/raid1/www/Hosts/bankrupt/TCRAP_Public/150921.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
Monday, September 21, 2015, Vol. 18, No. 186
Headlines
A U S T R A L I A
BBY LTD: Clients to Receive More Information This Week
JAEL INVESTMENTS: First Creditors' Meeting Set For Sept. 30
LR INDUSTRIAL: First Creditors' Meeting Set For Sept. 25
OLDE ENGLISH: First Creditors' Meeting Set For Sept. 25
TIPPER TARPS: First Creditors' Meeting Set For Sept. 28
* Residential Mortgage Delinquencies Decline in NSW, Moody's Says
I N D I A
AMARAVATHI SPINNING: CRISIL Ups Rating on INR70MM Loan to B-
ANNAPURNA CONSTRUCTIONS: CRISIL Cuts Rating on INR30MM Loan to B+
ARUN POLYMERS: CRISIL Reaffirms B+ Rating on INR35MM Loan
BHILAI INSTITUTE: CRISIL Ups Rating on INR97.5MM Term Loan to B
BN PRECAST: CRISIL Reaffirms 'B' Rating on INR77MM LT Loan
C.P. BAGAL: CARE Upgrades Rating on INR5cr LT Loan to BB-
DATTA MEGHE: CRISIL Assigns 'B' Rating to INR70MM Cash Loan
G.M. DALUI: CRISIL Ups Rating on INR50MM Cash Loan to B
GIRINDRA HOSPITALITY: CRISIL Rates INR65MM LT Loan at B+
GNI INFRASTRUCTURE: CRISIL Rates INR170MM Overdraft Loan at B+
HARISUN CERAMIC: CRISIL Assigns 'B' Rating to INR50MM Term Loan
J.D SONS: CARE Reaffirms B+ Rating on INR26.50cr LT Loan
K-LITE INDUSTRIES: CRISIL Assigns B+ Rating on INR42.5MM Loan
KARNATAKA TURNED: CRISIL Reaffirms B Rating on INR56MM LT Loan
MAHAMAYA CASTING: CRISIL Reaffirms B+ Rating on INR82.5MM Loan
MARGO PLYWOOD: CARE Upgrades Rating on INR10.49cr LT Loan to B
NATIONAL INDUSTRIES: CRISIL Assigns B+ Rating to INR50MM Loan
OM SUGARS: CARE Reaffirms 'B' Rating on INR42cr LT Loan
PCM CEMENT: CARE Raises Rating on INR261.30cr LT Loan to BB-
PRINTWELL OFFSET: CARE Reaffirms B Rating on INR7.73cr LT Loan
SAMRAT FORGINGS: CRISIL Reaffirms B+ Rating on INR168MM Loan
SHIVA SPECIALITY: CARE Reaffirms C+ Rating on INR69.89cr Loan
SHREE RAM: CRISIL Reaffirms B+ Rating on INR97.5MM Cash Credit
SUMAN AGRITECH: CARE Reaffirms 'D' Rating on INR53.50cr ST Loan
TIRUPUR TEXTILES: CRISIL Reaffirms B- Rating on INR635MM Loan
UNITED EXPORTS: CRISIL Cuts Rating on INR350MM Cash Loan to D
UNIVERSAL STAINLESS: CARE Assigns 'B' Rating to INR8.75cr LT Loan
VENUS REMEDIES: CRISIL Reaffirms 'D' Rating on INR1.46BB Loan
VIJAY BREEDING: CRISIL Ups Rating on INR40.5MM Cash Loan to 'B+'
YOGINDERA WORSTED: CARE Reaffirms C+ Rating on INR66.18cr Loan
I N D O N E S I A
INDONESIA: To Overhaul Bank Rules to Guard Against Collapses
N E W Z E A L A N D
OPI PACIFIC: Two Directors Get 200 Hours' Community Work
P A K I S T A N
PAKISTAN: Fitch Assigns 'B(EXP)' Rating on Forthcoming US$ Bonds
S O U T H K O R E A
PANTECH CO: To Cut Half of Workforce
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A U S T R A L I A
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BBY LTD: Clients to Receive More Information This Week
------------------------------------------------------
The Sydney Morning Herald reports that clients of collapsed
stockbroker BBY Limited will receive detailed information on their
position early this week, allowing them to decide whether they
want to participate in legal proceedings ahead of a further NSW
Supreme Court hearing in October.
SMH relates that Judge Paul Brereton on September 18 ordered BBY's
liquidator, KPMG, to make further but minor amendments to an
explanatory memorandum for clients ahead of it being resubmitted
to him and widely distributed early this week. A spate of other
documents and affidavits are also to be made available via KPMG's
website.
According to the report, Justice Brereton expressed discontent at
the way the circular had been redrafted, asking for it to be
further simplified so that a layperson would properly understand
their position.
"I think it still remains difficult for a layperson to understand
all of this," SMH quotes Justice Brereton as saying. "I have
become quite frustrated with the process."
SMH says Justice Brereton also noted that KPMG had made minor
revisions to the range of outcomes clients might expect in their
attempts to retrieve funds. He outlined an anticipated range of 35
cents to 70 cents in the dollar.
The report relates that the revision took into account additional
client entitlements relating to cheques to clients that had been
issued by BBY but not presented at the date of administration. The
prior estimated range was 37 cents to 73 cents in the dollar, SMH
notes.
According to SMH, the range of outcomes take into account various
scenarios such as whether client funds across different product
areas are pooled, receipt of funds held by counterparties, and the
impact of post-appointment deposits into and out of accounts by
receivers PPB Advisory. About AUD3.4 million has already been
received from the ASX and placed in a separate liquidator trust
account, the report notes.
SMH says the numbers have caused friction across different client
groups, including equities, exchange-traded options, futures and
foreign exchange. While pooling of the entire client funds means
all parties would likely receive the same proportional amounts,
outcomes would be much more varied and more favourable for
equities clients if pooling does not occur.
Daryl Williams, QC, for the equities and exchange-traded-options
clients, underscored the point that clients were not creditors of
BBY but beneficiaries of a trust. The hearing will resume on
October 19, SMH discloses.
About BBY
Founded in 1987, BBY Limited is a boutique investment firm that
offers brokerage and financial advisory services. The company
provides merger and acquisition, initial public offering, private
placement, equity trading, and market and business research
services. Additionally, it offers capital raising, restructuring,
due diligence, valuation, relationship management, and clearing
services.
On May 18, the Directors of BBY Limited have appointed KPMG as
Voluntary Administrators. The appointment comes after a number of
run-ins with regulators over its capital requirements and failing
to repay an intraday loan to St George Bank, according to The
Sydney Morning Herald.
KPMG found that clients faced a combined shortfall in their
accounts of AUD16 million, SMH discloses.
JAEL INVESTMENTS: First Creditors' Meeting Set For Sept. 30
-----------------------------------------------------------
Simon Patrick Nelson and Anthony Robert Cant of Romanis Cant were
appointed as administrators of Jael Investments Pty Ltd, trading
as La Porchetta Coolangatta, on Sept. 18, 2015.
A first meeting of the creditors of the Company will be held at
Romanis Cant, Level 2, 106 Hardware Street, in Melbourne, on
Sept. 30, 2015, at 3:00 p.m.
LR INDUSTRIAL: First Creditors' Meeting Set For Sept. 25
--------------------------------------------------------
Raj Khatri & Michael Griffin of Worrells Solvency & Forensic
Accountants were appointed as administrators of LR Industrial
Services Pty Ltd on Sept. 15, 2015.
A first meeting of the creditors of the Company will be held at
Worrells Solvency & Forensic Accountants, Level 8, 102 Adelaide
Street, in Brisbane, Queensland, on Sept. 25, 2015, at 10:30 a.m.
OLDE ENGLISH: First Creditors' Meeting Set For Sept. 25
-------------------------------------------------------
Christopher John Palmer & Bryan Patrick Collis of O'Brien Palmer
were appointed as administrators of Olde English Bakery Pty Ltd on
Sept. 16, 2015.
A first meeting of the creditors of the Company will be held at
the Offices of O'Brien Palmer, Level 14, 9 Hunter Street, in
Sydney, on Sept. 25, 2015, at 11:00 a.m.
TIPPER TARPS: First Creditors' Meeting Set For Sept. 28
-------------------------------------------------------
Nicholas Giasoumi and Shane Leslie Deane of Dye & Co. were
appointed as administrators of Tipper Tarps Australia Pty Ltd on
Sept. 18, 2015.
A first meeting of the creditors of the Company will be held at
the offices of Dye & Co. Pty Ltd, 165 Camberwell Road, in Hawthorn
East, on Sept. 28, 2015, at 11:00 a.m.
* Residential Mortgage Delinquencies Decline in NSW, Moody's Says
-----------------------------------------------------------------
Moody's Investors Service says delinquencies for residential
mortgages decreased in New South Wales (NSW) from May 2014 to May
2015, but increased for most other Australian states and
territories over the same period, despite interest rate cuts.
Moody's analysis is contained in the latest edition of its semi-
annual report "Residential Mortgage Delinquency Map: NSW Improves,
but Most States Deteriorate," authored by Alena Chen, a Moody's
Assistant Vice President.
The report examines mortgage delinquency trends based on states,
regions, and postcodes.
The proportion of Australian residential mortgages that were more
than 30 days in arrears (30-plus delinquency rate) decreased
marginally by four basis points to 1.34% in May 2015 from 1.38% in
May 2014.
"The improvement in Australia-wide delinquencies was largely
driven by a significant decline - 0.29 percentage points - in
delinquencies in NSW, reflecting the state's relatively strong
economic activity and rapidly rising property prices in Sydney,"
says Chen.
"If the pace of house price growth slows in Sydney - or other
areas where the property market has been performing strongly - we
would expect mortgage delinquencies to increase over the long
term," adds Chen.
In contrast to NSW, delinquencies increased in most other
Australian states between May 2014 and May 2015, despite two
interest rate cuts by the Reserve Bank of Australia in this
period.
If NSW was excluded, the weighted average 30-plus delinquency rate
for the rest of the country would increase by 0.08 percentage
points to 1.50% in May 2015 from 1.42% from May 2014.
Mortgage performance varied significantly across regions, says
Moody's.
Delinquency rates increased in 38 regions and decreased in the
remaining 49 regions over the year.
In regions that had deteriorations in delinquencies, 30-plus
delinquencies increased by between 0.01 percentage points and 1.21
percentage points, with the average change being 0.28 percentage
points.
In regions that improved, delinquencies declined by between 0.01
percentage points and 1.01 percentage points, with the average
change being 0.24 percentage points.
The three regions that recorded the biggest increases in
delinquencies -- Fitzroy, located in Queensland close to the Bowen
Basin coal mining region, Darling Downs - Maranoa, located in
southern Queensland and Mandurah, in Western Australia - are
exposed to the mining industry.
Sydney and NSW, where house prices are rising strongly and
economic growth is above the national average, dominated the list
of best performing regions as well as those most-improved.
Delinquencies in the Sydney-South West region declined by 1.01
percentage points, the most of all Australian regions.
=========
I N D I A
=========
AMARAVATHI SPINNING: CRISIL Ups Rating on INR70MM Loan to B-
------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of
Amaravathi Spinning Mills (Rajapalayam) Pvt Ltd (ASMRPL) to
'CRISIL B-/Stable/CRISIL A4' from 'CRISIL D/CRISIL D'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 5.3 CRISIL A4 (Upgraded from
'CRISIL D')
Cash Credit 70.0 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Export Packing 5.0 CRISIL B-/Stable (Upgraded
Credit from 'CRISIL D')
Letter of Credit 20.0 CRISIL A4 (Upgraded from
'CRISIL D')
Proposed Long Term 19.0 CRISIL B-/Stable (Upgraded
Bank Loan Facility from 'CRISIL D')
The improvement was driven by pre-closure of a term loan of around
INR17 million by bringing in unsecured loans. The company's
accrual is expected to improve to around INR10 million in 2015-16
(refers to financial year, April 1 to March 31). The utilisation
of working capital limits improved with faster realisation of
debtors; the debtors are expected to be around 60 days as on March
31, 2016, against about 80 days in previous years.
The ratings reflect ASMRPL`s modest scale and working-capital-
intensive operations, vulnerability to raw material price
volatility, and limited pricing flexibility. The ratings also
factor in its average financial risk profile because of a weak
capital structure and below-average debt protection metrics. These
weaknesses are partially offset by the extensive experience of the
promoters in the cotton yarn industry and their funding support.
Outlook: Stable
CRISIL believes that ASMRPL will continue to benefit over the
medium term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' in case of significant
improvement in the working capital cycle or increase in the scale
of operations along with higher profitability, leading to better
cash accrual and financial risk profile. Conversely, the outlook
may be revised to 'Negative' if the financial risk profile
deteriorates owing to significant decline in revenue or
profitability or further stretch in the working capital cycle or a
large debt-funded capital expenditure.
Incorporated in 1989, ASMRPL manufactures cotton yarn. Its
facility in Rajapalayam (Tamil Nadu) has a capacity of 12,168
spindles. Its operations are spread across Coimbatore, Karur,
Salem, and Erode (all in Tamil Nadu).
ANNAPURNA CONSTRUCTIONS: CRISIL Cuts Rating on INR30MM Loan to B+
-----------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Annapurna Constructions and Transmissions Private Limited (ACTPL)
to 'CRISIL B+/Stable/CRISIL A4' from 'CRISIL BB-/Stable/CRISIL
A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 50 CRISIL A4 (Downgraded from
'CRISIL A4+')
Cash Credit 30 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
Proposed Bank 27 CRISIL A4 (Downgraded from
Guarantee 'CRISIL A4+')
The rating downgrade reflects deterioration in ACTPL's business
risk profile, with decline in revenue resulting in lower-than-
expected net cash accrual. Further, high working capital
requirements has resulted in weak liquidity profile of the
company.
The ratings reflect ACTPL's modest scale and working-capital-
intensive nature of operations, susceptibility to intense
competition in the power transmission segment. These rating
weaknesses are partially offset by the extensive experience of the
promoters in the power-transmission segment, and the company's
above-average financial risk profile, marked by a low gearing and
modest debt protection metrics.
Outlook: Stable
CRISIL believes that ACTPL will continue to benefit over the
medium term from its established track record in the power
transmission segment, supported by the extensive industry
experience of its promoters. The outlook may be revised to
'Positive' if the company executes more projects than expected,
leading to sustained increase in its revenue and operating
profitability and hence to an improvement in its business and
financial risk profile. Conversely, the outlook may be revised to
'Negative' if ACTPL's revenue and operating profitability decline,
or its working capital management deteriorates because of delay in
realisation of receivables from its principal contractors.
Substantial debt-funded capital expenditure, leading to weakening
of its financial risk profile, may also result in a 'Negative'
outlook.
ACTPL was originally established in 1987 as a partnership firm,
which was reconstituted as a private limited company in June 2012.
The company undertakes civil and mechanical works for installation
of extra-high voltage transformers on a turnkey basis. It is
promoted by two brothers, Mr. T.Muralidhar and Mr. Kaladhar.
ACTPL, on a provisional basis, reported a profit after tax (PAT)
of INR3.30 million on net sales of INR83 million for 2014-15
(refers to financial year, April 1 to March 31), against a PAT of
INR2.40 million on net sales of INR65 million for 2013-14.
ARUN POLYMERS: CRISIL Reaffirms B+ Rating on INR35MM Loan
---------------------------------------------------------
CRISIL's ratings on the bank facilities of Arun Polymers (AP)
continues to reflect its below-average financial risk profile,
marked by a small net worth and average debt protection metrics,
and its modest scale of operations in the intensely competitive
polyvinyl chloride (PVC) pipes manufacturing industry. These
rating weaknesses are partially offset by the extensive industry
experience of the firm's promoters and its established
relationships with customers and suppliers.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 1.5 CRISIL A4 (Reaffirmed)
Cash Credit 35.0 CRISIL B+/Stable (Reaffirmed)
Letter of Credit 75.5 CRISIL A4 (Reaffirmed)
Term Loan 24.0 CRISIL B+/Stable (Reaffirmed)
SME Credit 2.5 CRISIL B+/Stable (Reaffirmed)
Proposed Short Term
Bank Loan Facility 9.0 CRISIL A4 (Reaffirmed)
Outlook: Stable
CRISIL believes that AP will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the firm sustainably
improves its scale of operations or profitability, leading to a
better financial risk profile. Conversely, the outlook may be
revised to 'Negative' if AP's financial risk profile, particularly
its liquidity, weakens, most likely because of aggressive debt-
funded expansion, subdued cash accruals, or deterioration in its
working capital management.
AP is a partnership firm set up in 2000 by Mr. P. Thiyagarajan.
The firm manufactures PVC pipes.
For 2014-15 (refers to financial year, April 1 to March 31), AP
reported a profit-after-tax (PAT) of INR5.3 million on revenue of
INR444 million, as against a PAT of INR3.9 million on revenue of
INR417 million.
BHILAI INSTITUTE: CRISIL Ups Rating on INR97.5MM Term Loan to B
---------------------------------------------------------------
CRISIL has upgraded its rating on the bank facility of Bhilai
Institute of Technology Trust (BIIT) to 'CRISIL B/Stable' from
'CRISIL D'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 97.5 CRISIL B/Stable (Upgraded
from 'CRISIL D')
The rating upgrade reflects timely servicing of term debt by BIIT,
backed by improved cash-flow management. The rating continues to
reflect BITT's exposure to risks related regulatory restrictions
in the education sector. These rating weaknesses are partially
offset by BIIT's diverse course offerings, strong reputation, and
moderate financial risk profile, marked by low gearing and
moderate debt protection metrics.
Outlook: Stable
CRISIL believes that BIIT will continue to benefit over the medium
term from the extensive experience of its promoters in the
education sector. The outlook may be revised to 'Positive' if
there is a substantial increase in the trust's operating income
while it maintains its profitability, leading to improvement in
its financial risk profile. Conversely, the outlook may be revised
to 'Negative' if it undertakes a large debt-funded capital
expenditure programme, causing its debt protection metrics and
capital structure to weaken, or if there is a significant drop in
student enrolment at its institutes.
Established in 1986, BITT manages Bhilai Institute of Technology,
Durg (BITD) that was started in 1986 and Bhilai Institute of
Technology, Raipur (BITR) that was started in 2009. BITD offers a
variety of graduate and post-graduate courses in engineering,
business administration, and computer applications, as well as a
doctorate in engineering, chemistry, environmental science, and
applied physics; BITR offers graduate courses in engineering.
BN PRECAST: CRISIL Reaffirms 'B' Rating on INR77MM LT Loan
----------------------------------------------------------
CRISIL's rating on bank facilities of BN Precast Pvt Ltd (BPPL)
continues to reflect BPPL's start up nature of operations and the
company's modest scale of operations and profitability and
aggressive financial risk profile marked by high gearing and
working capital intensive operations. These rating weaknesses are
partially offset by the extensive experience of BPPL's promoters
in the real estate industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 12.6 CRISIL B/Stable (Reaffirmed)
Proposed Long Term 77.0 CRISIL B/Stable (Reaffirmed)
Bank Loan Facility
Term Loan 40.4 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that BPPL will benefit over the medium term from
the extensive industry experience of its promoters. The outlook
may be revised to 'Positive' if the company reports higher-than-
expected revenue and profitability leading to improvement in cash
accruals or if its capital structure improves with infusion of
equity. Conversely, the outlook may be revised to 'Negative' if
BPPL's financial risk profile further weakens on account of large
debt-funded capital expenditure plans or a substantial increase in
the company's working capital requirements leading to
deterioration in its capital structure. Lower-than-expected
accruals leading to pressure on liquidity may also lead to
revision in the outlook to 'Negative'.
Incorporated in January 2013, BPPL manufactures pre-cast concrete
walls. The company is promoted by Mr. Nishant Patel and the
manufacturing unit is located in Ahmedabad.
C.P. BAGAL: CARE Upgrades Rating on INR5cr LT Loan to BB-
---------------------------------------------------------
CARE revokes suspension and upgrades long term rating assigned to
the bank facilities of C.P. Bagal & Company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 5 CARE BB- Suspension
Revoked and rating
revised from CARE B+
Short term Bank Facilities 2.40 CARE A4 Suspension
Revoked and rating
reaffirmed at CARE A4
Rating Rationale
The revision in the long-term rating assigned to the bank
facilities of C. P. Bagal & Company (CPBC) factors in the improved
overall operational and financial risk profile marked by execution
of the work orders resulting in growth in total income and
improved capital structure and debt coverage indicators. The
rating also factors in the satisfactory order book position held
by the firm as on July 30, 2015. The ratings continue to derive
strength from the established operations and wide experience of
the partners in the construction industry.
The ratings, however, remains constrained on account of the small
scale of operations, elongated working capital cycle due to higher
inventory days and the risk associated with the constitution of a
partnership firm. The ratings further take into account the
concentrated order book (OB) towards government contracts and risk
emanating from exposure to the arduous tender driven process for
receiving the same and susceptibility to adverse government
policies regarding spending on infrastructure projects.
The ability of the firm to improve its scale of operations along
with the timely execution of contracts within the envisaged
cost, procurement of new contracts and efficient management of
working capital requirements remain the key rating sensitivity.
CPBC is a partnership firm, established in the year 1993, promoted
by Mr Chandrakant Bagal, Mr Bharat P Bagal and Mr Padmakar P Bagal
as the three partners. The firm is engaged in the construction of
roads and dams on turnkey basis for various government bodies and
local municipal bodies in the state of Maharashtra and is a
registered contractor (Category 1-A) with Public Works Department
(PWD), Government of Maharashtra and undertakes contracts for
roads & irrigation works (dams & canals) on a tender basis mainly
in rural areas of Maharashtra. CPBC had an outstanding order book
of or INR42.11 crore as on August 25, 2015.
DATTA MEGHE: CRISIL Assigns 'B' Rating to INR70MM Cash Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Datta Meghe Institute of Medical Sciences
(DMIMS).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 160 CRISIL A4
Cash Credit 70 CRISIL B/Stable
The ratings reflect DMIMS' below-average financial risk profile
because of weak capital structure and stretched liquidity, and
exposure to intense competition in, and regulatory risks
associated with, the education sector. These rating weaknesses are
partially offset by DMIMS' established regional position supported
by promoters' extensive industry experience, and diversified
revenue streams.
Outlook: Stable
CRISIL believes DMIMS will continue to benefit over the medium
term from its established regional position in the education
sector. The outlook may be revised to 'Positive' if the trust's
revenue and profitability increase significantly, leading to high
cash accrual. Conversely, the outlook may be revised to 'Negative'
if accrual is low because of lower occupancy level in its
institutions or hospital, or if it undertakes large unanticipated
debt-funded capital expenditure programme, leading to
deterioration in financial risk profile, particularly liquidity.
Established in 1988, DMIMS is a public trust registered under the
Bombay Public Trust Act, 1950. The trust offers medical,
engineering, and nursing courses at its nine institutes in
Sawangi-Wardha (Maharashtra); it also runs a teaching hospital.
G.M. DALUI: CRISIL Ups Rating on INR50MM Cash Loan to B
-------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facility of
G.M. Dalui and Sons Pvt Ltd (GMDPL) to 'CRISIL B/Stable' from
'CRISIL B-/Stable', while reaffirming its rating on the short-term
facility at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 20 CRISIL A4 (Reaffirmed)
Bill Discounting 40 CRISIL A4 (Reaffirmed)
Cash Credit 50 CRISIL B/Stable (Upgraded
from 'CRISIL B-/Stable')
Inland/Import
Letter of Credit 20 CRISIL A4 (Reaffirmed)
Proposed Bank
Guarantee 10 CRISIL A4 (Reaffirmed)
The rating upgrade reflects GMDPL improving operating profit
margin; the margin was around 12.52 per cent in 2014-15 against
10.60 per cent in 2013-14 and 7.89 per cent in 2012-13. The net
cash accrual also increased to INR5.4 million in 2014-15 from
INR3.3 million in 2013-14. The current order book of INR260
million provides revenue visibility over the medium term. Though
the working capital cycle improved in 2014-15, it remained
stretched as reflected in high gross current assets of 387 days as
on March 31, 2015, against 483 days in a year earlier. The gearing
too reduced to 2.15 times as on March 31, 2015, from 3.96 times as
on March 31, 2014. CRISIL believes that the healthy order book of
the company, long-standing association with the clients and repeat
orders from them, diversification into specialised water projects
and venturing into export market is expected to boost the revenue
profile as well as profitability margin of the company in the
medium term.
The ratings reflect GMDPL's below-average financial risk profile
because of a small net worth, average gearing, and weak debt
protection metrics. Moreover, the operating margin is susceptible
to volatility in raw material prices. These rating weaknesses are
partially offset by established customer relationships and a
diverse end-user industry base.
Outlook: Stable
CRISIL believes GMDPL will continue to benefit over the medium
term from its established customer base and promoters' extensive
experience in the valves industry. The outlook may be revised to
'Positive' in case of sizeable growth in revenue and improvement
in profitability, backed by a larger order book, leading to a
better financial risk profile. Conversely, the outlook may be
revised to 'Negative' if the financial risk profile weakens, most
likely due to low demand, or a significant increase in raw
material prices that could result in lower-than-anticipated
profitability, or large debt-funded capital expenditure.
GMDPL was set up in 2005 by Mr. Nirmal Kumar Dalui and his family
in Howrah (West Bengal). The company was founded to acquire a
family-owned partnership firm, which was eventually taken over by
GMDPL in April 2008. The company manufactures a range of valves
for water, irrigation, and power plants.
GIRINDRA HOSPITALITY: CRISIL Rates INR65MM LT Loan at B+
--------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facility of Girindra Hospitality Pvt Ltd (GHPL). The rating
reflects the company's exposure to risk related to its ongoing
hotel project and below-average financial risk profile on account
of start-up nature of operations. These rating weaknesses are
partially offset by the extensive entrepreneurial experience of
GHPL's promoters and the favourable location of its hotel.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long Term Loan 65 CRISIL B+/Stable
Outlook: Stable
CRISIL believes GHPL will benefit over the medium term from the
favourable location of its hotel and the promoters' extensive
entrepreneurial experience. The outlook may be revised to
'Positive' if the company completes its ongoing project on time
and ramps up operations earlier than expected. Conversely, the
outlook may be revised to 'Negative' in case of cost or time
overrun in the project or if ramp-up in operations is not as
expected.
Incorporated in 2013, GHPL is setting up a 50-room five-star
hotel, The Garuda Hotel, in Thrissur, Kerala. The hotel is
currently in the final stage of construction and is expected to be
operational from November 2015. The company is promoted by Mr.
Girijavallaban V K.
GNI INFRASTRUCTURE: CRISIL Rates INR170MM Overdraft Loan at B+
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank loan facility of GNI Infrastructure Pvt Ltd (GIPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Drop Line Overdraft
Facility 170 CRISIL B+/Stable
The rating reflects working capital intensity in GIPL's
operations, risks relating to tender-driven businesses, and to
cyclicality in end-user industries. The rating also factors in the
average financial risk profile, with high gearing. These rating
weaknesses are partially offset by the extensive experience of
GIPL's promoter in the civil construction industry, and its
diversified revenue profile.
Outlook: Stable
CRISIL believes that GIPL will benefit over the medium term from
its diversified revenue profile and the promoter's significant
industry experience. The outlook may be revised to 'Positive' if
significant improvement in working capital management leads to a
stronger financial risk profile. Conversely, the outlook may be
revised to 'Negative' if large working capital requirements or
debt-funded capital expenditure results in pressure on the
liquidity.
Incorporated in 1985, GIPL undertakes contracts in building roads,
dams, canals and buildings for various government departments in
Maharashtra. GIPL also trades in bitumen and operates a fuel
station. The company, promoted by Bindra family of Aurangabad has
its registered office in Aurangabad (Maharashtra).
HARISUN CERAMIC: CRISIL Assigns 'B' Rating to INR50MM Term Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank loan facilities of Harisun Ceramic Pvt Ltd (HCPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 50 CRISIL B/Stable
Bank Guarantee 12.5 CRISIL A4
Cash Credit 30 CRISIL B/Stable
The ratings reflect HCPL's large working capital requirements, and
exposure to risks related to the initial phase and modest scale of
its operations in a fragmented industry. These rating weaknesses
are partially offset by the company's strong dealership network
supported by associate concerns, and its promoters' extensive
experience in the wall tiles industry.
Outlook: Stable
CRISIL believes that HCPL will continue to benefit over the medium
term from its promoters' extensive industry experience and its
strong dealership network. The outlook may be revised to
'Positive' if scale of operations and profitability increase
significantly, leading to considerable improvement in accruals and
debt protection metrics. Conversely, the outlook may be revised to
'Negative' if profitability declines steeply because of intense
competition, or promoters withdraw substantial capital from the
company, or working capital requirements increase significantly,
adversely affecting capital structure.
HCPL, established in 2014, manufactures wall tiles at its plant in
Morbi (Gujarat). It has installed capacity of 28,000 tonnes per
annum of vitrified tiles. HCPL is promoted by Mr. Prabhubhai
Ghodasara, Mr. Rakeshkumar Charola, Mr. Kapilbhai Ghodasara, Mr.
Balvantbhai Rangapadia, and Mr. Dilip H Kalia. It commenced
production in April 2015.
J.D SONS: CARE Reaffirms B+ Rating on INR26.50cr LT Loan
--------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
J.D Sons Steels Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 26.50 CARE B+ Reaffirmed
Short term Bank Facilities 3.00 CARE A4 Reaffirmed
Rating Rationale
The reaffirmation of the ratings of J.D Sons Steels Private
Limited (JDSSPL) factors in the weak financial profile as
reflected by its modest scale of operations with low profitability
margins, high leverage and weak debt coverage indicators. The
ratings are further constrained by the susceptibility of its
profitability to raw material price volatilities, working capital
intensive nature of operations and presence in the highly
fragmented and cyclical steel industry.
These constraints are, however partially offset by the strength
derived from the experienced promotors, their commitment towards
regular fund infusion, increased capacity utilization and
established relationships with suppliers and customers.
Going forward, the ability of the company to improve its
profitability in light of the slow-down in economy, competitive
nature of the industry and effective working capital management
would be the key rating sensitivities.
J D Sons Steels Pvt Ltd (JDSSPL), promoted by Mr Darshan Goyal and
Mr Jagdish Gupta, was incorporated in 2001 and commenced
operations in 2004. It is engaged in the manufacturing of Cold
Rolled Carbon (CRC) strips and coils and Mild Steel (MS) wires.
The manufacturing plant of the company is located in Palwal,
Haryana with a total installed capacity of 47,500 Metric Tonnes
Per Annum (MTPA) as on March 31, 2015(45,000 MTPA in FY14 - refers
to the period April 1 to March 31). The products manufactured by
the company find application in automobile, consumer durables and
furniture industries. The company sources its raw material i.e.
Hot Rolled (HR) coils and wire rods from the domestic suppliers
and majorly caters to the domestic auto ancillary companies.
In FY15, JDSSPL achieved total operating income of INR176.75 crore
and PAT of INR0.56 crore as against total income of INR155.10
crore and PAT of INR0.61 crore in FY14.
K-LITE INDUSTRIES: CRISIL Assigns B+ Rating on INR42.5MM Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of K-Lite Industries (KLI).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Buyer Credit Limit 17.5 CRISIL B+/Stable
Cash Credit/
Overdraft facility 42.5 CRISIL B+/Stable
The rating reflects KLI's modest scale of operations and the
below-average financial risk profile marked by modest net worth
and high gearing. These weaknesses are mitigated by the partners'
extensive experience in the lighting luminaries industry.
Outlook: Stable
CRISIL believes that KLI will continue to benefit over the medium
term from the partners' extensive industry experience. The outlook
may be revised to 'Positive' if there is significant improvement
in its scale of operation and profitability while maintaining a
moderate working capital cycle. Conversely, the outlook could be
revised to 'Negative' if the firm's financial risk profile
deteriorates owing to decline in cash accruals or stretch in its
working capital cycle or on account of large debt-funded capital
expenditure programme over the medium term.
Established in 1977 as a partnership firm, KLI manufactures
lighting luminaries and offers an array of interior lighting
fixtures and exterior lighting fixtures in Chennai.
KARNATAKA TURNED: CRISIL Reaffirms B Rating on INR56MM LT Loan
--------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Karnataka
Turned Components Pvt Ltd (KTCPL) continues to reflect KTCPL's
modest scale of operations and customer concentration in its
revenue profile. The rating also factors in the susceptibility of
revenue and operating profitability to slowdown in the automobile
sector.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Overdraft Facility 30 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 56 CRISIL B/Stable (Reaffirmed)
Term Loan 44 CRISIL B/Stable (Reaffirmed)
These rating weaknesses are partially offset by the promoters'
extensive experience in the precision engineering components
industry, and a moderate financial risk profile because of low
gearing, a moderate net worth, and adequate debt protection
metrics.
Outlook: Stable
CRISIL believes that KTCPL will continue to benefit over the
medium term from its promoters' extensive industry experience and
established customer relationships. The company will, however,
will continue to face customer concentration risk over this
period. The outlook may be revised to 'Positive' in case of a
considerable and sustainable improvement in the scale of
operations and profitability, leading to improvement in the
business risk profile. Conversely, the outlook may be revised to
'Negative' if there is significant deterioration in liquidity most
likely because of low cash accrual or lengthening of the working
capital cycle.
KTCPL, set up in 1960 in Bengaluru and promoted by Mr. Raj Kumar
and his family members, manufactures precision engineering
components.
MAHAMAYA CASTING: CRISIL Reaffirms B+ Rating on INR82.5MM Loan
--------------------------------------------------------------
CRISIL's ratings on the bank facilities of Mahamaya Casting Pvt
Ltd (MCPL) continue to reflect the company's small scale of
operations in the intensely competitive steel industry, its large
working capital requirements, and average financial risk profile
because of weak debt protection metrics. These rating weaknesses
are partially offset by the promoter's extensive experience in the
steel industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 8.1 CRISIL A4 (Reaffirmed)
Cash Credit 82.5 CRISIL B+/Stable (Reaffirmed)
Foreign Exchange
Forward 50.0 CRISIL A4 (Reaffirmed)
Proposed Long Term
Bank Loan Facility 9.4 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes MCPL will benefit over the medium term from its
promoter's extensive industry experience. The outlook may be
revised to 'Positive' in case of substantial cash accrual
supported by stabilisation of increased capacity, and improvement
in working capital cycle enhancing liquidity. Conversely, the
outlook may be revised to 'Negative' if the financial risk profile
deteriorates, most likely because of large debt-funded capital
expenditure or a decline in cash accrual, weakening the working
capital management.
Established in 2004 in Delhi, MCPL is promoted by Mr. Bhir Bhan
Jindal. It manufactures stainless steel bright bars, which find
application in the construction, automotive, and engineering
sectors.
MARGO PLYWOOD: CARE Upgrades Rating on INR10.49cr LT Loan to B
--------------------------------------------------------------
CARE revises the ratings assigned to the bank facilities of
Margo Plywood Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 10.49 CARE B Revised from
CARE D
Short-term Bank Facilities 6.21 CARE A4 Revised from
CARE D
Rating Rationale
The revision in the ratings assigned to the bank facilities of
Margo Plywood Private Limited (MPPL) is primarily due to regular
debt servicing track record in the last three months ending August
2015.
However, the ratings continue to remain constrained on account of
moderate debt coverage indicators coupled with stressed liquidity
position. Furthermore, the ratings are also constrained due to its
presence in the highly competitive and fragmented wood and wood
product industry and vulnerability of profitability to
fluctuations in raw material prices along with the fortunes of the
company linked to the cyclical and currently subdued real estate
sector and adverse changes in export policies of timber exporting
countries.
The ratings, however, continue to draw strength from the wide
experience of the promoters. Furthermore, the ratings also factor
in the increase in its scale of operations and cash accruals along
with slight improvement in capital structure during FY15 (refers
to the period April 1 to March 31).
The ability of MPPL to increase its scale of operations, improve
profit margins and capital structure via efficient management of
its working capital requirements remain the key rating
sensitivities.
Kutch-based (Gujarat) MPPL, incorporated on August 26, 2008 is
promoted by Mr Sandeep Gupta and Mr Ajay Gupta. It is engaged in
the manufacturing of plywood, block board and flush door with an
installed capacity of 20 lakh square meters per month. The company
procures raw material (timber logs) from Taiwan and sells its
final products in the local market in the state of Gujarat,
Rajasthan, Punjab, Uttar Pradesh and Maharashtra etc. MPPL has a
team of over 15 marketing professionals in different states of
India to support sales and marketing of its products.
During FY15, MPPL reported a total operating income (TOI) of
INR35.99 crore with a PAT of INR 0.87 crore as against a TOI
of INR30.86 crore and PAT of INR0.18 crore during FY14.
NATIONAL INDUSTRIES: CRISIL Assigns B+ Rating to INR50MM Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of National Industries - Faridkot (NI). The rating
reflects NI's weak financial risk profile and small scale of
operations in the highly fragmented rice-milling industry. These
rating weaknesses are partially offset by the extensive industry
experience of the firm's promoters.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 6.5 CRISIL B+/Stable
Cash Credit 50.0 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 1.5 CRISIL B+/Stable
Outlook: Stable
CRISIL believes that NI will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if NI's financial risk
profile improves significantly, driven most likely by a
considerable increase in its net cash accruals, due to a
substantially higher scale of operations, or infusion of capital.
Conversely, the outlook may be revised to 'Negative' if the firm's
liquidity deteriorates because of higher-than-expected working
capital requirements or pressure on its profitability.
NI was established in 1998 as a partnership firm. It was taken
over by the current partners in 2001. The firm, based in Faridkot
(Punjab), mills and sorts rice. It is managed by Mr. Rohit Monga
and his cousin, Mr. Vikram Monga.
NI, on a provisional basis, reported a net profit of INR1.4
million on net sales of INR290 million for 2014-15 (refers to
financial year, April 1 to March 31); it had reported a net profit
of INR1.5 million on net sales of INR233 million for 2013-14.
OM SUGARS: CARE Reaffirms 'B' Rating on INR42cr LT Loan
-------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
OM Sugars Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 42 CARE B Reaffirmed
Rating Rationale
The rating assigned to the bank facilities of Om Sugars Limited
(OSL) continues to be constrained on account of its highly
leveraged capital structure and the losses incurred during FY15
(refers to the period April 1 to March 31) being the first year of
operations. The rating is further constrained by the risk related
to the stabilization of the operations and its presence in the
highly cyclical and seasonal sugar industry coupled with the
working capital intensive nature of operations.
The rating, however, continues to derive strength from the
resourceful promoters and experienced second-tier management team
coupled with the strategic location of the project in a sufficient
sugarcane availability area with partially-integrated
manufacturing facilities.
The ability of the company to stabilize its operations, procure
adequate sugarcane to satiate its crushing capacity and operate
for the season of greater duration are the key rating
sensitivities. Besides, increase in the scale of operations
coupled with efficient management of working capital is crucial
from a credit perspective.
OSL was incorporated in August 2009, as a private limited company,
thereafter the constitution of the firm was changed to a public
limited company in October 2011. The company has set up partially
integrated manufacturing facility for processing sugarcane to
produce white crystal sugar with a crushing capacity of 2,500
tones of cane crushed per day (TCD) with FY14-15 being the first
crushing season for OSL. In addition, the company also has a co-
generation unit of 4 Mega-watt (MW) for captive consumption. The
manufacturing facilities of the company are located at Jainapur,
Chikkodi Taluka in Belgaum District of Karnataka.
The total cost of the setting up the sugar mill is INR67.51 crore
funded through the term debt of INR42 crore, equity of INR9.47
crore, interest free unsecured loans of INR12.91 crore and balance
INR3.13 crore funded by creditors as on March 31, 2015. The parts
of the plant and the machineries required
in the manufacturing set-up have been purchased from Bannari Amman
Sugar Limited (rated 'CARE AA-/CARE A1+'). The plant achieved
commercial operations from November 02, 2014 with sugar
season (SS) 2014-2015 being the first sugar season for OSL and
crushed 1.07 lakh metric tonne (MT) of sugar cane, producing sugar
to the tune of 9923 MT at an implied recovery of 9.30%.
PCM CEMENT: CARE Raises Rating on INR261.30cr LT Loan to BB-
------------------------------------------------------------
CARE revises the LT rating and reaffirms the ST rating assigned to
bank facilities of PCM Cement Concrete Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 261.30 CARE BB- Revised from
CARE B-
Short term Bank Facilities 10.00 CARE A4 Reaffirmed
Rating Rationale
The revision in the rating of PCM Cement Concrete Private Limited
(PCCPL) is on account of stable operating performance with low
reliance on external borrowing in FY15 (refers to the period April
1 to March 31) and improvement in operating performance of one of
its subsidiary company, Rail One Group (ROG), in FY15 to whom it
has given the corporate guarantee of substantial amount.
However, the rating continues to be constrained by small size of
operation, highly competitive market, working capitalintensive
nature of operation, weak financial risk profile due to high
amount of corporate guarantee given to group companies along with
tight liquidity position and high exposure in group companies. The
rating weakness continues to be partially offset by long track
record of operations, presence of price variation clause
mitigating the risk of volatility in input prices to a certain
extent and moderate order book position. The ability of the
company to increase scale of operations & sustain the
profitability margin at the current levels, improvement in the
financial performance of group companies to whom it has extended
corporate guarantee and efficiently manage its working capital
requirement are the key rating sensitivities.
PCCPL, incorporated in 1991, operates in four segments -- sleeper,
flash butt welding, media and real estate. Sleeper segment
includes manufacturing and supplying of concrete sleepers to the
railways; flash butt welding segment undertakes welding activities
for railway tracks; media segment include radio stations in
Siliguri & Gangtok and real estate division includes development &
sale of real estate properties. Sleeper is the largest segment of
PCCPL, accounting for 81% of total revenue in FY15, followed by
flash butt welding (17%), media (2%) and real estate (less than
1%).
For FY15, PCCPL earned PAT of INR2.45 crore (Rs.3.68 crore in
FY14) on a total operating income of INR85.85 crore (Rs.70.0
crore in FY14).
PRINTWELL OFFSET: CARE Reaffirms B Rating on INR7.73cr LT Loan
--------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Printwell Offset.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 7.73 CARE B Reaffirmed
Rating Rationale
The rating assigned to the bank facilities of Printwell Offset
(PWO) continues to remain constrained on account of its modest
scale of operations, cash loss incurred during FY15 (refers to the
period April 1 to March 31), low net worth base, leveraged capital
structure and weak debt coverage indicators and liquidity
position. The rating is further constrained on account of limited
financial flexibility owing to partnership nature of constitution,
susceptibility of margins to raw material price and forex
fluctuation risk and its presence in the fragmented & competitive
printing and packaging industry.
The rating however, continues to derive strength from the
partners' long experience in the printing and packaging
industry. The rating takes into account the growth in total
operating income (TOI), improvement in profitability and
infusion of capital by the partners during FY15.
The ability of PWO to increase its scale of operations, improve
profitability and capital structure along with efficient
management of working capital requirements remain the key rating
sensitivities.
Rajkot-based PWO was established in October 2011 by four partners
viz. Mr Jitendrabhai Jadavbhai Kakadiya, Mr Dharmeshbhai
Chhaganbhai Kakadiya, Ms Jayshreeben Mukeshbhai Kakadiya and Ms
Hiralben Hiteshbhai Kakadiya. The unit started its operations from
January 2013 and is engaged in the manufacturing of paper
packaging items and various forms of printing like catalogue
printing, UV printing, emboss printing, 3D printing, coated
printing, printing on boxes etc. as per the requirement of its
customers. FY14 was the first full year operations of PWO. The
production capacity of PWO for printing the papers and
manufacturing the box was 20,000 numbers per day as onMarch 31,
2015.
PWO reported a net loss of INR1.96 crore on a total operating
income (TOI) of INR13.17 crore during FY15 as against a net
loss of INR3.66 crore on a TOI of INR11.44 crore during FY14.
SAMRAT FORGINGS: CRISIL Reaffirms B+ Rating on INR168MM Loan
------------------------------------------------------------
CRISIL ratings on the bank loan facilities of Samrat Forgings Ltd
(SFL) continue to reflect SFL's small scale of operations, large
working capital requirements and weak financial risk profile.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 7 CRISIL A4 (Reaffirmed)
Cash Credit 168 CRISIL B+/Stable (Reaffirmed)
Letter of Credit 20 CRISIL A4 (Reaffirmed)
Proposed Long Term
Bank Loan Facility 13 CRISIL B+/Stable (Reaffirmed)
Term Loan 45.6 CRISIL B+/Stable (Reaffirmed)
These rating weaknesses are partially offset by the company's
moderate operating efficiencies owing to increasing contribution
of high-value-added products, and moderate business risk profile,
supported by its established position in the automotive components
market and established customer relationships.
Outlook: Stable
CRISIL believes that SFL will continue to benefit over the medium
term from its strong clientele comprising of leading original
equipment manufacturers in the automotive, gears, tractor,
construction equipment, and other industries. The outlook may be
revised to 'Positive' if there is substantial growth in the
company's operating revenue coupled with better profitability,
while it improves its working capital cycle. Conversely, the
outlook may be revised to 'Negative' if SFL's cash accruals are
low, most likely because of low profitability and revenue, or if
its working capital requirements increase significantly, resulting
in further weakening of its liquidity.
Update:
SFL, on a provisional basis, reported sales of INR671.9 million
for 2014-15 (refers to financial year, April 1 to March 31), as
against INR774.3 million for 2013-14. The decline was driven by
lower demand due to the sluggish tractor industry scenario in
2014-15. The operating margin was around 8.0 per cent in 2014-15.
The scale of operations and operating margin are expected to
improve marginally over the medium term with higher orders,
including better-margin export orders, and addition of new
customers.
The company's working capital requirements remain large, with a
high inventory of 160 days as on March 31, 2015, due to the higher
lead time for procurement. It receives credit of around 90 days
from its suppliers, but it often stretches the period to fund
working capital requirements. Large working capital requirements
have led to high utilisation of bank lines. However, its liquidity
is partially supported by need-based support from promoters in the
form of unsecured loans. Its cash accruals were tightly matched
against its term debt obligations during 2014-15.SFL's financial
risk profile remains below average, marked by average gearing of
1.88 times as on March 31, 2015; the gearing is expected to remain
around 1.8 times over the medium term. The company had a below-
average interest coverage ratio of 1.7 times for 2014-15. Its debt
protection metrics are expected to improve slightly over the
medium term as higher-value-added products would lead to better
profitability.
SFL, on a provisional basis, reported a profit after tax (PAT) of
INR9.8 million on net sales of INR 672 million for 2014-15 (refers
to financial year, April 1 to March 31), as against a PAT of
INR10.5 million on net sales of INR774.3 million for 2013-14.
SFL was incorporated in 1981. The company undertakes closed-die
forging/machining for components, such as spindles, crank shafts,
connecting rods, bull gears, and crown wheels for clients in the
automobile, tractor, construction equipment, gears, and other
industries. Its managing director is Mr. Rakesh Mohan Kumar.
SHIVA SPECIALITY: CARE Reaffirms C+ Rating on INR69.89cr Loan
-------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Shiva Speciality Yarns Limited (formerly known as Punjab Cotspin
Ltd.)
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 69.89 CARE C+ Reaffirmed
Short term Bank Facilities 1.00 CARE A4 Reaffirmed
Rating Rationale
The ratings assigned to the bank facilities of Shiva Speciality
Yarns Limited (SSYL) continue to remain constrained by its weak
financial risk profile marked by declining income, losses at the
net level and weak solvency position. The ratings are also
constrained by the working capital intensive nature of operations
and high competition in the industry. The ratings, however, derive
strength from the past experience of the promoters with long track
record of operations, established dealer network and diversified
revenue mix.
Going forward, SSYL's ability to profitably scale up its
operations, improve the profitability margins and manage the
working capital requirements efficiently continue to remain the
key rating sensitivities.
Shiva Speciality Yarns Limited (SSYL), formerly known as Punjab
Cotspin Ltd. was originally promoted by the Singla family
in 2005 at Bhatinda, Punjab. In November 2007, the company was
acquired by Shiva Group. SSYL manufactures dyed polyester spun
yarn and blended spun yarn with an installed capacity of 11,725
MTPA as on March 31, 2015. Almost all the raw material required is
procured from the group companies. The Company primarily purchases
its entire requirement of Polyester Staple Fibre (PSF) from Shiva
Texfab Limited (STL). It also procures acrylic staple fibre from
Yogindera Worsted Limited (YWL) (rated CARE C+/CARE A4).
On account of liquidity constraints, the debt of the company was
restructured in FY15 (refers to the period April 1 to March 31).
Post restructuring of the debt, the fund based working capital
limits of the company were reduced from INR44 crore to INR40 crore
and INR4 crore, carved out of the cash credit limit was
restructured into working capital term loan.
The repayment schedule of the existing term loans was also
elongated post restructuring of the debt.
YWL registered a total operating income of INR125.9 crore during
FY15 (Provisional) with net losses of INR6.99 crore as against a
total operating income of INR164.42 crore with PAT of INR0.11
crore in FY14.
SHREE RAM: CRISIL Reaffirms B+ Rating on INR97.5MM Cash Credit
--------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Shree Ram
Industries (Harij) (SRI) continues to reflect SRI's small scale of
operations in the highly competitive cotton-ginning industry and
its below-average financial risk profile, marked by high gearing
and weak debt protection metrics.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 97.5 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 2.5 CRISIL B+/Stable (Reaffirmed)
These rating weaknesses are partially offset by the extensive
industry experience of SRI's promoters.
Outlook: Stable
CRISIL believes that SRI will continue to benefit over the medium
term from its promoters' extensive experience in the cotton-
ginning industry. The outlook may be revised to 'Positive' if
scale of operations increases significantly along with sustained
improvement in profitability, or if capital structure improves
either through equity infusion or substantial cash accruals.
Conversely, the outlook may be revised to 'Negative' if financial
risk profile deteriorates due to increased working capital
borrowings, or if change in government policy adversely affects
operations.
Formed in 2007, SRI is promoted by Patan (Gujarat)-based Mr.
Jaydev Thakkar and his family members. The firm gins cotton.
On a provisional basis, SRI reported net profit of INR3.7 million
on net sales of INR706.1 million for 2014-15 (refers to financial
year, April 1 to March 31); it reported net profit of INR3.1
million on net sales of INR697.8 million for 2013-14.
SUMAN AGRITECH: CARE Reaffirms 'D' Rating on INR53.50cr ST Loan
---------------------------------------------------------------
CARE reaffirms rating assigned to the bank facilities of Suman
Agritech Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank Facilities 53.28 CARE D Reaffirmed
Short Term Bank Facilities 53.50 CARE D Reaffirmed
Rating Rationale
The ratings of the bank facilities of Suman Agritech Ltd (SAL)
continue to take into account recent delays in servicing of its
debt obligations, resulting from stressed liquidity on account of
cash losses.
Incorporated in 1995 as Mirage Impex Pvt Ltd and rechristened as
Suman Agritech Ltd in December 2012, the company is engaged in
edible oil refining and agri-commodity trading. The manufacturing
facilities of SAL are located near Bhojpur district in Bihar, with
an installed capacity of 500 tonne per day (TPD) for edible oil
refining (mainly palm) and 100 TPD for manufacturing of vanaspati,
as on December 31, 2014.
As per the audited results for FY14, SAL registered a total
operating income of INR219.06 crore with a net loss of INR9.84
crore as against a total operating income of INR181.96 crore and
net loss INR1.25 crore in FY13.
As per the provisional results for H1FY15, SAL registered a total
operating income of INR143.06 crore with a net loss of INR8.57
crore.
TIRUPUR TEXTILES: CRISIL Reaffirms B- Rating on INR635MM Loan
-------------------------------------------------------------
CRISIL's ratings continues to reflect Tirupur Textiles Pvt Ltd's
(TTPL) below average financial risk profile, marked by high
gearing and subdued debt protection metrics, and its vulnerability
to volatility in raw material prices and to intense competition in
the cotton yarn industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Corporate Loan 100 CRISIL B-/Stable (Reaffirmed)
Letter of Credit 251 CRISIL A4 (Reaffirmed)
Long Term Loan 635 CRISIL B-/Stable (Reaffirmed)
Open Cash Credit 55 CRISIL B-/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 65.2 CRISIL B-/Stable (Reaffirmed)
These rating weaknesses are partially offset by the extensive
experience of the company's promoters in the cotton spinning
industry.
Outlook: Stable
CRISIL believes that TTPL will continue to benefit over the medium
term from its established regional market position in the hosiery
yarn segment. The outlook may be revised to 'Positive' if the
company's revenue improves significantly while it maintains its
profitability, leading to a substantial increase in its cash
accruals and hence to a better capital structure. Conversely, the
outlook may be revised to 'Negative' if TTPL's profitability and
revenue decline, or if it undertakes a sizeable debt-funded
capital expenditure programme, further weakening its capital
structure.
TTPL was set up in 1956 by Mr. G T Krishnaswamy Naidu and his son,
Mr. K Sivasubramaniam; it manufactures hosiery cotton yarn at its
facility in Tirupur (Tamil Nadu).
TTPL, provisionally, reported a profit after tax (PAT) of INR5.01
million on net sales of INR1.28 billion for 2014-15; it had
reported a PAT of INR22.57 million on net sales of INR1.16 billion
for 2013-14.
UNITED EXPORTS: CRISIL Cuts Rating on INR350MM Cash Loan to D
-------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of United
Exports (UE) to 'CRISIL D/CRISIL D' from 'CRISIL BB-/Stable/CRISIL
A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bill Purchase- 150 CRISIL D (Downgraded from
Discounting Facility 'CRISIL A4+')
Cash Credit 350 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
Packing Credit 330 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
Term Loan 170 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
The rating downgrade reflects instances of delay by UE in
servicing its term debt due to stretched liquidity/increased
inventory holding levels. As on March 31, 2015, the firm's
inventory increased to 372 days, compared with 273 days as on
March 31, 2014.
CRISIL has treated unsecured loans of INR106.9 million outstanding
as on March 31, 2015, extended to UE by its promoters, as neither
debt nor equity as these are interest-free and subordinate to bank
loans. The unsecured loans were reduced from INR117.6 million as
on March 31, 2014. However, the partners infused INR10.8 million
in partner's capital in 2014-15.
UE also has weak financial risk profile marked by high gearing,
weak debt protection metrics and low net worth, modest scale of
operations in the highly fragmented rice industry, and
vulnerability to change in government policies. UE also has
working-capital-intensive operations. UE however benefits from the
established position of its partners in the rice industry,
customer diversity and healthy operating profitability. The
decline in revenues in 2014-15 was mainly attributed to the
decrease in prices of rice during the year.
UE was set up as a partnership firm in 1983. The firm's current
partners are Mr. Harish Narang, Mr. Samarth Narang, and Mr.
Sudhanshu Narang. UE mills and processes basmati and non-basmati
rice for sale in the domestic and export markets.
UE, on a provisional basis, reported net profit of INR37 million
on INR1.41 billion for 2014-15 (refers to financial year, April 1
to March 31), as against net profit INR39.1 million on net sales
of ~INR1.5 billion for 2013-14.
UNIVERSAL STAINLESS: CARE Assigns 'B' Rating to INR8.75cr LT Loan
-----------------------------------------------------------------
CARE assigns 'CARE B' rating to the bank facilities of Universal
Stainless Suppliers.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 8.75 CARE B Assigned
Rating Rationale
The rating assigned to the bank facilities of Universal Stainless
Suppliers (USS) is primarily constrained on account of risk
associated with implementation and stabilization of ongoing debt-
funded project, its presence in highly fragmented and competitive
industry, partnership nature of constitution, foreign exchange
fluctuation risk coupled with susceptibility of margins to
volatility in prices in raw material.
However, the rating derives strength from the wide experience of
the promoters in different industries albeit no relevant
experience in the steel industry.
USS's ability to stabilize its business operations by commencing
commercial production within specified timeline and quickly
establishing customer base is the key rating sensitivity.
Furthermore, achieving envisaged level of sales and profitability
in light of volatile raw material pricing scenario and highly
competitive industry would also remain crucial.
Ahmedabad-based (Gujarat) USS was established in January 2015, as
a partnership firm by Mr Jasmin J Patel, Mr Avtar R Patel and Mr
Bharatkumar M Patel. Furthermore, during April 2015, Mr Avtar R
Patel withdrew his partnership and another four partners entered
as partners. USS is currently undertaking a greenfield project for
manufacturing of Stainless Steel Seamless and Welded Tubes & Pipes
with an installed capacity of 1,480 metric tonnes per annum
(MTPA).
The product of USS finds application in various industries like
petrochemical and refineries, nuclear and solar power plant,
thermal power plant, agriculture, milk plant and chemical. USS has
envisaged commencing commercial production from the end of October
2015.
VENUS REMEDIES: CRISIL Reaffirms 'D' Rating on INR1.46BB Loan
-------------------------------------------------------------
CRISIL's ratings on the bank facilities of Venus Remedies Ltd
(VRL) continue to reflect the continued delays by VRL in servicing
bank obligations because of stretched liquidity. The rating also
reflects the company's working-capital-intensive and small scale
of operations in the overall formulations market. VRL, however,
benefits from its high-value critical care segment.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 25 CRISIL D (Reaffirmed)
Cash Credit 1050 CRISIL D (Reaffirmed)
Funded Interest 95.7 CRISIL D (Reaffirmed)
Term Loan
Letter of Credit 255.0 CRISIL D (Reaffirmed)
Letter of credit & 90.0 CRISIL D (Reaffirmed)
Bank Guarantee
Term Loan 1467.7 CRISIL D (Reaffirmed)
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of VRL and its wholly owned subsidiary,
Venus (VP), based in Germany. VP provides out-licensing services
of common technical documents, and warehousing and logistical
support. Both the entities have together been referred to as VRL
Established in 1991 by Mr. Pawan Chaudhary, VRL has presence in
both branded and generic-formulation pharmaceuticals. It has a
facility in Panchkula (Haryana) and another facility in Baddi
(Himachal Pradesh), with aggregate capacity of 0.57 million
bottles per day. VRL is mainly present in the critical care
segment, manufacturing parenterals such as cephalosporins,
carbapenems, and oncology drugs in lyophilised form; infusions;
volume parenterals used for treating varied ailments such as
bacterial infections and cancer.
For 2014-15 (refers to financial year, April 1 to March 31), on a
standalone basis, VRL provisionally reported loss of INR12 million
on net sales of INR4497 million against PAT of INR609 million on
net sales of INR5187 million for 2013-14.
VIJAY BREEDING: CRISIL Ups Rating on INR40.5MM Cash Loan to 'B+'
----------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Vijay Breeding Farm and Hatcheries (VBFH, a part of the Bharat
group) to 'CRISIL B+/Stable' from 'CRISIL B/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 40.5 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Term Loan 24.7 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
The upgrade reflects improvement in Bharat group's business risk
and financial flexibility. The business risk profile improvement
was led by healthy top line growth of around 25 per cent to
INR523.8 million during 2014-15 (refers to financial year, April 1
to March 31) from INR418.4 million the year before primarily due
to the healthy demand. Group's working capital requirement though
high was also better than previous year with gross current assets
at 146 days as on March 31, 2015, against previous year's 195
days. The financial flexibility of the group also improved on back
of funding support from promoters in form of unsecured loans which
increased to INR46.9 million in 2014-15 from INR16.6 million in
2011-12.
The rating reflects the Bharat group's modest scale of operations
in the highly competitive poultry industry and its highly
leveraged capital structure. These weaknesses are partially offset
by the extensive industry experience of the firm's partners.
For arriving at the rating, CRISIL has combined the business and
financial risk profiles of VBFH and Bharat Hatcheries (Bharat).
This is because the two entities, together referred to as the
Bharat group, have a common management, are in a similar line of
business, and have significant operational linkages and fungible
funds. Besides, the credit facilities of both firms have a common
collateral security.
Outlook: Stable
CRISIL believes that the Bharat group will continue to benefit
over the medium term from its partners' extensive experience in
the poultry industry and its established relationships with
customers and suppliers. The outlook may be revised to 'Positive'
if the group increases its scale of operations substantially while
improving its profitability and capital structure. Conversely, the
outlook may be revised to 'Negative' if its revenue or
profitability declines or it undertakes a large debt-funded
capital expenditure programme, resulting in weakening of its
financial risk profile.
VBFH was set up as a proprietorship firm in 1996 by Mr. Rajvir
Singh Jaglan. It is also engaged in the business of poultry
breeding and hatching. It has DOC breeder farms at Panipat.
Bharat is a partnership firm set up in 2002 by Haryana-based Mr.
Rajvir Singh Jaglan and his family. The firm is engaged in the
business of poultry breeding and hatching. It has day-old-chick
(DOC) breeder farms at Panipat (Haryana). Mr. Rajvir Singh Jaglan,
his brother Mr. Jasvir Singh Jaglan, his daughter Ms. Sophia
Jaglan, and his son-in-law Mr. Siddharth Jaglan are the partners
of the firm.
YOGINDERA WORSTED: CARE Reaffirms C+ Rating on INR66.18cr Loan
--------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Yogindera Worsted Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 66.18 CARE C+ Reaffirmed
Short term Bank Facilities 9.25 CARE A4 Reaffirmed
Rating Rationale
The ratings of Yogindera Worsted Limited (YWL) continue to remain
constrained by its weak financial risk profile marked by declining
income, losses at the net level and weak solvency position. The
ratings are further constrained by working capital intensive
nature of operations and high competition in the industry from
both organized and unorganized players.
The ratings, however, derive strength from the past experience of
the promoters with long track record of operations, established
dealer network and diversified revenue mix.
Going forward, the ability of the company to profitably scale up
its operations, improve the profitability margins and manage the
working capital requirements efficiently continue to remain the
key rating sensitivities.
YWL was set up in 1997 by Mr Ajay Kumar Gupta and his family
members, along with Punjab State Industries Development
Corporation (PSIDC) Ltd., for the manufacturing of pre-dyed woolen
worsted/acrowool yarn with an installed capacity of 950 MTPA. YWL
was acquired by Shiva Group in February, 2007 from the Gupta
family. YWL is engaged in manufacturing of varieties of yarns viz.
dyed and raw white worsted woolen yarn, acro-woolen yarn, acrylic
yarn, polyester yarn, fancy yarn, hand knitting yarn, m‚lange yarn
and space dyed/printed yarns, etc, which are used in manufacturing
pullovers, apparels, undergarments, Terry Towels, Denims, Medical
Fabrics, Furnishing Fabrics and Industrial Fabrics. The installed
capacity of the company stood at around 11,464 MTPA, as on March
31, 2015. The manufacturing facilities of the company are located
in Barnala, Punjab.
The debt of the company was restructured in FY15 (refers to the
period April 1 to March 31) due to liquidity constraints faced by
the company. Post the restructuring of debt, the fund based
working capital limits of the company were reduced from INR27.5
crore to INR20.6 crore and INR6.9 crore, carved out of the cash
credit limit was restructured into working capital term loan.
Repayment of the same is scheduled to begin from January 2017.
Post restructuring of debt, the repayment schedule of the
previously sanctioned term loan was also elongated.
YWL registered a total operating income of INR142.81 crore during
FY15 (Provisional) with net losses of INR0.23 crore as against a
total operating income of INR303.53 crore with PAT of INR0.47
crore in FY14.
=================
I N D O N E S I A
=================
INDONESIA: To Overhaul Bank Rules to Guard Against Collapses
------------------------------------------------------------
Neil Chatterjee, Chris Brummitt and Chris Anstey at Bloomberg News
report that Indonesia is preparing a major overhaul of financial
safety regulations to guard against the potential for bank
collapses.
Fauzi Ichsan, who heads the Indonesia Deposit Insurance Corp.,
said regulators are working on a list of systemically important
banks, likely to include the country's top 15 by assets, and
parliament may pass a law this year setting out rules for
bailouts, Bloomberg relates. The agency guarantees bank deposits
and would take over any lenders in the event of a failure, the
report notes.
According to Bloomberg, Indonesian banks including biggest lenders
PT Bank Central Asia and PT Bank Rakyat Indonesia are facing
slower loan growth and a weakening economy at a time when the
Federal Reserve is preparing to lift U.S. interest rates, a move
that has the potential to create more disruption in emerging
markets.
The report says the rupiah has already fallen sharply, trading
around 14,400 to the dollar, and is Asia's second-worst performing
currency this year. The market volatility has a bright side for
Indonesia in that it helps moves to shore up the country's banking
system, Mr. Ichsan said in an interview in Jakarta on September
15, Bloomberg relays.
"Many of us are happy there is market turbulence, it forces
parliament to focus on it," Bloomberg quotes Mr. Ichsan, formerly
an economist at Standard Chartered Plc in Jakarta, as saying.
"They tend to agree with us that we need a stronger legal
foundation for future bankruptcy."
The Indonesian banks on the systemically-important list could face
higher deposit-insurance premiums and additional capital buffers,
he said, Bloomberg relays. The banking industry's capital adequacy
ratio of 20 percent and non-performing loan ratio of 2.6 percent
are both better than during the global credit crisis, and no
lenders are currently being considered as failing, Ichsan told
Bloomberg.
"This is not a crisis, it's turbulence," he said in an interview
at his office near Jakarta's stock exchange, where a copy of
"Stress Test", an account of dealing with the financial crisis by
former U.S. treasury secretary Timothy Geithner, lay on the table,
Bloomberg relays.
Bloomberg notes that the plan to identify the nation's most
important lenders is in step with an international effort led by
the Basel Committee on Banking Supervision and the Financial
Stability Board, which have designed a broad framework for banks
deemed too big to fail at both global and domestic levels in the
aftermath of the 2008 global financial crisis.
Some Indonesian banks have been hit by a weakening commodity
industry, yet that is unlikely to create a system wide banking
crisis, Mr. Ichsan, as cited by Bloomberg said. The risk for
Indonesia's lenders could escalate if economic growth slips
further and the rupiah slump deteriorates, Mr. Ichsan said.
"If GDP growth falls below 4% that would be alarming, as well as
if the rupiah hits 16,000 against the dollar," the report quotes
Mr. Ichsan as saying. "It would eat up capital through loan
provisions and write offs."
The deposit insurance agency has IDR60 trillion ($4 billion) in
assets, enough to cover two commercial bank collapses, Bloomberg
discloses citing to the organization's stress tests.
"More than two banks would be challenging," said Ichsan, adding he
would like to have double the current level of assets, Bloomberg
relays.
Bloomberg adds that the financial safety net bill, which
parliament started discussing last month after approval by
President Joko Widodo, will set out the process for dealing with a
financial crisis and detail the requirements for banks to get
bailouts.
====================
N E W Z E A L A N D
====================
OPI PACIFIC: Two Directors Get 200 Hours' Community Work
--------------------------------------------------------
Hamish Fletcher at New Zealand Herald reports that two Australian-
based failed finance company directors will commute to and from
New Zealand to serve sentences of community work.
OPI Pacific Finance directors Mar Lacy and Jason Maywald last
month admitted making untrue statements in the offer documents of
the company which collapsed owing NZ$247 million.
The pair were back in Auckland for a very brief sentencing on
September 18, where they both received 200 hours of community work
and were each ordered to pay AUD100,000 to the company's
receivers, the Herald says.
According to the report, Messrs. Lacy and Maywald both knew the
sentences they were in for, having attended indication hearing in
August before Justice Pamela Andrews.
Justice Andrews, at that hearing, concluded that the pair's
offending was more than just mere carelessness or misjudgement but
not at the level of gross negligence, the report relays.
They must now commute to perform unspecified community work in
blocks of no-less than five days a time, the Herald notes.
The Herald relates that Mr. Lacy will start his in November and
must complete his 200 hours by May while Mr. Maywald will start
his in January and finish it by July.
Both men pleaded guilty to one charge relating to an OPI
prospectus and one charge relating to an investment statement, the
report notes.
Prior to their admissions, the pair were due to go to trial with
co-accused David Anderson and Craig White in October. That trial
is expected to still start on time, the Herald adds.
The report notes that the Financial Markets Authority alleged 2007
OPI offer documents contained untrue statements relating to the
performance and management of the business.
About OPI Pacific
OPI Pacific Finance Limited, formerly known as MFS Pacific
Finance, was New Zealand-based finance company. OPI Pacific was a
subsidiary of Octaviar Limited.
OPI Pacific Finance Limited was placed in receivership on
September 15, 2009, by Perpetual Trust, the trustee for OPI's
secured debenture holders and unsecured note holders. This ended
the moratorium arrangement that has been in place since May 2008.
Perpetual Trust has appointed Colin McCloy and Maurice Noone of
PricewaterhouseCoopers as receivers.
At the time of the receivership it owed almost 11,000 investors
about NZ$256 million, of which 3.25 cents in the dollar has been
repaid, on top of the 22.19 cents investors received during the
moratorium, BusinessDesk said.
===============
P A K I S T A N
===============
PAKISTAN: Fitch Assigns 'B(EXP)' Rating on Forthcoming US$ Bonds
----------------------------------------------------------------
Fitch Ratings has assigned Pakistan's forthcoming US dollar-
denominated bonds an expected rating of 'B(EXP)'.
KEY RATING DRIVERS
The expected rating is in line with Pakistan's Long-Term Foreign-
Currency Issuer Default Rating (IDR) of 'B' with Stable Outlook.
RATING SENSITIVITIES
The rating would be sensitive to any changes in Pakistan's Long-
Term Foreign-Currency IDR. Earlier this week, Fitch published
Pakistan's Long-Term Foreign- and Local-Currency Issuer Default
Ratings (IDRs) at 'B' with Stable Outlooks.
====================
S O U T H K O R E A
====================
PANTECH CO: To Cut Half of Workforce
------------------------------------
Yonhap News Agency reports that Pantech Co., which has been
struggling to normalize operations, said on September 18 it plans
to cut nearly half of its employees.
Under the plan, around 400 staff will leave the company on Oct.23,
the company said.
Yonhap notes that Pantech has been on the verge of bankruptcy
after it sought to give up court protection from its creditors in
May. But a South Korean consortium led by optical manufacturer
Optis and telecom device firm Solid won approval from a local
court to acquire Pantech in July.
While the process was originally scheduled to be done this month,
the consortium delayed the procedure to expand the scope of the
deal to include service centers and other facilities, the report
relates.
Yonhap notes that Pantech started out successfully as a small
pager manufacturer but faced challenges as a handset maker in 2007
as its debt sharply increased following the acquisition of a local
handset maker, and suffered heavy losses.
About Pantech
Founded in 1991, Pantech Co. is a Korean manufacturer and seller
of mobile devices. Major shareholders include Qualcomm (11.96%),
Korea Development Bank (11.81%), and Samsung Electronics Co., Ltd
(10.03%).
Pantech filed for court receivership in Seoul, Korea in
August 2014 after its latest flagship smartphone failed to take
off.
The company filed for Chapter 15 bankruptcy protection at the U.S.
Bankruptcy Court in Atlanta (Bankr. N.D. Ga. Case No.: 14-70482)
on Oct. 16, 2014.
Joonwoo Lee, the Seoul-court appointed custodian, serving as
foreign representative in the U.S. case, is represented by
attorneys at Jacobs Legal, LLC, and H.C. Park & Associates.
The Debtor is estimated to have assets and debt ranging from
$100 million to $500 million.
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel
Elaine T. Fernandez, Julie Anne L. Toledo, and Peter A. Chapman,
Editors.
Copyright 2015. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
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TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000 or Nina Novak at 202-362-8552.
*** End of Transmission ***