised to 'Positive' if NCPL significantly
improves its capital structure and liquidity, most likely through
capital infusion. Conversely, the outlook may be revised to
'Negative' if the company undertakes a large debt-funded capital
expenditure programme, thereby weakening its capital structure
further, or if it generates low net cash accruals, or if its
working capital cycle lengthens significantly.
NCPL was set up in February 2007 by Mr. Arun Mittal, his brother,
Mr. Praveen Mittal, and Mr. Surendra Gupta. The company commenced
commercial production on April 1, 2008. NCPL mills Pusa 1121
basmati rice, mainly sold in bulk; part of the produce is also
sold domestically under the company's Narmada Rice brand.
For 2013-14 (refers to financial year, April 1 to March 31), NCPL
reported a profit after tax (PAT) of INR23 million on net sales of
INR1465 million as against a PAT of INR17.9 million on net sales
of INR1242.3 million for 2012-13.
NASHIK INSTITUTE: CRISIL Reaffirms D Rating on INR70MM Term Loan
----------------------------------------------------------------
CRISIL's rating on the long-term bank facility of Nashik Institute
of Technology (NIT) continues to reflect instances of delay by NIT
in servicing its debt; the delays have been caused by the trust's
weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 70 CRISIL D (Reaffirmed)
NIT also has a weak financial risk profile, marked by a high
gearing, and is susceptible to changes in the regulatory framework
governing the education sector. However, the trust benefits from
the resourceful background of its promoters.
NIT, an educational trust, was set up in 2009-10 (refers to
financial year, April 1 to March 31). It is registered under the
Bombay Public Trust Act. The trust runs a polytechnic college in
Nashik (Maharashtra). Mr. Suresh Patil is the key founder and
trustee of NIT. The courses offered by the trust have been
approved by regulatory bodies such as All India Council for
Technical Education and Directorate of Technical Education.
NAYEK PAPER: CRISIL Lowers Rating on INR45MM Cash Loan to D
-----------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Nayek Paper Industries Pvt Ltd (NPIPL) to 'CRISIL D/CRISIL D' from
'CRISIL B/Stable/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 2.5 CRISIL D (Downgraded from
'CRISIL A4')
Cash Credit 45 CRISIL D (Downgraded from
'CRISIL B/Stable')
Letter of Credit 7.5 CRISIL D (Downgraded from
'CRISIL A4')
Proposed Long Term 12.3 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL B/Stable')
Term Loan 11.4 CRISIL D (Downgraded from
'CRISIL B/Stable')
The rating downgrade reflects delays in meeting of principal and
interest payments on its term loan. The interest payments on the
cash credit account of the company are also delayed by more than
30 days consecutively. The delays are due to liquidity crunch
faced by the company.
NPIPL has large working capital requirements and modest scale of
operations in the paper industry. However, the company continues
to benefit from the promoters' extensive experience in the paper
industry, and established customer relationships.
NPIPL was set up in 1978 as a partnership firm, Nayek Paper Board
Mills; in 1987, it was reconstituted as a private limited company.
NPIPL manufactures packaging material, such as coated boards,
duplex boards, ticket boards, grey boards, and pulp boards. Its
facility is located in Memari (West Bengal).
NESTER CORN: CRISIL Reaffirms D Rating on INR72MM LT Loan
---------------------------------------------------------
CRISIL's ratings on the bank facilities of Nester Corn Products
Pvt Ltd (NCPPL) continue to reflect instances of delay by NCPPL in
servicing its term debt. The delays have been caused by the
company's weak liquidity on account of its cash losses.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 55 CRISIL D (Reaffirmed)
Letter of Credit 20 CRISIL D (Reaffirmed)
Long Term Loan 72 CRISIL D (Reaffirmed)
Proposed Short Term
Bank Loan Facility 5 CRISIL D (Reaffirmed)
NCPPL has a below-average financial risk profile marked by its
small net-worth, high gearing, and weak debt protection metrics.
The company has small scale of operations, has large working
capital requirements, and its profitability margins are
susceptible to volatility in raw material prices. However, the
company benefits from the extensive entrepreneurial experience of
the promoters.
NCCPL was set up in 2010 by Mr. Bhavesh Vedant, his family
members, and his friends. The company manufactures corn products.
It is based in Nizamabad district Telangana.
PIONEER NF: CRISIL Reaffirms B Rating on INR50MM Cash Loan
----------------------------------------------------------
CRISIL's ratings on the bank facilities of Pioneer NF Forgings
India Private Limited (PNFL) continue to reflect PNFL's small
scale of operations, and susceptibility of its margins to
volatility in raw material prices.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 0.5 CRISIL A4 (Reaffirmed)
Cash Credit 50 CRISIL B/Stable (Reaffirmed)
Term Loan 29.5 CRISIL B/Stable (Reaffirmed)
The ratings also reflect its below-average financial risk profile
marked by small net worth and modest debt protection metrics.
These rating weaknesses are partially offset by the promoters'
extensive industry experience.
Outlook: Stable
CRISIL believes that PNFL will continue to benefit over the medium
term from the extensive industry experience of its promoters. The
outlook may be revised to 'Positive' if the company significantly
improves its scale of operations while maintaining its
profitability, leading to healthy cash accruals. Conversely, the
outlook may be revised to 'Negative' if PNFL's financial risk
profile deteriorates because of a large debt-funded capital
expenditure (capex), or if its liquidity deteriorates, owing to a
decline in operating profitability.
Set up in 2006, PNFL manufactures forgings for the automotive and
automotive ancillaries sectors, and for the electro-mechanical
equipment sector. The operations of the company are managed by the
director, Mr. Niranjan Sankar.
PLASCARE INDUSTRIES: CRISIL Reaffirms D Rating on INR200MM Loan
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Plascare Industries
Private Limited (Plascare) continue to reflect instances of delays
by Plascare in servicing its term debt. The delays have been
caused by the company's weak liquidity resulting from continuing
cash losses from its operations.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 13.5 CRISIL D (Reaffirmed)
Cash Credit 110 CRISIL D (Reaffirmed)
Letter of Credit 40 CRISIL D (Reaffirmed)
Long Term Loan 200 CRISIL D (Reaffirmed)
Proposed Long Term
Bank Loan Facility 36.5 CRISIL D (Reaffirmed)
Plascare also has a below average financial risk profile marked by
its weak profitability, modest scale of operations and subdued
debt protection metrics. These rating weaknesses are partially
offset by the extensive industry experience of Plascare's
promoters.
Plascare was set up in 2004 by Mr. S Khosla and Mr. R Vasan. The
company manufactures polycarbonate bottles, polypropylene
closures, and polyethylene terephthalate preforms and closures.
Plascare reported a net loss of INR26.3 million on net sales of
INR248.3 million in 2013-14 (refers to financial year, April 1 to
March 31), against a net loss of INR15.9 million on net sales of
INR328.2 million for 2012-13.
PRASANNA TECHNOLOGIES: ICRA Ups Rating on INR5cr Loan to BB-
------------------------------------------------------------
ICRA has upgraded the long term rating assigned to the INR2.00
crore fund based facilities and INR5.00 crore non fund based
facilities of Prasanna Technologies Private Limited from [ICRA]B+
to [ICRA]BB-. The outlook on the long term rating is stable.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based facilities 2.00 Upgraded from [ICRA]B+
to [ICRA]BB-
Non fund based 5.00 Upgraded from [ICRA]B+
Facilities to [ICRA]BB-
The upgrade in rating factors in the strong order book for the
next three years and the healthy financial profile marked by
healthy profit margins, moderate gearing and adequate coverage
indicators. The rating also takes into consideration the
experience of the promoters in the information technology and the
electrical industries and the long standing relation with the
electricity distribution companies in Karnataka that support the
growth prospects. The rating also factors in the company's plans
to venture into other states such as Andhra Pradesh and Tamil Nadu
in the near to medium term that would enhance the revenue
visibility going forward. The rating is, however, constrained by
the high customer concentration risk with top 3 customers
contributing to the majority of the revenues during 2013-14 and
the elongated payment cycles from its customers that have stressed
the liquidity position of the company to an extent. The rating is
further constrained by the small scale of operations that
restricts the financial flexibility to an extent and the high
competitive intensity with large number of companies offering IT
solutions in Mangalore and other cities in Karnataka, however,
varied and customized solutions offered to the electricity
distribution companies help in obtaining repeat orders from the
existing customers. Going forward, the ability of the company to
successfully execute the order book and improve its liquidity
position would be the key rating monitorables.
Prasanna Technologies Private Limited, incorporated in 2008,
provides software solutions to electricity distribution companies,
primarily in Karnataka. The company provides solutions such as
geographical information system mapping and conditioning
monitoring of transformers which helps the DISCOMS in setting up
of transformers and monitoring them for any faults. The company
also provides Enterprise resource planning (ERP) solutions to the
DISCOMS which help them in asset management, inventory management,
billing and human resource management among others. In addition,
the company has also developed Meter Data Acquisition Systems
(MDAS) through which the DISCOMS can track the energy usage of the
customers remotely from a centralised server. PTPL is also engaged
in distribution of energy meters manufactured by Larsen & Toubro
for Karnataka Region. PTPL has close to 400 employees and operates
from offices in Bangalore, Hubli and Mangalore.
Recent Results
During 2013-14, the company reported a net profit of INR1.2 crore
on an operating income of INR9.0 crore as against a net profit of
INR1.5 on an operating income of INR6.5 crore during 2012-13.
R P FOAM: CRISIL Ups Rating on INR75MM Overdraft Loan to B+
-----------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of R P Foam
Home Private Limited (RPPL) to 'CRISIL B+/Stable/CRISIL A4' from
'CRISIL D/CRISIL D'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Foreign Letter 45 CRISIL A4 (Upgraded from
of Credit 'CRISIL D')
Overdraft Facility 75 CRISIL B+/Stable (Upgraded
from 'CRISIL D')
Proposed Long Term 5 CRISIL B+/Stable (Upgraded
Bank Loan Facility from 'CRISIL D')
The rating upgrade reflects significant improvement in RPPL's
liquidity, reflected in timely servicing of its debt over the
three months ended March 31, 2015. RPPL's liquidity has improved
on the back of equity fund infusion, and healthy cash accruals due
to revival in operating profitability in 2014-15 (refers to
financial year, April 1 to March 31). The upgrade also factors in
CRISIL's expectation that RPPL will maintain operating
profitability and a controlled working capital cycle, and continue
to receive fund support from the promoters whenever necessary over
the medium term.
CRISIL's ratings on the bank facilities of RPPL continue to
reflect its below-average financial risk profile, high gearing,
moderate debt protection metrics, and a modest net worth; and its
exposure to intense competition in the PU foam industry. However,
the company continues to benefit from the longstanding experience
of promoters, with their funding support, and its established
brand in the market.
CRISIL has treated unsecured loans of INR23.5 million (as on March
31, 2014), extended to RPPL by its promoters and related parties
as neither debt nor equity. These loans are subordinated to bank
debt and are likely to be retained in the business in the long
term.
Outlook: Stable
CRISIL believes that RPPL will continue to benefit from the
extensive experience of its promoters, and its established brand
in PU foam manufacturing. The outlook may be revised to 'Positive'
if improvement in working capital requirements, scale of
operations and profitability leads to stronger cash accruals and
capital structure for RPPL. Conversely, the outlook may be revised
to 'Negative' in case of deterioration in liquidity most likely
because of stretch in working capital requirements, low cash
accruals and profitability, or any large debt-funded capital
expenditure.
RPPL was incorporated in 1987, by the Gupta family of Delhi. The
company is engaged in PU foam manufacturing business. The company
sells PU mattresses and PU rolls/sheets to retail and industrial
customers. Its manufacturing facility is located near Faridabad.
The company sells its products under the brands, Dreams and R P
Foam.
RATNAGIRI CERAMICS: ICRA Reaffirms B+ Rating on INR7.22cr LOC
-------------------------------------------------------------
ICRA has reaffirmed long term rating of [ICRA]B+ assigned to the
INR0.11 crore (revised from INR0.64 crore) term loans, INR7.22
crore (revised from INR7.5 crore) fund based working capital
facility, INR0.32 crore (revised from INR0.57 crore) non fund
based facilities and INR0.85 crore (enhanced from INR0.29 crore)
unallocated facilities of Ratnagiri Ceramics Private Limited
(RCPL). ICRA has also reaffirmed short term rating of [ICRA]A4
assigned to the INR4.50 crore (enhanced from INR3.00 crore) non
fund based bank facilities of RCPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limit-
Term Loan 0.11 [ICRA]B+ reaffirmed
Fund Based Limit-
Cash Credit &
Standby Line of
Credit 7.22 [ICRA]B+ reaffirmed
Non Fund Based
Limit-Bank Guarantee 0.25 [ICRA]B+ reaffirmed
Non Fund Based Limit-
Credit exposure limit
to notional forward
contract 0.07 [ICRA]B+ reaffirmed
Unallocated 0.85 [ICRA]B+ reaffirmed
Non Fund Based Limit-
Letter of Credit 4.50 [ICRA]A4 reaffirmed
The rating reaffirmation takes into account the low scale of
operations and weak financial profile of RCPL's core business of
manufacturing designer printed tiles. Although the revenues of the
company have increased YoY in FY14, the company's scale of
operations still remains small and high fixed costs have resulted
in inadequate profitability margins (net loss in FY 2011-12 and FY
2012-13). Further, the capital structure of the company remains
moderate which coupled with low profitability has resulted in weak
coverage indicators. ICRA also notes that RCPL's working capital
intensity of operation is high mainly on account of high inventory
holding period. The ratings are also constrained by high
competition in the designer printed tiles business on account of
presence of large number of players in the organized and
unorganized sector which restricts pricing flexibility and RCPL's
exposure to foreign exchange fluctuation risk on imports as no
hedging policy is adopted by the company.
The ratings however are supported by considerable experience of
the promoters in the ceramics tiles business, RCPL's diversified
client base and its established relationship with suppliers who
have even outsourced a portion of their production line to the
company. The ratings also take into consideration the consistent
equity infusion by the promoters in the business which coupled
with limited capital expenditure and scheduled debt repayments has
led to an improvement in the capital structure of the company in
the earlier years, however funding of increased working capital
requirements from external sources has resulted in increase in
gearing in FY14.
Going forward, the ability of the company to improve its scale of
operations and profitability and efficiently manage its foreign
exchange exposure will remain the key drivers for the company's
ratings.
S.T.G. CONCRETE: ICRA Assigns 'B' Rating to INR6.3cr LT Loan
------------------------------------------------------------
ICRA has assigned a long term rating of [ICRA]B to the INR6.3
crore fund based facilities of S.T.G. Concrete Products.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term fund based 6.3 [ICRA]B assigned
The assigned rating is constrained on account of the early stages
of the RMC plant unit operations resulting in modest financial
profile characterized by high gearing levels and weak debt
coverage indicators. The firm has recently incurred the debt
funded capital expenditure towards construction of the ready mix
concrete (RMC) plant. The aforementioned bank borrowings have
resulted in high interest cost and significant repayment
liabilities, falling due in the short to medium term, which may
impact the profitability and liquidity profile of the firm. The
rating also factors in the intensely competitive nature of the
construction industry with presence of several small and large
scale players, the high working capital requirements, inherent to
the nature of business, and the high geographical and sectorial
concentration of operations.
The rating assigned, however, takes comfort from the long track
record of the promoters in the construction business and the fact
that the promoters are approved Class I contractor with the Public
Works Department (PWD). The rating assigned takes comfort from the
well-established network of reputed clients, already doing
business with the group concern, STG Stone Crushers for several
years. The rating also factors in the availability of major raw
materials, i.e. stone aggregates from the in-house stone crushing
unit and cement from already existing clients such as Birla
Corporation Ltd. (Birla) and Ultratech Cement Ltd. (Ultratech)
among others.Going forward, the successful ramp-up of plant
capacity and operations coupled with ability of the firm to market
the RMC product in the local market will be the key rating
sensitivities.
STG group has 42 years of experience in the construction industry.
They are the leading aggregate supplier in the Mysore and Mandya
districts. The promoters are class one contractors in Mandya
district and Mysore for the past 15 years. The group owns 3 stage
Metso crusher to produce the highest quality aggregates and are
the only approved aggregate supplier for RMP-BARC (Bhabha Atomic
Research Centre), Ultratech Concrete Ltd., DRDO (Defence Research
and Development Organization), Sankalpa Group, Bapuji Group, PDR
Constructions among others.
STG Concrete Products, a new partnership firm, established in
September, 2014, to manufacture ready mix concrete (RMC). The new
facilities, located in Mysore, Bangalore, comprise state of the
art, environment friendly, fully computerized batching plant from
Simem India Private Ltd. (Italy based plant manufacturer in
India), for construction of highest quality RMC grade from M5-M60.
The total estimated construction and installation cost of the
plant amounted to INR6.01 crore. The same has been funded through
a mix of term loans of INR4.4 crore and balance from promoter
contribution. The plant has a capacity to manufacture 36000 Cubic
meters (Cum) of RMC per annum. The plant has started operations
from February, 2015.
SANDEEP TRADING: CRISIL Suspends D Rating on INR200MM Cash Loan
---------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Sandeep Trading Co (STC).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 200 CRISIL D
Proposed Long Term
Bank Loan Facility 5.8 CRISIL D
Term Loan 29.2 CRISIL D
The suspension of ratings is on account of non-cooperation by STC
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, STC is yet to
provide adequate information to enable CRISIL to assess STC'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'
STC was established in Kharar, Punjab in 1991. The firm mills and
trades non-basmati rice, and has one milling unit in Kharar
(Punjab). STC is promoted by Mr. Rajiv Verma.
SANKALP COTTON: ICRA Assigns B+ Rating to INR5cr Cash Credit
------------------------------------------------------------
ICRA has assigned an [ICRA]B+ rating to the INR5.00 crore cash
credit and INR1.49 crore term loans facility of Sankalp Cotton &
Oil Industries.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based-Cash Credit 5.00 [ICRA]B+ assigned
Fund Based-Term Loan I 0.29 [ICRA]B+ assigned
Fund Based-Term Loan II 1.20 [ICRA]B+ assigned
The rating assigned to Sankalp Cotton & Oil Industries (SCOI) is
constrained by the modest scale of operations with weak financial
profile characterized by modest debt coverage indicators and
stretched liquidity position due to high inventory level. 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 is further
constrained by the vulnerability to adverse movements in
agricultural produce prices, which are in turn dependent on agro
climatic conditions, 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, favourably factors in the experience of the
partners in the cotton industry and the location in the cotton
growing belt of Gujarat which ensures easy availability of cotton.
The rating, also favourably considers the operational stability
and presence in forward integration of cottonseeds providing
diversification and additional revenues.
Sankalp Cotton & Oil Industries was incorporated in September 2012
as a partnership firm. It is promoted by Mr. Hareshbhai Kalola and
seven other partners. The manufacturing unit of the firm is
situated at Hirapar, Tal. Tankara, Gujarat. It is equipped with 18
ginning machines, one pressing machine and 5 expellers with an
installed capacity to produce 4182 MT of cotton bales and 1045 MT
of cottonseed oil per annum. The firm is managed by four partners
namely, Mr. Hareshbhai Kalola, Mr. Nileshbhai Kakasania, Mr.
Chintubhai Vidja and Mr. Pravinbhai Vaishnani.
Recent Results
In FY14, SCOI reported an operating income of INR10.88 crore and
net profit of INR0.23 crore.
SARTHAK ENTERPRISE: CRISIL Puts B+ Rating on INR27.5MM Bank Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Sarthak Enterprise (SE).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 27.5 CRISIL B+/Stable
Bank Guarantee 22.5 CRISIL A4
Letter of Credit 50 CRISIL A4
The ratings reflect extensive industry experience of the SE's
modest scale of operations with high customer concentrations and
low profitability due to limited value addition to the product.
These rating weaknesses are partially offset by extensive industry
experience of the promoters and established relationship with
customers and suppliers resulting efficient working capital
management.
Outlook: Stable
CRISIL believes that SE will benefit from its promoters' extensive
industry experience over the medium term. The outlook may be
revised to 'Positive' if SE achieves higher than expected sales
revenue or if it profitability improves with some more value
addition to the product resulting higher cash accruals Conversely,
the outlook may be revised to 'Negative' if the firm's liquidity
weakens significantly due to considerable delay in order
execution, or if the firm witnesses any stretch in its working
capital cycle, thereby weakening its financial risk profile.
SE is Ahmedabad, Gujarat based entity; set up in 2011 as a
partnership firm. The firm is engaged into providing fault
detection instruments and its installation in electric power
systems.
In 2013-14, the firm reported profit after tax of INR1 million on
operating income of INR48.4 million.
SHANKAR SAW: CRISIL Suspends D Rating on INR49.5MM LOC
------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Shankar
Saw Mills Pvt Ltd (SSMPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 0.5 CRISIL D
Cash Credit 40 CRISIL D
Letter of Credit 49.5 CRISIL D
The suspension of ratings is on account of non-cooperation by
SSMPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SSMPL is yet to
provide adequate information to enable CRISIL to assess SSMPL'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'
SSMPL was incorporated in 2005. The company trades timber logs and
sawn timber in West Bengal.
SIDDHARTH DEVELOPERS: ICRA Cuts Rating on INR28cr Cash Loan to B+
-----------------------------------------------------------------
ICRA has revised the long term rating assigned to the INR28.00
crore cash credit facility of Siddharth Developers to [ICRA]B+
from [ICRA]BB- (stable).
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 28.00 Revised to [ICRA]B+ from
[ICRA]BB-(stable)
Rating Rationale
The rating revision factors in the firm's exposure to significant
market risks arising out of slow booking momentum with ~60% of the
area for Siddharth Enclave still remaining to be sold, execution
related risk in terms of cost and time overrun for the remaining
project, and low sales realisation achieved on the area booked so
far. ICRA notes that the repayment of bank loans is scheduled to
commence in the near term (1st quarterly instalment of INR7.00
crore due in September 2015) and hence the timeliness of sales &
collections remains critical to avoid cash flow mismatches and
ensure timely debt servicing failing which there exists a
refinancing risk. Improvement in sales realisation for the unsold
area would also be crucial for the firm, especially in presence of
competition from other projects in the vicinity, for achieving
desired sales and profitability levels.
The rating however, positively factors in the long experience of
the promoters in residential real estate projects, favourable
project location in Lower Parel, substantial construction progress
achieved for the rehabilitation building with no pending payments
towards land, with all approvals in place.
Incorporated in 2006, Siddharth Developers (SD) is a Mumbai based
developer currently undertaking the construction of a residential
redevelopment project at Lower Parel, Mumbai. The project name is
"Siddharth Enclave" and consists of 68 saleable units with a total
saleable area of 47,760 sq. ft. Further, about 44,400 sqft of
carpet area will be provided to the existing tenants. The
promoters of SD have an established track record of executing
residential projects in the past, mainly in the Thane region. Some
of the projects completed by the promoters are Sita Complex, Sita-
Smruti, Sita-Park, Sita-Swapna, Chandresh-Mahel, Chandresh-Tower,
Palash Tower, River-Wood Park (Phase I), Chandresh-Chaya (1, 2),
Kanchan-Jangha, Chandresh-Niketan, Chandresh-Mandir, Chandresh-
Abhishek and Chandresh-Abhinandan. The same ensures adequate
planning and execution capability of the partners in completing
the present project as well. Apart from "Siddharth Enclave", the
group is also executing other projects like River-Wood Park (Phase
II), Siddharth Plaza, Siddharth Grandeur and Siddharth Green Acres
in Mumbai.
Recent Results
For the financial year ended March 31, 2014, the firm reported an
operating income of INR0.84 crore and profit after tax of INR0.56
crore as against an operating income of INR2.10 crore and profit
after tax of INR1.45 crore for the financial year 2012-13.
SPARKLE MULTIPURPOSE: CRISIL Suspends D Rating on INR66MM Loan
--------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Sparkle Multipurpose Cold Storage Pvt Ltd (SMCSPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 19.3 CRISIL D
Proposed Long Term
Bank Loan Facility 0.8 CRISIL D
Term Loan 66 CRISIL D
The suspension of ratings is on account of non-cooperation by
SMCSPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SMCSPL is yet to
provide adequate information to enable CRISIL to assess SMCSPL'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'
SMCSPL was incorporated in 2007 and commenced commercial
operations in November 2010. Based in Hooghly (West Bengal),
SMCSPL operates a multipurpose cold storage unit, dealing
primarily in apples, carrots, and beetroots. The company also
trades these agriculture products. The daily operations of the
company are looked after by its director, Mr. Safal Das.
SRI RAJU: ICRA Reaffirms B+ Rating on INR5cr Long Term Loan
-----------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B+ outstanding
on the INR5.00 crore fund based facilities of Sri Raju Cotton
Mills. ICRA has also reaffirmed the short-term rating of [ICRA]A4
outstanding on the INR1.00 crore non-fund based facilities of the
Firm.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term: Fund
based facilities 5.00 [ICRA]B+/reaffirmed
Short term: Non-
fund based facilities 1.00 [ICRA]A4/reaffirmed
The ratings factor in the significant experience of the promoters
in the textile industry for over three decades and the improvement
in the capital structure aided by term loan repayments and
infusion of funds by promoters in 2013-14. Nevertheless, the
gearing continues to be high at 1.7 times as on March 31, 2014 (as
against 2.1 times previously). Further, the operating margins
declined in 2013-14 on account of decline in realizations and
resulted in deterioration in the coverage indicators, with
interest coverage and total debt-to-OPBDITA standing at 1.3 times
and 7.4 times, respectively. The ratings are further constrained
by the firm's small scale of operations which limits benefits from
scale economies which coupled with intense competition in the
domestic textile industry limits its pricing flexibility and the
exposure of the profit margins to volatility in cotton and yarn
prices. While there has been improvement in realizations in 2014-
15, the firm's ability to scale up its operations and efficiently
manage its working capital cycle will be critical to improve its
credit profile going forward.
Sri Raju Cotton Mills (SCRM) was incorporated in the year 1984 as
a cotton ginning unit and later integrated into manufacturing of
blended yarn. From an initial spindlage of 6,000, the firm had
gradually increased its spindleage to current levels of 14,072
spindles. The Firm shifted to manufacturing of cotton yarn from
January 2013. It manufactures finer counts yarn, including doubled
variety, and sells them in the traditional weaving markets.
Recent Results
The Firm reported net profit of INR0.1 crore on an operating
income of INR11.8 crore during 2013-14 as against net profit of
INR0.2 crore on an operating income of INR11.4 crore during 2012-
13.
SRI RAVICHANDRA: CRISIL Reaffirms B+ Rating on INR240MM Loan
------------------------------------------------------------
CRISIL rating to the bank facilities of Sri Ravichandra Textiles
Pvt Ltd (SRTPL) continues to reflect SRTPL's below-average
financial risk profile marked by small net worth, high gearing and
below-average debt protection metrics.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 140 CRISIL B+/Stable (Reaffirmed)
Long Term Loan 240 CRISIL B+/Stable (Reaffirmed)
Proposed Cash
Credit Limit 10 CRISIL B+/Stable (Reaffirmed)
The rating also reflects susceptibility of SRTPL's margins to
volatility in cotton prices, and its large working capital
requirements. These rating weaknesses are partially offset by the
benefits that SRTPL derives from its promoters' extensive industry
experience.
Outlook: Stable
CRISIL believes that SRTPL will continue to benefit over the
medium term from promoters' extensive industry experience. The
outlook may be revised to 'Positive' if there is a substantial and
sustained improvement in the company's revenues and profitability
margins, or there is a sustained improvement in its working
capital management. Conversely, the outlook may be revised to
'Negative' in case of a steep decline in the company's
profitability margins, or significant deterioration in its capital
structure caused most likely by a large debt-funded capital
expenditure or a stretch in its working capital cycle.
SRTPL, incorporated in 2010, manufactures cotton yarn, primarily
in counts of 10s and 20s. The company's manufacturing facilities
are in Guntur (Andhra Pradesh), and started commercial production
in November 2012.
SRINIDHI REAL: ICRA Assigns B Rating to INR8cr Unallocated Loan
---------------------------------------------------------------
ICRA has assigned a rating of [ICRA]B to INR8.00 crore unallocated
limits of Srinidhi Real Estate and Constructions.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Unallocated 8.00 [ICRA]B assigned
The assigned rating is constrained by limited track record of firm
in real estate market with small scale of operations, execution
risk given the nascent stage of project with only 30% of the
construction cost incurred as on March 2015; significant market
risk with bookings yet to commence; and high funding risk as
INR5.40 crore of the project funding (75% of the incomplete
project cost) is yet to be sanctioned from bank. Out of total
expected equity infusion of INR4.37 crore, INR2.57 crore already
infused as on March 2015 and rest is expected to flow in FY 16.
The assigned rating however positively factors in the location of
the projects at Mancherial, Adilabad which is 1.5 kms away from
Mancherial Bus Stand and under 4 kms from railway station; low
complexity of work; and with the proposal of Mancherial as the
newly formed district, the likelihood of appreciation of land
prices and better realisation. Going forward, the ability of the
firm to successfully execute the ongoing project without time and
cost overruns and achieve sales before the term loan
(unsanctioned) repayment starts will remain the key rating
sensitivities from credit perspective.
Srinidhi Real Estate and Constructions was incorporated as a
partnership firm since 19 November 2012 with 18 partners under
Indian Partnership Act 1932 with Registrar of Firm, Adilabad. The
firm is involved in development of real estate (acquiring land and
developing by plotting and constructing structures, apartments,
independent houses, etc). The promoters have earlier experience in
real estate and have completed Manjunath Apartment (a G+3 floor
apartment) in Mancherial in the past.
STRETCH BANDS: CRISIL Ups Rating on INR45MM Cash Loan to B
----------------------------------------------------------
CRISIL has upgraded its long-term rating on the bank facilities of
Stretch Bands (Gujarat) Private Limited (SBPL) to 'CRISIL
B/Stable' from 'CRISIL B-/Stable' and has assigned the short-term
rating at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 45 CRISIL B/Stable (Upgraded
from 'CRISIL B-/Stable')
Term Loan 12.5 CRISIL B/Stable (Upgraded
from 'CRISIL B-/Stable')
Proposed Long Term 24.6 CRISIL B/Stable (Upgraded
Bank Loan Facility from 'CRISIL B-/Stable')
Letter of Credit 5 CRISIL A4 (Reassigned)
Foreign Exchange 0.4 CRISIL A4 (Reassigned)
Forward
Corporate Loan 12.5 CRISIL B/Stable (Reassigned)
The rating upgrade reflects CRISIL's belief that the business risk
profile of SBPL will improve over the medium term with increased
scale of operations and healthy profitability. In the year 2013-
14, (refer to financial year, April 1st to March 31st) the company
reported sales of INR144.5 million against INR79 million during a
year earlier. The sales growth of 83 per cent during 2013-14 was
mainly supported by healthy order flows from overseas as well as
domestic customers. CRISIL believes that the company's sales
growth will be supported by healthy order flows over the medium
term. SBPL's operating margin has remained healthy in the range of
17 to 23 per cent over the last three years ended 2013-14 backed
by steady realizations. The operating margins are expected to be
in range of 17 to 18 per cent over the medium term supported by
improvement in the product mix. CRISIL believes that SBPL's
liquidity profile will improve with increased scale of operations
and healthy profitability resulting steady cash accruals over the
medium term.
The rating reflects SBPL's working-capital-intensive operations
and below average financial risk profile marked by high gearing
and weak debt protection metrics. These rating weaknesses are
partially offset by the benefits that SBPL derive from its
promoters' extensive industry experience.
Outlook: Stable
CRISIL believes that SBPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the company's scale of
operations increases higher than expectations while sustaining its
operating margins thereby improving its debt protection metrics.
Conversely, the outlook may be revised to 'Negative' if financial
risk profile weakens marked by deterioration in capital structure
because of large debt funded capital expenditure or increase in
working capital requirements.
Set up in 1976, SBPL is engaged in the manufacture of elastics.
The company's manufacturing facility is located in Bhavnagar,
Gujarat. The company is promoted and managed by D. V. Modi.
SBPL reported profit after tax (PAT) of INR2.5 million on sales of
INR148.6 million for 2013-14 (refers to financial year, April 1 to
March 31), as against a PAT of INR1.2 million on sales of INR79.4
million for 2012-13.
SUPREME ELECTROCAST: CRISIL Suspends D Rating on INR155MM Loan
--------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Supreme Electrocast Private Limited (SEPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Letter of Credit 70 CRISIL D
Overdraft Facility 155 CRISIL D
The suspension of ratings is on account of non-cooperation by SEPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SEPL is yet to
provide adequate information to enable CRISIL to assess SEPL'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'
SEPL, set up in 2002 by Mr. M L Arora, manufactures ingots and
trades in various steel products including channels, iron scrap,
angles, plates and ingots. SEPL's factory at Sahibabad (Uttar
Pradesh) has an installed manufacturing capacity of 24,000 tonnes
of ingots per annum.
SUYASH POLYMER: ICRA Reaffirms B+ Rating on INR4.6cr Cash Credit
----------------------------------------------------------------
ICRA has reaffirmed long term rating of [ICRA]B+ assigned to the
INR4.60 crore (enhanced from INR3.60 crore) cash credit and the
INR0.86 crore term loan facilities of Suyash Polymer. ICRA has
also reaffirmed the short term rating of [ICRA]A4 assigned to the
INR0.13 crore short-term, non-fund based facilities of BPPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term, fund based
limits - Cash Credit 4.60 [ICRA]B+ Reaffirmed
Long-term, fund based
limits -Term Loan 0.86 [ICRA]B+ Reaffirmed
Short-term, non-fund
based limits -Bank
Guarantee 0.13 [ICRA]A4 Reaffirmed
The assigned ratings favourably factor in the long standing
experience of the promoters in the industry; established marketing
network in Maharashtra and adjoining states; and favourable demand
prospect for the disposable cups industry. The assigned ratings,
however, remain constrained by stretched accruals owing to low
margins, and working capital intensive nature of the business,
resulting in a stretched capital structure and weak coverage
indicators. The ratings are also constrained by the small scale of
operations, which limits the ability to gain economies of scale;
and the firm's vulnerability of margins to fluctuations in input
prices and foreign exchange, given the limited ability to pass on
the same to its clients. ICRA has taken a consolidated view of
Harshita and three other group companies, viz. Brajesh Packaging
Private Limitted (BPPL), Radhika Packaging Private Limited (RPPL),
and Harshita Polypack (SP) together referred to as the Dammani
Group while arriving at the ratings, as the group companies derive
significant business synergies from each other.
Incorporated in 1978, Suyash Polymer (SP) is the flagship company
of the Dammani Group, engaged in manufacturing polypropylene
disposable cups. Mrs. Radhika Neelesh Dammani is the proprietor of
the firm, while Mr. Neelesh Dammani and Mr. Nitin Dammani
collectively manage the affairs of the group.
Recent Results
The company registered an operating income of INR26.3 crore and
PAT of INR0.05 crore for the year ending March 31, 2014. On a
consolidated basis, the group has registered an operating income
of INR104.9 crore and PAT of INR0.23 crore in FY14.
TATA POWER: S&P Revises Outlook to Stable & Affirms 'B+' CCR
------------------------------------------------------------
Standard & Poor's Ratings Services said that it had revised its
rating outlook on India-based power utility Tata Power Co. Ltd. to
stable from positive. S&P also affirmed its 'B+' long-term
corporate credit rating on the company and its 'B+' issue rating
on its senior unsecured notes.
"We revised the outlook to reflect the likelihood that Tata
Power's cash flows and liquidity will improve slower than we
earlier expected," said Standard & Poor's credit analyst Mehul
Sukkawala.
This is because of a delay in the regulatory and legal process for
an increase in tariffs for the company's Mundra project. Further,
Tata Power's receipt of proceeds from the sale of its 30% stake in
PT Arutmin, a coal mine in Indonesia, is substantially delayed.
S&P believes an increase in tariffs for Tata Power's Mundra
project could improve the company's financial strength and help
resolve covenant noncompliance for loans related to the project.
India's Central Electricity Regulatory Commission (CERC) had in
February 2014 approved a higher tariff for power from the project
to compensate Tata Power for an increase in coal costs.
The CERC also allowed a fuel-cost pass-through mechanism for power
supplied from the project. However, the CERC decision was
challenged by some power procurers and is now before an appellate
tribunal. Even if the tribunal decision comes soon, the aggrieved
party is likely to appeal the ruling before India's Supreme Court.
Ongoing financial challenges at the Bakrie Group, which bought the
Arutmin stake, could further delay receipt of US$500 million in
sale proceeds for Tata Power. S&P therefore do not factor this
receipt into S&P's base-case forecasts.
S&P expects Tata Power's cash flows to improve over the next two
to three years, driven by the company's regulated businesses in
Mumbai and Maithon, and a joint venture with Tata Steel Ltd. The
recent increase in tariff for Tata Power's Delhi distribution
business should also support cash collections. However,
underperformance of the Mundra project and the in-house coal
business could limit the improvement. In addition, Tata Power is
awaiting further regulatory or government measures to recover
receivables related to its power distribution in Delhi.
"We expect Tata Power to restrict capital expenditure to regulated
businesses and defer all discretionary or new project related work
to keep its debt under check," said Mr. Sukkawala.
Consequently, S&P expects Tata Power's ratio of funds from
operations (FFO) to total debt to be 10%-14% over the next two
years, consistent with an "aggressive" financial risk profile.
S&P expects Tata Power to continue to benefit from its good market
position as a large private sector utility company with
diversified operations across generation, distribution,
transmission, and coal mining. The company has good operating
efficiency and benefits from good electricity demand in India.
The below-average profitability of the Mundra project pending
resolution of the tariff issue constrains Tata Power's business
risk profile, which S&P continues to assess as "fair."
The stable outlook reflects S&P's expectation that cash flows from
Tata Power's regulated business and the company's lower capital
expenditure will offset uncertainty over the Mundra project and
the coal business over the next 12 months. S&P anticipates that
the company will maintain a ratio of FFO to debt of more than 10%
over the period. S&P also expects Tata Power to continue to
benefit from its good banking relationship to manage liquidity and
its access to support from promoters in case of stress.
S&P could raise the rating if: (1) the litigation process for
compensatory tariff for the Mundra project concludes in favor of
Tata Power, such that the FFO-to-debt ratio is materially above
12% on a sustained basis; and (2) Tata Power secures a waiver from
its lenders on its covenant breach.
S&P could lower the rating if Tata Power faces difficulty in
rolling over its debt maturities or we sense lenders' discomfort
that could affect a meaningful part of the company's debt. S&P
could also lower the rating if Tata Power's financial profile
deteriorates, which could stem from weaker operating performance
than S&P expects or debt-financed growth. A ratio of FFO to debt
sustainably below 10% could trigger a downgrade.
TOOFAN STEEL: CRISIL Suspends D Rating on INR212.2MM LT Loan
------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Toofan Steel Industries Pvt Ltd (TSIPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 135 CRISIL D
Letter of Credit 4 CRISIL D
Long Term Loan 212.2 CRISIL D
Proposed Long Term
Bank Loan Facility 28.8 CRISIL D
The suspension of ratings is on account of non-cooperation by
TSIPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, TSIPL is yet to
provide adequate information to enable CRISIL to assess TSIPL'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'.
TSIPL, incorporated in March 2009, is promoted by Mr. Bashar Molla
and Mr. Montaj Molla. Based out of Murshidabad district of West
Bengal, the company runs a rolling mill for manufacturing of
thermo mechanically treated (TMT) bars, with capacity of 72,000
tonnes per annum. The company started commercial operations in
April 2012.
UMA RANI: CRISIL Suspends D Rating on INR37.5MM Term Loan
---------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Uma Rani Agro Tech Pvt Ltd (UAPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 22.5 CRISIL D
Term Loan 37.5 CRISIL D
The suspension of ratings is on account of non-cooperation by UAPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, UAPL is yet to
provide adequate information to enable CRISIL to assess UAPL'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'.
UAPL was incorporated in Dubrajpur, West Bengal in 2010. The
company processes paddy into rice, rice bran, broken rice, and
husk. The rice mill commenced operations in October 2013. Mr.
Sukhdev Kundu and Mr. Anando Kundu manage UAPL's day-to-day
operations.
URAL INDIA: CRISIL Suspends D Rating on INR175MM Term Loan
----------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Ural
India Ltd (UIL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 40 CRISIL D
Cash Credit 40 CRISIL D
Foreign Letter of
Credit 28.1 CRISIL D
Proposed Long Term
Bank Loan Facility 16.9 CRISIL D
Working Capital
Term Loan 175 CRISIL D
The suspension of ratings is on account of non-cooperation by UIL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, UIL is yet to
provide adequate information to enable CRISIL to assess UIL'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'.
UIL was incorporated in 2006, promoted by Mr. Jugal Kishore Saraf.
It is a closely held public limited company, engaged in the
manufacturing and assembling of heavy duty vehicles such as
trucks, tippers, and buses, and is based in West Bengal.
V-CHEM: ICRA Lowers Rating on INR5cr Cash Credit to B
-----------------------------------------------------
ICRA has revised the long term rating assigned to the INR4.99
crore (reduced from INR10.00 crore) term loan and the INR5.00
crore long-term fund based cash credit facility of V-Chem from
[ICRA]BB- to [ICRA]B. ICRA has reaffirmed the short term rating of
[ICRA]A4 to the INR4.50 crore short term non fund based facilities
of V-Chem.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Fund 5.00 Revised to [ICRA]B
Based-Cash Credit from [ICRA]BB- (Stable)
Long Term Fund 4.99 Revised to [ICRA]B
Based-Term Loan from [ICRA]BB- (Stable)
Short Term Non-
Fund based Limits 4.50 [ICRA]A4 reaffirmed
The rating revision takes into consideration the continued net
losses since FY 2013 on account of the small scale of operations
of the firm and consequent under recovery of fixed costs; the
ratings also take into account the company's eroded networth and
weak coverage indicators. Further, the ratings continue to factor
in the high dependence on single a client i.e. the group entity
FPGPL, which is the firm's major customer; and on a single
commoditized product, PAP. The ratings also take into
consideration the vulnerability of the firm's profitability to
price fluctuations given its limited ability to adequately pass on
increase in raw material prices in a highly competitive industry.
The ratings also factor in the adverse potential impact on net
worth and gearing levels in case of any substantial withdrawal
from capital account given the entity's constitution as a
partnership firm.
The ratings, however, favourably consider the long standing
experience of promoters in the pharmaceutical industry and
established presence of V-Chem's major customer, FPGPL, in the
domestic Paracetamol market with reputed clients like
GlaxoSmithKline Pharmaceuticals Limited, Sanofi-Aventis group and
Johnson and Johnson. The ratings also factor in the favourable
location in industrial area with easy availability of raw
materials, power, water etc.
V-Chem was established as a partnership firm in 2010 to
manufacture 4-CAP (4 Chloro 2 amino phenol), which was
discontinued in April 2013. The firm currently manufactures PAP
(Para Amino Phenol) which is the key raw material for
manufacturing paracetamol. The manufacturing unit located in
Jhagadia, Gujarat has a production capacity of 180 MT per month.
Recent Results
For the year ended March 31, 2014, the firm reported an operating
income of INR17.93 crore and net loss of INR2.39 crore as compared
to an operating income of INR0.09 crore and net loss of INR3.06
crore in FY 2013. Further in the first eight months of FY 2015,
the firm reported an operating income of INR16.18 crore and net
loss of INR1.44 crore (as per unaudited provisional numbers).
V3 KNITTING: CRISIL Assigns B Rating to INR57.5MM Term Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of V3 Knitting Co (V3).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 12.5 CRISIL B/Stable
Rupee Term Loan 57.5 CRISIL B/Stable
The rating reflects V3's susceptibility to risks, particularly
related to offtake, associated with its ongoing project and its
expected leveraged capital structure during its initial stage of
operations. These rating weaknesses are partially offset by its
promoters' extensive experience in the textile industry.
Outlook: Stable
CRISIL believes that V3 will benefit over the medium term from its
promoters' extensive industry experience. The outlook may be
revised to 'Positive' if the firm stabilises its operations at its
proposed plant in time and achieves significant revenue and
profitability. Conversely, the outlook may be revised to
'Negative' if V3 faces considerable delay in commencement of
operations, generates low cash accruals during its initial phase
of operations, or witnesses a substantial increase in its working
capital requirements, resulting in weak liquidity.
Established in 2014, V3 is setting-up three knitting machines of
total annual installed capacity of 1.5 million metres of fabric in
Surat (Gujarat). The firm is promoted by Mr Rajiv Bhatia, Ms.
Jayshree Rajan Mehra and Mr. Pratik Chataniya, who have over 35
years of experience in the textile business.
VEDIK ISPAT: CRISIL Reaffirms B+ Rating on INR380MM Term Loan
-------------------------------------------------------------
CRISIL's ratings on long-term bank loan facilities of Vedik Ispat
Private Limited (VIPL) continues to reflect the extensive
experience of VIPL's promoters in the steel products industry and
their continued funding support to the company. These rating
strengths are partially offset by VIPL's moderate financial risk
profile marked by moderate debt protection metrics, its modest
scale of operations in the highly competitive steel manufacturing
industry, and large working capital requirements.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 80 CRISIL B+/Stable (Reaffirmed)
Cash Credit-Stock 120 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 10 CRISIL B+/Stable (Reaffirmed)
Term Loan 380 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that VIPL 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
sizeable growth in its revenue and profitability margins,
supported by efficient working capital management, thus improving
its financial risk profile. Conversely, the outlook may be revised
to 'Negative' if VIPL's debt protection metrics weaken because of
low profitability margins or if it undertakes any debt-funded
capital expenditure programme.
VIPL, incorporated in 1992, was a dormant company till 2010. In
2010, it started a project to set up a hot- and cold-rolled sheets
facility. The company started commercial production in January
2011. The operations of the company are managed by Mr. Narendra
Bhutra. The company has recently added a stainless steel re-
rolling capacity that is expected to commence commercial
operations in April 2015.
VERA INDUSTRIES: CRISIL Places B Rating on INR75MM Cash Credit
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Vera Industries (VI). The rating reflects VI's
limited track record of operations and average financial risk
profile marked by leveraged capital structure. These rating
weaknesses are partially offset by the extensive experience of
promoters in agro commodity industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Rupee Term Loan 7.5 CRISIL B/Stable
Cash Credit 75 CRISIL B/Stable
Proposed Long Term
Bank Loan Facility 2.5 CRISIL B/Stable
Outlook: Stable
CRISIL believes that VI will maintain its business risk profile
over the medium term backed by extensive experience of promoters
in agro commodity industry. The outlook may be revised to
'Positive' if the firm significantly increases its net cash
accruals on a sustainable basis along with sustenance of working
capital parameters, leading to improved capital structure.
Conversely, the outlook may be revised to 'Negative' in case of
lower than expected accruals or any debt funded capital
expenditure resulting in significant weakening of capital
structure or in case of increase in working capital requirements
leading to stretch in liquidity profile.
Incorporated in 2014, VI, is a Punjab-based company that is
primarily engaged in manufacturing of cattle feed. The firm's
operations are being managed by Mr. Rakesh Kumar and his father
Mr. Vijay Kumar. The manufacturing facility is located at Muktsar
(Punjab). The firm has started operations in October 2014.
VERONICA MARINE: CRISIL Ups Rating on INR8.9MM LT Loan to B
-----------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facility of
Veronica Marine Exports Pvt Ltd (VMEPL; a part of the CEC group)
to 'CRISIL B/Stable' from 'CRISIL B-/Stable', while reaffirming
its rating on the company's short-term facilities at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bill Discounting 50 CRISIL A4 (Reaffirmed)
Long Term Loan 8.9 CRISIL B/Stable (Upgraded
from 'CRISIL B-/Stable')
Packing Credit 125.5 CRISIL A4 (Reaffirmed)
The rating upgrade reflects CRISIL's belief that the CEC group
will sustain its improved liquidity over the medium term,
supported by adequate cash accruals to meet repayment obligations.
The group has also enhanced its working capital facilities which
would be sufficient to meet its incremental working capital
requirements. The CEC group is expected to post annual cash
accruals of INR33 million to INR35 million over the medium term,
which will be sufficient to meet its term loan repayment
obligations of INR8 million to INR12 million.
The ratings, however, continue to reflect the CEC group's below-
average financial risk profile, marked by high gearing and weak
debt protection metrics, and its working-capital-intensive
operations. The ratings also factor in the group's exposure to
risks inherent in the seafood exports industry. These rating
weaknesses are partially offset by its established brand in this
industry.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles VMEPL and Capithan Exporting Company
(CEC). This is because both entities, together referred to as the
CEC group, are in the same line of business and have common
promoters and fungible funds.
Outlook: Stable
CRISIL believes that the CEC group will continue to benefit over
the medium term from its healthy relationships with suppliers and
customers. The outlook may be revised to 'Positive' if the group
further improves its working capital management while achieving a
substantial increase in its cash accruals, resulting in improved
financial risk profile. Conversely, the outlook may be revised to
'Negative' in case of pressure on the group's liquidity, driven
most likely by large working capital requirements, debt-funded
capital expenditure, or low cash accruals.
Set up in 1974 and promoted by Mr. Alphonse Joseph, the CEC group
processes and exports cuttlefish, peeled un-deveined shrimp, fin
fish, shell fish, and cooked/blanched fish.
VICTORA AUTO: CRISIL Suspends B+ Rating on INR100MM Cash Loan
-------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Victora Auto Pvt Ltd (VAPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bill Discounting 290 CRISIL A4
Cash Credit 100 CRISIL B+/Stable
Letter of Credit 75 CRISIL A4
The suspension of ratings is on account of non-cooperation by VAPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, VAPL is yet to
provide adequate information to enable CRISIL to assess VAPL'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'.
VAPL was incorporated in 1991. The company, promoted by Mr.
Hardeep Singh Banga and Mr. Satinder Singh Banga, manufactures
various auto sheet-metal components, including car seat frames,
exhaust system components for cars and large commercial vehicles,
car door sashes, and engine heat-shield components at its unit in
Sikri (Haryana). VAPL is a Tier-II supplier, catering to Tier-I
auto component manufacturers, which, in turn, supply to original
equipment manufacturers.
VIKROMAITIC STEELS: CRISIL Suspends D Rating on INR60MM Loan
------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Vikromaitic Steels Pvt Ltd (VSPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 60 CRISIL D
Proposed Long Term
Bank Loan Facility 23 CRISIL D
Term Loan 7 CRISIL D
The suspension of ratings is on account of non-cooperation by VSPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, VSPL is yet to
provide adequate information to enable CRISIL to assess VSPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.
Incorporated in 1996, VSPL is promoted by Mr. Jaiprakash Choudhary
and his family members. The company has a manufacturing facility
in Deogarh (Jharkhand) with capacity of 15,000 tonnes per annum
(tpa) of thermo-mechanically treated (TMT) bars and a furnace with
capacity to produce 21,000 tpa of mild steel ingots.
====================
N E W Z E A L A N D
====================
KIWI FORESTRY: Truckers Mull Filing Legal Suit Over Collapse
------------------------------------------------------------
Imran Ali at The Northern Advocate reports that Whangarei-based
trucking companies owed nearly NZ$200,000 by two failed logging
firms are demanding a meeting with directors of both businesses.
They are also calling for more detailed financial information and
some answers, the report says.
The Northern Advocate relates that the non-secured creditors
throughout New Zealand have not ruled out a class action against
HarvestPro and Smith and Davies New Zealand to recover
NZ$1.7 million they are owed.
The report says Seven Northland trucking companies are owed
NZ$192,916.
The logging firms -- both 100 per cent-owned subsidiaries of Kiwi
Forestry International -- owe about NZ$26 million to secured and
non-secured creditors, the report notes.
According to the report, directors Andrew Chalmers and Zane
Cleaver have proposed to pay non-secured creditors 20 cents for
every dollar of debt as a full and final settlement to be paid
within 20 working days of its approval.
The Northern Advocate says Whangarei trucker Simon Reid, who is
owed NZ$25,107, has written to both companies on behalf of the
creditors.
He expressed bitter disappointment at the failure of the companies
to provide financial information, says The Northern Advocate.
"We have been asked to sustain a significant loss on the basis of
flawed information and procedures," he said in a letter to Brent
Hempel, who has been appointed by the board to facilitate the
proposal, the report relays.
The Northern Advocate says Mr. Reid pointed to alleged flaws in
the proposal and the way any postal ballot, which would determine
whether they would accept the 20 per cent payment, was conducted.
He said voting papers that were circulated to non-secured
creditors gave a short response time and the results of the postal
ballot were not available more than one week after voting closed,
the report relates.
After having received professional advice from an experienced
chartered accountant who specialised in insolvency matters,
Mr. Reid said it was doubtful the directors' proposal met the
criteria laid down in the Companies' Act, according to the report.
"It is our right to know why the business has failed and where the
assets have gone," the report quotes Mr. Reid as saying.
"Many of us believe there is more equity in the plant and
equipment than we are being led to believe and we consider it
appropriate that the directors front up and provide full and frank
disclosures of why the business is in the state it is, what has
happened to the money and why we should be asked to take such a
substantial discount," he said.
The report adds Mr. Reid warned the directors the issue would not
go away and the creditors were considering options, including the
involvement of a liquidator and legal action.
================
S R I L A N K A
================
SRI LANKA: Fitch Affirms 'BB-' IDR; Outlook Stable
--------------------------------------------------
Fitch Ratings has affirmed Sri Lanka's Long-Term Foreign and Local
Currency Issuer Default Ratings at 'BB-'. The issue ratings on
Sri Lanka's senior unsecured foreign and local currency bonds are
also affirmed at 'BB-'. The Outlooks on the Long-Term IDRs are
Stable. The Country Ceiling is affirmed at 'BB-' and the Short-
Term Foreign Currency IDR at 'B'.
KEY RATING DRIVERS
The affirmation of Sri Lanka's sovereign ratings with Stable
Outlooks reflects the following key factors:
-- Orderly and peaceful political transition. Sri Lanka
enjoyed a smooth political transition following
presidential elections in January 2015, reinforcing
perceptions of a functioning democracy with relatively
strong institutions by 'BB' standards. However,
uncertainties remain about the timing and outcome of
parliamentary elections, and the implications for
effective policymaking in the future.
-- Favourable GDP growth. Sri Lanka continues to post strong
economic growth of 7.5% (five-year average), far exceeding
the 'BB' median of 3.9%. However, with low foreign direct
investment, growth is heavily dependent on external
borrowing, while the government's "pro-growth" bias has
constrained improvements in Sri Lanka's fiscal and current
account deficits and weakened policy coherence and
credibility. Recent monetary easing and continued strong
credit growth lend further support to this view.
-- Weak balance of payments. Falling oil prices should play
to Sri Lanka's advantage, helping to contain the current
account deficit, as should strong remittances and tourism,
while net non-resident inflows into the domestic debt
market have remained positive. Even so, heavy external
debt repayments have led to a drawdown of international
reserves from USD10bn at end-April 2014 to less than
USD7bn at end-March 2015, raising concerns about external
liquidity, particularly in the face of expected monetary
tightening by the US Federal Reserve.
-- External Borrowing Strategy. Fitch expects that Sri Lanka
will succeed in rebuilding international reserves to
USD10bn by the end of 2015 through a combination of renewed
borrowing on international capital markets, the exercise of
foreign currency swaps with the Indian and Chinese central
banks, and onshore borrowing through Sri Lanka Development
Bonds. Nonetheless, there are risks that may derail this
strategy, including a potential rise in domestic political
uncertainty and an adverse shift in investor sentiment,
which led Sri Lanka to abort plans to borrow in
international capital markets in 1Q15.
-- Public finances remain a credit weakness. Sri Lanka's
fiscal metrics are a standout relative to the 'BB'
category, notwithstanding a reduction in general government
deficits to around 5% in 2014 from 8% of GDP in 2010.
Narrower government deficits have contributed to a fall in
public debt, despite a weaker Sri Lanka rupee, which drives
up the local currency component of external public debt.
Still, gross general government debt remains high at about
75% of GDP at end-2014 and Fitch believes that fiscal
consolidation could stall in 2015-16 as expenditure rises
and revenues remain lacklustre. An interim 2015 budget
contained a number of one-off measures that have hurt
business confidence and did little to address the lack of
a medium-term fiscal framework.
Sri Lanka's ratings are supported by these factors:
-- A clean external debt servicing record, which stands out
among 'BB' peers.
-- Levels of basic human development, including education,
health and literacy, are relatively high, as indicated by a
favorable UN Human Development Index score. Among
sovereigns rated by Fitch, Sri Lanka falls in the 61st
percentile, which is much higher than the 'BB' median
of 41.
RATING SENSITIVITIES
The Outlook remains Stable. Fitch's current assessment therefore
does not anticipate developments with a high likelihood of leading
to a rating change.
The main factors that individually or collectively could trigger a
negative rating action are:
-- Increase in external vulnerability driven by a sharp
decline in FX reserves due to, for instance, reduced
international market access and/or sudden reversal in
portfolio inflows.
-- Deterioration in policy coherence and credibility leading
to a widening of macroeconomic imbalances and a loss of
investor confidence
-- A deterioration in public finances that leads to wider
fiscal deficits and increases in debt
The main factors that individually or collectively could trigger a
positive rating action are:
-- Predictable and robust policy framework following upcoming
parliamentary elections that is consistent with stable and
low inflation, is in line with peers, and leads to a
prolonged period of real GDP growth.
-- Sustained smaller current account deficits with higher
levels of non-debt capital inflows (foreign direct
investment) and an increase in foreign exchange reserves
-- Improvement in Sri Lanka's public finances underpinned by a
credible medium-term fiscal consolidation strategy
including a broadening in the general government revenue
base.
KEY ASSUMPTIONS
-- There is no renewal in the civil conflict that previously
lasted 26 years and ended in 2009.
-- Global economic assumptions are consistent with Fitch's
Global Economic Outlook.
===============
X X X X X X X X
===============
* Moody's Says Most High-Yield Firms Can Stand US$ Appreciation
---------------------------------------------------------------
Moody's Investors Service said that all but six of the 49 high-
yield non-financial corporates it rates in South and Southeast
Asia with US dollar debt have mitigants in place against the risks
from their local currencies depreciating by up to 20%.
"Twenty-five of the high-yield corporates we rate in the region
have nearly all of their revenue and operating expenses
denominated in US dollars, which provides them with a natural
hedge against a sustained US dollar appreciation," says Annalisa
Di Chiara, a Moody's Vice President and Senior Analyst.
"Another eight companies have financial hedges in place to reduce
the negative impact of local currency depreciation against the US
dollar, three have a mix of natural and financial hedges, and
seven have such low exposure to US dollar debt that mitigants
aren't necessary," adds Di Chiara.
Di Chiara was speaking on the release of a new Moody's report on
South and Southeast Asian High-Yield Corporates, entitled "Most
Rated Companies Have Mitigants Against US Dollar Debt Exposure".
Moody's report notes that four of the six exposed companies --
Indonesian corporates Media Nusantara Citra (Ba3 stable), MNC Sky
Vision (B1 stable) and MNC Investama Tbk (B1 stable), and
Bangladesh's Banglalink Digital Communications Limited (B1 stable)
-- have some cushion to protect credit quality in the form of low
leverage or an ability to extract dividends from subsidiaries.
But two of the six companies are more vulnerable to a sustained
currency depreciation, says Moody's. Gajah Tunggal Tbk's (B2
stable) lack of mitigants against currency swings contributed to
an increase in leverage during 2014. And Indian telecom operator
Reliance Communications Limited (Ba3 stable), with about 66% of
its total debt in US dollars, does not have significant mitigants
in place either.
Over the last 12 months, the Indonesian rupiah and Indian rupee
have depreciated roughly 12% and 13% against the US dollar. The
vast majority of the high-yield corporates in the region are
subject to one of these currencies.
Total US dollar debt for the 49 rated companies totaled $56.5
billion at year-end 2014, representing about 53% of their $106.5
billion in total outstanding debt.
Moody's report is an update to the our report - South and
Southeast Asian High-Yield Corporates: Most High-Yield Rated
Corporates Can Manage Foreign Currency Debt Exposure - published
in 2014, which included estimated data through year-end 2013.
Since then, the portfolio's total debt outstanding and debt
denominated in US dollars have increased. In addition, the number
of companies without sufficient hedges against their significant
US dollar debt exposure has increased to six from four.
* Large Companies with Insolvent Balance Sheets
-----------------------------------------------
Total
Total Shareholders
Assets Equity
Company Ticker (US$MM) (US$MM)
------- ------ ------ ------------
AUSTRALIA
ACONEX LTD ACX 36.38 -152.68
ADCORP AUSTRALIA AAU 17.86 -0.81
ATLANTIC LTD ATI 64.03 -517.87
AUSTRALIAN ZI-PP AZCCA 16.99 -71.67
AUSTRALIAN ZIRC AZC 16.99 -71.67
AXXIS TECHNOLOGY AYG 19.18 -1.88
BIRON APPAREL LT BIC 19.71 -2.22
BLUESTONE GLOBAL BUE 46.32 -2.40
BRIDGE GLOBAL CA BGC 19.38 -121.51
BULLETPROOF GROU BPF 11.11 -2.99
CLARITY OSS LTD CYO 13.99 -15.57
CONTINENTAL COAL CCC 141.26 -6.69
IPH LTD IPH 22.71 -7.54
LOVISA HOLDINGS LOV 19.02 -3.43
MBD CORP LTD MBD 14.63 -0.20
MIRABELA NICKEL MBN 158.54 -375.82
NORSEMAN GOLD PL NGX 36.28 -43.40
OPUS GROUP LTD OPG 63.26 -8.99
RIVERCITY MOTORW RCY 386.88 -809.13
RUTILA RESOURCES RTA 34.45 -3.90
SAVCOR GRP LTD SAV 25.90 -10.32
SIGNATURE METALS SBL 33.09 -18.85
SPHERE MINERALS SPH 108.81 -64.95
STERLING PLANTAT SBI 59.64 -12.67
STONE RESOURCES SHK 21.76 -14.91
SUBZERO GROUP LT SZG 31.95 -3.19
CHINA
ANHUI GUOTONG-A 600444 75.07 -7.31
BAIOO 2100 88.34 -3.21
CHINA ESSENCE GR CESS 48.99 -108.56
GCL SYSTEM INT-A 2506 577.79 -465.36
JIANGXI CHANG-A 600228 109.53 -11.09
LINEKONG INTERAC 8267 40.79 -112.57
LUOYANG GLASS-A 600876 203.45 -2.05
LUOYANG GLASS-H 1108 203.45 -2.05
NANNING CHEMIC-A 600301 257.94 -14.09
SHAANXI QINLIN-A 600217 339.47 -24.55
SHANG BROAD-A 600608 39.94 -0.31
SONGLIAO AUTO -A 600715 27.06 -6.12
TIANGE 1980 139.51 -13.82
WUHAN BOILER-B 200770 193.47 -235.12
XIAKE COLOR-A 2015 268.17 -18.47
CHINA HEALTHCARE 673 26.86 -17.33
CHINA MINING RES 340 97.56 -1.90
CHINA OCEAN SHIP 651 315.16 -76.51
CNC HOLDINGS 8356 50.95 -10.22
GR PROPERTIES LT 108 17.83 -52.36
GRANDE HLDG 186 194.96 -302.44
HARMONIC STR 33 33.31 -2.82
MASCOTTE HLDGS 136 17.72 -4.61
TITAN PETROCHEMI 1192 422.49 -1,073.54
INDONESIA
APAC CITRA CENT MYTX 174.01 -17.22
ARPENI PRATAMA APOL 166.39 -336.11
ASIA PACIFIC POLY 323.36 -862.79
BAKRIE & BROTHER BNBR 937.98 -160.00
BAKRIE TELECOM BTEL 627.41 -271.18
BENTOEL INTL INV RMBA 854.30 -17.77
BERAU COAL ENERG BRAU 1,876.65 -29.46
BERLIAN LAJU TAN BLTA 766.11 -1,173.91
BERLIAN LAJU TAN BLTA 766.11 -1,173.91
BORNEO LUMBUNG BORN 1,050.10 -541.61
BUMI RESOURCES BUMI 6,595.57 -320.93
ICTSI JASA PRIMA KARW 53.53 -10.11
JAKARTA KYOEI ST JKSW 24.64 -34.00
MERCK SHARP DOHM SCPI 92.25 -0.08
ONIX CAPITAL TBK OCAP 13.75 -2.96
RENUKA COALINDO SQMI 15.99 -0.30
SUMALINDO LESTAR SULI 77.28 -34.38
TRUBA ALAM ENG TRUB 216.87 -34.67
UNITEX TBK UNTX 20.62 -17.28
INDIA
ABHISHEK CORPORA ABSC 53.66 -25.51
AGRO DUTCH INDUS ADF 85.09 -22.81
ALPS INDUS LTD ALPI 201.29 -41.70
ARTSON ENGR ART 11.64 -10.64
ASHAPURA MINECHE ASMN 162.39 -16.64
ASHIMA LTD ASHM 63.23 -48.94
ATV PROJECTS ATV 48.47 -43.93
BELLARY STEELS BSAL 451.68 -108.50
BENZO PETRO INTL BPI 26.77 -1.05
BHAGHEERATHA ENG BGEL 22.65 -28.20
BHARATI SHIPYARD BHSL 1,428.69 -17.76
BINANI INDUS LTD BZL 1,163.38 -38.79
BLUE BIRD INDIA BIRD 122.02 -59.13
CELEBRITY FASHIO CFLI 24.96 -8.26
CHESLIND TEXTILE CTX 20.51 -0.03
CLASSIC DIAMONDS CLD 66.26 -6.84
COMPUTERSKILL CPS 14.90 -7.56
DCM FINANCIAL SE DCMFS 18.46 -9.46
DFL INFRASTRUCTU DLFI 42.74 -6.49
DIGJAM LTD DGJM 99.41 -22.59
DISH TV INDIA DITV 462.53 -52.19
DISH TV INDI-SLB DITV/S 462.53 -52.19
DUNCANS INDUS DAI 122.76 -227.05
ELECTROTHERM IND ELT 501.15 -96.22
ENSO SECUTRACK ENSO 15.57 -0.46
EURO CERAMICS EUCL 110.62 -6.83
EURO MULTIVISION EURO 36.94 -9.95
FERT & CHEM TRAV FCT 314.24 -76.26
GANESH BENZOPLST GBP 44.05 -15.48
GANGOTRI TEXTILE GNTX 54.67 -14.22
GOKAK TEXTILES L GTEX 48.71 -5.00
GOLDEN TOBACCO GTO 97.40 -18.24
GSL INDIA LTD GSL 29.86 -42.42
GSL NOVA PETROCH GSLN 16.53 -1.31
GUJARAT STATE FI GSF 15.26 -304.68
GUPTA SYNTHETICS GUSYN 44.18 -6.34
HARYANA STEEL HYSA 10.83 -5.91
HEALTHFORE TECHN HTEC 14.74 -46.64
HINDUSTAN ORGAN HOC 57.24 -51.76
HINDUSTAN PHOTO HPHT 49.58 -1,832.65
HIRAN ORGOCHEM HO 14.56 -4.59
HMT LTD HMT 106.62 -454.42
ICDS ICDS 13.30 -6.17
INDAGE RESTAURAN IRL 15.11 -2.35
INDOSOLAR LTD ISLR 193.78 -6.91
INTEGRAT FINANCE IFC 49.83 -51.32
JCT ELECTRONICS JCTE 80.08 -76.70
JENSON & NIC LTD JN 16.49 -71.70
JET AIRWAYS IND JETIN 2,856.84 -697.07
JET AIRWAYS -SLB JETIN/S 2,856.84 -697.07
JOG ENGINEERING VMJ 45.90 -5.28
KALYANPUR CEMENT KCEM 23.39 -42.66
KERALA AYURVEDA KERL 13.97 -1.69
KIDUJA INDIA KDJ 11.16 -3.43
KINGFISHER AIR KAIR 515.93 -2,371.26
KINGFISHER A-SLB KAIR/S 515.93 -2,371.26
KITPLY INDS LTD KIT 14.77 -58.78
KLG SYSTEL LTD KLGS 40.64 -27.37
KSL AND INDUSTRI KSLRI 269.42 -14.19
LML LTD LML 43.95 -78.18
MADHUCON PROJECT MDHPJ 1,226.74 -21.90
MADRAS FERTILIZE MDF 289.78 -34.43
MAHA RASHTRA APE MHAC 14.49 -12.96
MALWA COTTON MCSM 44.14 -24.79
MAWANA SUGAR MWNS 142.07 -32.88
MODERN DAIRIES MRD 38.61 -3.81
MOSER BAER INDIA MBI 727.13 -165.63
MOSER BAER -SLB MBI/S 727.13 -165.63
MPL PLASTICS LTD MPLP 17.67 -51.22
MTZ POLYFILMS LT TBE 31.94 -2.57
MURLI INDUSTRIES MRLI 262.39 -38.30
MYSORE PAPER MSPM 87.99 -8.12
NATL STAND INDI NTSD 22.09 -0.73
NAVCOM INDUS LTD NOP 10.19 -3.53
NICCO CORP LTD NICC 71.84 -4.91
NICCO UCO ALLIAN NICU 23.25 -83.90
NK INDUS LTD NKI 141.35 -7.71
NRC LTD NTRY 55.11 -52.44
NUCHEM LTD NUC 24.72 -1.60
PANCHMAHAL STEEL PMS 51.02 -0.33
PARAMOUNT COMM PRMC 124.96 -0.52
PARASRAMPUR SYN PPS 99.06 -307.14
PAREKH PLATINUM PKPL 61.08 -88.85
PIONEER DISTILLE PND 53.74 -5.62
PREMIER INDS LTD PRMI 11.61 -6.09
PRIYADARSHINI SP PYSM 20.80 -2.28
QUADRANT TELEVEN QDTV 105.10 -183.38
QUINTEGRA SOLUTI QSL 16.76 -17.45
RADHA MADHAV COR RMCL 10.33 -48.95
RAMSARUP INDUSTR RAMI 433.89 -89.28
RATHI ISPAT LTD RTIS 44.56 -3.93
RELIANCE MED-SLB RMW/S 279.61 -144.47
RENOWNED AUTO PR RAP 14.12 -1.25
RMG ALLOY STEEL RMG 66.61 -12.99
ROYAL CUSHION RCVP 14.70 -75.18
SAAG RR INFRA LT SAAG 12.54 -4.93
SADHANA NITRO SNC 16.74 -0.58
SANATHNAGAR ENTE SNEL 49.23 -6.78
SANCIA GLOBAL IN SGIL 53.12 -30.47
SBEC SUGAR LTD SBECS 92.44 -5.61
SERVALAK PAP LTD SLPL 61.57 -7.63
SHAH ALLOYS LTD SA 168.13 -81.60
SHALIMAR WIRES SWRI 21.39 -24.28
SHAMKEN COTSYN SHC 23.13 -6.17
SHAMKEN MULTIFAB SHM 60.55 -13.26
SHAMKEN SPINNERS SSP 42.18 -16.76
SHREE GANESH FOR SGFO 44.50 -2.89
SHREE KRISHNA SHKP 14.62 -0.92
SHREE RAMA MULTI SRMT 38.90 -4.49
SHREE RENUKA SUG SHRS 2,162.34 -82.52
SHREE RENUKA-SLB SHRS/S 2,162.34 -82.52
SIDDHARTHA TUBES SDT 44.95 -15.37
SIMBHAOLI SUGARS SBSM 268.76 -54.47
SPICEJET LTD SJET 489.96 -170.22
SQL STAR INTL SQL 10.58 -3.28
STATE TRADING CO STC 556.35 -392.74
STELCO STRIPS STLS 11.65 -5.73
STI INDIA LTD STIB 21.69 -2.13
STL GLOBAL LTD SHGL 30.73 -5.62
STORE ONE RETAIL SORI 15.48 -59.09
SURYA PHARMA SUPH 370.28 -9.97
SUZLON ENERG-SLB SUEL/S 5,061.62 -53.02
SUZLON ENERGY SUEL 5,061.62 -53.02
TAMILNADU JAI TNJB 17.07 -1.00
TATA METALIKS TML 122.76 -3.30
TATA TELESERVICE TTLS 1,311.30 -138.25
TATA TELE-SLB TTLS/S 1,311.30 -138.25
TIMEX GROUP IND TIMX 20.14 -0.42
TIMEX GROUP-PREF TIMXP 20.14 -0.42
TODAYS WRITING TWPL 18.58 -25.67
TRIUMPH INTL OXIF 58.46 -14.18
TRIVENI GLASS TRSG 19.71 -10.45
TUTICORIN ALKALI TACF 17.17 -22.86
UDAIPUR CEMENT W UCW 11.38 -10.53
UNIFLEX CABLES UFCZ 47.46 -7.49
UNIWORTH LTD WW 149.50 -151.14
UNIWORTH TEXTILE FBW 22.54 -35.03
USHA INDIA LTD USHA 12.06 -54.51
VANASTHALI TEXT VTI 14.59 -5.80
VENUS SUGAR LTD VS 11.06 -1.08
WANBURY LTD WANB 141.86 -3.91
WEBSOL ENERGY SY WESL 105.10 -23.79
JAPAN
GOYO FOODS INDUS 2230 11.13 -1.81
LCA HOLDINGS COR 4798 21.73 -1.75
OPTROM INC 7824 15.63 -4.50
PIXELA CORP 6731 13.97 -0.02
KOREA
HYUNDAI CEMENT 6390 454.92 -262.92
SAMWHAN CORP 360 624.46 -9.54
SAMWHAN CORP-PRE 365 624.46 -9.54
SHINIL ENG CO 14350 199.04 -2.53
STX CORPORATION 11810 1,275.13 -484.08
STX ENGINE CO LT 77970 1,170.67 -62.72
TEC & CO 8900 139.98 -16.61
TONGYANG INC 1520 1,068.15 -452.52
TONGYANG INC-2PF 1527 1,068.15 -452.52
TONGYANG INC-3RD 1529 1,068.15 -452.52
TONGYANG INC-PFD 1525 1,068.15 -452.52
MALAYSIA
BIOSIS GROUP BHD BGH 10.39 -7.66
DING HE MINING 705 48.83 -57.14
HAISAN RESOURCES HRB 23.80 -20.90
HIGH-5 CONGLOMER HIGH 29.86 -65.83
LION CORP BHD LION 1,128.18 -160.72
ML GLOBAL BHD MLG 13.23 -4.07
OCTAGON CONSOL OCTG 14.55 -53.99
PERWAJA HOLDINGS PERH 515.46 -163.63
NEW ZEALAND
PULSE ENERGY LTD PLE 15.04 -4.52
PHILIPPINES
CYBER BAY CORP CYBR 13.68 -25.95
DFNN INC DFNN 14.84 -2.76
FILSYN CORP A FYN 23.11 -11.69
FILSYN CORP. B FYNB 23.11 -11.69
GOTESCO LAND-A GO 21.76 -19.21
GOTESCO LAND-B GOB 21.76 -19.21
METRO GLOBAL HOL MGH 40.90 -15.77
PICOP RESOURCES PCP 105.66 -23.33
STENIEL MFG STN 21.07 -11.96
UNIWIDE HOLDINGS UW 50.36 -57.19
SINGAPORE
CHINA GREAT LAND CGL 12.24 -21.26
GPS ALLIANCE HOL GPS 15.91 -0.61
OCEANUS GROUP LT OCNUS 81.89 -13.92
QT VASCULAR LTD QTVC 17.99 -11.99
SCIGEN LTD-CUFS SIE 46.71 -55.42
SINGAPORE EDEVEL SGE 12.81 -3.18
SINOPIPE HLDS SPIP 146.50 -80.06
TERRATECH GROUP TEGP 13.55 -5.24
UNITED FIBER SYS UFS 46.83 -87.24
THAILAND
ABICO HLDGS-F ABICO/F 15.28 -4.40
ABICO HOLDINGS ABICO 15.28 -4.40
ABICO HOLD-NVDR ABICO-R 15.28 -4.40
ASCON CONSTR-NVD ASCON-R 59.78 -3.37
ASCON CONSTRUCT ASCON 59.78 -3.37
ASCON CONSTRU-FO ASCON/F 59.78 -3.37
BANGKOK RUBBER BRC 77.91 -114.37
BANGKOK RUBBER-F BRC/F 77.91 -114.37
BANGKOK RUB-NVDR BRC-R 77.91 -114.37
BIG CAMERA COP-F BIG/F 19.86 -13.03
BIG CAMERA CORP BIG 19.86 -13.03
BIG CAMERA -NVDR BIG-R 19.86 -13.03
CIRCUIT ELEC PCL CIRKIT 16.79 -96.30
CIRCUIT ELEC-FRN CIRKIT/F 16.79 -96.30
CIRCUIT ELE-NVDR CIRKIT-R 16.79 -96.30
ITV PCL-NVDR ITV-R 36.02 -121.94
K-TECH CONSTRUCT KTECH/F 38.87 -46.47
KTECH CONSTRUCTI KTECH 38.87 -46.47
K-TECH CONTRU-R KTECH-R 38.87 -46.47
KUANG PEI SAN POMPUI 17.70 -12.74
KUANG PEI SAN-F POMPUI/F 17.70 -12.74
KUANG PEI-NVDR POMPUI-R 17.70 -12.74
PAE THAI PUB CO PAE 42.42 -0.28
PAE THAI-FRGN PAE/F 42.42 -0.28
PAE THAI-NVDR PAE-R 42.42 -0.28
PATKOL PCL PK 52.89 -30.64
PATKOL PCL-FORGN PK/F 52.89 -30.64
PATKOL PCL-NVDR PK-R 52.89 -30.64
PROFESSIONAL WAS PRO 10.68 -1.71
PROFESSIONAL-F PRO/F 10.68 -1.71
PROFESSIONAL-N PRO-R 10.68 -1.71
SHUN THAI RUBBER STHAI 13.16 -6.13
SHUN THAI RUBB-F STHAI/F 13.16 -6.13
SHUN THAI RUBB-N STHAI-R 13.16 -6.13
TONGKAH HARBOU-F THL/F 62.30 -1.84
TONGKAH HARBOUR THL 62.30 -1.84
TONGKAH HAR-NVDR THL-R 62.30 -1.84
TRANG SEAFOOD TRS 15.18 -6.61
TRANG SEAFOOD-F TRS/F 15.18 -6.61
TRANG SFD-NVDR TRS-R 15.18 -6.61
TT&T PCL TTNT 169.38 -510.60
TT&T PCL-NVDR TTNT-R 169.38 -510.60
TT&T PUBLIC CO-F TTNT/F 169.38 -510.60
WORLD CORP -NVDR WORLD-R 15.72 -10.10
WORLD CORP PCL WORLD 15.72 -10.10
WORLD CORP PLC-F WORLD/F 15.72 -10.10
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel
Elaine T. Fernandez, Julie Anne L. Toledo, and Peter A. Chapman,
Editors.
Copyright 2015. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000 or Nina Novak at 202-362-8552.
*** End of Transmission ***