/raid1/www/Hosts/bankrupt/TCRAP_Public/160208.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, February 8, 2016, Vol. 19, No. 26
Headlines
A U S T R A L I A
ALINTA ENERGY: Moody's Affirms B1 Corporate Family Rating
AROWANA INC: Issues Going Concern Doubt, Need for More Capital
ATLANTIC VANADIUM: To Buy Back Windimurra Vanadium Mine
CLIFFS NATURAL: Depository Shares Delisted From NYSE
CLIFFS NATURAL: Moody's Cuts Corporate Family Rating to 'Ca'
FOOD WITH SPICE: Restaurant Placed Into Liquidation
HORSES DOWNUNDER: First Creditors' Meeting Set For Feb. 15
MEMBERS ALLIANCE: Faces Winding Up Bid Over AUD50,000 Debt
OM (MANGANESE): Seeks Expressions of Interest for Assets
R-VALUE INSULATION: First Creditors' Meeting Set For Feb. 15
REVOLUTION BRANDS: First Creditors' Meeting Set For Feb. 15
WEATHERPROOF ROOFING: First Creditors' Meeting Set For Feb. 15
C H I N A
AVIC INTERNATIONAL: Moody's Cuts Sr. Unsec. Bond Rating to Ba1
CHINA BAK: Has US$15.0 Million Current Deficit at Sept. 30
KU6 MEDIA: Shanda Interactive Holds 69.9% of Ordinary Shares
KU6 MEDIA: To Consider "Going Private" Proposal
RENHE COMMERCIAL: S&P Lowers CCR to 'CCC-'; Outlook Negative
SUNRISE REAL: Estate Has US$10.2-Mil. Deficit at March 31
I N D I A
AADHISHIVA ENTERPRISES: CARE Assigns 'D' Rating to INR6.35cr Loan
ACTIS GENERICS: CRISIL Ups Rating on INR80MM Term Loan to B-
AFFLATUS INTERNATIONAL: Ind-Ra Assigns BB+ LT Issuer Rating
AMBICA AGARBATHIES: CARE Reaffirms D Rating on INR54.73cr LT Loan
ARBEE AQUATIC: Ind-Ra Assigns B Long-Term Issuer Rating
BALA BALAJEE: CRISIL Reaffirms 'D' Rating on INR214.7MM Cash Loan
BHAGWATI STEELS: Ind-Ra Assigns BB- Long-Term Issuer Rating
BHATINDA CERAMICS: CRISIL Reaffirms 'B+' Rating on INR27.5MM Loan
BHAVANI ERECTORS: CARE Revises Rating on INR10cr Loan to BB-
BHOLENATH RICEMILL: CARE Reaffirms B+ Rating on INR5.76cr Loan
BIOMAX FUELS: CRISIL Cuts Rating on INR400MM Loan to 'D'
C R BROADCASTING: CRISIL Suspends 'B' Rating on INR107.5MM Loan
DAKSHIN EXPORTS: CRISIL Reaffirms 'B+' Rating on INR13MM Loan
DIGHI PORT: CARE Lowers Rating on INR777.09cr Loan to 'D'
ECOMOTEL HOTEL: CARE Reaffirms D Rating on INR13.79cr LT Loan
G.R. TEXTILE: Ind-Ra Assigns D Long-Term Issuer Rating
GANPATI RICE: Ind-Ra Affirms 'IND B' Long-Term Issuer Rating
GARGO MOTORS: CRISIL Reaffirms 'B+' Rating on INR80MM Loan
GLOBAL KNITFAB: CRISIL Assigns 'B' Rating to INR66.9MM Term Loan
GOPAL CHAKRABORTY: Ind-Ra Assigns B+ Rating to INR142.16MM Loan
GRAMEEN VIKAS: CRISIL Assigns 'B+' Rating to INR20MM LT Loan
HARIHARA METALLOYS: Ind-Ra Assigns BB+ Long-Term Issuer Rating
HEM COTEX: CRISIL Reaffirms B+ Rating on INR140MM Cash Loan
HINDUSTAN ORGANIC: CARE Ups Rating on INR100cr Loan From 'D'
J.K IMPEX: Ind-Ra Withdraws IND B-(suspended) LT Issuer Rating
JAYAHO AGRI: CRISIL Reaffirms 'D' Rating on INR120MM Cash Loan
JSW STEEL: Moody's Cuts Corporate Family Rating to Ba3
KALOSONA HIMGHAR: CRISIL Assigns 'B' Rating to INR55MM Loan
KESAR PHARMA: CRISIL Suspends 'B' Rating on INR46MM Term Loan
KUMARPUR AGRO: CRISIL Reaffirms 'B+' Rating on INR33.2MM Loan
M/S ESS PEE: Ind-Ra Assigns BB+ Long-Term Issuer Rating
MAHARAJA PAPER: CARE Reaffirms 'B' Rating on INR12cr LT Loan
MAITY POULTRIES: CRISIL Reaffirms B+ Rating on INR81.7MM Loan
MAYAR INDIA: CRISIL Assigns 'B+' Rating to INR50MM Term Loan
MAYAR INFRASTRUCTURE: CRISIL Rates INR1.25BB Term Loan at 'B'
MOONAK ISPAT: Ind-Ra Withdraws IND B(suspended) LT Issuer Rating
NAKKHEERAN PUBLICATIONS: CRISIL Reaffirms B INR100MM Loan Rating
NOSLAR INTERNATIONAL: Ind-Ra Raises Long-Term Issuer Rating to BB
P.N.TEX: Ind-Ra Assigns BB- Long-Term Issuer Rating
PATSON GLOBAL: CRISIL Suspends B+ Rating on INR50MM Cash Loan
PAYAL PETROPACK: CRISIL Suspends 'B' Rating on INR80MM Cash Loan
PRATUL ENTERPRISES: Ind-Ra Withdraws B- Long-Term Issuer Rating
RAJASTHAN TRANSMAT: CRISIL Assigns 'B' Rating to INR30MM Loan
RAMAKRISHNA ELECRONICS: CARE Cuts Rating on INR30cr Loan to 'D'
S V FOODS: CARE Assigns 'B+' Rating to INR10.50cr LT Loan
SANKRAIL AGRO: CRISIL Reaffirms B+ Rating on INR160MM Term Loan
SATHYAM GREEN: Ind-Ra Raises Rating on INR358.4MM Loan to BB-
SMART STAINLESS: CRISIL Reaffirms B+ Rating on INR57MM Loan
SRI SWAMI: CRISIL Reaffirms 'B+' Rating on INR243MM Cash Loan
SRINIVASA ENGINEERING: CRISIL Puts 'B' Rating on INR57.5MM Loan
SUBRA ENTERPRISES: CRISIL Reaffirms B+ Rating on INR80MM Loan
SUPER CRAFT: CRISIL Ups Rating on INR164.5MM Term Loan to 'B'
SURAJ VALUE: CARE Reaffirms B+ Rating on INR15.55cr LT Loan
TOOLFAB ENGINEERING: CARE Reaffirms B Rating on INR19.92cr Loan
UMAK EDUCATIONAL: CARE Assigns 'D' Rating to INR66.37cr LT Loan
UNISOURCE PAPERS: CRISIL Assigns B- Rating to INR20.5MM Loan
UPPER INDIA: Ind-Ra Withdraws B+ Long-Term Issuer Rating
VAIBHAV COTEX: CARE Assigns 'B+' Rating to INR7.36cr LT Loan
VAISHNO INTERNATIONAL: Ind-Ra Withdraws IND BB+ LT Issuer Rating
VARDHMAN ISPAT: Ind-Ra Withdraws 'IND B' LT Issuer Rating
VISA STEEL: CARE Reaffirms 'D' Rating on INR2,380.48cr Loan
VISHAL CAR: CRISIL Ups Rating on INR67MM LT Loan to 'B+'
VIVA MERCHANTS: Ind-Ra Suspends BB+ Long-Term Issuer Rating
VIVEKANAND INDUSTRIES: CARE Assigns B+ Rating to INR11.30cr Loan
J A P A N
MITSUI O.S.K.: Moody's Affirms Ba1 Corporate Family Rating
KAWASAKI KISEN: Moody's Reviews Ba2 CFR for Downgrade
SHARP CORP: Foxconn Expects to Strike Purchase Deal By End Feb.
TOSHIBA CORP: Revises Annual Loss Forecast to JPY710 Billion
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A U S T R A L I A
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ALINTA ENERGY: Moody's Affirms B1 Corporate Family Rating
---------------------------------------------------------
Moody's Investors Service has affirmed Alinta Energy Ltd's B1
corporate family rating and of Alinta Energy Finance's (AEF) B1
senior secured debt rating. At the same time, Moody's has
maintained the positive outlook on the ratings.
AEF is a fully owned subsidiary and funding vehicle for Alinta
Holdings Limited, and rated debt obligations are guaranteed by the
parent.
RATING RATIONALE
"The positive outlook reflects our expectation of further
strengthening in Alinta's credit metrics over the next 12-18
months, which mainly results from various management initiatives
to improve operating performance, such as the closure of Flinders
power stations and contract extensions in other key assets," says
Spencer Ng, a Moody's Vice President and senior analyst, adding
"this strengthening is however being counterbalanced by the
deterioration in operating conditions in the company's key
markets".
In particular, the B1 rating factors in the increasing uncertainty
in the commodity and resource sector in West Australia. Alinta
generates more than 75% of its EBITDA from the state, around one-
thirds of which is from contracted electricity sales and pipeline
capacity charges to iron ore mine in the Pilbara region and the
balance from its gas retail business.
Moody's believes that the weak commodity market is increasing
Alinta's counterparty risk exposure and the potential for
renegotiation of key offtake contracts.
Key customers for Alinta's Pilbara assets include BHP Billiton
Limited (A1 review for downgrade) and Roy Hill (unrated).
"Although the retail gas business is not directly exposed to weak
commodity prices, gas demand could be negatively affected by the
macro-economic challenges being experienced in the West Australia
economy, and in the medium term by the opaque and evolving nature
of the gas regulatory framework in the state," adds Ng.
The West Australian state government has stated that it intends to
open the retail gas market to full competition within the next
five years. Such a development could affect Alinta's strong market
position in the sector over time, which has to date been a key
underpin of its earnings. Although such development could also
present additional opportunity to Alinta to compete in the
residential electricity market.
The rating also factors in the potential for changes in the
company's long-term ownership. Around 81% of the company's equity
is currently held by financial investors, including private equity
and financial institutions. Given these shareholders have held
their stakes since 2011 and are generally not long term owners,
Moody's believes that there is a high likelihood of an ownership
change over the next few years, which creates uncertainty over
Alinta's long-term capital structure and financial policy.
The rating could be upgraded if Alinta's funds from operations to
debt ratio rises to the mid-teens range on a sustained basis and
FFO interest strengthens above 2.2x, coupled with stabilization in
the operating environment and improved clarity around the
ownership structure. On the other hand, the outlook on the rating
could revert back to stable if there is a reversal in the positive
trend in the credit metrics, further weakening in the operating
environment and/or adverse regulatory developments. Material
levels of unforeseen capital expenditure associated with the
closure of the Flinders power station in South Australia could
also pressure the rating.
Alinta is an energy retailer based in Australia with a gas and
electricity retail presence in Western Australian and to a lesser
extent in the east coast national electricity market. It has
around 800,000 customers in total. It is also the owner and
operator of seven intermediate or peaking power stations across
the country and a single power station in New Zealand. The
company's generation fleet has a combined generation capacity of
around 2,000 MW.
AROWANA INC: Issues Going Concern Doubt, Need for More Capital
--------------------------------------------------------------
Arowana Inc. will need to raise additional capital and cannot
provide assurance that new financing will be available, raising
substantial doubt about its ability to continue as a going
concern, according to Kevin Tser Fah Chin, executive chairman of
the board and chief executive officer, and Gary San Hui, chief
financial officer, chief investment officer and director of the
company in a regulatory filing with the U.S. Securities and
Exchange Commission on January 19, 2016.
As of November 30, 2015, the company had working capital of
$51,895, cash of $44,171 in its operating bank accounts and
$84,438,202 in marketable securities held in the trust account to
be used for an initial Business Combination or to convert its
ordinary shares. As of November 30, 2015, none of the amount on
deposit in the Trust Account was available to be withdrawn.
Messrs. Chin and Hui elaborated: "Until consummation of its
initial Business Combination, the company will be using the funds
not held in the Trust Account, plus the interest earned on the
Trust Account balance (net of income, and other tax obligations)
that may be released to the Company to fund its working capital
requirements, for identifying and evaluating prospective
acquisition candidates, performing business due diligence on
prospective target businesses, traveling to and from the offices,
plants or similar locations of prospective target businesses,
reviewing corporate documents and material agreements of
prospective target businesses, selecting the target business to
acquire and structuring, negotiating and consummating the Business
Combination.
"We anticipate that we will need to raise additional capital
through loans or additional investments from its shareholders,
officers, directors, or third parties to allow us to operate until
our liquidation date, November 6, 2015. None of the shareholders,
officers or directors are under any obligation to advance funds
to, or to invest in, the company. Accordingly, the company may not
be able to obtain additional financing. If the company is unable
to raise additional capital, it may be required to take additional
measures to conserve liquidity, which could include, but not
necessarily be limited to, curtailing operations, suspending the
pursuit of its business plan, and reducing overhead expenses. The
company cannot provide any assurance that new financing will be
available to it on commercially acceptable terms, if at all.
"These conditions raise substantial doubt about the company's
ability to continue as a going concern.
"Until our liquidation date, November 6, 2016, we will be using
our existing funds as well as additional capital for identifying
and evaluating prospective acquisition candidates, performing
business due diligence on prospective target businesses, traveling
to and from the offices, plants or similar locations of
prospective target businesses, reviewing corporate documents and
material agreements of prospective target businesses, selecting
the target business to acquire and structuring, negotiating and
consummating the business combination. Through date of liquidation
or an initial business combination, we anticipate that we will
incur approximately:
* $125,000 of expenses for the search for target businesses
and for the legal, accounting and other third-party expenses
attendant to the due diligence investigations, structuring
and negotiating of a business combination;
* $25,000 of expenses for the due diligence and investigation
of a target business by our officers, directors and initial
shareholders;
* $130,000 of expenses in legal and accounting fees relating
to our SEC reporting obligations;
* $120,000 for the administrative fee payable to Arowana
International Ltd. ($10,000 per month until liquidation or
an initial business combination is consummated); and
* $80,000 for general working capital that will be used for
miscellaneous expenses, including director and officer
liability insurance premiums.
"The amounts may vary depending upon the timing and work involved
in assessing any initial business combination and are the best
estimates determined by management."
At November 30, 2015, the company had total assets of $84,535,061
and total shareholders' equity of $5,000,005.
For the three months ended November 30, 2015, the company reported
a net loss of $132,678 as compared with a net loss of $5,673 for
the period from October 1, 2014 (inception) through November 30,
2014.
A full-text copy of the company's quarterly report is available
for free at: http://tinyurl.com/h7ma2ha
North Sydney, Australia-based Arowana Inc. (NASDAQ: ARWAU) is a
blank check company whose objective is to acquire, through a
merger, share exchange, asset acquisition, share purchase,
recapitalization, reorganization or other similar business
combination, one or more businesses or entities (a Business
Combination). At November 30, 2015, the company had not yet
commenced any operations.
ATLANTIC VANADIUM: To Buy Back Windimurra Vanadium Mine
-------------------------------------------------------
Cliff Sanderson at Dissolve.com.au reports that a deal has been
struck by Atlantic Ltd to purchase the Windimurra vanadium mine
from insolvency practitioners, one year following its placement
into administration. The purchase price is said to be AUD250,000.
Atlantic Ltd (ASX:ATI) -- http://atlanticltd.com.au/-- engages in
the acquisition, development and operation of the Windimurra
vanadium project. The Company's projects included Windimurra
Vanadium Project (Western Australia), and Aluminium Supply Chain
Project (Vietnam). Atlantic subsidiary Midwest Vanadium Pty Ltd
owns 100% of the Windimurra vanadium project (Windimurra), located
approximately 600 kilometers north of Perth in Western Australia.
Atlantic placed subsidiaries Atlantic Vanadium Holdings and
Midwest Vanadium Pty Ltd into administration in February 2015 with
Ferrier Hodgson being appointed as administrators, Dissolve.com.au
discloses. Shortly after, McGrathNicol were appointed as
receivers. The collapse took placed after an unsuccessful
restructuring talk between noteholders and Droxford Holdings,
Dissolve.com.au says.
CLIFFS NATURAL: Depository Shares Delisted From NYSE
----------------------------------------------------
The New York Stock Exchange LLC filed a Form 25 with the
Securities and Exchange Commission to remove from listing Cliffs
Natural Resources Inc.'s depositary shares, each representing a
1/40th ownership interest in a share of 7.00% Series A Mandatory
Convertible Preferred Stock, Class A.
About Cliffs Natural Resources
Cliffs Natural Resources Inc. --
http://www.cliffsnaturalresources.com/-- is a mining and natural
resources company. The Company is a major supplier of iron ore
pellets to the U.S. steel industry from its mines and pellet
plants located in Michigan and Minnesota. Cliffs also produces
low-volatile metallurgical coal in the U.S. from its mines located
in West Virginia and Alabama. Additionally, Cliffs operates an
iron ore mining complex in Western Australia and owns two non-
operating iron ore mines in Eastern Canada. Driven by the core
values of social, environmental and capital stewardship, Cliffs'
employees endeavor to provide all stakeholders operating and
financial transparency.
On Jan. 27, 2015, Bloom Lake General Partner Limited and certain
of its affiliates, including Cliffs Quebec Iron Mining ULC
commenced restructuring proceedings in Montreal, Quebec, under the
Companies' Creditors Arrangement Act (Canada). The initial CCAA
order will address the Bloom Lake Group's immediate liquidity
issues and permit the Bloom Lake Group to preserve and protect its
assets for the benefit of all stakeholders while restructuring and
sale options are explored.
The Company reported a net loss of $8.31 billion in 2014 following
net income of $362 million in 2013.
As of Dec. 31, 2015, the Company had $2.13 billion in total
assets, $3.94 billion in total liabilities and a total deficit of
$1.81 billion.
* * *
As reported by the TCR on Feb. 1, 2016, Standard & Poor's Ratings
Services said it lowered its corporate credit rating on
Cleveland-based iron ore producer Cliffs Natural Resources Inc. to
'CC' from 'B'. The rating action reflects Cliffs' Jan. 27, 2016,
announcement of a private debt exchange offer for its second-lien
and senior unsecured debt.
The TCR reported on Jan. 8, 2016, that Moody's Investors Service
downgrade Cliffs Natural Resources Inc. Corporate Family Rating
and Probability of Default Rating to Caa1 and Caa1-PD from B1 and
B1-PD respectively. The downgrade reflects the deterioration in
the company's debt protection metrics and increase in leverage as
a result of continued downward movement in iron ore prices and
weak fundamentals in the US steel industry, which are resulting in
lower shipment levels.
CLIFFS NATURAL: Moody's Cuts Corporate Family Rating to 'Ca'
------------------------------------------------------------
Moody's Investors Service downgraded the corporate family rating
(CFR) of Cliffs Natural Resources Inc's to Ca from Caa1 and the
probability of default rating (PDR) to Ca-PD from Caa1-PD. At the
same time, Moody's downgraded the senior secured 1st lien notes to
Caa1 from B1, the senior secured 2nd lien notes to Caa3 from B3
and the senior unsecured notes to C from Caa2. The rating for
senior unsecured debt issuances under the company's shelf
registration was downgraded to (P) C from (P)Caa2. The speculative
grade liquidity rating was affirmed at SGL-3. The outlook is
negative.
Downgrades:
-- Probability of Default Rating, Downgraded to Ca-PD from Caa1-
PD
-- Corporate Family Rating, Downgraded to Ca from Caa1
-- Multiple Seniority Shelf, Downgraded to (P)C from (P)Caa2
-- Senior Secured Second Lien Regular Bond/Debenture, Downgraded
to Caa3 from B3
-- Senior Secured First Lien Regular Bond/Debenture, Downgraded
to Caa1 from B1
-- Senior Unsecured Regular Bond/Debenture, Downgraded to C from
Caa2
Outlook Actions:
-- Outlook, Remains Negative
Affirmations:
-- Speculative Grade Liquidity Rating, Affirmed SGL-3
RATINGS RATIONALE
The downgrade incorporates expectations for continued weakening in
debt protection metrics and high leverage. We estimate leverage,
as measured by the debt/EBITDA ratio of approximately 12x at year-
end 2015. The downgrade also acknowledges the company's
announcement of an offer to exchange up to $710 million of new 1.5
lien senior secured notes due 2020 for existing senior and second
lien notes at a significant discount to par. Moody's views this as
a distressed exchange and at closing of the exchange will append
an LD designation to Cliffs' PDR, reflecting the view that the
debt repurchases qualify as a limited default under Moody's
definition of default, which captures events whereby issuers fail
to meet debt service obligations outlined in their original debt
agreements.
The company's performance deteriorated over the course of 2015 due
to weakness in the iron ore markets and the US steel industry,
notwithstanding the contract nature of the US iron ore business.
Moody's does not expect material improvement in 2016.
The negative outlook incorporates the challenges that continue to
face the company in light of weaker iron ore prices and steel
industry conditions. The outlook also reflects the need to
renegotiate material offtake contracts expiring in December 2016
and January 2017.
The Speculative Grade Liquidity rating of SGL-3 continues to
reflect Moody's expectation for adequate liquidity despite
increased cash consumption on lower earnings and cash flow
generation, as well as higher seasonal working capital
requirements in the first several months of 2016.
Headquartered in Cleveland, Ohio, Cliffs is the largest iron ore
producer in North America with approximately 25.5 million equity
tons of annual capacity. In addition, the company participates in
the international seaborne iron ore markets through its subsidiary
in Australia. Cliffs' operations at Bloom Lake are being
restructured under the Canadian Companies' Creditors Arrangement
Act CCAA) and in May 2015, its Wabush iron ore operations in
Canada, which had been permanently closed, were included in the
CCAA filing. For the twelve months ended September 30, 2015, the
company had revenues of $2.4 billion (which includes revenues in
the fourth quarter of 2014 from the Canadian and Coal segments,
subsequently classified as discontinued operations). In December
2015, Cliffs' remaining coal operations - the Pinnacle Mine and
the Oak Grove Mine were sold to Seneca Coal Resources, LLC. The
transaction was valued at roughly $268 million based upon the
assumption of all liabilities by Seneca Coal. Cliffs' revenues for
the fiscal year ended December 31, 2015 were approximately $2
billion.
FOOD WITH SPICE: Restaurant Placed Into Liquidation
---------------------------------------------------
Simon Wilkinson at The Advertiser reports that Food with Spice Pty
Ltd, the company set up by the acclaimed chef Ragini Dey to
operate the Spice Kitchen restaurant before its sale last year,
has been forced into liquidation with debts of more than
AUD500,000 to creditors and employees.
Food with Spice, of which Ms Dey is the sole director, owes
AUD120,000 to the Australian Taxation Office, AUD113,000 in
superannuation payments, and smaller amounts to a variety of local
suppliers including Paracombe Wines and Omega Foods, The
Advertiser relates citing creditor list.
According to the report, Ms. Dey sold the restaurant in the middle
of last year to new owners who kept the name and premises. Her
picture and past achievements still appear on the restaurant's
website.
She confirmed on Feb. 2 that her company had gone into
liquidation, but said the move had been forced by the tax
department, The Advertiser says. She and her husband had been
attempting to repay what was owed, she said.
"We had arranged for it all to be paid back and had our house on
the market," The Advertiser quotes Ms. Dey as saying. "They had
given us a certain time frame which didn't work out. There was no
way we could do anything in that time."
The report relates that Ms Dey said some creditors had been repaid
with proceeds from the sale of the restaurant. The debt was the
result of "a few difficult things, some bad luck", rather than the
food and wine operation.
Ms Dey said the amount of superannuation owed was in dispute and
she believed it should be AUD32,000.
According to the report, liquidator Maris Rudaks, from BRI
Ferrier, said Food with Spice had been wound up in November
following an order of the Federal Court.
While it was early days in his investigation, the assets of the
company were minimal and it was unlikely any creditors would be
paid, the report relates.
At this stage there was no indication that Ms Dey had breached her
duty as a director, he said, adds The Advertiser.
HORSES DOWNUNDER: First Creditors' Meeting Set For Feb. 15
----------------------------------------------------------
Stephen Wesley Hathway at Helm Advisory was appointed as
administrator of Horses Downunder Pty Ltd on Feb. 3, 2016.
A first meeting of the creditors of the Company will be held at
Helm Advisory, Suite 4, Level 35, 50 Bridge Street, in Sydney, on
Feb. 15, 2016, at 11:00 a.m.
MEMBERS ALLIANCE: Faces Winding Up Bid Over AUD50,000 Debt
----------------------------------------------------------
Jenny Rogers at Gold Coast Bulletin reports that Members Alliance
faces being wound up over a AUD50,000 debt.
Members Alliance is also believed to be behind in rent payments
and in danger of breaching its lease conditions with Gold Coast
City Council, the report says.
The Bulletin says Members Alliance, which provides financial
planning and risk insurance strategies, in 2013 took over five
floors in The Rocket formerly occupied by defunct water retailer
Allconnex.
According to the report, the company, controlled by high-flying
Gold Coast-based directors David Domingo, Richard Marlborough, and
Colin Macvicar, established its head operations at the Robina
corporate power tower and subleased the property from the council
for six years.
The report relates that at the time, CEO Mr Domingo spruiked that
Members Alliance needed extra space to house its 220 employees and
said the company had big plans for future growth.
But Ken Atchison, managing director of Melbourne-based financial
services consulting firm Atchison Consultants, is threatening to
have Members Alliance wound up after a two-year battle over an
outstanding AUD50,000 debt, the report says.
The Bulletin notes that Mr Atchison's business in late 2013 was
contracted to develop mortgage, residential property, and
distressed property investment products for Members Alliance and
its associated company, Iridium Holdings.
"They were looking at expanding their services into new areas and
I had a team spend around six months completing the work," the
report quotes Mr Atchison as saying. "We billed them in early
2014 but failed to receive full payment."
OM (MANGANESE): Seeks Expressions of Interest for Assets
--------------------------------------------------------
Cliff Sanderson at Dissolve.com.au reports that expressions of
interest are sought for the purchase or recapitalisation of assets
and business of OM (Manganese) Ltd.
Dissolve.com.au relates that major investments include Bootu Creek
manganese mine and resource as well as onsite processing plant,
camp and workshops. The buyer of the business will also get to own
OM's mobile mining equipment and plant, the report notes.
OM (Manganese) Ltd is a wholly owned subsidiary of OM Holdings
Limited (ASX:OMH), a Singapore-based company engaged mining
manganese product in Australia and South Africa.
OM (Manganese) Ltd appointed James Thackray as voluntary
administrator on Jan. 4, 2016.
R-VALUE INSULATION: First Creditors' Meeting Set For Feb. 15
------------------------------------------------------------
Shahin Hussain and Richard Albarran of Hall Chadwick were
appointed as administrators of R-Value Insulation Pty Ltd on Feb.
3, 2016.
A first meeting of the creditors of the Company will be held at
Level 19, 144 Edward Street, in Brisbane, Queensland, on Feb. 15,
2016, at 2:30 p.m.
REVOLUTION BRANDS: First Creditors' Meeting Set For Feb. 15
-----------------------------------------------------------
Barry Wight of Cor Cordis Chartered Accountants was appointed as
administrators of Revolution Brands Pty Ltd, on Feb. 3, 2016.
A first meeting of the creditors of the Company will be held at
Institute of Chartered Accountants, Level 3, 600 Bourke Street, in
Melbourne, on Feb. 15, 2016, at 11:00 a.m.
WEATHERPROOF ROOFING: First Creditors' Meeting Set For Feb. 15
--------------------------------------------------------------
John Morgan & Geoffrey Davis of BCR Advisory were appointed as
administrators of Weatherproof Roofing NQ Pty Ltd on Feb. 3, 2016.
A first meeting of the creditors of the Company will be held at
Sturt Business Centre, Level 1, 25 Sturt Street, Townsville, in
Queensland, on Feb. 15, 2016, at 12:00 p.m.
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C H I N A
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AVIC INTERNATIONAL: Moody's Cuts Sr. Unsec. Bond Rating to Ba1
--------------------------------------------------------------
Moody's Investors Service has downgraded the senior unsecured
rating for the bonds issued by AVIC International Finance &
Investment Limited and guaranteed by AVIC International Holding
Corporation (AVIC International) to Ba1 from Baa3.
At the same time, Moody's has assigned a Ba1 corporate family
rating to AVIC International and withdrawn the company's issuer
rating.
The outlook on the ratings is negative.
These rating actions conclude Moody's rating review of AVIC
International initiated on 12 November 2015.
RATINGS RATIONALE
"The downgrade reflects our concern on the company's persistently
high leverage, as a result of its aggressive land acquisition, low
levels of profitability and consistently negative free cash flows
from operations," says Joe Morrison, a Moody's Vice President and
Senior Credit Officer, and also the International Lead Analyst for
AVIC International Holding.
Moody's expects that AVIC International Holding will register a
debt/EBITDA around 11x for full year 2015. This level would no
longer support a Baa3 rating and would be weak for its lowered
standalone credit profile.
AVIC International's Ba1 rating continues to incorporate a four-
notch uplift, based on Moody's expectation that the company will
receive a high level of support from its parent, Aviation
Industrial Corporation of China (unrated), in a stress situation.
Its parent is 100% owned by the Chinese government (Aa3 stable)
through the State-owned Assets Supervision and Administration
Commission of the State Council.
AVIC International's high leverage is largely driven by debt
incurred through its property segment's aggressive land
acquisitions over the last two years and weak contracted sales.
Moody's estimates that around 50% of the company's total debt is
used to support land acquisitions. These acquisitions have driven
up its inventory levels and pressured its operating cash flows.
While the performances of other key business segments such as
international aviation, electronics, consumer and retail were
stable in 2015, its resources development and investment
businesses remained loss-making.
Moody's notes that AVIC International intends to improve its debt
leverage by reducing its presence in the property business through
the sale of its subsidiaries or asset disposals. However, Moody's
points out that it is unclear as to whether or not the company can
execute its deleverage plan as scheduled, given the challenges in
the Chinese property market for lower-tier cities.
AVIC International has secured additional long term capital, such
as the RMB5.4 billion in equity placements by its subsidiaries,
Tianma Micro-electronics Co., Ltd (unrated) and Fiyta Holdings Ltd
(unrated), as well as RMB5.1 billion from the issuance of
perpetual securities in the six months to 31 December 2015.
Moody's considers the perpetual securities as debt like
instruments.
"While these capital raisings have partially alleviated AVIC
International's near-term funding pressures, the equity issuance
by its subsidiaries is insufficient to address our concerns over
the company's high debt leverage without material debt reduction
through equity raising or assets disposal," says Pingping Xing, a
Moody's Assistant Vice President and Analyst, and also the Local
Market Analyst for AVIC International Holding.
AVIC International's liquidity profile is weak.
While its internally generated cash flows and cash on hand are
insufficient to fund its projected capital spending and short-term
debt maturities, Moody's expects that the company can roll-over
its short term borrowings and maintain access to funding markets,
given its status as a key subsidiary of a state-owned enterprise.
The negative outlook on the ratings reflects the uncertainties as
to whether or not AVIC International can execute its deleverage
plan over the next 12-18 months. Any improvement in its credit
profile will depend on the strength of its commitment to its
deleverage plan, and the performance of its key profit
contributors, particular its Real Estate & Hotel Management
business.
Upward ratings pressure is limited over at least the next 1-2
years, given the negative ratings outlook.
Nevertheless, the outlook could return to stable if the company
lowers its debt levels over the next 12-18 months; in particular,
if its: (1) adjusted debt/EBITDA falls below 7.0x-8.0x; and (2)
adjusted debt/capitalization falls below 70% on a consistent
basis.
On the other hand, AVIC International's ratings will be downgraded
if:
(1) It fails to implement a deleverage plan;
(2) It continues to adopt an aggressive debt-funded growth
approach;
(3) Its underlying business performance deteriorates materially;
and
(4) There is evidence of weakening support from its parent, or its
parent's credit profile weakens significantly, or if its parent
ceases to own a controlling stake in AVIC International.
The credit metrics that Moody's will consider for a downgrade
include: adjusted debt/EBITDA, and/or adjusted debt/capitalization
in excess of 8.0x and 70%, respectively over the next 12-18
months.
AVIC International Holding Corporation is 62.52% owned by its
parent, Aviation Industrial Corporation of China (AVIC).
The subsidiary represents its parent's largest by revenue and
profit contribution. It is also AVIC's key platform for the parent
company's international aviation businesses.
AVIC International also aggregates most of AVIC Group's non-
aviation related businesses, including property, commodity
trading, construction, retail, consumer products, high-tech
electronics, and resources development. Its revenues in the 12
months ended 30 June 2015 totaled RMB139 billion.
AVIC is wholly owned by China's central government. It aggregates
China's aviation industry and is the sole producer of military
aircraft and other aviation products for China's army. It also
manufactures civil airplanes and owns a diversified portfolio of
non-aviation-related businesses. AVIC's 2014 revenues totaled
RMB384 billion.
CHINA BAK: Has US$15.0 Million Current Deficit at Sept. 30
----------------------------------------------------------
China BAK Battery, Inc.'s working capital deficit was US$15.0
million at September 30, 2015. The deficit was US$35.6 million as
of September 30, 2014.
At September 30, 2015, the Company had total current assets of
US$19.6 million and total current liabilities of US$34.5 million.
At September 30, 2014, the Company had total current assets of
US$12.7 million and total current liabilities of US$48.3 million.
The Company said: "Before the foreclosure of the pledged ownership
of BAK International Limited (BAK International), we had
historically financed our liquidity requirements from a variety of
sources, including short-term bank loans, other short-term loans
and bills payable under bank credit agreements, factoring of bills
receivable to banks and issuance of capital stock. For fiscal
2015, we were primarily financed by short-term bank loans and
funds from new investors.
"As of September 30, 2015, we had cash and cash equivalents of
$6.8 million. Our total current assets were $19.6 million and our
total current liabilities were $34.5 million, resulting in a net
working capital deficiency of $15.0 million. These factors raise
substantial doubts about our ability to continue as a going
concern.
"During the fiscal year of 2015, we received advances of
approximately $9.8 million from certain investors and entered into
a Debt Conversion Agreement with these investors on September 29,
2015 to convert these loans into an aggregate 4,376,731 shares of
our common stock. In June 2015, we entered into a banking
facility letter with Bank of Dandong to provide a maximum loan
amount of $12.6 million and bank acceptance and letters of credit
of $5.0 million with a term expiring on June 22, 2016. The
banking facilities were guaranteed by Shenzhen BAK, Mr. Li and Ms.
Xiaoqiu Yu, Mr. Li's wife. The facilities were also secured by
pledged deposits and our Dalian, China site's buildings,
constructions in progress, land use rights and machinery and
equipment. On June 25, 2015, we borrowed RMB50 million
(approximately $7.9 million), one-year term bank loan bearing
fixed interest at 7.84% per annum under the banking facilities.
On August 18, 2015, we borrowed RMB30 million (approximately $4.7
million) one-year term bank loan bearing a fixed interest at 7.84%
per annum under the banking facilities. As of September 30, 2015,
we had unutilized committed banking facilities of $1.8 million.
We may require additional cash to complete the construction of the
new Dalian manufacturing facilities. We may also require
additional cash due to changing business conditions or other
future developments, including any investments or acquisitions we
may decide to pursue. We plan to renew these loans upon maturity,
and plan to raise additional funds through bank borrowings and
equity financing in the future to meet our daily cash demands, if
required. However, there can be no assurance that we will be
successful in obtaining this financing. If our existing cash and
bank borrowing are insufficient to meet our requirements, we may
seek to sell equity securities, debt securities or borrow from
lending institutions. We can make no assurance that financing
will be available in the amounts we need or on terms acceptable to
us, if at all. The sale of equity securities, including
convertible debt securities, would dilute the interests of our
current shareholders. The incurrence of debt would divert cash
for working capital and capital expenditures to service debt
obligations and could result in operating and financial covenants
that restrict our operations and our ability to pay dividends to
our shareholders. If we are unable to obtain additional equity or
debt financing as required, our business operations and prospects
may suffer.
"In the meanwhile, due to the growing environmental pollution
problem, the Chinese government is currently providing vigorous
support to the new energy facilities and vehicle. It is expected
that we will be able to secure more potential orders from the new
energy market, especially from the electric car market. We
believe with that the booming future market demand in high power
lithium ion products, we can continue as a going concern and
return to profitability.
"Net cash used in operating activities was $2.0 million in the
year ended September 30, 2015, as compared with net cash used in
operating activities of $29.3 million in fiscal year 2014. The
decrease of $27.3 million in net cash used in operating activities
was mainly attributable to changes in trade accounts and bills
payable.
"Net cash used in investing activities decreased to $5.5 million
in fiscal 2015, from $17.5 million in fiscal 2014. Such change
was mainly attributable to the reduction of payment for capital
expenditure of $6.1 million and receipt of deferred government
grant of $7.4 million in 2015.
"Net cash provided by financing activities was $13.3 million in
fiscal 2015, compared with net cash provided by financing
activities of $33.8 million in fiscal 2014. Such change was
mainly attributable to a reduction of advance from other payables.
"On June 22, 2015, our subsidiary, Dalian BAK Power Battery Co.,
Ltd (Dalian BAK Power) entered into a banking facility letter with
Bank of Dandong to provide a maximum loan amount of $12.6 million
(RMB80 million) and bank acceptance and letters of credit of $5.0
million (RMB60 million) with a term expiring on June 22, 2016.
The banking facilities were guaranteed by Shenzhen BAK, Mr. Li and
Ms. Xiaoqiu Yu, Mr. Li's wife. The facilities were also secured
by our Dalian site's buildings, constructions in progress, land
use rights and machinery and equipment. We are required to place
50% and 20% bank deposit prior to issuance of bills payable and
letters of credit, respectively. Loans of $12.6 million (RMB80
million), bills payable of $3.2 million (RMB20.3 million) were
outstanding as of September 30, 2015. We have unutilized committed
banking facilities of $1.8 million.
"We incurred capital expenditures of $12.9 million and $19.0
million in fiscal years 2015 and 2014, respectively. Our capital
expenditures in 2015 were used primarily to construct our Dalian
facility.
"We estimate that our total capital expenditures in fiscal year
2016 will reach approximately $47.2 million. Such funds will be
used to construct a new plant with 6 product lines and a new
warehouse."
A copy of the Form 10-K is available at http://is.gd/WV0Uoe
China BAK Battery, Inc. manufactures and sells new energy high
power lithium batteries that are mainly used in electric vehicles
that include electric cars, buses and hybrid electric cars and
buses; light electric vehicles like electric bicycles, motors and
sight-seeing cars; and electric tools, energy storage, and
uninterruptible power supply. The Company maintains its
headquarters in Liaoning, China.
KU6 MEDIA: Shanda Interactive Holds 69.9% of Ordinary Shares
------------------------------------------------------------
In an amended Schedule 13D filed with the Securities and Exchange
Commission, Shanda Interactive Entertainment Limited, et al.,
disclosed that as of Feb. 1, 2016, they beneficially own
3,334,694,602 ordinary shares, Par Value $0.00005 Per Ordinary
Share, and American Depositary Shares, Each Representing 100
Ordinary Shares, of KU6 Media representing 69.9 percent of the
shares outstanding. A copy of the regulatory filing is available
for free at http://is.gd/KIm9fg
About Ku6 Media
Ku6 Media Co., Ltd. -- http://ir.ku6.com/-- is an Internet video
company in China focused on User-Generated Content. Through its
premier online brand and online video Web site --
http://www.ku6.com/-- Ku6 Media provides online video uploading
and sharing service, video reports, information and entertainment
in China.
As of Dec. 31, 2015, the Company had $9.01 million in total
assets, $14.31 million in total liabilities and a $5.29 million
total shareholders' deficit.
PricewaterhouseCoopers Zhong Tian LLP, in Shanghai, the People's
Republic of China, issued a "going concern" qualification on the
consolidated financial statements for the year ended Dec. 31,
2014, citing that the Company's recurring losses, negative working
capital, net cash outflows, and uncertainties associated with
significant changes made, or planned to be made, in respect of the
Company's business model, raise substantial doubt about the
Company's ability to continue as a going concern.
KU6 MEDIA: To Consider "Going Private" Proposal
-----------------------------------------------
Ku6 Media Co., Ltd. announced that in response to the preliminary
non-binding proposal letter dated Feb. 1, 2016, received by the
Company's Board of Directors from Shanda Interactive Entertainment
Limited, the controlling shareholder of the Company, to acquire
the Company in a "going private" transaction, the Board has formed
a special committee of independent directors who are not
affiliated to any member of the Proposing Buyer consisting of Mr.
Qingmin Dai, Mr. Yong Gui and Ms. Jun Deng to evaluate the
Proposal. The Special Committee intends to retain its own
independent financial advisor and legal counsel to assist it in
its evaluation.
The Company cautions its shareholders and others considering
trading its securities that neither the Board nor the Special
Committee has made any decision with respect to the Company's
response to the Proposal. There can be no assurance that any
definitive offer will be made by the Proposing Buyer or any other
person, that any definitive agreement will be executed relating to
the proposed transaction, or that the proposed transaction or any
other transaction will be approved or consummated.
About Ku6 Media
Ku6 Media Co., Ltd. -- http://ir.ku6.com/-- is an Internet video
company in China focused on User-Generated Content. Through its
premier online brand and online video Web site --
http://www.ku6.com/-- Ku6 Media provides online video uploading
and sharing service, video reports, information and entertainment
in China.
As of Dec. 31, 2015, the Company had $9.01 million in total
assets, $14.31 million in total liabilities and a $5.29 million
total shareholders' deficit.
PricewaterhouseCoopers Zhong Tian LLP, in Shanghai, the People's
Republic of China, issued a "going concern" qualification on the
consolidated financial statements for the year ended Dec. 31,
2014, citing that the Company's recurring losses, negative working
capital, net cash outflows, and uncertainties associated with
significant changes made, or planned to be made, in respect of the
Company's business model, raise substantial doubt about the
Company's ability to continue as a going concern.
RENHE COMMERCIAL: S&P Lowers CCR to 'CCC-'; Outlook Negative
------------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its long-
term corporate credit rating on Renhe Commercial Holdings Co. Ltd.
to 'CCC-' from 'CCC'. The outlook is negative. At the same time,
S&P lowered the issue rating on the company's outstanding
US$161.2 million 13% senior unsecured notes due March 2016 to 'CC'
from 'CCC-'. In addition, S&P lowered its long-term Greater China
scale ratings on Renhe to 'cnCCC-' from 'cnCCC' and that on its
notes to 'cnCC' from 'cnCCC-'. S&P then removed all the ratings
from CreditWatch, where they were placed with negative
implications on Jan. 5, 2016. Renhe is a China-based underground
mall developer and operator.
"We lowered the ratings on Renhe to reflect the risk that the
company may not be able to repay its outstanding notes due March
2016, given that it has currently no concrete or confirmed
repayment plan. In our view, the company's internal resources are
insufficient to repay the US$162 million due," said Standard &
Poor's credit analyst Dennis Lee.
S&P's view reflects Renhe's sluggish business performance and the
fact that it does not possess land use rights on the properties
that it operates, which limits its ability for meaningful asset
disposals. As of end of June 2015, Renhe has Chinese renminbi
(RMB) 817 million in unrestricted cash.
Renhe says it is negotiating with lenders for new borrowings or
financing specifically to repay the outstanding amount on the
notes. S&P do not rule out the chance that Renhe may obtain new
borrowings for the notes repayment in the coming 30 days, given
its record in obtaining US$400 million worth of bank borrowings as
well as a rights issue for a distressed exchange of the notes in
late 2014. Nevertheless, this is becoming harder because of the
time constraints and the continual deterioration in Renhe's
business performance.
Renhe disclosed that it had breached a covenant on its US$250
million and HK$390 million bank loans on Dec. 31, 2015, by failing
to maintain a minimum cash amount and completely register the
assets for its project in Wuxi as collateral. However, S&P
believes lenders are fully aware of the progress to date and they
have not stated their intention to accelerate repayment. The
breach technically allows the lenders to potentially accelerate
the repayment of the loans. Such acceleration could trigger a
cross default on Renhe's other bank borrowings.
"The negative outlook reflects our view of the risks over Renhe's
ability to repay its senior notes due March 2016, given that the
company has yet to firm up a concrete repayment plan. We believe
Renhe will be reliant on external funding sources to fulfill the
repayment, given insufficient internal resources. However, Renhe
may face difficulties in obtaining new financing due to its weak
business performance and time constraints," said Mr. Lee.
S&P would downgrade Renhe to 'CC' if the company announces a
distressed exchange offer to noteholders before the notes maturity
on March 10, 2016. S&P would further lower the rating to 'SD' if
the debt restructuring is confirmed.
S&P would also lower the rating to 'SD' if Renhe could not timely
repay its notes due on March 10, 2016. S&P would also lower the
rating to 'SD' if lenders accelerate the repayment of its bank
borrowings because of the covenant breach. This could result in
the cross-default of its other borrowings, and S&P do not believe
Renhe has sufficient resources to repay.
S&P may revise the outlook to stable or raise the rating if Renhe
timely repays its notes due March 2016 and complies with all
requirements to resolve the covenant breach.
SUNRISE REAL: Estate Has US$10.2-Mil. Deficit at March 31
---------------------------------------------------------
Sunrise Real Estate Group, Inc.'s working capital deficit was
US$10.2 million at March 31, 2014. The deficit was US$9.0 million
as of December 31, 2013.
At March 31, 2014, the Company had total current assets of
US$48.7 million and total current liabilities of US$58.9 million.
At December 31, 2013, the Company had total current assets of
US$40.2 million and total current liabilities of US$49.2 million.
The Company said: "In the first quarter of 2014, our principal
sources of cash were revenues from our agency sales and property
management business. Most of our cash resources were used to fund
our property development investment and revenue related expenses,
such as salaries and commissions paid to the sales force, daily
administrative expenses and the maintenance of regional offices.
"We ended the period with a cash position of $3,227,632.
"Our operating activities used cash in the amount of $7,988,203,
which was primarily attributable to the other receivables and
deposits.
"Our investing activities used cash resources of $42,978, which
was primarily attributable to the acquisition of property, plant
and equipment and long-term investments.
"Our financing activities obtained cash resources of $7,959,599,
which was primarily attributable to funds received from capital
increase.
"The potential cash needs for 2014 will be the repayments of our
bank loans and promissory notes, the rental guarantee payments and
promissory deposits for various property projects as well as our
development projects in Wuhan and Linyi.
"We currently have four bank loans payable, including a $1,300,369
(RMB8,000,000) loan and $11,379,229 (RMB70,000,000) loan. Both of
the loans were due on March 1, 2015 and May 25, 2015, and can be
extended automatically for another years and both have been
extended for another year to 2016. Another two loan
(RMB30,500,000) and (RMB75,000,000), both were due on March 11,
2015 and have been extended for another year to 2016.
"As of March 31, 2014, promissory notes in the principal amount of
$15,198,449 were in default compared to promissory notes in the
principal amount of $5,076,547 that were in default as of December
31, 2013.
"Taking into account of our cash position, available credit
facilities and cash generated from operating activities, we
believe that we have sufficient funds to operate our existing
business for the next twelve months. If our business otherwise
grows more rapidly than we currently predict, we plan to raise
funds through the issuance of additional shares of our equity
securities in one or more public or private offerings. We will
also consider raising funds through credit facilities obtained
with lending institutions. There can be no guarantee that we will
be able to obtain such funds through the issuance of debt or
equity or obtain funds that are with terms satisfactory to
management and our board of directors."
A copy of the Form 10-Q is available at http://is.gd/Z8SL8y
Shanghai, China-based Sunrise Real Estate Group, Inc.'s principal
activities are real estate agency sales, real marketing services,
property management services, and real estate development in
China. The Company has focused its sales on the whole China
market, especially in secondary cities. To expand its agency
business, the Company has established subsidiaries and branches in
Shanghai, Suzhou, Yangzhou, Chongqing, Quanjiao, Hainan, Shangqiu,
Chengdu, Wuhan, Kunshan and Linyi.
=========
I N D I A
=========
AADHISHIVA ENTERPRISES: CARE Assigns 'D' Rating to INR6.35cr Loan
-----------------------------------------------------------------
CARE assigns 'CARE D' rating to the bank facilities of Aadhishiva
Enterprises.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 6.35 CARE D Assigned
Rating Rationale
The rating assigned to the bank facilities of Aadhishiva
Enterprises (AE) factors in the delays in servicing the debt
obligations owing to tight liquidity position arising out of delay
in payments from the customers.
Aadhishiva Enterprises (AE) is a proprietorship concern
established by Mr Prathap Chandran in July 2007. AE is engaged in
trading of imported cashews and is operating in 3 facilities in
Kerala (Nedumpana and Pooyappally in Kollam and Attingal in
Thiruvananthapuram). Mr Prathap Chandran (34 years) has an overall
experience of 15 years. Prior to establishing AE, he was working
as a Marketing Executive with a pharmaceutical company for around
7 years.
AE imports raw cashews from African countries like Ivory Coast,
Ghana, Tanzaniya, Benin etc and undertakes the process of borma
(process of heating the cashews kernels), shelling, peeling,
grading and packing. AE has a centralized packing unit in Kollam
where the packing is done based on customer requirements.
M/s Asivat International is the associate proprietorship concern
owned by Mrs Aswani Sasi Kumar (w/o Mr Prathap Chandran). It is
engaged in trading of cashews. Asivat International is operating
in India and Singapore.
As per provisional results, AE achieved a PAT of INR0.20 crore on
a total operating income of INR21.51 crore in FY15 (refers to the
period April 1 to March 31) as compared with PAT of INR0.19 crore
on a total operating income of INR22.70 crore in FY14 (Audited).
ACTIS GENERICS: CRISIL Ups Rating on INR80MM Term Loan to B-
------------------------------------------------------------
CRISIL has upgraded its rating on the bank facilities of
Actis Generics Pvt Ltd to 'CRISIL B-/Stable' from 'CRISIL D.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 45 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Term Loan 80 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
The upgrade reflects timely servicing of debt by Actis over the
six months through December 2015. The upgrade also factors in
CRISIL's belief that the company will continue to service its debt
in a timely manner, with cash accruals expected to be sufficient
to meet its maturing debt obligations.
The ratings reflect Actis's below-average financial risk profile,
marked by small networth, high gearing, and weak debt protection
metrics. The ratings also factor in limited track record and
modest scale of operations, large working capital requirements,
and intense competition in the pharmaceutical intermediates
industry. These weaknesses are partially offset by the promoters'
extensive experience in the pharmaceutical industry.
Outlook: Stable
CRISIL believes Actis will continue to benefit over the medium
term from the promoters' extensive industry experience. The
outlook may be revised to 'Positive' in case of substantial and
sustained increase in revenues and profitability margins, or
improvement in capital structure driven most likely by equity
infusion by the promoters. Conversely, the outlook may be revised
to 'Negative' if a steep decline in profitability, any large,
debt-funded capital expenditure, or stretch in working capital
cycle weakens key credit metrics.
Actis was set up in 2013 by Mr. P.Venkatram Reddy, Mr. B.
Madhusudhana Reddy, and their family. The company manufactures
pharmaceutical intermediates, and commenced operations in 2014.
Its manufacturing facility is in Visakhapatnam, Andhra Pradesh.
AFFLATUS INTERNATIONAL: Ind-Ra Assigns BB+ LT Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Afflatus
International (AFI) a Long-Term Issuer Rating of 'IND BB+' with
Outlook Stable.
KEY RATING DRIVERS
The ratings reflect AFI's low-to-moderate scale of operations with
revenue of INR1,329.16 mil. in FY15 (FY14: INR1,155.94 mil.). The
ratings also reflect AFI's high customer concentration with the
top five buyers contributing around 88% to the total sales. Any
adverse change in the procurement policy of the customers would
affect the overall revenue of the firm.
The ratings also factor in AFI's partnership structure which
allows partners to withdraw capital.
However, the ratings are supported by AFI's comfortable credit
metrics in FY15 with interest coverage (operating EBITDA/gross
interest expense) of 3.86x (FY14: 3.02x) and financial leverage
(total Ind-Ra adjusted debt/operating EBITDAR) of 0.96x (1.25x).
The ratings are further supported by AFI's comfortable liquidity
as reflected in its nearly 80% average utilization of the working
capital limits during the 12 months ended December 2015. The net
working capital cycle was comfortable at 54 days in FY15 (FY14: 56
days). The ratings also draw comfort from the firm's established
track record of around four decades in garments manufacturing.
RATING SENSITIVITIES
Negative: A significant decline in the revenue and profitability
and/or deterioration in 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
Established in 1975, AFI manufactures denim and non-denim
garments. The firm provides end-to-end apparels solutions.
AFI's ratings:
-- Long-Term Issuer Rating: assigned 'IND BB+'; Outlook Stable
-- INR450 mil. fund-based limits: assigned
'IND BB+'/Stable/'IND A4+'
-- INR20 mil. non-fund-based limit: assigned 'IND A4+'
AMBICA AGARBATHIES: CARE Reaffirms D Rating on INR54.73cr LT Loan
-----------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Ambica Agarbathies Aroma & Industries Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 54.73 CARE D Reaffirmed
Short-term Bank Facilities 1.00 CARE D Reaffirmed
Rating Rationale
The rating assigned to the bank facilities of Ambica Agarbathies
Aroma & Industries Ltd (AAAIL) continues to remain constrained by
the stretched liquidity position resulting in delays in debt
servicing.
AAAIL was incorporated as Ambica Agarbathies & Aroma Industries
Limited on April 21, 1995, and subsequently the name of the
company was changed to current nomenclature in November 19,
2007. AAAIL is majorly engaged in manufacturing and trading of
Agarbathies (comprising about 81% of the revenue for FY15 [refers
to the period April 1 to March 31]) at its factories located at
Satrampadu and Duggirala, Eluru, Andhra Pradesh (A.P.). Besides,
the company also operates a Hotel Business (about 19% of the
revenue for FY15) and is also involved in wind power generation.
AAAIL is promoted by Mr Alapati Ramachandra Rao. The promoters
have established experience in the business segment and the
product manufactured is a well-established the brand name;
"Ambica", in the region.
In FY15, AAAIL has registered a total income of INR114.11 crore
(INR109.72 crore in FY14) with a PAT of INR1.44 crore (Rs.1.06
crore in FY14). As per the unaudited results for H1FY16, has
registered a total income of INR53.48 crore with a PAT of
INR0.51 crore.
ARBEE AQUATIC: Ind-Ra Assigns B Long-Term Issuer Rating
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Arbee Aquatic
Proteins Private Limited (AAPPL) a Long-Term Issuer Rating of
'IND B'. The Outlook is Stable.
KEY RATING DRIVERS
The ratings reflect AAPPL's nascent stage of operations and weak
credit metrics. The company started operations in February 2015.
9MFY16 provisional financials indicate revenue of INR184 mil.
(FY15: INR11 mil.). Net leverage is likely to be around 3.5x by
FYE16. Liquidity was moderate with fund-based working capital
facilities being utilized at an average of 90.8% over the 11
months ended December 2015.
The ratings are supported by the promoter's more than three
decades of experience in the fish oil industry.
RATING SENSITIVITIES
Positive: Substantial revenue growth and profitability improvement
leading to a sustained improvement in the overall credit metrics
will be positive rating action.
Negative: A substantial decline in the profitability resulting in
sustained deterioration in the overall credit metrics will lead to
a negative rating action.
COMPANY PROFILE
Incorporated in 2013, Alleppey, Kerala-based AAPPL manufactures
fish meal and fish oil. Its unit can process 150 metric tonne of
raw fish per day.
MPA's ratings are:
-- Long term Issuer Rating: assigned 'IND B', Outlook Stable
-- INR84.58 mil. term loans: assigned 'IND B'/Stable
-- INR26 mil. fund-based facilities: assigned 'IND B'/Stable
and 'IND A4'
-- INR2.2 mil. non-fund-based facilities: assigned 'IND A4'
BALA BALAJEE: CRISIL Reaffirms 'D' Rating on INR214.7MM Cash Loan
-----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Bala Balajee Textiles
Limited (BBTL) continue to reflect instances of delay by BBTL in
servicing its term debt. The delays have been caused by the
company's weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 13.9 CRISIL D (Reaffirmed)
Cash Credit 130 CRISIL D (Reaffirmed)
Letter of Credit 15 CRISIL D (Reaffirmed)
Proposed Cash
Credit Limit 66.4 CRISIL D (Reaffirmed)
Term Loan 214.7 CRISIL D (Reaffirmed)
BBTL has a below-average financial risk profile, marked by small
networth, high gearing, and weak debt protection metrics. The
company has large working capital requirements, and is exposed to
intense competition in the cotton yarn industry and to volatility
in cotton prices. However, BBTL benefits from its promoters'
extensive experience in the cotton yarn industry.
BBTL was set up in 2004 by Mr. Subba Rao Chitturi and his family
members. The company manufactures combed cotton yarn. Its spinning
unit is in West Godavari district in Andhra Pradesh.
BHAGWATI STEELS: Ind-Ra Assigns BB- Long-Term Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Bhagwati Steels
(BS) a Long-Term Issuer Rating of 'IND BB-'. The Outlook is
Stable. The agency has also assigned BGSTL's INR185 mil. fund-
based limits a Long-term 'IND BB-' rating with Stable Outlook and
a Short-term 'IND A4+' rating.
KEY RATING DRIVERS
The ratings reflect BS' weak credit metrics and low profitability
margins. In FY15, interest coverage (operating EBITDA/gross
interest expense) was 1.59x, net financial leverage (total Ind-Ra
adjusted net debt/operating EBITDAR) was 6.77x, and EBITDA margins
were 1.25%. The ratings are further constrained by the
proprietorship nature of the business. The ratings benefit from
the more than two decades of experience of BS' promoters in the
steel and iron trading business and its moderate scale of
operations. This is despite a fall in BS' revenue to
INR1,513.8 mil. in FY15 from INR1,802.73 mil. in FY14 due to a
decline in steel prices. The ratings also factor in BS'
comfortable liquidity as indicated by its 92.17% average maximum
working capital utilization during the 12 months ended January
2016.
RATING SENSITIVITIES
Positive: A substantial increase in the top line and an
improvement in the credit metrics could lead to a positive rating
action.
Negative: A dip in EBITDA margins leading to deterioration in the
credit metrics could lead to a negative rating action.
COMPANY PROFILE
BS is a part of Bhagwati Group. It is a proprietorship firm
engaged in the trading of iron and steel since 1989.
BHATINDA CERAMICS: CRISIL Reaffirms 'B+' Rating on INR27.5MM Loan
-----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Bhatinda Ceramics
Private Limited (BCPL) continue to reflect the company's modest
scale of operations in the transmission line equipment
manufacturing industry, along with a fluctuating operating margin
and working capital-intensive operations.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 25 CRISIL A4 (Reaffirmed)
Cash Credit 27.5 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 18.2 CRISIL B+/Stable (Reaffirmed)
Term Loan 14.3 CRISIL B+/Stable (Reaffirmed)
The ratings also factor in an average financial risk profile
because of a modest net worth and moderate debt protection
metrics. These rating weaknesses are partially offset by the
extensive industry experience of BCPL's promoters and funding
support from them, and the company's established relationship with
customers and suppliers.
Outlook: Stable
CRISIL believes BCPL will continue to benefit over the medium term
from its promoters' extensive industry experience and its
established relationship with customers and suppliers. The outlook
may be revised to 'Positive' in case of significant and sustained
improvement in revenue and/or profitability along with efficient
working capital management. Conversely, the outlook may be revised
to 'Negative' in case of considerable and continued decline in
operating profitability or deterioration in working capital
management, leading to pressure on the company's liquidity and
capital structure.
Update
Operating revenue was of INR130 million in 2014-15 (refers to
financial year, April 1 to March 31), about the same as in the
previous year. Revenue remained stagnant because of inability to
successfully bid for additional tenders floated along with
competition in the export market. Revenue is expected at around
INR135 million per annum over the medium term backed by a moderate
current order book. The operating margin remained volatile at 7-11
percent over the past few years owing to absence of a price
escalation clause in contracts executed. CRISIL believes the
margin will continue to be vulnerable to volatility in raw
material prices and will remain in the same vicinity over the
medium term.
Working capital requirement is high, as indicated by high gross
current assets of 310 days as on March 31, 2015, driven by high
debtors of 119 days, as sales to the governments of Nepal, Bhutan,
Afghanistan, and others led to stretched receivables. CRISIL
believes the working capital requirement will remain high over the
medium term owing to inventory requirement of 90 days and
stretched receivables.
The financial risk profile is expected to remain moderate owing to
moderate net worth of over INR38 million and moderate debt
protection metrics with an interest coverage ratio of over 1.5
times over the medium term. The financial risk profile however
remains constrained owing to large working capital requirement
leading to high dependence on short-term debt resulting in an
expected gearing of over 1 time over the medium term. Liquidity is
expected to remain adequate with cash accrual expected to be
sufficient to meet term debt obligations over the medium term. The
company's working capital facility of INR27.5 million has been
highly utilised at an average 89 per cent during the 13 months
through November 2015.
BCPL was set up in 1991 by Mr. Bhushan Agarwal and his family. It
manufactures transmission line equipment such as pin insulators,
disc insulators, post insulators, transformer bushings, and
porcelain housings for lightning arrestors. It is based in
Bathinda, Punjab.
BHAVANI ERECTORS: CARE Revises Rating on INR10cr Loan to BB-
------------------------------------------------------------
CARE revises/reaffirms the rating of the bank facilities of
Bhavani Erectors Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 10 CARE BB- Revised from
CARE B+
Short-term Bank Facilities 38 CARE A4 Reaffirmed
Rating Rationale
The revision in the long-term rating assigned to the bank
facilities of Bhavani Erectors Private Limited (BEPL) factors in
the improvement in liquidity position and the diversification of
the client base. The ratings continue to derive comfort from
the established track record of the company, healthy order book
position, growth in total income in FY15 (refers to the period
April 1 to March 31) and 8MFY16.
However, ratings continue to be constrained by the company's
concentrated order book focused on the power sector, primarily in
Kerala and the rudimentary management information systems (MIS).
Going forward, the ability of the company to further diversify its
client base across geographies, execute its orders as per
envisaged timelines, realize receivables from clients in a timely
manner and thereby effectively manage the working capital cycle
will be the key rating sensitivities.
Bhavani Erectors Private Limited (BEPL) was established as sole
proprietorship in the name "Bhavani Erectors" during 1985 by Mr S
M Pillai, a first-generation entrepreneur. Later in 2001, it was
converted into a private limited company and renamed as Bhavani
Erectors Private Limited. BEPL is based out of Karunagappally
(Kerala) and is involved in fabrication, erection, testing and
commissioning of power plants. The company acts as a sub-
contractor to its clients, which mainly include Bharat Heavy
Electricals Limited (BHEL) and Bridge and Roof company India
Limited (B&R, rated 'CARE AA-/A1+'). The company also carries out
maintenance activity of the power plants.
As per audited results of FY15, BEPL has achieved a PAT of INR9.96
crore on a total operating income of INR247.64 crore as compared
with a PAT of INR9 crore on a total operating income of INR232
crore in FY14. For 8MFY16, BEPL has reported total revenue of
INR104.35 crore and PAT of INR7.30 crore.
BHOLENATH RICEMILL: CARE Reaffirms B+ Rating on INR5.76cr Loan
--------------------------------------------------------------
CARE reaffirms rating to the bank facilities of Bholenath
Ricemill.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 5.76 CARE B+ Reaffirmed
Rating Rationale
The rating assigned to the bank facilities of Bholenath Rice Mills
(BRM) is constrained by the small scale of operations, financial
risk profile marked by low profitability inherent to the nature of
business along with weak solvency position and working capital-
intensive operations due to seasonal availability of paddy. The
rating is further constrained by the fragmented nature of
industry, high level of government regulations relating to Minimum
Selling Price (MSP) of rice and constitution of the entity as a
partnership firm limiting its financial flexibility.
The rating derives strength from the wide experience of the
partners in rice milling business and locational advantage
emanating from proximity to paddy growing area.
The ability of firm to increase its scale of operations along with
overall improvement in the financial risk profile is the key
rating sensitivity.
BRM was established as a partnership firm in the year 2006. The
firm is engaged in milling and processing of paddy. The processing
facility is located at Chandrapur, Maharashtra, with an installed
capacity to process 75,600 quintals of paddy per annum. The major
raw material for the firm is paddy which it procures directly
fromfarmers. The finished product of BRMincludes rice, broken rice
and its by-products are rice-bran and bagda. The firm sells its
finished product under the brand name 'Mrugnayani' and 'Arya
Gold'. It sells its products through six agents covering five
states of India, viz, Maharashtra, Madhya Pradesh, Gujarat,
Chhattisgarh and Karnataka.
BIOMAX FUELS: CRISIL Cuts Rating on INR400MM Loan to 'D'
--------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Biomax
Fuels Limited to 'CRISIL D/CRISIL D' from 'CRISIL C/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 20 CRISIL D (Downgraded from
'CRISIL A4')
Export Packing 400 CRISIL D (Downgraded from
Credit 'CRISIL C')
Letter of Credit 330 CRISIL D (Downgraded from
'CRISIL A4')
The downgrade reflects BMFL's continuous over drawl in its working
capital limits for more than 30 consecutive days; this was because
of weak liquidity.
The company also has a weak financial risk profile because of a
small net worth, high gearing, and declining operating
profitability. However, it benefits from the extensive
entrepreneurial experience of its promoters and established
relationship with major customers.
Having commenced operations in 2010, BMFL manufactures biodiesel.
The company is promoted by Mr. M Ravinder, Mr. N S Balamukundan,
Dr. N S Venkatesh, and Mr. Kalyan Chakravarthy. Its manufacturing
unit is in Visakhapatnam Special Economic Zone at Duvvuda, Andhra
Pradesh.
C R BROADCASTING: CRISIL Suspends 'B' Rating on INR107.5MM Loan
---------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of
C R Broadcasting Hyderabad Limited (CRBHL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long Term Loan 107.5 CRISIL B/Stable
Proposed Long Term
Bank Loan Facility 45.3 CRISIL B/Stable
Secured Overdraft
Facility 10 CRISIL B/Stable
The suspension of rating is on account of non-cooperation by
CRBHL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, CRBHL is yet to
provide adequate information to enable CRISIL to assess CRBHL'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'.
Incorporated in 2000 as Optima Solutions Pvt Ltd, the company was
renamed as CRBHL in March 2013. It operates a 24-hour Telugu
language television news channel by the name of '99 Percent'.
Based in Hyderabad, the company is promoted by Mr. Challa Srishant
and others. The day-to-day operations of the company are managed
by its CEO Mr. Kapil Suravaram. The company has already started
telecasting test signal during April 2014.
DAKSHIN EXPORTS: CRISIL Reaffirms 'B+' Rating on INR13MM Loan
-------------------------------------------------------------
CRISIL's ratings on the bank facilities of Dakshin Exports (DE)
continue to reflect the firm's moderate financial risk profile
because of modest networth, moderate gearing and debt protection
metrics, and working capital-intensive operations. These
weaknesses are partially offset by extensive experience of DE's
promoters.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long Term Loan 13 CRISIL B+/Stable (Reaffirmed)
Packing Credit in
Foreign Currency 162 CRISIL A4 (Reaffirmed)
Outlook: Stable
CRISIL believes DE will continue to benefit over the medium term
from promoters' extensive experience. The outlook may be revised
to 'Positive' if higher-than-expected revenue and profitability
lead to sustained and significant improvement in cash accrual and
capital structure. Conversely, the outlook may be revised to
'Negative' if working capital requirement increases significantly
or accrual declines sharply, resulting in deterioration in
liquidity.
Set up in 1996 as a partnership firm by Mr. Rajendra Babu and his
wife, Ms. R Vinitha, DE processes and trades in granite slabs.
DIGHI PORT: CARE Lowers Rating on INR777.09cr Loan to 'D'
---------------------------------------------------------
CARE revises the ratings to the long term bank facilities of
Dighi Port Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank Facilities- 777.09 CARE D Revised from
Term Loan CARE B+
Rating Rationale
CARE has revised the rating assigned to the bank facilities of
Dighi Port Limited (DPL) to 'CARE D' from 'CARE B+' due to
ongoing delays in debt servicing attributed to underutilization of
commissioned berths and unavailability of rail and road
connectivity.
DPL has been promoted by Balaji Infra Projects Ltd (BIPL, holding
51.01%), Infrastructure Leasing & Financial Services Ltd (IL&FS,
holding 39.37%) and Tara India Fund III LLC (5.46%) as a special
purpose vehicle (SPV) for the development of port at Dighi,
Maharashtra. As per the Concession Agreement (CA) dated March 17,
2002, with Maharashtra Maritime Board (MMB), DPL would develop,
design, finance, construct, operate and maintain the port on
Build, Own, Operate, Share and Transfer (BOOST) basis for a period
of 50 years. The port is located in the Rajpuri Creek, in Raigad
District in the State of Maharashtra.
The project suffered cost as well as time overrun and was admitted
to Corporate Debt Restructuring (CDR) cell for restructuring of
the project debt and the same was approved on June 27, 2012, with
the cutoff date of October 1, 2011.
The project now involves development of Phase 1A which includes
construction of three berths as well as development of Phase 1B
involving construction of two berths on a sub-concession basis.
ECOMOTEL HOTEL: CARE Reaffirms D Rating on INR13.79cr LT Loan
-------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Ecomotel Hotel Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 13.79 CARE D Reaffirmed
Rating Rationale
The reaffirmation of the rating assigned to the bank facilities of
Ecomotel Hotel Limited (EHL) takes into account the ongoing delays
in servicing of interest and installment obligations on the term
loan. Due to lower capacity utilisation, the company continued to
book losses during FY15 (refers to the period
April 1 to March 31).
The company's ability to scale-up operations, ensure healthy
profitability margins and timely servicing of debt obligations
will be the key rating sensitivities.
Ecomotel Hotel Limited (EHL) is a special purpose vehicle promoted
by Celebrations, a part of the Celebrations Group which operates
multiple specialty theme luxury hotels and resorts in Central
India and Lavasa Corporation Limited(LCL, rated CARE D for its
bank facilities), a Hindustan Construction Company Limited (HCC,
rated 'CARE C/CARE D/CARE A4') group company. EHL operates a mid-
priced 130 room hotel at Lavasa under the brand name 'Mercure
Lavasa'.
The hotel's built up area is around 77,000 square feet with 97
standard rooms, 31 superior rooms and 2 family rooms. Also, the
hotel operates four in-house restaurants suiting different
requirement of customers. The hotel is operated by AAPC Singapore
PTE Limited (Mercure Hotels) who are paid 6 per cent of gross room
rent as operating fees, in addition to other fees as per
agreement.
During FY15, EHL reported a net loss of INR1.56 crore on total
operating income of INR12.83 crore vis-…-vis net loss of INR3.30
crore and total operating income of INR11.82 crore in FY14.
G.R. TEXTILE: Ind-Ra Assigns D Long-Term Issuer Rating
------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned G.R. Textile
Mills (GRTM) a Long-Term Issuer Rating of 'IND D'.
KEY RATING DRIVERS
The ratings reflect GRTM's delays in debt servicing for the 12
months ended December 2015 due to tight liquidity.
RATING SENSITIVITIES
The ratings reflect GRTM's delays in debt servicing for the 12
months ended December 2015 due to tight liquidity.
COMPANY PROFILE
GRTM was incorporated under leadership of Mr. P. Govindaraj as a
proprietorship concern in 2003. The entity manufactures cotton
fabrics. Besides manufacturing from its own production
facilities, it outsources some portion of the fabric productions
to job workers. Its manufacturing facilities are located in
Tripur (Tamil Nadu).
GRTM's ratings:
-- Long-Term Issuer Rating: assigned 'IND D'
-- INR13.58 mil. long-term loan: assigned 'Long-term IND D'
-- INR47.50 mil. fund-based working capital limit: assigned
'Long-term IND D'
GANPATI RICE: Ind-Ra Affirms 'IND B' Long-Term Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Ganpati Rice
Mills (GRM) Long-Term Issuer Rating at 'IND B'. The Outlook is
Stable.
KEY RATING DRIVERS
The affirmation reflects GRM's small scale of operations despite
revenue increasing to INR179.29 million in FY15 (FY14: INR30.95
million). The ratings are constrained by the company's weak credit
metrics with net financial leverage of 14.32x (FY14: 4.30x) and
EBITDA gross interest coverage of 1.46x (3.16x).
GRM's revenue jumped drastically in FY15 mainly due to improved
utilisation of its upgraded manufacturing facility. The upgraded
facility started operations in September 2014. The firm incurred
capex of around INR70m for the same, which was partly debt funded.
The total debt increased to INR246.39 million during FY15 from
INR3.88 million in FY14. The ratings also consider the
commoditised nature of the end product, and volatility in raw
material prices.
The ratings are supported by the entity's comfortable liquidity
position as evident from its 85% working capital utilisation
during the 12 months ended December 2015. Operating EBITDA margins
improved to 9.54% in FY15 from 2.55% in FY14, due to upgradation
of facility.
RATING SENSITIVITIES
Negative: Deterioration in the operating profitability, leading to
deterioration in the credit metrics shall be negative for the
ratings.
Positive: A significant increase in the scale of operations along
with an improvement in the credit metrics shall be positive for
the ratings.
COMPANY PROFILE
Founded in June 1998, GRM operates as a rice miller. The facility
of the firm is located in Bareta Punjab.
GRM ratings:
-- Long-Term Issuer Rating: affirmed at 'IND B'; Outlook Stable
INR 250 million Fund-based working capital limit (Increased
from INR 110 million): affirmed at Long-term 'IND B'/Stable
and Short-term 'IND A4'
-- INR21.6 million outstanding term loan (reduced from INR30.1):
affirmed at Long-Term 'IND B'/Stable
GARGO MOTORS: CRISIL Reaffirms 'B+' Rating on INR80MM Loan
----------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Gargo Motors
(Gargo) continues to reflect Gargo's average financial risk
profile, constrained by small networth and moderate debt
protection metrics.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL B+/Stable (Reaffirmed)
Channel Financing 80 CRISIL B+/Stable (Reaffirmed)
The rating also reflects moderate revenue visibility supported by
long-term hire-purchase contracts with reputed clients for cranes
and excavators. These weaknesses are mitigated by strong market
position and benefits derived from the established relationship
with principal, Tata Motors Ltd (TML).
Outlook: Stable
CRISIL believes Gargo will benefit over the medium term from its
healthy market position in Eastern India. The outlook may be
revised to 'Positive' if significant cash accrual or large equity
infusion by promoters improves capital structure. Conversely, the
outlook may be revised to 'Negative' if pressure on topline and
profitability or a large, debt-funded capital expenditure weakens
financial risk profile.
Gargo, established as a proprietorship firm in 1996 by Mr.
Kamakhya Borthakur, is an authorised dealer of TML's commercial
vehicles in Assam. The firm has six showrooms and two stockyards
along with three workshops in Assam. Mr. Kamakhya Borthakur has
also promoted Gargo Motors Ltd (rated 'CRISIL B+/Stable'), which
is an authorised dealer of TML's passenger vehicles.
GLOBAL KNITFAB: CRISIL Assigns 'B' Rating to INR66.9MM Term Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Global Knitfab (GKF).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 30 CRISIL B/Stable
Term Loan 66.9 CRISIL B/Stable
The rating reflects GKF's above-average financial risk profile
because of moderate debt protection metrics, and promoters'
extensive experience in the textile industry. These strengths are
partially offset by the firm's modest scale of operations in
intensely competitive industry and large working capital
requirement.
Outlook: Stable
CRISIL believes GKF will benefit over the medium term from
promoters' extensive experience and moderate financial risk
profile. The outlook may be revised to 'Positive' in case of
better-than-expected scale of operations and profitability, along
with efficient working capital management. Conversely, the outlook
may be revised to 'Negative' in case of considerable decline in
revenue and profitability, or deterioration in working capital
management, or large debt-funded capital expenditure, thereby
weakening financial risk profile, particularly liquidity.
Set up in 2014 in Surat, Gujarat, as a partnership by Mr. Prabin
Khakholia, Mr. Ankit Agarwal, and their family members, GKF is in
knitting of fabrics. Currently operating with 6 knitting machines
at its premise.
GOPAL CHAKRABORTY: Ind-Ra Assigns B+ Rating to INR142.16MM Loan
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Gopal Chakraborty
Charitable Trust's (GCCT) INR142.16 mil. bank loans an 'IND B+'
rating. The Outlook is Stable.
GCCT was established in 2008 in Kolkata and manages only a school
Indus Valley World School (IVWS). Ind-Ra has taken a consolidated
view of GCCT and its unit IVWS, considering the strong financial
and business linkages between them.
KEY RATING DRIVERS
The rating is constrained by GCCT's high debt burden and fall in
operating margins in FY15. Debt to current balance before
interest and depreciation (CBBID) increased to 7.43x in FY15 from
3.47x in FY14 mainly due to a 38.83% yoy fall in CBBID to
INR30.27 mil. Ind-Ra does not expect a fall in debt burden in
FY16 due to the trust's ongoing capex plan.
The trust envisages capex of INR380 mil. over FY15-FY17 which is
likely to be funded through a mix of debt (63%) and internal
accruals (37%). The required capex is meant for the construction
of additional academic blocks in the existing campus. According
to GCCT, the construction of academic blocks is over and it is
likely to start the admission from the next academic year 2016-
2017. The trust will be able to accommodate 4,000 students
(current students' intake capacity: 2,000 students) due to this
capex.
GCCT's operating margins deteriorated 19.81 percentage points yoy
to 16.58% in FY15. This was on the back of a 73.65% yoy increase
in other operating expenditures as against a 27.16% yoy increase
in tuition fee receipts. The trust's balance sheet resources were
limited to cover the debt (FY15: INR224.83 mil.) and operating
expenditures (INR130.63 mil.). Available funds (cash and
unrestricted funds) cover to debt was 5.42% and its cover to
operating expenditure was 9.34% in FY15. GCCT's tight liquidity
profile further constrains the rating.
GCCT's debt service coverage ratio declined to 1.26x in FY15 from
1.89x in FY14 on the back of fall in CBBID. However, the coverage
ratio was comfortable and supports the rating of GCCT. The
trust's interest coverage ratio also declined to 1.83x in FY15
from 2.65x in FY14.
Tuition fee is the primary source of income with an average
contribution of 96.45% over FY11-FY15. Other operating
expenditure was the major cost (averagely contributed 57.20% over
FY11-FY15) followed by interest payable (18.48%). Staff cost
proportioned 11.56% during the same period. The trust has
reported a net operating deficit during FY11-FY5, except FY14. A
61.17% yoy increase in the total income as against a 37.84% yoy
increase in the total cost resulted in a net operating surplus in
FY14.
RATING SENSITIVITIES
Positive: A further improvement in the operational effectiveness
of the trust-run institute resulting in an improvement in the
operating margins, liquidity profile and debt metrics could
positively affect the rating.
Negative: A significant fall in students' enrolments leading to
further deterioration in the operating margins and liquidity
profile may trigger a negative rating action.
GCCT is registered under the Indian Trust act, 1882. The school
offers K-12 education and affiliated to the Central Board of
Secondary Education. The school is spread over 80,000sq.ft. and
another 80,000 sq.ft. has been constructed according to the
ongoing capex plan. According to management, 1,605 students were
studying in the school as of March 2015 which increased to 1,850
students for the academic year 2015-2016.
GRAMEEN VIKAS: CRISIL Assigns 'B+' Rating to INR20MM LT Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the proposed
long-term bank facility of Grameen Vikas Sanstha (GVS).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 20 CRISIL B+/Stable
The rating reflects the society's below-average financial risk
profile because of weak cash flow and a small networth. The rating
also factors in a small scale of operations and low profitability
due to the not-for-profit nature of operations. These rating
weakness are partially offset by a track record of having
successfully implemented social welfare schemes.
Outlook: Stable
CRISIL believes GVS will continue to benefit over the medium term
from its successful track record in implementing social welfare
schemes. The outlook may be revised to 'Positive' if significant
improvement in scale of operations and profitability considerably
strengthens the financial risk profile. Conversely, the outlook
may be revised to 'Negative' in case of a decline in sales or
profitability, or any large, debt-funded capital expenditure,
resulting in weakening of the financial risk profile.
GVS is a Meerut, Uttar Pradesh-based not-for-profit society set up
in 1989, and managed by the secretary, Mr. Prem Pal Singh Tomer.
The society operates several educational, vocational, and training
institutes under state and central government schemes for the
under privileged.
HARIHARA METALLOYS: Ind-Ra Assigns BB+ Long-Term Issuer Rating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Harihara
Metalloys Private Limited (HHMPL) a Long-Term Issuer Rating of
'IND BB+'. The Outlook is Stable.
KEY RATING DRIVERS
The ratings reflect HHMPL's moderate credit profile. Revenue was
INR2,468 mil. during FY15 (FY14: INR2,382 mil.). Credit metrics
remained moderate in spite of lack of term debt in the books on
weak profitability; EBITDA interest coverage was 1.7x in FY15
(FY14: 1.8x) and net leverage (total Ind-Ra adjusted net
debt/operating EBITDAR) was 6.5x (3.1x). Liquidity is weak with
utilization of fund based facilities at an average of 96.2% over
the 12 months ended November 2015. EBITDA margins have been weak
at around 1% over the last three years, characteristic of a
trading business.
The ratings derive support from more than four decades of
experience of the promoters in trading steel.
RATING SENSITIVITIES
Positive: Substantial revenue growth with an improvement in the
profitability resulting in a sustained improvement in the credit
profile could be positive for the ratings.
Negative: Any decline in the revenue or profitability leading to
sustained deterioration in the credit profile could be negative
for the ratings.
COMPANY PROFILE
Incorporated in 2012, HHMPL trades various kinds of steel such as
TMT bars, billets, scrap, sponge iron and ingots.
HHMPL's ratings
-- Long-Term Issuer Rating: assigned 'IND BB+';
Outlook: Stable
-- INR160 mil. fund-based working capital facilities: assigned
'IND BB+'/Stable
-- INR40 mil. non-fund-based working capital facilities:
assigned 'IND A4+'
HEM COTEX: CRISIL Reaffirms B+ Rating on INR140MM Cash Loan
-----------------------------------------------------------
CRISIL's rating on the bank facility of Hem Cotex (HC) continues
to reflect HC's modest scale of operations in the intensely
competitive cotton industry, and weak financial risk profile
because of average debt protection metrics and high gearing. These
weaknesses are partially offset by the promoters' extensive
industry experience and the unit's proximity to Gujarat's cotton-
growing belt.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 140 CRISIL B+/Stable (Reaffirmed)
CRISIL had upgraded its rating on the bank facility of Hem Cotex
(HC) to 'CRISIL B+/Stable' from 'CRISIL B/Stable' as on date
September 16, 2015.
Outlook: Stable
CRISIL believes HC will benefit over the medium term from its
promoters' extensive industry experience. The outlook may be
revised to 'Positive' if increase in sales and improved
profitability result in a substantially stronger financial risk
profile. Conversely, the outlook may be revised to 'Negative' if
liquidity weakens further, most likely because of losses in
operations or sharp increase in working capital requirements over
the medium term.
Established in June 2013, HC gins and presses cotton bales with
capacity of 45,000 bales per annum at its facility in Rajkot
(Gujarat). Operations are managed by Mr. Dinesh Parsottam Davda.
The plant commenced operations in May 2014.
For 2014-15 (refers to financial year, April 1 to March 31), HC
has reported on a provisional basis a net profit at INR2.3 million
on sales of INR373.3 million.
HINDUSTAN ORGANIC: CARE Ups Rating on INR100cr Loan From 'D'
------------------------------------------------------------
CARE revises the rating assigned to the redeemable bond/ncd issue
of Hindustan Organic Chemicals Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Redeemable Non-Convertible 100 CARE AAA(SO) Revised
Unsecured Taxable Bonds/ from CARE D
NCD
Rating Rationale
The revision in the rating assigned to the NCD issue of Hindustan
Organic Chemicals Limited (HOCL) considers the funding of the
designated account by HOCL through support from Government of
India (GoI) and subsequent payment of interest to the bondholders.
The rating was earlier revised to 'CARE D' from 'CARE AAA (SO)'
due to delays in yearly interest payment by 13 days. The trustees
(SBICAP Trustee Company Ltd) vide their letter dated January 21,
2016, has withdrawn the GOI guarantee invoked by them for non-
funding the designated account by HOCL as per the structure.
The rating is solely based on unconditional and irrevocable
guarantee from the GOI executed through the Department of
Chemicals & Petrochemicals, Ministry of Chemicals and Fertilizers.
The GOI guarantee will continue to be valid even in the event of
referral of Hindustan Organic Chemicals Limited (HOCL) to the
Board for Industrial & Financial Reconstruction (BIFR) under SICA,
1985.
Incorporated on December 12, 1960, HOCL, a GOI enterprise (of
which GOI holds 58.78% equity as on March 31, 2015) and under the
administrative control of Department of Chemicals & Petrochemicals
(DCPC) - Ministry of Chemicals and Fertilizers, manufactures
organic chemicals (aniline, phenol, acetone, formaldehyde, etc).
HOCL has two manufacturing facilities situated at Rasayani,
Maharashtra, and Kochi, Kerala, with a combined installed capacity
of 349,495 TPA. Also, HOCL is the sole indigenous manufacturer of
the liquid rocket propellant N2O4 in India, which is supplied to
ISRO.
During FY15 (refers to the period April 1 to March 31), HOCL
registered a net loss of INR215.49 crore on a total operating
income of INR152.48 crore as compared with a net loss of INR176.85
crore on a total operating income of INR218.09 crore during FY14.
Department of Chemicals & Petrochemicals (DCPC), Ministry of
Chemicals & Fertilizers (MoCF), Government of India The DCPC comes
under the purview of the MoCF of the GoI. The department is
entrusted with the responsibilities of planning, development and
regulations of the chemicals and petrochemicals industry sectors.
DCPC has 3 PSUs under its administrative control, two in the
chemical sector, viz, Hindustan Organic Chemicals Ltd and
Hindustan Insecticides Ltd (HIL) and one in the Petrochemicals
sector, namely, Brahmaputra Cracker and Polymer Limited (BCPL).
The department also accords financial grants to two autonomous
institutes, namely, Central Institute of Plastic Engineering and
Technology (CIPET) and Institute of Pesticides Formulation and
Technology (IPFT).
J.K IMPEX: Ind-Ra Withdraws IND B-(suspended) LT Issuer Rating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn J.K Impex's 'IND
B-(suspended)' Long-Term Issuer Rating. The agency has also
withdrawn the IND B- (suspended) and 'IND A4 (suspended)' ratings
on the company's INR60 million working capital limits.
The ratings have been withdrawn due to lack of adequate
information. Ind-Ra will no longer provide ratings or analytical
coverage for J.K Impex.
Ind-Ra suspended J.K Impex's rating on 10 June 2015.
JAYAHO AGRI: CRISIL Reaffirms 'D' Rating on INR120MM Cash Loan
--------------------------------------------------------------
CRISIL's rating on the long-term bank facility of Jayaho Agri
Ventures Private Limited (JAVPL) continues to reflect the
company's overdrawn cash credit facility for more than 30 days
owing to weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 120 CRISIL D (Reaffirmed)
JAVPL also has a weak financial risk profile because of small
networth, high gearing, and below-average debt protection metrics,
and large working capital requirement. Furthermore, profitability
margins are susceptible to volatility in tobacco prices, intense
competition, and regulatory risks. However, JAVPL benefits from
promoters' extensive experience and established relationship with
customers.
Set up in 2009 by Mr. Nagothu Sleeva Raju and his family members,
JAVPL trades in tobacco. The company is based in Guntur district,
Andhra Pradesh.
JSW STEEL: Moody's Cuts Corporate Family Rating to Ba3
------------------------------------------------------
Moody's Investors Service has downgraded JSW Steel Limited's (JSW)
corporate family rating (CFR) and senior unsecured notes ratings
to Ba3 from Ba1.
The outlook on all ratings remains negative.
RATINGS RATIONALE
"The two-notch downgrade reflects JSW's weaker than expected
operating performance as a result of persistently weak steel
prices, and our expectation that this low steel price environment
will continue over the next 12 to 18 months", says Kaustubh
Chaubal, a Moody's Vice President and Senior Analyst.
JSW's results for the nine months of the fiscal year ending March
2016 (April-December 2015) were extremely weak, with reported
consolidated net sales of INR307.5 billion, down 23% from a year
ago, and consolidated operating EBITDA of INR42.5 billion, down
45%.
Moody's remains concerned about the persistence of downward
pressure on steel prices with the continuation of imports into
India from China, Korea and Japan. Such imports -- on a volume
basis -- were up 30% for April-December 2015 from the same period
last year, despite the implementation of protectionist measures
against imports.
As a result, Indian hot rolled coil (HRC) prices fell 24% during
the third quarter of the fiscal year ending March 2016 (Q3
FY2016), prompting JSW's blended realizations to fall 24% to
INR28,263/tonne from INR37,327/tonne a year ago. EBITDA/tonne fell
more sharply by 51% in the said quarter to INR3,443 from INR6,987
a year ago.
While JSW has undertaken several measures to reduce costs,
conserve cash flow, and minimize the rise in debt, the severe drop
in steel prices has strained earnings and increased leverage.
"In particular, today's downgrade reflects the higher-than-
expected deterioration in JSW's interest cover metrics and
increasing leverage, as evidenced by EBIT/interest coverage of
less than 1x and debt/EBITDA of 6.8x for the 12 months ended
December 2015," adds Chaubal, who is also Moody's Lead Analyst for
JSW.
Looking ahead, we expect an increase in the company's shipments
with commencement of the incremental 4 mtpa brownfield expansions
and the continued growth of retail sales through the expansion of
its "Shoppe" outlets -- both benefiting from relatively strong
domestic demand. As a result, we estimate leverage to improve in
FY2017, although it will still be weakly positioned for the
rating.
Moody's does not expect EBITDA per tonne to return to levels seen
in prior years.
Rather, Moody's notes that the roll-over of safeguard duties
beyond March 2016 and the maintenance of at least current prices
are necessary if domestic steel companies are to record any
improvement in their EBITDA per tonne.
JSW's ratings continue to reflect the company's large scale and
competitive conversion costs, supported by its wide range of
furnace technology and the coastal locations of its operations.
The ratings draw support from management's successful track record
of managing growth and the effects of cyclical downturns.
JSW's balance sheet liquidity position remains weak with cash and
cash equivalents of INR11.61 billion at December 2015 against a
higher amount of short term debt and maturities over the next 12
months. While the company has access to undrawn short-term lines
of some INR60 billion, these facilities are renewable and
reevaluated each year, based on the company's estimated working
capital requirements.
Furthermore, JSW's weak operating performance required it to
obtain waivers on bank credit facilities in respect of its
leverage covenants for the September 2015 testing date. The
company has been proactive in managing this risk and has also
received relaxations for future periods from some of its major
lenders, and is in the process of obtaining similar relaxations on
the balance for the next covenant testing date in March 2016.
The negative outlook reflects the potential for industry
conditions to weaken further and the company proving unable to
improve its operating and financial performance over the next 12
to 18 months.
In particular, the negative outlook incorporates our assessment
that while the company may well take measures to conserve cash,
the increase in EBITDA following commencement of the brownfield
expansions may not, in isolation, be sufficient to materially
reduce leverage from current levels.
Further downward pressure on the ratings is possible if: (1) JSW's
profitability weakens from current levels, with EBIT margins
falling below 5% - 7% on a sustained basis; (2) its generation of
operating cash flow deteriorates because of weak sales and
unfavorable market dynamics, thereby dampening liquidity; and as a
result, (3) its financial metrics further deteriorate from current
levels; or (4) the company fails to receive approvals under its
relevant facilities for a relaxation on its financial covenants.
The ratings could also come under pressure if JSW adopts an overly
acquisitive or capex policy.
Specific financial metrics that Moody's would consider for a
downgrade include adjusted debt/EBITDA remaining above 5x, or
EBIT/interest coverage remaining below 2x, through the cycle.
Following its maiden bond issuance of $500 million in 2014, the
secured debt/total assets ratio on JSW's standalone balance sheet
improved to 19% at 31 March 2015, down from 27% in March 2014.
However, we note that the bond rating could be notched down if the
proportion of secured debt to total assets trends up from current
levels.
Given today's multi-notch ratings downgrade and the negative
outlook, and the company's weak credit metrics, a ratings upgrade
is not expected over the medium term.
That said, the outlook could revert to stable if: (1) domestic
steel prices recover, and/or on the back of an increase in steel
volumes, the company shows a substantial improvement in
profitability with EBITDA/tonne in the INR6,000 area; or if (2)
the company is successful in preserving cash flow during the
current downturn by reducing capex, with free cash flows returning
to positive territory.
Adjusted leverage returning to below 4.0x would also be a key
indicator for a change in the outlook.
JSW Steel Ltd. is a leading manufacturer of a wide range of steel
products. It has an installed steel-making capacity of 14.3
million tonnes per annum (mtpa), and is one of India's largest
steel producers. In FY2015, the company's revenue increased by 3%
year-on-year to INR529.7 billion from INR512.2 billion a year ago.
Crude steel volumes increased 4% year-on-year to 12.6 mtpa,
equivalent to capacity utilization of 88%.
The company's brownfield capacity expansions totaling 4 mtpa are
expected to be commissioned later during February 2016.
KALOSONA HIMGHAR: CRISIL Assigns 'B' Rating to INR55MM Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Kalosona Himghar Udyog Private Limited (KHUPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Working Capital
Term Loan 6 CRISIL B/Stable
Cash Credit 55 CRISIL B/Stable
Proposed Long Term
Bank Loan Facility 4 CRISIL B/Stable
The rating reflects the company's weak financial risk profile
marked by low profitability and subdued debt protection metrics,
susceptibility to regulatory changes, and exposure to competition
in the fragmented cold storage industry in West Bengal. These
weaknesses are partially offset by its promoters' considerable
amount of experience in the cold storage business.
Outlook: Stable
CRISIL believes KHUPL will continue to benefit over the medium
term from its promoters' considerable industry experience. The
outlook may be revised to 'Positive' in case of efficient
management of farmer financing and significant ramp-up in the
company's scale of operations and profitability. Conversely, the
outlook may be revised to 'Negative' if KHUPL's liquidity is
constrained by delays in repayment of loan by farmers, lower-than-
expected cash accruals, or any debt-funded capital expenditure.
KHUPL, formed in 2006 by Mr. Priyo Mohan Dey and Mr. Mukti Padho
Kundu, provides cold storage facility for potatoes and trades in
potatoes. The promoters are also engaged in rice milling through
group companies, and have experience of more than three decades in
this business. KHUPL's cold storage is in Arambagh, West Bengal,
and has capacity of 170,000 quintals.
KESAR PHARMA: CRISIL Suspends 'B' Rating on INR46MM Term Loan
-------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Kesar
Pharma Private Ltd (KPPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 12.5 CRISIL B/Stable
Proposed Long Term
Bank Loan Facility 41.5 CRISIL B/Stable
Term Loan 46 CRISIL B/Stable
The suspension of rating is on account of non-cooperation by KPPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, KPPL is yet to
provide adequate information to enable CRISIL to assess KPPL'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'.
KPPL was incorporated in 2011. It is promoted by Mr. Jigar J Shah,
Mr. Ambalal C Patel, Mr. Dhruma J Shah, and Mr. Prakash A Patel,
who have more than two decades of industry experience. The company
is primarily into contract manufacturing of pharmaceutical
formulations for mid-size Indian companies.
KUMARPUR AGRO: CRISIL Reaffirms 'B+' Rating on INR33.2MM Loan
-------------------------------------------------------------
CRISIL's ratings on the bank facilities of Kumarpur Agro Poultries
Limited (KAPL; part of the Maity group) continue to reflect
susceptibility of the Maity group's operating margin to volatility
in prices of maize and soybean.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 26.4 CRISIL B+/Stable (Reaffirmed)
Proposed Short Term
Bank Loan Facility 40.4 CRISIL A4 (Reaffirmed)
Term Loan 33.2 CRISIL B+/Stable (Reaffirmed)
The ratings also factor in the group's large working capital
requirement, and average financial risk profile because of small
networth, high gearing, and weak debt protection metrics. These
weaknesses are partially offset by the group's established
position as a regional player in the poultry segment backed by
promoter's experience.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of KAPL, Maity Poultries Pvt Ltd, and
Sankrail Agro Poultries Pvt Ltd. This is because all these
companies, collectively referred to as the Maity group, are under
a common management and in the same line of business, and have a
large common clientele and supplier base. Furthermore, there is
need-based fungible cash flow among the companies.
Outlook: Stable
CRISIL believes the Maity group will continue to benefit over the
medium term from its promoter's extensive industry experience. The
outlook may be revised to 'Positive' in case of substantial growth
in revenue and profitability, and efficient working capital
management, resulting in large net cash accrual, thereby improving
financial risk profile. Conversely, the outlook may be revised to
'Negative' if revenue and profitability decline steeply, or
working capital cycle lengthens, leading to pressure on financial
risk profile, particularly liquidity.
The Maity group is promoted by Mr. Madan Maity, who has experience
of over three decades in the poultry business. The group produces
designer eggs, which contain proteins and vitamins, and are
produced biologically, and sells under the Maity Eggs brand. Its
facilities are in Paschim Midnapore (West Bengal).
M/S ESS PEE: Ind-Ra Assigns BB+ Long-Term Issuer Rating
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned M/s Ess Pee Knit
Wear a Long-Term Issuer Rating of 'IND BB+'. The Outlook is
Stable.
KEY RATING DRIVERS
The ratings reflect EPKW's moderate credit profile as well as
scale of operations. Net leverage (total Ind-Ra adjusted debt net
of cash/EBITDA) was 1.75x (FY14: 1.97x) and EBITDA interest cover
was 4.47x (3.63x). Revenue was INR1,101 mil. in FY15 (FY14:
INR899 mil.) while EBITDA margins have been in the range of 5.4%-
8.1% over FY12-FY15. The ratings also factor in the partnership
form of organization and tight liquidity. Fund-based working
capital facilities were fully utilized during the 12 months ended
December 2015.
The ratings are supported by the promoters' two decades of
experience in the textile manufacturing business.
RATING SENSITIVITIES
Positive: An increase in the profitability leading to a sustained
improvement in the credit metrics will be positive for the
ratings.
Negative: Any deterioration in EBITDA margins leading to further
stress on the liquidity position or sustained deterioration in the
credit metrics could be negative for the ratings.
COMPANY PROFILE
EPKW was setup as a partnership firm by Mr. N Palanisamy and his
family in Tirupur (Tamil Nadu) in 1991. The firm manufactures
readymade garments and exports them predominantly to Europe.
EPKW's ratings:
-- Long-Term Issuer Rating: assigned 'IND BB+'; Outlook Stable
-- INR105 mil. fund-based facilities: assigned
'IND BB+'/Stable; 'IND A4+'
-- INR3.5 mil. non-fund-based facilities: assigned 'IND A4+'
MAHARAJA PAPER: CARE Reaffirms 'B' Rating on INR12cr LT Loan
------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Maharaja Paper Industries Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 12 CARE B Reaffirmed
Short-term Bank Facilities 3 CARE A4 Reaffirmed
Rating Rationale
The ratings of Maharaja Paper Industries Private Limited (MPIPL)
continue to remain constrained by the relatively moderate size of
operation, volatility in raw material prices, weak financial risk
profile with leveraged capital structure, working capital
intensive nature of operation and cyclical nature of paper and
pulp industry. The ratings also factor in increase in the revenue
and decline in profit margin during FY15 (refers to the period
April 01 to March 31). The ratings are, however, underpinned by
the experienced promoter and management team, long-standing track
record of operation in the paper industry, geographical presence
in the market with strong marketing and distribution network. The
ability of the company to increase its scale of operations with
subsequent improvement in profitability margins, improve its
capital structure and effectively manage its working capital
requirements are the key rating sensitivities.
Incorporated in January 1999, MPIPL has been promoted by Mr P.V.
Ramkrishna Raju, Mr I. Ramalinga Raju and Late Mr P.V. Narasimha
Raju. The company was incorporated as Rolex Paper Mills Limited
and later on the name was changed to current nomenclature. MPIPL
is engaged in the production of paper of all varieties, viz,
newsprint, cream wove and kraft paper. The manufacturing
facilities are located at Chintaparru, Palakol Mandal, Andhra
Pradesh, and have an installed capacity of 28,000 MT per annum.
For FY15, MPIPL registered PBILDT of INR3.05 crore (FY14 - INR4.24
crore) and net loss of INR0.44 crore in FY15 (PAT of FY14 -
INR0.17 crore) on the total operating income of INR48.01 crore
(FY14 - INR47.64 crore).
MAITY POULTRIES: CRISIL Reaffirms B+ Rating on INR81.7MM Loan
-------------------------------------------------------------
CRISIL's ratings on the bank facilities of Maity Poultries Private
Limited (MPPL; part of the Maity group) continue to reflect
susceptibility of the Maity group's operating margin to volatility
in prices of maize and soybean.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 1.6 CRISIL A4 (Reaffirmed)
Cash Credit 36.7 CRISIL B+/Stable (Reaffirmed)
Term Loan 81.7 CRISIL B+/Stable (Reaffirmed)
The ratings also factor in the group's large working capital
requirement, and average financial risk profile because of small
networth, high gearing, and weak debt protection metrics. These
weaknesses are partially offset by the group's established
position as a regional player in the poultry segment backed by
promoter's experience.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of MPPL, Kumarpur Agro Poultries Ltd, and
Sankrail Agro Poultries Pvt Ltd. This is because all these
companies, collectively referred to as the Maity group, are under
a common management and in the same line of business, and have a
large common clientele and supplier base. Furthermore, there is
need-based fungible cash flow among the companies.
Outlook: Stable
CRISIL believes the Maity group will continue to benefit over the
medium term from its promoter's extensive industry experience. The
outlook may be revised to 'Positive' in case of substantial growth
in revenue and profitability, and efficient working capital
management, resulting in large net cash accrual, thereby improving
financial risk profile. Conversely, the outlook may be revised to
'Negative' if revenue and profitability decline steeply, or
working capital cycle lengthens, leading to pressure on financial
risk profile, particularly liquidity.
The Maity group is promoted by Mr. Madan Maity, who has experience
of over three decades in the poultry business. The group produces
designer eggs, which contain proteins and vitamins, and are
produced biologically, and sells under the Maity Eggs brand. Its
facilities are in Paschim Midnapore (West Bengal).
MAYAR INDIA: CRISIL Assigns 'B+' Rating to INR50MM Term Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facility of Mayar India Limited (MIL; part of the Mayar
group).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Term Loan 50 CRISIL B+/Stable
The rating reflects the Mayar group's weak financial risk profile
because of high gearing and average debt protection metrics, large
working capital requirement, and low operating margin due to
trading nature of operations. These weaknesses are partially
offset by the group's established position backed by diversified
business interest.
For arriving at its rating, CRISIL has combined the business and
financial risk profiles of MIL with its subsidiaries: Adoniss Ltd,
Mayar Infrastructure Development Pvt Ltd (MIDPL), Mayar Health
Resorts Ltd (MHRL), and Trinity Buildcon India Pvt Ltd (Trinity).
This is because all the entities, together referred to as the
Mayar group, are promoted by the common management and have full
operational and financial fungibility among them.
Outlook: Stable
CRISIL believes the Mayar group will continue to benefit over the
medium term from its established business risk profile. The
outlook may be revised to 'Positive' if profitability and
liquidity improves significantly, leading to substantial cash
accrual and better debt protection metrics. Conversely, the
outlook may be revised to 'Negative' if working capital
requirement is substantially large, thereby weakening liquidity.
MIL is the holding company of the Mayar group, which was formed in
1948 by the late Mr. Amar Nath Sud by establishing a trading firm
in Delhi. His son, Mr. Ajit Kumar Sud, joined the business later
and expanded operations to publication, timber, commodities,
hospitality, infrastructure development, and personal care
products across India, Myanmar, Malaysia, Hong Kong, Ecuador, and
Ukraine. Currently the business is looked into by Mr. Sud, his two
sons and professional management.
MIDPL is setting up a Biotech SEZ at Sohna, Haryana, to support
research and development and manufacturing activities for biotech
companies.
MHRL operates spas under the brands, Amatrra and Three Graces, in
Delhi.
Though there are no current operations, management plans to
develop a real estate project under Trinity.
Adoniss Ltd (formerly, Mayar (HK) Ltd) is the flagship entity of
the group. Based in Hong Kong, it trades in newsprint, timber, and
building material.
MIL reported net loss of INR44.0 million on net sales of INR279.5
million for 2014-15 (refers to financial year, April 1 to
March 31) as against net profit of INR78.9 million on net sales of
INR383.5 million for 2013-14.
MAYAR INFRASTRUCTURE: CRISIL Rates INR1.25BB Term Loan at 'B'
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Mayar Infrastructure Development Private
Limited.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 1252.2 CRISIL B/Stable
Funded Interest
Term Loan 120.3 CRISIL B/Stable
Proposed Short Term
Bank Loan Facility 27.5 CRISIL A4
The ratings reflect MIDPL's exposure to sales risk associated with
current project and constrained financial flexibility owing to
start-up nature of project with low occupancy levels. These
weaknesses are partially offset by strong promoter entity and
experienced management.
Outlook: Stable
CRISIL believes MIDPL will continue to benefit over the medium
term from experienced management and near-completion of phase I of
ongoing project. The outlook may be revised to 'Positive' if the
company registers higher-than-expected lease rentals or reports
better-than-expected occupancy levels, leading to substantial
revenue and profitability. Conversely, the outlook may be revised
to 'Negative' in case of delay in off-take of project or
deterioration in revenue or profitability, thereby affecting
financial risk profile.
Incorporated in 1995, MIDPL, part of the Mayar group, is setting
up a Biotech SEZ at Sohna, Haryana, to support research and
development and manufacturing activities for biotech companies.
Around 38 acre land has been developed and is divided into
processing (phase I-bioport project) and non-processing zones
(phase II - wellness project).
MOONAK ISPAT: Ind-Ra Withdraws IND B(suspended) LT Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Moonak Ispat
Udyog's 'IND B(suspended)' Long-Term Issuer Rating. The agency has
also withdrawn the 'IND B(suspended)' and 'IND A4(suspended)'
ratings on the company's INR40 million fund-based limits.
The ratings have been withdrawn due to lack of adequate
information. Ind-Ra will no longer provide ratings or analytical
coverage for Moonak Ispat Udyog.
Ind-Ra suspended Moonak Ispat Udyog's rating on 10 June 2015.
NAKKHEERAN PUBLICATIONS: CRISIL Reaffirms B INR100MM Loan Rating
----------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Nakkheeran
Publications (NP) continues to reflect NP's below-average
financial risk profile because of modest net worth and weak debt
protection metrics, and working capital intensive operations.
These weaknesses are mitigated by the proprietor's extensive
experience, and an established reader base.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 100 CRISIL B/Stable (Reaffirmed)
Long Term Loan 50 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes NP will benefit over the medium term from the
proprietor's extensive experience. The outlook may be revised to
'Positive' if a significant increase in revenue and operating
margin improves the financial risk profile. Conversely, the
outlook may be revised to 'Negative' if inefficient working
capital management or decline in cash accrual weakens the
financial risk profile.
Set up in 1988 as a proprietorship firm by Mr. Nakkheeran Gopal,
Chennai-based NP publishes and distributes Tamil magazines and
books. It currently publishes six Tamil magazines.
NOSLAR INTERNATIONAL: Ind-Ra Raises Long-Term Issuer Rating to BB
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Noslar
International Ltd.'s (NIL) Long-Term Issuer Rating to 'IND BB'
from 'IND BB-'. The Outlook is Stable.
KEY RATING DRIVERS
The upgrade reflects NIL's improved profitability in FY15 over
FY13 due to the increased manufacturing of high-margin motorcycle
tyres and tubes and reduced trading activities, resulting in an
improvement in net leverage. According to the audited financials
for FY15, EBITDA margins increased to 5.5% (FY13: 4.5%) and net
leverage (net debt/EBITDA) to 4.0x (4.4x). Interest coverage
remained relatively flat at 1.5x. NIL's scale of operations
remained small with revenue of INR872 mil. in FY15 (FY13:
INR847 mil.). Liquidity was moderate with the average working
capital use being 98% in the six months ended December 2015.
The ratings continue to benefit from the over four decades of
experience of NIL's promoters in the tube and tyre industry and
the company's 42-year-long operational history.
RATING SENSITIVITIES
Positive: An improvement in the credit profile along with a
sustained improvement in the liquidity could lead to a positive
rating action.
Negative: A decline in the operating profitability resulting in
deterioration in the credit profile along with deterioration in
the liquidity could lead to a negative rating action.
COMPANY PROFILE
Incorporated in 1974, NIL is a premium bicycle tyres and tubes
brand in India and abroad. The company trades, manufactures and
exports bicycle tyres & tubes, auto tyres & tubes for motorcycle
and other two and three wheelers. NIL is situated in Mandideep,
Bhopal and has an installed capacity of producing 6 million tyres
and 3.6 million tubes per annum.
The total debt outstanding on March 31, 2015, was INR198.4 mil.,
comprising long-term loans of INR35.9 mil., working capital debt
of INR150.6 mil. and unsecured debt of INR11.94 mil.
NIL's ratings:
-- Long-Term Issuer Rating: upgraded to 'IND BB' from
'IND BB-'; Outlook Stable
-- INR139 mil. fund-based limits: upgraded to Long-term
'IND BB'/Stable from 'IND BB-' and affirmed at Short-term
'IND A4+'
-- INR30 mil. non-fund-based limits: affirmed at Short-term
'IND A4+'
P.N.TEX: Ind-Ra Assigns BB- Long-Term Issuer Rating
---------------------------------------------------
India Ratings has assigned P.N.Tex India Private Limited (PNTPL) a
Long-Term Issuer Rating of 'IND BB-'. The Outlook is Stable.
KEY RATING DRIVERS
The rating reflects PNTPL's moderate credit profile and highly
volatile profitability. In FY15, net leverage was 3.3x (FY14:
10.7x) and EBITDA interest cover was 1.9x (2.6x). EBITDA margins
oscillated between negative 24.4% and 20.5% over FY13-FY15 and
were 11.5% in FY15. PNT was a loss-making company till FY13 and
turned profitable in FY14 after being taken over by Arunachala
Gounder Group in February 2013, which manufactures cotton and
polyester yarn and reported revenue of INR318 mil. in FY15. The
company is likely to report double-digit revenue growth in FY16
with 9MFY16 revenue at around INR323 mil.
Liquidity remained tight with the fund-based facilities being
utilized at an average of 96% during the 12 months ended November
2015. PNT is modernizing its plant at a total outlay of
INR75 mil., 57% of which will be debt-funded; this will stretch
the credit metrics marginally in FY16.
The ratings are supported by the promoters' more than two-decade-
long experience in the viscose yarn manufacturing business.
RATING SENSITIVITIES
Positive: Substantial growth in the top line while maintaining
profitability leading to a sustained improvement in the credit
metrics will be positive for the ratings.
Negative: A substantial decline in the profitability resulting in
sustained deterioration in the credit profile of the company will
lead to a negative rating action.
COMPANY PROFILE
PNTPL was incorporated in 1994 and manufactures viscose yarn in
the count range of 30s.
PNTPL's ratings:
-- Long-Term Issuer Rating: assigned 'IND BB-'; Outlook Stable
-- INR181.81 mil. long-term loans: assigned 'IND BB-'/Stable
-- INR50 mil. fund-based facilities: assigned
'IND BB-'/Stable/'IND A4+'
-- INR30m non-fund-based facility: assigned 'IND A4+'
PATSON GLOBAL: CRISIL Suspends B+ Rating on INR50MM Cash Loan
-------------------------------------------------------------
CRISIL has suspended its rating on the bank facility of Patson
Global Limited (PGL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL B+/Stable
The suspension of rating is on account of non-cooperation by PGL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, PGL is yet to
provide adequate information to enable CRISIL to assess PGL'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'.
PGL, incorporated in 2005 by Patna (Bihar)-based Patwari family,
is a super distributor of thermo mechanically treated bars, pipe
and other long product in Bihar and Bengaluru. The day-to-day
operations of the company are looked after by its promoter
director Mr. Raj Kumar Patwari.
PAYAL PETROPACK: CRISIL Suspends 'B' Rating on INR80MM Cash Loan
----------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Payal
Petropack Private Limited (Petro; part of the Payal group).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 80 CRISIL B/Stable
Letter of Credit 280 CRISIL A4
The suspension of ratings is on account of non-cooperation by
Petro with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, Petro is yet to
provide adequate information to enable CRISIL to assess Petro'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'.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of Petro, Payal Polyplast Pvt Ltd (Poly),
Payal Petrochem Pvt Ltd (Petrochem), and Payal Polycompounds Pvt
Ltd (Polycompunds). This is because all these companies, together
referred to as the Payal group, have a common management and
considerable operational linkages with each other. Also, the
group's management has plans to merge all the companies over the
medium term.
Petro was originally established as a proprietorship firm (Payal
Petropack) by Mr. R P Gupta in 1994. The firm was reconstituted as
a private limited company in 2008-09. It trades in solvents (such
as eythyl hexanol and butanel), plasticisers (dioctyl phthalate),
and polyvinyl chloride (PVC). Its office is in Delhi.
Poly was established as a partnership firm (Payal Polymers) by Mr.
R P Gupta and his family members. The firm was reconstituted as a
private limited company in January 2009. It manufactures primary
plasticisers, such as di-octyl phthalate, di-butyl phthalate, and
di-iso-nonyl phthalate at its facility in Daman.
Polycompounds was established as a partnership firm (Nikhil
Plastics) in 1990 by Mr. R P Gupta and his family members, and was
reconstituted as a private limited company in 2008-09. It
manufactures PVC compounds at its facility in Delhi.
Petrochem was established by Mr. R P Gupta and his family members
in 2010-11. The company manufactures primary and secondary
plasticisers in Dahej (Gujarat). The plant commenced commercial
operations in February 2013 post the trial run in November 2012.
PRATUL ENTERPRISES: Ind-Ra Withdraws B- Long-Term Issuer Rating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Pratul
Enterprises Private Limited's (PRPL) 'IND B-(suspended)' Long-Term
Issuer Rating and the 'IND B-(suspended)' rating on its INR50 mil.
fund-based limits. The ratings have been withdrawn due to lack of
adequate information. Ind-Ra will no longer provide ratings or
analytical coverage for PRPL. Ind-Ra suspended PRPL's rating on
June 10, 2015.
RAJASTHAN TRANSMAT: CRISIL Assigns 'B' Rating to INR30MM Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank loan facilities of Rajasthan Transmat Private Limited (RTPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 6 CRISIL B/Stable
Letter of Credit 5 CRISIL A4
Bank Guarantee 25 CRISIL A4
Cash Credit 30 CRISIL B/Stable
The ratings reflect the company's small scale of operations and
its susceptibility to tender based nature of business, below-
average financial risk profile driven of high gearing, and working
capital-intensive operations. These rating weaknesses are
partially offset by the extensive experience of the company's
promoters in the transmission line industry.
Outlook: Stable
CRISIL believes RTPL 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 improvement in scale of
operations and efficient working capital management. Conversely,
the outlook may be revised to 'Negative' if the financial risk
profile, especially liquidity, deteriorates, most likely on
account of a decline in revenue and profitability, larger-than-
expected debt-funded capital expenditure, or an increase in
working capital requirement.
RTPL was incorporated in 1997, promoted by the Rajasthan-based
Damani family, Mr. Vikas Damani and his brother Mr. Anand Damani.
The company manufactures hardware used in power transmission lines
across India.
RAMAKRISHNA ELECRONICS: CARE Cuts Rating on INR30cr Loan to 'D'
---------------------------------------------------------------
CARE revises the rating assigned to bank facilities of Ramakrishna
Elecronics (Kurnool Division).
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 30.00 CARE D Revised from
CARE B+
Rating Rationale
The revision in the rating assigned to the bank facilities of
Ramakrishna Electronics (Kurnool Division) (RE) takes into
account delays in servicing of debt obligations.
RE, is a partnership firm established in April 2000 by Mr V.
Raghavenrdra, Mr V. Ravi Kumar, Mrs V. Rajeshwari, Mrs V.
Neelima, Mr V Ananthakrishna, Mr G. Ramaiah, Mr G. Seshamma and
Mrs V. Nagarekha. The firm is engaged in the distribution and
trading (retail and wholesale) of consumer electronic products and
home appliances. It operates through 9 showrooms. The firm has its
registered office and show room located at Municipal Shopping
Complex, Park Road, Kurnool with other retail show rooms located
at Anathapur, Nadhyala, Madhanapally, Thandapathi, Kadiri and
Guntakal in Andhra Pradesh. The firm distributes consumer durables
of some major brands which include Sony and LG electronics goods
in and around two district of Andhra Pradesh. The firm has closed
down its distribution center in Telangana on account of excess of
2% of state tax over and above levied by the state government.
The firm reported a PAT of INR0.06 crore on a total operating
income of INR75.35 crore during FY15 as against PAT of INR0.07
crore and a total operating income of INR76.75 crore in FY14.
S V FOODS: CARE Assigns 'B+' Rating to INR10.50cr LT Loan
---------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of S V Foods.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 10.50 CARE B+ Assigned
Rating Rationale
The rating assigned to S. V. Foods (SVF) is primarily constrained
by its small scale of operations with short track record of
operations, low profitability margins, highly leveraged capital
structure, weak coverage indicators and working capital intensive
nature of operations. The rating is, further constrained by its
presence in the fragmented and competitive nature of industry,
dependence on the vagaries of nature, high level of government
regulation and partnership nature of its constitution. The rating,
however, draws comfort from experience of partners in trading and
processing of rice and favorable manufacturing location.
Going forward, the ability of the firm to increase its scale of
operations while improving the profitability margins and capital
structure shall be the key rating sensitivities.
Karnal-based (Haryana) SVF was established as a partnership firms
in 2013 by Mr Rajiv Goel and Mr Sanyam Goel sharing profits and
loss in the ratio equally. However, the firm commenced its
operations in October 2013. FY15 (refers to the period April 01 to
March 31) was the first full year of operations.
The firm is engaged in milling, processing and trading of basmati
and non-basmati rice with an installed capacity of 4 metric ton
per hour (MTPH) as on December 31, 2015. The firm procures raw
material (paddy) from local grain markets through dealers and
commission agents and sells its product to export houses in
Haryana and Uttar Pradesh.
In FY15 (refers to the period April 1 to March 31), SVF has
achieved a total operating income (TOI) of INR18.15 crore with
PBILDT and PAT of INR1.02 crore and INR0.02 crore respectively as
against INR10 crore In 5MFY14 (refers to the period November 01 to
March 31). During 7MFY16, the firm has achieved a total operating
income of INR17.71 crore.
SANKRAIL AGRO: CRISIL Reaffirms B+ Rating on INR160MM Term Loan
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Sankrail Agro Poultries
Private Limited (SAPPL; part of Maity group continue to reflect
susceptibility of the Maity group's operating margin to volatility
in prices of maize and soybean.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 0.8 CRISIL A4 (Reaffirmed)
Cash Credit 49.6 CRISIL B+/Stable (Reaffirmed)
Proposed Short Term 17.1 CRISIL A4 (Reaffirmed)
Bank Loan Facility
Term Loan 160.0 CRISIL B+/Stable (Reaffirmed)
The ratings also factor in the group's large working capital
requirement, and average financial risk profile because of small
networth, high gearing, and weak debt protection metrics. These
weaknesses are partially offset by the group's established
position as a regional player in the poultry segment backed by
promoter's experience.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of SAPPL, Kumarpur Agro Poultries Ltd, and
Maity Poultries Pvt Ltd. This is because all these companies,
collectively referred to as the Maity group, are under a common
management and in the same line of business, and have a large
common clientele and supplier base. Furthermore, there is need-
based fungible cash flow among the companies.
Outlook: Stable
CRISIL believes the Maity group will continue to benefit over the
medium term from its promoter's extensive industry experience. The
outlook may be revised to 'Positive' in case of substantial growth
in revenue and profitability, and efficient working capital
management, resulting in large net cash accrual, thereby improving
financial risk profile. Conversely, the outlook may be revised to
'Negative' if revenue and profitability decline steeply, or
working capital cycle lengthens, leading to pressure on financial
risk profile, particularly liquidity.
The Maity group is promoted by Mr. Madan Maity, who has experience
of over three decades in the poultry business. The group produces
designer eggs, which contain proteins and vitamins, and are
produced biologically, and sells under the Maity Eggs brand. Its
facilities are in Paschim Midnapore (West Bengal).
SATHYAM GREEN: Ind-Ra Raises Rating on INR358.4MM Loan to BB-
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Sathyam Green
Power Private Limited's (SGPPL; erstwhile Sathyam Power Private
Limited) INR358.4 mil. (INR300.97 mil. outstanding on Dec. 4,
2015,) long-term senior bank loans and INR97.5 mil. fund-based
working capital limit to 'IND BB-' from 'IND D'. The Outlook is
Stable.
KEY RATING DRIVERS
The upgrade reflects SGPPL's elongated repayment tenor due to debt
restructuring, and timely servicing of principal and interest over
April-December 2015 due to a stable plant performance. [A concise
summary of the analytical rationale (key risk factors in the
analysis) supporting the recommendation (Rating and Outlook).]
The term loans were restructured to match the project cash flow
and will now expire in FY25, resulting in improved coverage
metrics.
SGPPL's plant load factor improved over April-December 2015 due to
the resolution of technical issues. However, a consistent long-
run plant performance is yet to be observed.
Revenue risk stems from the biomass power tariffs being determined
by Rajasthan Electricity Regulatory Commission every two years
based on revised cost assumptions and escalations which could vary
from the actual cost of inputs. That said, SGPPL has been
receiving payments at a tariff of INR6.63/unit from Rajasthan
distribution companies with an average receivable days of 41 days,
in line with Ind-Ra's estimates.
The rating also reflects the fuel supply risk as the raw material
(biomass) for the power plant is sourced from local farmers and
raw material availability is seasonal in nature. Fuel risks
include volatility in the prices of biomass that has displayed
consistent increases, thereby necessitating the government to
revise biomass power tariffs frequently.
Operations and maintenance is being carried out by an in-house
team. Operation risk is partially mitigated as the plant has been
operational since August 2011. However, the project is
characterized by slightly higher operations and maintenance
expenses than the benchmark Rajasthan Electricity Regulatory
Commission norms which can impact the cash flow required for debt
servicing, should other expenses vary adversely.
RATING SENSITIVITIES
Positive: A sustained plant performance resulting in coverage
metrics in line with Ind-Ra's estimates could result in a positive
rating action.
Negative: Conversely, underperformance or lower-than-expected
realizations could result in a negative rating action.
COMPANY PROFILE
SGPPL operates a 10MW biomass power plant in the Merta district of
Rajasthan. Commercial operations commenced in April 2011. SGPPL
is majorly held by Focal Biomass Holdings Limited.
SMART STAINLESS: CRISIL Reaffirms B+ Rating on INR57MM Loan
-----------------------------------------------------------
CRISIL's ratings on the bank facilities of Smart Stainless Tubes
Private Limited (SSTPL) continue to reflect SSTPL's below-average
financial risk profile because of small networth, high gearing and
subdued debt protection metrics. The ratings also factor in the
company's initial stage of operations, with ability to sustain
operating income and profitability yet to be seen. These
weaknesses are partially offset by its promoters' extensive
experience in the steel industry, and the sound growth prospects
for the stainless steel tubes industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 2.5 CRISIL A4 (Reaffirmed)
Cash Credit 57 CRISIL B+/Stable (Reaffirmed)
Proposed Short Term
Bank Loan Facility 0.7 CRISIL A4 (Reaffirmed)
Term Loan 64.8 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes SSTPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the company significantly
scales up operations, while improving profitability and working
capital management. Conversely, the outlook may be revised to
'Negative' if financial risk profile, particularly liquidity,
weakens because of substantial increase in working capital
requirement, or decline in cash accrual, or large debt-funded
capital expenditure.
SSTPL is promoted by Kolkata-based Mr. Krishan Mohta and his
family members. The company was incorporated in 2011, but
commenced commercial operations in February 2014. It manufactures
non-corrosive stainless steel tubes for the ornamental segment,
and for industrial and structural applications. Its production
facility at Madhaymgram in Kolkata has installed capacity of 4800
tonnes per annum.
SRI SWAMI: CRISIL Reaffirms 'B+' Rating on INR243MM Cash Loan
-------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Sri Swami
Chitrath Rice Mills (SSCRM) continues to reflect the firm's weak
financial risk profile because of high gearing and below-average
debt protection metrics, and working capital-intensive operations.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 243 CRISIL B+/Stable (Reaffirmed)
Rupee Term Loan 7 CRISIL B+/Stable (Reaffirmed)
These rating weaknesses are partially offset by the extensive
experience of SSCRM's partners in the rice industry and their
financial support, and benefits expected from the healthy growth
prospects for the basmati rice industry.
Outlook: Stable
CRISIL believes SSCRM will continue to benefit over the medium
term from its partners' extensive industry experience; however,
its financial risk profile will remain constrained over this
period by high gearing and below-average debt protection metrics.
The outlook may be revised to 'Positive' in case of improvement in
the financial risk profile, driven most likely by better-than-
expected cash accrual or better working capital management.
Conversely, the outlook may be revised to 'Negative' in case of
lower-than-anticipated cash accrual or a substantial increase in
working capital requirement.
SSCRM was established as a partnership firm in 2010, promoted by
Mr Vakeel Chand. The firm processes and sells basmati rice. Its
facility at Fazilka, Punjab, has milling and sorting capacities of
4 tonnes per hour each.
SRINIVASA ENGINEERING: CRISIL Puts 'B' Rating on INR57.5MM Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Srinivasa Engineering Works (SEW).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 6.4 CRISIL B/Stable
Cash Term Loan 57.5 CRISIL B/Stable
Bank Guarantee 2.0 CRISIL A4
Cash Credit 4.1 CRISIL B/Stable
The rating reflects SEW's modest scale of operations, high
customer concentration risks, and below-average financial risk
profile. These weaknesses are partially offset by the extensive
experience of the promoters in the auto-components industry and
established relations with Sundaram Fasteners Ltd (SFL), its sole
customer.
Outlook: Stable
CRISIL believes SEW will continue to benefit over the medium term
from the promoters' extensive experience in the auto components
industry. The outlook may be revised to 'Positive' in case of
improvement in the business risk profile, driven by higher
profitability and increase in the scale of operations, leading to
increase in net cash accrual and a better financial risk profile.
The outlook may be revised to 'Negative' if there is deterioration
in the financial risk profile because of withdrawal of capital or
large, debt-funded capital expenditure.
Established in 2013 as a partnership firm, SEW is involved in job
work for SFL. The firm specifically takes up job work related to
different types of shafts. Mr. C V Ravindran and his wife, Mrs.
Vijayalakshmi Ravindran, are the promoters.
SUBRA ENTERPRISES: CRISIL Reaffirms B+ Rating on INR80MM Loan
-------------------------------------------------------------
CRISIL's ratings on the long-term bank facilities of Subra
Enterprises (SE) continue to reflect SE's below-average financial
risk profile, marked by a moderate gearing, below average debt
protection metrics and exposure to intense competition in the agro
commodities trading industry. These rating weaknesses are
partially offset by the extensive experience of SE's partners in
the agro commodities trading business.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 80 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that SE will continue to benefit over the medium
term from its partners' extensive experience in the trading
business. The outlook may be revised to 'Positive' in case the
firm significantly scales up its operations and improves its
profitability, while it maintains its working capital
requirements. Conversely, the outlook may be revised to 'Negative'
in case SE faces any unfavourable regulatory changes, leading to
significant decline in its revenue, or if its working capital
management deteriorates, leading to weakening of its financial
risk profile.
SE, set up in 2012, is based in Chennai. It trades in agro
commodities. Its operations are managed by Mr. A S Sharath
Chandran and his son, Mr. Shiyaam Sharath.
SE reported a net profit of INR2.5 million on an operating income
of INR666.5 million for 2014-15 (refers to financial year, April 1
to March 31), against a net profit of INR1.26 million on an
operating income of INR543.6 million for 2013-14.
SUPER CRAFT: CRISIL Ups Rating on INR164.5MM Term Loan to 'B'
-------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Super Craft Foundry (SCF; part of the SCF group) to 'CRISIL
B/Stable' from 'CRISIL B-/Stable', while reaffirming its rating on
the short-term facilities at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 10 CRISIL A4 (Reaffirmed)
Cash Credit 63 CRISIL B/Stable (Upgraded
from 'CRISIL B-/Stable')
Rupee Term Loan 164.5 CRISIL B/Stable (Upgraded
from 'CRISIL B-/Stable')
Working Capital 12.5 CRISIL B/Stable (Upgraded
Term Loan from 'CRISIL B-/Stable')
The rating upgrade reflects improvement in the SCF group's
financial risk profile particularly its liquidity backed by
healthy operating performance. The revenue improved to INR1.0
billion in 2014-15 (refers to financial year, April 1 to March 31)
from INR575 million in 2013-14 and further to INR1.1 billion for
the nine months ended December 31, 2015, backed by revival in
demand from the automobile industry. Improvement in revenue has
also led to better absorption of fixed costs leading to
improvement in operating margin to 8 percent from lows of less
than 3 percent in the two years through 2013-14. Steady accrual
derived from the aforesaid coupled with sustained working capital
management is expected to provide comfort to liquidity over the
medium term.
The ratings reflect group's modest profitability and customer
concentration in revenue profile and average financial risk
profile. However, the group benefits from the promoters' extensive
experience in the cast iron industry and from the improving scale
of operations.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of SCF and Swift Enterprise Pvt Ltd
(SEPL). These is because the two entities, together referred as
the SCF group, are owned and managed by common promoters, are in
the same line of business, and have business and financial
linkages.
Outlook: Stable
CRISIL believes the SCF group will continue to benefit over the
medium term from its promoters' extensive experience in the auto
ancillary industry. The outlook may be revised to 'Positive' if
significant and sustained improvement in revenue and profitability
leads to large cash accrual, thereby improving liquidity.
Conversely, the outlook may be revised to 'Negative' if the
financial risk profile, particularly liquidity, weakens because of
low cash accrual, or stretched working capital cycle or any large
capital expenditure.
SEPL, set up in 1988, and SCF, a partnership firm set up in 1994,
are based in Kolhapur (Maharashtra). The group is promoted and
managed by Mr. Ratnakar Kulkarni and son Mr. Ranjeet Kulkarni. SCF
is an auto ancillary unit that manufactures iron castings,
including brake drums, gear box covers, engine covers, and other
cast iron parts. SEPL undertakes machining and assembling of auto
components for SCF.
SURAJ VALUE: CARE Reaffirms B+ Rating on INR15.55cr LT Loan
-----------------------------------------------------------
CARE reaffirms rating assigned to the bank facilities of Suraj
Value Infrastructures Private Limited (erstwhile Suraj Tubes India
Private Limited).
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 15.55 CARE B+ Reaffirmed
Rating Rationale
The rating assigned to the bank facilities of Suraj Value
Infrastructures Private Limited (SVIPL) continued to remain
constrained by the limited experience in steel tube manufacturing
sector, weak financial risk profile with net loss and negative
gross cash accruals (GCA) during FY15 (refers to the period April
01 to March 31), weak solvency position and intense competition
due to fragmented nature of the steel industry along with working
capital intensive nature of business operations.
The rating continue to draw strength from extensive industry
experience of the promoters in steel tubes business with synergies
with group concern which has established presence in trading of
steel pipes and an established customer base and medium-term
revenue visibility on the back of comfortable order book position.
The ability of the firm to improve its solvency position and
improve its sales margins through increased volume of orders and
increase in sales price per product are the key rating
sensitivities.
SVIPL is a part of Nanded-based (Maharashtra) Suraj Group. The
company was known as 'Suraj Tubes India Private Limited' and later
on April 23, 2015 was renamed as 'Suraj Value Infrastructure
Private Limited'. The group has presence in various business
segments such as steel trading, manufacturing and trading of
fertilizers and polymers, etc.
SVIPL was incorporated in the year 2011 to undertake manufacturing
of various types of steel tubes like Hot-Rolled (HR), round tubes,
galvanised- plain (GP) tubes, HR square tubes, Cold- Rolled (CR)
tubes, CR round tubes, C shape purling, Z shape purling. The
company has installed capacity of 36,000.
TOOLFAB ENGINEERING: CARE Reaffirms B Rating on INR19.92cr Loan
---------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Toolfab Engineering Industries Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 19.92 CARE B Reaffirmed
Rating Rationale
The rating assigned to Toolfab Engineering Industries Private
Limited (TEIPL) continues to be constrained by TEIPL's weak
financial risk profile marked by significant decline in
profitability, working capital intensive nature of operations and
the company's presence in a highly fragmented and competitive
industry. The rating also factors in TEIPL's elongated
operating cycle in FY15 (refers to the period April 1 to
March 31).
The rating, however, derives strength from the established track
record of the company in the engineering industry, experience of
the promoters, modest order book position albeit from reputed
customers, and moderate debt coverage indicators. It also factors
in completion of the modernization project in H1FY16.
The ability of the company to increase its scale of operations and
improve its financial risk profile are the key rating
sensitivities.
Established in 1972 at Trichy, Tamil Nadu as a partnership firm,
Toolfab Engineering Industries Private Limited (TEIPL) was
acquired by Mr Madan Mohan in 1995 and was reconstituted as a
private limited company in 2004. TEIPL, an ISO 9001:2008 certified
company, undertakes engineering and fabrication work for wind mill
towers, boiler pressure parts, mining equipments, pre-engineered
buildings among others. TEIPL's manufacturing unit is located at
Trichy, Tamil Nadu with an installed capacity of 50,000 metric ton
per annum. Its clientele include reputed customers like
RegenPowertech Private Limited, Win Wind Energy Private Limited,
Neyveli Lignite Corporation Limited, Suzlon Towers and Structures
Limited, Bharat Heavy Electricals Limited,among others. TEIPL has
long standing relationship with its customers owing to its long
track record of operations. Apart from manufacturing, TEIPL also
undertakes job work wherein the raw materials are supplied by the
customers, reducing raw material risk of the company to that
extent. TEIPL is also executing projects for southern railways
both through direct contracts and sub-contracts.
TEIPL incurred net loss of INR0.77 crore on a total operating
income of INR33.09 crore in FY15 as compared with net loss of
INR0.54 crore on a total operating income of INR25.39 crore in
FY14. For 9MFY16 (provisional- refers to the period April 1
to December 31), TEIPL achieved total operating income of INR22.23
crore.
UMAK EDUCATIONAL: CARE Assigns 'D' Rating to INR66.37cr LT Loan
---------------------------------------------------------------
CARE assigns 'CARE D' rating to the bank facilities of Umak
Educational Trust.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 66.37 CARE D Assigned
Rating Rationale
The rating assigned to the bank facilities of Umak Educational
Trust (UET) takes into account ongoing delays in servicing of
the interest due to stressed liquidity position.
Umak Educational Trust (UET) was established in 2006 with an
objective to provide education services. The trust operates a
college under the name of Vedatya Institute (VEI) in Gurgaon,
Haryana offering varied courses. The day to day management of the
trust is carried by Dr. Ramesh Kapur and Mr. Nitin Kapur. UET
offers courses such as Bachelor in Business Administration
(B.B.A), School of Hospitality and Tourism Management (SHTM), Post
Graduate Programme in Revenue Management (PGPRM) and Post Graduate
in Diploma Management (PGDM). The B.B.A. and SHTM courses offered
by the college were earlier affiliated with Oxford Brooks
University. However, the contract got terminated on March, 2014
resulting in no fresh admissions. The PGDM course is affiliated
with AICTE and PGPRM is affiliated with Intercontinental Hotel
Group (IHG). UET has a total strength of 106 students in college
as per the academic session AS 2014-15. The Kapur family is also
the promoters of AB Hotels Limited which manages the overall
operations of the Radisson Hotel, Mahipalpur (Delhi) and Bhadoi
Hotels Limited manages the Radisson Hotel at Varanasi (Uttar
Pradesh).
During FY15 (refers to the period April 01 to March 31), UET has
achieved a total operating income (TOI) of INR9.59 crore with SBID
and Deficit of INR3.10 crore and INR3.76 crore, respectively, as
against TOI of INR12.21 crore with SBID and Surplus of INR0.53
crore and INR0.06 crore, respectively, in FY14.
UNISOURCE PAPERS: CRISIL Assigns B- Rating to INR20.5MM Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to
the bank facilities of Unisource Papers Private Limited (UPPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 20.5 CRISIL B-/Stable
Long Term Loan 14.5 CRISIL B-/Stable
Cash Credit 15 CRISIL B-/Stable
Letter of Credit 50 CRISIL A4
The ratings reflect UPPL's weak financial risk profile, with
subdued debt protection metrics, depressed profitability, and
stretched liquidity, reflected in fully utilised working capital
limits. The ratings also factor in the company's modest scale of
operations in a fragmented industry and vulnerability to foreign
exchange fluctuations. These rating weakness are partially offset
by the established customer profile, and the promoters' extensive
experience in paper trading.
Outlook: Stable
CRISIL believes UPPL will continue to benefit over the medium term
from its promoters' extensive industry experience and established
relations with suppliers and customers. The outlook may be revised
to 'Positive' if higher cash accrual and efficient working capital
management strengthen financial risk profile, particularly
liquidity. Conversely, the outlook may be revised to 'Negative' if
stretch in working capital cycle or pressure on profitability
severely constrains liquidity.
UPPL, incorporated in 2005 by Mr. Inder Aurora, imports, trades
in, and processes a variety of paper, including kraft, test liner,
and virgin paper. The products are imported from USA, Europe and
Australia. UPPL also has a unit in Talegaon, Pune (Maharashtra)
dedicatedly used for job-works for ITC Ltd. Another unit'at
Chakan, Pune, is used for cutting and rolling of paper into
different sizes and shapes as per customer requirements.
UPPER INDIA: Ind-Ra Withdraws B+ Long-Term Issuer Rating
--------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Upper India
Smelting and Refinery Works' 'IND B+ (suspended)' Long-Term Issuer
Rating. The agency has also withdrawn the 'IND B+ (suspended)'
and 'IND A4(suspended)' ratings on the company's INR99 mil. fund-
based limits.
The ratings have been withdrawn due to lack of adequate
information. Ind-Ra will no longer provide ratings or analytical
coverage for Upper India.
Ind-Ra suspended Upper India Smelting and Refinery Works' ratings
on June 10, 2015.
VAIBHAV COTEX: CARE Assigns 'B+' Rating to INR7.36cr LT Loan
------------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of Vaibhav
Cotex Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 7.36 CARE B+ Assigned
Rating Rationale
The rating assigned to the bank facilities of Vaibhav Cotex
Private Limited (VCPL) is constrained by working capital intensive
nature of operations, susceptibility to government policies
related to price and exports of cotton, low profitability margins,
weak solvency position and inherent risk associated with
seasonality in the nature of operations along with fragmented
nature of industry.
The rating draws strength from the extensive industry experience
of the promoters in cotton ginning and pressing business with
locational advantage emanating from proximity to raw material.
The ability of the firm to improve its profitability margins,
solvency position along with efficient management of working
capital requirements are the key rating sensitivities.
VCPL was incorporated as a private limited company in the year
2008. The company is engaged in ginning and pressing of cotton and
extraction of oil from cotton seeds. The ginning and pressing unit
and oil extraction unit is located at Yavatmal, Maharashtra. The
company has installed capacity of 32,500 bales per annum and to
extract 135,000 quintals of oil per annum. It procures the raw
material, ie, raw cotton from the local market and sell its final
product, ie, cotton bales to the customers located in and around
Yavatmal. The top five customers of the company, namely, Cotton
Emporium, Prasuna Vamshri Krishna Spinning mills Private Limited,
Anup Traders, Sanjay Solvent and L.D. Commodity contributed around
31% of the total revenue during FY15 (refers to the period April 1
to March 31).
The firm has recently set up the oil mill unit and expanded its
existing ginning capacity in April 2014. The total cost of the
project was INR3.40 crore which was funded by term loan from bank
of INR2.50 crore and balance from unsecured loans and internal
accruals.
During FY15, the company generated a total operating income of
INR55.54 crore and a Profit After Tax (PAT) of INR0.12 crore as
against a total operating income of INR39.98 crore and PAT of
INR0.15 crore in FY14.
VAISHNO INTERNATIONAL: Ind-Ra Withdraws IND BB+ LT Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Vaishno
International Private Limited's (VIPL) '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
VIPL. Ind-Ra suspended VIPL's rating on 5 May 2015.
VIPL's ratings are as follows:
-- Long-Term Issuer Rating: 'IND BB+(suspended)'; rating
withdrawn
-- INR150.5 million long-term loans: 'IND BB+(suspended)'; rating
withdrawn
-- INR385 million fund-based limits: Long-term 'IND
BB+(suspended)' Short-term 'IND A4+(suspended)'; rating
withdrawn
-- INR53.5 million non-fund-based limits: Long-term 'IND
BB+(suspended)' and Short-term 'IND A4+(suspended)'; rating
Withdrawn
VARDHMAN ISPAT: Ind-Ra Withdraws 'IND B' LT Issuer Rating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Vardhman Ispat
Udyog's 'IND B(suspended)' Long-Term Issuer Rating.
The agency has also withdrawn the 'IND B(suspended)' and 'IND
A4(suspended)' ratings on the company's INR170 million fund-based
limits. The ratings have been withdrawn due to lack of adequate
information. Ind-Ra will no longer provide ratings or analytical
coverage for Vardhman Ispat Udyog.
Ind-Ra suspended Vardhman Ispat Udyog's rating on June 10, 2015.
VISA STEEL: CARE Reaffirms 'D' Rating on INR2,380.48cr Loan
-----------------------------------------------------------
CARE reaffirms the ratings assigned to bank facilities of
Visa Steel Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 2,380.48 CARE D Reaffirmed
Short Term Bank Facilities 540.00 CARE D Reaffirmed
Rating Rationale
The ratings assigned to bank facilities of Visa Steel Ltd (VSL)
take into account the continuing delays in debt servicing. The
cash flow position of the company has been severely impacted due
to losses arising from under utilisation of capacities on account
of non-availability of key raw materials and highly leveraged
capital structure. This has resulted in the inability of the
company to meet its debt obligations on time.
VSL, incorporated in 1996, promoted by Kolkata-based VISA Group,
is engaged in manufacturing and trading of long steel & related
products with saleable steel capacity (bars or rods) of 5 lakh
tonnes per annum (ltpa) and ferro chrome (1.2 ltpa) in Odisha. As
part of backward integration, it has SMS (5 ltpa), sponge iron (3
ltpa), pig iron (2.25 ltpa) and CPP (75 MW) facilities.
VISA group was promoted by Mr. Vishambhar Saran and has interests
in steel & related products and power sector. The company was
under CDR and Strategic Debt Restructuring (SDR) was invoked by
the bankers in September 2015. In FY15, VSL reported a loss of
INR241.44 crore (loss of INR152.50 crore in FY14) on total
operating income of INR922.16 crore (Rs.1,020.45 crore in FY14).
In H1FY16, the company reported a loss of INR272.23 crore on a
total operating income of INR467.40 crore.
VISHAL CAR: CRISIL Ups Rating on INR67MM LT Loan to 'B+'
--------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Vishal Car World Private Limited (VCWPL) to 'CRISIL B+/Stable'
from 'CRISIL B/Stable' and reaffirmed its rating on the short-term
bank facility at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 10 CRISIL A4 (Reaffirmed)
Cash Credit 10 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Electronic Dealer 40 CRISIL B+/Stable (Upgraded
Financing Scheme from 'CRISIL B/Stable')
(e-DFS)
Proposed Long Term 67 CRISIL B+/Stable (Upgraded
Bank Loan Facility from 'CRISIL B/Stable')
Term Loan 33 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
The upgrade reflects improvement in VCWPL's business risk profile
due to healthy revenue growth and improved operating
profitability. Revenue increased to INR400 million in 2014-15
(refers to financial year, April 1 to March 31) from INR122.8
million the previous year due to scaling up of operations in its
new showroom, which commenced operations from November 2014.
Operating margin improved to 5.3 percent from 3.6 percent because
of increased revenue from sales of spares and services, and the
margin is expected to remain stable over the medium term supported
by healthy incentives from principal Maruti Suzuki India Ltd
(MSIL).
The ratings reflect VCWPL's below-average financial risk profile
driven by high total outside liabilities to tangible networth
(TOLTNW) ratio and weak debt protection metrics, and
susceptibility to economic slowdown and to intense competition in
the automobile dealership segment. These weaknesses are partially
offset by promoters' extensive industry experience.
Outlook: Stable
CRISIL believes VCWPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' in case of significant
increase in sales volumes and operating profitability, or
substantial improvement in TOLTNW ratio and debt protection
metrics. Conversely, the outlook may be revised to 'Negative' if
VCWPL reports lower-than-expected cash accrual, impacting
liquidity, or undertakes a considerable debt-funded capital
expenditure programme, leading to weakening of financial risk
profile.
VCWPL, incorporated in 2012 and based in Tinsukia (Assam), is the
authorised dealer for passenger vehicles of MSIL in Tinsukia. The
company has two showroom with sales, service, and spares
facilities, set up in October 2013.
VIVA MERCHANTS: Ind-Ra Suspends BB+ Long-Term Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Viva Merchants
Private Limited's (VMPL) 'IND BB+' Long-Term Issuer Rating to the
suspended category. The Outlook was Stable. The rating will now
appear as 'IND BB+(suspended)' on the agency's website. The
agency has also migrated the company's INR500 mil. non-fund-based
limits to 'IND BB+(suspended)' from 'IND BB+' and
'IND A4+(suspended)' from 'IND A4+'.
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 VMPL.
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.
VIVEKANAND INDUSTRIES: CARE Assigns B+ Rating to INR11.30cr Loan
----------------------------------------------------------------
CARE assigns 'CARE B+' rating to bank facilities of Vivekanand
Industries.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 11.30 CARE B+ Assigned
Rating Rationale
The rating assigned to the bank facilities of Vivekanand
Industries (VI) is primarily constrained on account of its thin
profitability and high leverage along with its presence in the
highly fragmented and competitive cotton ginning industry
which entails limited value addition.
The rating is further constrained on account of its susceptibility
to inherent volatility associated with cotton prices and
regulatory changes governing the cotton industry.
The rating, however, derives strength from the vast experience of
the partners of VI in the cotton ginning industry and its
proximity to the cotton-growing region of Gujarat.
VI's ability to increase its scale of operations while managing
volatility associated with cotton prices along with improvement in
its profitability and capital structure are the key rating
sensitivities.
Kadi based Vivekanand Industries (VI), a partnership firm, was
constituted in April, 2003. VI is promoted by ten partners
with unequal profit and loss sharing agreement between them. All
the activities of the firm are mainly controlled by Managing
Partner Mr. Bharat Patel. VI is engaged in cotton processing and
trading. It sells ginned cotton, cotton seeds, cotton seed oil and
cotton seed de-oiled cake. It has an installed capacity of 29,200
Metric Tonnes Per Annum (MTPA) for ginned cotton, 24,000 MTPA for
cotton seeds cake, 3,650 MTPA for wash oil and 52,900 MTPA for
cotton seed as on March 31, 2015.
Based on provisional results for FY15 (refers to the period
April 1 to March 31), VI has reported a total operating income
of INR107.31 crore with a PAT of INR0.12 crore as against a total
operating income of INR135.35 crore with a PAT of INR0.13 crore in
FY14.
=========
J A P A N
=========
MITSUI O.S.K.: Moody's Affirms Ba1 Corporate Family Rating
----------------------------------------------------------
Moody's Japan K.K. has affirmed the Ba1 corporate family rating of
Mitsui O.S.K. Lines, Ltd. (MOL).
At the same time, Moody's has changed the rating outlook to
negative from stable.
RATINGS RATIONALE
"The change of outlook to negative primarily reflects our
expectation of weaker than previously expected profitability for
the fiscal year ending 31 March 2016 (FYE3/2016) due to the
currently challenging and volatile operating environment,
especially in the containership and dry bulk segments and for this
situation to extend out over the coming 12-18 months", says
Kailash Chhaya, a Moody's Vice President and Senior Analyst.
"Our expectation of weaker profits and sustained high leverage
will reduce the headroom within MOL's current rating, given that
its leverage is already at a high level", adds Chhaya.
The weakness in the containership segment has been the primary
driver of MOL's weak level of earnings and the company expects to
report an ordinary loss of JPY31 billion in its containership
business for FYE3/2016.
"We expect that the container ship segment will remain in
oversupply for at least the next 12-18 months, potentially
depressing pricing further; and that the bulk shipping segment
will also be extremely problematic for MOL. These two segments are
key drivers for MOL's rating and outlook", says Chhaya.
Based on MOL's 3Q FYE3/2016 earnings announcement, Moody's
estimates that adjusted debt/EBITDA was about 7.4x as of 31
December 2015 and we project that this could rise above to 8.0x or
slightly above in the short to medium term.
At the same time, MOL announced a restructuring plan, which
involves the reduction of a number of its container and dry bulk
ships, which are not on long-term contracts.
As a result of its restructuring plan MOL will also post a one-
time extraordinary loss of about JPY180 billion in 4Q FY2016.
Moody's views positively MOL's plan to reduce its holding of
unprofitable assets because it will help reduce costs. At the same
time, Moody's will closely observe the impact of this
restructuring on the company's cash flow and ability for this
initiative to partially mitigate current weak earnings.
MOL's negative outlook reflects our expectations that leverage
will remain higher than what we had previously expected and that
profits will remain volatile, with exposure to the depressed
container and dry bulk freight rates being protracted.
An upgrade for MOL is unlikely in the near term given the current
challenging market conditions and while the company's leverage
remains high for its rating.
MOL's rating could come under pressure if there are any signs that
profitability will not turn around; if leverage does not commence
to decrease; or if liquidity erodes for any reason.
More particularly, further downward rating pressure is likely
should the company's key financial metrics remain at levels
inappropriate for the current rating. In particular financial
leverage as measured by debt/EBITDA remaining materially above 7x
or if (FFO + interest expense)/interest expense below 4.5x without
a reasonable expectation that these metrics will revert within the
outlook horizon, normally 12 to 18 months, would be likely to lead
to immediate pressure.
Mitsui O.S.K. Lines, Ltd. (MOL), headquartered in Tokyo, is one of
the world's largest shipping companies by fleet size with about
900 vessels, including spot-chartered ships and vessels owned
through joint ventures. The company is a shipping conglomerate,
with diversified operations covering all shipping segments:
containerships, dry bulkers, car carriers, tankers and LNG
carriers.
KAWASAKI KISEN: Moody's Reviews Ba2 CFR for Downgrade
------------------------------------------------------
Moody's Japan K.K. has placed the Ba2 corporate family rating of
Kawasaki Kisen Kaisha, Ltd. (K-Line) under review for downgrade.
RATINGS RATIONALE
"The decision to place K-Line's rating under review for downgrade
primarily reflects Moody's expectation of weaker than expected
profitability for the fiscal year ending March 2016 (FYE3/2016)
due to a very challenging operating environment, especially in the
company's containership and dry bulk segments. We expect that this
situation will be protracted and lead to sustained higher leverage
than is appropriate for the company's rating, in the absence of
other near-term mitigating counter-measures by K-Line", says
Kailash Chhaya, a Moody's Vice President and Senior Analyst.
"Our expectation of weaker profits and sustained higher leverage
will reduce the headroom within K-Line's current rating, given
that its leverage is already at a high level and could well
deteriorate further", adds Chhaya.
"We note the rapid fall in profitability of K-Line's container
segment over recent months, in particular, and remain concerned
about K-Line's ability to turn this around in the near term, amid
the current operating environment. Unless this can be achieved in
a reasonable time frame -- which we think unlikely given current
market conditions -- it will be difficult for the company to
effectively de-lever in the near or medium term", says Chhaya.
On 29 January 2016, K-Line revised down its ordinary profit
guidance for FYE3/2016 to JPY7 billion from JPY20 billion, as
announced in October 2015.
Weakness in the containership segment is the primary driver for K-
Line's weak earnings.
The company expects to report an ordinary loss of JPY10 billion in
this segment for FYE3/2016.
Based on K-Line's 3Q FYE3/2016 earnings announcement, Moody's
estimates adjusted debt/EBITDA was about 6.8x as of 31 December
2015 (all metrics incorporate Moody's standard analytical
adjustments unless otherwise specified).
Even should the company meet its new ordinary profit target for
FYE3/2016 and debt remain at the same level as at 31 December 2015
of about JPY0.5 trillion, then adjusted debt/EBITDA will likely
increase to the low-7x range.
The review will focus predominantly on, (1) K-Line's ability to
deploy effective countermeasures to offset and stem the decline in
profitability; and (2) the company's plans and ability to
deleverage to a level more in-line with its current rating.
Kawasaki Kisen Kaisha, Ltd. (K-Line), headquartered in Kobe, is
the third-largest shipping company in Japan with revenues of
JPY1.3 trillion for calendar 2015. Its operations are diversified
and cover almost all ocean shipping segments, including
containerships, bulk carriers, car carriers, and energy
transports. It operates a fleet of more than 500 vessels,
including spot-chartered ships.
SHARP CORP: Foxconn Expects to Strike Purchase Deal By End Feb.
---------------------------------------------------------------
Takashi Mochizuki and Wayne Ma at The Wall Street Journal reports
that Foxconn Chairman Terry Gou said the Taiwanese iPhone
assembler expects to seal a deal to buy troubled electronics
supplier Sharp Corp. by the end of the month, setting up one of
the biggest foreign takeovers of a Japanese company.
The Journal relates that Mr. Gou, who met with Sharp executives at
the company's headquarters in Osaka on Feb. 5, said the two
companies have cleared 90% of the hurdles with an unspecified
legal issue preventing a final agreement. He said they did sign an
agreement that gives Foxconn negotiating rights ahead of a
Japanese government-backed fund that was also interested in
acquiring Sharp, the Journal says.
But Sharp in a statement Feb. 5 struck a more cautious tone:
"There are reports that we have given Foxconn priority negotiation
rights, but this is not what we have announced and there is no
such fact." Sharp said it continues to negotiate details of
Foxconn's proposal, which it said would remain valid until Feb.
29, according to the Journal.
"I wanted to show you the signed final agreement document," Mr.
Gou told reporters after meeting with Sharp executives, the
Journal relays. "I see no further big obstacles."
Instead of a final agreement, Foxconn provided photos taken inside
a meeting room at Sharp's headquarters that showed Mr. Gou and
Sharp President Kozo Takahashi shaking hands and beaming as they
signed other documents, the Journal says.
The Journal notes that though Sharp is one of Japan's proudest
corporate names, it has been stung by plunging prices of its
biggest business, liquid crystal display panels for smartphones,
which it supplies to Apple Inc. and other smartphone makers. The
company, which on Feb. 4 reported that its latest quarterly loss
more than doubled from a year earlier, has been bailed out twice
in less than four years by its lenders.
On Feb. 4, Mr. Takahashi said his company favored Foxconn's offer
over a bid from Innovation Network Corp. of Japan, a fund that
owns stakes in a number of other Japanese technology companies,
the Journal reports.
The Journal says the takeover struggle has been viewed as a test
of Japan's openness to foreign investors. Prime Minister Shinzo
Abe has been trying to attract more investment from abroad as part
of his plan to revive the country's long-stagnant economy, the
report states.
Mr. Gou declined to disclose financial terms of the deal under
discussion, the Journal notes. People familiar with the situation
have said Foxconn, formally known as Hon Hai Precision Industry
Co., is offering a package worth JPY659 billion ($5.5 billion).
That compares with an offer from INCJ that these people have said
is worth at most JPY300 billion, according to the Journal.
The Journal says Mr. Gou promised to keep Sharp largely intact in
an effort to revive the company, rather than breaking it up as
INCJ was expected to do. A possible exception, he said, is Sharp's
solar-panel business, which he described as the company's weakest
link, the Journal relays.
According to the Journal, Mr. Gou also said he intends to keep the
Sharp brand, which the company applies to consumer electronics,
appliances, printers and other products.
"Sharp is very popular brand, and we, Foxconn, don't have a
brand," the report quotes Mr. Gou as saying. "We are investing a
lot of money in Sharp, and we wouldn't do it if we were not
confident about Sharp and its turnaround."
The Journal adds that some analysts have questioned whether it
makes sense for Foxconn, largely a contract manufacturer for
brand-name electronics providers, to develop its own products. But
Mr. Takahashi said Feb. 4 that there were synergies between Sharp
and Foxconn, which generates $125 billion in annual sales.
The Journal relates that Mr. Gou said he plans to inject cash
quickly in an effort to shore up Sharp's facilities and support
its engineers, who have a reputation for technological prowess.
Some have been leaving the company as its problems have mounted.
Based in Osaka, Japan, Sharp Corporation (TYO:6753) --
http://sharp-world.com/-- manufactures and sells electronic
telecommunication devices, electronic machines and components.
As reported in Troubled Company Reporter-Asia Pacific on
Nov. 6, 2015, Standard & Poor's Ratings Services said that it has
lowered its long-term corporate credit and debt ratings on Japan-
based electronics company Sharp Corp. to 'CCC+' from 'B-' and its
short-term corporate credit and commercial paper program ratings
on the company to 'C' from 'B'. S&P has also lowered its long-
term corporate credit rating on overseas subsidiary Sharp
International Finance (U.K.) PLC to 'CCC+' and the rating on its
commercial paper program to 'C'. The outlook on the long-term
corporate credit ratings on both companies is negative.
TOSHIBA CORP: Revises Annual Loss Forecast to JPY710 Billion
------------------------------------------------------------
Japan Today reports that Toshiba Corp. said Feb. 4 it has expanded
its full-year loss forecast to JPY710 billion, following an
embarrassing profit-padding scandal.
According to the report, the company also pointed to a global
economic slowdown, saying it was taking a big bite out of results
across its sectors, including memory chip and computer sales.
Its new forecast of a JPY710 billion loss for the fiscal year to
March -- well up from an earlier JPY550 billion net loss estimate
-- came as Toshiba said it lost JPY479.4 billion in the nine
months to December, reversing a profit from a year earlier, Japan
Today relates.
Japan Today says the disappointing figures follow Toshiba's
announcement last month it was inflating tenfold a damages claim
against a group of former executives in the wake of its accounting
scandal.
The company said it was now seeking around JPY300 billion from
five former top managers, including a trio of presidents, for
their role in the fraud, Japan Today relays.
Japan Today notes that Japan's market watchdog last month slapped
the firm with a record JPY650 billion fine over the affair, which
saw the company inflate profits by about JPY150 billion since the
2008 global financial crisis.
A company-hired panel found top executives had pressured
underlings systematically to pump up profit figures to hide poor
results, the report states.
According to Japan Today, Toshiba's business was dented by the
global downturn, while the 2011 Fukushima disaster killed off
demand for atomic power at home in a big blow to the firm's key
nuclear division.
The scandal ushered in a wide-ranging restructuring, which
included thousands of job cuts. The company has about 200,000
employees globally, says Japan Today.
"Toshiba Group has decided to execute bold structural reforms of
its unprofitable businesses, and accordingly executed sales of
fixed assets and other measures," Toshiba, as cited by Japan
Today, said. "For this reason, substantial losses were recorded"
in the latest period, it added, citing restructuring costs.
The company pledged to press on with the overhaul, the report
adds.
About Toshiba Corp.
The Troubled Company Reporter-Asia Pacific, citing Reuters,
reported on July 22, 2015, that an independent investigation said
in a report on July 21 that Toshiba Corp. overstated its operating
profit by JPY151.8 billion ($1.22 billion) over several years in
accounting irregularities involving top management.
The investigating committee said in a report filed by Toshiba to
the Tokyo Stock Exchange that Toshiba President and Chief
Executive Hisao Tanaka and his predecessor, Vice Chairman Norio
Sasaki, were aware of the overstatement of profits and delay in
reporting losses in a corporate culture that "avoided going
against superiors' wishes," according to Reuters.
The TCR-AP, citing Bloomberg News, reported on July 22, 2015, that
Toshiba Corp. President Hisao Tanaka and two other executives quit
to take responsibility for a $1.2 billion accounting scandal that
caused the maker of nuclear reactors and household appliances to
restate earnings for more than six years.
Norio Sasaki, the vice chairman, and Atsutoshi Nishida, a former
president who was serving as adviser, also resigned, the Tokyo-
based company said July 21, more than two months after announcing
it was investigating possible accounting irregularities, according
to Bloomberg.
On Dec. 28, 2015, Moody's Japan K.K. has downgraded Toshiba
Corporation's long-term senior unsecured bond ratings to Ba2 from
Baa3. Moody's has also downgraded Toshiba's subordinated debt
rating to B1 from Ba2, and short-term rating to Not Prime from
Prime-3. At the same time, Moody's has downgraded Toshiba's Baa3
issuer rating to a corporate family rating (CFR) of Ba2, and has
therefore withdrawn the issuer rating. In addition, Moody's has
placed Toshiba's Ba2 CFR and long-term senior unsecured bond
ratings, as well as its B1 subordinated debt rating under review
for downgrade.
Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/-- is
a Japan-based manufacturer involved in five business segments.
The Digital Products segment offers cellular phones, hard disc
devices, optical disc devices, liquid crystal televisions, camera
systems, digital versatile disc (DVD) players and recorders,
personal computers (PCs) and business phones, among others. The
Electronic Device segment provides general logic integrated
circuits (ICs), optical semiconductors, power devices, large-scale
integrated (LSI) circuits for image information systems and liquid
crystal displays (LCDs), among others. The Social Infrastructure
segment offers various generators, power distribution systems,
water and sewer systems, transportation systems and station
automation systems, among others. The Home Appliance segment
offers refrigerators, drying machines, washing machines, cooking
utensils, cleaners and lighting equipment. The Others segment
leases and sells real estate.
*********
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 ***