/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/160412.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, April 12, 2016, Vol. 19, No. 71 Headlines A U S T R A L I A ARRIUM LTD: Liberal Minister Rules Out Offering Bailout ARRIUM LTD: Asset Values Damaged by Administration HIGHROCK AUST: First Creditors' Meeting Set For April 15 SLATER & GORDON: Mulls Closing Offices in Britain to Cut Costs SLATER & GORDON: Maurice Blackburn Extends Claim Period STEMTECH PTY: Placed Into Liquidation TURTON VIEW: First Creditors' Meeting Set For April 15 C H I N A EHI CAR: Fitch Says Growth Targets May Be Better for Profile EVERGRANDE REAL: S&P Lowers CCR to 'B-'; Outlook Negative GLORIOUS PROPERTY: S&P Affirms 'CCC' CCR; Outlook Negative WINSWAY ENTERPRISES: HK Scheme Creditors' Meeting Set For May 3 H O N G K O N G ARISING INTERNATIONAL: Casino Cruise Ship May Face Bankruptcy I N D I A A LITTLE WORLD: CRISIL Cuts Rating on INR150MM LT Loan to B+ ABIR INFRASTRUCTURE: ICRA Assigns 'D' Rating to INR186.05cr Loan ACCORD UDYOG: CRISIL Assigns 'C' Rating to INR60MM Cash Loan ADVAITH BIO: ICRA Assigns B- Rating to INR3.0cr Term Loan AERCOMFORT PRIVATE: CRISIL Assigns B Rating to INR37.5MM Loan AINAJ INDUSTRIES: CRISIL Assigns B- Rating to INR170MM Loan AMBE PROPTECH: CRISIL Assigns 'B' Rating to INR250MM LT Loan B.S.R. BUILDERS: CRISIL Assigns D Rating on INR100MM Term Loan BALAJI OVERSEAS: ICRA Reaffirms 'B' Rating on INR24cr Loan BANGALORE INSTITUTE: ICRA Assigns 'B' Rating to INR9.95cr Loan C.G. ISPAT: ICRA Assigns B+ Rating to INR28.79cr Term Loan CHHATRAPATI SAMBHAJI: ICRA Assigns B+ Rating to INR26.02cr Loan CHOUKSEY ENTERTAINMENT: ICRA Suspends B/A4 Rating on INR6cr Loan DAYANAND TEXTILE: ICRA Suspends B+ Rating on INR7.44cr Loan DIAMOND CONSTRUCTION: ICRA Suspends B+ Rating on INR12cr Loan GLOBAL ART: ICRA Suspends B+ Rating on INR13cr Bank Loan HIM CABLEWAYS: ICRA Suspends B Rating on INR6.82cr Loan HITECH HYDRAULICS: ICRA Assigns B+ Rating to INR3.95cr Loan JANAKI COTTON: ICRA Suspends B- Rating on INR7.10cr Term Loan KOSHIYA ENTERPRISE: CRISIL Cuts Rating on INR150MM Term Loan to D KSP INDUSTRIES: Weak Financial Strength Cues ICRA SP 3D Grading LAXMI RICE: ICRA Reaffirms B Rating on INR14.80cr LT Loan M.V. WAGHADKAR: ICRA Suspends B+ Rating on INR8.50cr LT Loan MAHESHWARI FABTEX: CRISIL Assigns B+ Rating to INR57.5MM Loan MALWA AUTO: CRISIL Reaffirms B+ Rating to INR80MM Cash Loan MITTAL COT: ICRA Reaffirms B Rating on INR4.0cr Cash Loan MUNEER ENTERPRISES: ICRA Suspends B+ Rating on INR7.25cr Loan NAAZ LIFESTYLE: ICRA Suspends B- Rating on INR6.0cr Term Loan NESTOR PHARMACEUTICALS: ICRA Reaffirms C+ Rating on INR51cr Loan OM SAI: CRISIL Raises Rating on INR19MM LT Loan to B+ OSWAL KNIT: ICRA Suspends C/A4 Rating on INR38cr Bank Loan P. DASARATHARAMA: ICRA Assigns B+ Rating to INR2.0cr Loan P.K. & COMPANY: ICRA Suspends B+ Rating on INR27cr Loan PADMAVATHI COTTON: ICRA Assigns B Rating to INR11cr LT Loan PARK CONTROLS: ICRA Withdraws B+ Rating on INR5cr Loan POOJA SPONGE: CRISIL Reaffirms D Rating on INR90MM Cash Loan PRAHLADRAI & CO: ICRA Suspends D Rating on INR6.45cr Loan RADIANT LUBES: CRISIL Reaffirms B Rating on INR137.5MM Loan RAMNANDI ESTATE: CRISIL Cuts Rating on INR50.4MM Cash Loan to D RELCOM TECHNOLOGY: ICRA Reaffirms B Rating on INR6.75cr Loan RELIABLE INFRASTRUCTURE: CRISIL Cuts Rating on INR50MM Loan to D ROHIT FABTEX: ICRA Reaffirms B+ Rating on INR7.0cr LT Loan RUKMANI INFRA: ICRA Assigns D Rating to INR22cr Bank Loan S.R. CHADDHA: ICRA Suspends B+ Rating on INR19.50cr Loan S.V. ELECTRONICS: CRISIL Reaffirms B+ Rating on INR90MM Loan SHRI SIDDHBALI: ICRA Assigns 'B' Rating to INR5.81cr Loan SHYAM FIBERS: CRISIL Reaffirms 'B' Rating on INR40MM Cash Loan SREE GEETHANJALI: ICRA Assigns B+ Rating to INR8.75CR ST Loan SURBHI FERRO: ICRA Reaffirms B Rating on INR11.30cr Loan SWASTIK TRADERS: ICRA Reaffirms B+ Rating on INR3.0cr LT Loan SWASTIKA PRINTING: CRISIL Assigns B+ Rating to INR65MM Cash Loan TANMAY POLYFILMS: ICRA Assigns B- Rating to INR3.50cr Loan TEAM ENGINEERS: ICRA Reaffirms B- Rating on INR6.25cr Loan THANGA PRATAPH: ICRA Suspends C+ Rating on INR5.0cr Term Loan U.S. IMPEX: CRISIL Reaffirms 'B' Rating on INR87.5MM Cash Loan UMA RANI: ICRA Assigns C+ Rating to INR3.15cr Term Loan ZERO MICROFINANCE: CRISIL Cuts Rating on INR150MM Loan to B+ M A L A Y S I A 1MALAYSIA: Board Offers to Resign After Inquiry Calls for Probe N E W Z E A L A N D FELTEX CARPET: 2004 Prospectus Omitted Key Info, Says Class Suit MANCHESTER UNITY: S&P Lowers ICR to 'B+'; Outlook Negative S O U T H K O R E A HANJIN SHIPPING: Woes Cause Korean Air Bond Issue Failure V I E T N A M VIETNAM EXPORT: S&P Puts 'B+' CCR on CreditWatch Negative X X X X X X X X * BOND PRICING: For the Week April 4 to April 8, 2016 - - - - - ================= A U S T R A L I A ================= ARRIUM LTD: Liberal Minister Rules Out Offering Bailout ------------------------------------------------------- ABC News reports that a senior federal Liberal minister has effectively ruled out offering Arrium Limited a bailout. Immigration Minister Peter Dutton insisted the Government did not offer financial aid to Qantas and SPC Ardmona, the report says. He said the Government would not risk spending millions of dollars of taxpayers' money on Arrium despite a more positive outlook from administrators Grant Thornton over the weekend, according to ABC News. "For governments to take an equity stake or to try and pick winners -- as Labor governments at a state and federal level have proven over many, many years -- that is a fraught exercise, and ultimately you put at risk taxpayers' money," the report quotes Mr Dutton as saying. According to ABC News, the company has debts of more than $4 billion and was placed into voluntary administration last week, putting more than 8,000 jobs at risk nationwide. ABC News relates that the administrators said in a statement over the weekend they would work with the South Australian Government's Steel Taskforce and that they believed there was "strong support and commitment" to ensure Whyalla's continued operations. ABC News says the South Australian Opposition has called for the Government to conduct an audit to find out how much steel has been sourced locally for major projects over the past 10 years. The Opposition's Corey Wingard said more should be done to ensure major projects use Australian steel rather than cheap imports, adds ABC News. Arrium Limited (ASX:ARI) -- http://www.arrium.com/-- is an Australia-based mining and materials company. The Company is engaged in mining and supply of iron ore and steelmaking raw materials; manufacture and supply of mining consumable products; manufacture and distribution of steel products, and recycling of ferrous and non-ferrous scrap metal. Its segments include Mining, Mining Consumables, Steel and Recycling. Its Mining segment exports hematite iron ore and supplies both pelletized magnetite iron ore and hematite lump iron ore. Its Mining Consumables segment consists of Moly-Cop grinding media business, Waratah steel mill and Altasteel steel mill. Its Mining Consumables segment supplies various mining consumables, such as grinding media, wire ropes and rail wheels. Its Steel segment manufactures billet and distributes steel and metal products, including structural steel selections, steel plate, angels, channels, reinforcing steel and carbon products. Its Recycling segment supplies steelmaking raw materials. Said Jahani, Paul Andrew Billingham, Michael Gerard McCann and Matthew James Byrnes of Grant Thornton have been appointed to act as Voluntary Administrators for each of the Relevant Companies. ARRIUM LTD: Asset Values Damaged by Administration -------------------------------------------------- Simon Evans at The Sydney Morning Herald reports that Arrium Limited's administrator has told the South Australian government it will be consulted on any major decisions regarding its pursuit of a company-wide rescue for the embattled company, which the firm says is possible only if a restructure of the Whyalla steelworks can be achieved. SMH relates that South Australian Treasurer Tom Koutsantonis, whose government faces major political and economic fallout if an eventual decision is made to shut down the Whyalla steelworks resulting in the loss of 1,600 jobs in the regional city, said administrator Grant Thornton has told him the government has a "seat at the table" on any big decisions. "Nobody is going to do anything without us knowing about," Mr Koutsantonis told The Australian Financial Review on April 10, SMH relays. But he conceded future buyers of Arrium would now be able to acquire the company at a lower price than if it hadn't been put into administration, with private debt-holders in the United States and international banks having argued against a push by the big four Australian banks for a voluntary administration because of the damage to value, according to SMH. "I think the company has lost value," the report quotes Mr Koutsantonis as saying. "I think it was a mistake. But we are where we are." SMH says private equity buyers have begun to sharpen their buyout proposals in anticipation of a break-up of the company and asset firesale. However, Paul Billingham, the lead administrator from Grant Thornton, said on April 11 the main priority was to restructure the Whyalla steelworks and the rest of the Australian business because this was the best chance of securing a company- wide recapitalization, SMH reports. According to the report, Grant Thornton would use large amounts of the work already undertaken by Arrium management and a Steel Task Force set up by the South Australian government in November. "Our aim is to successfully restructure the Australian mining and steel business, starting with Whyalla, as this will increase the value of Arrium, significantly improving the return to Arrium's creditors and encouraging the prospect of a group-wide recapitalisation," Mr Billingham, as cited by SMH, said. He said the administrators wanted to "swiftly bring" together all the parties that had worked on those improvement proposals, which had already been under way, SMH relays. SMH relates that the federal government, too, would be invited to work on those proposals. The Steel Task Force is headed by Bruce Carter, a former insolvency expert with Ferrier Hodgson who is also a director of the Bank of Queensland and casino group Sky City Entertainment, says SMH. SMH notes that a raft of restructuring and buyout proposals is now expected to be reworked by potential private equity buyers, some of whom submitted offers for one of Arrium's big overseas businesses, mining consumables division Moly-Cop, in September. According to SMH, US private equity firms Argand Partners and Cerberus Capital Management are understood to be working together on a proposal, and the London-based Pamploma Capital Management private equity fund is also eyeing the business. TPG's United States fund, and Blackstone also submitted bids in September for Moly-Cop at a time when the Arrium board had set a price tag of $1.75 billion for Moly-Cop, and may return again, the report states. SMH recalls that Blackstone's credit arm GSO Capital Partners subsequently made a $1.2 billion refinancing proposal on February 22 but the Arrium banking syndicate owed $2.8 billion, and spurned that proposal on April 4 resulting in an ASX trading halt and the decision by the Arrium board to appoint Grant Thornton administrator. Arrium Limited (ASX:ARI) -- http://www.arrium.com/-- is an Australia-based mining and materials company. The Company is engaged in mining and supply of iron ore and steelmaking raw materials; manufacture and supply of mining consumable products; manufacture and distribution of steel products, and recycling of ferrous and non-ferrous scrap metal. Its segments include Mining, Mining Consumables, Steel and Recycling. Its Mining segment exports hematite iron ore and supplies both pelletized magnetite iron ore and hematite lump iron ore. Its Mining Consumables segment consists of Moly-Cop grinding media business, Waratah steel mill and Altasteel steel mill. Its Mining Consumables segment supplies various mining consumables, such as grinding media, wire ropes and rail wheels. Its Steel segment manufactures billet and distributes steel and metal products, including structural steel selections, steel plate, angels, channels, reinforcing steel and carbon products. Its Recycling segment supplies steelmaking raw materials. Said Jahani, Paul Andrew Billingham, Michael Gerard McCann and Matthew James Byrnes of Grant Thornton have been appointed to act as Voluntary Administrators for each of the Relevant Companies. HIGHROCK AUST: First Creditors' Meeting Set For April 15 -------------------------------------------------------- Barry Kenneth Hamilton of Barry Hamilton & Associates was appointed as administrator of Highrock Aust Pty Ltd on April 5, 2016. A first meeting of the creditors of the Company will be held at Level 1, 63 Salamanca Place, in Hobart, on April 15, 2016, at 4:00 p.m. Australian Eastern Standard Time. SLATER & GORDON: Mulls Closing Offices in Britain to Cut Costs -------------------------------------------------------------- Kylar Loussikian at The Australian reports that Slater & Gordon is looking at closing offices, streamlining its British operations and offloading the Accident Claims Helpline business it acquired from Quindell last year. The Australian relates that the proposals, the first to emerge as the troubled law firm continues to negotiate with financiers, were reported on April 8 in the British legal trade press, citing sources within the business. According to the report, the firm's banking syndicate, led by Westpac, has given the company until the end the month to reach an agreement on restructuring or face the early repayment of more than AUD700 million in loans. The Australian quotes a Slater & Gordon spokeswoman, who declined to detail the specific proposals, as saying that: "Under the reorganisation plan, the majority of our sites will remain open. "Where sites are impacted because the site may be closed or certain practice areas will be impacted, there will be a staged consultation process across the country (Britain). "We believe that these proposed changes will ultimately deliver benefits to our clients . . . the reorganisation will not impact either our service to existing clients nor our ability to service future clients." It is expected the majority of changes will impact the British business, which includes operations acquired from Quindell last year in a AUD1.23 billion deal, the report notes. Slater & Gordon posted a AUD958.3 million loss for the six months ending December, with a AUD814.2 million writedown of goodwill associated with the February 2015 purchase, The Australian discloses. According to the Australian, Britain's Law Society Gazette reported discussions were underway over the future of offices in Bristol, Halifax, Newcastle and Liverpool, while personal injury departments in Birmingham and London were also considered possible closure opportunities. The Australian says the firm is also moving to scale back work on thousands of noise-induced hearing loss cases acquired from Quindell, a large proportion of which appear to have stretched far longer than the two years considered necessary for settlement. Those hearing-loss cases were acquired on a conditional basis, sharing profits from settlements and resolutions with Quindell to mitigate the risk of non-performance, the report adds. Sources separately told The Weekend Australian that relations with some members of the banking syndicate -- which includes National Australia Bank, Macquarie and Citi -- are "frosty, to say the least". Part of the restructuring agreement may include a slowdown in the accumulation of cases as the law firm shifts focus to the resolution of existing matters in an attempt to raise cash, the report says. The company recorded a negative cash flow of AUD62.5 million for the first-half of this financial year. Shares fell another 2% on April 8 to close at 24.5c per share, a 70% decline since December, according to the Australian. As reported in the Troubled Company Reporter-Asia Pacific on March 14, 2016, The Sydney Morning Herald said struggling listed law firm Slater & Gordon has suffered another blow after the Australian Securities Exchange dumped the stock from its top 200 list. SMH said the removal of Slater & Gordon from the ASX 200 is significant because it means some of the index funds which are required under their self-imposed mandates to hold shares in ASX 200 stocks will exit the stock. According to the report, the law firm is in a fight for survival following a horror 2015 that saw its market capitalisation plummet from more than AUD2.7 billion to AUD121.6 million on March 11 following an accounting scandal in its UK arm and weaker-than-expected growth in both its British business and its Australian arm. Slater & Gordon has until April 30 to satisfy its bankers it can remain as a viable organization, SMH relayed. Its financial advisers from insolvency firm McGrath Nicol are delivering weekly cash-flow updates to the firm's bankers, the report stated. Australia-based Slater & Gordon Limited (ASX:SGH) -- https://www.slatergordon.com.au/ -- is engaged in operating legal practices in Australia and the United Kingdom. The Company operates through segments, including Slater and Gordon Australia (AUS), Slater and Gordon UK (UK) and Slater Gordon Solutions (SGS). The AUS segment conducts a range of legal services within a geographical area of Australia. The AUS segment also includes investments, borrowing and capital rising activities. The Company's UK segment conducts a range of legal services in in the United Kingdom. The UK segment also includes the investments in SGS. The SGS segment offers legal services relating to road traffic accidents, employee liability and noise, including hearing loss. The SGS segment also provides complementary services in health and motor services. The Company's business and specialized litigation services include commercial, estate and professional negligence litigation and class actions. SLATER & GORDON: Maurice Blackburn Extends Claim Period ------------------------------------------------------- Sarah Danckert at The Sydney Morning Herald reports that law firm Maurice Blackburn has expanded the claim period for its planned class action against Slater & Gordon to allow more aggrieved shareholders to recoup funds. SMH relates that the class action law firm, which floated its action against its across-town rival in December, has also secured litigation funder International Litigation Partners to back the action. According to SMH, shareholders who purchased shares between April 1, 2015 and February 28, 2016 are able to participate in the action. SMH says Maurice Blackburn had previously set a December 16, 2015 close date but has extended the period to take in possible losses suffered prior to Slater & Gordon's February 29 announcement of its half-year results. Those results were marred by a swingeing AUD876 million of write- down, the majority of which was associated with the value of Slater & Gordon's Quindell business, the report states. SMH says the smaller ACA Lawyers is also preparing a class action against Slater & Gordon, and has already secured litigation funding for its action. According to the report, Maurice Blackburn's national head of class actions, Andrew Watson, said Slater & Gordon shareholders were suitably aggrieved. "Institutional and retail investors in Slater & Gordon that want the best chance to recover the maximum possible now have a clear choice to go with the nation's leading class action law firm Maurice Blackburn, backed by what we believe are the best funding rates available," the report quotes Mr. Watson as saying. "More than AUD2 billion dollars in shareholder value has been lost in a matter of months. To shock the market on multiple occasions is not just bad luck. It raises serious questions about internal processes and about the quality and timing of information released to the market." Slater & Gordon's February write down led to its banks requiring weekly updates on the firm's cash flow position, says SMH. Slater & Gordon has until the end of this month to convince its bankers that it is back on track financially, the report states. Slater & Gordon declined to comment, adds SMH. As reported in the Troubled Company Reporter-Asia Pacific on March 14, 2016, The Sydney Morning Herald said struggling listed law firm Slater & Gordon has suffered another blow after the Australian Securities Exchange dumped the stock from its top 200 list. SMH said the removal of Slater & Gordon from the ASX 200 is significant because it means some of the index funds which are required under their self-imposed mandates to hold shares in ASX 200 stocks will exit the stock. According to the report, the law firm is in a fight for survival following a horror 2015 that saw its market capitalisation plummet from more than AUD2.7 billion to AUD121.6 million on March 11 following an accounting scandal in its UK arm and weaker-than-expected growth in both its British business and its Australian arm. Slater & Gordon has until April 30 to satisfy its bankers it can remain as a viable organization, SMH relayed. Its financial advisers from insolvency firm McGrath Nicol are delivering weekly cash-flow updates to the firm's bankers, the report stated. Australia-based Slater & Gordon Limited (ASX:SGH) -- https://www.slatergordon.com.au/ -- is engaged in operating legal practices in Australia and the United Kingdom. The Company operates through segments, including Slater and Gordon Australia (AUS), Slater and Gordon UK (UK) and Slater Gordon Solutions (SGS). The AUS segment conducts a range of legal services within a geographical area of Australia. The AUS segment also includes investments, borrowing and capital rising activities. The Company's UK segment conducts a range of legal services in in the United Kingdom. The UK segment also includes the investments in SGS. The SGS segment offers legal services relating to road traffic accidents, employee liability and noise, including hearing loss. The SGS segment also provides complementary services in health and motor services. The Company's business and specialized litigation services include commercial, estate and professional negligence litigation and class actions. STEMTECH PTY: Placed Into Liquidation ------------------------------------- Cliff Sanderson at Dissolve.com.au reports that StemTech Pty Ltd has been placed into liquidation. Ian Alexander Currie of BRI Ferrier has been appointed liquidator of the company on March 4, 2016. According to the report, customers may not get any refund and the company is likely to face a significant shortfall. Brisbane-based StemTech Pty Ltd stored umbilical cord blood in its facility. The blood has stem cells which can be utilised to treat a number of diseases. TURTON VIEW: First Creditors' Meeting Set For April 15 ------------------------------------------------------ Hugh Sutcliffe Martin of Bernardi Martin was appointed as administrator of Turton View Pty Limited, trading as The Bedford Hotel, on April 6, 2016. A first meeting of the creditors of the Company will be held at Bernardi Martin, 195 Victoria Square, in Adelaide South Australia on April 15, 2016, at 10:00 a.m. ========= C H I N A ========= EHI CAR: Fitch Says Growth Targets May Be Better for Profile ------------------------------------------------------------ Fitch Ratings says Chinese car rental company eHi Car Services Limited's (eHi; BB-/Stable) more moderate growth targets following its 2015 results announcement may be positive for its credit profile because it will reduce cash outflow for fleet expansion amid increased competition from ride-sharing apps. In 2015, eHi's EBITDA margin (excluding gains and losses on disposals) rose to 39% from 33% the previous year. eHi's EBITDA margin came very close to the 40% level that Fitch sees as the minimum the company has to sustain to maintain its current rating. The wider margin was driven by improvement in operational efficiency, as its fleet size per location increased, staff numbers per vehicle decreased, and insurance costs declined. "For 2016, the company plans to expand its fleet by 50% to 57,000 cars by year-end, and expects 50% growth in revenue. We expect the larger operating scale to help drive EBITDA margin to above 40% over the next two years." "The company's guidance for 2016 growth is slightly slower than our previous expectations, although it is in line with recent industry trends. eHi's main competitor, the larger CAR Inc. (CAR; BB+/Stable), recently reported softer 4Q15 revenue and revised down its plans for new car additions in 2016. It did so due to the deceleration in demand growth and increased competition from ride-sharing apps, such as Didi Taxi and Uber. We believe the more modest expansion plans among industry leaders are positive for the long-term health of the car rental industry as they favour margin preservation over costly top-line growth." eHi has a strong presence in the high-end market and a well- established reputation in providing car services to corporate customers. Revenue from the eHi's car services segment accounted for 24% of total revenue in 2015 and will continue to serve as a foundation for its growth. EVERGRANDE REAL: S&P Lowers CCR to 'B-'; Outlook Negative --------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate credit rating on China-based developer Evergrande Real Estate Group Ltd. to 'B-' from 'B+'. The outlook is negative. S&P also lowered its long-term Greater China regional scale rating on the company to 'cnB-' from 'cnBB-'. At the same time, S&P lowered its long-term issue rating on the company's senior unsecured notes to 'CCC+' from 'B'. S&P also lowered its Greater China regional scale rating on the notes to 'cnCCC+' from 'cnB+'. S&P downgraded Evergrande because the company's financial position deteriorated more seriously than S&P expected in 2015, and it do not anticipate any significant improvement over the next 12 months. Evergrande's leverage has weakened materially. Borrowings surged in 2015, with total debt of Chinese renminbi (RMB) 370 billion (including perpetual capital instruments), compared with RMB212 billion in 2014. The debt-to-EBITDA ratio rose to 15x at the end of Dec. 31, 2015, from 9.1x a year earlier. EBITDA interest coverage also dropped to 1.0x compared with 1.3x in 2014. S&P expects Evergrande's aggressive growth appetite and debt- funded expansion to keep its leverage and interest coverage at a very weak level for a 'B' rating category over the next 12 months. The company continued to incur large land payments of RMB68.7 billion in 2015, compared with RMB66.2 billion in 2014. S&P expects land acquisitions to remain high in 2016, given that Evergrande needs to replenish and optimize its land bank. S&P notes land acquisitions could be costly in tier-one and tier-two cities. Moreover, the company's construction costs are likely to rise to more than RMB90 billion in 2016 to support its fast- growing contracted sales, up from RMB87.4 billion in 2015. S&P believes Evergrande has limited control over leverage. Over the past three years, the company has been expanding through ad- hoc merger and acquisitions (M&A) and above-budget land acquisitions. Evergrande has also expanded into various non-core business in which it has limited experience. S&P believes management has a high tolerance towards and may perform significant debt-funded acquisitions that could significantly increase the company's leverage. Since June 2015, Evergrande has spent a total of RMB61 billion on acquisitions from CC Land Holdings Ltd., China Estates Holdings Ltd., Sino Land Co. Ltd., New World Development Co. Ltd., and Chow Tai Fook Enterprises Ltd. These acquisitions have significantly worsened the company's ratios and materially deviate from S&P's base-case forecast. Therefore, S&P views such event risk as significant and the company's financial policy as negative. The downgrade also reflects the risks stemming from Evergrande's increasing refinancing requirements and tightening liquidity. The company's short-term borrowing increased significantly to RMB159 billion in 2015 from RMB80 billion in 2014, representing about 43% of the total debt. Its perpetual capital instruments rose to RMB76 billion in 2015 from RMB53 billion a year earlier. In S&P's view, Evergrande's increasing reliance on short-term funding and alternative funding likely indicate its constrained access to common long-term financing and weakening credit standing in the market. While the company's strong sales execution and large unrestricted cash balance offset some of the liquidity risks, S&P believes the company will continue to rely on a favorable market and credit conditions to roll over its debt. S&P anticipates that Evergrande can maintain its large portfolio of geographically diversified projects, largely stable profitability, and strong sales execution. The company achieved RMB201.3 billion in contracted sales in 2015, up 53% year on year. S&P expects Evergrande to achieve contracted sales of RMB220 billion-RMB250 billion in 2016, given the company's sizable salable resources of RMB480 billion. Its first quarter sales reached RMB66 billion. Its gross margin was also largely intact in 2015 at 28.1% versus 28.8% in 2015. S&P therefore maintains its assessment of a satisfactory business risk profile. S&P's base case assumes: -- Evergrande's property sales are likely to grow about 10%-20% in 2016. -- Revenue will grow by 20%-25% in 2016, supported by strong sales growth in 2015. -- The company's gross margin will slightly deteriorate to 27%-28% in 2016 because of rising land costs. The EBITDA margin will stabilize at 17%-18%, from 18.4% in 2015. -- Evergrande will remain aggressive and spend about RMB75 billion-RMB80 billion in cash in 2016 to acquire land and for other capital expenditure. Based on these assumptions, S&P arrives at these credit measures for the next 12 months: -- The debt-to-EBITDA ratio will weaken to 15x-17x, compared with 15x in 2015; and -- The EBITDA-to-interest ratio will decline to 0.8x-1.0x, compared with 1.0x in 2015. The negative outlook reflects S&P's expectation that Evergrande will have very high leverage, weak debt servicing, and tight liquidity position over the next 12 months. The outlook also reflects the prospects that the financial conditions will not improve over the same period because of the company's continued high committed capital spending and aggressive expansion appetite. S&P could lower the rating if: -- Evergrande's liquidity further weakens. This could happen if the company's access to funding deteriorates or it appears likely to breach material covenants. A material decline in unrestricted cash or a substantial increase in short-term borrowings and alternative funding or increasing funding cost could also indicate such deterioration. Evergrande continues to aggressively and materially increase its borrowings, such that its debt-to-EBITDA ratio does not improve significantly or EBITDA interest coverage remains below 1x. S&P could revise the outlook to stable if: (1) Evergrande can strengthen its operating cash flow and liquidity and improve its debt maturity profile; or (2) the company improves its leverage and interest coverage. This could happen if Evergrande adopts a more cautious expansion strategy and a more conservative financial policy. The EBITDA interest coverage remaining above 1x would indicate such improvement. GLORIOUS PROPERTY: S&P Affirms 'CCC' CCR; Outlook Negative ---------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'CCC' long-term corporate credit rating on China-based property developer Glorious Property Holdings Ltd. The outlook is negative. S&P also affirmed its 'CCC-' long-term issue rating on the company's senior unsecured notes. At the same time, S&P affirmed its 'cnCCC' long-term Greater China regional scale rating on Glorious and S&P's 'cnCCC-' long-term Greater China regional scale rating on the notes. S&P then withdrew all the ratings at the company's request. The affirmed rating prior to the withdrawal reflected S&P's view that Glorious' liquidity risk remains high, because of its substantial short-term borrowings and low cash balance. This is even though the company fully repaid the senior notes due Oct. 25, 2015, and made the coupon payment of US$26.5 million in late March 2016 for the senior unsecured notes due 2018. As of June 30, 2015, Glorious has total short-term borrowings of about Chinese renminbi (RMB) 22 billion, compared with its unrestricted cash balance of only RMB205 million. For the 10 months ended Oct. 31, 2015, the company's contracted sales were RMB4.7 billion. Glorious did not disclose its contracted sales for full-year 2015. S&P estimated the company to have achieved contracted sales of about RMB7 billion in 2015. S&P remains highly uncertain if lenders will continue to roll over their loans when due, despite the fact that the majority of Glorious' borrowings are secured. As disclosed in its interim report of 2015, Glorious has some principal and interest payments overdue on bilateral borrowings. This also resulted in the reclassification of a large portion of the company's non-current borrowings as current debt. However, S&P understands that Glorious had since remedied such amounts with repayments, extensions, or waivers. S&P anticipates that a similar situation may have arisen again at the end of 2015, given the company's weak financial performance. In S&P's opinion, this increases the risk that lenders may request immediate repayment, which may further stress the company's existing weak liquidity position. On April 1, 2016, Glorious announced it would delay the publication of the 2015 result and also possibly delay dispatching the 2015 annual report. The company's shares have also suspended trading on the Hong Kong stock exchange. S&P's assessment of Glorious' management and governance as weak has continued to deteriorate as the company has not produced timely information disclosure. In addition, Glorious has shown poor internal controls, with repeated occurrence of overdue amounts since late 2014. The negative outlook at the time of withdrawal reflected S&P's expectation that Glorious is facing very high liquidity risk, given the company's substantial amount of short-term borrowings, low unrestricted cash balance, and weak cash generation from slow sales. The outlook also reflected the uncertainties over the refinancing of the company's substantial borrowings. WINSWAY ENTERPRISES: HK Scheme Creditors' Meeting Set For May 3 --------------------------------------------------------------- By Orders dated March 21, 2016, the High Court of the Hong Kong Special Administrative Region has directed that a meeting of Scheme Creditors of Winsway Enterprises Holdings Limited be convened for the purpose of considering and, if thought fit, approving (with or without modifications) a scheme of arrangement pursuant to sections 673 and 674 of the Companies Ordinance (Cap 622) of Hong Kong proposed between the Company and the Scheme Creditors. The Scheme meeting will be held at the offices of Stephenson Harwood, 18th floor, United Centre, 95 Queensway, Admiralty, Hong Kong, at 10:00 a.m. on May 3, 2016. Scheme Creditors may vote in person at the Scheme Meeting or they may appoint another person, whether a Scheme Creditor or not (including the Chairman) as their proxy to attend and vote in their place. By its Order, the Court has appointed Cao Xinyl or, in her absence, a suitable alternative nominated by the Company, to act as Chairperson of the Scheme Meetings and has directed the Chairperson to report the result of the Scheme Meetings to the Court. The Scheme will be subject to the subsequent approval of the Court and to the fulfillment or waiver (as applicable) of the conditions of the Scheme as set out in the Explanatory Statement. The petition seeking sanction of the Hong Kong Scheme from the High Court of the Hong Kong Special Administrative Region will be heard at 10:00 a.m. (Hong Kong time) on May 17, 2016. All Scheme Creditors are entitled to attend the sanction hearing in Hong Kong in person or through counsel to support or oppose the sanctioning of the scheme. Winsway Enterprises Holdings Limited, together with its subsidiaries, processes and trades in coking coal and other products in the People's Republic of China and internationally. The company manages and operates coal processing plants. It also provides logistics services. The company was formerly known as Winsway Coking Coal Holdings Limited and changed its name to Winsway Enterprises Holdings Limited in June 2014. Winsway Enterprises Holdings Limited was incorporated in 2007 and is headquartered in Beijing, the People's Republic of China The Chapter 15 case, filed in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 16-10833) on April 6, 2016, is assigned to Judge Martin Glenn. ================ H O N G K O N G ================ ARISING INTERNATIONAL: Casino Cruise Ship May Face Bankruptcy ------------------------------------------------------------- The South China Morning Post reports that the owner of a casino cruise ship, which is all at sea following a wage dispute with 46 crew members, claims he is the biggest casualty of the nautical tug-of-war. Mr Wong, who identified himself as the representative of Arising International Holdings Ltd, which owns the New Imperial Star, told the Post he had spent HK$20 million to get the vessel through a safety inspection but to no avail -- even after a passage of seven months. Mr Wong added the worst case scenario was for the company to declare itself bankrupt and put the ship up for sale, the Post says. "Our investors are devastated and suffering a great loss," the report quotes Mr Wong as saying. "We really don't want to see [bankruptcy] happen because, by that stage, the ship will be sold very cheaply." According to the Post, the company plans to hire a new shipmaster to help the vessel, which failed an inspection by the Port State Control last November, set sail again. Desperately seeking new investors from Beijing, Mr. Wong clarified that Sun Junhao Ltd was the employer of the crew as it rents the ship for casino cruise business. A spokesman for Sun Junhao, however, insisted it was not involved in the owner's business, the report states. The Post says the tenant is in dire financial straits as the casino cruise industry has been hit hard by a drastic drop in the number of mainland tourists, as well as Beijing's crackdown on corruption and the gaming business. According to the report, the crew on board, of whom 20 were from Ukraine, 18 from Myanmar and eight from the mainland, are planning to apply for legal aid this week and take their employer to a local court for the five-plus months of unpaid wages, ranging from US$1,300 to US$6,500 per month, at a total of about HK$3 million. The Post reports that Ukrainian shipmaster Valeriy Lyzhyn, 63, aboard the ship since last August, said they had been suffering from an unstable supply of water, food and energy. "I feel hopeless . . . I don't believe my ship owner. I hope the legal aid can help the crew members," the report quotes Mr. Lyzhyn as saying. "My greatest concern is about wages, food and repatriation of the crew members." Arising International bought the vessel, now registered in the Republic of Palau, for more than HK$100 million in 2012 and later rented it out to Sun Junhao Ltd at a monthly fee of HK$2 million. Mr. Wong added that during better times, the daily turnover of the ship could be as high as HK$10 million with a daily attendance of more than 400 passengers, but last year it had dwindled to just a few dozen, the Post reports. ========= I N D I A ========= A LITTLE WORLD: CRISIL Cuts Rating on INR150MM LT Loan to B+ ------------------------------------------------------------ CRISIL has downgraded its rating on the bank facility of A Little World Private Limited (ALW, a part of the ALW group) to 'CRISIL B+/Stable' from 'CRISIL BB-/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term 150 CRISIL B+/Stable (Downgraded Bank Loan Facility from 'CRISIL BB-/Stable') The downgrade reflects deterioration in ALW group's business profile in 2015-16 (refers to financial year April 1 to March 31) resulting from replacement of ALW group's electronic technology by SBI for its business correspondent services. This has resulted in a decline in revenue to INR500-550 million in 2015-16 from INR630 million in 2014-15. Furthermore, there has been a deterioration in the net worth of the company over the past years owing to large losses on account of high fixed costs associated with software development and maintenance leading to a weak capital structure reflected in a gearing of around 49 times as on March 31 2015. CRISIL believes the ability of the management to venture into new business models using its technology platform thereby leading to improvement in business risk profile will remain a key rating sensitivity factor. The rating reflects the ALW group's strong relationship with key stakeholders coupled with an established network and market reach. These strengths are partially offset by the weak financial risk profile because of low net-worth, coupled challenges in the business correspondence business. For arriving at the rating, CRISIL has consolidated the business and financial risk profiles of ALW and Zero Microfinance and Savings Support Foundation (ZMF). This is because both entities, together referred to as the ALW group, are managed by the same promoters and have common business. There is large financial support extended by ALW to ZMF. Both entities are expected to be merged over the near to medium term. Outlook: Stable CRISIL believes the ALW group will continue to benefit from the strong relationship with key stakeholders and established market reach. The outlook may be revised to 'Positive' if the group overcomes the challenges in the business correspondence segment and sustains its operation profitability along with large capital infusion leading to improvement in the financial risk profile. Conversely, the outlook may be revised to 'Negative' in case of deterioration in its earning profile thereby resulting in further erosion in its capitalization. About the Group ALW, incorporated in 2000, is engaged in developing and providing licensed technology for enabling smart cards and other electronic technology-based commerce, electronic-identity systems, and trading and delivery systems. ZMF operates as one of the largest business correspondents for State Bank of India (SBI, rated 'CRISIL AAA/ FAAA/Stable/CRISIL A1+') and is engaged in the extension of banking services in the rural and urban areas of India where banking penetration is limited. The group is managed and operated by Mr. Anurag Gupta. ABIR INFRASTRUCTURE: ICRA Assigns 'D' Rating to INR186.05cr Loan ---------------------------------------------------------------- ICRA has assigned a long term rating of [ICRA]D to the INR96.95 crore fund based limits, INR186.05 crore non fund based limits, INR50.86 crore term loans and INR2.50 crore unallocated limits of Abir Infrastructure Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based limits 96.95 [ICRA]D assigned Non fund based limits 186.05 [ICRA]D assigned Term Loans 50.86 [ICRA]D assigned Unallocated limits 2.50 [ICRA]D assigned The assigned rating takes into account delays in servicing of debt obligations by AIPL owing to the company's stretched liquidity position. The liquidity position has been adversely impacted by delay in recovery of outstanding receivables and slowdown in execution of major projects of the company. The rating is also constrained by the high client concentration risk faced by the company on account of revenue dependence on few major projects. Moreover, increase in the total debt of the company in FY2015 coupled with decline in its profitability has led to deterioration in debt coverage indicators. Nevertheless, ICRA has taken note of AIPL's experienced management and its decade long presence in the hydel power sector. Moreover, AIPL has been diversifying its order book with execution of projects in other sectors such as thermal power, oil tankages and transmission lines. AIPL is a private limited company, promoted by Mr. K. Gnyandeep and Mr. Y. Y. Butchi Babu in 2005. The company is engaged in the construction activities primarily related to hydro power and thermal power projects. The major projects in the order book comprise (as on March 31, 2015) Upper Demwe Hydro Power project (INR4779.6 crore), Bhavanpadu Thermal Power project (INR2215.7 crore), Singhitarai Thermal Power project (INR532.1 crore), Coastal Oil & Gas tankage project (INR468.5 crore) and Shaft Sinkers construction project (INR455.2 crore). Recent Results In FY2015, AIPL registered an operating income of INR854.8 crore and profit after tax (PAT) of INR20.2 crore, as against operating income of INR1115.5 crore and PAT of INR41.2 crore in FY2014. ACCORD UDYOG: CRISIL Assigns 'C' Rating to INR60MM Cash Loan ------------------------------------------------------------ CRISIL has revoked the suspension of its rating on the long-term bank facility of Accord Udyog Private Limited (AUPL) and has assigned its 'CRISIL C' rating to the facility. CRISIL had suspended the rating on January 12, 2016, as the company had not provided the necessary information required for a rating review. It has now shared the requisite information enabling CRISIL to assign a rating. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60 CRISIL C (Assigned; Suspension Revoked) The rating reflects the company's continuous cash losses over the four years through 2015-16 (refers to financial year, April 1 to March 31), constraining its financial risk profile. The rating also factors in working capital-intensive operations driven by stretched receivables, and low operating profitability due to the trading nature of its business. These rating weaknesses are partially offset by the extensive experience of AUPL's promoters in the steel product trading business. Incorporated in 2008 and based in Jamshedpur, AUPL is promoted by Mr. Avinash Singh and Ms. Jyoti Singh. The company trades in steel products such as channels, pipes, angles, plates, chequer plates, galvanised plain and corrugated sheets, thermo- mechanically treated bars, bars, and other such products. ADVAITH BIO: ICRA Assigns B- Rating to INR3.0cr Term Loan --------------------------------------------------------- ICRA has assigned a long-term rating of [ICRA]B- to the INR6.00 crore fund based bank facilities of Advaith Bio Remedies. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based-Term Loan 3.00 [ICRA]B-; assigned Fund Based-Cash Credit 3.00 [ICRA]B-; assigned The assigned rating is constrained by the stretched liquidity profile due to the high receivable days and inventory holding as evidenced by the high utilization of the working capital borrowings. The rating takes into account the low scale of operations as the company is still in the initial phase of establishing its brand which limits the operational and financial flexibility to an extent, the intense competition faced by the entity from the established organized players in the herbal segment and the substitution risk from the synthetic products. The rating also takes into account the part debt funded project which has resulted in moderate capitalization and coverage indicators for the entity. The rating, however, favorably factors in the year on year revenue growth of the entity, the healthy profitability, the long experience of the promoters in the ayurveda segment and the continuous R&D efforts leading to addition of new products. The rating also takes into account the marketing network of the firm with presence in 11 states and the further investment in marketing activities being undertaken by the entity to drive the product demand and establish its brand. Going forward, the ability of the entity to establish it brand & distribution network and reduce the collection period will remain the key rating sensitivities. Advaith Bio Remedies is a partnership firm based out of Bangalore manufacturing herbal based products for pharmaceutical and cosmetic industry. The company sells products for hair care, face care, baby care in cosmetic segment and for diabetes, neurological, heart diseases etc in pharmaceutical segment under the brand name BIO CARE. It has its own research and development center and is closely associated with laboratories in India like Bangalore Test House for research and analysis to ensure high quality products. This ensures sterilized raw material for highly sensitive Pharmaceutical and Ayurveda formulations. Recent Results The firm reported an operating income of INR4.6 crore and a net profit of INR0.4 crore during FY2015, as compared to an operating income of INR2.9 crore and a profit after tax of INR0.2 crore during FY2014. AERCOMFORT PRIVATE: CRISIL Assigns B Rating to INR37.5MM Loan ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the bank loan facilities of Aercomfort Private Limited (APL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Letter of Credit 25 CRISIL A4 Bank Guarantee 27.5 CRISIL A4 Cash Credit 37.5 CRISIL B/Stable The ratings reflect the company's modest scale of operations in the highly fragmented heating, ventilation, and air conditioning (HVAC) industry, and highly working capital-intensive operations. These rating weaknesses are partially offset by the extensive industry experience of its promoters. Outlook: Stable CRISIL believes APL will continue to benefit over the medium term from its promoters' extensive industry experience and their established relationship with suppliers and customers. The outlook may be revised to 'Positive' in case of significant and sustainable improvement in working capital cycle along with sustainable growth in revenue. Conversely, the outlook may be revised to 'Negative' in case of a substantial decline in revenue or margins, a further stretch in the working capital cycle, or large, debt-funded capital expenditure, resulting in weakening of its financial risk profile. APL, based in Delhi and promoted by Mr. Vijay Kumar Gupta, was established in 1998; currently, it is also managed by Mr. Mayank Gupta. The company provides turnkey solutions for HVAC projects. Net profit was INR3.2 million on net sales of INR130.5 million in 2014-15 (refers to financial year, April 1 to March 31), against net profit of INR5.00 million on net sales of INR202.8 million in 2013-14. AINAJ INDUSTRIES: CRISIL Assigns B- Rating to INR170MM Loan ----------------------------------------------------------- CRISIL has revoked the suspension of its rating on the long-term bank facility of Ainaj Industries (AI) and has assigned its 'CRISIL B-/Stable' rating to the facility. CRISIL had, on Aug. 29, 2011, suspended the rating as the firm had not provided the necessary information required for a rating review. It has now shared the requisite information, enabling CRISIL to assign a rating to the company's bank facility. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 170 CRISIL B-/Stable (Assigned; Suspension Revoked) The rating reflects the firm's working capital-intensive nature of operations and high gearing levels of the firm. The rating also factors in average liquidity position of the firm, and susceptibility to changes in government policies regarding minimum support prices, to the fragmented nature of the cotton ginning industry resulting in intense competition, and to adverse movements in raw material (cotton) price. These rating weaknesses are partially offset by the extensive industry experience of the firm's promoters and their support in the form of unsecured loans. Furthermore, the firm benefits from the favourable location of its plant, providing access to high-quality raw cotton. Outlook: Stable CRISIL believes AI will continue to benefit over the medium term the extensive industry experience of its promoters and established relationship with customers and suppliers. The outlook may be revised to 'Positive' in case of steady growth in sales while margins and working capital cycle improve, leading to a better financial risk profile. Conversely, the outlook may be revised to 'Negative' in case of a decline in cash accrual, large debt-funded capital expenditure, or an increase in working capital requirement, resulting in weakening of the firm's financial risk profile. AI, based in Radhanpur, Gujarat, was set up as a partnership firm in 1997 by five partners, Mr. Dayaram Thakkar, Mr. Vasant Thakkar, Mr. Dinesh Thakkar, Mr. Suresh Thakkar, and Mr. Rajesh Thakkar. In 2010, four partners withdrew their capital and AI was reconstituted as a proprietorship firm of Mr. Suresh Thakkar. The firm manufactures cotton bales through ginning and pressing, and extracts oil from cotton seeds. It has an installed capacity of 36,000 tonnes per annum (tpa) for cotton bales and 3000 tpa for cotton seed oil. AMBE PROPTECH: CRISIL Assigns 'B' Rating to INR250MM LT Loan ------------------------------------------------------------ CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term bank facility of Ambe Proptech Private Limited (APPL). The rating reflects exposure to risks related to ongoing project under execution, increase in interest rates, and expected high customer concentration in the revenue profile. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 250 CRISIL B/Stable These rating weaknesses are offset by the promoter's extensive entrepreneurial experience, and stable expected revenue backed by long-term lease agreements. Outlook: Stable CRISIL believes APPL will continue to benefit from the promoters' extensive entrepreneurial experience. The outlook may be revised to 'Positive' if timely stabilisation of operations of its upcoming new mall and higher-than-expected revenue and profitability lead to better cash accrual. Conversely, the outlook may be revised to 'Negative' if delays in commencement of operations at the proposed mall, or lower-than expected cash accrual during the early stage of operations results in pressure on liquidity. APPL, incorporated in February 2012, is setting up a commercial mall cum multiplex cinema complex in Gorakhpur. It is promoted by Mr. Nirmal Kumar Gupta and Mr. Sandeep Kumar Tekriwal, along with his other family members. B.S.R. BUILDERS: CRISIL Assigns D Rating on INR100MM Term Loan -------------------------------------------------------------- CRISIL has assigned its 'CRISIL D/CRISIL D' ratings to the bank facilities of B.S.R. Builders Engineers and Contractors (BSR). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Overdraft Facility 45 CRISIL D Term Loan 100 CRISIL D The ratings reflect delays in servicing term debt due to weak liquidity, which is a result of nascent stages of ongoing projects. BSR has high susceptibility to project implementation risks and to cyclicality in the real estate industry. However, BSR benefits from the extensive experience of the firm's partners. Set up in 1995 as a partnership firm, BSR constructs residential and commercial buildings in Chennai. The operations of the firm are managed by Mr. Raghavendra Reddy. BALAJI OVERSEAS: ICRA Reaffirms 'B' Rating on INR24cr Loan ---------------------------------------------------------- ICRA has reaffirmed its long term rating of [ICRA]B on the INR5.88 crore long term fund based limits of Balaji Overseas. ICRA has also reaffirmed its short term rating of [ICRA]A4 on the firm's INR24.00 crore short term fund based limits and INR0.12 crore short term non fund based limits. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Fund Based Limits 5.88 [ICRA]B; reaffirmed Short Term Fund Based Limits 24.00 [ICRA]A4; reaffirmed Short Term Non Fund Based Limits 0.12 [ICRA]A4; reaffirmed The rating reaffirmation takes into account the 40% year-on-year decline in Balaji Overseas' Operating Income (OI) in FY2015 due to reduced demand from overseas customers, however improved realizations resulted in an expansion in the firm's profit margins. ICRA's ratings continue to factor in the firm's small scale of operations, highly competitive nature of the rice milling industry and the vulnerability of the firm's profitability to fluctuations in raw material prices. The high gearing of the firm, arising out of substantial debt funding of working capital requirements, coupled with low profitability, has resulted in weak coverage indicators, as reflected in low interest coverage ratio of 0.92 times in FY2015. Further, the ratings continue to factor in agro climatic risks, which can impact the availability of paddy. Nevertheless the ratings favourably take into account the long standing experience of the promoters and their strong relationships with several customers and suppliers, coupled with proximity of the mill to major rice growing area which results in easy availability of paddy. Going forward the ability of the firm to ramp up its scale of operations in a profitable manner and improve its capital structure will be the key rating sensitivities. Balaji Overseas was established in 1989 as a proprietorship firm with Mr. Kailash Chander as the proprietor. The firm together with its other group concerns i.e. Balaji International and Shri Shanker Rice Mill is engaged in the business of rice milling. Balaji Overseas is engaged in the processing and trading of rice in the domestic market as well as exporting to countries like Saudi Arabia, Dubai, Kuwait and USA. The firm sells its product under the brand name 'Sargam'. The firm's manufacturing unit is located in Pehowa, Haryana. Recent Results Balaji Overseas reported a net profit of INR0.32 crore on an OI of INR195.55 crore in FY2015 as compared to a net profit of INR0.80 crore on an OI of INR326.69 crore in the previous year. BANGALORE INSTITUTE: ICRA Assigns 'B' Rating to INR9.95cr Loan -------------------------------------------------------------- ICRA has assigned a long-term rating of [ICRA]B to the INR9.95 crore term loan facility and INR0.05 crore unallocated limit of Bangalore Institute of Gastroenterology Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loan 9.95 [ICRA]B/Assigned Long-Term Unallocated Limit 0.05 [ICRA]B/Assigned The assigned rating is constrained by BIG's limited track record of operations commencing from December 2015 and the fact that the company is yet to break even given the long gestation period which is typical of a hospital project. The company's capital structure is expected to remain stressed owing to the initial debt funded capex and net losses and high debt levels are expected to result in weak debt coverage indicators over the medium term. BIG's ability to scale up the top-line, achieve the desired occupancy & operating parameters, attract and retain reputed doctors in the view of heightened competition remains a challenge. The rating also takes note of the highly competitive environment; however, being the first gastroenterology specialty hospital in the state, BIG has an edge over other multi specialty hospitals. The rating also draws comfort from the facility being fully operational with no major capital expenditure expected to be incurred in near term. The extensive experience of promoters in the field of gastroenterology and favorable location of the hospital is likely to have positive impact on the occupancy levels of the hospital. Incorporated in 2013, BIG has set up a 100 bed gastroenterology specialty hospital in Jayanagar (Bangalore). The company is owned and managed by Dr. Ramesh Reddy, Dr. S DIvakara Murthy, Dr. Preethan K.N., Dr. R Sahadev and Dr. Tejeswi S. Gutti who are gastroenterology specialists. The hospital was set up with an aim to provide one stop solution for gastrointestinal, hepatobiliary and pancreatic diseases. C.G. ISPAT: ICRA Assigns B+ Rating to INR28.79cr Term Loan ---------------------------------------------------------- ICRA has assigned an [ICRA]B+ rating to the INR28.79 crore1 term loans and INR19.00 crore fund-based bank facilities of C.G. Ispat Private Limited. ICRA has also assigned an [ICRA]A4 rating to the INR17.21 crore non-fund based bank facilities of CGIPL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loans 28.79 [ICRA]B+; assigned Fund Based Bank Limits 19.00 [ICRA]B+; assigned Non-Fund Based Bank Limits 17.21 [ICRA]A4; assigned The assigned ratings take into consideration the long track record of the company in the steel business and partial integration within the group for supply of majority of raw material required by CGIPL's steel rolling mill (SRM) from the group's flagship company, Vaswani Industries Limited (VIL), which reduces the risk associated with the availability of raw material to a large extent. The ratings also take into consideration the support provided by VIL to CGIPL as reflected by long term loans provided during 2014-15. The ratings are, however, constrained by the ongoing slowdown in the steel sector, which is likely to impact CGIPL's growth and profitability in the short term, weak financial profile of CGIPL at present, as reflected by nominal profits and depressed debt coverage indicators in 2015-16, though it improved significantly as compared to losses in 2014-15 and a high gearing at present on account of a large debt, which largely includes term loans and working capital loans. The ratings are also impacted by the high working capital intensive nature of CGIPL's operations as reflected by high inventory levels during the recent years and CGIPL's exposure to the inherent cyclicality of the steel industry, which is likely to keep the company's profitability and cash flows volatile. Incorporated in 2004, the company was acquired by the Raipur based Vaswani group in October, 2010. CGIPL is engaged in the manufacturing of MS Beam, Angles Channels and H-Beams, with an installed capacity of around 60,000 MTPA of steel structurals. CGIPL also works as a conversion agent for Steel Authority of India Limited (SAIL). The flagship company of the group, Vaswani Industries Limited (VIL) holds around 40% of the equity shares in CGIPL. The Vaswani group on a consolidated level, has production facilities for sponge iron, billets, steel structurals, power and steel castings with annual capacities of 90,000 MT, 36,000 MT, 60,000 MT, 11.50 MW and 12,000 MT respectively. Recent Results In 2014-15, as per the audited financial statements, CGIPL reported an operating income of INR103.89 crore and a net loss of INR13.35 crore, as against an operating income of INR90.61 crore and a net profit of INR0.05 crore in 2013-14. During the first nine months in 2015-16, the company reported an operating income of INR75.63 crore and a profit before tax of INR0.32 crore. CHHATRAPATI SAMBHAJI: ICRA Assigns B+ Rating to INR26.02cr Loan --------------------------------------------------------------- ICRA has assigned the [ICRA]B+ rating to INR23.33 crore long term fund based CC limits, INR26.02 crore long term fund based term loan limits and INR0.65 crore long term unallocated facilities of Chhatrapati Sambhaji Raje Sakhar Udyog Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term, Fund based CC Limits 23.33 [ICRA]B+ assigned Long term, Fund based Term Loan limits 26.02 [ICRA]B+ assigned Long term, unallocated 0.65 [ICRA]B+ assigned The assigned rating takes into consideration long standing experience of promoters in the sugar industry and ability of the management to procure sugarcane from non command area on account of wider spread of the shareholder suppliers. Forward integrated operations with the co-generation unit provide additional source of revenue and partially protect the cyclicality inherent in the sugar industry though the contribution of the co-generation remains limited due to modest scale. Further, lack of distillery restricts the level of forward integration for the mill. The assigned rating derives some comfort from increasing domestic sugar prices over last four to five months, given the lower sugar production scenario due to inadequate cane availability and lower crushing levels. ICRA also takes into account government support in the form of soft loans to repay cane arrears, where the company has received an amount of INR4.40 crore and is supporting the liquidity position of the company to some extent. The rating however, is constrained by stretched financial risk profile of the company as reflected in low profitability margins due to unfavorable contribution margins, high debt levels due to working capital intensive operations and resultant weak debt coverage indicators. Declining sugar realizations during FY15 coupled with high cane costs impacted financial performance during the fiscal. Additionally, it has also given rise to significant inventory levels in anticipation of recovery in sugar prices. Though the prices have recovered to some extent in the recent past, the cane availability and resultantly sugar production remained moderate in the current year. The rating continues to be constrained by the high regulatory intensity associated with the sugar industry and the vulnerability of the sugar operations to agro climatic risks. The company also remains vulnerable to cyclicality inherent in the industry as the operations are not integrated with distillery while the co- generation unit capacity is primarily used for captive purpose. Going forward, sustainable recovery in sugar prices and adequate working capital management will be the key ratings sensitivities from the credit perspective. Incorporated in 2000, Chhatrapati Sambhaji Raje Sakhar Udyog Limited (CSRSUL) has current crushing capacity of 1250 TCD. The company has more than 6500 cane producing members .The company command area spans Aurangabad Taluka of Aurangabad District of Maharashtra with suppliers also located in adjoining tehsils of nearby Jalna and Beed districts The company also operates a 6 MW co-generation unit. Recent Results CSRSUL has reported OPBDIT of INR8.23 crore and PAT of INR0.54 crore in FY15 on an operating income of INR68.91 crore. CHOUKSEY ENTERTAINMENT: ICRA Suspends B/A4 Rating on INR6cr Loan ---------------------------------------------------------------- ICRA has suspended the [ICRA]B/A4 rating for the INR6.00 Crore bank facilities of Chouksey Entertainment Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. DAYANAND TEXTILE: ICRA Suspends B+ Rating on INR7.44cr Loan ----------------------------------------------------------- ICRA has suspended the [ICRA]B+ rating for the INR7.44 Crore bank facilities of 'Dayanand Textile Industries Private Limited'. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. DIAMOND CONSTRUCTION: ICRA Suspends B+ Rating on INR12cr Loan ------------------------------------------------------------- ICRA has suspended the long term rating of [ICRA] B+ assigned to the INR1.50 crore long term fund based and INR12.00 crore non fund based facilities of Diamond Construction Company. The suspension follows ICRA's inability to carry out rating surveillance in the absence of requisite information from the company. GLOBAL ART: ICRA Suspends B+ Rating on INR13cr Bank Loan -------------------------------------------------------- ICRA has suspended the [ICRA]B+ rating for the INR13.00 Crore bank facilities of 'Global Art Exports'. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. HIM CABLEWAYS: ICRA Suspends B Rating on INR6.82cr Loan ------------------------------------------------------- ICRA has suspended the long term rating of [ICRA]B assigned to the INR6.82 crore fund based bank facilities of Him Cableways. ICRA has also suspended the short term rating of [ICRA]A4 assigned to the INR2.00 crore non fund based facilities of Him Cableways. ICRA has also suspended the long term/short term rating of [ICRA]B/A4 assigned to the INR1.35 crore unallocated limits of Him Cableways. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. HITECH HYDRAULICS: ICRA Assigns B+ Rating to INR3.95cr Loan ----------------------------------------------------------- ICRA has assigned the long term rating of [ICRA]B+ to INR3.95 crore fund based limits ,Rs.3.00 crore non fund based limits and INR3.05 crore unallocated limits of Hitech Hydraulics. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based limits 3.95 [ICRA]B+ assigned Non fund based limits 3.00 [ICRA]B+ assigned Unallocated limits 3.05 [ICRA]B+ assigned The assigned rating is constrained by the modest scale of operations and high client concentration risk with the firm deriving over 70% of revenues from DRDL (Defence Research Development Laboratory) in FY2015. The rating also considers high sector concentration risk with defence sector accounting for majority of the firm's revenues and the risk associated with the partnership nature of the business. The rating, however, draws comfort from the longstanding experience of promoters in aerospace and mechanical engineering industry; established position of HH as a recognized vendor in the aerospace and defense sector to reputed clientele such as Defence Research Development Laboratory (DRDL), Bharat Dynamics Limited (BDL), Defence Research Development Organization (DRDO), Bharat Heavy Electricals Limited (BHEL), Hindustan Aeronautical Limited etc., and long standing relationships with clients as demonstrated by repeat orders. ICRA also notes the favourable demand outlook on the back of government spending on defence sector and indigenization of defence production. Going forward, the ability of the firm to improve its scale of operations, maintain the profitability, and manage its working capital requirements effectively will be key rating sensitivities from credit perspective. Hitech Hydraulics (HH, the firm) was incorporated in the year 1997 by Mr.A.Srinivasa Rao & Mr.K.Rama Mohan Rao. The firm is involved in the business of manufacture of various Hydraulics & Pneumatics systems for the aerospace and defence sector. The firm has a manufacturing unit in IE Kukatpally, Hyderabad. HH's clients include many reputed players like Defence Research Development Laboratory, Bharat Dynamics Limited, Bharat Electronics Limited, Hindustan Aeronautical Limited, Brahmos Aerospace Private Limited etc. Recent Results HH has reported an operating income of INR15.04 crore and net profit of INR0.96 crore in FY2015 as against an operating income of INR10.23 crore and net profit of INR0.67 crore in FY2014. JANAKI COTTON: ICRA Suspends B- Rating on INR7.10cr Term Loan ------------------------------------------------------------- ICRA has suspended [ICRA]B- rating assigned to the INR7.10 crore term loan facilities and INR3.00 crore fund based facilities of Janaki Cotton Mills Limited. ICRA has also suspended the short- term of [ICRA]A4 assigned to the INR0.9 crore fund based facilities and INR3.00 crore non-fund based facilities of the entity. According to its suspension policy, ICRA may suspend any rating outstanding if in its opinion there is insufficient information to assess such rating during the surveillance exercise. KOSHIYA ENTERPRISE: CRISIL Cuts Rating on INR150MM Term Loan to D ----------------------------------------------------------------- CRISIL has downgraded the rating of the long-term bank facility of Koshiya Enterprise (KE) to 'CRISIL D' from 'CRISIL B+/Stable'. The rating downgrade reflects KE's delays in servicing interest payments with delays of around 50 days owing to stretched liquidity. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 150 CRISIL D (Downgraded from 'CRISIL B+/Stable') The rating also reflects susceptibility of KE's operating performance to timely execution of the project and flow of customer advances from current and future bookings, and sensitivity of the project to cyclicality in the real estate sector. These weaknesses are mitigated by the partners' extensive experience in the real estate business and comfortable maturity profile of debt availed of for project completion. KE is a partnership firm established in October 2012 by the Koshiya family based in Surat. The firm, owned by the KStar group, is a special-purpose vehicle floated for construction of a real estate project, The Candlewood, in Katargam, Surat. KSP INDUSTRIES: Weak Financial Strength Cues ICRA SP 3D Grading --------------------------------------------------------------- ICRA has assigned a 'SP 3D' grading to KSP Industries indicating the 'Moderate Performance Capability' and 'Weak Financial Strength' of the channel partner to undertake off-grid solar projects. The grading is valid for a period of two years from the date of assignment of grading i.e. till March 29, 2018 after which it will be kept under surveillance. Grading Drivers Strengths * Experience of the promoters in the electrical and power sector * Low gearing and healthy debt coverage indicators Risk Factors * Small scale of operations * Low net worth base * Modest outstanding order book at INR0.40 crore for solar as on March 2016 Fact Sheet Year of Formation 2008 Office Address Plot No. C-26, MIDC, Parbhani 431 401 Proprietor Mrs. Sunita Pandurang Gadade Incorporated in 2006 and promoted by Mrs. Sunita Pandurang Gadade, KSPI Industries is engaged in manufacturing of solar based street lights, power packs, home lighting systems, pumps, lanterns, educational kits, etc. The firm is an ISO 9001:2008 certified and primarily undertakes tender based orders for Government and semi government entities in Maharashtra. SI Related Business - High Performance Capability Promoter Track Record: Incorporated in 2006 with the operations starting in 2011, the firm till date has executed solar projects to the extent of around 600 kw of solar street lightings, pumps, power packs, home lightings, lanterns, etc. The promoters have a proven track record with experience of more than 18 years in the electrical and power solutions domain with group companies involved in manufacturing of batteries and executing electrical projects as well. Technical competence and adequacy of manpower: The key promoter, Mr. P. V. Gadade has an experience of 18 years in the power solutions domain. The firm has technically qualified and experienced personnel on board. The firm's manpower base is adequate given the current scale of operations. Quality of suppliers and tie ups: The firm procures panels mainly from PV Power Technologies Private Limited and Akshay Solar Power (India) Private Limited. Inverters and other electrical supplies are sourced from Olympus Power Private Limited whereas the solar submersible pumps are procured from PALP Technologies. Batteries are sourced mainly from a group company, Kalpit Enterprises. Independent feedback obtained from the suppliers has been satisfactory. Customer and O&M Network: The firm has served various government and semi-government clients in the past. The firm undertakes operations and maintenance for a period of one to five years based depending on the terms of contract. The O&M services are carried out quarterly by the firm. The firm provides a warranty of twenty years for the modules, five years for battery and one year for other electronic items. LAXMI RICE: ICRA Reaffirms B Rating on INR14.80cr LT Loan --------------------------------------------------------- ICRA has reaffirmed its long term rating of [ICRA]B on the INR14.80 crore fund based bank facilities of Laxmi Rice Mills. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limits Long Term 14.80 [ICRA]B; reaffirmed The rating reaffirmation takes into account the flat trends in LRM's operating income in FY2015, which has however shown improvement in FY2016. In FY2015, a decline in realizations offset a moderate growth in volumes. The firm's operating margins also saw some erosion in FY2015 due to overall weakening of rice prices. ICRA's rating continues to take into account the firm's moderate scale of operations, highly competitive nature of the rice milling industry and the vulnerability of the firm's profitability to fluctuations in raw material prices. The firm has high gearing due to substantial debt funding of working capital requirements, coupled with declining profitability, which has resulted in weak coverage indicators. The ratings also factors in the firm's high working capital intensity, with NWC3/OI4 of 52% in FY2015 due to stocking of paddy at the year end. ICRA also takes note of the agro climatic risks to which the firm is exposed, which can impact the availability of paddy. However this risk is partially offset by the proximity of the mill to major rice growing areas which results in easy availability of paddy. The rating also favorably takes into account the growth in turnover in the past few years and extensive experience of the promoters in the rice industry. Going forward, the firm's ability to ramp up its scale of operations, and optimally manage its working capital cycle so as to bring about a sustained improvement in its capital structure and coverage indicators, will be the key rating sensitivities. LRM is a partnership concern which came into existence in 2009. Presently the firm has two partners viz. Mr. Darshan Lal Garg and Mrs. Anita Rani. The firm is primarily engaged in the business of milling and processing of rice and has an installed milling capacity at Muktsar, Punjab of 8 tonnes per hour of paddy and a sorting capacity of 6 tonnes per hour of rice. Recent Results LRM reported a net profit of INR0.35 crore on an operating income of INR40.57 crore for 2014-15, as compared to a net profit of INR0.28 crore on an operating income of INR40.15 crore for the previous year. M.V. WAGHADKAR: ICRA Suspends B+ Rating on INR8.50cr LT Loan ------------------------------------------------------------ ICRA has suspended the long term rating of [ICRA]B+ outstanding on the INR8.50 crore long term fund based facilities of M.V. Waghadkar & Sons Jewellers Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. MAHESHWARI FABTEX: CRISIL Assigns B+ Rating to INR57.5MM Loan ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long- term bank facilities of Maheshwari Fabtex Private Limited (MFPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 57.5 CRISIL B+/Stable Term Loan 42.5 CRISIL B+/Stable The rating reflects the company's small scale of operations in the highly competitive and fragmented textile trading industry, and below-average financial risk profile because of a small net worth, high gearing and modest debt protection metrics. These rating weaknesses are partially offset by its promoter's extensive industry experience and established relationship with reputed clients, providing a sustainable revenue base. Outlook: Stable CRISIL believes MFPL will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' in case of substantial improvement in scale of operations while profitability is maintained, leading to higher-than-expected cash accrual, along with efficient working capital management. Conversely, the outlook may be revised to 'Negative' in case of larger-than- expected working capital requirement or lower-than-anticipated cash accrual, weakening liquidity. MFPL was incorporated in 2002, promoted by the Khator family. Its operations are managed by Mrs. Bina Devi Khator and her nephew, Mr. Praful Khator. The company primarily trades in grey and shirting fabric. In 2009, it also began undertaking job work for local dealers and traders, wherein it processes grey fabric from yarn. Its manufacturing unit is in Bhiwandi, Thane, while its head office is in Mumbai. MALWA AUTO: CRISIL Reaffirms B+ Rating to INR80MM Cash Loan ----------------------------------------------------------- CRISIL's rating on the long-term bank facility of Malwa Auto Sales Private Limited (MAPL) continues to reflect MAPL's weak financial risk profile, marked by leveraged capital structure and moderate interest coverage ratio, and moderate scale of operations in the intensely competitive auto dealership industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 80 CRISIL B+/Stable (Reaffirmed) These rating weaknesses are partially offset by the benefits that MAPL derives from its promoters' extensive experience in the automotive dealership business and sole-authorised distributorship of Hyundai Motors India Ltd (HMIL) in Sonipat (Haryana). Outlook: Stable CRISIL believes that MAPL will benefit over the medium term from its promoters' extensive experience in automobile dealership business and established relationship with its principal, HMIL. The outlook may be revised to 'Positive' if the company's financial risk profile improves on account of substantial accruals, led by improvement in scale and operating profitability. Conversely, the outlook may be revised to 'Negative' if MAPL's working capital management weakens further or it undertakes any debt-funded capital expenditure plans, leading to further deterioration in its overall financial risk profile. MAPL was incorporated in 2002, promoted by Mr. Nitin Sharma and his family members. The company commenced its operations in 2009 with dealership agreement of HMIL. Currently, MAPL is the sole authorised automobile dealer for HMIL in Kundli, Sonipat, Gohana, and Gannaur (all in Haryana). MAPL has three showrooms in 3S format and one outlet. MITTAL COT: ICRA Reaffirms B Rating on INR4.0cr Cash Loan --------------------------------------------------------- ICRA has reaffirmed its long term rating of [ICRA]B on the INR6.50 crore fund based bank facilities of Mittal Cot Fibers. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 4.00 [ICRA]B; reaffirmed Term Loan 2.50 [ICRA]B; reaffirmed ICRA's ratings continue to take into account MCF's moderate scale of operations and the highly competitive and fragmented nature of the cotton industry marked by the presence of a large number of cotton mills present in the vicinity. This coupled with the low value additive nature of the work, seasonality of the cotton ginning industry and volatility in raw material prices is expected to impact the profitability margins of the firm. ICRA also takes note of the low capacity utilization of the firm on account of the seasonal nature of the cotton ginning industry and the commencement of operations in December 2014. The ratings also factor in the firm's exposure to regulatory risks, with regards to Minimum Support price (MSP) for raw cotton, as well as imposition of any restriction on cotton exports by the Government of India (GOI), which may impart volatility to the cash flows of the firm. The rating, however, favorably factors in the extensive experience of the promoters in the cotton ginning industry, and existing relationships with customers. Further, ICRA also notes the proximity of the manufacturing units to the cotton producing belt of Madhya Pradesh, resulting in easy access to raw material and reduction in transportation costs and agent commission. In ICRA's view, the ability of the firm to ramp up its scale of operations while maintaining healthy profitability shall be the key rating sensitivities. MCF is a partnership concern, incorporated in June 2014, and has been promoted by Mr. Mahesh Kumar Mittal and his brothers; the partners have been associated with the cotton ginning and trading business for more than two decades. The firm manufactures lint from kapas (raw cotton) and undertakes pressing operation to produce cotton bales. Cotton seed, which is a by-product of the ginning operation, is sold to oil extraction units. The firm's manufacturing facility is located at Sendhwa, Madhya Pradesh and is equipped with 24 ginning mills and 1 press with a total ginning capacity of 16,906 metric tons per annum (MTPA). Recent Results MCF reported a net profit of INR0.08 crore on an operating income of INR5.79 crore for the year ended March 31, 2015. The firm reported, on a provisional basis, an operating income of ~Rs 19 crore for the eleven months ended February, 2016. MUNEER ENTERPRISES: ICRA Suspends B+ Rating on INR7.25cr Loan ------------------------------------------------------------- ICRA has suspended the rating of [ICRA]B+ assigned to INR7.25 crore long-term rating fund based facilities of Muneer Enterprises Private Ltd. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. NAAZ LIFESTYLE: ICRA Suspends B- Rating on INR6.0cr Term Loan ------------------------------------------------------------- ICRA has suspended the [ICRA]B- rating assigned to the INR6.0 crore term loan facilities and the INR2.0 crore long term fund based facilities of M/s Naaz Lifestyle. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. According to its suspension policy, ICRA may suspend any rating outstanding if in its opinion there is insufficient information to assess such rating during the surveillance exercise. NESTOR PHARMACEUTICALS: ICRA Reaffirms C+ Rating on INR51cr Loan ---------------------------------------------------------------- ICRA has reaffirmed its [ICRA]C+ rating on the INR51.00 crore bank facilities of Nestor Pharmaceuticals Limited. ICRA has also reaffirmed its short term rating of [ICRA]A4 on the INR16.00 crore non fund based limits. The unallocated long term/short term ratings for INR8.00 crore have been reaffirmed at [ICRA]C+/[ICRA]A4. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Facilities (CC) 51.00 [ICRA]C+; Reaffirmed Non Fund Based Facilities (LC/BG) 16.00 [ICRA]A4; Reaffirmed Unallocated LT/ST 8.00 [ICRA]C+/[ICRA]A4; Reaffirmed The rating reaffirmation takes into account the continuing consolidated net losses for NPL in 2014-15 which was substantial on account of the weak performance of its UK subsidiary. The ratings also factor in the high working capital intensity of the company with NWC/OI1 at 33.7% as on March 31, 2015, although it has improved due to moving ahead with distribution model for supplying products in the African market. ICRA also takes note of the closure of the company's UK manufacturing operations, which had a total external debt of INR21.57 crore, the repayment of which could lead to further stress on the company's liquidity. ICRA has factored in the company's stretched financial risk profile with high gearing and weak debt coverage indicators. However, the ratings positively factor in the long experience of the promoters in the formulation business, healthy growth in the formulations business and the company's diversified geographic presence. The rating also takes note of improvement in the operating margins in 2014-15, and the change in the depreciation clause as well as impairment of investments which led to net losses in 2014-15. The ratings also factor in the company's healthy order book from the domestic government supplies business. Going forward, the ratings would remain sensitive to NPL's ability to increase its profitability and manage its liquidity position and continued support from promoters. Incorporated in 1975 by the Sehgal family, NPL manufactures and markets a wide range of branded and generic formulations. Nestor has two umbrella brands under which products are marketed globally 'Nestor' which is an established brand and 'Steriheal' which is being developed as a 'hygiene for health' brand. Recent Results In 2014-15, NPL reported a standalone operating income (OI) of INR130.8 crore and net losses of INR1.4 crore as against an OI of INR108.5 crore and net losses of INR3.2 crore in the previous year. In 2014-15, NPL reported a consolidated OI of INR130.9 crore and net losses of INR8.9 crore as against an OI of INR117.7 crore and net losses of INR12.6 crore in the previous year. OM SAI: CRISIL Raises Rating on INR19MM LT Loan to B+ ----------------------------------------------------- CRISIL has upgraded its rating on the long-term bank facilities of Om Sai Aqua (OSA) to 'CRISIL B+/Stable' from 'CRISIL B/Stable'. The rating on the short-term facility has been reaffirmed at 'CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bill Discounting 70 CRISIL A4 (Reaffirmed) Cash Credit 15 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') Long Term Loan 19 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') Proposed Long Term 8.5 CRISIL B+/Stable (Upgraded Bank Loan Facility from 'CRISIL B/Stable') The upgrade reflects CRISIL's belief that OSA's business and financial risk profiles will continue to improve over the medium term, marked by an increase in profitability. On account of equity infusion in 2014-15 (refers to financial year, April 1 to March 31), the dependence on bank limits has reduced resulting in improvement in the debt protection metrics. Improved profitability, coupled with lower interest costs, has supported the financial risk profile. The ratings continue to reflect OSA's average financial risk profile, because of small net worth, modest scale of operations, and its susceptibility to volatility in raw material prices. These weaknesses are partially offset by the extensive experience of the proprietor in the feed industry. Outlook: Stable CRISIL believes OSA will continue to benefit over the medium term from its proprietor's extensive industry experience. The outlook may be revised to 'Positive' if revenue and profitability increase substantially, leading to improvement in the financial risk profile. Conversely, the outlook may be revised to 'Negative' if the firm undertakes aggressive debt-funded expansion, or if revenue and profitability decline substantially, leading to weakening of the financial risk profile. OSA is a proprietary firm set up in 2000 by Mr. B Venkateshwarlu. The firm manufactures fish meal, shrimp head meal, and fish oil, which are intermediary products used in manufacturing aqua feed. During 2014-15 (refers to financial year, April 1 to March 31), profit after tax (PAT) was INR1.25 million on revenue of INR230.33 million against PAT of INR0.74 million on revenue of INR294.66 million in 2013-14. OSWAL KNIT: ICRA Suspends C/A4 Rating on INR38cr Bank Loan ---------------------------------------------------------- ICRA has suspended the [ICRA]C/A4 ratings for the INR38.00 Crore bank facilities of 'Oswal Knit India Limited'. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. P. DASARATHARAMA: ICRA Assigns B+ Rating to INR2.0cr Loan --------------------------------------------------------- ICRA has assigned a long-term rating of [ICRA]B+ to the INR2.00 crore1 fund based cash credit limit and a short-term rating assigned of [ICRA]A4 to the INR8.00 crore non fund based limits of P. Dasaratharama Reddy. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based-Cash Credit 2.00 [ICRA]B+ ; assigned Non Fund Based 8.00 [ICRA] A4 ; assigned The ratings take into consideration the high growth in revenue in FY2015, the healthy order book position for the firm, and the comfortable debt and coverage indicators for the firm in FY2015. The ratings also consider the low working capital intensive nature of operations leading to comfortable liquidity position which will be further supported by the enhancement in the cash credit facility availed by the firm. The ratings continue to factor in the experience of the promoters in executing civil contract work for the road, irrigation and other infrastructure projects. The ratings are, however, constrained by the highly competitive and fragmented nature of industry which keeps profitability under check. The rating take into account the high sectoral concentration towards irrigation projects along with high customer and geographic concentration. Further, business growth is dependent upon the ability to successfully bid for tenders. The ratings also incorporate the risks arising due to the partnership nature of the firm and the labor intensive nature of the business, with mobilization of semi-skilled laborers being the key in scaling up operations. P. Dasarathama Reddy is a partnership firm established in the year 1998 and is operating as a class I civil contractor mostly for government departments in Karnataka. They are engaged in the business of construction of canals, roads and bridges. At present the firm is managed by three partners, namely Mr. Krishna Reddy, Mr. Dinesh Reddy and Mrs. Bhavani. Recent Results The firm reported an operating income of INR29.52 crore and a profit after tax of INR1.86 crore during FY2015, as compared to an operating income of INR3.06 crore and a profit after tax of INR0.23 crore during FY2014. P.K. & COMPANY: ICRA Suspends B+ Rating on INR27cr Loan ------------------------------------------------------- ICRA has suspended the long term rating of [ICRA]B+ assigned to the INR7.50 crore fund based bank facility and INR27.00 crore non-fund based bank facility of P.K. & Company. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the entity. PADMAVATHI COTTON: ICRA Assigns B Rating to INR11cr LT Loan ----------------------------------------------------------- ICRA has assigned the long term rating of [ICRA]B to the INR11.00 Crore fund based limits of Padmavathi Cotton Industries. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Fund based Limits 11.00 [ICRA]B; Assigned The rating assigned is constrained by the modest scale of the firm given its nascent stages of operation and stretched capital structure owing to debt funded capital expenditure incurred by the firm. The rating is also constrained by the fragmented nature of industry with weak entry barriers limiting the ability of the firm to pass on the any adverse price movements. The rating also factors in susceptibility of profitability to fluctuations in raw material prices, and agro climatic risks which could impact raw material availability. However, the rating draws comfort from the location of the mill in the proximity to key cotton growing areas of Telangana and Andhra Pradesh resulting in easy procurement of raw materials. The rating also factors in the experience of promoters in the cotton sales and ginning business for over two decades. Going forward, the ability of the firm to increase its scale of operations, improve profitability and service its debt timely would be the key rating sensitivities. Padmavathi Cotton Industries (PCI), located at Chintapally mandal in Nalgonda district of Telangana, has been established as a partnership firm in March 2015 and started its operations on 28th January 2016. Mr. Ganta Narayana Reddy and Mr. Ganta Rajashekar Reddy are the Managing Partners of the firm. Mr. Narayana Reddy has over 2 decades of experience in Cotton trading business. The ginning facility includes 48 double roller gins, an auto pressing unit and an auto feeder unit. The installed processing capacity of the unit is ~351,000 kappas per annum. PARK CONTROLS: ICRA Withdraws B+ Rating on INR5cr Loan ------------------------------------------------------ ICRA has withdrawn the long-term rating of [ICRA]B+ assigned to the INR5.00 crore fund based facilities of Park Controls and Communications Private Limited which was under notice of withdrawal. The rating is withdrawn as the period of notice of withdrawal is completed. POOJA SPONGE: CRISIL Reaffirms D Rating on INR90MM Cash Loan ------------------------------------------------------------ CRISIL's ratings on the bank facilities of Pooja Sponge Private Limited (PSPL) continue to reflect the instances of delay by PSPL in servicing its debt; the delays have been caused by the firm's weak liquidity. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 90 CRISIL D (Reaffirmed) Letter of Credit 40 CRISIL D (Reaffirmed) Term Loan 70 CRISIL D (Reaffirmed) PSPL also has working capital-intensive operations and a weak financial risk profile because of high gearing and small networth. The company, however, benefits from the promoters' extensive experience in the iron and steels industry. PSPL was incorporated in 2002 in Rourkela (Odisha). It was promoted by Odisha-based Gupta family. In 2006, the company was acquired by the Agarwal family. PSPL manufactures sponge iron at its facility in Rourkela, which has a kiln capacity of 200 tonnes per day. The company also trades in steel flat and long products. The operations are managed by its director, Mr. Kavit Agarwal. PRAHLADRAI & CO: ICRA Suspends D Rating on INR6.45cr Loan --------------------------------------------------------- ICRA has suspended the long term rating of [ICRA]D assigned to the INR6.45 crore fund based bank facilities of Prahladrai & Co. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. RADIANT LUBES: CRISIL Reaffirms B Rating on INR137.5MM Loan ----------------------------------------------------------- CRISIL ratings on the bank facilities of Radiant Lubes Private Limited (RLPL) continue to reflect the company's below-average financial risk profile and large working capital requirements. These rating weaknesses are partially offset by the extensive experience of the promoters in the petrochemicals and polymer trading segments. The ratings also reflect the company's stable business risk profile on the back of its established relationships with suppliers and customers. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 52.5 CRISIL A4 (Reaffirmed) Bill Discounting 30 CRISIL A4 (Reaffirmed) Cash Credit 137.5 CRISIL B/Stable (Reaffirmed) For arriving at its ratings, CRISIL has treated an unsecured loan of INR19.8 million extended to RLPL by its promoters as on March 31, 2015 as neither debt nor equity. This loan is subordinated to bank debt and is expected to be retained in the business. Outlook: Stable CRISIL believes that RLPL will maintain its stable business risk profile over the medium term, on the back of its established relationships with suppliers and customers, and the promoters' experience in the petrochemicals and polymer trading segments. The outlook may be revised to 'Positive' if the company improves its profitability or receives an equity infusion leading to a substantial improvement in its capital structure and debt protection metrics. The outlook may be revised to 'Negative' if RLPL's revenue growth reduces or in case of a significant decline in its profitability, or an increase in its working capital requirements. RLPL is a private limited company, incorporated in Nagpur (Maharashtra) in 2000; it was founded by Mr. Deepak Bharadwaj and Mr. Vijay Jindal. The company refines petrochemicals, recycles oils, and trades in polymers, and is a del-credre agent for Indian Oil Corporation Ltd. RLPL has a manufacturing unit in Nagpur. RAMNANDI ESTATE: CRISIL Cuts Rating on INR50.4MM Cash Loan to D --------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Ramnandi Estate Private Limited (REPL) to 'CRISIL D' from 'CRISIL B/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 50.4 CRISIL D (Downgraded from 'CRISIL B/Stable') Term Loan 49.3 CRISIL D (Downgraded from 'CRISIL B/Stable') The rating downgrade reflects delays by the company in repayment of it term loan. The delays are on account of weak liquidity. REPL is in an initial stage of operations and has yet to establish a track record of sustained operating income and profitability. Furthermore, it is exposed to intense competition in the automobile dealership industry. However, the company benefits from its promoters' extensive industry experience and its dealership of Hyundai Motor India Ltd (HMIL). Incorporated in August 2011, REPL is promoted by Mr. Akhouri Gopal. The company is the sole authorised dealer of HMIL passenger vehicles in the Gaya district of Bihar. It has one showroom-cum-workshop in Gaya. RELCOM TECHNOLOGY: ICRA Reaffirms B Rating on INR6.75cr Loan ------------------------------------------------------------ ICRA has reaffirmed its long term rating on the INR11.75 crore1 (enhanced from INR10.75 crore) fund based bank facilities of Relcom Technology Private Limited at [ICRA]B (pronounced ICRA B). ICRA has also reaffirmed its short term rating on the INR1.0 crore non-fund based bank facilities of RTPL at [ICRA] A4. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Fund Based Facilities Cash credit 5.00 [ICRA]B; Reaffirmed Long-term Fund Based Facilities Term Loan 6.75 [ICRA]B; Reaffirmed Short-term Non- Fund Based Facilities Letter of Credit 1.00 [ICRA]A4; Reaffirmed The ratings reaffirmation takes into account the modest scale of operations owing to the limited track record of operations in the rexine business, high working capital intensity due to high inventory and receivable levels and vulnerability of the company's profitability to raw material price volatility as majority of input cost is towards PVC (linked to crude oil prices). The ratings continue to be constrained by the highly competitive and fragmented nature of the industry which limits the pricing flexibility of the industry participants including RTPL, adverse capital structure accompanied by moderate debt protection metrics. The ratings, however, draw comfort from the manufacturing facility's proximity to numerous footwear manufacturers, which provides ample sales opportunity for the company, and RTPL's wide customer base, which also includes some established players of the footwear industry viz. Action Shoes, Relaxo Footwear, Liberty India, etc. Additionally, the ratings also factor in the steady demand prospects for rexine usage from various manufacturing segments like footwear, furniture, automobiles, etc. An increase in the company's scale of operations, whilst maintaining its profitability indicators and improvement in the capital structure will remain key rating sensitivities. Incorporated in the year 2008 by members of the Birhman family, RTPL is engaged in the business of PVC rexine manufacturing. The affairs of the company are being managed by Dr. Ran Singh Birhman and his son Mr. Amit Birhman. The company's manufacturing facility is located in Bahadurgarh (Haryana) wherein it commenced commercial operations in the month of October 2012. The facility has an installed annual capacity to manufacture upto 36 lakh sq.mts. of rexine. Recent Results In FY2015, RTPL recorded a net profit of INR0.19 crore on an operating income of INR27.05 crore, as against a net profit of INR0.60 crore on an operating income of INR35.41 crore in the previous year. RELIABLE INFRASTRUCTURE: CRISIL Cuts Rating on INR50MM Loan to D ---------------------------------------------------------------- CRISIL has downgraded its rating on the bank facilities of Reliable Infrastructure Private Limited (RIPL) to 'CRISIL D' from 'CRISIL B-/Stable. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 50 CRISIL D (Downgraded from 'CRISIL B-/Stable') Proposed Long Term 9 CRISIL D (Downgraded from Bank Loan Facility 'CRISIL B-/Stable') Term Loan 11 CRISIL D (Downgraded from 'CRISIL B-/Stable') The delays have been on account of weak liquidity due to delays in realization from its customers. The rating also reflects RIPL's modest scale of operations in the intensely competitive and cyclical stone-crushing business. CRISIL's rating also factors in the company's weak financial risk profile, marked by its small net worth, high gearing, and weak debt protection metrics. These rating weaknesses are partially mitigated by the extensive experience of RIPL's promoters in the construction materials segment. RIPL was set up in 2008 in Mumbai, by Mr. Preetpal Singh Kohli, and Mr. Aslam Khan. The company began commercial activities in July 2012. RIPL mines and crushes stone aggregates, and has a quarry in Khopoli. Mr. Preetpal Singh Kohli has been engaged in the construction sector for more than a decade through group entities including Rheoplast Technology Pvt Ltd, which manufactures construction chemicals; and AZ Techno Engineering Services Pvt Ltd which provides project management services. ROHIT FABTEX: ICRA Reaffirms B+ Rating on INR7.0cr LT Loan ---------------------------------------------------------- ICRA has reaffirmed its rating of [ICRA] B+ to the INR7.00 crore fund based facility of Rohit Fabtex. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- Fund Based Limits 7.00 [ICRA]B+; reaffirmed ICRA's rating is constrained by Rohit Fabtex's moderate scale of operations and its working capital intensive nature of operations, resulting in adverse capital structure and stretched liquidity. The rating also takes into account the vulnerability of the firm's profitability to fluctuations in raw material prices and the intensely competitive nature of the industry which exerts pressure on the firm's operating margins. The rating is further constrained by risks associated with the constitution of the firm as a proprietorship form of business, which exposes it to risks of capital withdrawal, dissolution etc. However, the rating favourably takes into account the extensive experience and the long track record of the promoters in the textile industry and the favourable location of the plant at Balotra, Rajasthan which is a hub for processing of poplin fabric. The firm's ability to increase its scale of operations, improve its profitability and efficiently manage its working capital cycle will be the key rating sensitivities. Rohit Fabtex was established as a proprietorship firm in 2010 by Mr. Kishorilal Singhvi to carry out processing of fabric. The unit of the firm at Balotra, has an installed capacity of ~40,000 meters per day, to produce poplin fabric. Recent Results In FY2015, RF recorded a net profit of INR0.90 crore on an operating income of INR49.06 crore, as against a net profit of INR0.76 crore on an operating income of INR46.32 crore in the previous year. RUKMANI INFRA: ICRA Assigns D Rating to INR22cr Bank Loan --------------------------------------------------------- ICRA has assigned a long term rating of [ICRA]D to the INR15.39 crore term loans, INR10 crore cash credit and INR4.61 crore unallocated limits of Rukmani Infra Projects Private Limited. ICRA has also assigned a short term rating of [ICRA]D to the INR22 crore non fund based bank facility of RIPPL. The above unallocated limits of INR4.61 crore have also been rated at [ICRA]D on the short term scale. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limit Term Loans 15.39 [ICRA]D assigned Fund Based Limit Cash Credit 10.00 [ICRA]D assigned Non Fund Based Limit-Bank Guarantee 22.00 [ICRA]D assigned Unallocated Limits 4.61 [ICRA]D/[ICRA]D assigned The assigned ratings take into account RIPPL's recent delays in timely servicing of debt obligations and the stretched liquidity profile on account of significant receivables and inventory built up. The ratings are constrained by its weak financial risk profile as reflected by declining turnover, net losses, unfavourable capital structure and depressed debt coverage indicators. The ratings also take into account the exposure of the company to execution risks arising from regulatory changes, political as well as bureaucratic interventions, which has resulted in slowdown in execution of contracts in the past too. RIPPL's operations have been severely impacted by the coal allocation scam (Coalgate) in 2012 due to which the execution of various projects was put on hold. The ratings continue to be constrained by the fragmented structure of the industry coupled with a tender based contract awarding system leading to intense competition from a large number of players, which puts pressure on margins. The ratings also factor in the geographical concentration risks arising from operations being concentrated primarily in the state of Orissa. RIPPL also remains exposed to the volatility in raw material prices; though presence of price escalation clause in some contracts mitigates such risks to an extent. The ratings factor in the established track record of the company in the industry, with an experience of more than two decades, and a reputed client profile that reduces counterparty risks to a large extent. ICRA notes that the proposed diversification through execution of civil construction and electrification work contracts is likely to reduce the exposure to demand volatility and competition in any particular segment going forward, the ability to diversify successfully into other segments would remain critical to sustainability of its revenue. The ratings also factor in RIPPL's current order book position of around INR99.70 crore (including letter of intent received for rural electrification work), which provides revenue visibility over the near to medium term. In ICRA's opinion, the ability of the company to manage its working capital requirements efficiently and servicing its debt obligations in a timely manner would remain key rating sensitivities going forward. Established in 2003 as a sole proprietorship concern, Rukmani Engineering Works was reconstituted as a partnership firm in 2005 and derived its present status as a private limited company in 2008. RIPPL is primarily engaged in fabrication, erection and maintenance of heavy structures for thermal power plants and steel plants on job work basis for various public and private sector undertakings. It is also engaged in providing job work for erection of boilers and its auxiliaries, fabrication & erection of pipes, tanks etc. In the recent years, the company has also started participating in tenders for undertaking electrification and civil construction work like construction of roads and bridges etc. The company has its own fabrication yard at Angul, Orissa. Recent Results In 2014-15, RIPPL reported a net loss of INR6.79 crore on an operating income (OI) of INR28.17 crore as compared to a profit after tax (PAT) of around INR0.46 crore on an OI of INR53.02 crore in 2013-14. S.R. CHADDHA: ICRA Suspends B+ Rating on INR19.50cr Loan -------------------------------------------------------- S.R. Chaddha Industries Limited ICRA has suspended the [ICRA]B+ ratings for the INR19.50 Crore bank facilities of S.R. Chaddha Industries Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. S.V. ELECTRONICS: CRISIL Reaffirms B+ Rating on INR90MM Loan ------------------------------------------------------------ CRISIL's ratings on the bank facilities of S.V. Electronics Limited (SVEL) continue to reflect the company's large working capital requirement, below-average financial risk profile because of small net worth, moderate total outside liabilities to tangible net worth ratio, and weak debt protection metrics, and exposure to intense competition. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 20 CRISIL A4 (Reaffirmed) Cash Credit 90 CRISIL B+/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 50 CRISIL B+/Stable (Reaffirmed) These weaknesses are partially offset by SVEL's established position in the computer hardware, peripherals, and accessories market in Telangana and Andhra Pradesh, supported by promoters' extensive experience. Outlook: Stable CRISIL believes SVEL will continue to benefit over the medium term from its established regional position and promoters' extensive experience. The outlook may be revised to 'Positive' in case of substantial and sustained improvement in revenue, and profitability margins or net worth due to sizeable infusion of equity by promoters. Conversely, the outlook may be revised to 'Negative' if profitability margins decline sharply, or capital structure deteriorates because of larger-than-expected working capital requirement or debt-funded capital expenditure. Incorporated in 1999 and promoted by Mr. Venkateshwar Rao and his family members, SVEL deals in computer hardware, peripherals, and accessories and operates four retail stores in Hyderabad and one in Visakhapatnam. SHRI SIDDHBALI: ICRA Assigns 'B' Rating to INR5.81cr Loan --------------------------------------------------------- ICRA has assigned its [ICRA]B rating to INR6.00 crore fund based and proposed limits of Shri Siddhbali Agro Industries. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based limits 5.81 [ICRA] B; assigned Unallocated (Proposed Limits) 0.19 [ICRA ]B; assigned The rating is constrained by SSAI's limited track record of operations, as it commenced operations in August 2015. The rating is also constrained by the firm's limited product portfolio, with high product concentration risk (~95% of sales from wheat seeds), small scale of operations in a highly fragmented industry and its exposure to agro-climatic risks. ICRA also takes note of the firm's low net worth position and its partnership constitution which exposes it to risks of withdrawal of capital, dissolution etc. The rating however, draws comfort from the experience of the promoter family in the trading and processing of seeds. Going forward, the firm's ability to increase its scale of operations in a profitable manner while maintaining optimal working capital intensity, and diversify its product portfolio will be the key rating sensitivities. SSAI was established in 2015 as a partnership firm and is engaged in the grading and processing of wheat and paddy seeds with an installed capacity of 2 tonnes per hour, at its facility located in Kashipur (Uttarakhand). The company is professionally managed by Mr. Rahul Agarwal. Recent Results On a provisional basis, SSAI reported a profit after tax (PAT) of INR0.07 crore on an operating income of INR6.51 crore for the period August to December 2015. SHYAM FIBERS: CRISIL Reaffirms 'B' Rating on INR40MM Cash Loan -------------------------------------------------------------- CRISIL's rating on the bank facilities of Shyam Fibers continues to reflect the firm's small scale of operations, low operating profitability, and susceptibility to volatility in cotton prices and to intense competition in the cotton-ginning industry. The rating also reflects the below-average financial risk profile because of a weak capital structure. These weaknesses are partially offset by the extensive industry experience of, and funding support from, the proprietor. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 40 CRISIL B/Stable (Reaffirmed) Long Term Loan 15.1 CRISIL B/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 10.9 CRISIL B/Stable (Reaffirmed) Outlook: Stable CRISIL believes Shyam Fibers will continue to benefit over the medium term from the proprietor's extensive industry experience and funding support for ramping up operations at the new unit. The outlook may be revised to 'Positive' in case of significant improvement in revenue and profitability leading to a substantial increase in cash accrual, along with capital infusion and improved working capital management, resulting in a better financial risk profile. Conversely, the outlook may be revised to 'Negative' if revenue or profitability declines, or if the working capital requirements increase considerably, or if the firm undertakes a large, debt-funded capital expenditure programme, thus constraining liquidity and significantly impacting its debt servicing ability. Update The commencement of operations at the new plant on November 2014 helped the firm achieve sales of INR99 million in 2014-15 (refers to financial year, April 1 to March 31) against 14 million in 2013-14. The sales are estimated to improve to around INR150 million in 2015-16, which will be the first full year of operations. The firm is expected to sustain operating margin around 7 percent over the medium term. The financial risk profile continues to remain below average with net worth of INR7.8 million, gearing of above 5 times as on March 31, 2015 and weak debt protection metrics in FY 15. Liquidity continues to be stretched with cash accrual of around INR4.8 million against repayment obligations of INR4.2 million in FY 16. The bank limits remained moderately utilized by around 70 percent in the 12 months through January 2016. The proprietor, however, has supported liquidity with unsecured loans that stood at INR15 million as on March 31, 2015. Established in 2005, Shyam Fibers gins and presses cotton. It is a sole proprietorship firm owned by Mr. Sumit Agrawal and is managed by him with the help of his brother, Mr. Shyam Agrawal. The firm operates a cotton-ginning and-pressing unit at Borad village in Nandurbar district (Maharashtra) with total installed capacity of around 250 cotton bales per day. Its capacity was enhanced through the setting up of a new ginning unit, which commenced operations in November 2014. SREE GEETHANJALI: ICRA Assigns B+ Rating to INR8.75CR ST Loan ------------------------------------------------------------- ICRA has assigned the long-term rating of [ICRA]B+ to the INR7.00 crore1 fund based facilities and the INR0.25 crore unallocated facilities of Sree Geethanjali Constructions. ICRA has also assigned a short-term rating of [ICRA]A4 to the INR8.75 crore non-fund based facilities of the company. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Fund Based 7.00 [ICRA]B+/Assigned Long-term Unallocated 0.25 [ICRA]B+/Assigned Short-term Non-fund based 8.75 [ICRA]A4/Assigned The assigned ratings consider the small scale of operations of the firm, limiting its economies of scale. SGC's high customer and geographic concentration risks have also been considered, with its entire order book comprising orders from the Andhra Pradesh (AP) TRANSCO. The company faces project concentration risks as well, with two projects accounting for over 80% of its unexecuted order book as on September 30, 2015. The firm has witnessed significant decline in operating income in FY13 and FY14 owing to delays in project execution on the back of land acquisition issues; however, operating income witnessed a sharp growth in FY15 driven by higher order execution. The ratings also remain constrained by the financial profile of the company, characterized by stretched capital structure with gearing of 1.3x and TOL/TNW of 3.0x as on March 31, 2015, moderate coverage indicators and a stretched liquidity position as indicated by high average utilization of working capital limits on the back of significantly higher inventory and receivables. The ratings, nevertheless, favourably factor in the experience of the partners in the electrification of transmission lines business and price escalation clauses for major raw materials mitigating the risk of fluctuations in prices. Given the healthy unexecuted order book to OI ratio of 2.1x for FY15 providing revenue visibility over the medium term, timely execution of the current order book, while managing its working capital requirements effectively, would be SGC's key rating sensitivities. Sree Geenthanjali Constructions commenced its operations 1993 and has been involved in execution of electrical turnkey projects, supply Erection Testing Commissioning & Construction of sub- stations and transmission lines from 33/11kv to 220kv, majorly for lift irrigation and power projects and has executed projects in Andhra Pradesh. Recent Results SGC reported an operating income of INR28.8 crore with a net profit of INR2.1 crore in FY15 as against an operating income of INR2.1 crore with a net profit of INR0.2 crore in FY14. SURBHI FERRO: ICRA Reaffirms B Rating on INR11.30cr Loan -------------------------------------------------------- ICRA has reaffirmed its rating on the INR15.00 crore bank facilities of Surbhi Ferro Impex Private Limited at [ICRA]B. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Working Capital Limits 11.30 [ICRA]B; reaffirmed Unallocated 3.70 [ICRA]B; reaffirmed ICRA's rating continues to take into account SFIPL's relatively modest scale of operations on account of limited operational track record and the company's high working capital intensity, which has resulted in a stretched liquidity position, as reflected in the consistently high utilization of working capital facilities. This, coupled with the company's modest net worth has led to high gearing levels (3.6 times as on March 31, 2015). The rating is also constrained by the highly competitive and fragmented nature of the industry, which along with the trading nature of operations has resulted in low profitability indicators, and declining operating and net profit margins in 2014-15. Further, the company's profitability remains vulnerable to adverse movements in metal prices given the inventory levels required to be maintained by it, and exchange rate fluctuation in the absence of a hedging mechanism. However, ICRA draws comfort from the long experience of the promoters in the ferrous and non ferrous metal scrap trading business. The rating also derives comfort from the continued support of the promoters as evidenced by the infusion of equity and unsecured loans. Going forward, the company's ability to increase its scale of operations and improve its profitability will remain the key rating sensitivities. SFIPL was incorporated in 2010 by Mr. Rajesh Kumar Gadiya. The company is engaged in trading in ferrous and non ferrous metal scrap such as steel, brass, copper, zinc, aluminum etc. Recent Results In 2014-15, SFIPL reported operating income (OI) of INR47.1 crore and a profit after tax (PAT) of INR0.15 crore, as compared to OI of INR41.8 core and a PAT of INR0.15 crore in the previous year. SWASTIK TRADERS: ICRA Reaffirms B+ Rating on INR3.0cr LT Loan ------------------------------------------------------------- ICRA has reaffirmed its long term rating of [ICRA]B+ to the INR6.00 crore long term fund based and non fund based bank facilities of Swastik Traders. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term: Fund Based Limits 3.0 [ICRA]B+ ;reaffirmed Long Term: Non- Fund Based Limits 3.0 [ICRA]B+ reaffirmed The rating reaffirmation takes into account the firm's healthy revenue growth over the last few years and the satisfactory order book position with healthy pending order book position as on January 31st 2016 which provides revenue visibility over the medium term, though the scale of operations is expected to remain modest. The rating is however constrained by the firm's stretched liquidity position and modest cash accruals. The working capital intensive nature of operations coupled with the requirement to maintain security deposits with the government departments and also margin funding for the performance guarantees issued, has kept the funding requirements high. The assigned rating is also constrained by the high customer and geographical concentration with most of the orders being executed in the road construction segment for MPRRDA (Madhya Pradesh Rural Road Development Authority). As a result any delay in the execution of order or tendering process could have an adverse impact on the top-line of the firm. However, this reduces the counter-party credit risk as most of the receivables are outstanding from government departments. The assigned rating also takes into account the proprietorship nature of the firm, which limits its financial flexibility besides resulting in risk related to capital withdrawal by the proprietor; and also the fragmented nature of the industry which along with tender based system for orders, limits the pricing flexibility. The rating also takes into account the long track record of the firm in the road construction business, which along with firm's registration as class A contractor has resulted in regular repeat orders. The ability to maintain the revenue growth by securing new orders and improvement in the liquidity through infusion of long term funds and managing the working capital cycle besides regular enhancement in the working capital limits with revenue growth would be the key rating sensitivities. Swastik Traders was established as a proprietorship firm in 1986. The firm is engaged in construction and maintenance of roads in Madhya Pradesh with class A status which qualifies it to bid for large value contracts across the state. The firm majorly executes orders from Madhya Pradesh Rural Road Development Authority (MPRRDA) which are awarded under the Pradhan Mantri Gram Sadak Yojna (PMGSY). Recent Results In FY2015, ST recorded a net profit of INR0.97 crore on an operating income of INR30.29 crore, as against a net profit of INR0.47 crore on an operating income of INR17.29 crore in the previous year. SWASTIKA PRINTING: CRISIL Assigns B+ Rating to INR65MM Cash Loan ---------------------------------------------------------------- CRISIL has revoked the suspension of its rating on the long-term bank facility of Swastika Printing and Packaging (SPP) and has assigned its 'CRISIL B+/Stable' rating to the long-term bank facility. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 65 CRISIL B+/Stable The rating was previously suspended by CRISIL (see Rating Rationale dated December 31, 2015) as SPP had not provided the necessary information required for a rating review. SPP has now shared the requisite information enabling CRISIL to assign the rating to its bank facility. The rating reflects SPP's modest scale of operations in the fragmented packaging industry with exposure to raw material price volatility and large working capital requirements. The rating also reflects the below-average financial risk profile because of modest net worth, high gearing and weak debt protection metrics. These weaknesses are partially offset by the promoters' extensive experience in the industry and its established clientele. Outlook: Stable CRISIL believes SPP will continue to benefit from the extensive experience of the partners in the packaging industry and its established clientele. The outlook may be revised to 'Positive' if there is a sustainable increase in the scale of operations and profitability, resulting in improvement in the financial risk profile. Conversely, the outlook may be revised to 'Negative' if there is deterioration in the financial risk profile due to lower-than-expected cash accrual, or higher-than-expected working capital requirements or large, debt-funded capital expenditure. Set up in 2009, SPP is based in Kala Amb, Himachal Pradesh. The firm manufactures mono cartons and corrugated boxes used in industrial packaging. The firm is managed by its partners, Mr. Jatinder Kumar Arora and Mr. Narinder Kumar Gupta. TANMAY POLYFILMS: ICRA Assigns B- Rating to INR3.50cr Loan ---------------------------------------------------------- ICRA has assigned a long-term rating of [ICRA]B- to the INR6.50 crore fund based limits of Tanmay Polyfilms Private Limited. ICRA has also a short-term rating of [ICRA]A4 to the INR4.00 crore non-fund based bank limits of the company. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term loan 3.50 [ICRA]B- ; Assigned Cash credit 3.00 [ICRA]B- ; Assigned Letter of credit 4.00 [ICRA]A4 ; Assigned The assigned ratings are constrained by Tanmay Polyfilms Private Limited's (TPPL) small scale of operations and its limited track record in the flexible packaging industry. ICRA notes that the moderate utilization of installed capacity of manufacturing plant has led to losses in the last two years. Further, ICRA expects the company's capital structure and key credit metrics to remain stretched during the initial years of operations and ongoing capital expenditure plans. Also, the future cash flow adequacy and project metrics would be highly sensitive to the product establishment and the company's pricing power in the domestic market. The ratings also factor in the vulnerability of profitability to fluctuation in raw material prices and the competition from organised as well as unorganised players in the fragmented flexible packaging industry. The ratings, however, favourably factor in the company's moderately diversified client base with established customer relationships as reflected in the receipt of repeat orders received in last the two years. The ratings also considers the favourable demand prospects for the packaging industry driven by increasing consumerism, fast growing retail sector, changing lifestyle and rising demand from the rural sector. Mr. Mahindra Agrawal and Mr. Girdharilal Agrawal incorporated Tanmay Polyfilms Pvt Ltd in February 2013. The company is engaged in the business of manufacturing various types of plastic packaging films. The manufacturing operations got commenced in June 2013. The company has its registered office and manufacturing unit located at Jalna, Maharashtra. TEAM ENGINEERS: ICRA Reaffirms B- Rating on INR6.25cr Loan ---------------------------------------------------------- ICRA has reaffirmed the long-term rating of [ICRA]B- to INR6.25 crore fund based limits and INR1.25 crore unallocated limits of Team Engineers Advance Technologies India Private Limited. The reaffirmation of the rating continue to factor in the modest scale of operations, high product obsolescence and concentration risk with analog modems business contributing ~75% of the total sales value of the company and the high competitive intensity in the AMR (Automatic Meter Reading) business, which contributes ~31% of the total sales value of the company. In FY2015, the operating income of the company witnessed healthy growth of 49.6%; however, operating margins declined to 4.74% from 8.15% in FY2014 on account of competitive bidding in order to improve the scale of operations. The ratings are further constrained by high gearing, weak coverage indicators, and the high levels of inventory and receivables position leading to stretched liquidity as reflected in the over-utilizations in the cash credit facility of the company. High reliance on few clients for majority of its revenues and modest scale of operations limits the company's bargaining power with customers. However, the ratings are supported by the vast experience of the promoters in the manufacturing of telecommunication equipments and the geographically diversified presence of the company. Going forward the ability of the company to improve its scale of operations, given the high product obsolescence risk, and margins, while effectively managing its receivables and working capital, would be the key rating sensitivities. Team Engineers was incorporated as a partnership firm in 1980 and subsequently converted into a private limited company in August'2011 and named Team Engineers Advance Technologies India Private Limited (TEATIPL). TEATIPL is based out of Hyderabad and is an ISO 9001:2008 certified company. In the initial years, the firm was engaged in the business of developing emergency lighting systems for general and industrial applications. Since 1990s, the company has migrated to Digital Subscriber Line (DSL) based technologies and currently the firm has a product portfolio of 30 products which includes DSL modems, Ethernet over TDM converters, Ethernet over Fiber, Ethernet over DSL and other Ethernet access devices which are deployed for various telecommunication applications. Recent Result As per audited FY2015 results, TEATIPL recorded an operating income of INR21.22 crore with a net profit of INR0.07 crore. According to audited FY2014 results, TEATIPL recorded an operating income of INR14.18 crore with a net profit of INR0.08 crore. THANGA PRATAPH: ICRA Suspends C+ Rating on INR5.0cr Term Loan ------------------------------------------------------------- ICRA has suspended [ICRA]C+ rating assigned to the INR2.44 crore term loan facilities , INR5.00 crore fund based facilities, INR0.67 crore non-fund based facilities and INR3.81 crore proposed facilities of Thanga Prataph Spinning Mills Private Limited. ICRA has also suspended the short-term of [ICRA]A4 assigned to the INR1.00 crore non-fund based facilities of the entity. According to its suspension policy, ICRA may suspend any rating outstanding if in its opinion there is insufficient information to assess such rating during the surveillance exercise. U.S. IMPEX: CRISIL Reaffirms 'B' Rating on INR87.5MM Cash Loan -------------------------------------------------------------- CRISIL's rating on the long-term bank facility of U.S. Impex (USI) continues to reflect the firm's weak financial risk profile because of a high total outside liabilities to tangible net worth ratio and weak interest coverage ratio. The rating also factors in a small scale of operations in the non-ferrous alloys trading industry. These rating weaknesses are partially offset by the extensive industry experience of the firm's promoter and its established and diversified clientele. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 87.5 CRISIL B/Stable (Reaffirmed) Outlook: Stable CRISIL believes USI 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 significant growth in turnover along with sustained profitability, leading to higher cash accrual. Conversely, the outlook may be revised to 'Negative' if liquidity weakens substantially because of large working capital requirement. USI was set up in 1994 as a proprietorship firm in Delhi by Mr. Dinesh Mittal. The firm trades in various non-ferrous metals and scrap, such as zinc, aluminium, brass, and copper, with zinc accounting for more than 50 per cent of its revenue. Net profit was INR2.05 million on net sales of INR511 million in 2014-15 (refers to financial year, April 1 to March 31), against a net profit of INR2.07 million on net sales of INR496 million in 2013-14. UMA RANI: ICRA Assigns C+ Rating to INR3.15cr Term Loan ------------------------------------------------------- ICRA has assigned a long-term rating of [ICRA]C+ to the INR5.40 crore fund based bank facilities of Uma Rani Agrotech Private Limited. ICRA has also assigned the short-term rating of [ICRA]A4 to the INR0.25 crore non-fund based bank facilities of URAPL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Term Loan 3.15 [ICRA]C+ Assigned Fund Based Cash Credit 2.25 [ICRA]C+ Assigned Non-Fund Based Bank Guarantee 0.25 [ICRA]A4 Assigned The assigned ratings take into account URAPL's small scale of operations and weak financial profile as reflected by aggressive capital structure, depressed coverage indicators and weak cash accruals relative to its debt repayment obligations. The ratings also take into consideration the intensely competitive nature of the industry, characterized by a large number of small players, which is likely to keep the margins of the entity under check. ICRA notes its exposure to agro-climatic risks with paddy being an agriculture commodity, along with its vulnerability to adverse changes in Government policies towards agro-based commodities such as rice. URAPL's high working capital intensity of business operations, which adversely impacts its liquidity position, is another concern. The ratings, however, draws comfort from the prior experience of the promoters in the rice trading business, and the entity's presence in a major paddy growing area, resulting in easy availability of paddy. In ICRA's opinion, URAPL's ability to improve profitability while scaling up operations and managing its working capital requirements efficiently, would remain the critical determinants of its credit risk profile, going forward. Established in 2010, URAPLL is engaged in milling of par boiled rice; and has an installed production capacity of 28,800 MTPA of rice. The rice mill started commercial production from February 2014. ZERO MICROFINANCE: CRISIL Cuts Rating on INR150MM Loan to B+ ------------------------------------------------------------ CRISIL has downgraded its rating on the bank facility of Zero Microfinance and Savings Support Foundation (ZMF, a part of the ALW group) to 'CRISIL B+/Stable' from 'CRISIL BB-/ Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term 150 CRISIL B+/Stable (Downgraded Bank Loan Facility from 'CRISIL BB-/Stable') The downgrade reflects deterioration in ALW group's business profile in 2015-16 (refers to financial year April 1 to March 31) resulting from replacement of ALW group's electronic technology by SBI for its business correspondent services. This has resulted in a decline in revenue to INR500-550 million in 2015-16 from INR630 million in 2014-15. Furthermore, there has been a deterioration in the net worth of the company over the past years owing to large losses on account of high fixed costs associated with software development and maintenance leading to a weak capital structure reflected in a gearing of around 49 times as on March 31 2015. CRISIL believes that the ability of the management to venture into new business models using its technology platform thereby leading to improvement in business risk profile will remain a key rating sensitivity factor. The rating reflects the ALW group's strong relationship with key stakeholders coupled with an established network and market reach. These strengths are partially offset by the weak financial risk profile because of low net-worth, coupled challenges in the business correspondence business. For arriving at the rating, CRISIL has consolidated the business and financial risk profiles of ZMF and A Little World Private Limited (ALW). This is because both entities, together referred to as the ALW group, are managed by the same promoters and have common business. There is large financial support extended by ALW to ZMF. Both entities are expected to be merged over the near to medium term. Outlook: Stable CRISIL believes the ALW group will continue to benefit from the strong relationship with key stakeholders and established market reach. The outlook may be revised to 'Positive' if the group overcomes the challenges in the business correspondence segment and sustains its operation profitability along with large capital infusion leading to improvement in the financial risk profile. Conversely, the outlook may be revised to 'Negative' in case of deterioration in its earning profile thereby resulting in further erosion in its capitalization. ALW, incorporated in 2000, is engaged in developing and providing licensed technology for enabling smart cards and other electronic technology-based commerce, electronic-identity systems, and trading and delivery systems. ZMF operates as one of the largest business correspondents for State Bank of India (SBI, rated 'CRISIL AAA/FAAA/Stable/CRISIL A1+') and is engaged in the extension of banking services in the rural and urban areas of India where banking penetration is limited. The group is managed and operated by Mr. Anurag Gupta. =============== M A L A Y S I A =============== 1MALAYSIA: Board Offers to Resign After Inquiry Calls for Probe --------------------------------------------------------------- The Wall Street Journal reports that the board of directors of an embattled Malaysian state development fund offered to resign after a parliamentary inquiry found that billions of dollars went missing and recommended that senior management face a criminal investigation. According to the Journal, the Public Accounts Committee's findings mark the first time a Malaysian investigating body has leveled allegations of fraud at 1Malaysia Development Bhd., or 1MDB, which is the focus of corruption investigations in Malaysia and at least six other nations. The Journal relates that in response to the report, 1MDB's board of directors offered its collective resignation on April 7. "The board has successfully steered 1MDB through a uniquely challenging period and trusts that, with the release of the PAC report, a line has been drawn," the board said in a statement. 1MDB has said previously that it has cooperated with authorities and would continue to do so. On April 7, the fund again denied any wrongdoing, says the Journal. The Journal says the report didn't mention Prime Minister Najib Razak, who founded 1MDB in 2009 and heads its separate board of advisers, prompting critics to suggest the report and the directors' offer to resign were designed to shield the prime minister. "It's all planned that way; so we could attribute blame on [the board] but exonerate the prime minister. It means nothing," former law and cabinet minister Zaid Ibrahim, a leader in an alliance opposed to Mr. Najib, said of the report, according to the Journal. The Wall Street Journal, citing Malaysian and global investigations, has reported how investigators have found over $1 billion was transferred to Mr. Najib's personal bank accounts, the majority originating from 1MDB and moving via a web of intermediary entities. Mr. Najib has denied wrongdoing or taking money for personal gain, the Journal states. On April 7, Mr. Najib said in a statement that the parliamentary report "identified weaknesses in 1MDB's capital structure and management. We will study and act on the report's recommendations. We must ensure that lessons are learned, and action will be taken if any evidence of wrongdoing is found," the Journal relays. About 1MDB Kuala Lumpur-based 1Malaysia Development Bhd (1MDB) operates as a government agency. The Company offers financial assistance, analysis, and advice through investors, corporations, and consultants to startups and growth companies. 1MDB focuses on investments with strategic value and high multiplier effects on the economy, particularly in energy, real estate, tourism, and agribusiness. As reported in the Troubled Company Reporter-Asia Pacific on July 23, 2015, Reuters said Singapore Police Force has frozen two bank accounts to help with an investigation in to Malaysia's troubled state-owned investment fund 1Malaysia Development Bhd (1MDB), which is being probed by authorities in Malaysia for financial mismanagement and graft. Reuters said the freezing of the Singapore bank accounts follows a similar move in Malaysia where a task force investigating 1MDB said earlier in July that it had frozen half a dozen bank accounts following a media report that nearly $700 million had been transferred to an account of Malaysia's Prime Minister Najib Razak. The Wall Street Journal reported on July 3, 2015, that investigators looking into 1MDB had traced close to US$700 million of deposits moving through Falcon Bank in Singapore into personal bank accounts in Malaysia belonging to Najib, Reuters related. The TCR-AP, citing Bloomberg News, reported on Nov. 26, 2015, that 1MDB agreed to sell its power assets to China General Nuclear Power Corp. for MYR9.83 billion ($2.3 billion) as the state investment company moved one step closer to winding down operations after its mounting debt raised investor concern. Bloomberg related that the company faced cash-flow problems after a planned initial public offering of Edra faced delays amid unfavorable market conditions, President Arul Kanda said Oct. 31, 2015. The listing plan was later canceled as the company opted for a sale of the assets, Bloomberg noted. ==================== N E W Z E A L A N D ==================== FELTEX CARPET: 2004 Prospectus Omitted Key Info, Says Class Suit ---------------------------------------------------------------- Stuff.co.nz reports that Feltex Carpet's 2004 prospectus omitted key disclosures which could have acted as a warning to prudent investors, a class action against the company's former directors, owners and sale managers claims. Stuff.co.nz relates that on April 11 the Court of Appeal heard the first arguments of lawyers representing Eric Houghton, the lead plaintiff in class action on behalf of around 3,600 people who invested in the carpet maker. Little over two years after its 2004 initial public offering (IPO), the company collapsed, wiping out the NZ$250 million which thousands of shareholders injected into the company, the report recalls. But Colin Carruthers QC, appearing on behalf of Mr. Houghton and other investors, argued that Justice Robert Dobson applied a test which was too high and "undermined the nature of the obligation that the case has recognised". The test under the Securities Act, was that the contents of the prospectus contained untruths which would influence "prudent, but non-expert investors" Mr. Carruthers, as cited by Stuff.co.nz, said. According to the report, the appellants said the prospectus represented "much more of a marketing document" than an outline of the disclosures that investors would have needed, Carruthers said. Stuff.co.nz says the presentation could have given investors greater confidence that the projections in the document would be met. In the first day of what is expected to be at least four days of arguments, Mr. Carruthers said the prospectus ignored adverse trends which had been presented to the board of directors before the flotation, showing the closing months of the 2003-04 financial year were going to be "difficult," Stuff.co.nz relates. Stuff.co.nz says despite concerns about sales in April and May, the prospectus projected an increase in sales equivalent to an extra 3.8% in revenue. "It is not a reasonable assumption to project an increase in sales volume when the trend is down," Stuff.co.nz quotes Mr. Carruthers as saying. The prospectus also did not disclose that expensive machinery the company had purchased to manufacture woollen carpet was not working, or the extent to which its revenue in Australia was derived from a government grant, Mr. Carruthers told the court, Stuff.co.nz relays. The case is expected to continue until at least April 14, adds Stuff.co.nz. About Feltex Carpets Headquartered in Auckland, New Zealand, and established more than 50 years ago, Feltex Carpets Limited -- http://www.feltex.com/-- is a manufacturer of superior-quality carpet. The Feltex operation included a wool scouring plant, six spinning mills, three tufted carpet mills, a woven carpet mill and offices in New Zealand, Australia and the United States. ANZ Bank placed the company in receivership on Sept. 22, 2006, and named Colin Nicol, Peter Anderson and Kerryn Downey, of McGrathNicol+Partners, as receivers and managers. The TCR-AP reported on Oct. 4, 2006, that Godfrey Hirst acquired Feltex as a going concern, including its assets and undertakings in New Zealand, Australia, and the United States. Proceeds of the sale will be used to ease the company's NZ$128-million debt to ANZ Bank. On Dec. 13, 2006, the High Court in Auckland ruled in favor of an Application by the Shareholders Association against Feltex Carpets putting the carpet maker into liquidation. John Vague was appointed as liquidator. MANCHESTER UNITY: S&P Lowers ICR to 'B+'; Outlook Negative ---------------------------------------------------------- Standard & Poor's Ratings Services said it has lowered its financial strength and issuer credit ratings on Manchester Unity Friendly Society (MUFS) to 'B+' from 'BB-'. The outlook is negative. The downgrade reflects the unexpected and substantial fall in recent weeks of MUFS' regulatory solvency ratio driven by material falls in the discount rate (New Zealand 10-year swap rate). The materiality of the reduction in capital adequacy over such a short period has increased S&P's concern over the extreme sensitivity of MUFS' capital adequacy to changes in the discount rate. With the recent step down in MUFS' solvency ratio, S&P's outlook now reflects a greater risk that the insurer will breach the 1.2x regulatory capital requirement over the next year for a prolonged period. The 'B+' ratings reflect S&P's view of the insurer's fair business risk profile and very weak financial risk profile, which lead to an anchor of 'bb-'. The negative outlook reflects the prospect for further pressure on MUFS' solvency ratio such that the 1.2x coverage is not exceeded. While S&P's expectation is that MUFS will actively manage its asset portfolio to support its capital position should it appear the 1.2x ratio has or will be breached, S&P nevertheless believes the insurer has limited financial flexibility in this regard. Should the solvency ratio fall below 1.2x with no expectation of an immediate improvement, S&P would lower the ratings. S&P would consider revising the outlook to stable in the event the solvency ratio showed sustained improvement--indicatively above 1.5x--and stability. An upgrade in the short-term is extremely unlikely and would require: -- The regulatory solvency ratio approaching or exceeding 2.0x with an expectation that such strength would continue over the medium term; and -- There was evidence of an underlying improvement in regulatory capital adequacy, either through internally generated capital or as a result of lower solvency requirements that are unrelated to increases in the discount rate. ==================== S O U T H K O R E A ==================== HANJIN SHIPPING: Woes Cause Korean Air Bond Issue Failure --------------------------------------------------------- Park Hyong-ki at The Korea Herald reports that Korean Air failed to attract investors to its bonds due to growing risks stemming from its cash-strapped subsidiary Hanjin Shipping, according to news reports that cited investment banking sources. According to the report, the listed Korean flag carrier, with a credit rating of BBB-plus, was seeking to issue bonds worth KRW250 billion ($218 million) with a two-year maturity through its underwriters -- Dongbu Securities, Kiwoom Securities, Korea Investment & Securities and Hyundai Securities. However, the company only saw institutional investors willing to invest about KRW7 billion in Korean Air's bonds during the book building process. The Korea Herald relates that Noh Sang-won, an analyst at Dongbu Securities, said that Korean Air faces risks due to a liquidity shortage at Hanjin Shipping. "Despite expectations of improved earnings, its subsidiary risk remains a negative factor that can affect the value of Korean Air," Noh said in his analysis report, the Korea Herald relays. "It is highly likely that Korean Air will further provide (liquidity) support to Hanjin Shipping." The Korea Herald notes that Korean Air lent KRW250 billion to Hanjin in 2013, and invested KRW400 billion in new shares issued by Hanjin in 2014. The carrier also invested KRW220 billion in perpetual bonds of Hanjin early this year. Hanjin Shipping recently sold its London office building to improve its finances. Korean Air, which has a 33% stake in Hanjin Shipping, is expected to post an operating profit of about KRW266 billion in the first quarter of this year, a 40% increase from a year ago, on growing flight services, adds the Korea Herald. As reported in the Troubled Company Reporter-Asia Pacific on Nov. 18, 2013, Bloomberg News said Hanjin Shipping Co.'s Chief Executive Officer Kim Young Min resigned, taking responsibility for two successive years of losses at South Korea's largest shipper and a delay in getting financial support from creditors. The TCR-AP, citing The Korea Times, reported on Nov. 5, 2013, that Hanjin Shipping said it will borrow KRW150 billion ($140 million) in financial support from Korean Air Lines, another major affiliate of Hanjin Group, to stay afloat. Hanjin Shipping spokeswoman Sonya Cho said Hanjin Shipping will use the money for one year with an interest rate of 5.6 percent. Hanjin Holdings owns a 36.2 percent stake in Hanjin Shipping under the wing of Hanjin Group, the country's 10th-biggest shipping-to- airline conglomerate by assets, the report discloses. Korea-based Hanjin Shipping Co., Ltd. engages in the provision of marine transportation services. The Company mainly provides four categories of services: container service, bulk service, terminal service and third party logistics (3PL) service. ============= V I E T N A M ============= VIETNAM EXPORT: S&P Puts 'B+' CCR on CreditWatch Negative --------------------------------------------------------- Standard & Poor's Ratings Services placed its 'B+' long-term counterparty credit rating and 'axBB/axB' ASEAN regional scale ratings on Vietnam Export Import Commercial Joint Stock Bank (Eximbank) on CreditWatch with negative implications. At the same time, S&P affirmed the 'B' short-term counterparty credit rating. "We placed the ratings on Eximbank on CreditWatch with negative implications because we expect losses from the financial restatement to strain the bank's capital position," said Standard & Poor's credit analyst Ivan Tan. "We also see a risk that the bank may not be able to return to profitability in view of the challenging operating environment." The Ho Chi Minh Stock Exchange placed Eximbank on its warning list for companies suffering two consecutive years of losses. Eximbank's financial year 2014 net profit was retroactively adjusted to a loss of Vietnamese dongs (VND) 835 billion from a VND114 billion profit; it reported a net loss of VND817 billion in financial year 2015. S&P understands the State Bank of Vietnam (SBV), the regulator, discovered accounting irregularities in Eximbank that necessitated the restatement. Standard & Poor's views aggressive accounting practices as a credit weakness, with negative implications to the reputation and management of the bank. S&P placed the ratings on CreditWatch because it believes these developments would strain Eximbank's financial profile and business position. S&P also believes asset quality and credit cost pressure could delay the recovery in the group's performance. However, S&P notes that management has adopted a defensive strategy of selective and slower loans growth since 2014. The recent reduction in risk-adjusted assets in 2015 has also buffered the bank's capitalization, albeit insufficient to offset the losses. It remains uncertain if Eximbank can return to profitability in 2016. "We aim to resolve the CreditWatch placement within three months, following our review of Eximbank's credit profile, based on its restated financial statements and our expectations of future performance," Mr. Tan said. "We intend to review our expectations for the bank's risk- adjusted capital ratio in the context of its profitability trend, asset quality, credit costs, and risk asset growth. We will also assess the implication of the stock exchange's warning and aggressive accounting practices on Eximbank's business position, reputation, and franchise," he added. S&P may lower the ratings on Eximbank if S&P believes the bank's intrinsic creditworthiness has deteriorated. This would most likely happen if S&P believes the bank's capitalization and earnings will remain under pressure, particularly its prospect of recovering to profitability in 2016. S&P may also lower the ratings if asset quality deteriorates, leading to heightened credit costs, or if the bank suffers reputational damage or loss of confidence as a result of accounting irregularities or reputational damage. S&P may affirm its ratings on Eximbank if S&P believes the bank can preserve its capitalization through a combination of earnings recovery and continued risk asset reduction. This should also be accompanied by the absence of long-term franchise or reputational damage. =============== X X X X X X X X =============== * BOND PRICING: For the Week April 4 to April 8, 2016 ----------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRALIA --------- BARMINCO FINANCE PTY 9.00 6/1/2018 USD 73.75 BARMINCO FINANCE PTY 9.00 6/1/2018 USD 71.00 BOART LONGYEAR MANAG 7.00 4/1/2021 USD 37.13 BOART LONGYEAR MANAG 7.00 4/1/2021 USD 37.13 CML GROUP LTD 7.50 5/18/2021 AUD 70.94 CML GROUP LTD 9.00 1/29/2020 AUD 1.01 CRATER GOLD MINING L 10.00 8/18/2017 AUD 23.00 CROWN RESORTS LTD 6.33 4/23/2075 AUD 68.77 EMECO PTY LTD 9.88 3/15/2019 USD 48.50 EMECO PTY LTD 9.88 3/15/2019 USD 47.75 IMF BENTHAM LTD 6.52 6/30/2019 AUD 73.13 KBL MINING LTD 12.00 2/16/2017 AUD 0.25 KEYBRIDGE CAPITAL LT 7.00 7/31/2020 AUD 0.69 MCPHERSON'S LTD 7.10 3/31/2021 AUD 73.63 MIDWEST VANADIUM PTY 11.50 2/15/2018 USD 6.00 MIDWEST VANADIUM PTY 11.50 2/15/2018 USD 6.50 STOKES LTD 10.00 6/30/2017 AUD 0.40 TREASURY CORP OF VIC 0.50 11/12/2030 AUD 68.39 CHINA ----- ANSHAN CITY CONSTRUC 8.25 3/5/2019 CNY 65.37 ANSHAN CITY CONSTRUC 8.25 3/5/2019 CNY 65.50 BAICHENG ZHONGXING U 7.00 12/18/2019 CNY 72.08 BANGBU CITY INVESTME 5.78 8/10/2017 CNY 57.05 BEIJING ECONOMIC TEC 5.29 3/6/2018 CNY 72.00 CHANGSHA HIGH TECHNO 7.30 11/22/2017 CNY 73.01 CHANGSHU CITY OPERAT 8.00 1/16/2019 CNY 64.72 CHANGSHU CITY OPERAT 8.00 1/16/2019 CNY 64.79 CHANGZHOU INVESTMENT 5.80 7/1/2016 CNY 40.24 CHANGZHOU INVESTMENT 5.80 7/1/2016 CNY 40.21 CHANGZHOU WUJIN CITY 5.42 6/9/2016 CNY 50.19 CHANGZHOU WUJIN CITY 5.42 6/9/2016 CNY 50.24 CHENGDU XINCHENG XIC 8.35 3/19/2019 CNY 65.20 CHENGDU XINCHENG XIC 8.35 3/19/2019 CNY 66.98 CHONGQING HECHUAN UR 6.95 1/6/2018 CNY 72.85 CHONGQING HECHUAN UR 6.95 1/6/2018 CNY 73.10 CHONGQING JIANGJIN H 6.95 1/6/2018 CNY 72.08 CHONGQING JIANGJIN H 6.95 1/6/2018 CNY 70.55 CHONGQING NAN'AN DIS 6.29 12/24/2017 CNY 68.30 CHONGQING NAN'AN DIS 6.29 12/24/2017 CNY 61.86 CHONGQING YONGCHUAN 7.49 3/14/2018 CNY 73.82 CHONGQING YONGCHUAN 7.49 3/14/2018 CNY 74.21 CHONGQING YUXING CON 7.29 12/8/2017 CNY 72.74 DANDONG CITY DEVELOP 6.21 9/6/2017 CNY 71.41 DANYANG INVESTMENT G 8.10 3/6/2019 CNY 85.38 DANYANG INVESTMENT G 6.30 6/3/2016 CNY 40.15 DANYANG INVESTMENT G 8.10 3/6/2019 CNY 64.59 DATONG ECONOMIC CONS 6.50 6/1/2017 CNY 72.51 DATONG ECONOMIC CONS 6.50 6/1/2017 CNY 71.30 DRILL RIGS HOLDINGS 6.50 10/1/2017 USD 60.50 DRILL RIGS HOLDINGS 6.50 10/1/2017 USD 56.95 ERDOS DONGSHENG CITY 8.40 2/28/2018 CNY 50.11 ERDOS DONGSHENG CITY 8.40 2/28/2018 CNY 47.60 GRANDBLUE ENVIRONMEN 6.40 7/7/2016 CNY 70.39 GUIYANG ECO&TECH DEV 8.42 3/27/2019 CNY 64.89 GUOAO INVESTMENT DEV 6.89 10/29/2018 CNY 68.32 HAIAN COUNTY CITY CO 8.35 3/28/2018 CNY 55.18 HAIAN COUNTY CITY CO 8.35 3/28/2018 CNY 53.51 HAIMEN CITY DEVELOPM 8.35 3/20/2019 CNY 62.51 HAIMEN CITY DEVELOPM 8.35 3/20/2019 CNY 64.80 HANGZHOU XIAOSHAN ST 6.90 11/22/2016 CNY 39.00 HANGZHOU XIAOSHAN ST 6.90 11/22/2016 CNY 41.02 HANGZHOU YUHANG CITY 7.55 3/29/2019 CNY 64.21 HANZHONG CITY CONSTR 7.48 3/14/2018 CNY 73.80 HANZHONG CITY CONSTR 7.48 3/14/2018 CNY 74.41 HEBEI RONG TOU HOLDI 6.76 7/8/2021 CNY 73.29 HEFEI TAOHUA INDUSTR 8.79 3/27/2019 CNY 65.68 HEFEI TAOHUA INDUSTR 8.79 3/27/2019 CNY 63.30 HEILONGJIANG HECHENG 7.78 11/17/2016 CNY 41.09 HEILONGJIANG HECHENG 7.78 11/17/2016 CNY 40.82 HUAIAN CITY URBAN AS 7.15 12/21/2016 CNY 40.85 HUAIAN CITY WATER AS 8.25 3/8/2019 CNY 66.67 HUAIAN CITY WATER AS 8.25 3/8/2019 CNY 71.48 HUAIAN DEVELOPMENT H 6.80 3/24/2017 CNY 43.13 HUAIAN QINGHE NEW AR 6.79 4/29/2017 CNY 72.11 HUAIHUA CITY CONSTRU 8.00 3/22/2018 CNY 52.99 HUAIHUA CITY CONSTRU 8.00 3/22/2018 CNY 52.56 HUZHOU MUNICIPAL CON 7.02 12/21/2017 CNY 71.90 HUZHOU NANXUN STATE- 8.15 3/31/2019 CNY 64.61 HUZHOU WUXING NANTAI 7.71 2/17/2018 CNY 72.48 JIAMUSI NEW ERA INFR 8.25 3/22/2019 CNY 65.99 JIAMUSI NEW ERA INFR 8.25 3/22/2019 CNY 64.38 JIANGDONG HOLDING GR 6.90 3/27/2019 CNY 62.92 JIANGDU XINYUAN INDU 8.10 3/23/2019 CNY 64.50 JIANGDU XINYUAN INDU 8.10 3/23/2019 CNY 63.31 JIANGSU HUAJING ASSE 5.68 9/28/2017 CNY 50.96 JIANGSU HUAJING ASSE 5.68 9/28/2017 CNY 51.39 JIAXING CULTURE FAMO 8.16 3/8/2019 CNY 66.68 JINAN CITY CONSTRUCT 6.98 3/26/2018 CNY 53.01 JINAN CITY CONSTRUCT 6.98 3/26/2018 CNY 52.58 JINGJIANG BINJIANG X 6.80 10/23/2018 CNY 66.03 JINING CITY CONSTRUC 8.30 12/31/2018 CNY 64.99 JINTAN CONSTRUCTION 8.30 3/14/2019 CNY 65.48 JINTAN CONSTRUCTION 8.30 3/14/2019 CNY 65.00 JIUJIANG CITY CONSTR 8.49 2/23/2019 CNY 86.00 JIUJIANG CITY CONSTR 8.49 2/23/2019 CNY 66.75 KUNMING WUHUA DISTRI 8.60 3/15/2018 CNY 53.51 KUNMING WUHUA DISTRI 8.60 3/15/2018 CNY 53.88 LAIWU CITY ECONOMIC 6.50 3/1/2018 CNY 62.68 LESHAN STATE-OWNED A 6.99 3/18/2018 CNY 73.98 LESHAN STATE-OWNED A 6.99 3/18/2018 CNY 73.98 LIAOYUAN STATE-OWNED 8.17 3/13/2019 CNY 63.00 LIAOYUAN STATE-OWNED 8.17 3/13/2019 CNY 63.88 LIAOYUAN STATE-OWNED 7.80 1/26/2017 CNY 41.05 LIAOYUAN STATE-OWNED 7.80 1/26/2017 CNY 41.02 LINAN CITY CONSTRUCT 8.15 3/9/2018 CNY 52.81 LINAN CITY CONSTRUCT 8.15 3/9/2018 CNY 53.44 LINHAI CITY INFRASTR 7.98 11/6/2016 CNY 51.28 LINHAI CITY INFRASTR 7.98 11/6/2016 CNY 51.00 LINYI INVESTMENT DEV 8.10 3/27/2018 CNY 53.61 LIUZHOU DONGCHENG IN 8.30 2/15/2019 CNY 65.00 LIUZHOU DONGCHENG IN 8.30 2/15/2019 CNY 63.93 LONGHAI STATE-OWNED 8.25 12/2/2017 CNY 75.00 LONGHAI STATE-OWNED 8.25 12/2/2017 CNY 73.93 LUOHE CITY CONSTRUCT 6.81 3/30/2017 CNY 31.07 LUOHE CITY CONSTRUCT 6.81 3/30/2017 CNY 30.81 NANJING HEXI NEW TOW 6.40 2/3/2017 CNY 61.61 NANJING YURUN FOODS 5.27 5/13/2016 CNY 51.10 NANTONG STATE-OWNED 6.72 11/13/2016 CNY 41.10 NANTONG STATE-OWNED 6.72 11/13/2016 CNY 40.76 NEIMENGGU XINLINGOL 7.62 2/25/2018 CNY 72.94 NINGBO CITY ZHENHAI 6.48 4/12/2017 CNY 71.01 NINGBO URBAN CONSTRU 7.39 3/1/2018 CNY 51.08 NINGBO URBAN CONSTRU 7.39 3/1/2018 CNY 52.74 NINGDE CITY STATE-OW 6.25 10/21/2017 CNY 42.31 NINGHAI COUNTY CITY 8.60 12/31/2017 CNY 74.67 NONGGONGSHANG REAL E 6.29 10/11/2017 CNY 72.72 OCEAN RIG UDW INC 7.25 4/1/2019 USD 58.00 OCEAN RIG UDW INC 7.25 4/1/2019 USD 61.00 PANJIN CONSTRUCTION 7.70 12/16/2016 CNY 41.14 PANJIN CONSTRUCTION 7.70 12/16/2016 CNY 40.85 PUTIAN STATE-OWNED A 8.10 3/21/2019 CNY 85.03 PUTIAN STATE-OWNED A 8.10 3/21/2019 CNY 65.56 QINGDAO CITY CONSTRU 6.89 2/16/2019 CNY 63.53 QINGDAO CITY CONSTRU 6.19 2/16/2017 CNY 40.37 QINGDAO CITY CONSTRU 6.19 2/16/2017 CNY 41.00 QINGDAO CITY CONSTRU 6.89 2/16/2019 CNY 63.74 QINGZHOU HONGYUAN PU 6.50 5/22/2019 CNY 40.25 QINGZHOU HONGYUAN PU 6.50 5/22/2019 CNY 40.99 QUNSHAN HUAQIAO INTE 7.98 12/30/2018 CNY 64.54 SHANDONG TAIFENG MIN 5.80 3/12/2020 CNY 74.06 SHANDONG TAIFENG MIN 5.80 3/12/2020 CNY 72.34 SHANGHAI REAL ESTATE 6.12 5/17/2017 CNY 71.57 SICHUAN DEVELOPMENT 5.40 11/10/2017 CNY 71.88 SUQIAN ECONOMIC DEVE 7.50 3/26/2019 CNY 64.95 SUQIAN ECONOMIC DEVE 7.50 3/26/2019 CNY 84.60 SUZHOU CONSTRUCTION 7.45 3/12/2019 CNY 64.39 TAIAN CITY TAISHAN I 5.79 3/2/2018 CNY 73.00 TAIXING ZHONGXING ST 8.29 3/27/2018 CNY 55.43 TAIXING ZHONGXING ST 8.29 3/27/2018 CNY 53.50 TAIZHOU CITY CONSTRU 6.90 1/25/2017 CNY 41.05 TAIZHOU HAILING ASSE 8.52 3/21/2019 CNY 66.63 TAIZHOU HAILING ASSE 8.52 3/21/2019 CNY 65.34 TIANJIN BINHAI NEW A 5.00 3/13/2018 CNY 72.06 TIANJIN BINHAI NEW A 5.00 3/13/2018 CNY 92.20 TIANJIN ECONOMIC TEC 6.20 12/3/2019 CNY 73.79 TIANJIN HI-TECH INDU 7.80 3/27/2019 CNY 66.38 TIANJIN HI-TECH INDU 7.80 3/27/2019 CNY 64.35 TIANJING HANBIN INVE 8.39 3/22/2019 CNY 65.20 TIGER FOREST & PAPER 5.38 6/14/2017 CNY 74.18 TONGLIAO CITY INVEST 5.98 9/1/2017 CNY 72.13 TONGLIAO CITY INVEST 5.98 9/1/2017 CNY 71.90 VANZIP INVESTMENT GR 7.92 2/4/2019 CNY 66.96 WUHAI CITY CONSTRUCT 8.20 3/31/2019 CNY 84.75 WUHAI CITY CONSTRUCT 8.20 3/31/2019 CNY 65.15 WUHU ECONOMIC TECHNO 6.70 6/8/2018 CNY 77.95 WUXI COMMUNICATIONS 5.58 7/8/2016 CNY 50.10 WUXI COMMUNICATIONS 5.58 7/8/2016 CNY 50.32 XIANGTAN CITY CONSTR 8.00 3/16/2019 CNY 65.29 XIANGTAN CITY CONSTR 8.00 3/16/2019 CNY 65.19 XIANGTAN JIUHUA ECON 6.93 12/16/2016 CNY 41.30 XIANGTAN JIUHUA ECON 6.93 12/16/2016 CNY 41.49 XIANGYANG CITY CONST 8.12 1/12/2019 CNY 64.09 XIANGYANG CITY CONST 8.12 1/12/2019 CNY 64.60 XIAOGAN URBAN CONSTR 8.12 3/26/2019 CNY 85.44 XINJIANG SHIHEZI DEV 7.50 8/29/2018 CNY 74.80 XINXIANG INVESTMENT 6.80 1/18/2018 CNY 73.40 XUZHOU ECONOMIC TECH 8.20 3/7/2019 CNY 65.50 XUZHOU ECONOMIC TECH 8.20 3/7/2019 CNY 65.04 YANGZHONG URBAN CONS 7.10 3/26/2018 CNY 73.21 YANGZHOU ECONOMIC DE 5.80 5/12/2016 CNY 50.06 YANGZHOU ECONOMIC DE 6.10 7/7/2016 CNY 50.36 YANGZHOU ECONOMIC DE 6.10 7/7/2016 CNY 50.20 YANGZHOU URBAN CONST 5.94 7/23/2016 CNY 40.20 YANGZHOU URBAN CONST 5.94 7/23/2016 CNY 40.32 YANZHOU HUIMIN URBAN 8.50 12/28/2017 CNY 53.22 YIJINHUOLUOQI HONGTA 8.35 3/19/2019 CNY 56.08 YIJINHUOLUOQI HONGTA 8.35 3/19/2019 CNY 60.20 YINCHUAN URBAN CONST 6.28 3/9/2017 CNY 25.62 YIYANG CITY CONSTRUC 8.20 11/19/2016 CNY 41.00 YULIN CITY INVESTMEN 6.81 12/4/2018 CNY 72.42 YUNNAN INVESTMENT GR 5.25 8/24/2017 CNY 71.60 YUNNAN INVESTMENT GR 5.25 8/24/2017 CNY 70.71 ZHANGJIAGANG JINCHEN 6.23 1/6/2018 CNY 62.09 ZHENJIANG NEW AREA E 8.16 3/1/2019 CNY 64.30 ZHENJIANG NEW AREA E 8.16 3/1/2019 CNY 64.49 ZHUCHENG ECONOMIC DE 7.50 8/25/2018 CNY 42.47 ZHUCHENG ECONOMIC DE 6.40 4/26/2018 CNY 62.00 ZHUCHENG ECONOMIC DE 6.40 4/26/2018 CNY 62.02 ZHUHAI HUAFA GROUP C 8.43 2/16/2018 CNY 52.79 ZHUHAI HUAFA GROUP C 8.43 2/16/2018 CNY 53.50 ZIBO CITY PROPERTY C 5.45 4/27/2019 CNY 49.17 ZOUCHENG CITY ASSET 7.02 1/12/2018 CNY 42.28 ZUNYI CITY INVESTMEN 8.53 3/13/2019 CNY 66.32 ZUNYI CITY INVESTMEN 8.53 3/13/2019 CNY 64.73 INDONESIA --------- BERAU COAL ENERGY TB 7.25 3/13/2017 USD 20.14 BERAU COAL ENERGY TB 7.25 3/13/2017 USD 20.24 PERUSAHAAN PENERBIT 6.75 4/15/2043 IDR 72.85 PERUSAHAAN PENERBIT 6.10 2/15/2037 IDR 72.95 INDIA ----- 3I INFOTECH LTD 5.00 4/26/2017 USD 12.75 GTL INFRASTRUCTURE L 4.03 11/9/2017 USD 30.75 JAIPRAKASH ASSOCIATE 5.75 9/8/2017 USD 65.18 JCT LTD 2.50 4/8/2011 USD 22.50 PRAKASH INDUSTRIES L 5.25 4/30/2015 USD 20.00 PYRAMID SAIMIRA THEA 1.75 7/4/2012 USD 1.00 REI AGRO LTD 5.50 11/13/2014 USD 1.69 REI AGRO LTD 5.50 11/13/2014 USD 1.69 SVOGL OIL GAS & ENER 5.00 8/17/2015 USD 19.88 JAPAN ----- AVANSTRATE INC 5.55 10/31/2017 JPY 33.25 AVANSTRATE INC 5.55 10/31/2017 JPY 37.00 ELPIDA MEMORY INC 0.70 8/1/2016 JPY 8.25 ELPIDA MEMORY INC 0.50 10/26/2015 JPY 8.25 ELPIDA MEMORY INC 2.03 3/22/2012 JPY 8.25 ELPIDA MEMORY INC 2.29 12/7/2012 JPY 8.25 ELPIDA MEMORY INC 2.10 11/29/2012 JPY 8.25 TAKATA CORP 0.58 3/26/2021 JPY 73.00 KOREA ----- 2014 KODIT CREATIVE 5.00 12/25/2017 KRW 31.66 2014 KODIT CREATIVE 5.00 12/25/2017 KRW 31.66 DOOSAN CAPITAL SECUR 20.00 4/22/2019 KRW 42.19 HANA FINANCIAL GROUP 3.59 5/29/2045 KRW 465.08 HYUNDAI MERCHANT MAR 6.20 3/28/2017 KRW 67.65 HYUNDAI MERCHANT MAR 5.30 7/3/2017 KRW 65.72 KIBO ABS SPECIALTY C 10.00 8/22/2017 KRW 25.85 KIBO ABS SPECIALTY C 5.00 12/25/2017 KRW 30.30 KIBO ABS SPECIALTY C 10.00 9/4/2016 KRW 43.42 KIBO ABS SPECIALTY C 10.00 2/19/2017 KRW 38.34 KIBO ABS SPECIALTY C 5.00 3/29/2018 KRW 30.58 KIBO ABS SPECIALTY C 5.00 1/31/2017 KRW 33.30 LSMTRON DONGBANGSEON 4.53 11/22/2017 KRW 31.19 PULMUONE CO LTD 2.50#N/A Field Not KRW 57.28 PULMUONE CO LTD 2.50 8/6/2045 KRW 57.28 SINBO SECURITIZATION 5.00 6/25/2019 KRW 26.46 SINBO SECURITIZATION 5.00 6/25/2018 KRW 28.56 SINBO SECURITIZATION 5.00 8/16/2016 KRW 38.26 SINBO SECURITIZATION 5.00 1/29/2017 KRW 34.45 SINBO SECURITIZATION 5.00 6/29/2016 KRW 46.61 SINBO SECURITIZATION 5.00 5/27/2016 KRW 54.00 SINBO SECURITIZATION 5.00 8/16/2017 KRW 32.72 SINBO SECURITIZATION 5.00 8/16/2017 KRW 32.72 SINBO SECURITIZATION 5.00 7/8/2017 KRW 33.13 SINBO SECURITIZATION 5.00 7/8/2017 KRW 33.13 SINBO SECURITIZATION 5.00 6/27/2018 KRW 30.06 SINBO SECURITIZATION 5.00 6/27/2018 KRW 30.06 SINBO SECURITIZATION 5.00 8/29/2018 KRW 29.34 SINBO SECURITIZATION 5.00 8/29/2018 KRW 29.34 SINBO SECURITIZATION 5.00 7/24/2017 KRW 31.88 SINBO SECURITIZATION 5.00 7/24/2018 KRW 29.85 SINBO SECURITIZATION 5.00 7/24/2018 KRW 29.85 SINBO SECURITIZATION 5.00 10/1/2017 KRW 32.18 SINBO SECURITIZATION 5.00 10/1/2017 KRW 32.18 SINBO SECURITIZATION 5.00 10/1/2017 KRW 32.18 SINBO SECURITIZATION 5.00 1/30/2019 KRW 27.82 SINBO SECURITIZATION 5.00 1/30/2019 KRW 27.82 SINBO SECURITIZATION 5.00 10/30/2019 KRW 19.51 SINBO SECURITIZATION 5.00 2/27/2019 KRW 27.63 SINBO SECURITIZATION 5.00 2/27/2019 KRW 27.63 SINBO SECURITIZATION 5.00 10/5/2016 KRW 35.58 SINBO SECURITIZATION 5.00 10/5/2016 KRW 35.76 SINBO SECURITIZATION 5.00 8/31/2016 KRW 38.47 SINBO SECURITIZATION 5.00 8/31/2016 KRW 38.47 SINBO SECURITIZATION 5.00 5/27/2016 KRW 54.00 SINBO SECURITIZATION 5.00 12/13/2016 KRW 34.96 SINBO SECURITIZATION 5.00 2/21/2017 KRW 34.19 SINBO SECURITIZATION 5.00 2/21/2017 KRW 34.19 SINBO SECURITIZATION 5.00 6/7/2017 KRW 21.55 SINBO SECURITIZATION 5.00 6/7/2017 KRW 21.55 SINBO SECURITIZATION 5.00 3/13/2017 KRW 33.96 SINBO SECURITIZATION 5.00 3/13/2017 KRW 33.96 SINBO SECURITIZATION 5.00 1/15/2018 KRW 31.46 SINBO SECURITIZATION 5.00 1/15/2018 KRW 31.46 SINBO SECURITIZATION 5.00 2/11/2018 KRW 30.96 SINBO SECURITIZATION 5.00 2/11/2018 KRW 30.96 SINBO SECURITIZATION 5.00 12/25/2016 KRW 33.75 SINBO SECURITIZATION 5.00 3/12/2018 KRW 30.73 SINBO SECURITIZATION 5.00 3/12/2018 KRW 30.73 SINBO SECURITIZATION 5.00 5/26/2018 KRW 28.83 SINBO SECURITIZATION 5.00 3/18/2019 KRW 27.41 SINBO SECURITIZATION 5.00 3/18/2019 KRW 27.41 SINBO SECURITIZATION 5.00 7/26/2016 KRW 42.47 SINBO SECURITIZATION 5.00 7/26/2016 KRW 42.47 SINBO SECURITIZATION 5.00 12/23/2018 KRW 28.16 SINBO SECURITIZATION 5.00 12/23/2018 KRW 28.16 SINBO SECURITIZATION 5.00 12/23/2017 KRW 30.32 SINBO SECURITIZATION 5.00 9/26/2018 KRW 29.11 SINBO SECURITIZATION 5.00 9/26/2018 KRW 29.11 SINBO SECURITIZATION 5.00 9/26/2018 KRW 29.11 TONGYANG CEMENT & EN 7.50 4/20/2014 KRW 70.00 TONGYANG CEMENT & EN 7.30 4/12/2015 KRW 70.00 TONGYANG CEMENT & EN 7.30 6/26/2015 KRW 70.00 TONGYANG CEMENT & EN 7.50 7/20/2014 KRW 70.00 TONGYANG CEMENT & EN 7.50 9/10/2014 KRW 70.00 U-BEST SECURITIZATIO 5.50 11/16/2017 KRW 32.48 WISE MOBILE SECURITI 20.00 12/14/2018 KRW 74.81 WOORI BANK 5.21 12/12/2044 KRW 66.67 SRI LANKA --------- SRI LANKA GOVERNMENT 5.35 3/1/2026 LKR 57.87 SRI LANKA GOVERNMENT 6.00 12/1/2024 LKR 64.70 SRI LANKA GOVERNMENT 9.00 10/1/2032 LKR 71.64 SRI LANKA GOVERNMENT 7.00 10/1/2023 LKR 72.63 SRI LANKA GOVERNMENT 9.00 11/1/2033 LKR 70.43 SRI LANKA GOVERNMENT 9.00 6/1/2033 LKR 71.09 SRI LANKA GOVERNMENT 8.00 1/1/2032 LKR 65.70 SRI LANKA GOVERNMENT 9.00 6/1/2043 LKR 68.27 MALAYSIA -------- BANDAR MALAYSIA SDN 0.35 2/20/2024 MYR 72.56 BANDAR MALAYSIA SDN 0.35 12/29/2023 MYR 73.04 BIMB HOLDINGS BHD 1.50 12/12/2023 MYR 71.84 BRIGHT FOCUS BHD 2.50 1/24/2030 MYR 71.10 BRIGHT FOCUS BHD 2.50 1/22/2031 MYR 68.22 LAND & GENERAL BHD 1.00 9/24/2018 MYR 0.22 SENAI-DESARU EXPRESS 0.50 12/31/2040 MYR 68.01 SENAI-DESARU EXPRESS 0.50 12/30/2039 MYR 66.89 SENAI-DESARU EXPRESS 0.50 12/31/2047 MYR 74.81 SENAI-DESARU EXPRESS 0.50 12/31/2043 MYR 71.45 SENAI-DESARU EXPRESS 0.50 12/31/2046 MYR 73.97 SENAI-DESARU EXPRESS 0.50 12/29/2045 MYR 73.00 SENAI-DESARU EXPRESS 0.50 12/31/2041 MYR 69.12 SENAI-DESARU EXPRESS 0.50 12/30/2044 MYR 72.23 SENAI-DESARU EXPRESS 0.50 12/31/2042 MYR 70.37 SENAI-DESARU EXPRESS 0.50 12/31/2038 MYR 65.26 SENAI-DESARU EXPRESS 1.35 12/29/2028 MYR 58.06 SENAI-DESARU EXPRESS 1.35 6/30/2028 MYR 59.27 SENAI-DESARU EXPRESS 1.15 12/29/2023 MYR 69.69 SENAI-DESARU EXPRESS 1.35 6/30/2026 MYR 63.97 SENAI-DESARU EXPRESS 1.35 6/30/2027 MYR 61.61 SENAI-DESARU EXPRESS 1.35 6/30/2031 MYR 52.18 SENAI-DESARU EXPRESS 1.15 12/30/2022 MYR 72.93 SENAI-DESARU EXPRESS 1.15 6/30/2023 MYR 71.28 SENAI-DESARU EXPRESS 1.15 6/28/2024 MYR 68.15 SENAI-DESARU EXPRESS 1.35 12/31/2025 MYR 65.24 SENAI-DESARU EXPRESS 1.35 6/28/2030 MYR 54.52 SENAI-DESARU EXPRESS 1.15 12/31/2024 MYR 66.63 SENAI-DESARU EXPRESS 1.15 6/30/2025 MYR 65.18 SENAI-DESARU EXPRESS 1.35 6/29/2029 MYR 56.87 SENAI-DESARU EXPRESS 1.35 12/31/2030 MYR 53.35 SENAI-DESARU EXPRESS 1.10 6/30/2022 MYR 74.37 SENAI-DESARU EXPRESS 1.35 12/31/2026 MYR 62.79 SENAI-DESARU EXPRESS 1.35 12/31/2027 MYR 60.44 SENAI-DESARU EXPRESS 1.35 12/31/2029 MYR 55.68 UNIMECH GROUP BHD 5.00 9/18/2018 MYR 1.02 PHILIPPINES ----------- BAYAN TELECOMMUNICAT 13.50 7/15/2006 USD 22.75 BAYAN TELECOMMUNICAT 13.50 7/15/2006 USD 22.75 SINGAPORE --------- AXIS OFFSHORE PTE LT 7.89 5/18/2018 USD 57.08 BAKRIE TELECOM PTE L 11.50 5/7/2015 USD 3.27 BAKRIE TELECOM PTE L 11.50 5/7/2015 USD 1.00 BERAU CAPITAL RESOUR 12.50 7/8/2015 USD 21.04 BERAU CAPITAL RESOUR 12.50 7/8/2015 USD 20.38 BLD INVESTMENTS PTE 8.63 3/23/2015 USD 8.00 BUMI CAPITAL PTE LTD 12.00 11/10/2016 USD 17.38 BUMI CAPITAL PTE LTD 12.00 11/10/2016 USD 16.41 BUMI INVESTMENT PTE 10.75 10/6/2017 USD 17.50 BUMI INVESTMENT PTE 10.75 10/6/2017 USD 16.26 ENERCOAL RESOURCES P 6.00 4/7/2018 USD 10.13 GOLIATH OFFSHORE HOL 12.00 6/11/2017 USD 5.04 INDO INFRASTRUCTURE 2.00 7/30/2010 USD 1.88 NEPTUNE ORIENT LINES 4.65 9/9/2020 SGD 74.67 NEPTUNE ORIENT LINES 4.40 6/22/2021 SGD 69.00 ORO NEGRO DRILLING P 7.50 1/24/2019 USD 45.00 OSA GOLIATH PTE LTD 12.00 10/9/2018 USD 62.00 OTTAWA HOLDINGS PTE 5.88 5/16/2018 USD 70.00 OTTAWA HOLDINGS PTE 5.88 5/16/2018 USD 48.00 PACIFIC RADIANCE LTD 4.30 8/29/2018 SGD 73.13 SWIBER CAPITAL PTE L 6.50 8/2/2018 SGD 50.13 SWIBER CAPITAL PTE L 6.25 10/30/2017 SGD 61.88 SWIBER HOLDINGS LTD 7.13 4/18/2017 SGD 64.88 TRIKOMSEL PTE LTD 5.25 5/10/2016 SGD 20.00 TRIKOMSEL PTE LTD 7.88 6/5/2017 SGD 20.00 THAILAND -------- G STEEL PCL 3.00 10/4/2015 USD 3.74 MDX PCL 4.75 9/17/2003 USD 37.75 TEEKAY OFFSHORE PART 6.00 7/30/2019 USD 62.75 VIETNAM ------- DEBT AND ASSET TRADI 1.00 10/10/2025 USD 49.96 DEBT AND ASSET TRADI 1.00 10/10/2025 USD 49.38 ********* 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 ***