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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
Tuesday, September 29, 2015, Vol. 18, No. 192
Headlines
A U S T R A L I A
BEVIC HOLDINGS: First Creditors' Meeting Set For October 6
LIZA EMANUELE: Court Puts Fashion Retailer Into Liquidation
MICHAEL DYER: In Liquidation; First Meeting Set For October 6
QRX PHARMA: Chapter 15 Case Summary
STARLODGE PTY: Administrators Put Assets Up for Sale
THINK CREATIVE: First Creditors' Meeting Set For October 7
W.E. SMITH: Employees Short-changed Salaries and Superannuation
H O N G K O N G
KU6 MEDIA: Annual Shareholders Meeting Set for October 29
I N D I A
ABHIJIT REALTORS: CARE Assigns B- Rating to INR35.81cr LT Loan
ASHWANI GOYAL: CARE Assigns 'B' Rating to INR10.71cr LT Loan
BALDEV KRISHANMEMORIAL: CARE Rates INR8.60cr LT Loan at B
EXCEL VEHICLES: CARE Upgrades Rating on INR57cr LT Loan to BB-
GMR HYDERABAD: CARE Cuts Rating on INR1,681.55cr Loan to D
GUPTA TEX: CARE Reaffirms 'D' Rating on INR9.76cr LT Loan
HMT LTD: CARE Assigns B- Rating to INR44.56cr LT Loan
K. G. P. GOLD: CARE Revises Rating on INR9cr Loan to B
K. G. P. JEWELLERS: CARE Revises Rating on INR7.65cr Loan to B
KEERTHI INDUSTRIES: CARE Ups Rating on INR34.66cr Loan to BB-
LAL BABA: CRISIL Assigns B- Rating to INR135MM Cash Credit
LAXMINARAYAN FIBER: CARE Reaffirms B+ Rating on INR7.72cr LT Loan
MAA TARINI: CRISIL Lowers Rating on INR50MM Cash Loan to 'D'
MAHAVIR TRANSMISSION: CRISIL Reaffirms B Rating on INR100MM Loan
MAK HOSPITALS: CARE Assigns 'B' Rating to INR12cr LT Loan
NAND HOSPITALITY: CRISIL Assigns B+ Rating to INR234.5MM Loan
NARULA FOODS: CRISIL Cuts Rating on INR196MM Cash Credit to D
NAV DURGA: CARE Ups Rating on INR71.88cr LT Loan to BB-
PALATHRA CONSTRUCTIONS: CRISIL Reaffirms B+ INR120M Loan Rating
SHREE PAWANSUT: CRISIL Assigns 'D' Rating to INR120MM Term Loan
SVR ENTERPRISES: CRISIL Assigns B Rating to INR50MM Cash Loan
TATHASTU SPINTEX: CARE Rates INR4cr LT Loan at 'B+'
TRANSSTROY BHOPAL: CARE Lowers Rating on INR500MM LT Loan to D
TRANSSTROY BHOPAL BYPASS: CARE Cuts INR207.25cr Loan Rating to D
TRANSSTROY DINDIGUL: CARE Cuts Rating on INR198cr Loan to 'D'
TRANSSTROY TRICHY: CARE Cuts Rating on INR180.43cr LT Loan to D
UNITED MACHINERY: CARE Assigns B+ Rating to INR3cr LT Loan
WATER WEALTH: CRISIL Assigns B Rating to INR40MM Cash Credit
I N D O N E S I A
MEDIA NUSANTARA: Moody's Puts Ba3 CFR Under Review for Downgrade
MNC INVESTAMA: Moody's Puts B1 CFR Under Review for Downgrade
MNC SKY: Moody's Puts B1 CFR Under Review for Downgrade
P H I L I P P I N E S
LBC EXPRESS: BIR Closes 33 Branches of LBC Unit Over Unpaid Taxes
LBC EXPRESS: Shuttered Unit's VAT Already Paid, Exec Says
T H A I L A N D
KRUNG THAI: Loan Restructuring is Credit Negative, Moody's Says
X X X X X X X X
* BOND PRICING: For the Week Sept. 21 to Sept. 25, 2015
- - - - -
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A U S T R A L I A
=================
BEVIC HOLDINGS: First Creditors' Meeting Set For October 6
----------------------------------------------------------
Jennifer Nettleton and David Winterbottom of KordaMentha were
appointed as administrator of Bevic Holdings Pty Ltd, trading as
Cherry Hill Pastoral Co, on Sept. 24, 2015.
A first meeting of the creditors of the Company will be held at
Armidale Ex Services Memorial Club, 137 Dumaresq St, in Armidale, on
Oct. 6, 2015, at 2:00 p.m.
LIZA EMANUELE: Court Puts Fashion Retailer Into Liquidation
-----------------------------------------------------------
Eloise Keating at SmartCompany reports that the Federal Court has
ordered a South Australian fashion business be liquidated, after the
Australian Tax Office pursued the retail business over AUD113,000 in
debts.
According to the report, the ATO applied to have Liza Emanuele Retail
wound up in July and the Federal Court in Adelaide ruled in the tax
office's favour on September 23, granting the ATO an order to
liquidate the business.
However, Liza Emanuele, who founded her eponymous label 10 years ago,
has told her customers it will be "business as usual", as she intends
to continue trading a retail store in Hyde Park, South Australia,
under a separate business entity, SmartCompany says.
"I wanted you to be the first to know that in light of today's events
I plan to reorganise my business which will see the ongoing business
operating from a simplified structure," the report quotes Ms. Emanuele
as saying on her website.
"One of the group companies will be liquidated as a result and this
will finalise the recently reported matters with the ATO."
"Resolving this will allow me to concentrate on my fashion brand and
focus on my retail outlet on King William Road, Hyde Park, which will
now operate under one unified entity."
In a statement issued to SmartCompany on September 28,
Ms. Emanuele said she has "learnt a lot from this process" and "will,
of course, take personal responsibility".
"I am committed to resolve any remaining issues with the ATO and will
continue discussions with them," Ms. Emanuele, as cited by
SmartCompany, said.
"Moving forward I will now be working with the right team around me to
help complete the restructure and establish the systems we need to run
an efficient and effective back office so that our customers can
continue to enjoy the creativity for which we are renowned."
SmartCompany, citing The Advertiser, reports that the Federal Court
heard Ms. Emanuele was told in April she had 21 days to pay the
business's debt to the ATO or risked facing insolvency proceedings
under the Corporations Act.
SmartCompany relates that deputy commissioner of taxation David Diment
reportedly told the Federal Court there had been a "failure to comply"
to pay the business's outstanding debt, which Ms. Emanuele
subsequently defaulted on.
Emanuele founded her label in 2005, starting out selling women's
fashion clothing before expanding into bridal in 2008. A year later,
she opened her Hyde Park retail store.
MICHAEL DYER: In Liquidation; First Meeting Set For October 6
-------------------------------------------------------------
Timothy Clifton and Mark Hall of Clifton Hall were appointed as Joint
and Several Liquidators of Michael Dyer Constructions Pty Ltd on Sept.
25, 2015.
A meeting of creditors will be held at 10:30 a.m. on Oct. 6, 2015, at
Clifton Hall, Level 3, 431 King William Street, in Adelaide.
QRX PHARMA: Chapter 15 Case Summary
-----------------------------------
Chapter 15 Petitioner: Timothy Heesh, as voluntary administrator
Chapter 15 Debtor: QRx Pharma Limited
aka QRx Pharma Pty Limited
Suite 1, Level 11
100 Walker Street, North Sydney
New South Wales, Australia 2060
Chapter 15 Case No.: 15-12599
Chapter 15 Petition Date: September 22, 2015
Court: United States Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Hon. Sean H. Lane
Chapter 15 Petitioner's Counsel: Jonathan Koevary, Esq.
OLSHAN FROME WOLOSKY LLP
65 East 55th Street
New York, NY 10019
Tel: 212.451.2265
Fax: 212.451.2222
Email: jkoevary@olshanlaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $100,000 to $500,000
STARLODGE PTY: Administrators Put Assets Up for Sale
----------------------------------------------------
Cliff Sanderson at Dissolve.com.au reports that urgent expressions of
interest are sought for the sale of the gold mining gravity separation
equipment and plant of Starlodge Pty Ltd. The sale is under
instructions from the company's administrators Grant Thornton, the
report says.
Dissolve.com.au relates that the assets for sale include a ball mill,
laboratory equipment and generators.
Stephen Robert Dixon, Laurence Andrew Fitzgerald and Stephen Robert
Dixon of Grant Thornton were appointed administrators of the company
on Aug. 20, 2015.
THINK CREATIVE: First Creditors' Meeting Set For October 7
----------------------------------------------------------
Terrence John Rose and Terry Grant van der Velde of SV Partners were
appointed as administrators of Think Creative Design Pty Ltd on Sept.
24, 2015.
A first meeting of the creditors of the Company will be held at
SV Partners, 138 Mary Street, in Brisbane, Queensland on Oct. 7, 2015,
at 10:30 a.m.
W.E. SMITH: Employees Short-changed Salaries and Superannuation
---------------------------------------------------------------
David Barwell at The Coff Coast Advocate reports that a number of
employees at W.E. Smith Engineering are claiming they have gone
without salaries for four weeks.
The Advocate has been told thousands of dollars in wages has been
unpaid at the company's Boambee base, with employees also failing to
receive superannuation entitlements.
One employee said unpaid wages had been "an ongoing issue" since the
company entered voluntary administration earlier this year -- claims
backed by the Australian Manufacturing Workers' Union, the Advocate
relates.
In May, it was announced a deal with KPL Group had enabled the
83-year-old business to remain open and continue to employ its 101
full-time employees, the report recalls. But the employee said despite
ongoing work at the manufacturing base, the company was not honoring
his wages and entitlements.
"I'm owed four weeks in wages and six to seven months in
superannuation," the report quotes the employee as saying. "We want
to do everything we can for the company but we're at the stage now
where we don't know what to do . . . a lot of us (employees) have
families and as you can imagine the morale at the moment is pretty
low."
According to the report, W.E. Smith director Michael Mutch said a
payment to employees had been made in mid-September but would not
confirm full wages and entitlements had been issued.
Speaking to the Advocate, Mr Mutch remained confident of the company's
future on the Coffs Coast.
"We've come out of the deed of company arrangement on the eighth of
September and that's a positive step," Mr. Mutch told the Advocate,
the report notes. "Investors saw the advantages of keeping the
company open and each and every one of our clients has stuck with us
through the administration process, which shows their confidence in
the company."
The Advocate says Australian Manufacturing Workers' Union industrial
officer Todd Nickle has consulted with affected employees.
"There are around 80 staff members employed under the enterprise
bargaining agreement who are owed their wages," the report quotes Mr
Nickle as saying. "This has been ongoing and people are taking leave
without pay, some are getting other jobs to get themselves across the
line -- a lot of the guys are at their wit's end.
"Employment is critical in Coffs and our delegates (the employees) are
counting on things pulling through."
Both the employee and Mr Nickle said payments for one week's wages had
been issued two weeks ago but had not been informed when their next
pay cheques could be expected, the report adds.
Established in 1922, W.E. Smith specialises in the design and
manufacture of equipment in 'exotic' materials and is also well
known for its autoclaves used in the mineral processing
industries.
Mark Robinson, Daniel Walley and Alan Walker were appointed as
administrators of W.E. Smith on May 11, 2015.
================
H O N G K O N G
================
KU6 MEDIA: Annual Shareholders Meeting Set for October 29
---------------------------------------------------------
An annual general meeting of shareholders of Ku6 Media Co., Ltd. will
be held on Oct. 29, 2015, at 10:00 a.m., Hong Kong time, at Boardroom
I, Business Centre, 3/F, Harbour Grand Kowloon, 20 Tak Fung Street,
Hunghom, Kowloon, Hong Kong, and for any adjournment thereof, for the
following purposes:
1. To elect Feng Gao to hold office as a director of the Company
until the next annual general meeting of shareholders or
until his successor is duly elected and qualified, or until
his earlier removal, or earlier vacation of office.
2. To elect Qingmin Dai to hold office as a director of the
Company until the next annual general meeting of
shareholders or until his successor is duly elected and
qualified, or until his earlier removal, or earlier vacation
of office.
3. To elect Yong Gui to hold office as a director of the Company
until the next annual general meeting of shareholders or
until his successor is duly elected and qualified, or until
his earlier removal, or earlier vacation of office.
4. To elect Jun Deng to hold office as a director of the
Company until the next annual general meeting of
shareholders or until her successor is duly elected and
qualified, or until her earlier removal, or earlier vacation
of office.
5. To elect Robert Chiu to hold office as a director of the
Company until the next annual general meeting of
shareholders or until his successor is duly elected and
qualified, or until his earlier removal, or earlier vacation
of office.
6. To elect Mingfeng Chen to hold office as a director of the
Company until the next annual general meeting of
shareholders or until his successor is duly elected and
qualified, or until his earlier removal, or earlier vacation
of office.
7. To elect Jason Ma to hold office as a director of the
Company until the next annual general meeting of
shareholders or until his successor is duly elected and
qualified, or until his earlier removal, or earlier vacation
of office.
8. To approve, confirm and ratify the appointment of
PricewaterhouseCoopers Zhong Tian CPAs Limited Company as
the independent auditor of the Company to hold office until
the next annual general meeting of shareholders and the
authorization of the Board of Directors of the Company to
fix the auditor's remuneration.
9. To transact such other business as may properly come before
the 2015 AGM or any adjournment thereof.
About Ku6 Media
Ku6 Media Co., Ltd. -- http://ir.ku6.com/-- is an Internet video
company in China focused on User-Generated Content. Through its
premier online brand and online video Web site --
http://www.ku6.com/-- Ku6 Media provides online video uploading
and sharing service, video reports, information and entertainment
in China.
Ku6 Media reported a net loss of $10.7 million in 2014 following a net
loss of $34.4 million in 2013.
As of June 30, 2015, the Company had US$8.91 million in total
assets, US$14.3 million in total liabilities, and a total
shareholders' deficit of US$5.42 million.
PricewaterhouseCoopers Zhong Tian LLP, in Shanghai, the People's
Republic of China, issued a "going concern" qualification on the
consolidated financial statements for the year ended Dec. 31, 2014,
citing that the Company's recurring losses, negative working capital,
net cash outflows, and uncertainties associated with significant
changes made, or planned to be made, in respect of the Company's
business model, raise substantial doubt about the Company's ability to
continue as a going concern.
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I N D I A
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ABHIJIT REALTORS: CARE Assigns B- Rating to INR35.81cr LT Loan
--------------------------------------------------------------
CARE assigns 'CARE B-' rating to the bank facilities of Abhijit
Realtors & Infraventures Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 35.81 CARE B- Assigned
Rating Rationale
The rating assigned to the bank facilities of Abhijit Realtors &
Infraventures Private Limited (ARIPL) is constrained by the project
execution risk on account of dependence on customer advances and
pending financial closure for the on-going project 'Jayanti
Nagari-V'(JN V), limited geographic presence of the group coupled with
competition from other real estate players in the region and inherent
cyclicality associated with the real estate sector.
The rating derives strengths from long experience of the promoters in
real estate development in Nagpur, receipt of all approvals and
clearances for the current project, strategic location of the project
'JN - V project and comfortable booking status of around 42% of the
total saleable area of the project as on July 31, 2015.
Ability of the company to execute construction activities as per the
schedule supported by timely inflow of the receivables and sale of the
inventory as envisaged are the key rating sensitivities.
ARPIL was started as a proprietorship firm formed by Mr Abhijit
Joydebkumar Majumdar in 1995 in Nagpur for the purpose of real estate
development. The firm was reconstituted as Abhijit Realtors and
Infraventures Private Limited (ARIPL) in September 2007, engaged into
real estate development and construction of
residential and commercial properties. ARIPL's promoters (also the
current directors) are Mr Abhijit Joydebkumar Majumdar, Mr Joydebkumar
Majumdar and Mrs Indu Majumdar.
The entity has currently undertaken three new projects namely,
'Jayanti Mansion - IX', 'Jayanti Nagari - IV' and 'Jayanti Nagari- V',
of which construction of Jayanti Mansion -IX and Jayanti Nagari - IV
have already been completed in December 2014 and approximately 93% and
94%, respectively, of the total saleable area has been sold as on July
31, 2015. Since January 2015, the company has been developing another
residential cum commercial project named 'JN - V' comprising of 360
units, with total saleable area of 2.86 lsf in Besa, Nagpur. The plan
includes 3 residential building of 11 storey each, comprising total of
194 units (2-3 BHK) and a commercial building consisting of 166 shops.
The land, for the project, JN -V, having an area of around 1.94, lakh
sq. ft (lsf), has been acquired by executing a sale deed with the land
owners in the name of ARIPL. The project boasts of amenities like club
house, parking area, garden, swimming pool and gymnasium. The project
is expected to be completed by December 2016.
ASHWANI GOYAL: CARE Assigns 'B' Rating to INR10.71cr LT Loan
------------------------------------------------------------
CARE assigns 'CARE B' rating to the bank facilities of Ashwani Goyal.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 10.71 CARE B Assigned
Rating Rationale
The rating assigned to the bank facilities of Ashwani Goyal (ASG) is
constrained by residual implementation, stabilization
and ramping-up risk associated with its debt-funded greenfield hotel
project, cyclical and competitive nature of the hospitality industry
and competition from upcoming and existing hotels operating in the
region. The rating is also constrained by subdued industry outlook of
hotel industry and constitution of the entity being a proprietorship
firm.
The rating, however, draws comfort from experienced proprietor and
location advantage of the hotel.
Going forward, ability of the firm to achieve projected occupancy
levels and average room rate and improvement in capital structure
would be key rating sensitivities.
ASG is a proprietorship firm established by Mr Ashwani Goyal. The firm
commenced the development of 4 Star Luxury hotel project in 2013 for
total capacity of 75 rooms with other facilities such as bar
restaurant, banquet, gymnasium and health zone. The total project cost
for setting up hotel is INR16.85 crore being funded through promoters'
contribution of INR6.89 crore (in the form of capital and unsecured
loans) and term loan of INR9.96 crore. The hotel is expected to
commence commercial operations from January 2016.
BALDEV KRISHANMEMORIAL: CARE Rates INR8.60cr LT Loan at B
---------------------------------------------------------
CARE assigns 'CARE B' rating to the bank facilities of Baldev
Krishanmemorial Charitable Society.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 8.60 CARE B Assigned
Rating Rationale
The rating assigned to the bank facilities of Baldev Krishan Memorial
Charitable Society (BKM) is primarily constrained by
its stabilisation and execution risk associated with new school
operations, small scale of operations and limited reach of
the society. The rating is further constrained by high regulation in
the educational sector in India and increasing competition. The
rating, however, derives strength from the experienced trustees and
moderate surplus margins and capital structure.
Going forward, the ability of the trust to improve the enrolment ratio
of school in a highly competitive scenario while improving the
profitability margins and capital structure would be the key rating
sensitivities.
BKM was established by the name of 'ISF College of Pharmacy Managing
Committee' in 1992 by Mr Baldev Singh. Later on, after the death of Mr
Baldev Singh, the name was changed to BKM which got registered under
the Society registration Act-1860, in February 2010. The society is
currently being managed by Mr Anoop Garg and his wife Mrs Rinkle Garg
with an objective to provide higher education in the field of
dentistry. The trust has established BRS Institute of Medical Sciences
in 1992, affiliated to Pt. B.D.S University of Health Science, Rohtak
and offers courses of BDS (Bachelor in Dental Surgery) and MDS (Master
of Dental Surgery) under it. The college is located in Panchkula,
Haryana. The BDS course started from 1992, MDS course got commenced
from 2007. Furthermore, BKM has established a school named 'Sanskaar
International School' upto 8th standard (affiliated to CBSE) at Banga,
Punjab. The school started commercial operations with enrollment of
first batch in April 2015.
For FY15 (Provisional; refers to the period April 1 to March 31), BKM
achieved a total operating income of INR9.56 crore
with PBILDT and PAT of INR3.68 crore and INR0.28 crore, respectively,
as against the total operating income of INR7.76
crore with PBILDT and PAT of INR1.60 crore and INR0.06 crore,
respectively, for FY14.
EXCEL VEHICLES: CARE Upgrades Rating on INR57cr LT Loan to BB-
--------------------------------------------------------------
CARE revises rating assigned to the bank facilities of
Excel Vehicles Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 57 CARE BB- Revised from
CARE B+
Rating Rationale
The revision in the rating assigned to the bank facilities of Excel
Vehicles Private Limited (EVPL) is primarily on account of
significant increase in total operating income coupled with
improvement in net profit margin during FY15 (Prov. - refers
to the period April 1 to March 31) on the back of stabilization of
operations. The rating, however, continues to remain constrained on
account of low profit margin inherent to commercial vehicle dealership
business, leveraged capital structure and weak debt coverage
indicators. The rating further continues to remain constrained on
account of intense competition amongst commercial vehicle dealers and
alternative brands along with fortune of the company linked with
growth of principal commercial vehicle manufacturer.
The rating, however, continues to draw strength from established track
record of group with integrated services coupled with wide experience
of the promoters in the automobile dealership industry.
The ability of EVPL to increase its scale of operations coupled with
the improvement in profit margins and capital structure while managing
its working capital requirements efficiently remain the key rating
sensitivities.
Incorporated in the year 2012, EVPL belongs to Bhopal-based "My Car"
Group. My Car Group has diversified business interest through various
group entities which includes automobile dealership (of Maruti Suzuki
India Limited and in the name of My Car (Bhopal) Pvt. Ltd. and My Car
(Indore) Pvt. Ltd. MSIL: rated 'CRISIL AAA/A1+'), two-wheeler
dealership (of Hero Motocorp Ltd. HML: rated 'ICRA AAA/A1+'),
distributorship of Nokia and HCL accessories, retail business
(operates multi brand outlets of various brands such as Calvin Klein,
FCUK, Espirit, Being Human and many more), real estate business and
dealership of JCB earth moving equipments. EVPL operates in Bhopal and
nearby region as an authorized dealer of Tata Motors Limited (TML:
rated 'CARE AA') for its commercial vehicle segment. EVPL deals in all
models of TML in commercial vehicle segment. The catchment area for
EVPL is Bhopal, Itarsi, Vidisha, Raisen and Hoshangabad being a sole
dealer of TML (Commercial Vehicle Segment) for these areas into Madhya
Pradesh region.
EVPL commenced operations fromMay 2013 hence FY15 was the first full
year of operations for the company.
During FY14, EVPL reported a TOI of INR73.42 crore and PAT of INR0.07
crore. Furthermore, during FY15 (Provisional), EVPL
reported profit before tax (PBT) of INR0.93 crore on a TOI of INR157.14 crore.
GMR HYDERABAD: CARE Cuts Rating on INR1,681.55cr Loan to D
----------------------------------------------------------
CARE revises ratings assigned to the bank facilities of
GMR Hyderabad Vijayawada Expressways Pvt. Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 1,681.55 CARE D Revised from
CARE BBB-
Short-term Bank Facilities 87.00 CARE D Revised from
CARE A3
Rating Rationale
The revision in the ratings assigned to the bank facilities of GMR
Hyderabad Vijayawada Expressways Pvt. Ltd. (GHVEPL) takes into the
account on-going delays in servicing of debt obligations and
persistent cash losses on account of lower than anticipated toll
revenue.
GMR Hyderabad Vijayawada Expressways Pvt. Ltd. (GHVEPL) is a Special
Purpose Vehicle (SPV) incorporated on June 11, 2009, promoted by GMR
Infrastructure Limited (GIL - 90% with associates) and Punj Lloyd
Limited (PLL-10%, Rated "CARE D (NCD)"). GHVEPL was formed for
construction of four/six laning of 181.50 km of Hyderabad Vijayawada
section of NH-9 starting from km 40 to km 221.50 in the State of
Andhra Pradesh on Build Operate and Transfer (BOT) - Toll basis,
awarded through competitive bidding by National Highways Authority of
India (NHAI). The company received 'Provisional completion
certificate' from Independent Engineer on December 20, 2012, on behalf
of NHAI and commenced toll operations for four laning from December
21, 2012. The project road is a part of NH - 9 linking Hyderabad and
Vijayawada in the state of Andhra Pradesh. GVHEPL is required to share
35% of its revenue to NHAI as per the Concession Agreement (CA).
During FY15 (refers to the period April 1 to March 31), GHVEPL
reported a PAT of INR-92.29 crore on a total operating income of
INR153.16 crore as against a PAT and a total operating income of
INR-93.58 crore and INR145.36 crore respectively, in FY14.
GUPTA TEX: CARE Reaffirms 'D' Rating on INR9.76cr LT Loan
---------------------------------------------------------
CARE reaffirms the ratings assigned to bank facilities of
Gupta Tex Prints Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 9.76 CARE D Reaffirmed
Long term/ Short-term 7.00 CARE D/CARE D
Bank Facilities Reaffirmed
Short-term Bank Facilities 0.25 CARE D Reaffirmed
Rating Rationale
The reaffirmation of the ratings assigned to the bank facilities of
Gupta Tex Prints Private Limited (GTPPL) was on account
of ongoing delays in servicing of debt obligations due to weak
liquidity position.
Establishing a clear track record of timely servicing of debt
obligations along with improvement in the liquidity position
remain the key rating sensitivities.
GTPPL was initially formed as Gupta Dyeing and Printing Mills (GDPM),
a partnership firm in 1979 by the Gupta family of
Surat. Later on in 2007, GDPM was converted into a private limited
company. GTPPL is primarily engaged in fabric processing (bleaching,
printing, dyeing & embroidery) and also does the job work activities
as well as trading of grey yarn and finished fabric. The fabric
processed by GTPPL is primarily used for making sarees & ladies dress
material. The finished fabric is marketed under the brand name of
'Gupta Sarees'. GTPPL has an installed capacity of 1.25 lakh meters
per day for processing of grey fabric at its sole processing unit
located in Surat (Gujarat).
During FY15 (Provisional; refers to the period April 1 to March 31),
GTPPL reported a total operating income (TOI) of INR38.03 crore with a
net loss of INR1.18 crore as against a TOI of INR34.89 crore with a
net loss of INR1.24 crore during FY14.
HMT LTD: CARE Assigns B- Rating to INR44.56cr LT Loan
-----------------------------------------------------
CARE assigns 'CARE B-/CARE A4' ratings to the bank facilities of
HMT Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based-Long-term
Cash credit 44.56 CARE B- Assigned
Non-fund-based- Short
Term LC/BG 11.25 CARE A4 Assigned
Rating Rationale
The ratings assigned to HMT Limited (HMT) are constrained by plants
running at lower capacity utilization levels, continuous decline in
sales & operating losses over the years and weak liquidity position of
the company. The ratings, however, takes comfort from HMT's long
standing & established presence in the industry and continuous support
from the Government of India by infusion of funds.
The ability of the company to improve its liquidity position and its
ability to turnaround financial and operation performance to reduce
its reliance upon GOI funds and bank borrowings would be the key
rating sensitivity.
HMT Ltd (HMT) was incorporated in 1953 by the Government of India
(GOI) as Hindustan Machine Tools Pvt. Ltd., subsequently renamed as
HMT Limited on August 31, 1978. The company was primarily engaged in
manufacturing of watches, tractors, printing machinery, metal forming
presses, die casting plastic processing machinery, CNC systems and
bearings. In 1990, the company was restructured into different
business groups such as machine tools business group, industrial
machinery business group, tractor business group, consumer business
group and food processing business group. In the year 1999-2000, these
business groups were regrouped and made subsidiaries of the holding
company HMT Limited. HMT spun off machine tools and watch business
into subsidiary companies and tractor division was retained with HMT.
Presently, HMT has five subsidiaries viz. HMT Machine Tools Ltd.
(rated CARE D), HMT Watches Ltd., HMT Chinar Watches Ltd., HMT
(International) Ltd. and HMT Bearings Ltd.
HMT has a manufacturing unit at Pinjore, Haryana with an installed
capacity to manufacture 8500 tractors p.a.
Furthermore, the company has assembly lines at Mohali, Hyderabad and Aurangabad.
During FY15 (refers to the period April 1 to March 31), HMT registered
a total operating income of INR60.3 crore (PY:
INR78.4 crore) with a net loss of INR93.8 crore (PY: Profit of INR87.2 crore).
K. G. P. GOLD: CARE Revises Rating on INR9cr Loan to B
------------------------------------------------------
CARE revises the long term rating assigned to the bank facilities of
K. G. P. Gold Palace.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 9 CARE B Revised from
CARE B+
Rating Rationale
The revision in the rating factors in deterioration in the capital
structure of K.G.P. Gold Palace (KGP) marked by increase in gearing
following higher borrowings and withdrawal of partners' capital.
The rating continues to be constrained by nascent stage of operations
of KGP and its constitution as a partnership concern, susceptibility
of profitability to volatile gold prices, weak liquidity profile and
presence in a highly competitive & fragmented Gems & Jewelry retail
industry. The rating, however, derives strength from experienced
promoters, wide range of product offerings, and growth in income
during FY15 (refers to the period April 1 toMarch 31). The ability of
the firm to improve its capital structure while managing its working
capital effectively and withstand market competition constitutes the
key rating sensitivities.
Davangere-based (Karnataka) KGP was originally formed as a partnership
concern in the name of Khazana Gold Palace by
Mr Ganesh D. Shet and Mrs Surekha G. Shet in 2013. Later in April
2014, the partnership deed was reconstituted with Mr Santosh G. Shet,
Mrs Vidya M. Shet, Mr Ganesh M. Revankar, Mr Maruthi C. Raikar, Mr
Sandesh Raikar and Mrs Sharda Raikar joining as new partners and name
of the firm was changed to its present name. Subsequently, Mrs Vidya
M. Shet andMr Ganesh M. Revankar retired from the partnership in June
2014.
KGP is engaged in the business of retailing of gold, diamond, silver
and precious stones studded jewellery through its one
showroom at Davangere. The firm offers wide range of products that
include rings, earrings, pendants, necklaces, bracelets, bangles and
medallions. KGP procures raw materials from local market and
outsources its manufacturing activities on job work basis to
manufacturers in local markets. The partners of KGP have also promoted
K.G.P. Jewellers (KGPJ) which is engaged in similar business.
During FY15 (provisional); KGP reported a PAT of INR0.48 crore on a
total operating income of INR24.63 crore as against a PAT and a total
operating income of INR0.23 crore and INR13.92, crore, respectively,
in FY14.
K. G. P. JEWELLERS: CARE Revises Rating on INR7.65cr Loan to B
--------------------------------------------------------------
CARE revises the long term rating assigned to the bank facilities of
K. G. P. Jewellers.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 7.65 CARE B Revised from
CARE B+
Rating Rationale
The revision in the long-term rating of K.G.P. Jewellers (KGPJ)
factors in the deterioration in its capital structure marked by
increase in gearing following higher borrowings and withdrawal of
partners' capital. The rating continues to be constrained by KGPJ's
small scale of operations and its constitution as partnership concern,
susceptibility of operating profitability to volatile gold prices and
presence in a highly competitive and fragmented Gems & Jewelry retail
industry.
The rating, however, derives strength from experienced promoters, wide
range of product offerings. The rating also takes note of considerable
growth in the total income driven by addition of a new showroom at
Hubli during FY15 (refers to the period April 1 to March 31).
The ability of the company to improve its capital structure while
managing its working capital effectively and withstand market
competition constitutes the key rating sensitivities.
Davangere-based (Karnataka) KGPJ was originally formed as a
partnership concern by the name of M. G. Jewellers by Mr Ganesh D.
Shet, Mrs Surekha G Shet, Mrs Vidya M. Shet and Mr Ganesh M. Revankar
in 2011. Later on in April 2014, partnership deed was reconstituted
with Mr Santosh G. Shet, Mr Maruthi C. Raikar, Mr Sandesh Raikar and
Mrs Sharda Raikar joining as new partners and name of the firmchanged
to its present name.
KGPJ is engaged in the business of retailing of gold, diamond, silver
and precious stones studded jewellery two showrooms at Davangere and
Hubli. KGPJ procures raw materials from local market and outsources
its manufacturing activities on job work basis. Partners of KGPJ have
also promoted K.G.P. Gold Palace (KGP) which is engaged in similar
business. As a group, they are in the business since last 4 years.
During FY15 (provisional), KGPJ reported a PAT of INR0.43 crore on a
total operating income of INR23.44 crore as against a PAT and a total
operating income of INR0.12 crore and INR12.55, crore, respectively,
in FY14.
KEERTHI INDUSTRIES: CARE Ups Rating on INR34.66cr Loan to BB-
-------------------------------------------------------------
CARE revises ratings assigned to bank facilities of Keerthi Industries Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 34.66 CARE BB- Revised from
CARE C
Rating Rationale
The revision in the rating assigned to the bank facilities of Keerthi
Industries Ltd takes into account improvement in the
overall financial risk profile of the company as reflected in the
increase in total operating income and improvement in profitability
margins. The rating continues to derive strength from experience of
the promoters, moderate liquidity position of the company and
favourable industry prospects.
The rating is, however, constrained by geographical concentration in
cement sales, small scale of operations and intense competition in
industry.
The ability of the company to increase its scale of operations and
improve its profitability margins are the key rating sensitivities.
Incorporated in 1982, KIL was originally promoted by Late Mr J S
Krishna Murthy as Suvarna Cements Ltd. Mrs J. Triveni (Chairman) and
Mr J. S. Rao (Managing Director) took over management in FY2000. KIL
is engaged in the manufacturing of specialized cement of 43 & 53
grades, ie, Ordinary Portland Cement (OPC) and Pozzolona Portland
Cement (PPC). The manufacturing facility of cement has installed
capacity of 594,000 TPA and the unit is located at Nalgonda district
of Telangana state. KIL sells cement under the brand name 'Suvarna
Cements'.
Apart from the cement business, KIL is also in wind power generation
(1.5 MW installed capacity), and manufacturing of
printed circuit boards (PCB) (37,000 sq meters installed capacity).
During FY15 (refers to the period April 01 to March 31), KIL has
reported a total operating income of INR153.89 crore (Rs.125.65 crore
in FY14) and a PAT of INR17.79 crore (net loss of INR18.04 crore in
FY14).
LAL BABA: CRISIL Assigns B- Rating to INR135MM Cash Credit
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable' rating to the long-term
bank facilities of Lal Baba Seamless Tubes Pvt Ltd (LBSTPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 135 CRISIL B-/Stable
Term Loan 18.2 CRISIL B-/Stable
The rating reflects the company's small scale of operations,
fluctuations in raw material prices, large working-capital
requirements, and below-average financial risk profile. These are
partially offset by the promoters' extensive experience in the alloy
steel seamless tubes manufacturing business.
Outlook: Stable
CRISIL believes LBSTPL will continue to benefit over the medium term
from its promoters' extensive industry experience and established
relationship with customers and suppliers. The outlook may be revised
to 'Positive' in case the company's operating income and profitability
improve significantly, or it improves its working capital management,
leading to better business risk profile. Conversely, the outlook may
be revised to 'Negative' in case its liquidity deteriorates owing to
low operating income and profitability, or weak working capital
management or a large debt-funded capital expenditure.
Incorporated in 2006, LBSTPL manufactures carbon and alloy steel
seamless tubes. The tubes are primarily used in the oil and gas
industry, steam boilers, pipelines, engineering industry and other
processing industries.
LAXMINARAYAN FIBER: CARE Reaffirms B+ Rating on INR7.72cr LT Loan
-----------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Laxminarayan Fiber Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 7.72 CARE B+ Reaffirmed
Rating Rationale
The rating assigned to the bank facilities of Laxminarayan Fiber
Private Limited (LFPL) continues to remain constrained on account of
its short track record of operations coupled with its financial risk
profile marked by thin profitability, leveraged capital structure and
moderately weak debt coverage indicators. Furthermore, the rating
continues to remain constrained on account of LFPL's exposure to raw
material price fluctuation risk, working capital intensive nature of
operations and presence in the highly fragmented and competitive
cotton ginning industry with exposure to adverse changes in government
policy. The rating also factors in the decline in its turnover albeit
slight improvement in profitability and capital structure in FY15
(provisional; refers to the period April 1 to March 31).
The rating continues to derive strength from the long standing
experience of its promoters in the cotton ginning business,
moderate liquidity position and location advantage.
The ability of LFPL to increase its scale of operations, improve its
profitability and capital structure along with the effective working
capital management remain the key rating sensitivities.
LFPL was incorporated on May 22, 2012 by six promoters of Goyal &
Tayal family at Barwani district, Madhya Pradesh with the vision to
engage in the cotton ginning and pressing business with an annual
installed capacity of 54,000 bales of cotton and 15,400 metric tonnes
(MT) of cotton seeds. The manufacturing unit of LFPL is located at
Jalana district, Maharashtra wherein the commercial production
commenced from December 2012.
As per the provisional results for FY15, the company reported a PBT of
INR0.21 crore [FY14: INR0.15 crore] on a total operating income (TOI)
of INR34.30 crore [FY14: INR42.89 crore].
MAA TARINI: CRISIL Lowers Rating on INR50MM Cash Loan to 'D'
------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities of
Maa Tarini Transport Pvt Ltd (MTTPL) to 'CRISIL D' from 'CRISIL
B+/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Proposed Long Term 46.5 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL B+/Stable')
The rating downgrade reflects the overutilisation of MTTPL's cash
credit limits for more than 30 days; the overutilisation is on account
of the firm's weak liquidity.
The rating reflects MTTPL's deteriorating business risk profile,
marked by exposure to regulatory risks in the mining business and to
geographic concentration risk. These rating weaknesses are partially
offset by MTTPL's moderate financial risk profile marked by low
gearing and comfortable debt protection metrics.
Set up in 2007 as a closely held company by Mr. Srimanta Kumar
Tripathy, MTTPL provides iron ore transportation services in Odisha.
It also trades in iron ore.
MAHAVIR TRANSMISSION: CRISIL Reaffirms B Rating on INR100MM Loan
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Mahavir Transmission Udyog
Pvt Ltd (MTUPL) continue to reflect MTUPL's weak financial risk
profile marked by high gearing and weak debt protection metrics, and
modest scale of operations in a highly fragmented industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 60 CRISIL A4 (Reaffirmed)
Cash Credit 100 CRISIL B/Stable (Reaffirmed)
Letter of Credit 40 CRISIL A4 (Reaffirmed)
These rating weaknesses are partially offset by the extensive
experience of MTUPL's promoters and the company's established customer
base in the aluminium conductors business.
Outlook: Stable
CRISIL believes that MTUPL will maintain a stable business risk
profile over the medium term on the back of its established presence
in the domestic aluminum conductor business. However, the company's
financial risk profile will remain constrained, marked by leveraged
capital structure and weak debt protection measures, over the period.
The outlook may be revised to 'Positive' if MTUPL's scale of
operations or margins increases significantly resulting in improvement
in its financial risk profile. Conversely, the outlook may be revised
to 'Negative' if the company reports significant decline in revenue
growth or margins or undertakes any large debt-funded capital
expenditure.
MTUPL was set up in 1995 by Mr. Rakesh Jain and his family members as
a partnership firm, Class Time Trading and later renamed and
reconstituted in 2004 as a private limited company. The company
commenced operations in 2004 with a manufacturing facility in
Dehradun, Uttarakhand. It is engaged in manufacturing of Aluminium
Conductor Steel Reinforced and All Aluminium Alloy.
MAK HOSPITALS: CARE Assigns 'B' Rating to INR12cr LT Loan
---------------------------------------------------------
CARE assigns 'CARE B' rating to the bank facilities of Mak Hospitals
Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 12 CARE B Assigned
Rating Rationale
The rating assigned to the bank facilities of MAK Hospitals Private
Limited (MAK) is constrained by the very small sized
operations, concentration of revenues from a single hospital,
dependence on scarcely available medical professionals, declining
profit margin and meagre accruals. The rating is further constrained
by the significantly debt funded project in progress, to establish one
more hospital block and weak gearing and coverage indicators.
The rating does factor in long experience of seven decades of the
promoters in the health care industry and long operational track
record of the hospital.
Going forward, the ability to complete the project without any time
and cost over runs, bring the new bed capacity to effective use and
monetize the same, thus scale up its operations and improve profit
margins will be the key rating sensitivities.
MAK was established in 2004, with the objective of providing super
specialty facilities in medical care, by Dr Shanu Mullaveetil and his
wife Dr Jisha Shanu. MAK took over the operations of Koya's Hospital,
Cheruvannur which was established by his grandfather Dr M Mohammed in
1945. In 1972, Dr M A Koya, his son took over the operations of the
hospital. The hospital had been adding various specialities, medical
equipment and facilities over the years and today is a 70 bedded
hospital. Dr Koya is the Chief Medical officer. The hospital is also
approved by the All India Council of Technical Education for
conducting para medical courses in X-Ray, Lab Technician and other
such courses. The Government of Kerala has approved the hospital for
conducting Nurses Training Courses.
MAK has achieved a PAT of INR0.16 crore on a total operating income of
INR5.06 crore in FY15 (Provisional- refers to the
period April 1 to March 31) as compared with a PAT of INR0.03 crore on
a total operating income of INR4.18 crore in
FY14(Audited).
NAND HOSPITALITY: CRISIL Assigns B+ Rating to INR234.5MM Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the
bank facilities of Nand Hospitality Pvt Ltd (NHPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 234.5 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 1.3 CRISIL B+/Stable
Bank Guarantee 6.0 CRISIL A4
Cash Credit 3.2 CRISIL B+/Stable
The ratings reflect NHPL's exposure to implementation-related risks
associated with its upcoming three-star hotel and to intense
competition in the hospitality industry. These rating weaknesses are
partially offset by extensive industry experience of the company's
promoters.
Outlook: Stable
CRISIL believes NHPL will benefit over the medium term from promoters'
extensive industry experience. However, the company will remain
exposed to implementation-related risks in its ongoing project. The
outlook may be revised to 'Positive' if project completes on time and
accrual and operating margin from hotel are high, thereby improving
the company's capital structure. Conversely, the outlook may be
revised to 'Negative' if there are significant cost overruns or if
accrual is low, thereby negatively impacting NHPL's debt-servicing
ability.
NHPL is constructing a three-star hotel in Vadodara, which is expected
to commence operations from July 2017.
NARULA FOODS: CRISIL Cuts Rating on INR196MM Cash Credit to D
-------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities of
Narula Foods Pvt Ltd (NFPL) to 'CRISIL D' from 'CRISIL BB-/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 196 CRISIL D (Downgraded
from 'CRISIL BB-/Stable')
Term Loan 4 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
The downgrade reflects delay by NFPL in servicing its debt. The delays
were because the firm was not operational for two months as a fire
outbreak in its unit, resulted in stock destruction. NEPL also has
weak financial risk profile, large working capital requirements and
modest scale of operations.
Incorporated in 1997, NFPL mills rice and extracts and refines rice
bran oil. The company is promoted by Mr. Ashok Narula and Mr. Ravi
Narula. Its manufacturing unit is in Guru Har Sahai (Punjab).
NFPL's book profit was INR5 million and net sales INR1410 million in
2013-14 (refers to financial year, April 1 to March 31), against INR4
million and INR1154 million, respectively, in 2012-13.
NAV DURGA: CARE Ups Rating on INR71.88cr LT Loan to BB-
-------------------------------------------------------
CARE revises the LT Rating and reaffirms the ST rating assigned to the
bank facilities of NAV Durga Fuel Pvt Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 71.88 'CARE BB-' Revised
from CARE B
Short term Bank Facilities 8.00 'CARE A4' Reaffirmed
Rating Rationale
The revision in long term rating takes into account improvement in
operational and financial performance of the company in FY15 coupled
with equity infusion by the promoter group. Such ratings however
continue to remain constrained on account of low capacity utilisation
of the manufacturing facilities, lack of backward integration for
primary raw materials, working capital intensive operation leading to
stretched liquidity position, intense competition and inherent
cyclicality associated with the steel industry. Satisfactory business
experience of the promoters and company's comfortable capital
structure remain the key rating strengths. Ability of the company to
increase scale of operation, improve profitability levels and margin,
manage working capital effectively and outlook of the domestic steel
industry would remain the key rating sensitivities.
Nav Durga Fuel Pvt. Ltd. (NDFPL) belonging to Gadodia family of Orissa
is engaged in manufacturing of sponge iron (90,000 MTPA), ingots
(66,000 MTPA) and TMT Bars (90,000 MTPA). The company also has a
captive coal based thermal power plant of 5 MW, a waste heat recovery
based power plant of 5 MW and a coal washery unit. NDFPL sells its
products under the brand name "Shristi". Apart from this, NDFPL is
also involved in trading of iron & steel related products,
contributing around 11.2% of the total revenue in FY15.
NDFPL registered PAT of INR0.94 crore on total operating income of
INR185.92 crore in FY15 (refers to the period April 1 to
March 31) as compared to net loss of INR23.62 crore on a total
operating income of INR143.99 crore in FY14. Further, NDFPL posted net
profit of INR0.7 crore on a net sale of INR38.2 crore during the
quarter ended June 30, 2015.
PALATHRA CONSTRUCTIONS: CRISIL Reaffirms B+ INR120M Loan Rating
---------------------------------------------------------------
CRISIL's rating on the long-term bank facility of Palathra
Constructions (PC; part of the Palathra group) continues to reflect
the Palathra group's large working capital requirements and modest
scale of operations in the fragmented civil construction industry. The
rating also factors in the group's below-average financial risk
profile, marked by high gearing. These rating weaknesses are partially
offset by the extensive experience of the group's promoters in the
civil construction industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Overdraft Facility 120 CRISIL B+/Stable (Reaffirmed)
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of PC and Manoj Mathew (MM). This is because
the two entities, together referred to as the Palathra group, are in
the same line of business and under a common management, and have
significant financial and operational linkages.
Outlook: Stable
CRISIL believes that the Palathra group will continue to benefit over
the medium term from its promoters' industry experience. The outlook
may be revised to 'Positive' if the group scales up operations
significantly while maintaining profitability, leading to substantial
cash accruals and improved liquidity. Conversely, the outlook may be
revised to 'Negative' in case of low revenue or profitability, or
deterioration in working capital management resulting in weak
liquidity, or large debt-funded capital expenditure (capex), weakening
financial risk profile.
Update
The Palathra group reported revenue of INR174 million for 2014-15
(refers to financial year, April 1 to March 31) as compared to INR160
million for 2013-14. The group's operating profitability declined to
22.9 per cent in 2014-15 from 29.8 per cent in 2013-14 due to
execution of certain low-margin projects. The group generated revenue
of INR105 million in the first quarter of 2015-16 and is expected to
grow at a healthy rate over the medium term. CRISIL believes that the
Palathra group's revenue will remain at INR250 million to INR270
million over the medium term because of its current order book of
INR400 million.
The group's financial risk profile is marked by modest net worth, high
gearing, and below-average debt protection metrics. Net worth and
gearing were INR45 million and 4.09 times, respectively, as on March
31, 2015. With no debt-funded capex, gearing will decline, but remain
high, over the medium term. High gearing led to below-average debt
protection metrics as reflected in interest coverage of 1.7 times for
2014-15. CRISIL believes that the Palathra group's financial risk
profile will remain below average over the medium term marked by high
gearing.
The group has stretched liquidity marked by high bank limit
utilisation, though supported by adequate cash accruals for meeting
debt obligations. The group's bank limits have been utilised at around
96 per cent for the six months through April 2015 with several
instances of overdrawn limits. However, cash accruals of INR14 million
will be sufficient to meet debt obligation of INR2.8 million in
2015-16.
Set up in 2007, PC undertakes civil construction work for the
Government of Kerala. The firm also constructs transmission towers for
telecom operators.
MM also undertakes civil construction work for Government of Kerala.
The group's day-to-day operations are managed by Mr. Manoj Mathew and
Mr. Shaji Mathew.
SHREE PAWANSUT: CRISIL Assigns 'D' Rating to INR120MM Term Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the long-term bank
facility of Shree Pawansut Infotech Pvt Ltd (SPIPL). The rating
reflects instances of delay by SPIPL in servicing its debt; the delays
have been caused by weak liquidity arising out of delay in sale of
constructed property.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 120 CRISIL D
SPIPL also has a weak financial risk profile, marked by below-average
capital structure, and weak debt protection metrics, and project
concentration at a single-site. However, the company benefits from
prime location of the property.
Incorporated in 2005, SPIPL is a special purpose vehicle, promoted by
Mr. Somnath V Sakre and associates. The company owns Kharadi Knowledge
Park, an IT park, in Kharadi, Pune (Maharashtra). It has two towers of
five and six floors with total saleable area of around 0.5 million
square feet.
SVR ENTERPRISES: CRISIL Assigns B Rating to INR50MM Cash Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term bank
facilities of SVR Enterprises (SVRE).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Bank Guarantee 10 CRISIL B/Stable
Proposed Cash Credit Limit 50 CRISIL B/Stable
The rating reflects SVRE's modest scale of operations in an intensely
competitive mobiles distribution business and below-average financial
risk profile marked by high total outside liabilities to tangible net
worth ratio and small networth base. These rating weaknesses are
partially offset by extensive industry experience of its promoters and
benefits derived from exclusive distributorship for its region of
operation.
Outlook: Stable
CRISIL believes that SVRE will continue to benefit over the medium
term from its established presence and promoters' extensive industry
experience. The outlook may be revised to 'Positive' if SVRE's
financial risk profile and working capital management improve while
improving its scale of operations. Conversely, the outlook may be
revised to 'Negative' if the firm's revenues and profitability decline
significantly, or if it undertakes a large debt-funded capital
expenditure programme, adversely affecting its capital structure.
Promoted by Mr. Viswanadh Penumalla in 2011 and based out of
Vishakhapatnam in Andhra Pradesh, SVRE is engaged in distribution of
products of Micromax Informatics Limited in Vishakhapatnam region.
TATHASTU SPINTEX: CARE Rates INR4cr LT Loan at 'B+'
---------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank facilities of
Tathastu Spintex Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 4.00 CARE B+ Assigned
Long-term/Short-term Bank 1.75 CARE B+/CARE A4
Facilities Assigned
Rating Rationale
The ratings of Tathastu Spintex Private Limited (TSPL) are constrained
on account of project execution risk associated with
green field project (for setting up the cotton yarn manufacturing
facility) along with the debt laden funding pattern of project.
The ratings are further constrained by the susceptibility of TSPL's
profit margin to volatile cotton and cotton yarn prices and presence
in the highly competitive cotton yarn segment.
The ratings, however, derives strength from promoter's experience,
technical services of professionals availed by the promoters to
partially mitigate the execution risk, availability of various
government benefits apart from TSPL's favourable location.
TSPL's ability to complete the envisaged project within time and cost
parameters as well as its ability to achieve the envisaged level of
scale of operations and profitability would be the key rating
sensitivities.
Incorporated on April 10, 2015, Tathastu Spintex Private Limited
(TSPL) is a Morbi based entity promoted by Mr Ashwin Bhatasna and Mr
Mukesh Savsani. TSPL is setting up a green-field project in Tankara
(situated on outskirts of Morbi) of installing 16,320 spindles having
an installed capacity of producing 3,300 Metric Tonnes Per Annum
(MTPA) of cotton yarn.
The total cost of the project is envisaged at INR63.77 crore to be
funded through a debt and equity in proportion of 2.19:1 respectively.
Financial closure for the project is yet to be achieved and commercial
production is expected to commence
from July 2016. Furthermore, the company is under process of getting
all the necessary approvals post which it will start
implementing the project.
As on September 14, 2015, TSPL has incurred the total cost of INR1.63
crore towards capex and the same has been met from promoter's equity.
TRANSSTROY BHOPAL: CARE Lowers Rating on INR500MM LT Loan to D
--------------------------------------------------------------
CARE revises the ratings assigned to the bank facilities of
Transstroy Bhopal Biaora Tollways Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 500 CARE D Revised from
CARE BB+
Rating Rationale
The revision in the rating assigned to the bank facilities of
Transstroy Bhopal Biaora Tollways Private Limited (TBBT) takes
into account the ongoing delays in servicing of debt obligations.
TBBT is a special purpose vehicle (SPV) incorporated by Transstroy
India Limited and OJSC Corporation Transstroy, Russia (OJSC) for the
execution of the project awarded by Madhya Pradesh Road Development
Corporation Limited (MPRDC) involving four-laning from Km316/10 to Km
423.40 (approximately 105.60 km) on the Bhopal-Biaora section of
National Highway 12 (NH 12) in Madhya Pradesh on
Design-Build-Finance-Operate-Transfer (DBFOT) Toll basis.
The project work involves augmenting the existing road to four lanes.
The project mainly comprises one railway overbridge (ROB), one major
bridge, 11 minor bridges (10 - widening and 1 - reconstruction) and
realignment of 14.94 km. The initial total project cost was estimated
at INR711.59 crore, which was proposed to be funded at a debt-equity
ratio of 2.36x. The project funding requirement is being met through a
combination of the promoters' contribution (Rs. 211.59 crore) and term
loans (Rs.500 crore). Financial closure for the project has been
achieved.
The scheduled Commercial Operation Date (SCOD) for the project is the
730th day from the appointed date. The appointed date for the project
was declared as May 20, 2013.
As per the L.I.E report up to November 24, 2014, the project has
achieved physical progress of 39.78% up to November 24,
2014 (11.36% upto November 30, 2013) as against planned progress of
77.94% (18.06% planned up to November 30, 2013) as per revised
implementation schedule based on appointed date. Furthermore, the
project achieved financial progress of 65.50% up to November 24, 2014
as against planned progress of 77.60% up to November 24, 2014 as per
revised implementation schedule based on appointment date.
TRANSSTROY BHOPAL BYPASS: CARE Cuts INR207.25cr Loan Rating to D
----------------------------------------------------------------
CARE revises ratings assigned to bank facilities of Transstroy Bhopal
Bypass Tollways Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 207.25 CARE D Revised from
CARE BB+
Rating Rationale
The revision in the rating assigned to the bank facilities of
Transstroy Bhopal Bypass Tollways Private Limited (TBBL) takes
into account ongoing delays in servicing of debt obligation on account
of its stretched liquidity position.
Transstroy India Limited (TIL) and OJSC Corporation Transstroy, Russia
(OJSC) incorporated a special purpose vehicle (SPV), ie, TBBL for the
execution of toll-based project, awarded by Madhya Pradesh Road
Development Corporation Limited (MPRDC) involving four-laning of
Bhopal by-pass road [from km 300/6 of NH-12 (Near Misrod) to km 18/6
of SH-18 (Indore Road), crossing NH-86 (Raisen Road) in km 13/6, SH-18
(Vidisha Road) in km 9/4, SH-23 (Berasia Road) in km 9/4 and NH-12
(Narsingarh Road) in km 324/4] on Built-Operate-Transfer (BOT) basis.
The total project cost was estimated at INR304.89 crore, which was
funded at a debt-equity ratio of 2.34x. Furthermore, the SPV is liable
to pay an annual concession premium of INR21 crore to MPRDC with an
increase of 5% every year till the end of the concession period. The
first premium payable has been included in the project cost.
The project achieved PCOD on May 26, 2013, and commenced tolling
operations of Toll Plaza 2 from May 26, 2013.
However, commencement of tolling operations was delayed with respect
to Toll Plaza 1 and the same commenced from December 26, 2013. Delay
in commencement was on account of delay in completion of a Railway
over bridge (ROB) due to the delay in receipt of approvals, which
falls on a major railway line: Bhopal- New Delhi Line. Furthermore,
the revenue for 10FY15 was low on account of uneven rainfall and wheat
output resulting in lower traffic of heavy vehicles.
During FY14 (refers to the period April 01 to March 31), the company
generated total tolling income of INR24.78 crore and a net loss of
INR16.13 crore. Also, during 10MFY15, the company generated a total
tolling income of INR28.64 crore.
TRANSSTROY DINDIGUL: CARE Cuts Rating on INR198cr Loan to 'D'
-------------------------------------------------------------
CARE revises the ratings assigned to the bank facilities of
Transstroy Dindigul Theni Kumili Tollways Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 198 CARE D Revised from
CARE BB+
Rating Rationale
The revision in the rating assigned to the bank facilities of
Transstroy Dindigul Theni Kumili Tollways Private Limited
(TDTKL) is on account of ongoing delays in servicing of debt
obligation on account of its stretched liquidity position.
TDTKL is a special purpose vehicle (SPV) incorporated by Transstroy
India Limited and OJSC Corporation Transstroy, Russia
(OJSC) for the execution of the project awarded by National Highways
Authority India Limited (NHAI) involving two-laning
of Dindigul-Theni section Km 2.750 to Km 73.400 of NH-45 (Extn) and
Theni-Kumili Section from km 215.500 to km 273.600 of NH-220 in the
state of Tamil Nadu on Design-Build-Finance-Operate-Transfer (DBFOT)
annuity basis. The Concession Agreement (CA) was signed on July 12,
2010, for a concession period of 20 years from September 2011. The
construction period is 730 days (2 years) from the appointment date
(September 1, 2011), while the first annuity is expected 6 months from
PCC. The CA stipulates a sum of INR20.50 crore as annuity to be paid
semi-annually by NHAI. The total project cost has been estimated at
INR331.18 crore, which is proposed to be funded at a debt-equity ratio
of 1.49x.
The project funding requirement is being met through a combination of
promoters' contribution (Rs.133.18 crore) and term loans (Rs.198
crore). Financial closure for the project has been achieved.
As per the Lender Engineer's (LIE) Report for October 2014, the
project has come to a standstill since February 2014. The
cumulative progress is the same as up to the end of February 2014. The
cumulative percentage physical progress achieved up to February 28,
2014, is found to be 71.31% as against planned progress of 100%
considering scheduled project completion date (SPCD) as August 31,
2013. Delay in handing over of RoW by NHAI and lack of funds has
resulted in delay in project progress.
As per the CA, the SPCD was August 31, 2013. Based on the request made
by the concessionaire, the independent Engineer appointed by NHAI, ICT
Pvt. Ltd., had recommended to NHAI seeking the extension of the
milestone (due to the delay by the authority in land acquisition of
the bypass) such that the scheduled completion date of the project
will change to February 28, 2015. However, as the date has lapsed,
TDTKL has requested for further extension in SPCD to February 28, 2016
and the same is under consideration by an Independent Engineer.
TRANSSTROY TRICHY: CARE Cuts Rating on INR180.43cr LT Loan to D
---------------------------------------------------------------
CARE revises the ratings assigned to the bank facilities of
Transstroy Trichy Karaikudi Tollways Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 180.43 CARE D Revised from
CARE BB+
Rating Rationale
The revision in the rating assigned to the bank facilities of
Transstroy Trichy Karaikudi Tollways Private Limited (TTKPL) is
on account of ongoing delays in servicing of debt obligation owing to
its stretched liquidity position.
TTKPL is a special purpose vehicle (SPV), incorporated on July 10,
2010, by a consortium of Transstroy India Limited (TIL) and Transstroy
Corporation OJSC, Russia (OJSC). The project involves development and
strengthening of Trichy - Karaikudi section of NH-210 including Trichy
by-pass road in the state of Tamil Nadu under NHDP Phase - III in the
state of Tamil Nadu on Design, Build, Finance, Operate and Transfer
(DBFOT) Annuity Basis. The Concession Agreement (CA) was signed on
July 12, 2010. The construction period is for 730 days (2 years) from
the appointment date (May 15, 2011). The project cost was estimated at
INR309.20 crore, to be funded at a debt-equity ratio of 1.53x. The
project funding was met through a combination of promoters'
contribution (INR122.20 crore) and term loans (INR187.00 crore).
The company received Provisional Completion Certificate (PCC) in
February 2014, declaring the project fit for entry into commercial
operations on February 17, 2014. During FY15 (refers to the period
April 01 to March 31), TTKPL has received total annuity of INR31.45
crore as against expected annuity amount of INR42.69 crore from NHAI,
ie, two semiannual annuities of INR21.34 crore each.
UNITED MACHINERY: CARE Assigns B+ Rating to INR3cr LT Loan
----------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank facilities of
United Machinery & Appliances.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facility 3 CARE B+ Assigned
Short-term Bank Facility 2 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities United Machinery &
Appliances (UMA) are primarily constrained by its small scale of
operation, working capital intensive nature of business, volatility in
raw material and finished goods prices & highly competitive &
fragmented nature of the industry. The ratings also factors in its
partnership form of constitution with inherent risk of withdrawal of
capital in the time of contingency and risk of dissolution on account
of poor succession planning.
The aforesaid constraints are partially offset by long track record
and vast experience of the partners in manufacturing DG
sets, satisfactory client profile and its association with leading
brand of engines "Perkins & Greaves".
Ability of UMA to grow its scale of operations with improvement in
profitability margins and manage working capital
effectively would be the key rating sensitivities.
United Machinery & Appliances (UMA) was set up as a partnership firm
in 1958 by Bose family of Kolkata, West Bengal with the objective of
starting a business in manufacturing of Diesel Generator (DG) Set. The
firm started with the dealership of DG sets in Kolkata to cater to the
customer in the electrical power segment. With time, UMA had expanded
it's business and started its own factory for manufacturing of DG
sets. The firm is currently engaged in manufacturing of diesel
generating set and also some spare parts related to DG sets. UMA
Product portfolio includes diesel generating set, industrial engine &
spares, casting enclosures for DG sets, trailer, controller, spares,
sound grip, etc. This apart the firm also carried out some electrical
project of erection, installation and commissioning of DG sets. The
manufacturing facility of the firm is located in Village Sanjua,
Bakrahat, West Bengal and is equipped with installed capacity of 600
DG sets per annum. The facility is ISO: 9001:2000 & 14001:2004
certified from Bureau Veritas.
The firm exports about 7-8% of its manufactured product to overseas
market in Bangladesh. The firm has an unexecuted
order book of INR16.81 crore as on August 31, 2015 to be executed over
the next seven months.
During FY15 (Provisional) (refers to the period April 1 to
March 31), UMA reported a total operating income of INR17.56
crore (as against INR20.93 crore in FY14) and a profit of INR0.07
crore (as against INR0.06 crore in FY14). The management
has maintained that they have achieved a turnover of INR8 crore in 5MFY16.
WATER WEALTH: CRISIL Assigns B Rating to INR40MM Cash Credit
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Water Wealth Infratech India Pvt Ltd (WWIPL; part
of the Sachdeva group).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 5 CRISIL A4
Cash Credit 40 CRISIL B/Stable
The ratings reflect the Sachdeva group's small scale of operations in
an intensely competitive industry, and large working capital
requirement leading to high gearing. These rating weaknesses are
partially offset by the extensive experience of promoters in
manufacturing iron fittings and valves.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of RG Industries (RGI), Sachdeva Metal Works
(SMW), and WWIPL. This is because these entities, together referred to
as the Sachdeva group, have operational linkages, and a common
management and marketing network.
Outlook: Stable
CRISIL believes the Sachdeva group will benefit from the promoters'
extensive experience in manufacturing pipelines and valves, and their
established relationships with customers and suppliers. The outlook
may be revised to 'Positive' in case of a substantial increase in the
scale of operations, while maintaining profitability and capital
structure. Conversely, the outlook may be revised to 'Negative' if
profitability declines or the capital structure weakens because of any
large, debt-funded capital expenditure or the liquidity deteriorates
due to any stretch in the working capital cycle.
The Sachdeva Group is owned and managed by Mr. Arvinder Pal Singh, his
brothers Mr. Daljit Singh and Mr. Varpreet Singh. The group is based
in Jalandhar (Punjab).
WWIPL undertakes turnkey projects for laying of pipes, for municipalities.
SMW manufactures valves under the Sachdeva brand.
RGI, set up in 1999, manufactures high-quality ductile iron (of sizes
80 millimetres [mm] to 1000 mm) and cast iron (80 mm to 600 mm)
fittings under the RG brand.
Both SMW and RGI have manufacturing facilities in Jalandhar, and cater
to both government departments, including municipalities, and private
contractors.
=================
I N D O N E S I A
=================
MEDIA NUSANTARA: Moody's Puts Ba3 CFR Under Review for Downgrade
----------------------------------------------------------------
Moody's Investors Service has placed the Ba3 corporate family rating
of P.T. Media Nusantara Citra (MNC) under review for downgrade.
MNC is 65.32% owned by PT Global Mediacom Tbk (unrated), a diversified
media company, and which is 52.84% owned by P.T. MNC Investama Tbk.
(BHIT, B1 review for downgrade).
RATINGS RATIONALE
"The rating action primarily reflects our expectations of slowing
earnings growth against the backdrop of soft advertising spend in
Indonesia. Despite the slower growth, we believe a higher amount of
dividends will be extracted to support its ultimate parent's rising
debt-service costs (in rupiah terms), thus weakening free cash flow
generation to levels below our previous expectations," says Annalisa
Di Chiara, a Moody's Vice President and Senior Analyst.
Moody's expects MNC's dividend payout ratio will increase to above 60%
in 2015 and 2016, from our previous expectation of 50%-60% in order
that sufficient funds flow to BHIT to satisfy the debt-service costs
on both its USD365 million in outstanding bonds and on its own
investment strategy into non-media businesses.
MNC is the largest generator of revenue and EBITDA within BHIT's group
companies. For 12 months ending June 2015, it contributed around 52%
and 88% of BHIT's consolidated revenues and EBITDA.
"Moreover, uncertainty around the funding of MNC's share buyback
program also weighs on the rating," added Di Chiara
The company announced a share buyback program in July for up to a
maximum of 10% of its outstanding issued and paid-up capital at a
potential cost of up to IDR3.2 trillion.
Although the company is not committed to repurchasing the full amount
under the program, Moody's believes that it will act
opportunistically.
Still, based on our cash flow expectations, Moody's also do not rule
out the possibility that additional debt may be taken on to fund such
buybacks.
MNC's ability to generate a stable level of cash flow --- underpinned
by its defendable margins, which have consistently remained above 40%,
as measured by its adjusted EBITDA margin -- continues to support the
rating.
However, given softening in the industry, Moody's expect that MNC's
revenues will decline by 1%-3% in 2015 from 2014, and Moody's do not
expect a significant turnaround in earnings growth over the medium
term.
MNC's liquidity profile is adequate, but Moody's notes MNC is also
exposed to moves in foreign-currency rates, given that it has a USD250
million bank loan outstanding and which matures in September 2017.
The review for downgrade will focus on MNC and the group's discipline
on overall capital management and shareholder returns, especially as
the company manages through an environment of declining earnings.
The principal methodology used in this rating was the Global Broadcast
and Advertising Related Industries published in May 2012.
P.T. Media Nusantara Citra, headquartered in Jakarta, is an integrated
media company. Its operations encompass TV, radio, print media,
content production and distribution, and wireless value-added
services.
In addition, it is the market leader in Indonesia's free to air (FTA)
TV industry, and owns four of the country's 12 FTA TV networks. The
company is 65.32% owned by PT Global Mediacom Tbk (unrated), a
diversified media company, and which is 52.84% owned by P.T. MNC
Investama Tbk. (B1 review for downgrade).
MNC INVESTAMA: Moody's Puts B1 CFR Under Review for Downgrade
-------------------------------------------------------------
Moody's Investors Service has placed under review for downgrade the B1
corporate family rating of P.T. MNC Investama Tbk. (BHIT) and the B2
bond rating of the USD senior secured notes issued by Ottawa Holdings
Pte. Ltd., guaranteed by and a wholly owned subsidiary of BHIT.
RATINGS RATIONALE
"The rating action reflects the deterioration in BHIT's financial
profile, both at the consolidated level and the standalone holding
company level," says Annalisa Di Chiara, a Moody's Vice President and
Senior Analyst.
"Consolidated leverage, as measured by adjusted debt/EBITDA, has risen
beyond our expectations to 3.5x, and will likely remain elevated at
above 3.5x-4.0x into 2016, as the group continues with its aggressive
expansion plans, particularly as related to its financial services
businesses," adds Di Chiara.
Such growth plans -- in particular for the group's non-media-related
activities, such as financial services -- continue to weigh on BHIT's
ratings as they have weaker credit profiles than BHIT's established
media businesses.
"Moreover, expanding these businesses will require additional
investments, including for M&As, thereby presenting additional event
and execution risks," adds Di Chiara.
Non-media businesses contributed around 15% of BHIT's consolidated
revenues for twelve months ending June 2015, and we understand that
management still expects this level to rise further into the 35%
range.
Based on our estimates, coverage of interest from cash dividends at
the holding company level is also likely to remain below our
expectations of 1.5x, given the rise in the holding company's
borrowing costs -- in rupiah terms -- on its USD365 million bonds
which fall due in 2018. These notes constitute the only debt
outstanding at the holding company level.
This coverage of interest will further be weakened by the subdued
state of earnings growth at its core media subsidiaries, which provide
the main source of income for BHIT in the form of cash dividends.
However, Moody's understands BHIT has a fully-funded 6-month debt
service reserve account, which provides liquidity headroom.
As a holding company without any operating assets, BHIT is reliant on
cash dividends up-streamed from its operating subsidiaries to service
its debt.
While these cash dividends are rupiah-denominated, the interest
expenses on its USD 365 million bond are in USD and are therefore
exposed to exchange-rate risk.
At the group level, approximately 80% of consolidated debt is in USD,
representing a significant level of foreign currency risk as none of
the group's companies have natural hedges or other forms of hedging in
place.
P.T. Media Nusantara Citra (MNC, Ba3, review for downgrade) -- 65.32%
owned by PT Global Mediacom Tbk (Global Mediacom, unrated), in turn
52.84% owned by BHIT -- is the main source of dividend income for
BHIT.
While we believe that BHIT, as a controlling shareholder, can likely
seek higher dividend payouts from Global Mediacom and other
subsidiaries, if necessary, we also note increasing earnings pressure
at MNC over the near to medium term, given weakening advertising spend
in Indonesia.
The review for downgrade will focus on BHIT's overall risk appetite,
especially in regard to its plans for expansion into riskier non-media
businesses and management's commitment to managing the group's overall
leverage profile.
The review will also assess management's financial policy with regard
to the group's funding strategy, including refinancing plans for
maturing loans and shareholder return initiatives at its operating
subsidiaries.
The principal methodology used in this rating was Business and
Consumer Service Industry published in December 2014.
Headquartered in Jakarta, P.T. MNC Investama Tbk. (BHIT) is a listed
investment holding company with strategic investments in operating
companies in media, financial services, and energy and real estate.
In addition to MNC and P.T. MNC Sky Vision (B1, review for downgrade),
BHIT's other principal operating companies include P.T. MNC Kapital
Indonesia Tbk (unrated), P.T. MNC Land (unrated), and P.T. MNC Energi
(unrated).
The company also has portfolio investments in other private and public
companies operating in transport, infrastructure and other industries.
BHIT is controlled by Mr. Hary Tanoesoedibjo.
MNC SKY: Moody's Puts B1 CFR Under Review for Downgrade
-------------------------------------------------------
Moody's Investors Service has placed the B1 corporate family rating of
P.T. MNC Sky Vision (MNC Sky) under review for downgrade.
The company is 69.46% owned by PT Global Mediacom Tbk (unrated), a
diversified media company, and which is in turn 52.84% owned by P.T.
MNC Investama Tbk. (BHIT, B1 review for downgrade).
BHIT directly owns an additional 9.6% share in MNC Sky.
Global Mediacom and MNC Investama are publicly listed in Indonesia.
RATINGS RATIONALE
"The rating action primarily reflects the increasing level of
refinancing risk associated with MNC Sky's USD243 million bank loan
which matures in November 2016 and the rise in leverage due to its
significant foreign-currency exposure against backdrop of the rupiah's
weakness against the USD and its weakening operating performance,"
says Annalisa Di Chiara, a Moody's Vice President and Senior Analyst.
Because all of MNC Sky's debt is denominated in USD, its interest
costs and leverage have both risen as a result of the rupiah's
depreciation.
Its EBITDA margin has also deteriorated, given that all of its
revenues are in rupiah, while a significant portion of its programming
costs are in USD.
Moody's expects its adjusted EBITDA margin to decline to 35% or below
for all of 2015, if the rupiah remains weak or weakens further.
Moody's also notes limited covenant headroom under the leverage ratio
for the company's USD bank loan.
"In addition, MNC Sky's fundamental operating performance has weakened
due to softness in Indonesia's economic growth, coupled with
intensifying competition in the pay-TV market, as evidenced by the
company's slowing revenue growth and deteriorating EBITDA margin,"
adds Di Chiara.
MNC Sky's subscriber numbers declined for the first time to 2.498
million at end-June from 2.529 million at end-2014, while its average
rate per user (ARPU) also continued to fall.
Moody's expects rising competition and piracy issues in the Indonesian
pay-TV market to continue to temper MNC Sky's subscriber and ARPU
growth over the near to medium term.
Moreover, its market position -- before the largest in Indonesia with
a 75% share, based on subscribers -- although strong will face some
headwinds as competition remains intense over the medium to long term.
As a result of all these factors and because the company needs to
continue to borrow to fund its operations, Moody's forecasts leverage
-- as measured by adjusted debt/EBITDA -- to rise above 3x over the
next six months.
At the same time, EBITDA growth will remain muted, given rising
programing costs as well as the increasing level of competition.
In June, the company announced a share buyback program of up to 5% of
its paid-up capital or a maximum of IDR636 billion. Given Moody's
expectations for negative free cash flow, it expects leverage will
increase further to above 4x if the company proceeds with share
buybacks, which will have to be funded by debt.
The review for downgrade will focus on the company's refinancing plans
for its USD243 million bank loan, its ability to remain compliant with
its bank covenants, and its plans to fund ongoing operations.
The review will also assess the management's financial policy with
regard to its shareholder return initiatives.
The principal methodology used in this rating was Global Pay
Television - Cable and Direct-to-Home Satellite Operators published in
April 2013.
Headquartered in Jakarta, P.T. MNC Sky Vision is a provider of
direct-to-home pay-TV services. The company is 69.46% owned by PT
Global Mediacom Tbk (unrated), a diversified media company, and which
is in turn 52.84% owned by P.T. MNC Investama Tbk. (B1 review for
downgrade). Global Mediacom and MNC Investama are publicly listed in
Indonesia.
=====================
P H I L I P P I N E S
=====================
LBC EXPRESS: BIR Closes 33 Branches of LBC Unit Over Unpaid Taxes
-----------------------------------------------------------------
Ben O. de Vera at Philippine Daily Inquirer reports that a total of 33
branches being operated by a subsidiary of popular cargo and courier
services provider LBC Express Inc. were padlocked by the Bureau of
Internal Revenue (BIR) on September 27 due to unpaid taxes during the
last three years amounting
PHP145.7 million.
In an e-mail to the Inquirer on September 26, the country's biggest
tax-collection agency disclosed that it shuttered LBC Express-SMM
Inc., or formerly known as Bag Acceptance Corp., whose main office is
located along Alabang-Zapote Road in Muntinlupa City.
This LBC subsidiary's branches in southern Metro Manila were also
closed down, including eight in Las Pinas City, eight in Taguig City,
six in Muntinlupa City, six in Paranaque City, four in Pasay City, and
one in Makati City, the Inquirer relates.
According to the report, the BIR said LBC Express-SMM "modified
point-of-sales (POS) machines without prior notification," hence
violated provisions of the Tax Code or the National Internal Revenue
Code of 1997, as amended.
The Inquirer relates that post-evaluation and verification of the
company's 75 POS units showed that it altered, integrated or modified
the machines even without approval of the BIR's respective revenue
district offices overseeing the branches' locations.
Also, the BIR discovered that LBC Express-SMM underdeclared its
taxable sales by PHP105 million in 2013, PHP27.5 million in 2014, and
PHP13.2 million in January 2015, the report adds.
The Inquirer says the BIR urged the firm to pay its tax liabilities
and file value-added tax (VAT) returns with correct taxable receipts.
However, LBC Express-SMM did not comply with the 48-hour as well as
five-day VAT compliance notices from the BIR, hence its branches were
shut down through the closure orders issued by Deputy Commissioner
Nelson M. Aspe, according to the Inquirer.
"Section 115 of the Tax Code, as implemented through Revenue
Memorandum Order No. 03-2009, authorizes the BIR to suspend or close
the business operations of a taxpayer for a period of not less than
five days for failure to: register; issue VAT official receipts or
sales invoices; file correct VAT returns; or pay the correct VAT," the
BIR, as cited by the Inquirer, noted.
The agency padlocks tax-deficient establishments under its "Oplan
Kandado" program, the report adds.
LBC EXPRESS: Shuttered Unit's VAT Already Paid, Exec Says
---------------------------------------------------------
Ben O. de Vera at Philippine Daily Inquirer reports that LBC Express
Inc. on September 27 claimed that its subsidiary covering southern
Metro Manila had already paid its due value-added taxes or VAT, hence
the closure of its 33 branches by the Bureau of Internal Revenue (BIR)
last week was a "surprise."
In a statement to the Inquirer, LBC Express president and chief
operating officer Miguel Angel A. Camahort said it was "an isolated
incident, in the areas covered by LBC SMM (South Metro Manila)."
"LBC SMM received a five-day VAT compliance notice from the BIR dated
Aug. 5, 2015. The VAT compliance notice was replied to on Aug. 27,
2015, properly addressing and clarifying the matter, with attached
documentary proof that LBC Express had, in fact, duly and properly
made all VAT payments," the Inquirer quotes Mr. Camahort as saying.
According to the report, Mr. Camahort said "ever since said reply was
filed, LBC SMM did not receive any further notices or communication
from the BIR on the matter."
"Thus, the BIR's Sept. 24, 2015 precipitate closure orders affecting
LBC SMM's branches right before a long weekend came as a complete
surprise, especially since the subject VAT payments were in fact
properly made and proven," the report quotes Mr. Camahort as saying.
"Rest assured, however, that the LBC Group is rectifying the situation
and remains open to serve our customers through the rest of its
nationwide network," the executive added, the Inquirer reports.
===============
T H A I L A N D
===============
KRUNG THAI: Loan Restructuring is Credit Negative, Moody's Says
---------------------------------------------------------------
Moody's Investors Service says that a proposed loan restructuring
exercise by Krung Thai Bank Public Company Limited (KTB, Baa1 stable,
ba1) and Siam Commercial Bank Public Company Limited (SCB, Baa1
stable, baa2) relating to Sahaviriya Steel Industries Public Company
Limited (SSI, unrated) is credit negative for both banks.
The proposed restructuring -- which involves three creditors and
amounts to THB50 billion in debt -- relates to a decision by SSI to
halt production at the former Corus steelworks in Teesside, UK.
KTB and SCB together account for THB45 billion in loans to be restructured.
"Additional provisions on SSI exposures will hurt the banks'
profitability and ability to generate capital internally this year,"
says Simon Chen, a Moody's Vice President and Senior Analyst.
KTB said it will make additional specific provisions of about THB9
billion in 3Q 2015 for its SSI exposures, and will also increase
general provisions to replenish its reserve coverage ratio back to
100%. It has estimated an effect of around THB6 billion on net profit
for 3Q 2015.
SCB said that it will make specific provisions on THB10 billion-THB11
billion on its THB22 billion in SSI exposures, while also booking a
gain of THB7 billion-THB8 billion on equities and investments in order
to mitigate the effect on net profit in 3Q 2015.
"We estimate that the capital ratios of KTB and SCB, which would
likely have risen this year with retained earnings despite the slow
Thai economy and increasing asset risks, will instead remain roughly
flat because of their additional provisions for SSI exposures," says
Chen.
At end-June 2015, KTB and SCB had common equity Tier 1 ratios of 10.6%
and 13.8%, respectively.
Moody's notes that this is one of the first instances of significant
asset-quality deterioration in Thailand's large corporate segment in
the last few years.
Although delinquencies of unsecured retail loans and loans to small
and medium-sized enterprises have been rising, the performance of
loans to large Thai corporates have so far remained resilient to the
country's slowing economy.
And while the circumstances of SSI's restructuring may be unique to
the UK steelmaking industry and not necessarily indicative of broader
problems with large corporate borrowers in Thailand, in this context
we note that special-mention loans -- which can be a leading indicator
of nonperforming loan formation -- have been rising in the corporate
sector.
According to Moody's, any deterioration in the performance of loans to
large corporates will mean increased credit costs for Thai banks
because the size of these loans is often large, meaning that a small
number of problem loans can generate significant increases in banks'
overall credit costs.
===============
X X X X X X X X
===============
* BOND PRICING: For the Week Sept. 21 to Sept. 25, 2015
-------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA
---------
AUSDRILL FINANCE PTY 6.88 11/1/2019 USD 69.50
AUSDRILL FINANCE PTY 6.88 11/1/2019 USD 72.50
BARMINCO FINANCE PTY 9.00 6/1/2018 USD 73.00
BOART LONGYEAR MANAG 7.00 4/1/2021 USD 67.25
BOART LONGYEAR MANAG 7.00 4/1/2021 USD 67.25
CML GROUP LTD 9.00 1/29/2020 AUD 0.95
CRATER GOLD MINING L 10.00 8/18/2017 AUD 30.00
EMECO PTY LTD 9.88 3/15/2019 USD 55.00
EMECO PTY LTD 9.88 3/15/2019 USD 72.50
FMG RESOURCES AUGUST 6.88 4/1/2022 USD 64.52
FMG RESOURCES AUGUST 6.88 4/1/2022 USD 65.37
IMF BENTHAM LTD 6.35 6/30/2019 AUD 70.25
KBL MINING LTD 12.00 2/16/2017 AUD 0.32
KEYBRIDGE CAPITAL LT 7.00 7/31/2020 AUD 0.67
LAKES OIL NL 10.00 3/31/2017 AUD 5.00
MIDWEST VANADIUM PTY 11.50 2/15/2018 USD 5.03
MIDWEST VANADIUM PTY 11.50 2/15/2018 USD 4.27
STOKES LTD 10.00 6/30/2017 AUD 0.40
TREASURY CORP OF VIC 0.50 11/12/2030 AUD 64.86
CHINA
-----
CHANGCHUN CITY DEVEL 6.08 3/9/2016 CNY 40.41
CHANGZHOU INVESTMENT 5.80 7/1/2016 CNY 40.67
CHANGZHOU WUJIN CITY 5.42 6/9/2016 CNY 50.31
CHINA GOVERNMENT BON 1.64 12/15/2033 CNY 74.16
DANDONG CITY DEVELOP 6.21 9/6/2017 CNY 71.66
DATONG ECONOMIC CONS 6.50 6/1/2017 CNY 71.10
ERDOS DONGSHENG CITY 8.40 2/28/2018 CNY 68.80
GRANDBLUE ENVIRONMEN 6.40 7/7/2016 CNY 71.24
HANGZHOU XIAOSHAN ST 6.90 11/22/2016 CNY 70.20
HANGZHOU XIAOSHAN ST 6.90 11/22/2016 CNY 71.20
HEILONGJIANG HECHENG 7.78 11/17/2016 CNY 72.89
HUAIAN CITY URBAN AS 7.15 12/21/2016 CNY 70.58
HUAIAN QINGHE NEW AR 6.79 4/29/2017 CNY 71.80
KUNMING CITY CONSTRU 7.60 4/13/2018 CNY 76.50
KUNSHAN ENTREPRENEUR 4.70 3/30/2016 CNY 40.21
NANJING NANGANG IRON 6.13 2/27/2016 CNY 50.10
NANTONG STATE-OWNED 6.72 11/13/2016 CNY 71.20
NINGBO CITY ZHENHAI 6.48 4/12/2017 CNY 71.68
OCEAN RIG UDW INC 7.25 4/1/2019 USD 55.59
OCEAN RIG UDW INC 7.25 4/1/2019 USD 55.75
PANJIN CONSTRUCTION 7.70 12/16/2016 CNY 71.81
QINGZHOU HONGYUAN PU 6.50 5/22/2019 CNY 40.51
SHENGZHOU HOTEL CO L 9.20 2/26/2016 CNY 100.00
TAIZHOU CITY CONSTRU 6.90 1/25/2017 CNY 70.56
WUXI COMMUNICATIONS 5.58 7/8/2016 CNY 50.94
XIANGTAN JIUHUA ECON 6.93 12/16/2016 CNY 71.80
YANGZHOU ECONOMIC DE 6.10 7/7/2016 CNY 50.90
YANGZHOU URBAN CONST 5.94 7/23/2016 CNY 40.81
YIJINHUOLUOQI HONGTA 8.35 3/19/2019 CNY 74.23
YUNNAN INVESTMENT GR 5.25 8/24/2017 CNY 73.50
INDONESIA
---------
BERAU COAL ENERGY TB 7.25 3/13/2017 USD 36.50
BERAU COAL ENERGY TB 7.25 3/13/2017 USD 37.09
GAJAH TUNGGAL TBK PT 7.75 2/6/2018 USD 44.98
GAJAH TUNGGAL TBK PT 7.75 2/6/2018 USD 75.63
INDONESIA TREASURY B 6.63 5/15/2033 IDR 73.30
INDONESIA TREASURY B 6.13 5/15/2028 IDR 74.54
INDONESIA TREASURY B 6.38 4/15/2042 IDR 67.06
INDIA
-----
3I INFOTECH LTD 5.00 4/26/2017 USD 11.38
BLUE DART EXPRESS LT 9.30 11/20/2017 INR 10.12
BLUE DART EXPRESS LT 9.50 11/20/2019 INR 10.20
BLUE DART EXPRESS LT 9.40 11/20/2018 INR 10.16
COROMANDEL INTERNATI 9.00 7/23/2016 INR 15.30
GTL INFRASTRUCTURE L 3.53 11/9/2017 USD 24.88
INCLINE REALTY PVT L 10.85 8/21/2017 INR 9.62
INCLINE REALTY PVT L 10.85 4/21/2017 INR 6.29
INDIA GOVERNMENT BON 0.33 1/25/2035 INR 30.85
JAIPRAKASH ASSOCIATE 5.75 9/8/2017 USD 71.35
JCT LTD 2.50 4/8/2011 USD 21.50
PRAKASH INDUSTRIES L 5.25 4/30/2015 USD 46.25
PYRAMID SAIMIRA THEA 1.75 7/4/2012 USD 1.00
REI AGRO LTD 5.50 11/13/2014 USD 6.25
REI AGRO LTD 5.50 11/13/2014 USD 6.25
SHIV-VANI OIL & GAS 5.00 8/17/2015 USD 22.88
JAPAN
-----
AVANSTRATE INC 3.02 11/5/2015 JPY 41.13
AVANSTRATE INC 5.00 11/5/2017 JPY 30.50
ELPIDA MEMORY INC 0.70 8/1/2016 JPY 10.25
ELPIDA MEMORY INC 0.50 10/26/2015 JPY 10.25
ELPIDA MEMORY INC 2.03 3/22/2012 JPY 10.25
ELPIDA MEMORY INC 2.10 11/29/2012 JPY 10.25
ELPIDA MEMORY INC 2.29 12/7/2012 JPY 10.25
KOREA
-----
2014 KODIT CREATIVE 5.00 12/25/2017 KRW 29.65
2014 KODIT CREATIVE 5.00 12/25/2017 KRW 29.65
DONGBU STEEL CO LTD 5.00 3/9/2018 KRW 62.52
DOOSAN CAPITAL SECUR 20.00 4/22/2019 KRW 37.85
EXPORT-IMPORT BANK O 0.50 12/22/2017 BRL 73.46
EXPORT-IMPORT BANK O 0.50 11/21/2017 BRL 74.68
EXPORT-IMPORT BANK O 0.50 12/22/2017 TRY 75.51
HYUNDAI HEAVY INDUST 4.90 12/15/2044 KRW 51.47
HYUNDAI HEAVY INDUST 4.80 12/15/2044 KRW 52.39
HYUNDAI MERCHANT MAR 7.05 12/27/2042 KRW 35.02
KIBO ABS SPECIALTY C 10.00 8/22/2017 KRW 26.09
KIBO ABS SPECIALTY C 5.00 3/29/2018 KRW 28.63
KIBO ABS SPECIALTY C 10.00 2/19/2017 KRW 35.55
KIBO ABS SPECIALTY C 5.00 1/31/2017 KRW 31.43
KIBO ABS SPECIALTY C 10.00 9/4/2016 KRW 37.94
KIBO GREEN HI-TECH S 10.00 12/21/2015 KRW 53.51
LSMTRON DONGBANGSEON 4.53 11/22/2017 KRW 29.29
POSCO ENERGY CORP 4.66 8/29/2043 KRW 64.98
POSCO ENERGY CORP 4.72 8/29/2043 KRW 64.37
POSCO ENERGY CORP 4.72 8/29/2043 KRW 64.39
SINBO SECURITIZATION 5.00 12/23/2017 KRW 28.47
SINBO SECURITIZATION 5.00 12/23/2018 KRW 26.36
SINBO SECURITIZATION 5.00 12/23/2018 KRW 26.36
SINBO SECURITIZATION 5.00 8/16/2017 KRW 30.69
SINBO SECURITIZATION 5.00 2/2/2016 KRW 41.07
SINBO SECURITIZATION 8.00 2/2/2016 KRW 45.01
SINBO SECURITIZATION 5.00 1/19/2016 KRW 42.46
SINBO SECURITIZATION 10.00 12/27/2015 KRW 52.31
SINBO SECURITIZATION 5.00 12/7/2015 KRW 49.76
SINBO SECURITIZATION 5.00 7/26/2016 KRW 34.30
SINBO SECURITIZATION 5.00 7/26/2016 KRW 34.30
SINBO SECURITIZATION 5.00 2/11/2018 KRW 28.99
SINBO SECURITIZATION 5.00 2/11/2018 KRW 28.99
SINBO SECURITIZATION 5.00 9/26/2018 KRW 27.25
SINBO SECURITIZATION 5.00 9/26/2018 KRW 27.25
SINBO SECURITIZATION 5.00 9/26/2018 KRW 27.25
SINBO SECURITIZATION 5.00 12/13/2016 KRW 32.79
SINBO SECURITIZATION 5.00 7/8/2017 KRW 31.09
SINBO SECURITIZATION 5.00 7/8/2017 KRW 31.09
SINBO SECURITIZATION 5.00 10/5/2016 KRW 33.56
SINBO SECURITIZATION 5.00 10/5/2016 KRW 31.96
SINBO SECURITIZATION 5.00 6/27/2018 KRW 28.11
SINBO SECURITIZATION 5.00 6/27/2018 KRW 28.11
SINBO SECURITIZATION 5.00 8/16/2016 KRW 33.03
SINBO SECURITIZATION 5.00 8/16/2017 KRW 30.69
SINBO SECURITIZATION 5.00 3/12/2018 KRW 28.77
SINBO SECURITIZATION 5.00 3/12/2018 KRW 28.77
SINBO SECURITIZATION 5.00 3/14/2016 KRW 36.81
SINBO SECURITIZATION 5.00 6/29/2016 KRW 34.61
SINBO SECURITIZATION 5.00 5/27/2016 KRW 34.97
SINBO SECURITIZATION 5.00 5/27/2016 KRW 34.97
SINBO SECURITIZATION 5.00 7/24/2017 KRW 30.00
SINBO SECURITIZATION 5.00 7/24/2018 KRW 27.91
SINBO SECURITIZATION 5.00 7/24/2018 KRW 27.91
SINBO SECURITIZATION 5.00 10/1/2017 KRW 30.14
SINBO SECURITIZATION 5.00 10/1/2017 KRW 30.14
SINBO SECURITIZATION 5.00 10/1/2017 KRW 30.14
SINBO SECURITIZATION 5.00 8/29/2018 KRW 27.45
SINBO SECURITIZATION 5.00 8/29/2018 KRW 27.45
SINBO SECURITIZATION 5.00 6/7/2017 KRW 22.96
SINBO SECURITIZATION 5.00 6/7/2017 KRW 22.96
SINBO SECURITIZATION 5.00 1/15/2018 KRW 29.46
SINBO SECURITIZATION 5.00 1/15/2018 KRW 29.46
SINBO SECURITIZATION 5.00 12/25/2016 KRW 31.87
SINBO SECURITIZATION 5.00 3/13/2017 KRW 31.80
SINBO SECURITIZATION 5.00 3/13/2017 KRW 31.80
SINBO SECURITIZATION 5.00 2/21/2017 KRW 32.03
SINBO SECURITIZATION 5.00 2/21/2017 KRW 32.03
SINBO SECURITIZATION 5.00 1/29/2017 KRW 32.28
SINBO SECURITIZATION 5.00 8/31/2016 KRW 33.91
SINBO SECURITIZATION 5.00 8/31/2016 KRW 33.91
SK TELECOM CO LTD 4.21 6/7/2073 KRW 62.44
TONGYANG CEMENT & EN 7.50 4/20/2014 KRW 70.00
TONGYANG CEMENT & EN 7.50 9/10/2014 KRW 70.00
TONGYANG CEMENT & EN 7.30 4/12/2015 KRW 70.00
TONGYANG CEMENT & EN 7.50 7/20/2014 KRW 70.00
TONGYANG CEMENT & EN 7.30 6/26/2015 KRW 70.00
U-BEST SECURITIZATIO 5.50 11/16/2017 KRW 30.38
WISE MOBILE SECURITI 20.00 7/17/2018 KRW 73.11
SRI LANKA
---------
SRI LANKA GOVERNMENT 5.35 3/1/2026 LKR 67.83
MALAYSIA
--------
1MDB GLOBAL INVESTME 4.40 3/9/2023 USD 72.37
BANDAR MALAYSIA SDN 0.35 12/29/2023 MYR 70.42
BANDAR MALAYSIA SDN 0.35 2/20/2024 MYR 69.92
BIMB HOLDINGS BHD 1.50 12/12/2023 MYR 70.05
BRIGHT FOCUS BHD 2.50 1/22/2031 MYR 66.02
BRIGHT FOCUS BHD 2.50 1/24/2030 MYR 68.84
LAND & GENERAL BHD 1.00 9/24/2018 MYR 0.26
SENAI-DESARU EXPRESS 0.50 12/31/2047 MYR 74.72
SENAI-DESARU EXPRESS 0.50 12/31/2046 MYR 73.85
SENAI-DESARU EXPRESS 0.50 12/31/2038 MYR 64.59
SENAI-DESARU EXPRESS 0.50 12/31/2041 MYR 68.65
SENAI-DESARU EXPRESS 0.50 12/31/2043 MYR 71.05
SENAI-DESARU EXPRESS 0.50 12/29/2045 MYR 72.81
SENAI-DESARU EXPRESS 0.50 12/30/2039 MYR 66.29
SENAI-DESARU EXPRESS 0.50 12/31/2042 MYR 69.94
SENAI-DESARU EXPRESS 0.50 12/31/2040 MYR 67.51
SENAI-DESARU EXPRESS 0.50 12/30/2044 MYR 71.95
SENAI-DESARU EXPRESS 1.35 12/29/2028 MYR 56.37
SENAI-DESARU EXPRESS 1.35 6/30/2028 MYR 57.57
SENAI-DESARU EXPRESS 1.10 6/30/2022 MYR 73.15
SENAI-DESARU EXPRESS 1.15 6/30/2025 MYR 63.79
SENAI-DESARU EXPRESS 1.35 12/31/2026 MYR 61.29
SENAI-DESARU EXPRESS 1.35 12/31/2027 MYR 58.79
SENAI-DESARU EXPRESS 1.35 6/29/2029 MYR 55.22
SENAI-DESARU EXPRESS 1.35 12/31/2029 MYR 54.09
SENAI-DESARU EXPRESS 1.35 6/30/2027 MYR 60.01
SENAI-DESARU EXPRESS 1.35 6/28/2030 MYR 53.03
SENAI-DESARU EXPRESS 1.35 12/31/2030 MYR 51.96
SENAI-DESARU EXPRESS 1.15 6/30/2023 MYR 70.12
SENAI-DESARU EXPRESS 1.15 12/29/2023 MYR 68.51
SENAI-DESARU EXPRESS 1.10 12/31/2021 MYR 74.83
SENAI-DESARU EXPRESS 1.15 6/28/2024 MYR 66.93
SENAI-DESARU EXPRESS 1.35 12/31/2025 MYR 63.86
SENAI-DESARU EXPRESS 1.35 6/30/2026 MYR 62.56
SENAI-DESARU EXPRESS 1.35 6/30/2031 MYR 50.94
SENAI-DESARU EXPRESS 1.15 12/31/2024 MYR 65.33
SENAI-DESARU EXPRESS 1.15 12/30/2022 MYR 71.77
UNIMECH GROUP BHD 5.00 9/18/2018 MYR 1.08
PHILIPPINES
-----------
BAYAN TELECOMMUNICAT 13.50 7/15/2006 USD 22.75
BAYAN TELECOMMUNICAT 13.50 7/15/2006 USD 22.75
SINGAPORE
---------
AXIS OFFSHORE PTE LT 7.59 5/18/2018 USD 58.35
BAKRIE TELECOM PTE L 11.50 5/7/2015 USD 4.00
BAKRIE TELECOM PTE L 11.50 5/7/2015 USD 4.00
BERAU CAPITAL RESOUR 12.50 7/8/2015 USD 37.09
BERAU CAPITAL RESOUR 12.50 7/8/2015 USD 36.88
BLD INVESTMENTS PTE 8.63 3/23/2015 USD 9.50
BUMI CAPITAL PTE LTD 12.00 11/10/2016 USD 19.75
BUMI CAPITAL PTE LTD 12.00 11/10/2016 USD 19.69
BUMI INVESTMENT PTE 10.75 10/6/2017 USD 25.94
BUMI INVESTMENT PTE 10.75 10/6/2017 USD 18.04
ENERCOAL RESOURCES P 6.00 4/7/2018 USD 12.38
GOLIATH OFFSHORE HOL 12.00 6/11/2017 USD 20.04
INDO INFRASTRUCTURE 2.00 7/30/2010 USD 1.88
ORO NEGRO DRILLING P 7.50 1/24/2019 USD 67.00
OSA GOLIATH PTE LTD 12.00 10/9/2018 USD 62.13
OTTAWA HOLDINGS PTE 5.88 5/16/2018 USD 79.00
OTTAWA HOLDINGS PTE 5.88 5/16/2018 USD 44.33
SWIBER HOLDINGS LTD 7.13 4/18/2017 SGD 74.63
THAILAND
--------
G STEEL PCL 3.00 10/4/2015 USD 4.00
MDX PCL 4.75 9/17/2003 USD 37.25
VIETNAM
-------
BANK FOR INVESTMENT 10.33 5/19/2016 VND 1.00
DEBT AND ASSET TRADI 1.00 10/10/2025 USD 56.05
1.00 10/10/2025 USD 55.50
*********
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.
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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,
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Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel Elaine
T. Fernandez, Psyche A. Castillon, Julie Anne L. Toledo, and Peter A.
Chapman, Editors.
Copyright 2015. All rights reserved. ISSN: 1520-9482.
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*** End of Transmission ***