/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/160105.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 Tuesday, January 5, 2016, Vol. 19, No. 2 Headlines A U S T R A L I A ATLAS IRON: Moody's Cuts Corporate Family Rating to Ca DICK SMITH: Shares Trading Halt Pending Debt Financing Update INVESTRUCTION PTY: First Creditors' Meeting Set For Jan. 14 STAR INVESTING: First Creditors' Meeting Set For Jan. 12 VOCATION LTD: Directors and Former Advisers Face Suits C H I N A CHINA: Shipowners Face Forced Sales, Possible Bankruptcy I N D I A AJAB SINGH: ICRA Upgrades Rating on INR6.50cr Loan to B+ AKSHAYA BUILDERS: CRISIL Reaffirms 'B' rating on INR114MM Loan ALFA CHEMO: CRISIL Reaffirms B- Rating on INR25MM Cash Loan BALAJI IRON: Ind-Ra Assigns B- Long-Term Issuer Rating BANSIDHAR AGARWALLA: ICRA Reaffirms B- Rating on INR3.25cr Loan BRAHMA REFRACTORIES: CRISIL Reaffirms B+ Rating on INR62.5MM Loan BRUHAT BENGALURU: ICRA Withdraws IrB Issuer Rating ER. UMAKANT: CRISIL Suspends 'C' Rating on INR60MM Term Loan ESSKAY MACHINERY: CRISIL Reaffirms B- Rating on INR70MM Loan EXIMPIPES PVT: CRISIL Cuts Rating on INR106MM Cash Loan to 'B' GAYATRI HI-TECH: ICRA Reaffirms D Rating on INR491.10cr Loan GREENLINE ECOFAB: Ind-Ra Assigns B+ Long-Term Issuer Rating GRITTON CERAMICS: CRISIL Reaffirms B+ Rating on INR85MM Loan GVS PROJECTS: ICRA Reaffirms B+ Rating on INR11.50cr Loan HASTALLOY INDIA: CRISIL Reaffirms B+ Rating on INR55MM Cash Loan HILLWOOD IMPORTS: CRISIL Reaffirms B+ Rating on INR10MM Loan K. KOTESWARA: CRISIL Assigns B+ Rating to INR40MM Loan K. MAGANLAL: Ind-Ra Affirms BB+ Long-Term Issuer Rating L N CONSTRUCTIONS: CRISIL Reaffirms B- Rating on INR40MM Loan MA SARADA: ICRA Cuts Rating on INR4.01cr Term Loan to D N.C. JOHN: Ind-Ra Assigns BB+ Long-Term Issuer Rating ONYX BIOTEC: CRISIL Assigns B+ Rating to INR60.9MM Term Loan OYO CERAMIC: ICRA Reaffirms B+ Rating on INR3.92cr Term Loan PRINCE YARNN: ICRA Ups Rating on INR12.81cr Term Loan to B+ PURUSHOTTAM JAIRAM: CRISIL Ups Rating on INR90MM Loan to B- RADHESHYAM INDUSTRIES: CRISIL Reaffirms B+ Rating on INR120M Loan RAGHU RAMA: ICRA Reaffirms 'B' Rating on INR15.68cr Loan SAINATH ESTATES: CRISIL Suspends 'D' Rating on INR1.25BB Loan SANDOZ MERCHANTS: CRISIL Assigns B+ Rating to INR35MM Cash Loan SARVODAYA EDUCATION: CRISIL Assigns B Rating to INR250MM LT Loan SAVINO CERAMIC: CRISIL Ups Rating on INR65MM Term Loan to B+ SAYAJI PACKAGING: ICRA Reaffirms B- Rating on INR2.5cr Loan SHREE RAM: ICRA Lowers Rating on INR10cr Cash Loan to B+ SHRI MAHARANA: CRISIL Assigns 'B' Rating to INR59MM Cash Loan SHRI REWA: CRISIL Assigns 'B' Rating to INR74.5MM Term Loan SHRI WARDHMAN: CRISIL Cuts Rating on INR67MM Term Loan to 'B' SUPER LIFESTYLE: Ind-Ra Assigns D Long-Term Issuer Rating SVM CERA: ICRA Lowers Rating on INR5.50cr Cash Loan to D SWAMI VIVEKANAND: Ind-Ra Assigns BB Long-Term Issuer Rating SYNERGY GREEN: CRISIL Reaffirms 'D' Rating on INR110MM Cash Loan TAYAL ENERGY: Ind-Ra Suspends D Long-Term Issuer Rating TECHMECH ENGINEERS: CRISIL Assigns B+ Rating to INR92MM Loan THIRU AROORAN: ICRA Lowers Rating on INR200.30cr Loan to D TPRS ENTERPRISES: Ind-Ra Raises Long-Term Issuer Rating to BB+ UNIPHOS INTERNATIONAL: Ind-Ra Affirms BB+ Long-Term Issuer Rating VARRON ALUMINIUM: Ind-Ra Withdraws BB- Long-Term Issuer Rating VARRON INDUSTRIES: Ind-Ra Withdraws BB+ Long-Term Issuer Rating VENKATA KRISHNA: CRISIL Reaffirms B Rating on INR115MM LT Loan YOGESH TRADING: Ind-Ra Assigns BB Long-Term Issuer Rating M A L A Y S I A 1MALAYSIA DEVELOPMENT: Anti-Graft Agency Submits Probe Results N E W Z E A L A N D CLEGG & CO: Investors Get Back 58.7c in the Dollar INTAGR8 LTD: Had 'Unsustainable Business Model', Liquidator Says P H I L I P P I N E S LBC DEVELOPMENT: PDIC Files PHP1.8BB Suit vs. LBC Group T H A I L A N D THAILAND: Central Bank Governor Set to Walk Economic Tightrope X X X X X X X X * BOND PRICING: For the Week Dec. 28, 2015 to Jan. 1, 2016 - - - - - ================= A U S T R A L I A ================= ATLAS IRON: Moody's Cuts Corporate Family Rating to Ca ------------------------------------------------------ Moody's Investors Service downgraded the rating on the USD267 million senior secured term loan B due December 2017 to Ca from Caa3. At the same time, Moody's has also downgraded Atlas Iron Limited's corporate family rating to Ca from Caa3. The outlook for all ratings is negative. RATINGS RATIONALE The rating action follows Atlas' announcement on 23 December 2015 that it has signed a debt restructuring support agreement with 75% of its term loan B (TLB) lenders and an amendment to its existing syndicated facility agreement. Under the agreement, Atlas will make a pay down of the TLB loan of USD10 million and issue shares and options in exchange for TLB lenders to retire USD132 million (AUD183 million) of debt. On implementation, Atlas will have reduced its term loan debt from USD267 million to USD135 million and TLB lenders will subsequently hold 70% of the company's shares and options. The maturity of the TLB will also be extended from December 2017 to April 2021. "If successful, the transaction will constitute a distressed debt exchange, which is a default event under Moody's definition. The downgrade of the secured term loan to Ca considers this default and our assessment of the high economic loss when compared to the original payment promise for the Notes," says Matthew Moore, Vice President - Senior Credit Officer / Corporate Finance. "Moreover, the downgrade of Atlas' corporate family rating to Ca from Caa3 reflects our concern that the company will continue to face financial stress after the transaction closes as proposed," adds Moore. Moody's recognizes that the completion of the exchange offer will substantially reduce Atlas' debt levels and interest costs. However, given the significant drop in iron ore prices and Moody's revised expectations for prices in 2016 and 2017, the rating agency expects that prices will be below Atlas' breakeven levels in the near term, barring further material cost reduction and/or depreciation of the Australian dollar relative to the U.S. dollar. Atlas' guidance for FY16 full cash costs is AUD55-AUD59 million. However, at current iron ore prices of around USD40 per tonne and the prevailing AUD/USD exchange rate in the low AUD0.70 range, Moody's estimates that the company is operating near breakeven at the low end of its cost guidance -- and is substantially cash negative at the higher end. Assuming around 14-15 million tonnes produced, this could lead to around AUD70-80 million in negative cash flow over the next 12 months, relative to the company's expected cash balance of AUD85-95 million at 31 December 2015 (before the USD10 million in term loan repayment as part of the proposed debt restructure). The negative rating outlook factors in uncertainty over whether the exchange offer and consent solicitation will be successfully completed; the fact that that, following the transaction, the company's liquidity position is expected to remain significantly stressed; and the consideration that its operating model has been severely weakened. Accordingly, Moody's considers that the risk of default remains high. Atlas Iron Limited (Atlas), headquartered in Perth, Australia, is an iron ore producer and developer focused on the North Pilbara region of Western Australia. Atlas exports iron ore from its current operations comprising three producing mines. DICK SMITH: Shares Trading Halt Pending Debt Financing Update ------------------------------------------------------------- Herald Sun reports that Dick Smith shares have placed into a trading halt pending an announcement from the embattled electronics retailer about its debt financing. According to the report, the group said it expects to provide an update to the market on its funding position and debt financing by Wednesday, Jan. 6. Herald Sun notes that the retailer's shares last traded at 35.5c - - a massive 83% below its debut price of AUD2.20 when it floated on the Australian Securities Exchange on December 2013. The group's shares have shed more than 80% of their value since August on the back of two profit warnings and weak sales in October and November, the report notes. Herald Sun says private equity firm Anchorage Capital Partners bought the 325-store Dick Smith network from retail giant Woolworths for AUD94 million in November 2012. The report relates that the retailer was floated on the ASX just over a year later with a market value of AUD520 million, under the leadership of former Myer executive Nick Abboud. But Dick Smith has struggled in the competitive sector, and announced in October that full-year net profit was expected to be as much as AUD8 million below the previously forecast result of AUD45 million to AUD48 million, adds Herald Sun. Dick Smith Electronics Pty Limited -- http://dicksmith.com.au/-- operates as a retailer and wholesaler of electronics products in Australia and New Zealand. It offers computers, communications, gaming, and entertainment products. Dick Smith Electronics Pty Limited was founded in 1969 and is based in Chullora, Australia. INVESTRUCTION PTY: First Creditors' Meeting Set For Jan. 14 ----------------------------------------------------------- William Hamilton of W J Hamilton & Co. was appointed as administrator of Investruction Pty Ltd on Jan. 4, 2016. A first meeting of the creditors of the Company will be held at Suite 508,147 King Street, in Sydney, on Jan. 14, 2016, at 10:00 a.m. STAR INVESTING: First Creditors' Meeting Set For Jan. 12 -------------------------------------------------------- Richard Rohrt of Hamilton Murphy Pty Ltd was appointed as administrator of Star Investing Pty Ltd on Dec. 30, 2015. A first meeting of the creditors of the Company will be held at Hamilton Murphy Pty Ltd, 237 Swan Street, in Richmond, on Jan. 12, 2016, at 11:30 a.m. VOCATION LTD: Directors and Former Advisers Face Suits ------------------------------------------------------ The Australian reports that law firms pursuing collapsed education interest Vocation Ltd have widened their focus to directors and former advisers, which could be on the hook for payouts to investors of up to AUD100 million. The Australian relates that the move underscores an increasingly popular path for class action litigators which, faced with the prospect of suing a company with no cash or assets, have taken action against company directors and trustees. According to the report, Slater & Gordon and Maurice Blackburn, which separately filed class actions against the former education sector giant in 2014, are now understood to be reviewing their strategies in pursuit of Vocation on behalf of investors. Vocation's administrator, Ferrier Hodgson, in November 2015 recommended the company be placed into receivership and estimated there was a net asset deficiency of up to AUD58 million. The report says the collapse of Vocation, once worth more than $770 million, left more than 12,000 students across Australia in the lurch. The downfall of the company, previously chaired by former Labor treasurer John Dawkins, exposed a growing problem in private education. For Vocation's part, it was unable to reach agreement with investors about additional capital, after a year of poor performance following a damning Victorian government audit that stripped the firm of funding and shuttered two subsidiaries, according to the Australian. The Australian says Slater & Gordon, in its attempt to recover funds for investors in failed debenture firm Provident Capital, has turned its attention to the IOOF-owned Australian Executor Trustees. According to the report, the law firm declined to comment on the specifics of the action against Vocation, but a spokeswoman said lawyers were "carefully reviewing the position of the company and related parties" and expected to have a more detailed announcement early this year. The Australian relates that Maurice Blackburn class actions spokesman Cameron Scott said the firm was "continuing investigations and awaiting further information before finalising its approach". With directors increasingly being targeted in shareholder action, they are mostly covered by directors and officers insurance, which protects board members and management from personal payouts over decisions that have led to steep losses. However, in some situations directors may lose their cover. Both claims lodged against Vocation allege that the company failed to comply with continuous disclosure obligations, the report notes. Vocation "knew, or ought reasonably to have known" its conduct including the employment of unqualified or underqualified trainers and the placement of students into courses inappropriate to their needs would render the company noncompliant with its funding contracts, it is alleged, The Australian relays. The report notes that Maurice Blackburn's action is attempting to recoup more than AUD95 million, while Slater & Gordon has yet to detail its claim. Mark Elliott, a former partner at Minter Ellison, is also pursuing a class action, adds The Australian. Even if the lawsuits are successful, they will rank below the claims of unsecured creditors, who Ferrier Hodgson estimates will receive a maximum of 14c in the dollar, the report says. The Australian relates that administrators, led by Peter Gothard, said their investigation about any breaches of directors' duties was continuing. "Prior to the appointment of administrators three separate class actions were commenced by shareholders relating to the group's alleged failure to comply with continuous disclosure requirements," Ferrier Hodgson wrote to creditors, The Australian relays. "Further investigations would be required to assess whether the actions of the directors would constitute a breach of directors' duties." 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 provided workforce based training and development solutions to employees of Australian Corporate and government clients. Vocation also provided training directly to individual students. Vocation operated 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. ========= C H I N A ========= CHINA: Shipowners Face Forced Sales, Possible Bankruptcy -------------------------------------------------------- Robert Wright at The Financial Times reports that China's slowing growth and a glut of ships have hit earnings for vessels carrying coal and other dry bulk commodities so hard that owners face forced sales, emergency capital raisings and possible bankruptcy. Charter fees are not covering vessels' operating costs, let alone their financing, in the latest bad news for the many private equity firms that have invested in the sector, the FT says. The FT notes that short-term charter rates for Capesize ships -- the largest kind -- were as low as $4,897 a day on December 23, down from more than $20,000 a day in August. Vessels typically cost around $13,000 a day to operate and finance. The Baltic Dry index, which measures overall average charter rates, has been at its lowest levels since it started in 1985, the report discloses. According to the report, the slide partly reflected growth in the dry bulk fleet as vessels ordered in late 2013 and early 2014, many with private equity funding, were delivered. The net capacity of the world dry bulk fleet grew 3 per cent in the first 10 months of 2015, despite a spike in the number of older vessels being scrapped following the slump in rates. The FT says the impact of the fleet's growth has been all the more severe because China's slowdown has reduced an expected increase in trade in dry bulk commodities from 5-6 per cent over 2015 to zero. "As you combine that with the supply problem we already knew about, you get the worst conditions we've seen ever," the report quotes one senior industry figure as saying. The FT adds that the crisis has been made worse by the low oil price. As the price of fuel has fallen, charterers have ordered many shipowners to speed ships up instead of operating them slowly to save fuel. Michael Bodouroglou, chief executive of Paragon Shipping, an Athens-based, New York-listed dry bulk shipowner, said the increased speed was making the oversupply problem worse by increasing the fleet's carrying capacity, the report relates. The FT says Paragon is one of at least four New York-listed companies -- alongside DryShips, Scorpio Bulkers and Star Bulk -- that were forced in late November and early December to announce sales of vessels to bring in cash. According to the report, Mr Bodouroglou said operators were burning through significant amounts of cash because rates were not meeting their costs. "Everybody who's selling, especially good-quality assets, these days they really sell them because they need to," the FT quotes Mr. Bodouroglou as saying. The FT adds that the cash crunches at the listed companies affect two high-profile private equity investors in the industry: Monarch Alternative Capital, which holds an 18 per cent stake in Scorpio Bulkers and a smaller stake in Star Bulk; and Oaktree Capital, which controls Star Bulk. ========= I N D I A ========= AJAB SINGH: ICRA Upgrades Rating on INR6.50cr Loan to B+ -------------------------------------------------------- ICRA has upgraded the long-term rating for the INR10.5 crore fund based/non-fund based limits of Ajab Singh & Co. from [ICRA]B to [ICRA]B+. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limits 6.50 [ICRA]B+; upgraded Non-Fund Based Limits 4.00 [ICRA]B+; upgraded The rating upgrade is driven by the improvement in ASC's revenues over the past two years along with healthy net profitability of 7.38% and return indicators Return on Capital Employed for FY2015 without any major incremental debt. With significant traction in its top order during FY2016, the revenue base of the firm is likely to increase further however the order book position of the firm remains modest. The rating continues to take into account the experience of the promoters in the construction business. The rating however remains constrained low networth base partly on account of withdrawal of capital by partners, vulnerability of the profitability to fluctuations in raw material prices, high geographical concentration as well as highly competitive market. The rating also factors in the high working capital intensity of business owing to high inventory requirements which exerts pressure on the liquidity position of the firm. Going forward, the ability of the firm to maintain its profitability, in addition to improving its working capital intensity of operations; ability of the firm to obtain and execute orders, diversify its customer base and scale of projects it undertakes; and further strengthening of the capital structure will remain the key rating sensitivities. Ajab Singh and Company is a partnership firm which was incorporated in 2006. The firm is engaged in construction of flats, boundary wall and other such civil engineering projects in NCR region for DDA. The firm has around 40 permanent employees and 200-250 labourers which are hired on a temporary basis. Recent Results During FY2015, ASC reported a profit after tax of INR4.20 crore on an operating income of INR56.92 crore as against PAT of INR1.69 crore on an operating income of INR28.34 crore during FY2014. AKSHAYA BUILDERS: CRISIL Reaffirms 'B' rating on INR114MM Loan -------------------------------------------------------------- CRISIL's ratings on the bank facilities of Akshaya Builders (AB) continue to reflect AB's small scale of operations in the intensely competitive civil construction industry, the firm's large working capital requirements, and below-average financial risk profile marked by high gearing. These rating weaknesses are partially offset by the extensive experience of AB's promoters in the civil construction industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 40 CRISIL A4 (Reaffirmed) Cash Credit 114 CRISIL B/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 10 CRISIL B/Stable (Reaffirmed) Outlook: Stable CRISIL believes that AB will benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the firm scales up its operations significantly while improving its profitability, leading to improved cash accruals and liquidity. Conversely, the outlook may be revised to 'Negative' if the firm's financial risk profile, particularly its liquidity, weakens because of low revenue or profitability, or deterioration in working capital management, or any large debt-funded capital expenditure. Update AB's business risk profile remains moderate marked by moderate scale of operations. The firm's revenue increased to INR177 million in 2014-15 (refers to financial year, April 1 to March 31) from INR118 million in 2013-14 supported by its steady order inflows. AB currently has an order book of INR250 million which includes seven ongoing works with National Highways Authority of India. CRISIL expects AB's revenue to improve moderately over the medium term supported by healthy order book from NHAI. The firm reported healthy operating margin of 14 per cent for 2014-15. CRISIL believes that AB's operating margin will remain stable, at 14 per cent, over the medium term. AB's financial risk profile remains below-average, marked by moderate net worth and weak debt protection metrics. Its net worth increased to INR92 million as on March 31, 2015, from INR87 million a year earlier. The net worth is expected to increase moderately and range from INR98 million to INR106 million over the medium term. Also, its debt protection metrics remain moderate, with estimated interest coverage ratio of 1.78 times and net cash accruals to total debt ratio of 0.09 times for 2014-15.. CRISIL believes that AB's financial risk profile will remain below- average, marked by moderate net worth and weak debt protection metrics, over the medium term. AB's liquidity remains weak marked by high bank limit utilization though supported by adequate cash accruals. Its net cash accruals are expected at around INR12 million per annum against annual debt obligations of INR4 million over the medium term. Its bank limit was utilised extensively, at an average of 96.4 per cent over the 13 months through April 2015. CRISIL believes that AB's liquidity will remain stretched over the medium term marked by extensively utilized bank limit and moderately matched cash accruals and debt obligations. Set up in 2013 and based in Kerala, AB executes road construction projects for government undertakings. The firm's operations are managed by managing partner Mr. Ajith Kumar P. ALFA CHEMO: CRISIL Reaffirms B- Rating on INR25MM Cash Loan ----------------------------------------------------------- CRISIL's ratings on the bank facilities of Alfa Chemo Plast Private Limited (ACPPL) continue to reflect ACPPL's weak financial risk profile because of moderate gearing and subdued debt protection metrics. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 25 CRISIL B-/Stable (Reaffirmed) Letter of Credit 55 CRISIL A4 (Reaffirmed) Proposed Long Term Bank Loan Facility 20 CRISIL B-/Stable (Reaffirmed) The ratings also factor in large working capital requirement, small scale of operations, and susceptibility of operating margin to volatility in raw material prices and fluctuations in foreign exchange rates. These weaknesses are partially offset by promoters' extensive experience in the chemicals trading business. Outlook: Stable CRISIL believes ACPPL will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the company scales up operations and registers sustainable improvement in operating margin, leading to better liquidity. Conversely, the outlook may be revised to 'Negative' if working capital cycle lengthens, constraining liquidity, or if the company undertakes a large debt- funded capital expenditure programme, weakening its financial risk profile. Update ACCPL reported operating income of INR204 million during 2014-15 (refers to financial year, April 1 to March 31), against INR193 million in the preceding year. Operating income was at INR100-110 million for the eight months through November 2015. Operating margin is expected to remain at 3.0-3.5 percent during 2015-16. Working capital requirement will remain large, with gross current assets expected at 170-190 days over the medium term, driven by considerable receivables and inventory. Financial risk profile will remain weak because of expected modest networth of INR55-57 million as on March 31, 2016. Debt protection metrics will remain subdued, with interest coverage ratio expected at 1.2-1.5 times during 2015-16. Liquidity is constrained by extensive bank line utilisation of 97 percent over the 11 months through November 2015. While net cash accrual will remain low, ACPPL has no term debt obligation over the medium term and promoters have moderate financial flexibility to infuse need-based funds to meet incremental working capital requirement. ACPPL was set up in 2005-06 by Mr. Ambrish Mehta and his wife, Ms. Jigna Mehta. The company trades in speciality chemicals. Its office is in Mumbai and it has a godown at Bhiwandi in Thane (Maharashtra). PU is used in cold storage, refrigeration, and other insulation applications. BALAJI IRON: Ind-Ra Assigns B- Long-Term Issuer Rating ------------------------------------------------------ India Ratings and Research (Ind-Ra) has assigned Balaji Iron and Steel Industries Private Limited (BISIPL) a Long-Term Issuer Rating of 'IND B-'. The Outlook is Stable. KEY RATING DRIVERS The ratings reflect in BISIPL's small scale of operations, weak credit metrics and tight liquidity. FY15 revenue was INR707 mil. (FY14: INR1,408 mil.), EBITDA interest coverage was negative 0.3x (FY14: negative 0.2x) and net leverage was negative 24.1x (negative 58.4x). EBITDA remained negative over FY12-FY15 due to raw material price fluctuations. The ratings also factor in BISIPL's tight liquidity position with the fund-based facilities being fully utilized over the 12 months ended December 2015. The ratings are supported by over three decades of experience of the company's promoter in the steel tubes and pipes business. RATING SENSITIVITIES Positive: Substantial growth in the top line and profitability leading to a sustained improvement in the overall credit metrics will be positive for the ratings. Negative: A substantial decline in the profitability resulting in sustained deterioration in the credit profile will lead to a negative rating action. COMPANY PROFILE BISIPL, formerly known as Grass Steels Pvt Ltd, was incorporated in 1987. The company manufactures black tubes and electric resistance welded steel pipes. BISIPL's ratings are: -- Long-Term Issuer rating: assigned 'IND B-'; Outlook Stable -- INR250 mil. long-term loans: assigned 'IND B-'/Stable -- INR30 mil. fund-based facilities: assigned 'IND B-'/Stable/'IND A4' BANSIDHAR AGARWALLA: ICRA Reaffirms B- Rating on INR3.25cr Loan --------------------------------------------------------------- ICRA has reaffirmed the long term rating of [ICRA]B- assigned to the Rs 3.25 crore seasonal cash credit facility, INR1.50 crore working capital term loan, INR0.86 crore working capital loan and INR0.17 crore bank guarantee of Bansidhar Agarwalla & Company Pvt. Ltd. unit: Chinsurah Cold Storage (CCS). Amount Facilities (INR crore) Ratings ---------- ----------- ------- Working Capital Term Loan 1.50 [ICRA]B- reaffirmed Seasonal Cash Credit 3.25 [ICRA]B- reaffirmed Working Capital Loan 0.86 [ICRA]B- reaffirmed Bank Guarantee 0.17 [ICRA]B- reaffirmed The rating reaffirmation takes into account CCS's adverse capital structure, depressed coverage indicators, high working capital intensive nature of operations and the regulated nature of the industry, making it difficult to pass on increase in operating costs in a timely manner, leading, in turn, to downward pressures on profitability. ICRA also notes that the loans extended to farmers by CCS may lead to delinquency, if potato prices fall to a low level. The rating also takes into account CCS's exposure to agro-climatic risks, with its business performance being entirely dependent upon a single agro commodity, i.e. potato. The rating, however, derives support from the long track record of the promoters in the management of cold storages, the locational advantage of CCS by way of presence of its cold storage units in West Bengal, a state with large potato production, and the recent increase in rental by the State Government which is likely to provide cushion to the profitability of the company in the near to medium term. CCS, a cold storage unit of BASPL was set up in 1963 in Chinsurah, in the Hooghly district of West Bengal. CCS is primarily engaged in the business of storage and preservation of potatoes and occasionally carries out trading of potatoes as well. Currently, CCS has an annual storage capacity of 20,000 tonne. Recent Results In FY15, CCS reported a net profit of Rs 0.01 crore on the back of an operating income (OI) of INR2.31 crore, as compared to a net profit of Rs 0.01 crore on the back of an OI of INR2.71 crore in FY14. BRAHMA REFRACTORIES: CRISIL Reaffirms B+ Rating on INR62.5MM Loan ----------------------------------------------------------------- CRISIL's ratings on the bank facilities of Brahma Refractories Private Limited (BRPL) continue to reflect the company's modest scale of operations and large working capital requirement. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 20 CRISIL A4 (Reaffirmed) Cash Credit 62.5 CRISIL B+/Stable (Reaffirmed) Proposed Non Fund based limits 6.3 CRISIL A4 (Reaffirmed) These weaknesses are partially offset by its promoter's extensive experience in the refractory business, and it's improving financial risk profile because of low gearing and adequate debt protection metrics. Outlook: Stable CRISIL believes BRPL will continue to benefit from its promoter's extensive industry experience. The outlook may be revised to 'Positive' if the company reports more-than-expected sales, stable operating margin, and reduced working capital cycle. Conversely, the outlook may be revised to 'Negative' in case of weakening of working capital management or large debt-funded capital expenditure or substantial decline in operating margin, leading to pressure on financial risk profile. BRPL, incorporated in 2005 by Mr. Surendra Kumar Sinha, manufactures refractory bricks, refractory mortars, and high- alumina castables. It is based in Dhanbad (Jharkhand). BRUHAT BENGALURU: ICRA Withdraws IrB Issuer Rating -------------------------------------------------- ICRA has withdrawn the issuer ratings assigned to the 15 urban local bodies (ULBs) under Jawaharlal Nehru National Urban Renewal Mission (JNNURM). The rating withdrawals follow the completion of the mandate awarded to ICRA by the Ministry of Urban Development, Government of India. ULB-wise ratings withdrawn by ICRA have been shown in the table below: S. Previous No. ULBs Rating Action Rating --- ---- ------------- --------- 1 Bruhat Bengaluru Mahanagara Palike Withdrawn IrB 2 Coimbatore City Municipal Corporation Withdrawn IrBBB+ 3 Corporation of Chennai Withdrawn IrBBB+ 4 Corporation of Cochin Withdrawn IrBBB- 5 Corporation of Thiruvananthapuram Withdrawn IrBBB- 6 Jammu Municipal Corporation Withdrawn IrBB- 7 Madurai Municipal Corporation Withdrawn IrBBB+ 8 Municipal Corporation, Amritsar Withdrawn IrBB+ 9 Municipal Corporation, Chandigarh Withdrawn IrA+ 10 Municipal Corporation, Faridabad Withdrawn IrBBB- 11 Municipal Corporation, Ludhiana Withdrawn IrBBB- 12 Municipal Corporation, Shimla Withdrawn IrBB 13 Mysore City Corporation Withdrawn IrBBB+ 14 Puducherry Municipality Withdrawn IrBB 15 Srinagar Municipal Corporation Withdrawn IrBB- ER. UMAKANT: CRISIL Suspends 'C' Rating on INR60MM Term Loan ------------------------------------------------------------ CRISIL has suspended its rating on the bank facility of ER. Umakant Goel Memorial Education Society (EUGM). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 60 CRISIL C The suspension of ratings is on account of non-cooperation by EUGM with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, EUGM is yet to provide adequate information to enable CRISIL to assess EUGM's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings' EUGM, a Bareilly (Uttar Pradesh) based society, promotes Lakshya Institute of Mangement and Information Technology (LIMIT) and Lakshya Technical Campus which offer management and engineering courses. ESSKAY MACHINERY: CRISIL Reaffirms B- Rating on INR70MM Loan ------------------------------------------------------------ CRISIL's ratings on the bank facilities of Esskay Machinery Private Limited (Esskay) continue to reflect Esskay's weak financial risk profile because of subdued capital structure and debt protection metrics, and large working capital requirement. These weaknesses are partially offset by the company's established client relationships. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 48 CRISIL A4 (Reaffirmed) Cash Credit 70 CRISIL B-/Stable (Reaffirmed) Letter of Credit 20 CRISIL A4 (Reaffirmed) Working Capital Demand Loan 7 CRISIL B-/Stable (Reaffirmed) Outlook: Stable CRISIL believes Esskay will benefit over the medium term from its established customer relationships and its promoters' extensive industry experience. The outlook may be revised to 'Positive' in case of infusion of substantial long-term funds or sharp improvement in cash accrual, strengthening liquidity. Conversely, the outlook may be revised to 'Negative' in case of larger-than- expected capital expenditure or stretch in working capital cycle, leading to deterioration in financial risk profile. Esskay, based in Bhubaneswar, manufactures customised machinery, including heat exchangers, liquefied petroleum bullet tanks, waste heat recovery boilers, and fabricated heavy steel structures. Manishri Refractories & Ceramics Pvt Ltd took over Esskay in 2006, and holds 80 percent stake. EXIMPIPES PVT: CRISIL Cuts Rating on INR106MM Cash Loan to 'B' -------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Eximpipes Pvt Ltd (EPPL) to 'CRISIL B/Stable' from 'CRISIL B+/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 106 CRISIL B/Stable (Downgraded from 'CRISIL B+/Stable') Long Term Loan 29 CRISIL B/Stable (Downgraded from 'CRISIL B+/Stable') The downgrade reflects CRISIL's belief that EPPL's business risk profile will remain constrained over the medium term because of pressure on profitability, and financial risk profile will weaken on account of increasing debt to fund its incremental working capital requirements resulting in leveraged capital structure and low interest coverage ratio. Although, sales improved to INR618.5 million in 2014-15 (refers to financial year, April 1 to March 31), EPPL reported net loss of INR6 million because of lower capacity utilisation and realisations. The rating reflects weak financial risk profile because of small networth, high gearing, and subdued debt protection metrics. The rating also factors in large working capital requirement and exposure to intense competition in the roofing sheets industry. These weaknesses are partially offset by promoters' extensive industry experience and established relationships with customers and suppliers. Outlook: Stable CRISIL believes EPPL will continue to benefit from its promoters' extensive industry experience. The outlook may be revised to 'Positive' in case of higher-than-expected accrual or substantial equity infusion, leading to improvement in financial risk profile, particularly capital structure and liquidity. Conversely, the outlook may be revised to 'Negative' in case of lower-than- expected accrual or stretch in working capital cycle or large debt-funded capital expenditure, leading to deterioration in financial risk profile. EPPL, established in 2004, manufactures roofing material. Promoted by Mr. P Bhaskaran and his family, the company is based in Palakkad, Kerala. GAYATRI HI-TECH: ICRA Reaffirms D Rating on INR491.10cr Loan ------------------------------------------------------------ ICRA has reaffirmed the long term rating of [ICRA] D for INR537.00 crore bank facilities of Gayatri Hi-Tech Hotels Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loan 491.10 [ICRA]D reaffirmed Cash Credit 18.00 [ICRA]D reaffirmed Long Term Non- Fund Based Limits 26.80 [ICRA]D reaffirmed Unallocated 1.10 [ICRA]D reaffirmed The rating reaffirmation factors in the continued delays in interest servicing by GHHL on the funded interest term loan following the restructuring of its term loans of Rs 395.95 crore under the Corporate Debt Restructuring (CDR) in June 2014. The occupancy level for GHHL's 252 rooms (including 43 service apartments) 5-Star hotel at Banjara Hills in Hyderabad though improved to 38% for its third year of operations during FY15 against 23% during FY14, backed by improved political situation in the state, the hotel has not able to generate surplus fund from its operations (EBITDA of Rs -5.28 cr for FY15). With marginal improvement in occupancy levels during H1 FY16, the debt servicing during the current year is contingent upon external funding by the promoters and this is expected to continue in the medium term as GHHL has large upcoming debt repayments. Further the hotel occupancy levels in Hyderabad region are expected to remain subdued owing to oversupply of rooms in last few years and prolonged demand slowdown. Thus, timely infusion of funds by the promoters will remain critical to ensure regularity in servicing its debt obligations in the medium term. Gayatri Hi- Tech Hotels Limited (GHHL) has set up a 5-Star luxury hotel consisting of 209 rooms (including 24 suites) and 43 serviced apartments at Hyderabad. The integrated hotel cum- serviced apartment project is operational since April 2012 under the brand name of Park Hyatt with specialty restaurants, lounge, bar, meeting rooms, board rooms, banqueting facility, swimming pool, health club and spa. The company has entered into a 25 year agreement with Hyatt Hotels for operations and marketing of the hotel. Promoted by Mr. T Subarami Reddy, GHHL is a closely held public limited company. The promoter group also has interests in construction, real-estate development, sugar, chemicals, film screening and financial services through separate companies. GREENLINE ECOFAB: Ind-Ra Assigns B+ Long-Term Issuer Rating ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Greenline Ecofab Pvt. Ltd (GEPL) a Long-Term Issuer Rating of 'IND B+'. The Outlook is Stable. KEY RATING DRIVERS The ratings factor in GEPL's small scale of operations and moderate credit metrics. Revenue was INR122 mil. in FY15 (FY14: INR22 mil.), EBITDA interest coverage (operating EBITDA/gross interest expense) was 2.5x (negative 0.2x) and net financial leverage (adjusted net debt/operating EBITDA) was 4.9x (4.2x). However, EBITDA margin improved to 7.7% in FY15 (FY14: negative 3.1%) due to a change in the business model from manufacturing non-woven fabrics to knitted garments. Also, liquidity is comfortable with the fund-based facilities being utilized at an average of 44.5% over the 12 months ended November 2015. The ratings are supported by the more than two decades of experience of the company's promoter in the same line of business. RATING SENSITIVITIES Positive: Any substantial growth in the top line along with an improvement in the EBITDA margin leading to a sustained improvement in the credit metrics could be positive for the ratings. Negative: Any deterioration in the EBITDA margin leading to sustained deterioration in the credit metrics could be negative for the ratings. COMPANY PROFILE Incorporated in 2011, GEPL had commenced commercial production of non-woven fabrics in 2012 and changed the business model to knitted garments in FY15. The company has a manufacturing unit in Surat, Gujarat. GEPL ratings: -- Long-Term Issuer Rating: assigned 'IND B+', Outlook Stable -- INR63 mil. long-term loan: assigned 'IND B+'/Stable -- INR25 mil. fund-based facilities: assigned 'IND B+'/Stable/'IND A4' GRITTON CERAMICS: CRISIL Reaffirms B+ Rating on INR85MM Loan ------------------------------------------------------------ CRISIL's ratings on the bank facilities of Gritton Ceramics Private Limited (GCPL) continue to reflect its small scale of operations in the highly competitive ceramic industry and large working capital requirement. These weaknesses are partially offset by promoters' extensive industry experience and comfortable capital structure. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 15 CRISIL A4 (Reaffirmed) Cash Credit 85 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes GCPL will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the company stabilises operations in a timely manner, leading to larger-than-expected cash accrual, or improves its working capital cycle. Conversely, the outlook may be revised to 'Negative' in case of lower-than-expected accrual due to reduced order flow or profitability, or weakening of financial risk profile because of stretch in working capital cycle or larger-than-expected debt-funded capital expenditure. Update GCPL commenced commercial operations in August 2014, and registered net sales of INR101.4 million in eight months of operations in 2014-15 (refers to financial year, April 1 to March 31). Because of initial phase of operations, net sales are expected to remain small, at INR250-280 million in 2015-16. Operating profitability is expected to be modest, at 4-5 percent. Working capital requirement will remain large, with gross current assets expected at 150-160 days because of large raw material inventory. Bank limit utilisation averaged 58 percent over the 12 months through November 2015. GCPL's financial risk profile is expected to remain average because of subdued debt protection metrics. However, capital structure will remain comfortable, with gearing expected below 1.5 times over the medium term. GCPL, incorporated in 2014, is promoted by Ahmedabad (Gujarat)- based Mr. Ashok Garg, Mr. Pervinderkumar Mechu, and Mr. Rameshbhai Patel. The company manufactures ceramic wall tiles. GVS PROJECTS: ICRA Reaffirms B+ Rating on INR11.50cr Loan --------------------------------------------------------- ICRA has reaffirmed the long term rating of [ICRA]B+ assigned to INR11.50 crore fund based limits and INR3.50 crore unallocated limits of GVS Projects Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based limits 11.50 [ICRA]B+ re-affirmed Unallocated limits 3.50 [ICRA]B+ re-affirmed The reaffirmation of rating continues to be constrained by GVS's small scale of operations in the electrical and civil construction segment and the relatively low complexity of contracts undertaken coupled with significant competitive pressures resulting in thin profitability indicators. The rating is further constrained by stretched liquidity position of the company as evident from full utilization of working capital limits and vulnerability of profitability to volatility in raw material prices mainly steel and copper as the contracts are mainly fixed priced in nature. This apart, the rating considers high sectoral and geographic concentration risks with operations largely focused on electrical contracts for 'Eastern Power Distribution Company of Andhra Pradesh Limited', which resulted in revenue volatility in the past. The rating is however supported by decade long experience of the promoters in the electrical contracts and the established relationship with clients & timely execution of projects resulting in repeat orders. Going forward, the ability of the company to improve its profitability and manage its working capital requirements will be key rating sensitivities from credit perspective. Incorporated in 2003 by Mr. G. Balaji, Mrs. G. Sai Rathnam and Mr. R. Sumanth, GVS Projects Private Limited (GVS) is a class-I electrical and civil contractor in Andhra Pradesh executing projects involving HT & LT substations, transmission lines, external & internal electrification and underground cabling works for government and private clients. The company also undertakes civil construction works for substations, electrical control buildings and other minor civil construction projects. Company has an order book of INR69.73 crore as on October 31, 2015. Recent Results GVS has reported an operating income of INR28.40 crore and net profit of INR1.06 crore in FY2014 as against an operating income and net profit of INR40.25 crore and INR1.51 crore in FY2015 (provisional and un-audited). HASTALLOY INDIA: CRISIL Reaffirms B+ Rating on INR55MM Cash Loan ---------------------------------------------------------------- CRISIL's ratings on the bank facilities of Hastalloy India Limited (HIL) continue to reflect the company's small scale of operations, weak financial risk profile because of a small net worth, high gearing, and weak debt protection metrics, and working capital- intensive nature of operations. These rating weaknesses are partially offset by the extensive experience of HIL's promoter in manufacturing alloy steel castings, and established relationship with customers. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 45 CRISIL A4 (Reaffirmed) Cash Credit 55 CRISIL B+/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 50 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes HIL will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if there is a substantial and sustained increase in revenue and profitability margins, or a considerable improvement in the networth on the back of sizeable equity infusion. Conversely, the outlook may be revised to 'Negative' in case of a steep decline in profitability margins, or significant deterioration in the company's capital structure caused most likely by large, debt-funded capital expenditure or a stretch in its working capital cycle. Incorporated in 1981 by Mr. G V K Rao, HIL manufactures alloy steel castings of various grades. The current promoter, Mr. K Eashwar, acquired HIL in 2006-07 (refers to financial year, April 1 to March 31). The company is based in Hyderabad. HILLWOOD IMPORTS: CRISIL Reaffirms B+ Rating on INR10MM Loan ------------------------------------------------------------ CRISIL's ratings on the bank facilities of Hillwood Imports and Exports Private Limited (HIEPL; part of the Hillwood group) continue to reflect the Hillwood group's below-average financial risk profile because of high gearing and small networth, modest scale of operations, and exposure to intense competition in the timber industry. These weaknesses are partially offset by promoter's extensive experience in the timber trading business. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 10 CRISIL B+/Stable (Reaffirmed) Letter of Credit 200 CRISIL A4 (Reaffirmed) For arriving at its ratings, CRISIL has combined the business and financial risk profiles of HIEPL and Hillwood Furniture Pvt Ltd (HFPL). This is because both the companies, together referred to as the Hillwood group, are in a similar line of business, share a common management team, and have fungible cash flows. Outlook: Stable CRISIL believes the Hillwood group will continue to benefit over the medium term from its promoter's industry experience. The outlook may be revised to 'Positive' if financial risk profile improves significantly, supported by increase in revenue and considerable improvement in operating margin. Conversely, the outlook may be revised to 'Negative' if financial risk profile weakens because of large debt-funded capital expenditure or decline in operating margin, or if increase in working capital requirement weakens liquidity. HFPL and HIEPL, based in Kerala, were incorporated during 2001-02 and are engaged in processing of timber logs. HFPL is also engaged in manufacturing of building materials such as window, door and kitchen frames. HFPL primarily deals in teak wood whereas HIEPL deals mostly in hardwood. K. KOTESWARA: CRISIL Assigns B+ Rating to INR40MM Loan ------------------------------------------------------ CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of K. Koteswara Reddy (KKR). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 70 CRISIL A4 Secured Overdraft Facility 40 CRISIL B+/Stable The rating reflects KKR's modest scale- and working capital intensive nature of operations, with geographical concentration in the intensely competitive civil construction segment. These rating weaknesses are partially offset by promoters' extensive experience in the civil construction industry. Outlook: Stable CRISIL believes that KKR will benefit over the medium term from the extensive experience of its promoters in the civil construction industry. The outlook may be revised to 'Positive', if KKR increases its scale of operations and operating profitability on a sustained basis over the medium term there by leading to an improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative', if the firm undertakes any significant debt funded capital expenditure or if its revenues and operating profitability decline leading to deterioration in its financial risk profile. Incorporated in the year 1998, KKR is based out of Hyderabad (Telangana) and promoted by Mr.K.Koteswara Reddy. The firm is engaged in undertaking civil contract primarily related to construction of roads in Andhra Pradesh, Telangana and Maharashtra. KKR reported a profit after tax (PAT) of INR6.4 million on a net sales of INR158 million for 2014-15 (refers to financial year April 1 to March 31) as against a PAT of INR6.7 million on a net sales of INR188 million for 2013-14. K. MAGANLAL: Ind-Ra Affirms BB+ Long-Term Issuer Rating ------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed K. Maganlal Impex's (KMI) Long-Term Issuer Rating at 'IND BB+'. The Outlook is Stable. Ind-Ra has also affirmed the company's INR110 mil. fund-based working capital limits at 'IND BB+' with a Stable Outlook. KEY RATING DRIVERS The affirmation reflects KMI's moderate financial profile due to volatility in diamond prices and exchange rates as most of its revenue is derived from exports to countries such as Hong Kong, Belgium and Dubai. In FY15, the company's revenue was moderate at INR1,248 mil. (FY14: INR1,284 mil.), EBITDA margins were low at 1.4% (1.3%), EBITDA interest coverage was moderate at 1.9x (2x) and net financial leverage was high at 7.1x (5x). The debt increased to INR125 mil. during FY15 from INR94m during FY14. The ratings also reflect KMI's tight liquidity profile with full utilization of its working capital limits for the 12 months ended November 2015 along with instances of over utilization which were regularized within 28 days. The ratings are constrained by the partnership nature of KMI's business. The ratings are, however, supported by over 10 years of experience of KMI's founders in the diamond business. RATING SENSITIVITIES Positive: An improvement in the scale of operations while maintaining the profitability will be positive for the ratings. Negative: A decline in the scale of operations will be negative for the ratings. COMPANY PROFILE Incorporated in 2002, KMI is a partnership firm engaged in the import of rough diamonds and manufacturing, cutting and export of polished diamonds. KMI is a member of the Gem & Jewellery Export Promotion Council. It has its registered office in Mumbai and a factory in Gujarat. The firm is managed by Kalubhai Jivabhai Dudhat, Maganlal Jivabhai Dudhat and Dineshbhai Jivabhat Dudhat. L N CONSTRUCTIONS: CRISIL Reaffirms B- Rating on INR40MM Loan ------------------------------------------------------------- CRISIL's ratings on the bank facilities of L N Constructions (LN) continue to reflect the firm's modest scale and working capital- intensive nature of operations and below-average financial risk profile because of a small networth and below-average debt protection metrics. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 70 CRISIL A4 (Reaffirmed) Cash Credit 40 CRISIL B-/Stable (Reaffirmed) These rating weaknesses are partially offset by the extensive experience of the firm's promoters in the construction industry. Outlook: Stable CRISIL believes LN will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if there is a substantial and sustained increase in revenue and profitability margins, or sustained improvement in working capital management. Conversely, the outlook may be revised to 'Negative' in case of a steep decline in profitability margins, or significant deterioration in the firm's capital structure caused most likely by large, debt-funded capital expenditure or a stretched working capital cycle. LN was established as a partnership concern by Mr. Sudarshan Reddy and his family in 2004. The firm undertakes construction of irrigation projects, roads, and bridges for the Government of Andhra Pradesh and the Indian Railways. It is based in Hyderabad. MA SARADA: ICRA Cuts Rating on INR4.01cr Term Loan to D ------------------------------------------------------- ICRA has revised downwards the long term rating assigned to the INR4.01 crore term loan, INR0.80 crore working capital and INR0.75 crore seasonal cash credit facilities of Ma Sarada Cold Storage Private Limited from [ICRA]C+ to [ICRA]D. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loan 4.01 [ICRA]D downgraded Working Capital 0.80 [ICRA]D downgraded Seasonal Cash Credit 0.75 [ICRA]D downgraded The rating revision primarily takes into account MSCPL's stretched liquidity position because of high receivables and large advances extended to the farmers resulting in delays in timely servicing of debt obligations. The rating also considers the company's small scale of operations at present, adverse financial profile as reflected by high gearing, depressed coverage indicators and subdued return on capital employed. The rating is further constrained by the regulated nature of industry, making it difficult to pass on increase in operating costs, thus exerting pressure on the profitability, and MSCPL's exposure to agro- climatic risks, with its business performance being entirely dependent upon an agro commodity, i.e. potato, which is further accentuated by the fact that the loans extended to farmers by MSCPL may lead to delinquency, if potato prices fall to a low level. ICRA notes that although the potato prices have fallen significantly in the current financial year, no delinquency has been observed by MSCSPL. The rating, takes note of the established track record of the company in the cold storage business, with an experience of around three decades of the promoters, and locational advantage of MSCSPL by way of presence of its cold storage unit in West Bengal, a state with large potato production. The recent increase in rental by the State Government is likely to provide cushion to the profitability of the company atleast over the near term. Going forward, the ability of the entity to improve its scale of operations and profitability while repaying the debt obligations in a timely manner shall remain key rating sensitivities. Incorporated in 1987, Ma Sarada Cold Storage Private Limited is engaged in providing cold storage facility to potato farmers and traders on a rental basis. The facility of the company is located in Bankura district of West Bengal having an annual storage capacity of 21,052 metric tonnes. Recent Results During FY15, MSCSPL reported a net profit of INR0.08 crore on an OI of INR4.29 crore as against a net profit of INR0.04 crore and OI of INR4.36 crore during FY14. N.C. JOHN: Ind-Ra Assigns BB+ Long-Term Issuer Rating ----------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned N.C.John & Sons (P) Ltd. (NCJ) a Long-Term Issuer Rating of 'IND BB+'. The Outlook is Stable. The agency has also assigned NCJ's INR275 mil. fund based working capital facility a long-term rating of 'IND BB+' with a Stable Outlook and a Short-term rating of 'IND A4+'. KEY RATING DRIVERS The ratings reflect the moderate credit metrics and volatile profitability of NCJ. Net leverage during FY15 was 3.6x (FY14: 2.2x) and EBITDA interest coverage was 2.2x (3.3x). EBITDA margins ranged between 4%-8% over the four years ended March 2015 on account of raw material price fluctuations. However, the liquidity position is comfortable with the fund-based facilities being utilized at an average of 21% over the 12 months ended October 2015. The ratings are supported by the over 70 years of experience of the company's promoters in manufacturing floor coverings. The ratings also factor in the sustained yoy growth in the top line to INR1,338 mil. in FY15 (FY14: INR1,208 mil.; 1HFY16: INR710 mil.). RATING SENSITIVITIES Positive: Substantial growth in the top line and stable profitability leading to a sustained improvement in the credit metrics and a comfortable liquidity position will lead to a positive rating action. Negative: Continued volatility in the profitability resulting in a sustained deterioration in the credit profile of the company will lead to a negative rating action. COMPANY PROFILE Incorporated in 1943, NCJ manufactures floor coverings made of coir, jute, rubber and sisal. NCJ started a hosiery garment manufacturing unit in Tirupur in the early 90s. Garments contribute around 15% to the revenue on an average and floor coverings contribute the remaining 85%. 95% of the total revenue comes from exports to the EU and the US. ONYX BIOTEC: CRISIL Assigns B+ Rating to INR60.9MM Term Loan ------------------------------------------------------------ CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facilities of Onyx Biotec Private Limited (OBPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 24 CRISIL B+/Stable Term Loan 60.9 CRISIL B+/Stable The rating reflects OBPL's small scale of operations in the highly fragmented pharmaceutical industry, susceptibility of the company's operating margin to fluctuations in raw material prices and project related risk associated with the on-going capital expenditure. These rating weaknesses are partially offset by a moderate financial risk profile because of adequate gearing and comfortable debt protection metrics, and promoters' extensive industry experience. Outlook: Stable CRISIL believes OBPL will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' in case of an increase in scale of operations while profitability is sustained or timely stabilization of the on-going debt-funded capital expenditure being undertaken by the company. Conversely, the outlook may be revised to 'Negative' in case of significant pressure on profitability, or time or cost over runs in the on-going capital expenditure, or an increase in working capital requirement, thereby weakening the financial risk profile. OBPL, incorporated in 2006, was taken over by the present management comprising of Mr. Naresh Mahajan, Mr. Sanjay Jain, and Mr. S P Singh in 2009. The company manufactures sterile water injections of different compositions (5-30 millilitres). It also manufactures sodium chloride-based sterile water injections of 5 ml and 10 ml capacities. Its manufacturing facility at Nalagarh, Himachal Pradesh, has an installed capacity of 4.5 Lakhs viles per annum. Profit after tax (PAT) was INR9.8 million on net sales of INR253.0 million in 2014-15 (refers to financial year, April 1 to March 31), vis-a-vis a PAT of INR6.5 million on net sales of INR174.7 million in 2013-14. OYO CERAMIC: ICRA Reaffirms B+ Rating on INR3.92cr Term Loan ------------------------------------------------------------ ICRA has reaffirmed the [ICRA]B+ rating assigned to the INR6.42 crore (reduced from INR7.36 crore) long term fund based facilities of Oyo Ceramic Private Limited. ICRA has also reaffirmed the [ICRA]A4 rating assigned to the INR1.80 crore short-term non-fund based facility and INR1.25 crore short-term fund based facility (sub-limit of Cash Credit) of OCPL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 2.50 [ICRA]B+ reaffirmed Term Loan 3.92 [ICRA]B+ reaffirmed Bank Guarantee 1.80 [ICRA]A4 reaffirmed Bill discounting 1.25 [ICRA]A4 reaffirmed The reaffirmation of ratings factor in OCPL's modest scale of operations with limited track record and weak financial profile of the company with net losses reported during FY15, leveraged capital structure, weak debt coverage indicators and high working capital intensity. Further, the ratings are constrained by OCPL's limited product portfolio comprising only ceramic wall tiles which restricts its sales prospects and dealings with large institutional buyers and the highly fragmented nature of the tiles industry which results in intense competitive pressures. The ratings also take into account the cyclical nature of the real estate industry which is the main consuming sector and exposure of profitability of the company to fluctuating prices of raw materials and gas which is the major fuel. The ratings, however, take comfort from the past experience of the founder promoter in the ceramic industry and the marketing support drawn from the group companies engaged in the similar line of business. The ratings also take into account the company's competitive advantage in raw material procurement on account of its favourable location in Morbi. Incorporated in February 2014, Oyo Ceramic Private Limited (OCPL) commenced commercial production of ceramic wall tiles in November 2014. The manufacturing facility of the company is located at Morbi in Rajkot district of Gujarat with an installed capacity of 30,000 Metric Tonnes Per Annum (MTPA). OCPL manufactures digitally printed ceramic wall tiles of size 12" X 18". The promoters of the company have experience in ceramic industry owing to their association with the group concerns like M/s Lexo Ceramic, Blue Lake Ceramic, Wipro Marketing and Romex Tiles Pvt. Ltd. Recent Results During its five months of operations (from November 2014 to March 2015), the company has reported an operating income of INR6.71 crore and net loss of INR0.06 crore for FY15. PRINCE YARNN: ICRA Ups Rating on INR12.81cr Term Loan to B+ ----------------------------------------------------------- ICRA has upgraded the long-term rating to [ICRA]B+ from [ICRA]B outstanding on the INR12.81 crore term loan facilities, INR7.00 crore cash credit facilities and INR2.00 crore non-fund based facilities of Prince Yarnn India Limited. ICRA has reaffirmed the short term rating at [ICRA]A4 outstanding on the INR3.00 crore non-fund based facilities of the Company. Amount Facilities (INR crore) Ratings ---------- ----------- ------- LT-Term loan facilities 12.81 [ICRA]B+/Upgraded from [ICRA]B LT-Cash Credit Facilities 7.00 [ICRA]B+/Upgraded from [ICRA]B LT - Bank Guarantee 2.00 [ICRA]B+/Upgraded from [ICRA]B LT - Unallocated facilities 0.02 [ICRA]B+/Upgraded from [ICRA]B ST - Fund based facilities 3.00 [ICRA]A4/Reaffirmed The rating upgrade takes into account the healthy growth in the revenues and margins at the net level over the last two years easing the liquidity position of the Firm. With no major debt funded capital expenditure envisaged in the medium term, the capitalisation and coverage indicators are expected to improve going forward. The ratings continue to derive support from the long-standing experience of the promoters in the spinning industry, the stable operational performance of the Firm and favourable domestic demand for viscose yarn. The ratings however continue to remain constrained by the Firm's small scale of operations restricting scale economies and the intense competition prevalent in the highly fragmented industry, restricting pricing flexibility to an extent. PYIL, incorporated on January 22, 2007, is engaged in producing viscose yarn in the range of 10s to 40s counts with a capacity of 16,128 spindles. Based in Erode, Tamil Nadu, the Firm procures viscose staple fibre from Grasim Industries Limited and caters completely to the domestic market including Pallipalayam (Tamil Nadu), Mumbai (Maharashtra), Bhiwandi (Maharashtra), Kolkata (West Bengal) and Uttar Pradesh. Recent Results According to the audited financials for 2014-15, the Firm reported a PAT of INR1.1 crore on an operating income of INR52.4 crore. For the financial year 2013-14, the Firm reported a net profit of INR1.5 crore on an operating income of INR47.4 crore. PURUSHOTTAM JAIRAM: CRISIL Ups Rating on INR90MM Loan to B- ----------------------------------------------------------- CRISIL has upgraded its ratings on the bank facilities of Purushottam Jairam & Co (PJC) to 'CRISIL B-/Stable' from 'CRISIL C'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 25 CRISIL B-/Stable (Upgraded from 'CRISIL C') Letter of Credit 90 CRISIL B-/Stable (Upgraded from 'CRISIL C') The upgrade follows reduction in the stress on the firm's liquidity, supported by enhanced fund-based working capital limits. Also, there has not been any irregularity in the bank lines over the past few months. The ratings reflect PJC's weak liquidity, driven by a stretched working capital cycle, leading to almost fully utilised cash credit limits. The ratings also factor in the weak financial risk profile because of an aggressive capital structure and inadequate debt protection metrics, the modest scale of operations, and the exposure to risks relating to changes in regulatory policies regarding timber import. These rating weaknesses are partially offset by the extensive experience of PJC's promoters in the timber business and their continued fund support. Outlook: Stable CRISIL believes PJC's business risk profile will continue to benefit from its longstanding presence in the timber industry. The outlook may be revised to 'Positive' if the financial risk profile improves significantly most likely on account of fund infusion by partners or the accrual increases considerably, coupled with an improved working capital cycle. Conversely, the outlook may be revised to 'Negative' if the financial risk profile weakens, most likely because of a stretch in the working capital cycle, or a decline in the revenue and profitability. PJC was originally established in 1964 as a proprietorship firm by Mr. Purushottam Jairam Tank, and later was reconstituted as a partnership between Mr. Purushottam Jairam Tank and Mr. Mitesh Tank. The firm trades in and processes timber logs. It has a timber-processing plant in Lakadganj, Nagpur (Maharashtra). RADHESHYAM INDUSTRIES: CRISIL Reaffirms B+ Rating on INR120M Loan ----------------------------------------------------------------- CRISIL's rating on the long-term bank facility of Radheshyam Industries (RI) continues to reflect the firm's modest scale of operations in a highly fragmented industry, exposure to intense competition, and susceptibility to changes in government policies. These weaknesses are partially offset by its partners' extensive experience in the cotton industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 120 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes RI will continue to benefit over the medium term from its partners' extensive industry experience. The outlook may be revised to 'Positive' in case of significantly higher-than- expected accrual driven by substantial increase in revenue or sustained improvement in operating profitability. Conversely, the outlook may be revised to 'Negative' if financial risk profile weakens because of increase in working capital requirement, or sizeable debt-funded capital expenditure (capex), or larger-than- expected capital withdrawal. Update RI's revenue increased 9 percent year-on-year to INR1.07 billion in 2014-15 (refers to financial year, April 1 to March 31) because of volume growth. Operating profitability improved to 1.5 percent in 2014-15 from 1.3 percent in 2013-14. Profit after tax increased to INR5 million from INR1.3 million. However, because of capital withdrawal of INR8.3 million, accrual was negative. Revenue was INR580 million for the eight months through November 2015. However, CRISIL believes revenue will remain subdued over the medium term because of expected weakness in cotton prices. Gearing increased to 2.98 times as on March 31, 2015, from 0.82 time a year earlier on account of increase in working capital debt. Networth was modest, at INR40 million. CRISIL believes financial risk profile will improve marginally as reserves accrue and as the firm plans no debt-funded capex. Debt protection metrics were modest, with interest coverage ratio at 1.5 times in 2014-15. RI has moderate working capital requirement, indicated by gross current assets of 60 days as on March 31, 2015. However, because of low accrual, working capital limit was utilised extensively, at an average of 90 percent during the peak season (October-March) and 35-40 percent during the off-season in the cotton season 2014- 15. RI's liquidity is supported by unsecured loans from partners, at INR31.6 million as on March 31, 2015. CRISIL expects cash accrual at INR4 million per annum over the medium term against nil debt obligation. RI was set up in 2008 as a partnership firm by Mr. Barkatali Bhimjibhai, Mr. Amarshibhai Aambabhai, Mr. Samsudinbhai Sadrudinbhai, Mr. Akbarali Bhimjibhai, Mr. Yogeshbhai Dirubhai, Mr. Nagjibhai Aambabhai, Mr. Firojali Pyarlibhai, and Mr. Alkeshbhai Sirajbhai. It has a cotton ginning and pressing unit in Amreli (Gujarat). RAGHU RAMA: ICRA Reaffirms 'B' Rating on INR15.68cr Loan -------------------------------------------------------- ICRA has reaffirmed the long term rating of [ICRA]B assigned to INR15.68 crore (revised from INR13.96 crore) fund based limits and INR0.32 crore (revised from INR2.04 crore) unallocated limits of Raghu Rama Rice Industry. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based limits 15.68 [ICRA]B re-affirmed Unallocated limits 0.32 [ICRA]B re-affirmed The reaffirmation of rating continues to be constrained by RRRI's weak financial profile characterized by low profitability indicators, high gearing, modest coverage indicators, and constrained liquidity position. The ratings also consider small scale of operations in the rice milling industry and risks arising from partnership nature of the firm. The rating is further constrained by intensive competitive nature of the rice milling industry restricting operating margins and agro climatic risks, which can affect the availability of the paddy in adverse weather conditions. ICRA also notes that change in government policy on levy rice may also adversely affected the firm's revenues. The rating is however supported by the long track record of the promoters in the rice mill business; ease in paddy procurement due to plant location in major paddy cultivating region of the country; and favorable demand prospects of the industry with India being the second largest producer and consumer of rice internationally augurs well for the firm. Going forward, the firm's ability to improve its profitability and manage its working capital requirements will be key rating sensitivities from credit perspective. Founded in 2012 as a partnership firm, Raghu Rama Rice Industry (RRRI) is engaged in milling of paddy and produces raw and boiled rice. The firm started its operations from June 2013. The firm has a milling unit in Jagannadhagiri village of East Godavari district of Andhra Pradesh with an installed capacity of 8 tons per hour. Recent Results RRRI has reported an operating income of INR61.11 crore and net profit of INR0.09 crore respectively in FY2015 as against an operating income and net profit of INR49.88 crore and INR0.08 crore in FY2014. SAINATH ESTATES: CRISIL Suspends 'D' Rating on INR1.25BB Loan ------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Sainath Estates Private Limited (SEPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 1250 CRISIL D Cash Credit 650 CRISIL D Letter of Credit 50 CRISIL D The suspension of ratings is on account of non-cooperation by SEPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SEPL is yet to provide adequate information to enable CRISIL to assess SEPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key factor in its rating process as outlined in its criteria 'Information Availability - a key risk factor in credit ratings'. SEPL was set up in 1993 by Mr. K Premsagar Rao. The company undertakes residential and commercial real estate projects for the central and state governments. The company's day-to-day operations are managed by Mr. S Sathyanarayana Rao (son of Mr. K Premsagar Rao). The company is based out of Hyderabad, Andhra Pradesh. SANDOZ MERCHANTS: CRISIL Assigns B+ Rating to INR35MM Cash Loan --------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Sandoz Merchants Private Limited (SMPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 30 CRISIL A4 Cash Credit 35 CRISIL B+/Stable The ratings reflect the company's highly working-capital-intensive operations, its modest cash accruals and exposure to risks associated with the regulated nature of the jute industry. These weaknesses are partially offset by the promoters' extensive experience in the jute industry. Outlook: Stable CRISIL believes SMPL will continue to benefit over the medium term from the extensive experience of its promoters. The outlook may be revised to 'Positive' if the company registers substantial and sustained improvement in its scale of operations and profitability along with improved working capital management. Conversely, the outlook may be revised to 'Negative' if SMPL's revenue and cash accrual decline sharply, or if it undertakes a large debt-funded capital expenditure programme, or witnesses further stretch in its working capital cycle leading to weakening of its financial risk profile, particularly liquidity. SMPL, incorporated in 1995, is engaged in the business of stitching of jute bags and trading of jute products, including jute bags, jute yarn, and jute cloth. The company also trades in hessian sheet and cotton fabric. SMPL is promoted by Kolkata-based Agarwal family; Mr. Sajjan Agarwal and Mr. Amit Agarwal are the directors and manage its operations. SARVODAYA EDUCATION: CRISIL Assigns B Rating to INR250MM LT Loan ---------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the long term bank facility of Sarvodaya Education Society (SES). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 250 CRISIL B/Stable The rating reflects SES's weak financial risk profile and exposure to high risks pertaining to its ongoing project for setting up a Central Board of Secondary Education (CBSE)-affiliated school. These rating weaknesses are partially offset by an established track record of 56 years in providing quality education in Bengaluru. Outlook: Stable CRISIL believes SES will continue to benefit over the medium term from its established reputation in Bengaluru for providing quality education. The outlook may be revised to 'Positive' if the ongoing project is completed before schedule and there is healthy student intake in the coming academic year, leading to higher revenue, while surplus levels improve. Conversely, the outlook may be revised to 'Negative', in case of significant delay in the ongoing project, leading to further deterioration in the financial risk profile, particularly liquidity. SES was established by the late Mrs. Jayalakshmi Siddaiah in 1959. The society runs three schools in Bengaluru. Dr. B.Ramdas is the current president of the society. The day-to-day operations are handled by Dr. Vivekananda Siddiah, General Secretary. SES reported, a profit after tax (PAT) of INR2 million on operating income of INR36 million for 2014-15 (refers to financial year, April 1 to March 31); the Society reported a PAT of INR11 million on operating income of INR39 million for 2013-14. SAVINO CERAMIC: CRISIL Ups Rating on INR65MM Term Loan to B+ ------------------------------------------------------------ CRISIL has upgraded its rating on the long-term bank facilities of Savino Ceramic Private Limited (SCPL) to 'CRISIL B+/Stable' from 'CRISIL B/Stable', while reaffirming its rating on the short-term facility at 'CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 9.5 CRISIL A4 (Reaffirmed) Cash Credit 25.0 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') Proposed Long Term 0.5 CRISIL B+/Stable (Upgraded from Bank Loan Facility 'CRISIL B/Stable') Term Loan 65.0 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') The upgrade reflects CRISIL's belief that SCPL's business risk profile will improve over the medium term backed by stabilisation of its operations. Net sales were INR187.5 million and operating margin was moderate at 15.5 percent in 2014-15 (refers to financial year, April 1 to March 31). CRISIL believes revenue will grow at 15-20 percent per annum over the medium term. However, working capital management will remain a rating sensitive factor. The ratings reflect SCPL's working capital-intensive nature and modest scale of operations in the highly fragmented ceramic industry. These rating weaknesses are partially offset by the extensive industry experience of the company's promoters, and the favourable location of its plant, ensuring availability of raw material and labour while being near customers. Outlook: Stable CRISIL believes SCPL will continue to benefit over the medium term from the extensive industry experience of its promoters. The outlook may be revised to 'Positive' in case of improvement in the working capital management and more-than-expected growth in revenue and profitability, leading to higher accrual and hence to an improvement in the company's financial risk profile. Conversely, the outlook may be revised to 'Negative' if there is a significant decline in accrual, further deterioration in working capital management, or large debt-funded capital expenditure, resulting in weakening of the financial risk profile. Formed in 2012, SCPL is promoted by Morbi, Gujarat-based Mr. Vishal Kalaria, Mr. Manojbhai Patel, and Mr. Satish Vadsola. The company manufactures digital wall tiles; it begun production in October 2013. SAYAJI PACKAGING: ICRA Reaffirms B- Rating on INR2.5cr Loan ----------------------------------------------------------- ICRA has reaffirmed the long term rating of [ICRA]B- for the INR2.00 crore cash credit facility, INR2.50 crore term loans facility (reduced from INR3.00 crore) and unallocated limits of INR0.50 crore of Sayaji Packaging Private Limited. ICRA has also reaffirmed the short term rating of [ICRA]A4 for the INR2.00 crore non fund based facilities of SPPL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit Facility 2.00 [ICRA]B-; reaffirmed Term Loan 2.50 [ICRA]B-; reaffirmed Unallocated Limits 0.50 [ICRA]B-; reaffirmed Letter of Credit 2.00 [ICRA]A4 reaffirmed The reaffirmation of the ratings takes into account SPPL's small scale of operations and the slower than expected ramp up of revenues; its weak financial risk profile characterized by continuous operating losses, high gearing levels and inadequate debt protection metrics; and the need for funding support from the promoters over the short term to meet its debt obligations and losses. The ratings continue to be constrained by the high competitive intensity in the metal packaging business which limits pricing flexibility and profitability; the competition from alternative packaging materials; and the vulnerability of company's profitability to adverse fluctuations in the prices of the key raw material. The ratings, however, take comfort from the experience of SPPL's promoters and their long track record in the metal packaging business; and the favourable outlook for metal packaging products due to increasing demand for food and other applications. Incorporated in 2011, Sayaji Packaging Private Limited (SPPL) is engaged in manufacturing tin cans for food and non-food packaging applications. SPPL's manufacturing unit is located at Savli, Dist Vadodra in Gujarat and is equipped with a production capacity of approximately 150 lakh cans per annum. Commercial production at the unit commenced in October 2012. SPPL's promoters have longstanding experience in the manufacturing and marketing of tin cans used for packaging paints, adhesives, pesticides etc. by virtue of their association with other group companies namely Modern Packaging, Maker Packaging and Sayaji Metal Cans engaged in tin can manufacturing for non food packaging segment. Recent Results In FY15, SPPL reported an operating income of Rs 6.63 crore and net loss of INR1.64 crore as against an operating income of INR5.67 crore and net loss of Rs 1.57 crore during FY14. In H1 FY16 (provisional unaudited financials), SPPL recorded an operating income of INR5.88 crore. SHREE RAM: ICRA Lowers Rating on INR10cr Cash Loan to B+ -------------------------------------------------------- ICRA has revised downwards the rating assigned to the INR6.06 crore (enhanced from INR0.50 crore earlier) term loan and INR10.00 crore (enhanced from INR7.00 crore earlier) cash credit facilities of Shree Ram Rolling Mill from [ICRA]BB- to [ICRA]B+. ICRA has also assigned [ICRA]B+ rating to an untied limit of INR0.44 crore of SRRM. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limit- Term Loam 6.06 [ICRA]B+ downgraded Fund Based Limit- Cash Credit 10.00 [ICRA]B+ downgraded Fund Based Limit- Untied Limit 0.44 [ICRA]B+ ; assigned The revision in the rating primarily takes into account unfavourable demand scenario in the domestic market, leading to a de-growth in the top-line over the past two years and significant debt servicing obligations arising on account of term loan availed for expansion of the existing facilities, which is likely to keep its cash flows under pressure in the near term at least. ICRA notes that revival of the market scenario is unlikely to happen in the near term, which may continue to adversely impact SRRM's profitability and cash flows in the short term at least. The rating also factor in the weak financial profile of the firm characterized by high gearing, which is further likely to increase on account of the recent capital expenditure incurred, and nominal profits and cash accruals from the business, owing to the relatively small size of its current operations, though the recent expansion programme is likely to augment the firm's sales, going forward. Also, the risk of capital withdrawal in a partnership firm remains a concern. The rating, however, derive comfort from the established track record of the firm in the steel business and SRRM's partially integrated nature of operations, which provides cost competiveness to its operations to an extent. SRRM, was established as a partnership firm by the Raipur based Gidwani family in 2006. The plant of the firm is located at Rawabhata Industrial Area, Raipur (Chattisgarh). SRRM has facilities for manufacturing mild steel (MS) ingots/ billets and steel structurals with an annual capacity of 42,000 metric tonne (MT) and 15,000 MT per annum respectively. Recent Results During the first seven months of 2015-16, SRRM has reported a turnover of INR39.71 crore (provisional). During 2014-15, the firm reported a net profit of INR0.05 crore on an operating income of INR57.95 crore. SHRI MAHARANA: CRISIL Assigns 'B' Rating to INR59MM Cash Loan ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' ratings to the long-term bank facilities of Shri Maharana Chains (SMC). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 59 CRISIL B/Stable Proposed Long Term Bank Loan Facility 11 CRISIL B/Stable The ratings reflect SMC's modest scale of operations in intensely competitive domestic jewellery segment and below average financial risk profile marked by modest net worth, high gearing and weak debt protection metrics. These rating weaknesses are partially offset by the SMC's proprietor's extensive experience in gold jewellery manufacturing business. Outlook: Stable CRISIL believes that SMC will maintain its stable business risk profile over the medium term, backed by its proprietors' extensive industry experience. The outlook may be revised to 'Positive' if the firm reports a significant growth in revenues and profitability; or there is equity infusion, leading to improvement in financial risk profile. Conversely, the outlook may be revised to 'Negative' in case of significant decline in revenues and margins or lengthening of its working capital cycle leading to pressure on liquidity and financial risk profile. Setup in 2006 SMC is engaged in manufacturing of gold chains. The firm is promoted by Mr. Chunasingh Dasana. The firm has its manufacturing facility located in Mumbai (Maharashtra). SHRI REWA: CRISIL Assigns 'B' Rating to INR74.5MM Term Loan ----------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term bank facilities of Shri Rewa Rice Mills Pvt Ltd (SRRMPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 74.5 CRISIL B/Stable Cash Credit 70.0 CRISIL B/Stable Proposed Long Term Bank Loan Facility 5.5 CRISIL B/Stable The rating reflects SRRMPL's initial stage of operations in the highly fragmented rice industry, and below-average financial risk profile because of modest net worth and expected high gearing due to debt funded capital expenditure for project and working capital intensive operations. These weaknesses are partially offset by promoters' extensive experience in the trading of agricultural commodities and allied businesses and their funding support. Outlook: Stable CRISIL believes SRRMPL will benefit over the medium term from its promoters' extensive industry experience and established relationships with customers. The outlook may be revised to 'Positive' if SRRMPL reports better-than-expected revenue and profitability during initial phase of operations, resulting in higher cash accrual. Conversely, the outlook may be revised to 'Negative' in case of weakening of financial risk profile especially liquidity because of slow ramp-up in operations, or larger-than-anticipated working capital requirement. Incorporated in 2013, SRRMPL has set up a rice milling unit with processing capacity of 100 tonnes per day at Udaipura in Raisen (Madhya Pradesh). The company is promoted by Mr. Rajendra Singh Raghuvanshi and Mr. Sandeep Raghuvanshi. Its registered office is at Udaipura. SHRI WARDHMAN: CRISIL Cuts Rating on INR67MM Term Loan to 'B' ------------------------------------------------------------- CRISIL has downgraded its rating on the long term bank facilities of Shri Wardhman Takniki Shiksha Samiti, Jabalpur (SWTSS) to 'CRISIL B/Stable' from 'CRISIL B+/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 32 CRISIL B/Stable (Downgraded from 'CRISIL B+/Stable') Overdraft Facility 33 CRISIL B/Stable (Downgraded from 'CRISIL B+/Stable') Term Loan 67 CRISIL B/Stable (Downgraded from 'CRISIL B+/Stable') The downgrade reflects deterioration in SWTSS's credit profile, marked by a decline in fee income along with sustenance of high term repayment obligations. SWTSS' fee income declined to INR 105 million in 2014-15 (refers to financial year, April 1 to March 31) from INR 122 million in 2013-14, on account of intense competition from other colleges and institutes in Madhya Pradesh. The decline in scale of operations, in turn led to reduced cash accrual at INR 6.8 million for 2014-15. Further the entity's annual term repayment obligations of INR 9 million continue to remain high. CRISIL believes that the extent of fund infusion in form of equity or unsecured loans will remain key monitorables over the medium term. The ratings continue to reflect SWTSS's susceptibility to regulatory changes, geographic concentration in its operations, and its below-average financial risk profile. These rating weaknesses are partially offset by the society's established regional position in the education sector. Outlook: Stable CRISIL believes that SWTSS will continue to benefit over the medium term from increasing demand for technical courses and its established regional position. The outlook may be revised to 'Positive' if the society's financial risk profile improves because of more-than-expected fee income with improvement in operating margin, leading to larger-than-expected cash accruals. Conversely, the outlook may be revised to 'Negative' if its financial risk profile deteriorates because of lower-than-expected cash accruals or large debt-funded capital expenditure (capex). SWTSS was set up by the Jain family of Madhya Pradesh in 2006 in Jabalpur (Madhya Pradesh). The society has one institute, Gyan Ganga College of Technology, offering several courses in engineering and management. SUPER LIFESTYLE: Ind-Ra Assigns D Long-Term Issuer Rating --------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Super Lifestyle Diamonds Private Limited (SLDPL) a Long-Term Issuer Rating of 'IND D'. KEY RATING DRIVERS The ratings reflect SLDPL's tight liquidity leading to delays in debt servicing for the 12 months ended November 2015. RATING SENSITIVITIES Positive: Timely debt servicing for at least three consecutive months with a satisfactory track record of at least 90 days could result in a positive rating action. COMPANY PROFILE SLDPL was initially set up as partnership firm in 2002 and converted to private limited company in 2011. The company is into wholesale trading of gold and diamond jewelry and ornaments. SLDPL Ratings: -- Long-Term Issuer Rating: assigned Long-term 'IND D' -- INR85 mil. fund-based limits: assigned Long-term 'IND D' SVM CERA: ICRA Lowers Rating on INR5.50cr Cash Loan to D -------------------------------------------------------- ICRA has revised the long term rating from [ICRA]B to [ICRA]D for the INR5.50 crore cash credit facility of SVM Cera Limited. ICRA has also revised the short term rating from [ICRA]A4 to [ICRA]D for the INR2.80 crore letter of credit facility and INR0.50 crore bank guarantee (sublimit of letter of credit facility) of SCL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based-Cash Credit 5.50 Revised to [ICRA]D from [ICRA]B Non Fund Based- Letter of Credit 2.80 Revised to [ICRA]D from [ICRA]A4 Non Fund Based- Bank Guarantee (0.50) Revised to [ICRA]D from [ICRA]A4 The ratings revision of SVM Cera Limited (SCL) reflects instances of ongoing LC devolvements and recent delays on interest payment of working capital facilities. The ratings further incorporate tight liquidity position due to stretched receivables and high inventory levels resulting in high working capital utilization. The ratings also incorporate the low profitability given the limited value addition and high dependence on outsourcing. The ratings also take note of modest scale of operations which is in turn vulnerable to the business cycles in the ceramic tiles industry. The ratings further incorporate the intensely competitive business environment on account of the fragmented industry structure for the CGF segment and susceptibility of margins to raw material price volatility. ICRA also notes that the availability of gas at competitive prices remains critical for maintaining a competitive cost structure. The ratings, however, positively consider the long experience of the promoters in the Ceramic Glaze Frit (CGF) industry and strong customer profile consisting of some of the leading organized ceramic tile manufactures. The ratings also consider the location advantages given its presence in Morbi, the tile manufacturing hub. SVM Cera Limited (formerly known as M/s. Matalvuoto Films (India)) was incorporated in January 1986. With effect from 1st April 2014, the name of the company has been changed from erstwhile SVM Cera Tea Limited to SVM Cera Limited. The registered office of the company is located at 2, Biplabi Tarilokya Maharaj Sarani, Kolkata. The management of the company is handled by Mr. K.M. Bhanderi under the leadership of Chairman Mr. S.V. Mohta and other professional directors. Initially the company was engaged in real estate business. In 1994, the company diversified its area of operations by entering into the manufacturing of ceramic glaze frit by setting up a manufacturing unit in Ankleshwar with a total installed capacity of 14490 MTPA. However, on account of rising fuel prices and intense competition, the in-house production capacity has remained ideal and the company has relied entirely on the job work based production of CGF in the last two years. Recent Results During FY15, SCL reported an operating income of INR18.31 crore (as against INR15.54 crore during FY14) and net loss of INR0.42 crore (as against net profit of INR0.17 crore during FY14). SWAMI VIVEKANAND: Ind-Ra Assigns BB Long-Term Issuer Rating ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Swami Vivekanand Institute of Neurology Neurosurgery and Spine (SVINNS) a Long-Term Issuer Rating of 'IND BB'. The Outlook is Stable. The agency has also assigned the company's INR55.59 mil. term loans an 'IND BB' rating with Stable Outlook. KEY RATING DRIVERS The ratings reflect SVINNS's small scale of operations and moderate credit profile. In FY15, revenue was INR23 mil. (FY14: INR7 mil.), interest coverage (operating EBITDA/gross interest expense) was 11.7x (3.9x), net financial leverage (Ind-Ra adjusted net debt/operating EBITDAR) was 3.8x (1.1x). The ratings are constrained by the delays in the completion of SVINNS's building project, and the working capital intensive nature of its business as reflected by its 98% average use of the working capital limits over the 12 months ended November 2015. The ratings, however, benefit from the service provided by the hospital being the only of its kind in central India. It is a comprehensive facility to treat all type of patients with spine problems. RATING SENSITIVITIES Negative: Deterioration in the operating margins leading to deterioration in the credit profile could be negative for the ratings. Positive: The ability of the company to increase its scale of operations along with strong profitability margins will be positive for ratings. COMPANY PROFILE SVINNS, a charitable not-for-profit organisation established in November 2011, is managed by Dr. Sunil Pandit and Dr. Gauri Pandit. Since April 2014, it has taken over the operations of Swami Vivekanand Regional Spine Centre also, and is rendering medical services to patients of neurosurgery and spine ailments. SVINNS conducts about 300 surgeries a year, with outpatient department consultation of nearly 7,000 patients. SYNERGY GREEN: CRISIL Reaffirms 'D' Rating on INR110MM Cash Loan ---------------------------------------------------------------- CRISIL's ratings on the bank facilities of Synergy Green Industries Private Limited (Synergy) continue to reflect delays by Synergy in meeting interest obligations on its term loan. The delays have been driven by weak liquidity, and slow offtake, partly on account of the current challenging business environment in the casting and forging industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 10 CRISIL D (Reaffirmed) Cash Credit 110 CRISIL D (Reaffirmed) Letter of Credit 40 CRISIL D (Reaffirmed) Proposed Letter of Credit & Bank Guarantee 50 CRISIL D (Reaffirmed) Proposed Long Term Bank Loan Facility 3.2 CRISIL D (Reaffirmed) Synergy is exposed to risks pertaining to offtake in the domestic casting and forging market, and to early stage of operations and highly leveraged capital structure. However, the company benefits from the promoters' extensive industry experience. Synergy is a subsidiary of SB Reshellers Pvt Ltd (SBR), which was incorporated in 1978. Synergy was set up in August 2010 in Kolhapur (Maharashtra). The company manufactures iron castings for wind turbines, machine tools, pumps, and valves. It began commercial production in June 2012. It is managed by Mr. Sachin Shirgaokar, Mr. Sohan Shirgaokar, and Mr. V Srinivas Reddy. TAYAL ENERGY: Ind-Ra Suspends D Long-Term Issuer Rating ------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Tayal Energy Limited's (TEL) 'IND D' Long-Term Issuer Rating to the suspended category. The rating will now appear as 'IND D(suspended)' on the agency's website. A full list of rating actions is at the end of this commentary. The ratings have been migrated to the suspended category due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for TEL. The ratings will remain in the suspended category for a period of six months and be withdrawn at the end of that period. However, in the event the issuer starts furnishing information during this six-month period, the ratings could be reinstated and will be communicated through a rating action commentary. TEL's ratings: - Long-Term Issuer Rating: migrated to 'IND D(suspended)' from 'IND D' - INR1,283.2 mil. term Loans: migrated to long term 'IND D(Suspended)' from 'IND D' - INR965 mil. fund-based limits: migrated to long term 'IND D(Suspended)' from 'IND D' - INR180 mil. non-fund-based limits: migrated to short term 'IND D(Suspended)' from 'IND D'. TECHMECH ENGINEERS: CRISIL Assigns B+ Rating to INR92MM Loan ------------------------------------------------------------ CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facilities of Techmech Engineers (TE). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 16 CRISIL B+/Stable Cash Credit 92 CRISIL B+/Stable Channel Financing 12 CRISIL B+/Stable The rating reflects TE's modest scale of operations in a highly competitive industry along with working capital intensive nature of operations and the weak financial risk profile because of high gearing and below average debt protection metrics. These rating weaknesses are partially offset by the extensive experience of the promoters in the industrial machinery trading industry. Outlook: Stable CRISIL believes TE will continue to benefit over the medium term from the promoters' extensive industry experience. The outlook may be revised to 'Positive' in case of a considerable increase in revenue and profitability, resulting in an improvement in the financial risk profile. Conversely, the outlook may be revised to 'Negative' if a significant decline in revenue, or profitability or larger-than-expected, debt-funded capital expenditure, or weakening of working capital management results in deterioration in the financial risk profile. TE was set up in 1985 as a partnership by Mr. Dasarthy and Mr. Srivatsa. In 2007, Mr. K R Ramesh replaced Mr. Dasarthy and in 2008, Mr. K Ananth was also added as a partner. The firm, based in Karnataka, distributes electrical parts and system integrators which are used in home and office automations. THIRU AROORAN: ICRA Lowers Rating on INR200.30cr Loan to D ---------------------------------------------------------- ICRA has revised the long term rating to [ICRA]D from [ICRA]BB (negative) to INR101.71 crore term loans, INR200.30 crore fund based facilities and INR29.50 crore proposed fund based facilities of Thiru Arooran Sugars Limited. ICRA has also revised the short term rating to [ICRA]D from [ICRA]A4 to INR7.67 crore of non fund based facilities of TASL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loan 101.71 [ICRA]D, revised from [ICRA]BB (negative) Fund Based Limits 200.30 [ICRA]D, revised from [ICRA]BB (negative) Proposed Fund 29.50 [ICRA]D, revised from Based Limits [ICRA]BB (negative) Non Fund Based 7.67 [ICRA]D, revised from Limits [ICRA]A4 The rating revision factors in the delays in the debt servicing by the company on account of losses at operating level and at net level given the high cane cost of production coupled with low sugar realizations. The ratings continue to factor in the weak capital structure and coverage metrics on account of consequent erosion in net worth coupled with relatively high debt. While the sugar realizations are firming up since Sep, 2015, the sustainability of the same is yet to see given the surplus domestic and international stock positions. The ratings continue to remain constrained by the vulnerability of sugar operations to agro climatic variations and government policies relating to cane pricing and exports. However, ICRA notes the recent discussions of the company with the lenders which include conversion of fund based limits to non fund based limits, which could ease liquidity pressure on TASL to an extent. The ratings continue to factor in TASL's fully integrated nature of operations with cogeneration and distillery units which provide alternate revenue streams and some cushion against cyclicality in sugar business. The ratings also take into consideration TASL's experienced management, the dominant position of the company in its command area and proximity of the plants of the company to ports which it has used favorably to export sugar in the recent past. Thiru Arooran Sugars Limited is one of the oldest sugar companies and was incorporated in 1954. Its sugar plants are based in Cuddalore and Thanjavur districts of Tamil Nadu. It has 8500 TCD of cane crushing capacity in its two plants, and 60 klpd distillery. Its units are also integrated with 47.10 MW cogeneration units of its subsidiary Terra Energy Limited (TASL holds 66.19% stake in Terra Energy Limited), with which it has barter arrangement for supply of steam and power. Recent Results During FY15, TASL has reported operating income of INR267.00 crore and net loss of INR47.22 crore as against operating income of INR193.46 crore and net loss of INR15.96 crore during FY14. During H1 FY16, TASL has reported operating income of INR75.68 crore and net loss of INR37.33 crore as against operating income of INR154.09 crore and net loss of INR14.91 crore during H1 FY15. During FY15, the consolidated entity has reported operating income of INR540.49 crore and net loss of INR66.52 crore as against operating income of INR485.86 crore and net loss of INR21.16 crore during FY14. TPRS ENTERPRISES: Ind-Ra Raises Long-Term Issuer Rating to BB+ -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded TPRS Enterprises Private Limited's (TPRS) Long-Term Issuer Rating to 'IND BB+' from 'IND BB' with a Stable Outlook. KEY RATING DRIVERS The upgrade reflects an improvement in TPRS's credit profile on EBITDA margins turning positive. FY15 financials indicate EBITDA margins of 5.1% (FY14: negative 0.2%) on high-margin orders from long-standing customers and reduced power shortages. Net leverage improved to2.2x in FY15 (FY14: negative 78.8x) and EBITDA interest cover was 3.1x (negative 0.1x). Revenue grew at a CAGR of 4.7% over FY12-FY15 to INR634m in FY15. The company reported revenue of INR350m in 1HFY16. Ind-Ra expects the top line and profitability to improve in FY16 on the commencement of operations of the new unit in Dharawad. The ratings continue to be constrained by the fragmented nature of the toughened glass manufacturing industry TPRS operates in. The ratings are supported by TPRS' comfortable liquidity position and established operating track record. Its use of the fund-based facilities was 37% at an average during the 12 months ended November 2015. Established client relationships with reputed companies such as Tata Marcopolo Motors Limited, Ashok Leyland Limited also support the ratings. RATING SENSITIVITIES Positive: A substantial increase in the scale of operations and maintaining profitability leading to a sustained improvement in the credit metrics will be positive for the ratings. Negative: A decline in EBITDA margins leading to sustained deterioration in the credit metrics will be negative for the ratings. COMPANY PROFILE TPRS was established in 2005. It is a processor of glass sheets into toughened and laminated glasses. The processed glass caters to the architectural needs and for automotive purposes. TPRS's ratings: -- Long-Term Issuer Rating: upgraded to 'IND BB+' from 'IND BB'; Outlook Stable -- INR57.5 mil. fund based working capital limits: upgraded to 'IND BB+'/Stable from 'IND BB' and affirmed at 'IND A4+' -- INR10 mil. non-fund-based working capital limits: affirmed at 'IND A4+' -- INR52.5 mil. term loan (increased from INR5.5 mil.): upgraded to 'IND BB+'/Stable from 'IND BB' UNIPHOS INTERNATIONAL: Ind-Ra Affirms BB+ Long-Term Issuer Rating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Uniphos International Limited's (UIL) Long-Term Issuer Rating at 'IND BB+'. The Outlook is Stable. KEY RATING DRIVERS The affirmation reflects UIL's continued small scale of operations and volatility in its revenue (FY13: INR342 mil., FY14: INR623 mil., FY15: INR507 mil.) due to the trading nature of its business. Additionally, the EBITDA margins have remained low (FY14: 3.8%, FY15: 4.1%) due to the low-value adding nature of its business. The affirmation also reflects UIL's steady credit metrics. The company's borrowing levels have remained minimal historically as a result of which leverage and coverage indicators have remained comfortable. In FY15, UIL's net leverage (net debt/EBITDA) was comfortable at 0.18x (FY14: 0.89x, FY13: 1.38x). UIL's gross interest coverage has also remained comfortable (1HFY16: 6.59x, FY15:2.5x, FY14: 3.79x). The ratings factor in UIL's comfortable liquidity position with interest income being higher than interest expenses as a result of which net interest coverage (EBITDA/net interest expenses) has remained negative (1HFY16: negative 3.71x, FY15: negative 3.9x, FY14: negative 4.05x). UIL has also consistently generated positive cash flow from operations in each of the last four years. UIL also has unutilized fund-based limits of INR60 mil. which provides a liquidity cushion. The ratings are supported by UIL's prudent risk control measures. The company's sales are concentrated in South American and African countries, exposing it to counterparty risk; however, a majority of UIL's sales are backed by letters of credit. Furthermore, UIL takes export credit insurance from Export Credit Guarantee Corporation of India Ltd. in most transactions in which sales are not backed by letters of credit. UIL also has a short cash conversion cycle (less than 30 days) and follows conservative hedging policies to cover the risk of foreign currency fluctuations. RATING SENSITIVITIES Positive: Significant improvements in the scale of operations while maintaining a comfortable credit profile on a sustained basis may lead to a rating upgrade. Negative: Deterioration in the credit metrics or liquidity on a sustained basis may lead to a rating downgrade. COMPANY PROFILE Incorporated in 1992, UIL is involved in the trading of chemicals, agro products and engineering goods. UIL is a private company and is part of the UPL group. UIL's shareholding is divided between UPL Ltd (15.1%) and the promoters of the UPL group. UIL's ratings are: -- Long-Term Issuer Rating: affirmed at 'IND BB+'/Stable -- INR60 mil. fund-based limits: affirmed at 'IND BB+'/Stable -- INR140 mil. non-fund-based-limits: affirmed at 'IND A4+' VARRON ALUMINIUM: Ind-Ra Withdraws BB- Long-Term Issuer Rating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Varron Aluminium Pvt Ltd's (VAPL) 'IND BB-(suspended)' Long-Term Issuer Rating. The rating has been withdrawn due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for VAPL. Ind-Ra suspended VAPL's rating on Sept. 1, 2014. VARRON INDUSTRIES: Ind-Ra Withdraws BB+ Long-Term Issuer Rating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Varron Industries Limited's (VIL) 'IND BB+(suspended)' Long-Term Issuer Rating. The ratings have been withdrawn due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for VIL. Ind-Ra suspended VIL's ratings on Sept. 1, 2014. VIL's ratings: -- Long-Term Issuer Rating: 'IND BB+(suspended)'; rating Withdrawn -- INR390 mil. long-term bank loans: 'IND BB+(suspended)'; rating withdrawn -- INR740 mil. fund-based working capital limits (sublimit for bill discounting INR250 mil.): 'IND BB+(suspended)'and 'IND A4+(suspended)'; ratings withdrawn VENKATA KRISHNA: CRISIL Reaffirms B Rating on INR115MM LT Loan -------------------------------------------------------------- CRISIL's ratings on the bank facilities of Venkata Krishna Constructions Private Limited (VKC) continue to reflect VKC's small scale of operations in the intensely competitive construction industry, large working capital requirement, high geographical and customer concentration in order book, and below- average financial risk profile because of small networth, high gearing, and weak debt protection metrics. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 18 CRISIL A4 (Reaffirmed) Cash Credit 2 CRISIL B/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 115 CRISIL B/Stable (Reaffirmed) These weaknesses are partially offset by the extensive industry experience of the company's promoters in the construction industry. Outlook: Stable The outlook may be revised to 'Positive' if there is a substantial and sustained improvement in revenue and profitability margins or significant improvement in networth on the back of sizeable equity infusion by promoters. Conversely, the outlook may be revised to 'Negative' if profitability margins decline sharply or capital structure deteriorates due to large debt-funded capital expenditure or stretch in working capital cycle. VKC was set up in 2004 by Mr. G Subhas Chandra Bose and family in Hyderabad. The company undertakes infrastructure projects, primarily in the irrigation sector. YOGESH TRADING: Ind-Ra Assigns BB Long-Term Issuer Rating --------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Yogesh Trading Co. (YTC) a Long-Term Issuer Rating of 'IND BB'. The Outlook is Stable. The agency has also assigned YTC's INR350 mil. fund-based limits a Long-Term 'IND BB' rating with a Stable Outlook and a Short-Term 'IND A4+' rating. KEY RATING DRIVERS The ratings reflect YTC's weak credit metrics on the back of thin profitability margins. The operating margins of the firm are inherently low as the firm operates in a highly fragmented and intensely competitive fabric trading business. In FY15, interest coverage (operating EBITDA/gross interest expense) was 1.35x, net financial leverage (total Ind-Ra adjusted debt/operating EBITDAR) was 5.82x and EBITDA margins were 1.03%. The ratings also factor in YTC's tight liquidity as indicated by its almost-full use of the working capital limits during the 12 months ended November 2015, along with its partnership structure which exposes it to the risk of withdrawal of capital by the partners. The overall net conversion cycle deteriorated to 27 days in FY15 from 18 days in FY13, mainly due to higher payable days than receivable days and increased inventory days. The ratings benefit from YTC's comfortable scale of operations despite a fall in its revenue to INR7,085.69 mil. in FY15 from INR7,610.76 mil. in FY14. FY15 revenues declined due to weaker demand for non-denim fabrics. The ratings are also supported by the firm's 38-year long operational track record and its strong presence in Delhi NCR along with a strong supplier base. YTC's promoters have over three-decade-long experience in the garments trading business. RATING SENSITIVITIES Negative: A decline in profitability or lengthening of the working capital cycle leading to deterioration in the overall credit metrics will be negative for the ratings. Positive: An improvement in the profitability leading to improved credit metrics could lead to a positive rating action. COMPANY PROFILE YTC was established in 1977 and is engaged in wholesale trading of denim and non-denim fabrics and is an authorized distributor for all the major brands in India such as Ginni International Limited, Oswal Denims, Arvind Mills Limited, Blue Blends (India) Limited, Vardhman Fabrics etc. The firm is managed by Mr. Deepak Gambhir and is based in New Delhi. =============== M A L A Y S I A =============== 1MALAYSIA DEVELOPMENT: Anti-Graft Agency Submits Probe Results -------------------------------------------------------------- Shamim Adam at Bloomberg News reports that Malaysia's anti-graft agency submitted results to the attorney general of a probe into hundreds of millions of dollars that ended up in Prime Minister Najib Razak's private accounts before the 2013 general elections. Bloomberg relates that the Malaysian Anti-Corruption Commission said it made several proposals and recommendations for action in the case, according to a statement on Dec. 31. While it has completed investigations involving witnesses in the country, the MACC said it still needs permission from the attorney general to get documents and evidence from overseas financial institutions, according to Bloomberg. "This evidence can only be taken by the Mutual Legal Assistance process because it is tied to the provision of banking legislation of the country concerned," the report quotes the agency as saying. "MACC has made an application under the MLA to attorney general to obtain documents and evidence." According to Bloomberg, the premier, 62, has said the MYR2.6 billion ($605 million) of funds in accounts that have since been closed were political donations from the Middle East rather than public money. That was also the initial conclusion reached by the anti-graft commission in August in its preliminary investigations. Bloomberg relates that Najib has denied taking money for personal gain and has been cited as saying that the funds were to meet the needs of the party and the community, and that this wasn't a new practice. Bloomberg says Najib was questioned by anti-graft officials last month in a case that has evolved into his biggest crisis since coming to power in 2009. Bloomberg notes that the funding imbroglio and alleged financial irregularities at debt-ridden 1Malaysia Development Bhd., whose advisory board he chairs, have sparked political tensions within the ruling United Malays National Organisation and led thousands of anti-government protesters to rally in the capital in August. "The MACC has high confidence in the attorney general as the nation's prosecutor to make professional decisions," the agency, as cited by Bloomberg, said. Bloomberg adds that any criminal proceedings can only be initiated by the attorney general. In a separate probe of 1MDB by the central bank several months ago, the attorney general said it found no evidence of wrongdoing and declined to take action even as Bank Negara Malaysia alleged the company breached the Exchange Control Act. As reported in the Troubled Company Reporter-Asia Pacific on July 23, 2015, Reuters said Singapore Police Force has frozen two bank accounts to help with an investigation in to Malaysia's troubled state-owned investment fund 1Malaysia Development Bhd (1MDB), which is being probed by authorities in Malaysia for financial mismanagement and graft. Reuters said the freezing of the Singapore bank accounts follows a similar move in Malaysia where a task force investigating 1MDB said earlier in July that it had frozen half a dozen bank accounts following a media report that nearly $700 million had been transferred to an account of Malaysia's Prime Minister Najib Razak. The Wall Street Journal reported on July 3 that investigators looking into 1MDB had traced close to US$700 million of deposits moving through Falcon Bank in Singapore into personal bank accounts in Malaysia belonging to Najib, Reuters related. The TCR-AP, citing Bloomberg News, reported on Nov. 26 that 1MDB agreed to sell its power assets to China General Nuclear Power Corp. for MYR9.83 billion ($2.3 billion) as the state investment company moved one step closer to winding down operations after its mounting debt raised investor concern. Bloomberg related that the company faced cash-flow problems after a planned initial public offering of Edra faced delays amid unfavorable market conditions, President Arul Kanda said Oct. 31. The listing plan was later canceled as the company opted for a sale of the assets, Bloomberg noted. Kuala Lumpur-based 1Malaysia Development Bhd (1MDB) operates as a government agency. The Company offers financial assistance, analysis, and advice through investors, corporations, and consultants to startups and growth companies. 1MDB focuses on investments with strategic value and high multiplier effects on the economy, particularly in energy, real estate, tourism, and agribusiness. ==================== N E W Z E A L A N D ==================== CLEGG & CO: Investors Get Back 58.7c in the Dollar -------------------------------------------------- Jonathan Underhill at BusinessDesk reports that investors in Clegg & Co Finance and related entities, whose former director Brian Clegg was sentenced to home detention in 2009, got back 58.7 cents in the dollar, according to the failed group's final receivers report. Clegg & Co Finance, the holding company of Clegg & Co Leasing and Clegg & Co Capital, was put into receivership in October 2007 by Covenant Trustee Co after breaching rules on related party lending and net assets, the report discloses. BusinessDesk relates that Brian Clegg was sentenced to 12 months home detention in December 2009 (escaping the maximum possible five years in prison) after he admitted securities and companies law breaches related to NZ$2 million of lending to the ultimate holding company, Clegg & Co, which he owned. According to reports at the time, there was no documentation for the loans but the company signed off on prospectuses saying it was in compliance with its trust deed on related party lending. According to BusinessDesk, the final receivers report from BDO, for the period October 2007 to Dec. 22 this year, said total distributions of about NZ$8.9 million, or 58.7 cents in the dollar, were made to 496 investors in the group, leaving a shortfall of NZ$6.2 million. The receivers had initially hoped to return between 70 cents and 85 cents. Unsecured creditors weren't paid. BusinessDesk notes that the first receivers report back in 2007 said related party loans to Clegg & Co stood at about NZ$3.1 million, partially secured by a first mortgage over Brian Clegg and Pamela Nicholson-Clegg's residential property at Algies Bay, north of Auckland, which was subsequently sold. That report said a deficit of NZ$2.5 million was deemed not to be recoverable because the principal asset of Clegg & Co was an amount due from another of their companies, Classic Finance, which was placed in liquidation in 2007 owing about NZ$4.5 million. Clegg & Co. Finance Limited -- http://www.clegg.co.nz/-- is a New Zealand finance company dealing with commercial plant finance leases and other secured lending contracts. INTAGR8 LTD: Had 'Unsustainable Business Model', Liquidator Says ---------------------------------------------------------------- Jonathan Underhill at BusinessDesk reports that Intagr8 Ltd, which was placed in liquidation last month after failing to pay creditors, ran an "unsustainable business model" with upfront sales revenue too meager to cover the cost of inducements for new customers to its bundled telephone and equipment deals, the liquidator said. The report says the collapse before Christmas left thousands of small and medium-sized businesses without telecommunications and internet services. Steven Khov and Damien Grant of Waterstone Insolvency were unable to estimate the total assets of the company or its liabilities in their first report as liquidators, BusinessDesk relates. A creditors meeting has been called tentatively for Jan. 16 where the liquidators expect to give an update. BusinessDesk relates that Mr. Grant was quoted in media reports last month saying the business had monthly turnover of about NZ$1 million and staff were being kept on pending the sale. Vodafone made up about 70% of Intagr8's creditors by dollar value, reports said. According to BusinessDesk, the liquidator's report, while short on financial details, said Intagr8 "ran an unsustainable business model with the upfront sales revenue insufficient to cover the cost of the credits offered to induce sign ups." "The liquidators are also aware that the failure of the business can also be attributed to a major supplier withdrawing telco services affecting the ability of the company to provide on-going services to customers," the liquidators said in their report. "The ability of the company and the liquidators to limit the damage to the business as a result of the withdrawal and subsequent media statement regarding the withdrawal has severely diminished the value of the business in the hours following liquidation." Making matters worse for the company, several suppliers had withdrawn services to the company and "began to actively convert customers of the company, further diminishing the viability and value of the business," BusinessDesk says. BusinessDesk relates that the liquidators said they would investigate the affairs of the company to determine if any insolvent transactions had occurred or if any company officers had been in breach of their duties. Intagr8's sole shareholder and director is listed as Murray Taylor, BusinessDesk discloses citing the Companies Office. Mr. Taylor, who has reportedly left the country, blamed bad publicity after Vodafone severed ties with the company for its demise. Vodafone is owed about $1 million and is listed among 20 known creditors in the liquidators report, along with UDC Finance, ANZ Bank, Westpac New Zealand, the Inland Revenue Department and financing company Advaro, ultimately owned by a Maui Capital fund, according to BusinessDesk. BusinessDesk adds that the liquidators have already sold Intagr8's business and remaining customer database to a new company reportedly called RS Comms, although that name is showing only as an approved name on the Companies Office. BusinessDesk relates that 2degrees corporate affairs director Mathew Bolland said the new owner had contracted with 2degrees to be a wholesale supplier for the business, although billing and other services were Intagr8's responsibility. Intagr8 Ltd was a telecommunication company based in New Zealand. ===================== P H I L I P P I N E S ===================== LBC DEVELOPMENT: PDIC Files PHP1.8BB Suit vs. LBC Group ------------------------------------------------------- Doris Dumlao-Abadilla at Philippine Daily Inquirer reports that the LBC courier group led by the Araneta family is grappling with a PHP1.8-billion claim filed by the state-owned Philippine Deposit Insurance Corp. (PDIC) on behalf of defunct banking affiliate LBC Development Bank. The Inquirer relates that the Regional Trial Court of Makati branch 143 has issued a writ of preliminary attachment against certain parties, including its parent company LBC Development Corp. and subsidiary LBC Express Inc. in relation to a civil case for collection of allegedly unpaid service fees, LBC Express Holdings Inc. said in a disclosure to the Philippine Stock Exchange on Jan. 4. Other defendants in this civil case are LBC Properties Inc., Juan Carlos Araneta, Santiago Araneta, Fernando Araneta, Monica Araneta, Carlos Araneta, Ma. Eliza Berenguer, Ofelia Cuevas, Apolonia Ilio, Joseph Jeffrey Rodriguez and Arlan Jurado, the report says. "Whether or not the claims against LBC Express Inc. and/or LBC Development Corp. are successfully proven, there can be no assurance that these claims will not cause business interruptions or reputational harm to LBC Express Holdings Inc. and may ultimately have a material adverse effect on its financial performance and prospects," LBC Express said in the disclosure, the Inquirer relays. According to the Inquirer, trading on shares of LBC, which entered the stock market through backdoor-listing last year, was halted at the local stock exchange from 9:00 a.m. to 10:00 a.m. on Jan. 4 after the disclosure on the legal proceedings was posted. The Inquirer notes that the writ of preliminary attachment directs the sheriff of the court to attach real and personal properties of any of the defendants sufficient to satisfy the plaintiff's claim and costs of suit, unless the defendants provide security to satisfy any final judgment in the case. The Bangko Sentral ng Pilipinas ordered the closure of LBC Bank in 2011, citing huge advances to LBC Express as part of the reason why the thrift bank had become insolvent, the report recalls. According to the report, the cash advances allowed LBC to speed up the delivery of remittances but some of the cash advances remained unpaid, causing financial burden to the bank, based on earlier reports quoting BSP Deputy Governor Nestor Espenilla Jr. The PDIC, as the mandated receiver of the defunct bank, is thus now running after such "unpaid service fees" estimated at PHP1.8 billion, the Inquirer says. The Inquirer relates that the disclosure said the summons and the writ of preliminary attachment had been summoned on Dec. 28. As of Jan. 4, LBC Development Corp. and LBC Express had yet to file their respective replies to the complaint, the report states. The Inquirer adds that LBC Express LBC Development are currently "determining and assessing the various options and legal remedies available," adding that any disclosure "should not be taken as an admission" by any of the defendants of the validity or propriety of the service of the summons and/or the writ of preliminary attachment or the summons and/or the writ in itself. About LBC LBC Development Bank is a 20-unit thrift bank. Its head office is located at 809 J. P. Rizal St., Poblacion, Makati City. Its 19 branches are located nationwide. As reported in the Troubled Company Reporter-Asia Pacific on Sept. 13, 2011, the Monetary Board placed LBC Development Bank under receivership of the Philippine Deposit Insurance Corporation by virtue of MB Resolution No. 1354 dated Sept. 9, 2011. LBC Development incurred non-performing loans of PHP316.3 million representing 27.29% of its total loan portfolio of more than PHP1 billion as of December 2010, according to Manila Standard Today. The bank also had more than PHP725 million in classified loans and other risk assets as of December last year. Against these high-risk loans, the bank had only PHP158.7 million in specific provision for loan losses. While LBC Development Bank had nearly PHP6 billion in deposit liabilities, its net loans and receivables amounted to less than PHP1 billion, the Manila Standard disclosed. =============== T H A I L A N D =============== THAILAND: Central Bank Governor Set to Walk Economic Tightrope -------------------------------------------------------------- James Hookway and Nopparat Chaichalearmmongkol of The Wall Street Journal report that Thailand's newly-minted central bank governor said Dec. 28 that the country's economy is entering a difficult transition, and that he stands ready to tailor the bank's policies to support more growth while strictly managing price pressures. "Stability is key. During a transition period we have to make sure stability is key," Veerathai Santiprabhob told The Wall Street Journal in his first interview with international media since becoming the Bank of Thailand's governor in September. At the same time, Mr. Veerathai said weak inflation means the Bank of Thailand has more leeway to help buoy the country's troubled economy as it grapples with a host of challenges, from slowing demand in China to tensions in the Middle East to Thailand's struggle to regain its former status as one of the world's most attractive locations for foreign manufacturers, the Journal relates. "Our primary mandate is domestic monetary stability," the Journal quotes Mr. Veerathai, 46 years old, as saying. "But when we are not subject to strong pressure on prices, we can be more accommodative to other considerations, but it doesn't mean that we want to forego price stability, which is our core mandate." Thailand, once one of the world's fastest-growing emerging economies and hub for global names such as Toyota Motor Corp. and Ford Motor Co., has struggled to recover from the impact of devastating floods in 2011 that shut down much of its industrial output, the Journal says. Combined with lower prices for agricultural exports and the rise of new competitors for investment, notably Vietnam, this has knocked the wind of its economy's sails, according to the Journal. The Journal notes that exports, an important driver of Thailand's economy, fell 7.4% on year in November, and by 5.5% over the first 11 months of the year. Exports contracted in both 2013 and 2014, and an overall decline is certain this year too. The Bank of Thailand forecasts growth to remain flat in 2016, and last week cut its economic growth target for next year to 3.5% from 3.7%, compared with this year's forecast of 2.8% growth. According to the Journal, economists said Thailand's political upheavals, which culminated in a military coup last year, have added another layer of uncertainty that has complicated the country's attempts to regain its old luster and dented local confidence, too. The Journal notes that the Bank of Thailand's Monetary Policy Committee twice cut its main policy rate in 2015, down to 1.5%, to support borrowing and investment, and Mr. Veerathai said the committee could again cut rates in the coming months if the situation warranted. The big question mark in 2016, he said, was the extent to which demand in China will slow as its economic planners attempt to steer its economy toward a more consumer-based model, the report relays. "China is a major world economy and the transition there could definitely have a strong impact on countries like Thailand," the Journal quotes Mr. Veerathai as saying. "We stand ready to be more accommodative if need be." Thailand's own domestic problems present another problem, says the report. The Journal relates that Mr. Veerathai, a former economist with the International Monetary Fund who has also served as a policy researcher at Thailand's finance ministry and as chief strategy officer at the Stock Exchange of Thailand, said he was concerned about the danger of an uneven economic recovery. He said that while urban areas, particularly Bangkok, may perform relatively well in the coming months, he and other economic policy makers are worried about how depressed commodity prices, especially those of rubber, are hurting rural communities. He also pointed out how changing demographics are beginning to weigh on the country. Thailand is one of the world's poorest countries to face the phenomenon of aging, with the average woman now giving birth to 1.6 children, about the same as China and less than the 2.1 children that statisticians regard as being adequate to maintain a country's population, the Journal says. Mr. Veerathai said Thailand's workforce is beginning to contract as a result, creating pressure to improve productivity if the country is to continue to grow, the Journal adds. The Journal notes that the ruling junta recently introduced new measures including tax incentives to bring more research and development-oriented investment to the country to help address the problem. It is also attempting improve efficiency at the country's state-owned enterprises, which together invest more money each year than the entire national government. The Journal meanwhile reports that Mr. Veerathai said there are some signs that some of the worst might be over for Thailand's economy, at least in the short term. Private consumption in October, the latest month for which data is available, rose 2.2% on year, while private investment grew by 1.5%, the report discloses. Moreover, long-delayed government investments in major infrastructure projects might be realized in 2016, providing some fresh impetus to support growth. Some smaller ones have already been bid out. "We will have to keep our eye on this," Mr. Veerathai said, to make sure they provide a sufficient boost to keep the economy growing, adds the Journal. =============== X X X X X X X X =============== * BOND PRICING: For the Week Dec. 28, 2015 to Jan. 1, 2016 ---------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRALIA --------- AUSDRILL FINANCE PTY 6.88 11/1/2019 USD 71.00 AUSDRILL FINANCE PTY 6.88 11/1/2019 USD 70.43 BARRICK PD AUSTRALIA 5.95 10/15/2039 USD 69.32 BOART LONGYEAR MANAG 7.00 4/1/2021 USD 41.25 BOART LONGYEAR MANAG 7.00 4/1/2021 USD 41.25 CML GROUP LTD 9.00 1/29/2020 AUD 0.98 CRATER GOLD MINING L 10.00 8/18/2017 AUD 23.00 EMECO PTY LTD 9.88 3/15/2019 USD 55.50 EMECO PTY LTD 9.88 3/15/2019 USD 55.50 FMG RESOURCES AUGUST 6.88 4/1/2022 USD 62.00 FMG RESOURCES AUGUST 6.88 4/1/2022 USD 62.02 IMF BENTHAM LTD 6.38 6/30/2019 AUD 72.00 KBL MINING LTD 12.00 2/16/2017 AUD 0.29 KEYBRIDGE CAPITAL LT 7.00 7/31/2020 AUD 0.68 LAKES OIL NL 10.00 3/31/2017 AUD 4.57 MIDWEST VANADIUM PTY 11.50 2/15/2018 USD 5.75 MIDWEST VANADIUM PTY 11.50 2/15/2018 USD 3.99 NEWCREST FINANCE PTY 5.75 11/15/2041 USD 74.17 STOKES LTD 10.00 6/30/2017 AUD 0.35 TREASURY CORP OF VIC 0.50 11/12/2030 AUD 64.32 CHINA ----- CHANGCHUN CITY DEVEL 6.08 3/9/2016 CNY 40.12 CHANGSHA HIGH TECHNO 7.30 11/22/2017 CNY 71.00 CHANGZHOU INVESTMENT 5.80 7/1/2016 CNY 40.36 CHANGZHOU WUJIN CITY 5.42 6/9/2016 CNY 50.08 CHANGZHOU WUJIN CITY 6.22 6/8/2018 CNY 74.80 CHINA GOVERNMENT BON 1.64 12/15/2033 CNY 75.54 CHONGQING NAN'AN DIS 6.29 12/24/2017 CNY 58.00 DANDONG CITY DEVELOP 6.21 9/6/2017 CNY 70.32 DATONG ECONOMIC CONS 6.50 6/1/2017 CNY 70.35 DRILL RIGS HOLDINGS 6.50 10/1/2017 USD 58.10 DRILL RIGS HOLDINGS 6.50 10/1/2017 USD 58.50 ERDOS DONGSHENG CITY 8.40 2/28/2018 CNY 69.11 ERDOS DONGSHENG CITY 8.40 2/28/2018 CNY 67.64 GRANDBLUE ENVIRONMEN 6.40 7/7/2016 CNY 70.30 GUOAO INVESTMENT DEV 6.89 10/29/2018 CNY 67.10 HANGZHOU XIAOSHAN ST 6.90 11/22/2016 CNY 41.41 HEBEI RONG TOU HOLDI 6.76 7/8/2021 CNY 74.66 HEILONGJIANG HECHENG 7.78 11/17/2016 CNY 41.48 HUAIAN CITY URBAN AS 7.15 12/21/2016 CNY 40.42 HUZHOU MUNICIPAL CON 7.02 12/21/2017 CNY 72.00 JIANGSU HUAJING ASSE 5.68 9/28/2017 CNY 50.72 KUNSHAN ENTREPRENEUR 4.70 3/30/2016 CNY 40.10 LIAOYUAN STATE-OWNED 7.80 1/26/2017 CNY 72.00 LINHAI CITY INFRASTR 7.98 11/6/2016 CNY 51.50 NANJING NANGANG IRON 6.13 2/27/2016 CNY 50.00 NINGDE CITY STATE-OW 6.25 10/21/2017 CNY 40.94 OCEAN RIG UDW INC 7.25 4/1/2019 USD 43.00 OCEAN RIG UDW INC 7.25 4/1/2019 USD 44.50 PANJIN CONSTRUCTION 7.70 12/16/2016 CNY 41.51 QINGZHOU HONGYUAN PU 6.50 5/22/2019 CNY 40.53 SHANDONG SHANSHUI CE 5.44 1/21/2016 CNY 61.00 SHENGZHOU HOTEL CO L 9.20 2/26/2016 CNY 100.00 TAIZHOU CITY CONSTRU 6.90 1/25/2017 CNY 70.42 TONGLIAO CITY INVEST 5.98 9/1/2017 CNY 68.00 WUXI COMMUNICATIONS 5.58 7/8/2016 CNY 50.34 WUXI HUISHAN SOFTWAR 9.00 3/19/2016 CNY 60.57 XIANGTAN JIUHUA ECON 6.93 12/16/2016 CNY 40.00 XIANYANG CITY CONSTR 7.90 12/9/2017 CNY 74.00 YANGZHOU ECONOMIC DE 6.10 7/7/2016 CNY 50.30 YANGZHOU URBAN CONST 5.94 7/23/2016 CNY 40.59 YIJINHUOLUOQI HONGTA 8.35 3/19/2019 CNY 72.80 YUNNAN INVESTMENT GR 5.25 8/24/2017 CNY 71.51 ZHUCHENG ECONOMIC DE 7.50 8/25/2018 CNY 41.04 INDONESIA --------- BERAU COAL ENERGY TB 7.25 3/13/2017 USD 27.75 BERAU COAL ENERGY TB 7.25 3/13/2017 USD 29.43 GAJAH TUNGGAL TBK PT 7.75 2/6/2018 USD 60.50 GAJAH TUNGGAL TBK PT 7.75 2/6/2018 USD 59.00 INDONESIA TREASURY B 6.38 4/15/2042 IDR 71.94 PERUSAHAAN PENERBIT 6.10 2/15/2037 IDR 71.20 INDIA ----- 3I INFOTECH LTD 5.00 4/26/2017 USD 14.50 BLUE DART EXPRESS LT 9.30 11/20/2017 INR 10.10 BLUE DART EXPRESS LT 9.50 11/20/2019 INR 10.22 BLUE DART EXPRESS LT 9.40 11/20/2018 INR 10.15 COROMANDEL INTERNATI 9.00 7/23/2016 INR 15.61 GTL INFRASTRUCTURE L 4.03 11/9/2017 USD 25.13 INCLINE REALTY PVT L 10.85 8/21/2017 INR 7.16 JAIPRAKASH ASSOCIATE 5.75 9/8/2017 USD 71.76 JCT LTD 2.50 4/8/2011 USD 37.00 PRAKASH INDUSTRIES L 5.25 4/30/2015 USD 20.25 PYRAMID SAIMIRA THEA 1.75 7/4/2012 USD 1.00 REI AGRO LTD 5.50 11/13/2014 USD 4.25 REI AGRO LTD 5.50 11/13/2014 USD 4.25 SVOGL OIL GAS & ENER 5.00 8/17/2015 USD 20.13 JAPAN ----- AVANSTRATE INC 5.55 10/31/2017 JPY 31.00 AVANSTRATE INC 5.55 10/31/2017 JPY 37.00 ELPIDA MEMORY INC 0.70 8/1/2016 JPY 8.13 ELPIDA MEMORY INC 0.50 10/26/2015 JPY 8.38 ELPIDA MEMORY INC 2.03 3/22/2012 JPY 8.25 ELPIDA MEMORY INC 2.29 12/7/2012 JPY 8.25 ELPIDA MEMORY INC 2.10 11/29/2012 JPY 8.25 SHARP CORP/JAPAN 1.60 9/13/2019 JPY 69.00 TAKATA CORP 0.58 3/26/2021 JPY 68.00 KOREA ----- 2014 KODIT CREATIVE 5.00 12/25/2017 KRW 30.49 2014 KODIT CREATIVE 5.00 12/25/2017 KRW 30.49 DOOSAN CAPITAL SECUR 20.00 4/22/2019 KRW 39.53 EXPORT-IMPORT BANK O 0.50 12/22/2017 BRL 76.05 HYUNDAI HEAVY INDUST 4.90 12/15/2044 KRW 53.57 HYUNDAI HEAVY INDUST 4.80 12/15/2044 KRW 57.12 HYUNDAI MERCHANT MAR 7.05 12/27/2042 KRW 30.45 INDUSTRIAL BANK OF K 2.04 3/10/2045 KRW 100.90 KIBO ABS SPECIALTY C 10.00 9/4/2016 KRW 39.19 KIBO ABS SPECIALTY C 10.00 2/19/2017 KRW 36.78 KIBO ABS SPECIALTY C 5.00 12/25/2017 KRW 29.22 KIBO ABS SPECIALTY C 5.00 3/29/2018 KRW 29.44 KIBO ABS SPECIALTY C 5.00 1/31/2017 KRW 32.23 KIBO ABS SPECIALTY C 10.00 8/22/2017 KRW 26.11 LSMTRON DONGBANGSEON 4.53 11/22/2017 KRW 30.09 POSCO ENERGY CORP 4.72 8/29/2043 KRW 65.77 POSCO ENERGY CORP 4.72 8/29/2043 KRW 65.79 POSCO ENERGY CORP 4.66 8/29/2043 KRW 66.30 PULMUONE CO LTD 2.50 8/6/2045 KRW 58.02 SINBO SECURITIZATION 5.00 3/18/2019 KRW 26.34 SINBO SECURITIZATION 5.00 3/18/2019 KRW 26.34 SINBO SECURITIZATION 5.00 8/31/2016 KRW 34.88 SINBO SECURITIZATION 5.00 8/31/2016 KRW 34.88 SINBO SECURITIZATION 5.00 10/1/2017 KRW 31.00 SINBO SECURITIZATION 5.00 10/1/2017 KRW 31.00 SINBO SECURITIZATION 5.00 10/1/2017 KRW 31.00 SINBO SECURITIZATION 5.00 10/5/2016 KRW 34.52 SINBO SECURITIZATION 5.00 10/5/2016 KRW 32.88 SINBO SECURITIZATION 5.00 3/13/2017 KRW 32.74 SINBO SECURITIZATION 5.00 3/13/2017 KRW 32.74 SINBO SECURITIZATION 5.00 5/27/2016 KRW 38.18 SINBO SECURITIZATION 5.00 12/13/2016 KRW 33.74 SINBO SECURITIZATION 5.00 1/29/2017 KRW 33.23 SINBO SECURITIZATION 5.00 6/7/2017 KRW 22.98 SINBO SECURITIZATION 5.00 6/7/2017 KRW 22.98 SINBO SECURITIZATION 5.00 2/27/2019 KRW 26.56 SINBO SECURITIZATION 5.00 2/27/2019 KRW 26.56 SINBO SECURITIZATION 5.00 6/29/2016 KRW 35.59 SINBO SECURITIZATION 5.00 2/21/2017 KRW 32.97 SINBO SECURITIZATION 5.00 2/21/2017 KRW 32.97 SINBO SECURITIZATION 5.00 5/27/2016 KRW 38.18 SINBO SECURITIZATION 5.00 7/26/2016 KRW 35.27 SINBO SECURITIZATION 5.00 7/26/2016 KRW 35.27 SINBO SECURITIZATION 5.00 6/27/2018 KRW 28.91 SINBO SECURITIZATION 5.00 6/27/2018 KRW 28.91 SINBO SECURITIZATION 5.00 7/24/2017 KRW 30.79 SINBO SECURITIZATION 5.00 7/24/2018 KRW 28.70 SINBO SECURITIZATION 5.00 7/24/2018 KRW 28.70 SINBO SECURITIZATION 5.00 8/29/2018 KRW 28.21 SINBO SECURITIZATION 5.00 8/29/2018 KRW 28.21 SINBO SECURITIZATION 5.00 3/12/2018 KRW 29.58 SINBO SECURITIZATION 5.00 3/12/2018 KRW 29.58 SINBO SECURITIZATION 5.00 12/23/2018 KRW 27.06 SINBO SECURITIZATION 5.00 12/23/2018 KRW 27.06 SINBO SECURITIZATION 5.00 12/23/2017 KRW 29.23 SINBO SECURITIZATION 5.00 1/19/2016 KRW 65.07 SINBO SECURITIZATION 5.00 2/2/2016 KRW 59.62 SINBO SECURITIZATION 8.00 2/2/2016 KRW 65.34 SINBO SECURITIZATION 5.00 1/30/2019 KRW 26.73 SINBO SECURITIZATION 5.00 1/30/2019 KRW 26.73 SINBO SECURITIZATION 5.00 10/30/2019 KRW 19.35 SINBO SECURITIZATION 5.00 2/11/2018 KRW 29.81 SINBO SECURITIZATION 5.00 12/25/2016 KRW 32.68 SINBO SECURITIZATION 5.00 1/15/2018 KRW 30.30 SINBO SECURITIZATION 5.00 2/11/2018 KRW 29.81 SINBO SECURITIZATION 5.00 1/15/2018 KRW 30.30 SINBO SECURITIZATION 5.00 7/8/2017 KRW 31.95 SINBO SECURITIZATION 5.00 7/8/2017 KRW 31.95 SINBO SECURITIZATION 5.00 8/16/2017 KRW 31.54 SINBO SECURITIZATION 5.00 9/26/2018 KRW 27.99 SINBO SECURITIZATION 5.00 9/26/2018 KRW 27.99 SINBO SECURITIZATION 5.00 9/26/2018 KRW 27.99 SINBO SECURITIZATION 5.00 8/16/2016 KRW 33.85 SINBO SECURITIZATION 5.00 8/16/2017 KRW 31.54 SINBO SECURITIZATION 5.00 3/14/2016 KRW 48.12 SK TELECOM CO LTD 4.21 6/7/2073 KRW 64.68 TONGYANG CEMENT & EN 7.50 4/20/2014 KRW 70.00 TONGYANG CEMENT & EN 7.30 6/26/2015 KRW 70.00 TONGYANG CEMENT & EN 7.50 7/20/2014 KRW 70.00 TONGYANG CEMENT & EN 7.30 4/12/2015 KRW 70.00 TONGYANG CEMENT & EN 7.50 9/10/2014 KRW 70.00 U-BEST SECURITIZATIO 5.50 11/16/2017 KRW 31.26 WISE MOBILE SECURITI 20.00 12/14/2018 KRW 70.04 SRI LANKA --------- SRI LANKA GOVERNMENT 5.35 3/1/2026 LKR 68.26 MALAYSIA -------- BANDAR MALAYSIA SDN 0.35 2/20/2024 MYR 70.29 BANDAR MALAYSIA SDN 0.35 12/29/2023 MYR 70.81 BIMB HOLDINGS BHD 1.50 12/12/2023 MYR 71.13 BRIGHT FOCUS BHD 2.50 1/24/2030 MYR 70.08 BRIGHT FOCUS BHD 2.50 1/22/2031 MYR 67.30 HARKAND FINANCE INC 8.40 3/28/2019 USD 54.13 LAND & GENERAL BHD 1.00 9/24/2018 MYR 0.25 SENAI-DESARU EXPRESS 0.50 12/31/2040 MYR 68.99 SENAI-DESARU EXPRESS 0.50 12/31/2038 MYR 66.05 SENAI-DESARU EXPRESS 0.50 12/29/2045 MYR 74.19 SENAI-DESARU EXPRESS 0.50 12/31/2043 MYR 72.58 SENAI-DESARU EXPRESS 0.50 12/30/2039 MYR 67.74 SENAI-DESARU EXPRESS 0.50 12/30/2044 MYR 73.54 SENAI-DESARU EXPRESS 1.15 6/30/2023 MYR 69.40 SENAI-DESARU EXPRESS 1.35 6/30/2031 MYR 52.64 SENAI-DESARU EXPRESS 1.35 6/30/2028 MYR 58.56 SENAI-DESARU EXPRESS 1.15 12/29/2023 MYR 67.80 SENAI-DESARU EXPRESS 1.15 6/30/2025 MYR 63.54 SENAI-DESARU EXPRESS 1.35 12/31/2026 MYR 61.62 SENAI-DESARU EXPRESS 1.35 6/29/2029 MYR 56.56 SENAI-DESARU EXPRESS 1.10 12/31/2021 MYR 74.37 SENAI-DESARU EXPRESS 1.15 6/28/2024 MYR 66.34 SENAI-DESARU EXPRESS 1.35 6/30/2026 MYR 62.64 SENAI-DESARU EXPRESS 1.35 12/31/2030 MYR 53.64 SENAI-DESARU EXPRESS 1.35 12/29/2028 MYR 57.56 SENAI-DESARU EXPRESS 1.10 6/30/2022 MYR 72.56 SENAI-DESARU EXPRESS 1.35 12/31/2025 MYR 63.72 SENAI-DESARU EXPRESS 1.35 12/31/2029 MYR 55.59 SENAI-DESARU EXPRESS 1.15 12/30/2022 MYR 71.05 SENAI-DESARU EXPRESS 1.15 12/31/2024 MYR 64.89 SENAI-DESARU EXPRESS 1.35 6/30/2027 MYR 60.56 SENAI-DESARU EXPRESS 1.35 12/31/2027 MYR 59.57 SENAI-DESARU EXPRESS 1.35 6/28/2030 MYR 54.61 SENAI-DESARU EXPRESS 0.50 12/31/2041 MYR 70.12 SENAI-DESARU EXPRESS 0.50 12/31/2042 MYR 71.41 SENAI-DESARU EXPRESS 0.50 12/31/2047 MYR 76.22 SENAI-DESARU EXPRESS 0.50 12/31/2046 MYR 75.33 UNIMECH GROUP BHD 5.00 9/18/2018 MYR 1.15 PHILIPPINES ----------- BAYAN TELECOMMUNICAT 13.50 7/15/2006 USD 22.75 BAYAN TELECOMMUNICAT 13.50 7/15/2006 USD 22.75 SINGAPORE --------- AXIS OFFSHORE PTE LT 7.78 5/18/2018 USD 53.61 BAKRIE TELECOM PTE L 11.50 5/7/2015 USD 3.19 BAKRIE TELECOM PTE L 11.50 5/7/2015 USD 3.72 BERAU CAPITAL RESOUR 12.50 7/8/2015 USD 28.71 BERAU CAPITAL RESOUR 12.50 7/8/2015 USD 74.78 BLD INVESTMENTS PTE 8.63 3/23/2015 USD 8.25 BUMI CAPITAL PTE LTD 12.00 11/10/2016 USD 18.70 BUMI CAPITAL PTE LTD 12.00 11/10/2016 USD 18.16 BUMI INVESTMENT PTE 10.75 10/6/2017 USD 19.00 BUMI INVESTMENT PTE 10.75 10/6/2017 USD 18.02 ENERCOAL RESOURCES P 6.00 4/7/2018 USD 10.50 GOLIATH OFFSHORE HOL 12.00 6/11/2017 USD 8.50 INDO INFRASTRUCTURE 2.00 7/30/2010 USD 1.88 ORO NEGRO DRILLING P 7.50 1/24/2019 USD 59.50 OSA GOLIATH PTE LTD 12.00 10/9/2018 USD 62.00 OTTAWA HOLDINGS PTE 5.88 5/16/2018 USD 46.00 OTTAWA HOLDINGS PTE 5.88 5/16/2018 USD 48.89 SWIBER HOLDINGS LTD 7.13 4/18/2017 SGD 69.00 TRIKOMSEL PTE LTD 5.25 5/10/2016 SGD 20.00 TRIKOMSEL PTE LTD 7.88 6/5/2017 SGD 24.00 THAILAND -------- MDX PCL 4.75 9/17/2003 USD 37.50 G STEEL PCL 3.00 10/4/2015 USD 3.74 VIETNAM ------- DEBT AND ASSET TRADI 1.00 10/10/2025 USD 48.00 DEBT AND ASSET TRADI 1.00 10/10/2025 USD 48.13 ********* 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 2016. 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 ***