/raid1/www/Hosts/bankrupt/TCRAP_Public/151216.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, December 16, 2015, Vol. 18, No. 248
Headlines
A U S T R A L I A
B.L.D FORMWORK: First Creditors' Meeting Set For Dec. 22
BABY ZONE: Collapses Into Voluntary Administration
BOSTON PACIFIC: First Creditors' Meeting Set For Dec. 23
C.C.K. INTERIORS: First Creditors' Meeting Set For Dec. 23
COCUZ PTY: First Creditors' Meeting Set For Dec. 22
COLI OREGON: First Creditors' Meeting Slated For Dec. 23
DEALHQ ONLINE: In Liquidation; Assets Up For Sale
DUNGEON CRAWL: Intellectual Property, Assets Up For Sale
IP VOICE: Enters Into Voluntary Liquidation
LEMNOS BUILDING: First Creditors' Meeting Set For Dec. 23
NEXTGEN NETWORKS: Moody's Lowers CFR to B1; Outlook Stable
ONI GLOBAL: First Creditors' Meeting Slated For Dec. 23
TRITON TRUST: Fitch Assigns 'BBsf' Rating to Class D Notes
VOCATION LIMITED: Administrators Seek Expressions of Interest
C H I N A
CAR INC: S&P Affirms 'BB+' Corp. Credit Rating; Outlook Stable
CHINA: Commercial Banks to Face Pressures in 2016, Moody's Says
CHINA: Offers Stricken Steelmakers Lifeline With Export Tax Cut
PACTERA TECHNOLOGY: Moody's Lowers CFR to B1; Outlook Stable
I N D I A
AZICO PHARMACEUTICALS: CRISIL Cuts Rating on INR131MM Loan to D
BACHMANN INDUSTRIES: CRISIL Reaffirms B+ Rating on INR140MM Loan
BLUEBERRY AGRO: CRISIL Reaffirms B- Rating on INR70MM Term Loan
DEEP TIMBERS: CARE Assigns 'B' Rating to INR3.0cr LT Loan
FLAIR GARMENTS: Ind-Ra Hikes Long-Term Issuer Rating to 'IND B+'
FAIR N FLAIR: Ind-Ra Hikes Long-Term Issuer Rating to 'IND B+'
GARDEN SILK: CARE Assigns 'B' Rating to INR1,063.82cr Term Loan
GUPTA AGENCIES: CRISIL Assigns 'B' Rating to INR62.5MM Loan
HI-REACH CONSTRUCTION: CARE Ups Rating on INR8.50cr Loan to BB-
JAY BHARAT: CARE Assigns 'B+' Rating to INR33.65cr LT Loan
JAYANTHI EXPORTS: CRISIL Cuts Rating on INR65MM ST Loan to 'D'
KELTECH INFRASTRUCTURE: CRISIL Cuts Rating on INR100MM Loan to D
KOMARLA HATCHERIES: Ind-Ra Assigns 'IND B+' LT Issuer Rating
KRITIKA ENTERPRISES: CRISIL Cuts Rating on INR80MM Loan to 'D'
KRUPADEEP TRADERS: CARE Assigns 'B' Rating to INR1.50cr LT Loan
MAKCUR LABORATORIES: Ind-Ra Assigns IND B- LT Issuer Rating
MANSAROVER ROLLER: CARE Reaffirms B+ Rating on INR5.60cr LT Loan
NEMI CHEM: CRISIL Reaffirms B+ Rating on INR20MM Cash Loan
ONE STOP: CRISIL Reaffirms 'B' Rating on INR80MM Term Loan
PREMIUM FOODS: CRISIL Reaffirms 'B+' Rating on INR100MM LT Loan
PUNE BUILDTECH: CARE Reaffirms 'D' Rating on INR286cr LT Loan
RADHA STEEL: Ind-Ra Affirms Long-Term Issuer Rating at 'IND BB-'
RAMA CONSTRUCTION: Ind-Ra Assigns 'IND BB+' LT Issuer Rating
RANCHHOD OILMILL: CARE Assigns B+ Rating to INR9.50cr LT Loan
REGAL TRANSCORE: CRISIL Ups Rating on INR87.5MM Loan to B
SAKRAT TEXFAB: CARE Revises Rating on INR8.84cr LT Loan to 'B'
SAMRUDH PHARMACARE: CRISIL Assigns B- Rating to INR105MM Loan
SHANKAR AGRO: CARE Reaffirms B+ Rating on INR7cr Cash Loan
SHREE BABA: CRISIL Assigns 'B' Rating to INR120MM Cash Loan
SHREE VAISHNAV: CRISIL Cuts Rating on INR670.3MM Loan to D
SHREE VAISHNAV METAL: CRISIL Cuts Rating on INR312.7M Loan to D
SHRI SAMARTH: CARE Assigns 'D' Rating to INR9.76cr Loan
UDASEE STAMPINGS: CRISIL Ups Rating on INR72.5MM Cash Loan to B
UJJWAL LUXURY: CARE Assigns 'B' Rating to INR14cr LT Loan
VISHNURAAM TEXTILES: CRISIL Reaffirms B Rating on INR54.7MM Loan
VRINDAA CRAFTS: CARE Revises Rating on INR11cr LT Loan to BB-
I N D O N E S I A
INDIKA ENERGY: Moody's Lowers CFR to B3; Outlook Negative
TOWER BERSAMA: Moody's Lowers CFR to Ba3; Outlook Stable
TRADA MARITIME: Unit Receives Notice of Default on $13.48MM Loan
J A P A N
TOSHIBA CORP: May Sell Toshiba Tec as Part of Streamlining Effort
TOSHIBA CORP: Eyes Several Thousand Job Cuts in Restructuring
N E W Z E A L A N D
OPTIMIZER HQ: Two Subsidiaries Placed in Liquidation
P H I L I P P I N E S
PENAFRANCIA RURAL: In Receivership; PDIC Closes Bank
RURAL BANK OF CABA: Placed Under PDIC Receivership
S I N G A P O R E
COSCO CORPORATION: Restructuring Deal With Parent Falls Through
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A U S T R A L I A
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B.L.D FORMWORK: First Creditors' Meeting Set For Dec. 22
--------------------------------------------------------
Dino Travaglini and Mark Hutchins of Cor Cordis were appointed as
administrators of B.L.D Formwork Pty Ltd on Dec. 10, 2015.
A first meeting of the creditors of the Company will be held at
Conference Room, Plaza Level, BGC Centre, 28 The Esplanade, in
Perth, on Dec. 22, 2015, at 10:30 a.m.
BABY ZONE: Collapses Into Voluntary Administration
--------------------------------------------------
Eloise Keating at SmartCompany reports that a baby goods retailer
with 11 outlets across New South Wales has collapsed into
voluntary administration just weeks before Christmas.
My Baby Warehouse NSW is continuing to trade but a freeze has been
placed on gift cards, refunds and lay-bys as December 25 quickly
approaches, SmartCompany citing the Daily Telegraph.
Robert Kite and Ozem Kassem from Cor Cordis were appointed to BHLS
and Baby Zone, which trade as 'My Baby Warehouse' on December 10
and the first meeting of the company's creditors will be held on
December 21, according to SmartCompany.
SmartCompany says the voluntary administration does not include
the My Baby Warehouse stores in Bankstown and Campbelltown in NSW
or the My Baby Warehouse stores in all other states and
territories.
Administrator Robert Kite told the Daily Telegraph the 11 outlets
will continue to trade while the administrators investigate the
financial position of the business, SmartCompany relays.
"Until our review of the business is finalised we will not be in a
position to honour any lay-by orders, gift cards or refunds," the
report quotes Mr. Kite as saying.
Online orders that have not yet been dispatched are also expected
to be affected, SmartCompany notes.
My Baby Warehouse sells a wide range of baby products, including
toys, bedding, cots, strollers and prams. The business employs 65
people.
BOSTON PACIFIC: First Creditors' Meeting Set For Dec. 23
--------------------------------------------------------
Dennis Anthony Turner and Luke Christopher Targett of BDO were
appointed as administrators of Boston Pacific Capital Pty Ltd,
Boston Pacific Capital Australia Pty Ltd, CME Capital Australia
Pty Ltd, and GKN Capital Pty Ltd on Dec. 11, 2015.
A first meeting of the creditors of the Company will be held at
BDO, Level 14, 140 William Street, in Melbourne, on Dec. 23, 2015,
at 12:00 p.m.
C.C.K. INTERIORS: First Creditors' Meeting Set For Dec. 23
----------------------------------------------------------
Dennis Anthony Turner and Luke Christopher Targett of BDO were
appointed as administrators of C.C.K. Interiors Pty Ltd on Dec.
11, 2015.
A first meeting of the creditors of the Company will be held at
at BDO, Level 14, 140 William Street, in Melbourne, on Dec. 23,
2015, at 10:00 a.m.
COCUZ PTY: First Creditors' Meeting Set For Dec. 22
---------------------------------------------------
Steven Gladman and David Ingram of Hall Chadwick were appointed as
administrators of Cocuz Pty Ltd on Dec. 10, 2015.
A first meeting of the creditors of the Company will be held at
Hall Chadwick, Level 40, 2 Park Street, in Sydney, on Dec. 22,
2015, at 10:00 a.m.
COLI OREGON: First Creditors' Meeting Slated For Dec. 23
--------------------------------------------------------
Bruce Gleeson & Daniel Robert Soire Targett of Jones Partners were
appointed as administrators of Coli Oregon Australia Pty Limited
on Dec. 15, 2015.
A first meeting of the creditors of the Company will be held on
Dec. 23, 2015, at 11:00 a.m.
DEALHQ ONLINE: In Liquidation; Assets Up For Sale
-------------------------------------------------
Cliff Sanderson at Dissolve.com.au reports that DealHQ Online Pty
Ltd is up for sale. The company has been placed into
administration. Antony Resnick and David Solomons of de Veries
Tayeh were appointed administrators of the company on Dec. 4,
2015, the report discloses.
Dissolve.com.au relates that the sale includes the ToolHQ brand,
the company's database of circa 50,000 buyers and its website
(www.toolhq.com.au). The new owner of the company would also get
to own the company's newly made Amazon USA seller account and home
brands Nevada and Starke, the report adds.
DUNGEON CRAWL: Intellectual Property, Assets Up For Sale
--------------------------------------------------------
Cliff Sanderson at Dissolve.com.au reports that the intellectual
property and assets of Dungeon Crawl Pty Limited are up for sale.
Dissolve.com.au says the sale includes the Dungeon Crawl brand,
the brand's website, gaming database of circa 140,000 buyers and
supplier network. The new owner of the business will also get to
own its website ID and store that has circa 240,000 feedback
rating and ten years of IP. The store is the biggest independent
game seller on Ebay, says Dissolve.com.au.
Dungeon Crawl Pty Limited owns an online video game and
entertainment shop. The company entered administration on
Dec. 4, 2015 with Antony Resnick of de Vries Tayeh being appointed
administrator and Antony Resnick and David Solomons as joint
appointees.
IP VOICE: Enters Into Voluntary Liquidation
-------------------------------------------
June Ramli at CRN reports that Brisbane-based IP Voice Solutions
has entered voluntary liquidation and been replaced with a new
company offering many of the same services.
CRN relates that the Avaya reseller has been in operation since
2005 but rebranded itself as IPVS in October, according to its
website. A new company, IPVS Pty Ltd, was registered on
September 4.
According to CRN, ASIC documents revealed that IP Voice Solutions
fell into liquidation on November 26, with Andrew Peter Fielding
of BDO appointed liquidator.
CRN discloses that the reseller's debts could be as high as
AUD500,000, according to ASIC documents, with a creditors list
that included Avaya distributors Distribution Central and
VExpress, as well as the ATO, which could be owed more than
AUD100,000.
The Report as to Affairs from director Darren Jansz reveals that
some of the reseller's debts are expected to be taken over by a
new company and paid off over 12 months, according to CRN.
It is unclear what will happen to the company's employees, or what
kind of a return creditors can expect, the report notes.
LEMNOS BUILDING: First Creditors' Meeting Set For Dec. 23
---------------------------------------------------------
Andrew William Poulter Targett of Abbott Welsh was appointed as
administrator of Lemnos Building Services Pty Ltd on Dec. 11,
2015.
A first meeting of the creditors of the Company will be held at
Abbott Welsh, Suite 6, 560 Lonsdale Street, in Melbourne,
Victoria, on Dec. 23, 2015, at 11:00 a.m.
NEXTGEN NETWORKS: Moody's Lowers CFR to B1; Outlook Stable
----------------------------------------------------------
Moody's Investors Service has downgraded Nextgen Networks Group
Pty Limited's corporate family rating to B1 from Ba3.
At the same time, Moody's has downgraded to B1 from Ba3 the senior
secured ratings on Nextgen Networks Pty Limited's (1) USD term
loan facility (equivalent to around AUD 400 million); and (2) USD
senior secured revolving credit facility (equivalent to around
AUD75 million).
The ratings outlook is stable.
RATINGS RATIONALE
"The downgrade of Nextgen's ratings principally reflects the
deterioration in its financial metrics, caused by delays in
securing and executing new orders and by lower connection and
installation charges," says Ian Chitterer, a Moody's Vice
President and Senior Analyst. "As a result, the company has
consistently underperformed against its targets for each quarter
this year."
"We expect the company's financial leverage will remain elevated
and weaker than our expected level for the Ba3 rating for at least
the next 12-18 months," adds Chitterer.
Nextgen's adjusted debt/EBITDA for FY2014 was 4.0x based on
statutory EBITDA, and 5.3x based on cash EBITDA (after having
adjusted for deferred revenue), breaching Moody's downward trigger
of 4.3x.
The stable ratings outlook reflects Moody's expectation that
Nextgen will maintain its competitive position as one of three key
providers of backhaul fibre services to both the government of,
and corporates across Australia (Aaa stable).
Further downward ratings pressure could emerge if Nextgen's FFO
margin declines much below the 20% level and at the same time (FFO
+ interest expense) / interest expense falls below 2x or
debt/EBITDA increases towards 6x on a sustained basis (including
Moody's standard adjustments).
The ratings could be upgraded if FFO margin improves to above 30%,
while (FFO + interest expense) / interest expense increases above
3x or debt/EBITDA decreases to below 5x (including Moody's
standard adjustments) on a sustained basis.
The principal methodology used in these ratings was Global
Communications Infrastructure Rating Methodology published in June
2011.
Nextgen Networks Group Pty Limited is an Australia based backhaul
network provider, operating a circa 17,000km of fibre optic cable
network connecting to both mainland capital cities and to regional
and remote areas. Nextgen's network access and services enable
corporate, government and wholesale customers to transfer data and
content between offices, sites, data centres, services and
exchanges. For the year ended Dec. 31, 2014, it reported total
assets of AUD851 million.
ONI GLOBAL: First Creditors' Meeting Slated For Dec. 23
-------------------------------------------------------
Gess Michael Rambaldi and Andrew Reginald Yeo of Pitcher Partners
were appointed as administrators of Oni Global (Australia) Pty
Ltd, trading as GNC Livewell, on Dec. 14, 2015.
A first meeting of the creditors of the Company will be held at
Pitcher Partners, Level 19, 15 William Street, in Melbourne,
Victoria, on Dec. 23, 2015, at 11:00 a.m.
TRITON TRUST: Fitch Assigns 'BBsf' Rating to Class D Notes
----------------------------------------------------------
Fitch Ratings has assigned final ratings to Triton Trust No.7 CS
Warehouse No 1's residential mortgage-backed floating-rate notes.
The issuance consists of notes backed by Australian residential
mortgages originated by Calibre Financial Services (Calibre) and
eChoice Limited (eChoice). The ratings are as follows:
AUD 108.34 million Class A notes: 'AAAsf'; Outlook Stable;
AUD 6.0 million Class B notes: 'Asf'; Outlook Stable;
AUD 1.5 million Class D notes: 'BBsf'; Outlook Stable; and
AUD 1.0 million Class E notes: 'NRsf'.
The notes are issued by Perpetual Corporate Trust Limited in its
capacity as trustee of Triton Trust No.7 CS Warehouse Series No 1.
At the cut-off date, the pool had 100% lenders' mortgage insurance
(LMI) cover. The weighted-average (WA) seasoning of the portfolio
is 92.1 months, with a WA current unindexed loan/value ratio
(CLVR) of 72.2% and an indexed WACLVR of 63.5%. Loans with an
unindexed LVR greater than 80% account for 35.5% of the pool. The
average current loan size is AUD146,459; investment loans
represent 56.0% of the pool by balance, and interest-only loans
represent 65.5%.
KEY RATING DRIVERS
Closed Portfolio: The transaction documents do not allow for the
addition of new receivables to the trust. The portfolio is
considered static with a pass through pay down structure for the
purpose of Fitch's analysis.
Minimum Subordination Amounts: The transaction requires that a
minimum dollar amount of subordination must be met for each rated
note at each payment date before principal can be distributed.
This feature is particularly important during the pro-rata period
and after pool transfers to ensure that there is sufficient
subordination in the tail end to cover for losses of large loans.
Adequate Liquidity Support: Liquidity support will be provided via
excess spread, a yield reserve, principal draws and a liquidity
reserve sized at 1.6% of the mortgage balance which will amortise
to a reserve floor of AUD200,000.
Servicer Transition: The role of servicer has fully transitioned
from eChoice to Columbus Capital Pty Limited (Columbus) in 2015.
Columbus also acquired the eChoice's servicing platform, allowing
a relatively seamless transition of servicing and late payment
collections.
RATING SENSITIVITIES
The transaction structure supports an LMI dependent rating for the
Class A, B and D notes; therefore LMI is a key driver supporting
the 'AAAsf' rating.
Unexpected decreases in residential property value, increases in
the frequency of foreclosures, and loss severity on defaulted
mortgages could produce loss levels higher than Fitch's base case,
which could result in negative rating actions on the notes.
Fitch evaluated the sensitivity of the ratings assigned to Triton
Trust No.7 CS Warehouse Series No 1 to increased defaults and
decreased recovery rates over the life of the transaction.
Its analysis found that the Class A notes' ratings under Fitch's
moderate (15% increase) and severe (30% increase) default
scenarios saw a two-notch downgrade to 'AAsf'. Collectively, the
Class A, B and D notes' ratings were impacted under both the
moderate (15% decrease) and severe (30% decrease) recovery rate
scenarios. Under the moderate recovery scenario, the Class A, B
and D notes experienced a two, six and five notch downgrade,
respectively.
The transaction shows greater sensitivity to a combination of both
increased defaults and decreased recoveries with the Class A, B
and D notes' ratings experiencing a two, nine and five notch
downgrade, respectively under the medium multiple stress. The
Class A, B and D notes' ratings experienced an eight, eleven and
five notch downgrade, respectively, under the severe stress.
Fitch found that the Class A, B and D notes' ratings were stable
in scenarios where the LMI providers are collectively downgraded
by two notches or less. In more severe scenarios, such as a four-
notch downgrade of the LMI providers, the Class A and B notes are
impacted, with their ratings experiencing downgrades of one
category.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation
to this rating action.
DATA ADEQUACY
Fitch conducted a file review of 10 sample loan files focusing on
the underwriting procedures conducted by Calibre and eChoice
compared to their credit policy at the time of underwriting. Fitch
has checked the consistency and plausibility of the information
and no material discrepancies were noted that would impact Fitch's
rating analysis.
VOCATION LIMITED: Administrators Seek Expressions of Interest
-------------------------------------------------------------
Dissolve.com.au reports that Vocation Limited is up for sale. The
report says expressions of interest are sought by the company's
administrators Ferrier Hodgson.
Dissolve.com.au relates that the sale includes independent
customer service organisation Customer Service Institute of
Australia. Vocation's intellectual property which includes;
however is not limited to, licenses, course materials, proprietary
platforms and its client database is also on the market, the
report notes.
"As a result of further customer contract terminations, the lack
of available liquidity to fund operations and the lack of ongoing
support from key stakeholders, the Voluntary Administrators of
Vocation Limited have had no alternative but to cease the majority
of the company's operations effective from Nov. 30, 2015," Ferrier
Hodgson said. "As a consequence, the Administrators have
terminated approximately 150 staff across the business."
As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 30, 2015, Ferrier Hodgson partners, Peter Gothard, Jim
Sarantinos and George Georges on Nov. 25, 2015, were appointed as
Voluntary Administrators of Vocation Limited and its subsidiaries:
-- BAWM Pty Ltd;
-- Aspin Pty Ltd;
-- Avana Group Pty Ltd;
-- QI Careers Pty Ltd;
-- Avana Talent Pty Ltd;
-- Avana Services Pty Ltd;
-- Avana Education Pty Ltd;
-- Green Skills Institute (Aust) Pty Ltd;
-- Training & Development Australia Pty Ltd;
-- Avana Learning Pty Ltd;
-- Student Hub Pty Ltd;
-- Customer Service Institute of Australia Pty Ltd;
-- CSIA Education Services Pty Ltd;
-- Oil Group Holdings Pty Ltd;
-- Learning Verve Pty Ltd;
-- ACN 152 406 338 Pty Ltd;
-- TTS-100 Pty Ltd;
-- Real Corporate Partners Pty Ltd; and
-- Online Institute of Learning Pty Ltd.
"The Administrators are undertaking an urgent assessment of the
business with a view of determining how the Voluntary
Administration should proceed," Ferrier Hodgson said in a
statement.
SmartCompany related that Vocation has collapsed into voluntary
administration, just over 12 months since the company was forced
to forfeit AUD19.6 million in government funding. The appointment
of Ferrier Hodgson as administrators also comes after the training
provider entered several trading halts during 2015, SmartCompany
added.
Vocation Limited provides workforce based training and development
solutions to employees of Australian Corporate and government
clients. Vocation also provides training directly to individual
students. Vocation operates several colleges in Victoria, New
South Wales, Queensland and South Australia, including Avana, Real
Institute, Real Community, Building Brighter Futures, TDA and the
Consumer Service Institute of Australia.
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C H I N A
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CAR INC: S&P Affirms 'BB+' Corp. Credit Rating; Outlook Stable
--------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB+' long-term
corporate credit rating on CAR Inc. The outlook is stable. At
the same time, S&P affirmed its 'BB+' issue rating on the
outstanding senior unsecured notes of the China-based car rental
company. S&P also affirmed its 'cnBBB+' long-term Greater China
regional scale ratings on CAR and the notes.
"We affirmed the rating on CAR because we expect the company to
maintain its good market position and long-term cooperation with
UCAR Technology Inc. In turn, these factors should help to
support steady growth in both the short-term and long-term rental
business," said Standard & Poor's credit analyst Gloria Lu.
Following two rounds of equity subscriptions, CAR will further tie
up with UCAR to improve vehicle utilization for both its long-term
and short-term rental business. Cooperation with UCAR remains key
to CAR's long-term development, and S&P therefore expects CAR to
further increase capital expenditure for fleet expansion to meet
UCAR's needs.
S&P anticipates that the collaboration with UCAR could improve
CAR's overall business mix, diversify its revenue sources, and
improve the efficiency of the company's fleet. However, high
competition in the chauffeured services segment and the short
record of UCAR's operations and collaboration will be major
constraints over the next two years.
S&P has reduced its assumption for fleet additions, based on CAR's
updated plan for 2015 and 2016. S&P believes fewer additions
could ease the pressure on the company from reduced downside
headroom in the rating. Since this year, CAR's fleet expansion
has been highly linked to UCAR's business growth. CAR has reduced
its total vehicle additions to about 40,000 (including both short-
term and long-term rental vehicles) from its planned target of
about 63,000 earlier this year. The reduction is mainly due to
UCAR's strategy to improve efficiency by adding more drivers for
next-stage expansion. S&P anticipates capital expenditure for
rental vehicles will be about Chinese renminbi (RMB) 5.5 billion
in 2015, down from S&P's earlier estimate of RMB8 billion - RMB9
billion. S&P also expects capital expenditure for 2016 will stay
flat to fuel steady fleet growth.
CAR's growing scale and strong market position within China's
fragmented car rental market underpin its "fair" business risk
profile. However, the company also has a smaller scale than
global peers and a short operating track record, especially
regarding its cooperation with UCAR. CAR benefits from some entry
barriers to markets in China's main cities, such as high capital
requirement for fleet expansion and vehicle plate issuance
control.
In S&P's view, CAR's newly launched used-car direct sales program
via self-operated shops is important to its future development.
After four to five years of fleet expansion, CAR's efficiency
regarding used-car disposal continues to be vital to its
sustainable growth over the next couple of years. However, S&P
believes the company's execution risk and short operating record
remain key risks.
S&P expects rental revenue to steadily increase. Short-term
rental revenue growth should gradually stabilize and long-term
rental revenue will maintain high growth linked with UCAR's
growth. Utilization and average daily rental revenue per car
(RevPAC) could moderately improve towards a stabilized level,
leading to strengthened EBITDA margins and cash flow from
operations. In S&P's base case, debt leverage will stabilize over
the next two years, provided CAR makes no aggressive debt-funded
acquisitions or investments.
"The stable outlook reflects our view that CAR's cash flows from
both short-term and long-term rentals will continue to increase
and capital expenditure will remain manageable due to slowed fleet
expansion. We expect the EBITDA margin in the rental business to
continue to increase, and the debt-to-EBITDA ratio will remain
below 3x over the next 12 months. We don't foresee any large
acquisitions over the period, and therefore expect the FFO-to-debt
ratio to stay at 30%-40%," said. Ms. Lu.
S&P could lower the rating if CAR's debt-to-EBITDA ratio exceeds
3x or the FFO-to-debt ratio falls below 30% on a consistent basis.
This could happen if the company makes material debt-funded
acquisitions or the performance of its rental business
deteriorates due to weak demand, significantly eroding
profitability. S&P may also lower the rating if CAR faces
heightened associated risks from its cooperation with UCAR, such
as sudden changes in the long-term rental agreement, which could
weaken S&P's assessment of CAR's business strength.
The lack of business diversity and CAR's limited operating record
limit rating upside. However, S&P could raise the rating only
once CAR successfully executes its growth strategy in China,
demonstrates a record of prudent financial management, and
consistently generates positive free operating cash flows, while
maintaining its operating margins and financial strength.
CHINA: Commercial Banks to Face Pressures in 2016, Moody's Says
---------------------------------------------------------------
Moody's Investors Service says that city commercial banks in China
will face asset quality and capital pressures in 2016, as the
country's economic growth continues to slow, and its
liberalization of interest rates deepens.
"When compared to the big five state-owned commercial banks in
China, or the country's joint-stock commercial banks, city
commercial banks on average face greater credit challenges," says
Amanda Du, a Moody's Vice President and Senior Analyst.
Du explains that the city commercial banks' specific credit
challenges are due to their: 1) above-industry asset growth rates;
2) lending and customer concentrations in single regions ; and 3)
relatively high adjusted loan to deposit ratios compared to
China's big five banks when account is taken of their growing
investments in loans and receivables.
"Most city commercial banks will see their profitability levels
weaken as a result of narrower net interest margins in a
liberalized interest rate environment, and growing credit costs in
a moderating economy," adds Yulia Wan, a Moody's Assistant Vice
President and Analyst.
Wan points out that city commercial banks will also face
increasing strain on their capital ratios , if they maintain their
recent 20%-plus loan growth rates.
Moody's analysis is contained in its just-released report titled
"Banks - China: Chinese City Commercial Banks Will Face Asset
Quality and Capital Pressures in 2016," and is co-authored by Du
and Wan.
Moody's report points out that it is important to recognize the
wide variations in the individual city commercial bank's business
performance, as shown in the large range of their returns on
assets and non-performing loan (NPL) ratios, and their different
support profiles. These variations suggest considerable variation
in the credit profile of individual city commercial banks, after
taking into account the banks' standalone credit strength and
support assumptions.
Moody's report says that the city commercial banks' reported NPL
ratios understate their true asset challenges, because of these
banks' unseasoned credit risk in their loan portfolios, due to
their rapid loan growth rates.
Nonetheless, city commercial banks also demonstrate higher NPL
coverage ratios when compared with the big five state-owned
commercial banks and joint-stock commercial banks. Such a
situation mitigates the potential impact of rising loan
delinquency on the smaller banks' broader credit profiles.
On liquidity, Moody's explains that city commercial banks report
low loan-to-deposit ratios of between 60% and 70%. However, these
ratios fail to take into account the banks' increasing investments
in loans and receivables. Since the underlying assets often have
relatively long tenors and these investments cannot be traded
easily in open markets, Moody's thinks it is also appropriate to
consider the banks' adjusted loan to deposit ratios in which these
investments are viewed as loans. This adjustment results in an
average adjusted loan to deposit ratio for major city commercial
banks of around 85% at the end of 2014.
Still, while city commercial banks' liquidity profile is weaker
than that of China's big five banks, on average Moody's believes
these banks will maintain their liquidity profiles over the next
12-18 months. This is partly because system liquidity is likely
to remain ample in an environment of more accommodative monetary
policy.
As for profitability, Moody's report notes that the average
returns on assets for city commercial banks as a group are lower
than the levels achieved by their larger peers, because of the
city commercial banks' lower percentage of fees and commissions,
and higher credit costs. City commercial banks are heavily
dependent on their net interest income, which makes them sensitive
to interest rate liberalization and interest rate cuts.
On government support, Moody's report says that city commercial
banks will enjoy different degrees of support from local and even
central government ) in times of stress. Increasing private-
sector ownership and the recent introduction of deposit insurance
in China will weaken the central government's incentive to provide
support to small banks. Nevertheless, Moody's expects that
relevant local governments will remain keen to support important
regional players to avoid economic and social disruptions.
CHINA: Offers Stricken Steelmakers Lifeline With Export Tax Cut
---------------------------------------------------------------
Ruby Lian and Manolo Serapio Jr at Reuters report that China will
cut export taxes on steel billet and pig iron from the start of
2016, the finance ministry said on Dec. 9, the latest move by the
world's top steel producer to erode a domestic glut and offer a
lifeline to the stricken industry.
According to Reuters, exports of the two products are relatively
modest, but the move will likely fuel concerns that the world's
biggest consumer of industrial raw materials is exporting its
excess output to a saturated global market, accelerating a price
rout.
"This kind of strategy is aimed at redirecting this oversupply in
China to other countries," the report quotes Helen Lau, analyst
with Argonaut Securities in Hong Kong, as saying.
As part of a raft of measures aimed at boosting economic growth in
the world's second-largest economy, the ministry said it will cut
the 25 percent export tariff on billet and pig iron to 20 percent
and 10 percent respectively from Jan. 1, Reuters discloses.
Reuters relates that the move underscores the deepening crisis in
the world's biggest steel industry as the country's economic
growth slows, leaving stricken mills to struggle with plunging
prices, waning demand from real estate to shipbuilding, and tight
credit. Many have gone bankrupt or cut output, the report notes.
The report says chinese steel mills have cut shipments of both
products since 2008 when duties were raised to current levels. In
January-October, China exported 141,659 tonnes of pig iron and
5,367 tonnes of steel billet, said Kevin Bai, analyst at CRU in
Beijing, Reuters relays.
Preliminary customs data on Dec. 7 showed China's shipments of
steel products topped 100 million tonnes for the first time in the
first 11 months of the year, Reuters discloses.
According to the report, two exporters in China said the tariff
cut was too small to help boost exports, but it will likely
escalate trade tensions with Europe and the United States, which
have accused the country's mills of deliberately dumping surplus
production.
Reuters says market participants were surprised by the move,
coming just weeks after authorities hit back at criticism from
abroad about its support for the industry and saying Beijing did
not set out to encourage steel firms to boost exports.
As part of the Dec. 9 statement, the government said it would also
eliminate export tariffs on phosphoric acid and ammonia and cut
taxes on some energy raw materials, but it did not identify which
materials would be subject to the cut, adds Reuters.
It kept tariffs on naphtha, jet kerosene, diesel, fuel oil,
ethylene/propylene, propane and benzene unchanged. It also kept
base metals and nickel pig iron tariffs unchanged, Reuters
reports.
PACTERA TECHNOLOGY: Moody's Lowers CFR to B1; Outlook Stable
------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating of Pactera Technology International Ltd. to B1 from Ba3.
Moody's has also downgraded to B1 from Ba3 the senior secured debt
rating on the bonds issued by BCP Singapore VI Cayman Financing
Company Ltd., which are guaranteed by Pactera.
The outlook on the ratings is stable.
RATINGS RATIONALE
"The downgrade reflects our concern that ongoing challenges will
keep Pactera's operating margin at a level that more closely
matches that of its single-B rated peers," says Lina Choi, a
Moody's Vice President and Senior Credit Officer.
Pactera's adjusted operating margin fell below 3% in the first
nine months of 2015 from 8.7% for 2014.
The fall in its operating margin was the result of higher sales
costs amid increasing wages in China and a weakened economic
performance in Europe.
Moody's expects such weak market conditions will persist over the
next 12-18 months. In addition, the company will continue to
invest working capital to grow its business in China (Aa3 stable).
These two factors will keep any recovery in the company's
operating income margin limited to 5%-7%.
Its weakened operating margin has negatively impacted Pactera's
cash flow generation. Moody's estimates the company's funds from
operations (FFO) to debt coverage will decline to around 10% in
2015 from 14% in 2014, which no longer supports its earlier Ba3
rating.
"The downgrade also reflects our expectation that Pactera will see
higher working capital requirements as it increases the number of
Chinese customers, from whom the company accepts longer receivable
days," says Choi, who is also Moody's Lead Analyst for Pactera.
Pactera's blended account receivable days for the first nine
months of 2015 lengthened to 141 days from 128 days for the same
period in 2014. This factor, combined with high growth in revenue
from China caused a working capital outflow of USD76 million for
the first nine months of 2015, compared to USD35 million for the
same period in 2014.
Given the increasing importance of China business as a growth
engine, we believe Pactera's working capital position will further
deteriorate to accommodate the lengthened payment terms.
Pactera plans to restore its profitability by (1) carefully
balancing its growth needs against its profitability; (2)
investing in a center of excellence for global practice
development; and (3) exploring options to optimize it working
capital management.
While these measures will build a stronger and more resilient
business model for the long term, it will take time for them to be
fully implemented and start bearing fruit.
Pactera's B1 rating reflects (1) the expectation that the IT
outsourcing market, particularly in China, will show attractive
growth opportunities over the medium term; (2) its leading market
position within China, supported by its international experience;
and (3) its well-diversified revenue portfolio across geographies
and customers.
But its rating is constrained by its (1) small operating scale and
therefore inherent operating volatility; (2) low margins and
therefore less competitive cost structure when compared to its
larger international IT peers; and (3) privatization, which
reduces its funding access to the equity markets and increases the
risk of shareholder distributions.
Pactera' liquidity remains adequate, though its cash narrowed to
USD51.5 million at end-September 2015 from USD134 million at end-
2014. Moody's also cautions that Pactera's previously robust
ability to generate cash flow from operations could weaken further
if the profitability challenges and working capital issues
persist.
The stable outlook reflects Moody's expectation that (1) wage
inflation pressure will have moderated by end-2015; (2) Pactera
will demonstrate sequential quarterly improvements in its
profitability via cost rationalization; and (3) Pactera will
maintain sufficient liquidity through better working capital
management.
Upgrade pressure could emerge over the medium term if Pactera
improves its profitability, such that its adjusted operating
margin recovers to 8%-10% and FFO/debt remains above 10-15%, both
on a sustained basis.
On the other hand, further downward rating pressure could emerge
if Pactera (1) fails to demonstrate sequential quarterly
improvements in its operating margin; (2) shows a sustained
weakening cash flow generation ability; (3) takes on aggressive
acquisitions; or (4) undertakes material shareholder
distributions.
Metrics indicative of a rating downgrade include (1) operating
margins below 5%-7%; or (2) FFO/total debt below 8%-10%, on a
sustained basis.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in December 2014.
Pactera Technology International Ltd. and its subsidiaries provide
IT services to multinational and Chinese corporations. It was
formed from the merger of VanceInfo Technologies Inc. (unrated)
and Hisoft Technology International Ltd. (unrated) in 2012 and
currently operates 16 delivery centers across 12 countries and PRC
special administrative regions. In 2014, the company reported
revenue of USD713 million.
=========
I N D I A
=========
AZICO PHARMACEUTICALS: CRISIL Cuts Rating on INR131MM Loan to D
---------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Azico Pharmaceuticals Pvt Ltd (APPL) to 'CRISIL D/CRISIL D' from
'CRISIL B/Stable/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 27 CRISIL D (Downgraded from
'CRISIL B/Stable')
Letter of Credit 11 CRISIL D (Downgraded from
'CRISIL A4')
Long Term Loan 131 CRISIL D (Downgraded from
'CRISIL B/Stable')
The downgrade reflects instances of delay by APPL in servicing its
debt because of weak liquidity.
APPL has small scale of operations, and is exposed to fluctuations
in raw material prices and to intense competition in the
pharmaceuticals industry. However, it benefits from its promoter's
extensive industry experience.
APPL, incorporated in 2009 by Mr. AP Rameswara Rao and based in
Hyderabad, manufactures active pharmaceutical ingredients for
supply to the regulated market.
BACHMANN INDUSTRIES: CRISIL Reaffirms B+ Rating on INR140MM Loan
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Bachmann Industries
India Ltd (Bachmann India) continue to reflect large working
capital requirement, below-average financial risk profile, and
exposure to project-related risks. These weaknesses are partially
offset by promoters' extensive experience in the industry and
technical support from the UK-based Senior group.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 60 CRISIL A4 (Reaffirmed)
Cash Credit 140 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes Bachmann India will continue to benefit over the
medium term from promoters' extensive industry experience and
technical support from the Senior group. The outlook may be
revised to 'Positive' if the company commences operations at its
new unit on time, thereby significantly improving order book and
revenue while maintaining operating margin. Conversely, the
outlook may be revised to 'Negative' if financial risk profile
deteriorates because of time or cost overrun in the unit, or in
case of sizeable increase in working capital requirement and
significantly low operating margin.
Update
Bachmann India's revenue marginally declined to INR340 million
during 2014-15 (refers to financial year, April 1 to March 31)
from INR364 million during 2013-14 due to delayed off-take of an
order of INR30 million at customer's end. Revenue till September
30, 2015, in 2015-16 is around INR200 million and is expected to
close the year at more than INR 350 million supported by healthy
order book of INR420 million to be delivered by May 2016.
Operating margin increased to 12.3 per cent during 2014-15 from
10.9 per cent in 2013-14 driven by management's focus on high-
value orders. CRISIL expects the margin to remain stable around 12
per cent over the medium term.
Financial risk profile continues to remain weak because of high
gearing and weak debt protection metrics because of high
dependence on external debt to meet working capital requirements.
Liquidity is constrained because by pending capex towards
enhancing the production capacity along with high working capital
requirements marked by GCA days of around 408 days as on March 31,
2015. The bank lines of INR140 million were utilized at around 77
per cent for 5 months through August 2015. However, liquidity is
supported by unsecured loans from promoters of INR68.2 million as
on March 31, 2015.
Bachmann India was established in 1987 as a joint venture (JV)
between Mr. S M Maheshwari (60 per cent stake) and Bachmann
Industries Inc (Bachmann USA; 40 per cent stake). Bachmann USA was
subsequently acquired by US-based Wahlco-Metroflex Inc (Wahlco),
which is now a part of the Senior group. Bachmann India has one
manufacturing plant each in Faridabad (Haryana) and Chennai. It
manufactures flue gas control and isolation equipment, and is
managed by Mr. Rajesh Maheshwari, son of Mr. S M Maheshwari.
Wahlco provides original technical inputs for product design and
supply.
Senior Plc, headquartered in Hertfordshire in the UK, is the
holding company for firms in the manufacturing and engineering
sectors. The company is listed on the London Stock Exchange and is
a constituent of the FTSE 250 Index. The Senior group is an
international manufacturing conglomerate, providing engineered
products for demanding operating environments.
BLUEBERRY AGRO: CRISIL Reaffirms B- Rating on INR70MM Term Loan
---------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Blueberry Agro
Products Pvt Ltd (BAPPL) continues to reflect BAPPL's nascent
stage of operations and below-average financial risk profile
marked by low networth, high gearing and weak debt protection
metrics. These rating weaknesses are partially offset by the
extensive experience of the promoters in the tea industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 15 CRISIL B-/Stable (Reaffirmed)
Term Loan 70 CRISIL B-/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that BAPPL will benefit from its promoters'
extensive industry experience, over the medium term. The outlook
may be revised to 'Positive' if BAPL achieves higher than expected
offtake form its project by stabilising its operations in a timely
manner, and generates higher-than expected cash accruals.
Conversely, the outlook may be revised to 'Negative' if the
company's liquidity is constrained by lower-than-expected revenues
and profitability, resulting in lower-than-expected cash accruals
during the initial phase of its operations.
BAPPL was incorporated in November 2011 by the Mumbai
(Maharashtra)-based Daga family. The company set up a tea extract
processing unit in Wada (Maharashtra) which was commissed in
December 2014. The company is also engaged in trading of
electronics, watches and accessories. BAPPL previously traded in
tea. Mr. Suraj Kumar Daga, and his son, Mr. Gaurav Daga, manage
BAPPL's daily operations.
DEEP TIMBERS: CARE Assigns 'B' Rating to INR3.0cr LT Loan
---------------------------------------------------------
CARE assigns 'CARE B/CARE A4' rating to the bank facilities of
Deep Timbers Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 3.00 CARE B Assigned
Short term Bank Facilities 7.50 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Deep Timbers
Private Limited (DTPL) are primarily constrained by its modest
scale of operation coupled with weak financial risk profile
characterized by low profitability margins, highly leveraged
capital structure and weak debt coverage indicators. The ratings
are further constrained by susceptibility to fluctuation in
log prices and government regulations, foreign exchange
fluctuation risk and fragmented and competitive nature of the
industry.
The rating constraints are partially offset by experienced
promoters, location advantage, growing scale of operations and
moderate operating cycle.
Going forward, ability of the company to increase its scale of
operations while improving profitability margins and capital
structure and to manage foreign exchange rate fluctuations shall
be the key rating sensitivities.
Deep Timbers Pvt. Ltd. (DTPL) was incorporated in 2009 and is
managed by Mr Kamal Deep Garg, Mr Pradeep Garg and Mr Chander
Shekhar Garg. The company commenced its operations in December,
2008. DTPL is engaged in trading and sawing of timber in the form
of timber blocks. The company has its trading cum processing
facility located at Gandhidham, Gujrat. The facility has an
installed capacity to process 2000 cubic meters per month of
timber blocks. The company imports timber wood from Malaysia,
Singapore etc. and the finished products i.e. timber blocks are
sold domestically. Furthermore, the company sells its products to
wholesalers and retailers in Delhi and also sells on high seas
basis which forms around 10% of the total revenue. The company has
one associate concern namely Deep Lumbers Pvt. Ltd. (DLPL; rated
CARE B/CARE A4) which is engaged in a similar line of business
since August 2013.
In FY15 (refer to the period April 1 to March 31), DTPL has
achieved a total operating income (TOI) of INR77.31 crore with
PBILDT and profit after tax (PAT) of INR0.88 crore and INR0.13
crore respectively, as against TOI of INR57.01 crore with PBILDT
and PAT of INR0.69 crore and INR0.13 crore respectively, in FY14.
In H1FY16 (refers to the period April 1 to September 30) the
company achieved TOI of INR36.61 crore.
FLAIR GARMENTS: Ind-Ra Hikes Long-Term Issuer Rating to 'IND B+'
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Flair Garments
(P) Limited's (FGPL) Long-Term Issuer Rating to 'IND B+' from 'IND
B-'. The Outlook is Stable.
KEY RATING DRIVERS
The upgrade reflects an improvement in FGPL's credit profile in
FY15 due to the scheduled repayment of debt. In FY15, net leverage
was 5.1x (FY14: 17.2x) and interest coverage was 2.7x (0.7x).
Also, revenue grew marginally 0.6% yoy to INR179 million in FY15
and EBITDA margins improved significantly to 12.6% (FY14: 4.0%).
The ratings remain constrained by the cyclical nature of business
and the intense competition faced by the company by being one of
the moderate players in the overall industry.
The ratings though benefit from FGPL's founders' experience of
over two decades in the garments and fabric processing business.
RATING SENSITIVITIES
Positive: A positive rating action could result from a substantial
improvement in the scale of operations along with the maintenance
of the credit metrics.
Negative: A negative rating action could result from a decline in
the scale of operations and deterioration in the credit metrics.
COMPANY PROFILE
FGPL was incorporated in 2003 by Mr NG. Srinivasan. The company is
into dyeing and printing of garments and fabric processing and is
located in Nanjangud, Mysore.
FAIR N FLAIR: Ind-Ra Hikes Long-Term Issuer Rating to 'IND B+'
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Fair N Flair
Garments' (FNF) Long-Term Issuer Rating to 'IND B+' from 'IND B-'.
The Outlook is Stable.
KEY RATING DRIVERS
The upgrade reflects an improvement in FNF's credit profile in
FY15 along with its steady revenue growth and scheduled repayment
of debt. In FY15, net leverage fell to 9.5x (FY14: 38.0x) and
interest coverage rose to 1.5x (0.4x). Revenue grew 10.3% yoy to
INR916 million in FY15 and EBITDA margins increased considerably
to around 3.7% (FY14: 1.0%).
The ratings remain constrained by the cyclical nature of business
and the high competition faced by the company by being one of the
moderate players in the overall industry.
The ratings benefit from its founders' experience of over two
decades in the manufacturing and exporting of garments.
RATING SENSITIVITIES
Positive: A positive rating action could result from a substantial
increase in the scale of operations along with an improvement in
the credit metrics.
Negative: A negative rating action could result from a decline in
the scale of operations and deterioration in the credit metrics.
COMPANY PROFILE
FNF is a partnership firm incorporated in 1990 by Mr NG.
Srinivasan and Mr N. Moorthy. The company is into the manufacture
and export of garments to European countries.
GARDEN SILK: CARE Assigns 'B' Rating to INR1,063.82cr Term Loan
---------------------------------------------------------------
CARE assigns 'CARE B' and 'CARE A4' ratings to the bank facilities
of Garden Silk Mills Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities
Term loan 1063.82 CARE B Assigned
Long-term Bank Facilities
Fund based working capital
Limits 298.71 CARE B Assigned
Short-term Bank Facilities
Non-fund based working
capital limits 532.00 CARE A4
Rating Rationale
The ratings assigned to the long-term and short-term bank
facilities of Garden Silk Mills limited (GSML) are constrained
due to the continuing declining sales coupled with cash losses
resulting in tight liquidity position of the company, highly
leveraged capital structure, weak debt coverage metrics,
volatility in the raw material prices and limited presence in the
textile value chain amidst increasingly competitive environment.
The ratings, however, derive strength from the promoters
experience in the textile industry and prepayment of debt
obligations due for FY16.
Ability of the company to improve its capacity utilisation and
return to profit amidst intensifying competition are the key
rating sensitivities.
Incorporated in 1979, Garden Silk Mills Limited (GSML) is engaged
in manufacturing of polyester chips, polyester filament yarn and
polyester textile fabrics. It manufactures synthetic fabric under
the brand names, Garden and Vareli. The manufacturing facilities
are located in Vareli (weaving unit) and Jolwa (manufacturing unit
of chips and yarn), in Surat District. As on March 31, 2015, the
company had polyester chips capacity of 5,06,000 metric tonnes per
annum (MTPA) and Polyester Filament Yarn (PFY) capacity of
2,21,061 MTPA -- comprising of 1,58,610 MTPA of Partially Oriented
Yarn (POY) and 62,451 MTPA of Fully Drawn Yarn (FDY).
GSML is promoted by Mr Praful A Shah, a first-generation
entrepreneur. He is also the Chairman and Managing Director
of the company. He has more than four decades of experience in the
industry. He is involved in the strategic decision making process
of the company. He is well supported by his son Mr Alok P. Shah,
promoter and joint managing director in the day-to-day operations
of the company; who also possesses significant experience in the
industry.
GSML is predominantly a domestic player with around 85% of the
gross sales from the domestic market while remaining is in the
form of exports. During FY15 (refers to period April 1 to March
31), GSML generated majority of its gross sales from sale of
polyester filament yarn (including POY and processed yarn)
accounting for 60% of the gross sales, followed by 30% from
polyester chips, 8% from sale of fabrics and remaining from
Purified Terepthalic Acid (PTA), Mono-Ethylene Glycol (MEG), Spin
finish oil, arts and artifacts etc.
For FY15 GSML posted net loss of INR142.76 crore on a total
operating income of INR2,645.73 crore as compared to net loss of
INR144.45 crore on total operating income of INR3,084.75 crore in
FY14.
GUPTA AGENCIES: CRISIL Assigns 'B' Rating to INR62.5MM Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank loan facilities of Gupta Agencies (GA). The ratings reflect
the firm's modest scale of operations in the consumer electronics
industry and below-average financial risk profile because a high
TOLTNW ratio. These weaknesses are partially offset by the
extensive experience of the proprietor in the industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 32.5 CRISIL B/Stable
Electronic Dealer
Financing Scheme
(e-DFS) 62.5 CRISIL B/Stable
Bank Guarantee 5.0 CRISIL A4
Cash Credit 10.0 CRISIL B/Stable
Outlook: Stable
CRISIL believes GA will continue to benefit over the medium term
from the proprietor's extensive industry experience. The outlook
may be revised to 'Positive' in case of significant increase in
sales and profitability leading to more-than-expected accrual
resulting in improvement in its financial risk profile.
Conversely, the outlook may be revised to 'Negative' if GA's
financial risk profile weakens, most likely because of low
profitability or large working capital requirements or debt-funded
capital expenditure.
GA was set up in 1996 by Jaipur-based Gupta family. It is a
proprietorship firm engaged in the wholesale distributorship for
Nikon cameras, Samsung mobiles, Hitachi electronic equipment, and
cleaning equipment for German based company]. The proprietor of
the firm is Mrs. Manju Gupta.
HI-REACH CONSTRUCTION: CARE Ups Rating on INR8.50cr Loan to BB-
---------------------------------------------------------------
CARE revises the LT rating and reaffirms the ST rating of
Hi-Reach Construction Equipments Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 8.50 CARE BB- Revised from
CARE B
Short-term Bank Facilities 0.25 CARE A4 Reaffirmed
Rating Rationale
The revision in the ratings of Hi-Reach Construction Equipments
Private Limited (HRCL) factors in the growth in the scale
of operations, improvement in capital structure, debt service
coverage indicators and operating cycle. The ratings continue to
draw comfort from the experienced promoters and moderate
profitability margins.
The ratings, however, continue to remain constrained on account of
small scale of operations and weak debt protection metrics. The
ratings are further constrained by its exposure to volatility in
raw material prices and dependence on the real estate industry
which is inherently vulnerable to economic cycles.
Going forward, HRCL's ability to scale up its operations while
improving its profitability margins, improvement in its capital
structure along with an effective working capital management shall
be key rating sensitivities.
HRCL was incorporated in September 1992 by Mr Sanjay Mohan Kaul.
The company started commercial operations in October 1992. HRCL is
engaged in the manufacturing of scaffoldings items which find its
application in the construction industry. The company has two
manufacturing plants which are located at Sahibabad, Uttar
Pradesh, and Alwar, Rajasthan. The total combined installed
capacity of both the plants stood at 17,000 metrics tonnes per
annum (MTPA) as on March 31, 2015. HRCL procures raw materials
consisting mainly of cast iron and pipe angles from the domestic
market majorly Punjab, Uttar Pradesh, Rajasthan and Delhi. The
final products are sold in the domestic market on a pan-India
basis to various construction companies. The company is also
engaged into manufacturing and retailing store of home
furnishing, women apparels and accessories such as leather bag,
artificial jewelry, etc, under the brand name of Indian
August in Noida, Uttar Pradesh. The raw material mainly consists
of fabrics, leather, threads, etc, which is procured from
local market and the final products are sold through the retail
store.
For FY15 (refers to the period April 01 to March 31), HRCL
achieved a total operating income (TOI) of INR36.64 crore with
PBILDT and PAT of INR3.43 crore and INR1.32 crore, respectively,
as against TOI of INR15.70 crore with PBILDT and PAT of
INR1.72 crore and INR0.84 crore, respectively, for FY14. The
company has achieved TOI of INR12.75 for H1FY16 (refers to
period April 1 to September 30).
JAY BHARAT: CARE Assigns 'B+' Rating to INR33.65cr LT Loan
----------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank
facilities of Jay Bharat Metcast Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 33.65 CARE B+ Assigned
Long-term/Short-term Bank 20 CARE B+/CARE A4
Facilities Assigned
Rating Rationale
The ratings assigned to the bank facilities of Jay Bharat Metcast
Private Limited (JBMPL) are primarily constrained on account of
modest scale of operations and loss making operations in the
initial years of operation, weak liquidity and debt coverage
indicators along with project implementation and stabilization
risk. The ratings are also constrained on account of customer and
supplier concentration risk, susceptibility to fluctuation in raw
material prices and intense competition from the local rolling
mills and susceptibility to cyclicality of the steel industry.
However, the ratings derive strength from the promoters'
experience and group entity support, JBMPL's moderate capital
structure and its association with a reputed brand which has an
established marketing network.
The ability of JBMPL to increase its scale of operations along
with improvement in its overall financial risk profile are the
key rating sensitivities. Furthermore, timely completion of the
project, JBMPL's ability to capitalize the same into existing
operations and continuous support from the promoters till the time
overall operations stabilize would also remain crucial.
JBMPL was incorporated in July 2012 by Mr Mukesh R Thakur and Mr
Rakesh R Thakur and other accompanied directors. JBMPL started
commercial production in August 2013 with manufacturing of steel
billets which was later discontinued in June 2014. Since June
2014, it has started manufacturing Thermo Mechanically Treated
(TMT) Bars. The company has its manufacturing facility located at
Valsad, Gujarat with an installed capacity of 6,000 Metric Tonnes
Per Month (MTPM) for TMT Bars as on November 17, 2015. The main
raw materials for manufacturing TMT bars areMild Steel (MS) ingots
which are procured domestically. JBMPL sells its product to the
clients all across South Gujarat and Maharashtra.
The company markets TMT bars under the brand name of 'Kamdhenu'
and for the same it has entered into retail license agreement
during April 2014 with Kamdhenu Ispat Ltd. (KIL) to use its
trademark for the purpose of manufacture and trade of TMT bars for
a period of 3 years and pay royalty for the same.
As per audited results for FY15, JBMPL incurred a net loss of
INR6.07 crore on a total operating income of INR59.33 crore as
against a net loss of INR6.70 crore on a TOI of INR33.58 crore in
FY14. Furthermore, JBMPL has achieved a TOI of INR36.90 till
November 18, 2015.
JAYANTHI EXPORTS: CRISIL Cuts Rating on INR65MM ST Loan to 'D'
--------------------------------------------------------------
CRISIL has downgraded its rating on the short-term bank facilities
of Jayanthi Exports (JE) to 'CRISIL D' from 'CRISIL A4', and has
placed the rating on 'Notice of Withdrawal' for a period of 180
days on the firm's request. The ratings will be withdrawn at the
end of the notice period, in line with CRISIL's policy on
withdrawal of its ratings on bank loans.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Packing Credit 25 CRISIL D (Downgraded from
'CRISIL A4'; Placed on
'Notice of Withdrawal')
Post Shipment Credit 30 CRISIL D (Downgraded from
'CRISIL A4'; Placed on
'Notice of Withdrawal')
Proposed Short Term 65 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL A4'; Placed on
'Notice of Withdrawal')
The rating downgrade reflects JE's continuously overdrawn cash
credit account over the past three months on account of weak
liquidity.
Established in 2010, JE processes and exports vegetables and other
agricultural commodities. The firm, based in Chennai, is promoted
by Mr. K Ravindran and his wife Mrs. R Jayanthi.
KELTECH INFRASTRUCTURE: CRISIL Cuts Rating on INR100MM Loan to D
----------------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of
Keltech Infrastructure Ltd (KIL) to 'CRISIL D' from 'CRISIL
B/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 100 CRISIL D (Downgraded from
'CRISIL B/Stable')
The rating downgrade reflects delay by KIL in servicing its term
debt repayment obligation. The delay has been caused by weak
liquidity and stretch in working capital cycle.
KIL is exposed to inherent risks and cyclicality in India's real
estate sector, and susceptibility to project-related risks and
geographical concentration in revenue. However the company
benefits from the extensive experience of its promoters in the
real estate industry.
Set up by Mr. Narendra Kumar in 2010, KIL is part of the Kumar
group. The company undertakes real estate construction and
development, mainly in and around Ghaziabad (Uttar Pradesh). It
has two on-going projects in Ghaziabad: Golf Vista in Crossing
Republic Township on National Highway 24, and Kumar Imperial
Greens in Greater Noida West Township. A third project, Keltech
Rize, is also on the drawing board.
KOMARLA HATCHERIES: Ind-Ra Assigns 'IND B+' LT Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Komarla
Hatcheries (KH) a Long-Term Issuer Rating of 'IND B+'. The Outlook
is Stable.
KEY RATING DRIVERS
The ratings reflect KH's negative EBITDA of INR15m in FY15 (FY14:
INR80m). The firm is exposed to sharply fluctuating realisations
due to a wide supply-demand disparity in the poultry industry and
high production costs. Also, its scale of operations is small with
top line of INR735m in FY15 (FY14: INR791m). Ind-Ra expects the
revenue to remain muted but EBITDA to grow substantially year-on-
year in FY16, due to better realisations since 2QFY16, leading to
interest coverage exceeding 1.5x (FY15: negative 0.6x).
The firm's liquidity profile is comfortable with 91% average
maximum working capital utilisation over the 12 months ended
October 2015.
The ratings are supported by the firm's established track record
of over 40 years and over 50 years of experience of its promoters
in the poultry industry.
RATING SENSITIVITIES
Positive: Substantial revenue growth while generating positive
EBITDA margins leading to a sustained improvement in the credit
metrics could be positive for the ratings.
Negative: Further deterioration in the revenue along with negative
EBITDA margins could be negative for the ratings.
COMPANY PROFILE
KH is a Bangalore-based partnership firm involved in poultry
business in Karnataka, Tamil Nadu and Kerala.
KRITIKA ENTERPRISES: CRISIL Cuts Rating on INR80MM Loan to 'D'
--------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facility of
Kritika Enterprises (KRE) to 'CRISIL D' from 'CRISIL B/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 80 CRISIL D (Downgraded from
'CRISIL B/Stable')
The downgrade reflects instances of delay by KRE in meeting its
debt obligations because of weak liquidity.
KRE has a low operating margin on account of trading business, and
weak financial risk profile because of small networth and weak
debt protection metrics. However, the firm benefits from its
promoters' extensive experience in the steel industry and its wide
product range.
KRE, based in Jamshedpur (Jharkhand), trades in iron and steel
products such as iron rod ingots, pig iron, sponge iron, polled
iron, sulphur, hot-rolled coils, and cold-rolled coils. Mr.
Amarnath Singh, Mr. Uday Sankar Prasad, Mr. Suresh Kumar Sharma,
and Mrs. Rita Gupta are partners in the firm and manage its
operations.
KRUPADEEP TRADERS: CARE Assigns 'B' Rating to INR1.50cr LT Loan
---------------------------------------------------------------
CARE assigns 'CARE B' and 'CARE A4' ratings to the bank facilities
of Krupadeep Traders.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 1.50 CARE B Assigned
Short-term Bank Facilities 7.75 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Krupadeep Traders
(KDT) are constrained by decline in income from operations in FY15
(refers to the period April 1 to March 31) due to stalled business
operations for substantial part of the year on account of ban on
mining of bauxite by the Government, high susceptibility to
Government's policy on export of bauxite and customer
concentration risk with single customer contributing majority to
the total operating income. The ratings are further constrained by
the proprietorship nature of constitution limiting the financial
flexibility of the firm. The ratings, however, derive strength
from experienced management and long track record of the firm.
The ability of the firm to continue its business operations on the
back of adverse government policies regarding bauxite mining and
export is the key rating sensitivity.
Krupadeep Traders (KDT) was established as a proprietorship
concern in 1987 by Mrs Lalita Dinesh Trikannad. The firm is
engaged in trading of bauxite. The firm sells bauxite to domestic
customers located in and around Goa and also exports to Russia,
China and Japan.
KDT has two sister concerns namely Deep Mining (DM) and Krupadeep
Transportation Company (KTC). DM is engaged in mining of bauxite
and selling the same to KDT. DM has taken on lease a bauxite mine
located near Kolhapur owned by Swati Minerals (SM). SM is managed
by Golandaj family of Kolhapur. As per the lease agreement, SM
receives royalty from DM for the leased mines. However, due to
imposition of ban by Government on mine owned by SM, the mining
operations of DMare stalled and has shifted to providing
machineries used for mining on rent.
KDT used to procure majority of bauxite from its group company,
DM. However, due to ban on mining carried by SM (banned
temporarily in FY12 and permanently in FY15), the firm has entered
into a contract with Kerala Clays & Ceramics Products Limited
(KCPL) for purchase of bauxite. However, there is ban on mining of
bauxite in Kerala since August 2014. This resulted in stalled
business operations for the firm since August 2014 to October
2015. However, the business operations of the firm started from
November 2, 2015. Currently, the firm is procuring bauxite from
Warna Minerals Private Limited (WMPL).
MAKCUR LABORATORIES: Ind-Ra Assigns IND B- LT Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Makcur
Laboratories Limited (Makcur) a Long-Term Issuer Rating of 'IND
B.' The Outlook is Stable.
KEY RATING DRIVERS
The ratings reflect Makcur's weak credit profile with EBITDA
interest coverage of 0.7x and net leverage (net debt/EBITDA) of
25.5x in FY15. Also, its scale of operations is small with revenue
of INR139m, while its EBITDA margins were low at 5.3%.
Liquidity is comfortable as indicated by 86.2% average maximum
fund-based limit utilisation during the 12 months ended October
2015.
The ratings are supported by the nearly two decades of experience
of the company's founders in the pharmaceutical business.
RATING SENSITIVITIES
A positive rating action could result from a substantial increase
in the scale of operations along with an improvement in the
profitability leading to an overall improvement of the credit
metrics.
COMPANY PROFILE
Incorporated in 1996, Gandhinagar-based Makcur manufactures and
markets small volume parenteral, powders & liquids.
Makcur's ratings:
-- Long-Term Issuer Rating: assigned 'IND B-'/Stable
-- INR69 million Term loan: assigned 'IND B-'/Stable
-- INR80 million Fund-based limits: assigned 'IND B-'/Stable and
IND A4
-- INR22.5 million Non-fund-based limits: assigned 'IND A4'
-- INR0.75 million Forward contract: assigned 'INR A4'
MANSAROVER ROLLER: CARE Reaffirms B+ Rating on INR5.60cr LT Loan
----------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Mansarover Roller Flour Mills Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 5.60 CARE B+ Reaffirmed
Rating Rationale
The rating assigned to the bank facilities of Mansarover Roller
Flour Mills Private Ltd (MRL) is primarily constrained by its
small scale of operations with low net worth base, weak financial
risk profile marked by low profitability margins, weak debt
coverage indicators and working capital intensive nature of
operations. The rating is further constrained by the
susceptibility of operations to fluctuations in raw material
prices and presence of the company in a fragmented agroprocessing
industry characterized by a high level of government regulation.
The rating, however, derives strength from the long track record
of operations of MRL, experienced management team and moderate
capital structure.
Going forward, the ability of the company to increase its scale of
operations along with improvement in profitability margins &
solvency position and effective working capital management would
be the key rating sensitivities.
Mansarover Roller Flour Mills Private Limited (MRL) was
incorporated in 1989 and is currently being managed by Mr
Amrik Singh and Mr Kamaljeet Singh. The company is engaged in the
processing of wheat with an installed capacity of 36,500 metric
tonnes per annum (MTPA) at its manufacturing facility located in
Samrala, Punjab. MRL sells wheat flour to retailers and
wholesalers mainly in Punjab and Himachal Pradesh while the
refined flour (maida) is sold to institutional customers under the
brand 'Neel Kamal' and 'Brasno'. MRL procures the raw material
i.e. wheat on cash basis from various sources like local grain
markets, Food Corporation of India (FCI) and also directly
fromfarmers.
MRL reported a net profit of INR0.02 crore on a total income of
INR10.36 crore in FY15 (refers to the period April 1 to March 31)
as against the net profit of INR0.05 crore on a total income of
INR15.51 crore in FY14. In FY16 (as per unaudited results), MRL
has reported a total operating income of INR5.30 crore till
November15, 2015.
NEMI CHEM: CRISIL Reaffirms B+ Rating on INR20MM Cash Loan
----------------------------------------------------------
CRISIL's ratings on the bank facilities of Nemi Chem (NC) continue
to reflect its below-average financial risk profile, with a high
total outside liabilities to tangible net worth ratio, and average
interest coverage ratio.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 20 CRISIL B+/Stable (Reaffirmed)
Letter of Credit 60 CRISIL A4 (Reaffirmed)
Proposed Long Term
Bank Loan Facility 10 CRISIL B+/Stable (Reaffirmed)
The ratings also factor in the firm's improved yet modest scale of
operations, constrained profitability, and high working capital
intensity. These rating weaknesses are partially offset by the
promoters' extensive experience in the chemical trading business
and established relations with customers and suppliers.
Outlook: Stable
CRISIL believes NC will continue to benefit over the medium term
from the promoters' extensive industry experience and established
relations with customers and suppliers. The outlook may be revised
to 'Positive' if sustainable growth in accrual, or any capital
infusion strengthens key credit metrics. Conversely, the outlook
may be revised to 'Negative' if liquidity weakens because of dip
in profitability or stretch in working capital cycle.
NC, set up in July 2009, trades in chemicals such as titanium
dioxide, synthetic camphor, polyvinyl alcohol, and sodium
glucomate. The firm is owned by Mr. Jiten Shah and his wife, Mrs.
Dipti Shah. The promoter family has been in the chemical trading
business for over four decades.
ONE STOP: CRISIL Reaffirms 'B' Rating on INR80MM Term Loan
----------------------------------------------------------
CRISIL's rating on the long-term bank facility of One Stop
Entertainment Private Limited (OSEPL) continues to reflect the
company's exposure to stabilization and demand risks for its
ongoing project and to cyclicality in the hospitality industry.
These rating weaknesses are partially offset by the
entrepreneurial experience of the promoter, and the expected
benefits from the favorable location of its up-coming resort.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 80 CRISIL B/Stable (Reaffirmed)
For arriving at the rating, CRISIL has treated INR16.7 million of
interest-free unsecured loans from the promoter's family and
friends as neither debt nor equity, as these funds are expected to
remain in the business over the long term.
Outlook: Stable
CRISIL believes that OSEPL will continue to benefit over the
medium term from the promoter's entrepreneurial experience. The
outlook may be revised to 'Positive' if the company successfully
commercialises and stabilises its operations together with higher
than expected revenues and accruals. Conversely, the outlook may
be revised to 'Negative' in case of time or cost overrun in
setting up its ongoing project, or lower than expected cash
accruals leading to weakening of its liquidity profile.
Incorporated in 2010, OSEPL is setting up a resort-cum-
entertainment centre on the outskirts of Bhopal (Madhya Pradesh).
The promoter, Mr. Avneet Singh Marwaha, oversees OSEPL's daily
operations.
PREMIUM FOODS: CRISIL Reaffirms 'B+' Rating on INR100MM LT Loan
---------------------------------------------------------------
CRISIL's rating on the long term bank facilities of Premium Foods
(PF) continues to reflect the firm's below average financial risk
profile, marked by its modest net worth and high total outside
liabilities to tangible net-worth ratio, and susceptibility of its
operating margins to intense competition in the cashew processing
business. These rating weaknesses are partially offset by the
promoters' long standing industry experience and efficient working
capital management.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 80 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 100 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that PF will continue to benefit from its
promoters extensive industry experience and established relations
with customers. The outlook may be revised to 'Positive' if there
is a substantial and sustained improvement in the firm's revenues
and profitability margins from the current levels or if there is
substantial increase in net-worth on the back of equity infusion
from promoters. Conversely, the outlook may be revised to
'Negative' if there is a steep decline in the company's
profitability margins from the current levels or if there is a
significant deterioration in its capital structure on account of
larger-than-expected working capital requirements.
Established in 2001 by Mr. Chetan Dalal and his wife Mrs. Shradha
Dalal, PF is a Mumbai based partnership firm that processes and
trades in cashew nuts.
PUNE BUILDTECH: CARE Reaffirms 'D' Rating on INR286cr LT Loan
-------------------------------------------------------------
CARE reaffirms ratings assigned to bank facilities of Pune
Buildtech Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 286 CARE D Reaffirmed
Rating Rationale
The rating of the bank facilities of Pune Buildtech Private
Limited (PBPL) continue to factor in the ongoing delays in
servicing of debt obligations by the company on account of its
constrained liquidity position.
PBPL is a wholly-owned subsidiary of Marine Drive Hospitality &
Realty Pvt Ltd (MDHRPL), formerly known as DB Hospitality Pvt.
Ltd. MDHRPL is a private limited company incorporated with an
object of setting up chain of hotels across the country under five
star deluxe, five star, four star categories and construction of
real estate buildings. MDHRPL has been promoted by the DB group, a
diversified business group in India with interests in real estate
and hospitality and currently operates two hotel properties.
PBPL is developing a project 'DB Solitaire' with both residential
and commercial use near Pune Airport. PBPL had initial plans to
develop a residential project but to tap in the demand for the
commercial space; PBPL is developing the project as a mix use -
residential and commercial. Due to this change, the total saleable
area potential of the project has reduced to 5.76 lsf from 6.1 lsf
envisaged earlier. The project building consists of one tower
having two wings -- one residential and other commercial of 18
floors each. Total number of units for sale is 380.
RADHA STEEL: Ind-Ra Affirms Long-Term Issuer Rating at 'IND BB-'
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Radha Steel's
(RS) Long-Term Issuer Rating at 'IND BB-'. The Outlook is Stable.
The agency has also affirmed the company's INR300 million fund-
based working capital limits at Long-term 'IND BB-' with a Stable
Outlook and Short-term 'IND A4+'.
KEY RATING DRIVERS
The affirmation reflects RS' continued moderate financial and
credit profile. In FY15, revenue was INR2,497.3 million (FY14:
INR1,935.5 million), net leverage (Ind-Ra adjusted net
debt/operating EBITDAR) was 6.1x (FY14: 6.0x) and EBITDA interest
cover was 1.4x (1.6x). The marginal fall in credit metrics in FY15
was due to a decline in EBITDA margins to 1.8% (FY14: 2.0%) on
volatile end-product prices. Moreover, the total debt increased to
INR285.4 million in FY15 (FY14: INR240.9 million) and therefore
interest expenses grew to INR32.4 million (INR23.8 million).
The ratings continue to factor in the partnership structure of
organisation, and intense competition and low entry barriers which
are characteristic features of a trading business. Liquidity
remained moderate as reflected in over 90% utilisation of RS'
working capital limits for the 12 months ended November 2015.
The ratings, however, benefit from over two decades of experience
of RS' founders in the steel industry. Also, its founders are
capable of supporting the firm's working capital requirements
through unsecured loans.
RATING SENSITIVITIES
Positive: A sustained improvement in the revenue while maintaining
or improving the profitability, credit metrics and liquidity will
be positive for the ratings.
Negative: A sustained decline in the revenue, rise in the margin
pressures or deterioration in the credit metrics and liquidity
will be negative for the ratings.
COMPANY PROFILE
RS trades in steel products including mild steel rods, sheets,
scrap, structural, and sponge iron.
RAMA CONSTRUCTION: Ind-Ra Assigns 'IND BB+' LT Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Rama
Constructions Company (RCC) a Long-Term Issuer Rating of 'IND
BB+'. The Outlook is Stable.
KEY RATING DRIVERS
The ratings reflect RCC's low-to-moderate scale of operations with
revenue of INR2,072 million in FY15 (FY14: INR880 million) and low
EBITDA margins of 6.46% (6.90%). The ratings also reflect RCC's
nature of business which has high susceptibility to government
regulations and availability of tenders/projects; any adverse
change in the policy could hamper the operations severely. The
ratings also factors in the partnership structure of the
organisation. RCC's current order book position stands at INR2,853
million.
However, the ratings are supported by RCC's comfortable credit
metrics in FY15 with interest coverage (operating EBITDA/gross
interest expense) at 4.59x (FY14: 4.77x) and financial leverage
(total Ind-Ra adjusted debt/operating EBITDAR) of 0.76x (0.89x).
The ratings are further supported by RCC's comfortable liquidity
as reflected in its nearly 81% average utilisation of the working
capital limits during the 12 months ended November 2015 coupled
with a negative working capital cycle. The ratings also draw
comfort from the firm's established track record of over four
decades in civil construction work.
RATING SENSITIVITIES
Positive: The strengthening of order book position leading to an
improvement in the revenue while sustaining the credit metrics
will be positive for the ratings.
Negative: A decline in the revenue due to the lack of work orders
or deterioration in the EBITDA margins leading to weaker credit
metrics will be negative for the ratings.
COMPANY PROFILE
RCC was established in 1972. It is engaged in contract-based
construction work mainly for organisations such as Central Public
Works Department, Delhi Public Works Department, National Building
Construction Corporation, Municipal Corporation of Delhi, and
various central and state government bodies. RCC has executed
various construction works for Common Wealth Games (2010) along
with other reputed projects. RCC is CPWD Class-I (B&R) since 1990
and MCD Class-IA (B&R) since 1981.
RANCHHOD OILMILL: CARE Assigns B+ Rating to INR9.50cr LT Loan
-------------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank
facilities of Ranchhod Oilmill Co.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 9.50 CARE B+ Assigned
Short-term Bank Facilities 0.40 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Ranchhod Oil Mill
Co. (ROMC) are constrained an account of its thin profitability
owing to low value addition nature of operations, volatility in
operations arising from its dependence on agrocommodity prices &
availability and stretched liquidity. The ratings are further
constrained by its presence in a highly fragmented agro commodity
trading/processing industry, foreign exchange fluctuation risk
associated with exports and risk of capital being withdrawn due to
partnership nature of constitution.
The ratings, however, continue to derive strength from the
experience of its partners and proximity to the key raw
material source.
ROMC's ability to increase its scale of operations along with
improvement in its profitability in light of the volatile
agrocommodity prices and improvement in capital structure would be
the key rating sensitivities.
Setup in 1997, ROMC is a partnership firm formed by partners Mr.
Jeram Gami and Mr. Bharat Gami (with equal profit and loss
sharing) for undertaking processing and trading of agro products
like groundnut, cumin seed, husk and sesame seed, etc. The firm
generates majority of its income from export to countries like
Philippines, China, Gulf countries etc.
ROMC's sole processing facility is located in Keshod region of
Gujarat. The firm operates with installed processing capacity
of 37000 metric tonne per annum (MTPA).
As per the audited results for FY15 (refers to the period of
April 1 to March 31), ROMC reported a total operating income
of INR112.81 crore (FY14: INR66.16 crore) and PAT of INR0.71 crore
(FY14: INR0.20 crore).
REGAL TRANSCORE: CRISIL Ups Rating on INR87.5MM Loan to B
---------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Regal Transcore Laminations Private Limited (part of the Udasee
group) to 'CRISIL B/Stable' from 'CRISIL B-/Stable' reaffirmed its
rating on the short-term bank facilities at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bill Discounting 20 CRISIL A4 (Reaffirmed)
Cash Credit 87.5 CRISIL B/Stable (Upgraded
from 'CRISIL B-/Stable')
Letter of Credit 110.0 CRISIL A4 (Reaffirmed)
Proposed Long Term 30.0 CRISIL B/Stable (Upgraded
Bank Loan Facility from 'CRISIL B-/Stable')
The upgrade reflects CRISIL's belief that the Udasee group's
business risk profile will continue to improve over the medium
term because of sustained increase in demand for its products.
Operating income increased 53 percent to INR900 million in 2014-15
(refers to financial year, April 1 to March 31) from INR590
million in 2013-14on account of increase in demand of products and
is expected at INR980 million in 2015-16.
The upgrade also factors in improvement in working capital
management. Receivables improved to 111 days as on March 31, 2015,
from 162 days as on March 31, 2014, and are expected to improve
over the medium term. The group now sells largely against usance
letters of credit of 60-90 days, leading to improvement in debtor
realisation cycle. Also, it is making efforts to reduce inventory,
which is expected to decline to 80 days as on
March 31, 2016, from 102 days as on March 31, 2013. CRISIL expects
the Udasee group's working capital cycle to continue to improve
over the medium term.
The ratings reflect modest financial risk profile because of high
total outside liabilities to tangible networth (TOLTNW) ratio, and
subdued debt protection metrics and networth. The ratings also
factor in exposure to intense competition in the electrical
laminations segment for power transformers. These weaknesses are
partially offset by promoters' extensive industry experience.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of USSPL and associate company Regal
Transcore Laminations Pvt Ltd (RGTLPL). This is because the two
companies, together referred to as the Udasee group, have common
promoters and management, are in the same line of business, and
have strong operational linkages.
Outlook: Stable
CRISIL believes the Udasee group will continue to benefit over the
medium term from established relationships with suppliers and
customers. The outlook may be revised to 'Positive' if financial
risk profile improves, most likely driven by sizeable equity
infusion or larger-than-expected cash accrual or significant
improvement in working capital management. Conversely, the outlook
may be revised to 'Negative' if liquidity weakens, most likely
because of increase in working capital requirement or a decline in
operating profitability.
RGTLPL was established as a proprietary firm (Regal Laminator) in
1988 and was incorporated as a private limited company with its
current name in 1998. USSPL was incorporated in 1993. The two
companies are promoted by Jaipur-based Udasi family. Their plants
are in Jaipur.
The Udasee group manufactures electrical laminations for
transformers. It sells primarily to transformer manufacturers,
which supply to state electricity boards.
SAKRAT TEXFAB: CARE Revises Rating on INR8.84cr LT Loan to 'B'
--------------------------------------------------------------
CARE revises the ratings assigned to bank facilities of
Sakrat Texfab Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 8.84 CARE B Suspension
revoked and rating
revised from CARE D
Long-term/Short-term Bank 0.40 CARE B/CARE A4
Facilities Suspension revoked
and rating revised
from CARE D/CARE D
Rating Rationale
The revision in the ratings assigned to the bank facilities of
Sakrat Texfab Private Limited (STPL) was primarily on account
of satisfactory debt servicing for the past three months ended
November 30, 2015 owing to generation of cash profits and
stabilization of operations led by completion of the yarn warping
and sizing project in FY15 (refers to the period April 1to March
31). The ratings continue to draw strength from the experienced
and resourceful promoters and its presence in the textile hub.
The ratings, however, continue to remain constrained on account of
its short track record and small scale of operations in highly
fragmented textile industry coupled with weak financial risk
profile marked by loss reported during initial years of
operations, moderately leveraged capital structure, debt coverage
indicators and liquidity position.
The ability of STPL to increase its scale of operations coupled
with improving its profit margins, capital structure and debt
coverage indicators via efficient working capital management are
the key rating sensitivities.
Incorporated in 2013, STPL is engaged in sizing and warping of
yarn, which is done by applying a gelatinous film composed
of textile wax, starch and polymers on the yarn in order to bind
the fiber and stiffen the yarn to avoid breakages in yarn
and thus make it weavable. STPL is promoted by Mr Jagdish Patel
and Mr Satish Patel along with seven other promoters.
STPL completed its sizing and warping project having a capacity of
processing 31.43 lakh kg per annum in May 2014 and commenced
commercial production from September, 2014. The sole plant of STPL
is located at Chhatral, near Gandhinagar.
During FY15, STPL reported a total operating income (TOI) of
INR7.91 crore with a net loss of INR0.05 crore. Furthermore,
during H1FY16 (Provisional), STPL achieved a TOI of INR5.20 crore.
SAMRUDH PHARMACARE: CRISIL Assigns B- Rating to INR105MM Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable' rating to the long-term
bank facility of Samrudh Pharmacare Private Limited (SPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 105 CRISIL B-/Stable
The rating reflects SPL's stretched liquidity with cash accrual
expected to be inadequate to meet debt obligation, and a below-
average financial risk profile because of a small net worth, high
gearing and weak debt protection metrics. The rating is also
constrained by the small scale of operations, customer
concentration in the revenue profile, and exposure to intense
competition in the pharmaceutical formulations segment. These
rating weaknesses are partially offset by the extensive experience
of promoters in the pharmaceutical industry, and the company's
efficient working capital management.
Outlook: Stable
CRISIL believes SPL will benefit over the medium term from the
promoters' extensive industry experience. The outlook may be
revised to 'Positive' if there is a substantial and sustained
increase in profitability, or substantial improvement in liquidity
on the back of sizeable equity infusion by the promoters.
Conversely, the outlook may be revised to 'Negative' in case of a
steep decline in profitability margins, or significant weakening
of the liquidity caused most likely by a large, debt-funded
capital expenditure or a stretch in the working capital cycle.
SPL (formerly known as Samrudh Packaging Pvt Ltd) was set up in
1995 by Mr. Sharad Sheth, Mr. Piyush Shah, Mr. Alok Sheth and Mr.
J C D'Souza. The company manufactures external-application
pharmaceutical products such as ointments and creams. It is
headquartered in Mumbai, and its manufacturing facility is in
Tarapur, Maharashtra.
SHANKAR AGRO: CARE Reaffirms B+ Rating on INR7cr Cash Loan
----------------------------------------------------------
CARE reaffirms/withdraws the rating assigned to the bank
facilities of Shankar Agro Food.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities
(Cash credit) 7 CARE B+ Reaffirmed
Rating Rationale
The rating assigned to the bank facilities of Shankar Agro Food
(SAF) continues to remain constrained by its small, though
growing, scale of operations with low net worth base and weak
financial risk profile marked by low profitability margins,
leveraged capital structure, weak coverage indicators and working
capital intensive nature of operations. The ratings are also
constrained by the partnership nature of constitution,
susceptibility of profitability margins to fluctuation in raw
material prices, monsoon dependent operations and fragmented
nature of the industry coupled with high level of government
regulations. The rating, however, derives strength from the
reasonable experience of the partners in processing of paddy.
Going forward, the ability of the firm to profitably increase its
scale of operations while improving its solvency position and
managing the working capital requirements efficiently would remain
the key rating sensitivities.
Shankar Agro Food (SAF) was initially established as a
proprietorship firm in 2005 and later, the constitution was
changed to a partnership firm in April 2009. The firm is currently
having four partners, viz., Mr Kewal Krishan, Mr Bal Krishan, Mr
Jagdish Rai and Mr Raghav Garg having profit and loss in the ratio
4:4:1:1. The firm is engaged in the processing of paddy and also
does the same on a job work basis for other rice millers, at its
manufacturing facility located in Moga, Punjab, with total
installed capacity of 64,000 metric ton per annum (MTPA), as
onMarch 31, 2015. The main raw material for the firm is paddy,
which is procured from dealers and agents from the states of
Haryana and Punjab. The firm sells its products, both basmati and
non-basmati rice, in the states of Delhi, Haryana and Punjab
through a network of commission agents and traders. SAF has a
group concern by the name Shankar Rice & General Mills which is a
partnership firm established in 2000 and engaged in processing of
paddy. The firm is currently being managed by Mr Kewal Krishan, Mr
Bal Krishan, Mr Jagdish Rai and Mr Raghav Garg. Additionally the
partners had also established another firm M/s Luxmi Rice and
General Mills, the operations of which discontinued in the year
2000.
For FY15 (refers to the period April 1 to March 31), SAF reported
a total income of INR33.69 crore with PAT of INR 0.27 crore
against the total operating income achieved INR8.99 crore with PAT
of INR0.10 crore in FY14. Furthermore, the firm has achieved total
sales of INR8.12 crore (Unaudited) till Nov. 15, 2015.
SHREE BABA: CRISIL Assigns 'B' Rating to INR120MM Cash Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facility of Shree Baba Exports (SBE). The rating reflects
SBE's modest scale of operations in highly fragmented menthol
crystals industry and weak financial profile because of high
gearing. These weaknesses are mitigated by the promoters'
experience in the menthol industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 120 CRISIL B/Stable
Outlook: Stable
CRISIL believes SBE will maintain its business risk profile backed
by its promoters experience in the menthol industry. The outlook
may be revised to 'Positive' if capital structure improves either
by equity infusion or higher-than-expected cash accrual, backed by
increased scale of operations or better working capital
management. Conversely, the outlook may be revised to 'Negative'
if financial risk profile weakens owing to decline in revenue and
profitability or a larger-than-expected, debt-funded capital
expenditure, or if liquidity degraded due to large working capital
requirement.
SBE was established in 1980 as a partnership firm, Shree Baba
Enterprises, by Mr. Ramesh Agarwal and Ms. Batsoo Devi. Later, in
2000 the firm was converted into the proprietorship firm and got
its current name. The firm manufactures menthol crystals and
trades in essential oils, used in pharmaceuticals, perfume
compounds and toothpastes. The firm is actively managed by Mr.
Raghav Aggarwal.
SHREE VAISHNAV: CRISIL Cuts Rating on INR670.3MM Loan to D
----------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Shree Vaishnav Casting Private Limited (SVCPL) to 'CRISIL D/CRISIL
D' from 'CRISIL BBB+/CRISIL A2. The ratings have been removed from
developing watch.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 80 CRISIL D (Downgraded from
'CRISIL A2; Removed from
'Rating Watch with Developing
Implications')
Cash Credit 470 CRISIL D (Downgraded from
'CRISIL BBB+; Removed from
'Rating Watch with Developing
Implications')
Letter of Credit 420 CRISIL D (Downgraded from
'CRISIL A2; Removed from
'Rating Watch with Developing
Implications')
Proposed Short Term 309.7 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL A2; Removed from
'Rating Watch with Developing
Implications')
Standby Line of 50.0 CRISIL D (Downgraded from
Credit 'CRISIL BBB+; Removed from
'Rating Watch with Developing
Implications')
Term Loan 670.3 CRISIL D (Downgraded from
'CRISIL BBB+; Removed from
'Rating Watch with Developing
Implications')
The downgrade reflects instances of delay by SVCPL in servicing
its term debt and irregularity in its cash credit and letter of
credit accounts, which has remained unpaid for more than 30 days.
The delays are on account of weak liquidity, resulting from sharp
slowdown in offtake and absence of funding support from group
entities, which were earlier consolidated while arriving at the
ratings. A family partition led to change in management of the
group entities and hence, there has been no funding support
envisaged earlier.
CRISIL had, on September 22 2015, placed the ratings on Watch with
Developing Implications due to partition of the family businesses,
and pending clarity on the revised structure.
SVCPL is also exposed to risks arising from the large ongoing
capital expenditure and from slowdown in offtake by the end-user
industry. These weaknesses are partially offset by the promoters'
extensive experience in the steel industry.
SVCPL, incorporated in 2007, manufactures mild steel billets. The
company has its manufacturing facilitates in Nashik (Maharashtra)
and registered office in Mumbai (Maharashtra). SVCPL is also
setting up a rolling mill in Nashik.
SHREE VAISHNAV METAL: CRISIL Cuts Rating on INR312.7M Loan to D
---------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Shree Vaishnav Metal and Power Private Limited (SVMPPL) to 'CRISIL
D/CRISIL D' from 'CRISIL BBB+/CRISIL A2/Rating Watch with
Developing Implications'. The ratings have been removed from
developing watch.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 10 CRISIL D (Downgraded from
'CRISIL A2; Removed from
'Rating Watch with Developing
Implications')
Cash Credit 150 CRISIL D (Downgraded from
'CRISIL BBB+; Removed from
'Rating Watch with Developing
Implications')
Letter of Credit 100 CRISIL D (Downgraded from
'CRISIL A2; Removed from
'Rating Watch with Developing
Implications')
Proposed Long Term 312.7 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL BBB+; Removed from
'Rating Watch with Developing
Implications')
Term Loan 227.3 CRISIL D (Downgraded from
'CRISIL BBB+; Removed from
'Rating Watch with Developing
Implications')
The downgrade reflects instances of delay by SVMPPL in servicing
its term debt and irregularity in its cash credit and letter of
credit accounts, which has remained unpaid for more than 30 days.
The delays are on account of weak liquidity, resulting from sharp
slowdown in offtake and absence of funding support from group
entities, which were earlier consolidated while arriving at the
ratings. A family partition led to change in management of the
group entities and hence, there has been no funding support
envisaged earlier.
CRISIL had, on September 21, 2015, placed the ratings on Watch
with Developing Implications due to partition of the family
businesses, and pending clarity on the revised structure.
SVMPPL is also exposed to risks arising from the large ongoing
capital expenditure and from slowdown in offtake by the end-user
industry. These weaknesses are partially offset by the promoters'
extensive experience in the steel industry.
SVMPPL, incorporated in 2005 by the Agarwal family, is engaged in
galvanisation and fabrication. Its manufacturing facilitates are
in Wada (Maharashtra) and registered office is in Mumbai.
SHRI SAMARTH: CARE Assigns 'D' Rating to INR9.76cr Loan
-------------------------------------------------------
CARE assigns 'CARE D' rating to the bank facilities of Shri
Samarth Paper and Board Mill.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 9.76 CARE D Assigned
Rating Rationale
The rating assigned to the bank facilities of Shri Samarth Paper
and Board Mill (SMPBM) is constrained by delays in servicing of
debt on account on of delay in commencement of commercial
production.
Establishing a track record of timely servicing of debt
obligations is the key rating sensitivity.
Shri Samarth Paper and Board Mill (SSPBM) was established in the
year 2006 by Mr Vijay Arjundas Gurwada, Mr Rajkumar A. Gurwada, Mr
Pandurang V. Vernekar and Dinesh P. Vernekar. Later in the year
2008, Mr Pandurang V. Vernekar and Dinesh P. Vernekar, partners
retired from the partnership andMr Aman R. Gurwada, Mr Akhil V
Guruwada and Mr Anuj V Gurwada joined as partners. SSPBM is
engaged in manufacturing of paper and paper boards at its facility
located at Kondi, Solapur. SSPBM was incorporated in 2006; however
the manufacturing activity was started from May, 2015. SSPBM's
products are consumed by corrugated box manufacturers,
manufacturers of paper cone, paper tubes, paper drums, duplex
boxes and office files, etc. Currently, the company has installed
capacity of 1500 tons per month of paper & paper board
manufacturing.
UDASEE STAMPINGS: CRISIL Ups Rating on INR72.5MM Cash Loan to B
---------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Udasee Stampings Pvt Ltd (USSPL; part of the Udasee group) to
'CRISIL B/Stable' from 'CRISIL B-/Stable', and reaffirmed its
rating on the short-term bank facilities at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bill Discounting 20 CRISIL A4 (Reaffirmed)
Cash Credit 72.5 CRISIL B/Stable (Upgraded
from 'CRISIL B-/Stable')
Letter of Credit 90.0 CRISIL A4 (Reaffirmed)
Proposed Long Term 30.0 CRISIL B/Stable (Upgraded
Bank Loan Facility from 'CRISIL B-/Stable')
The upgrade reflects CRISIL's belief that the Udasee group's
business risk profile will continue to improve over the medium
term because of sustained increase in demand for its products.
Operating income increased 53 percent to INR900 million in 2014-15
(refers to financial year, April 1 to March 31) from INR590
million in 2013-14on account of increase in demand of products and
is expected at INR980 million in 2015-16.
The upgrade also factors in improvement in working capital
management. Receivables improved to 111 days as on March 31, 2015,
from 162 days as on March 31, 2014, and are expected to improve
over the medium term. The group now sells largely against usance
letters of credit of 60-90 days, leading to improvement in debtor
realisation cycle. Also, it is making efforts to reduce inventory,
which is expected to decline to 80 days as on
March 31, 2016, from 102 days as on March 31, 2013. CRISIL expects
the Udasee group's working capital cycle to continue to improve
over the medium term.
The ratings reflect modest financial risk profile because of high
total outside liabilities to tangible networth (TOLTNW) ratio, and
subdued debt protection metrics and networth. The ratings also
factor in exposure to intense competition in the electrical
laminations segment for power transformers. These weaknesses are
partially offset by promoters' extensive industry experience.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of USSPL and associate company Regal
Transcore Laminations Pvt Ltd (RGTLPL). This is because the two
companies, together referred to as the Udasee group, have common
promoters and management, are in the same line of business, and
have strong operational linkages.
Outlook: Stable
CRISIL believes the Udasee group will continue to benefit over the
medium term from established relationships with suppliers and
customers. The outlook may be revised to 'Positive' if financial
risk profile improves, most likely driven by sizeable equity
infusion or larger-than-expected cash accrual or significant
improvement in working capital management. Conversely, the outlook
may be revised to 'Negative' if liquidity weakens, most likely
because of increase in working capital requirement or a decline in
operating profitability.
RGTLPL was established as a proprietary firm (Regal Laminator) in
1988 and was incorporated as a private limited company with its
current name in 1998. USSPL was incorporated in 1993. The two
companies are promoted by Jaipur-based Udasi family. Their plants
are in Jaipur.
The Udasee group manufactures electrical laminations for
transformers. It sells primarily to transformer manufacturers,
which supply to state electricity boards.
UJJWAL LUXURY: CARE Assigns 'B' Rating to INR14cr LT Loan
---------------------------------------------------------
CARE assigns 'CARE B' ratings to the bank facilities of Ujjwal
Luxury Hotels Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 14 CARE B Assigned
Rating Rationale
The rating assigned to the bank facilities of Ujjwal Luxury Hotels
Private Limited (ULHPL) is primarily constrained on account of
stabilization risk associated with its recently completed debt-
funded project for construction of hotel and its presence in the
highly fragmented and competitive hotel industry.
The rating, however, continues to derive strength from technical
as well managerial assistance under 'Hyphen' brand provided by
Supertech Hotels Private Limited (SHPL) and location advantage
being present in Jaipur city which is tourist hub for domestic and
foreign visitors.
Ability to achieve the projected Occupancy Ratio (OR) and Average
Room Rent (ARR) for the hotel in a highly competitive industry is
the key rating sensitivity.
ULHPL was incorporated in June, 2011 as a private limited company
by Mr Bhagirath Poonia and Mr Daya Ram Poonia with an objective to
establish a three star hotel at Jaipur (Rajasthan). ULHPL has
completed construction work on the hotel in the middle of November
2015 and has started its operations from the first week of
December 2015. The company has incurred total cost of INR22.87
crore towards the project which was funded through term loan of
INR14 crore, unsecured loans from promoters & relatives of INR6.37
crore and share capital of INR2.50 crore.
ULHPL has signed an agreement with SHPL for "Hyphen" brand as well
as for management of the hotel in January 8, 2013 for the next
five years. The hotel will have a facility of total 75 deluxe
rooms along with one restaurant cum bar and one banquet hall with
capacity of 400 persons.
VISHNURAAM TEXTILES: CRISIL Reaffirms B Rating on INR54.7MM Loan
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Vishnuraam Textiles Ltd
(VTL) continue to reflect VTL's modest scale of operations and
susceptibility of operating margin to volatility in raw material
prices. These weaknesses are partially offset by the company's
above-average financial risk profile because of low gearing, and
promoter's extensive experience in the textile industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 43 CRISIL B/Stable (Reaffirmed)
Letter of Credit 27.5 CRISIL A4 (Reaffirmed)
Long Term Loan 54.7 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 14.6 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes VTL will continue to benefit over the medium term
from promoter's industry experience. The outlook may be revised to
'Positive' if revenue increases significantly, while maintaining
profitability and capital structure. Conversely, the outlook may
be revised to 'Negative' if liquidity is stretched because of
large working capital requirement, or if the company undertakes a
larger than expected debt-funded capital expenditure programme,
thereby adversely affecting debt-servicing ability.
VTL was set up in 1990 in Udumalpet (Tamil Nadu). The company
manufactures cotton yarn, and operations are managed by its
promoter, Mr. M Arunachalam.
VRINDAA CRAFTS: CARE Revises Rating on INR11cr LT Loan to BB-
-------------------------------------------------------------
CARE revises the rating assinged to the bank facilities of
Vrindaa Crafts Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 11 CARE BB- Revised from
CARE B+
Rating Rationale
The revision in the rating of Vrindaa Crafts Private Limited (VCP)
factors in the significant growth in the total operating income
coupled with improvement in PBIDLT margins in FY15 (refers to the
period April 01 to March 31). The rating continues to draw comfort
from the experienced promoters and moderate operating cycle.
The rating, however, continues to remain constrained on account of
low profitability margins, leveraged capital structure and weak
coverage indicators. The rating is further constrained by risk
associated with fluctuation in gold and diamond prices and
susceptible to regulatory changes and highly competitive and
fragmented industry.
Going forward, the ability of the company to increase its scale of
operations while improving its profitability margins along with
effective working capital utilisation and improvement in capital
structure shall be the key rating sensitivities.
Established in 2013, VCP is promoted by Mr Sanjeev Gupta, Mr
Rajeev Gupta, Ms Anju Gupta and Ms Neeru Gupta. VCP is engaged in
the designing and wholesale trading of gold and diamond jewellery
and started its commercial operations in August 2013. The company
mainly caters to the Delhi-based wholesale traders and retailers.
The gold jewellery supplied by the company is hallmarked by BIS
(Bureau of Indian Standards). The company sells mainly on cash
basis. The main raw material is gold and diamond which it procures
locally from open market. The procurement is done on cash basis.
The company operates through its office located in Karol Bagh,
New Delhi, and gets its jewellery manufactured on job work
basis as per the designs and specifications given by the
customers. The company has another branch office in C.R. Park,
Delhi.
For FY15 (refers to the period April 1 to March 31), VCP achieved
a total operating income (TOI) of INR83.69 crore with PBILDT and
PAT of INR1.69 crore and INR0.33 crore, respectively, as against
TOI of INR56.44 crore with PBILDT and PAT of INR0.76 crore and
INR0.23 crore, respectively, for FY14. The company has achieved
TOI of INR69.52 till November 2015 (as per the unaudited results).
=================
I N D O N E S I A
=================
INDIKA ENERGY: Moody's Lowers CFR to B3; Outlook Negative
---------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating of Indika Energy Tbk (P.T.) and the ratings on the $300
million notes due 2018, issued by Indo Energy Finance B.V. and the
$500 million notes due 2023, issued by Indo Energy Finance II B.V.
to B3 from B2.
The two bond issuing entities are wholly-owned subsidiaries of
Indika and both notes are unconditionally guaranteed by Indika.
The outlook on all ratings is negative.
This action concludes the review for downgrade initiated on 24
November 2015.
RATINGS RATIONALE
"The ratings downgrade to B3 reflects Indika's weak credit
metrics, including a balance sheet that will remain highly
leveraged following the proposed bond repurchase, and our view
that continued low prices for thermal coal will pressure Indika's
earnings and cash flows in 2016 and 2017," says Brian Grieser, a
Moody's Vice President and Senior Analyst.
Indika's primary source of cash flows comes from dividends paid by
46% owned PT Kideco Jaya Agung (Kideco, unrated), Indonesia's
third-largest domestic coal producer. Continued pressure on
thermal coal prices over the past few years has led to a
significant reduction in dividends from Kideco to $65 million in
2015 and potentially around $50 million in 2016, based on Moody's
estimates, compared to $207 million in 2012.
With lower dividends from Kideco and reduced earnings at Indika's
key consolidated subsidiaries -- Tripatra (unrated), PT Petrosea
Tbk (unrated) and PT Mitrabahtera Segara Sejati Tbk (unrated) --
we do not anticipate a material improvement in Indika's credit or
liquidity profile over the next 12-18 months.
However, the rating reflects Moody's expectations that Indika's
liquidity will remain adequate given its high cash balances and
manageable refinancing risk over the next 12 to 18 months.
On Dec. 8, 2015, Indika announced the early tender results
pursuant to its 23 November tender offer to buy back up to $100
million of its $300 million notes due 2018 at a price of $600 to
$650 per $1,000. According to this announcement, Indika plans to
increase the tender cap to $128.6 million in order to repurchase
all the notes tendered at $600 per $1,000 principal issued.
"The B3 CFR takes into account the company's post-repurchase
capital structure. The rating captures 1) the minor benefits of
Indika's notes repurchase, in terms of pro-forma debt and interest
reduction; and 2) the modest weakening of liquidity given the
expected use of cash to fund a part of the repurchase," adds Brian
Grieser, who is the lead analyst for Indika.
Moody's does not view this discounted bond repurchase as a
distressed exchange. Moody's does not believe default avoidance
is clear at this time given the bond maturity is more than two
years away and Indika maintains high cash balances. However,
Moody's definition of distressed exchanges, which it considers a
default, captures cumulative losses for investors. Therefore,
subsequent discounted note repurchases could be treated as a
distressed exchange when viewed in combination with the current
proposed transaction.
The negative outlook reflects the weak underlying pricing power of
Indika and its subsidiaries given the persistent weakness in
thermal coal prices.
A ratings downgrade could arise if liquidity were to deteriorate
or if coal prices continue to decline such that leverage were to
increase and remain over 6.5x for an extended period. A
deterioration in liquidity, such that holding company cash falls
below $175 million, could also lead to a downgrade.
A ratings upgrade is unlikely over the next 12 months given the
weak outlook for thermal coal. Nonetheless, upward rating
pressure would evolve if Indika were to successfully refinance the
balance of its 2018 notes or coal prices were to improve such that
earnings, including dividends from its subsidiaries, supported
leverage below 5.0x. A ratings upgrade would require Indika to
maintain a solid liquidity profile with over of $200 million of
available cash at the holding company level.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in December 2014.
Indika Energy Tbk (P.T.) is an Indonesian integrated energy group
listed on Indonesia's Stock Exchange. Its principal investment
for its energy resources group is a 46% stake in Kideco Jaya Agung
(P.T.), Indonesia's third-largest domestic coal producer and one
of the world's lowest-cost producers and exporters of coal. It
also owns a 60% stake in PT Mitra Energi Agung, a greenfield coal
project, and 85% of PT Multi Tambang Jaya Utama, a domestic
thermal and coking coal project.
TOWER BERSAMA: Moody's Lowers CFR to Ba3; Outlook Stable
--------------------------------------------------------
Moody's Investors Service has downgraded Tower Bersama
Infrastructure Tbk (P.T.)'s (TBI) corporate family rating to Ba3
from Ba2.
At the same time, Moody's has downgraded the rating on the $300
million senior unsecured notes issued by TBG Global Pte. Ltd. -- a
wholly-owned subsidiary of TBI -- to Ba3 from Ba2. The notes are
unconditionally and irrevocably guaranteed by TBI.
The outlook on all the ratings is stable.
RATINGS RATIONALE
TBI's leverage, which surged to 6.3x following its debt-funded
acquisition of 2,500 towers from Indosat in 2012, has persistently
remained above our tolerance for the rating since that time.
Furthermore, on November 23, the company announced its shareholder
returns policy which guided to dividends and/or share buybacks of
IDR1 trillion in 2016. This amount is expected to increase every
year.
At the same time, TBI's equity-funded acquisition of Mitratel
(unrated) is in the process of being terminated by the Board of
Commissioners of Mitratel's parent company, PT Telekomunikasi
Indonesia (Telkom, Baa1 stable).
"Termination of the Mitratel deal -- coupled with TBI's plans to
increase shareholder returns -- will result in adjusted leverage
remaining at 6x-7x, without any plans to return to pre-acquisition
levels," says Nidhi Dhruv, a Moody's Assistant Vice President.
TBI's increased shareholder returns policy indicates a more
aggressive financial policy of keeping net debt/annualized EBITDA
at about 5x. It will also lead to TBI reporting lower retained
cash flows and negative free cash flows over the next 3 years,
meaning that the company will be effectively borrowing to maintain
its dividend payments.
"Moody's is also concerned about the perceived increase in
management's level of risk tolerance, given that it is extracting
higher cash returns from the company, while still actively
pursuing both organic and inorganic growth opportunities," says
Dhruv, also Moody's Lead Analyst for TBI.
"The change in financial policy also comes at a time when TBI
could potentially face more headwinds on its contract renewals,
particularly as the renewal rates in Indonesia have not yet been
tested to a meaningful extent," adds Dhruv.
As towers are a critical component of a wireless operators'
network, the likelihood of carriers renewing contracts is -- in
our opinion -- high. However, the independent Indonesian tower
market has over the past two years become far more competitive
with three sizeable operators -- TBI, Profesional Telekomunikasi
Indonesia (Ba1 stable) and Solusi Tunas Pratama (unrated) -- each
actively pursuing their own growth opportunities.
Moody's notes that, as indicated in its financial statements, TBI
has entered into a series of life-of-debt hedges, which match the
maturity of its debt, and provide a degree of protection against
currency depreciation in view of the currency mismatch between
TBI's revenue and debt.
However, even on a fully hedged basis, adjusted leverage remains
high at 5.5-5.8x.
Nonetheless, TBI's Ba3 ratings remain supported by its position as
one of the two leading independent telecommunications tower
companies in Indonesia founded on a business model which has a
high degree of revenue transparency and predictability.
In addition, TBI maintains a high quality cash flow stream because
of the substantial presence of Indonesia's "Big 4"
telecommunications operators in its tenant base. These companies
accounted for 83% of TBI's total revenue for January-September
2015.
The "Big 4" are PT Telekomunikasi Indonesia (Telkom, Baa1 stable);
PT Telekomunikasi Selular (Baa1 stable); XL Axiata Tbk (P.T.) (Ba1
stable); and Indosat Tbk. (P.T.) (Ba1 stable).
At the same time, TBI benefits from a strong liquidity profile,
supported by strong access to bank funding, and with adequate
headroom under its covenants. The company also faces no major
debt maturities until 2018.
The stable outlook reflects Moody's expectation that the company
will continue to deliver on Moody's expectations for business
growth and contract renewals, and that the regulatory environment
will continue to remain relatively benign.
Near-term upward pressure on the rating is limited, given the
downgrade. However, upward momentum could materialize over time
if TBI demonstrates its ability to renew contracts at similar or
better terms when compared to current agreements.
In addition, credit metrics that would be supportive of an upgrade
include: 1) adjusted debt/EBITDA of 4.5-5.0x; 2) interest cover --
as measured by (FFO + interest)/interest -- of 2.0x-3.0x; and 3)
RCF/debt above 10% on a consistent basis.
Further downward pressure on the ratings could arise if the
prevailing industry slowdown continues, the company faces
challenges in renewing contracts, or TBI makes significant debt-
funded acquisitions, or materially increases shareholder payouts
which lead to a deterioration in its financial metrics.
Specific indicators include 1) adjusted debt/EBITDA above 7.0x; 2)
(FFO + interest)/interest below 1.5-2.0x; and 3) negative RCF/debt
on a consistent basis.
In addition, Moody's would be concerned should the proportion of
revenues contributed by its key customer group -- comprising the
"Big 4" -- falls below 50%-55%.
The principal methodology used in these ratings was Global
Communications Infrastructure Rating Methodology published in June
2011.
Tower Bersama Infrastructure Tbk (P.T.) is the holding company of
the Tower Bersama Group, one of the two leading independent tower
operators in Indonesia, with 11,291 telecommunication sites
serving 18,642 tenants as of September 2015. It leases space on
its telecommunications towers to cellular telecommunications
operators on long-term contracts.
TRADA MARITIME: Unit Receives Notice of Default on $13.48MM Loan
----------------------------------------------------------------
Eveline Danubrata at Reuters reports that PT Trada Maritime Tbk
said in a stock exchange filing that its unit has received a
notice of default from the Singapore branch of PT Bank Mandiri
Tbk.
Its unit has failed to pay debt principal of $13.48 million plus
interest and other expenses, the report says.
Based in Indonesia, PT Trada Maritime Tbk is a shipping company
focusing on marine transportation services in energy sector.
=========
J A P A N
=========
TOSHIBA CORP: May Sell Toshiba Tec as Part of Streamlining Effort
-----------------------------------------------------------------
Kyodo News reports that Toshiba Corp., which is embroiled in an
accounting scandal, is considering selling its listed office
equipment subsidiary Toshiba Tec Corp. as part of efforts to
streamline its diversified businesses, sources said on Dec. 14.
According to Kyodo, sources said that by selling its over
50 percent stake in Toshiba Tec, a major manufacturer of
information terminals for retail stores, the Japanese conglomerate
plans to further focus on its mainstay businesses, such as nuclear
power and semiconductors.
Kyodo says the move is also expected to help Toshiba secure funds
at a time when it cannot issue corporate bonds following the
accounting scandal, in which the company overstated its profits
for years.
Kyodo notes that Toshiba Tec incurred a group net loss of
JPY7.4 billion ($612 million) for the first half of fiscal 2015
due to its sluggish point-of-sale system business, delivering a
blow also to its struggling parent company.
Toshiba Tec, listed on the first section of the Tokyo Stock
Exchange, has around 20,000 employees in the Tokyo-based company
and its subsidiaries, the report discloses.
Kyodo adds that Toshiba President Masashi Muromachi has said he
will proceed with restructuring "without limits," after the
accounting scandal led the firm to revise downward its profits
totaling JPY224.8 billion ($1.8 billion) on a pretax basis from
April 2008 to December 2014.
About Toshiba Corp.
The Troubled Company Reporter-Asia Pacific, citing Reuters,
reported on July 22, 2015, that an independent investigation said
in a report on July 21 that Toshiba Corp. overstated its operating
profit by JPY151.8 billion ($1.22 billion) over several years in
accounting irregularities involving top management.
The investigating committee said in a report filed by Toshiba to
the Tokyo Stock Exchange that Toshiba President and Chief
Executive Hisao Tanaka and his predecessor, Vice Chairman Norio
Sasaki, were aware of the overstatement of profits and delay in
reporting losses in a corporate culture that "avoided going
against superiors' wishes," according to Reuters.
The TCR-AP, citing Bloomberg News, reported on July 22, 2015, that
Toshiba Corp. President Hisao Tanaka and two other executives quit
to take responsibility for a $1.2 billion accounting scandal that
caused the maker of nuclear reactors and household appliances to
restate earnings for more than six years.
Norio Sasaki, the vice chairman, and Atsutoshi Nishida, a former
president who was serving as adviser, also resigned, the Tokyo-
based company said July 21, more than two months after announcing
it was investigating possible accounting irregularities, according
to Bloomberg.
On Nov. 12, 2015, the TCR-AP reported that Moody's Japan K.K. has
downgraded the issuer rating and long-term senior unsecured bond
ratings of Toshiba Corporation to Baa3 from Baa2, as well as its
subordinated debt rating to Ba2 from Ba1. Moody's has also changed
the rating outlook to negative from stable. At the same time,
Moody's has downgraded Toshiba's short-term rating to Prime-3 from
Prime-2.
Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/-- is
a Japan-based manufacturer involved in five business segments.
The Digital Products segment offers cellular phones, hard disc
devices, optical disc devices, liquid crystal televisions, camera
systems, digital versatile disc (DVD) players and recorders,
personal computers (PCs) and business phones, among others. The
Electronic Device segment provides general logic integrated
circuits (ICs), optical semiconductors, power devices, large-scale
integrated (LSI) circuits for image information systems and liquid
crystal displays (LCDs), among others. The Social Infrastructure
segment offers various generators, power distribution systems,
water and sewer systems, transportation systems and station
automation systems, among others. The Home Appliance segment
offers refrigerators, drying machines, washing machines, cooking
utensils, cleaners and lighting equipment. The Others segment
leases and sells real estate.
TOSHIBA CORP: Eyes Several Thousand Job Cuts in Restructuring
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Kyodo News reports that Toshiba Corp. is considering slashing
several thousand jobs in Japan and abroad as the scandal-hit
industrial conglomerate aims to restructure its loss-making
personal computer, television, and white goods businesses, sources
close to the matter said Dec. 15.
Kyodo relates that Toshiba is expected to solicit early
retirements and transfer workers, the sources said, adding that
the company could unveil such plans next Monday [Dec. 21].
According to the report, the envisaged job cuts are part of
Toshiba's broader restructuring, coming after it emerged earlier
this year that the company had inflated profits for almost seven
years.
Sources said the downsizing of Toshiba's Ome complex in west Tokyo
that develops TVs and PCs is also under consideration, the report
relays.
For TVs, Toshiba is expected to sell a plant in Indonesia to a
foreign maker, as well as a plant in that country that produces
washing machines, sources have said, adds Kyodo.
As of March, Toshiba's lifestyle division in charge of white
goods, TVs and PCs had over 24,000 employees both in Japan and
abroad, the report discloses. The division logged a JPY42.5
billion ($350 million) operating loss for the first half of fiscal
2015.
Kyodo notes that Toshiba has already decided to withdraw from its
image sensor and white light-emitting diode business, which would
lead to some 2,300 job cuts and transfers.
About Toshiba Corp.
The Troubled Company Reporter-Asia Pacific, citing Reuters,
reported on July 22, 2015, that an independent investigation said
in a report on July 21 that Toshiba Corp. overstated its operating
profit by JPY151.8 billion ($1.22 billion) over several years in
accounting irregularities involving top management.
The investigating committee said in a report filed by Toshiba to
the Tokyo Stock Exchange that Toshiba President and Chief
Executive Hisao Tanaka and his predecessor, Vice Chairman Norio
Sasaki, were aware of the overstatement of profits and delay in
reporting losses in a corporate culture that "avoided going
against superiors' wishes," according to Reuters.
The TCR-AP, citing Bloomberg News, reported on July 22, 2015, that
Toshiba Corp. President Hisao Tanaka and two other executives quit
to take responsibility for a $1.2 billion accounting scandal that
caused the maker of nuclear reactors and household appliances to
restate earnings for more than six years.
Norio Sasaki, the vice chairman, and Atsutoshi Nishida, a former
president who was serving as adviser, also resigned, the Tokyo-
based company said July 21, more than two months after announcing
it was investigating possible accounting irregularities, according
to Bloomberg.
On Nov. 12, 2015, the TCR-AP reported that Moody's Japan K.K. has
downgraded the issuer rating and long-term senior unsecured bond
ratings of Toshiba Corporation to Baa3 from Baa2, as well as its
subordinated debt rating to Ba2 from Ba1. Moody's has also changed
the rating outlook to negative from stable. At the same time,
Moody's has downgraded Toshiba's short-term rating to Prime-3 from
Prime-2.
Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/-- is
a Japan-based manufacturer involved in five business segments.
The Digital Products segment offers cellular phones, hard disc
devices, optical disc devices, liquid crystal televisions, camera
systems, digital versatile disc (DVD) players and recorders,
personal computers (PCs) and business phones, among others. The
Electronic Device segment provides general logic integrated
circuits (ICs), optical semiconductors, power devices, large-scale
integrated (LSI) circuits for image information systems and liquid
crystal displays (LCDs), among others. The Social Infrastructure
segment offers various generators, power distribution systems,
water and sewer systems, transportation systems and station
automation systems, among others. The Home Appliance segment
offers refrigerators, drying machines, washing machines, cooking
utensils, cleaners and lighting equipment. The Others segment
leases and sells real estate.
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N E W Z E A L A N D
====================
OPTIMIZER HQ: Two Subsidiaries Placed in Liquidation
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Heather Wright at channellife.co.nz reports that Odev Limited, a
company associated with Optimizer HQ and payment processing
solution Swipe HQ, has been placed into liquidation, following a
special resolution of shareholders.
Jared Booth of McDonald Vague was appointed liquidator on Dec. 11.
According to the report, Manas Kumar, the director behind the
companies and Optimizer group chief executive, said the
liquidations are all part of a business restructure currently
being undertaken.
channellife.co.nz relates that Mr. Booth said McDonald Vague is
liquidating two subsidiary companies -- Odev Limited and Optimizer
Corporation Limited, which was renamed 4468440 Limited the day
before the companies were placed into liquidation.
It is understood, however that the businesses of both of the
subsidiary companies were sold prior to the liquidation, the
report says.
"We understand that the businesses operated by the company were
sold prior to the date of our appointment," the report quotes
Mr. Booth as saying.
Both were involved in technology and the businesses are still
operating, the report notes.
Optimizer HQ Limited is the holding company, Mr. Booth said.
An initial report is this next week, the report adds.
Manas Kumar is listed as the director of both of the companies
currently in liquidation, according to channellife.co.nz.
=====================
P H I L I P P I N E S
=====================
PENAFRANCIA RURAL: In Receivership; PDIC Closes Bank
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Ben O. de Vera at the Philippine Daily Inquirer reports that the
monetary Board has ordered the closure of Penafrancia Rural Bank
of Calabanga (Camarines Sur) Inc.
In a Dec. 10 circular, Bangko Sentral ng Pilipinas Deputy Governor
Nestor A. Espenilla Jr. said the Monetary Board had decided to
prohibit Penafrancia Rural Bank of Calabanga (Camarines Sur) Inc.
from doing business in the country, the Inquirer relates.
Also, the rural bank's assets and affairs were placed under
receivership pursuant to Section 30 of Republic Act No. (RA) 7653
or The New Central Bank Act, Mr. Espenilla said, the report
relays.
The Inquirer notes that under RA 7653, a bank is put under
receivership if it was unable to pay its liabilities; has
insufficient realizable assets to meet liabilities; cannot
continue in business without involving probable losses to its
depositors or creditors; or has willfully violated a cease and
desist order that has become final, involving acts or transactions
which amount to fraud or a dissipation of the assets of the
institution.
According to the report, the Monetary Board had designated state-
run Philippine Deposit Insurance Corp. (PDIC) as the Camarines Sur
bank's receiver.
Data on PDIC's website showed that as of end-September, it has
five rural banks under receivership, on top of 364 banks under
liquidation, the Inquirer discloses.
RURAL BANK OF CABA: Placed Under PDIC Receivership
--------------------------------------------------
The Monetary Board (MB) placed Rural Bank of Caba (La Union), Inc.
under the receivership of the Philippine Deposit Insurance
Corporation (PDIC) by virtue of MB Resolution No. 2004 dated
December 10, 2015. As Receiver, PDIC took over the bank on
December 11, 2015.
Rural Bank of Caba, Inc. is a single unit rural bank located in
Poblacion Sur, Caba, La Union. Based on the Bank Information Sheet
filed by the bank with the PDIC as of June 30, 2015, Rural Bank of
Caba, Inc. is owned by Enrique A. Sobrepe¤a, Jr. (35.30%), Rose L.
Sobrepe¤a (34.17%), Rockshed Management Inc. (7.07%), Juan Miguel
P. Sobrepe¤a (6.08%), Robert John L. Sobrepe¤a (5.00%), William
Russell L. Sobrepe¤a (5.00%) and Enrique L. Sobrepe¤a III (5.00%).
The Bank's President is Juan Miguel P. Sobrepe¤a and its Chairman
is Enrique A. Sobrepe¤a, Jr.
Latest available records show that as of September 30, 2015, Rural
Bank of Caba, Inc. had 1,057 accounts with total deposit
liabilities of PHP18.3 million. Total insured deposits amounted to
PHP18.0 million or 98.2% of total deposits.
PDIC said that during the takeover, all bank records shall be
gathered, verified and validated. The state deposit insurer
assured depositors that all valid deposits shall be paid up to the
maximum deposit insurance coverage of PHP500,000.00.
Depositors with valid deposit accounts with balances of
PHP100,000.00 and below shall be eligible for early payment and
need not file deposit insurance claims, except accounts maintained
by business entities, or when they have outstanding obligations
with Rural Bank of Caba, Inc. or acted as co-makers of these
obligations. Depositors have to ensure that they have complete and
updated addresses with the bank. PDIC targets to start mailing
payments to these depositors at their addresses recorded in the
bank no later than the first week of January 2016.
Depositors may update their addresses until December 18, 2015
using the Mailing Address Update Forms to be distributed by PDIC
representatives at the bank premises.
For depositors that are required to file deposit insurance claims,
the PDIC targets to start claims settlement operations for these
accounts by the second week of January 2016.
The PDIC also announced that it will conduct Depositors-Borrowers
Forums on December 18, 2015 and January 5, 2016. It enjoins all
depositors to attend the two Forums. In the first forum, the
requirements and procedures for filing deposit insurance claims
will be discussed, and the important dates such as the payout
schedules will be discussed in the second forum so that depositors
will be able to verify with PDIC representatives if they are
eligible for early payment. The time and venue of the Forum will
be posted in the bank's premises and announced in the PDIC
website, www.pdic.gov.ph Likewise, the schedule of the claims
settlement operations, as well as the requirements and procedures
for filing claims will be announced through notices to be posted
in the bank premises, other public places and the PDIC website.
=================
S I N G A P O R E
=================
COSCO CORPORATION: Restructuring Deal With Parent Falls Through
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Singapore Business Review reports that COSCO Corporation
(Singapore) took a beating after its shares resumed trading on
December 14. Investors punished the shipping company after a
much-awaited privatisation deal with its parent company fell
through last week, SBR says.
According to the report, COSCO shares have been suspended from
trading since August 11, after it was reported that its majority
shareholder Cosco Group is eyeing a privatisation exercise for the
struggling shipping company. Prior to the revelation of the
proposed restructuring deal, COSCO reported consecutive quarters
of widening losses and saw its share price fall to its lowest
level in ten years, SBR relates.
On December 11, COSCO Singapore was left out of the deal after
COSCO Group revealed a wide-ranging restructuring deal that
involves its Shanghai-listed subsidiaries China Shipping
Development, China Shipping Container Lines, and Hong-Kong listed
COSCO Pacific, SBR recalls.
"The present stage of the reorganisation will involve mainly the
container shipping, ship leasing, tanker shipping, bulk shipping,
financial businesses and other sectors carried out by certain
other companies within the COSCO Group. It will not involve the
Company's business segments for the time being," the report quotes
COSCO Singapore as saying in a filing with the SGX.
As of 10:00 a.m. on December 14, COSCO Singapore's share price has
dropped 13.3% to $0.325 cents per share, SBR adds.
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel
Elaine T. Fernandez, Julie Anne L. Toledo, and Peter A. Chapman,
Editors.
Copyright 2015. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000 or Nina Novak at 202-362-8552.
*** End of Transmission ***