/raid1/www/Hosts/bankrupt/TCRAP_Public/161222.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
Thursday, December 22, 2016, Vol. 19, No. 253
Headlines
A U S T R A L I A
AISHA & UMMA: First Creditors' Meeting Set for Jan. 3
BROENS PTY: First Creditors' Meeting Slated for Jan. 3
CAPE EMPLOYMENT: First Creditors' Meeting Set for Dec. 30
FARR ENTERPRISES: Suspended as Liquidator for Three Years
FP TURBO 2016-1: Moody's Assigns B1(sf) Rating to Cl F Notes
O'CONNOR INVESTMENTS: First Creditors' Meeting Set for Jan. 3
SLATER AND GORDON: ASIC Launches Fresh Probe Into Accounts
TIWI ISLANDS: First Creditors' Meeting Slated for Jan. 3
C H I N A
CIFI HOLDINGS: Proposed Notes Issue No Impact on Moody's Ba3 CFR
FANTASIA HOLDINGS: Moody's Says Bond Offer No Impact on B2 CFR
HONGHUA GROUP: Fitch Puts 'CCC' IDR on Rating Watch Positive
I N D I A
AKHIL INFRA: Ind-Ra Withdraws 'IND BB-' Long-Term Issuer Rating
ANUPAM SYNTHETICS: ICRA Suspends B+ Rating on INR6.8cr Loan
ARIHANT PACKWELL: ICRA Assigns B+ Rating to INR4.0cr Cash Loan
ASK HOME: Ind-Ra Assigns 'IND BB+' Long Term Issuer Rating
B.K. EXPORTS: ICRA Revises Rating on INR25cr Cash Loan to B-
BAFNA MOTORS: CARE Assigns B+ Rating to INR12cr LT Loan
BAL DARBAR: CARE Assigns 'B' Rating to INR6.06cr LT Loan
DHANA LAXMI: ICRA Suspends 'B' Rating on INR10cr Loan
DHRUVDESH METASTEEL: ICRA Assigns 'B' Rating to INR28cr Loan
EWDPL CHANDIGARH: ICRA Suspends B+ Rating on INR2cr Loan
FAIZ INDUSTRIES: ICRA Reaffirms B+ Rating on INR9.50cr Loan
GOYAL SONS: ICRA Suspends B+ Rating on INR17cr Bank Loan
GOYAL SONS ZAVERI: ICRA Suspends B+ Rating on INR20cr Loan
GURU NANAK: ICRA Suspends 'B' Rating on INR12cr Fund Based Loan
INODAYA FOODS: ICRA Suspends B+ Rating on INR8cr Bank Loan
JAYACHITRA GARMENTS: Ind-Ra Withdraws 'IND BB' LT Issuer Rating
JMC CONSTRUCTIONS: ICRA Withdraws [Ir]D Issuer Rating
K.K. AUTOMOTIVE: ICRA Suspends B+ Rating on INR6cr Loan
KING REFINERIES: Ind-Ra Withdraws IND B+ Long term Issuer Rating
MAHARAJA PAPER: CARE Reaffirms 'B' Rating on INR14.50cr Loan
MILANO PAPERS: ICRA Assigns B+ Rating to INR8.80cr Cash Loan
MIRAJ METALS: CARE Downgrades Rating on INR8cr LT Loan to 'D'
MIRAJ RECYCLERS: CARE Revises Rating on INR3.0cr Loan to 'D'
MODERN LIVING: ICRA Suspends B+ Rating to INR9.34cr Bank Loan
NOOR IMPEX: ICRA Suspends 'B' Rating on INR5.5cr Cash Loan
ORIENTAL PATHWAYS: CARE Upgrades Rating on INR78.66cr Loan to BB
ORIENTAL PATHWAYS (NAGPUR): CARE Upgradess Long Term Rating to B+
PACIFIC GARMENTS: CARE Assigns 'B' Rating to INR1.86cr LT Loan
RACHANA SEEDS: CARE Lowers Rating on INR39cr ST Loan to 'D'
RAJ RATAN: ICRA Lowers Rating on INR18.5cr Loan to C+/A4
RAJENDRA RICE: ICRA Suspends B+ Rating on INR6.95cr Loan
RELIANCE COMMUNICATIONS: Fitch Lowers LT IDRs to 'B+'
RUCHI SOYA: CARE Lowers Rating on INR3,794.71cr Loan to 'D'
S S DEVELOPERS: Ind-Ra Withdraws 'IND B' Long-Term Issuer Rating
S.S. CONSTRUCTION: ICRA Suspends B- Rating on INR8cr Loan
SARGAM METALS: ICRA Revises Rating on INR30cr Loan to B-
SAVFAB DEVELOPERS: ICRA Lowers Rating on INR35cr Term Loan to D
SHIVA WHEELS: CARE Reaffirms B+ Rating on INR5.20cr LT Loan
SHREE BHAWANI: CARE Reaffirms B+/A4 Rating on INR13.5cr Loan
SHYAM COAL: ICRA Suspends B+ Rating on INR7.0cr Cash Loan
SREE GOURIPUTRA: CARE Reaffirms B+ Rating on INR6.5cr Loan
SUDHAMSU EXIM: ICRA Assigns B+/A4 Rating to INR15cr Loan
THREE STAR: CARE Reaffirms 'B' Rating on INR.21cr LT Loan
TIRUPATI EDUCATIONAL: ICRA Suspends D Rating on INR18.30cr Loan
TRUBA ADVANCE: CARE Upgrades Rating on INR7.27cr Loan to 'B'
TWINCITY SUNLIFE: Ind-Ra Withdraws 'IND B+' LT Issuer Rating
VIBFAST PIGMENTS: Ind-Ra Affirms IND BB- Long-Term Issuer Rating
VIBFAST PIGMENT PRIVATE: Ind-Ra Affirms 'IND BB-' Issuer Rating
ZEN TOBACCO: CARE Reaffirms 'B' Rating on INR5.50cr Bank Loan
J A P A N
ASAHI LIFE: Fitch Affirms 'BB+' Insurer Financial Strength Rating
M A L A Y S I A
1MALAYSIA: Paid Interest on Bonds With Own Funds This Quarter
KUANTAN FLOUR: Felcra Withdraws Proposed Reverse Takeover
S I N G A P O R E
CHINA FISHERY: Wants Plan Filing Deadline Extended Thru March 31
RICKMERS MARITIME: Noteholders Reject Debt Restructuring Plan
S O U T H K O R E A
LG CHEM: Picked for Fast-Track Restructuring Program
T A I W A N
TRANSASIA AIRWAYS: May Be Delisted from TWSE on Feb. 2
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A U S T R A L I A
=================
AISHA & UMMA: First Creditors' Meeting Set for Jan. 3
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Aisha &
Umma Enterprise - Plenty Valley Pty Ltd, trading as RMB Cafe/Bar,
will be held at the offices of Vince & Associates, 51 Robinson
Street, in Dandenong, Victoria, on Jan. 3, 2017, at 11:00 a.m.
Peter Robert Vince -- pvince@vinceassociates.com.au -- and Paul
William Langdon -- plangdon@vinceassociates.com.au -- of Vince &
Associates were appointed as administrators of Aisha & Umma on
Dec. 19, 2016.
BROENS PTY: First Creditors' Meeting Slated for Jan. 3
------------------------------------------------------
A first meeting of the creditors in the proceedings of
Broens Pty Ltd will be held at Chartered Accountants Australia
and New Zealand, 33 Erskine Street, in Sydney and via video
conference at Chartered Accountants Australia and New Zealand,
Westpac Building, Level 29, 91 King William Street, in Adelaide
on Jan. 3, 2017, at 2:00 p.m.
Trevor Pogroske and Philip Campbell-Wilson of Ernst & Young were
appointed as administrators of Broens Pty on Dec. 19, 2016.
CAPE EMPLOYMENT: First Creditors' Meeting Set for Dec. 30
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Cape
Employment Services Pty. Ltd. will be held at Level 12, 88 Pitt
Street, in Sydney, on Dec. 30, 2016, at 12:00 p.m.
David Iannuzzi and Steve Naidenov of Veritas Advisory were
appointed as administrators of Cape Employment on Dec. 19, 2016.
FARR ENTERPRISES: Suspended as Liquidator for Three Years
---------------------------------------------------------
The Companies Auditors and Liquidators Disciplinary Board has
suspended the registration of Stan Traianedes, of Box Hill,
Victoria as a registered liquidator for three years following an
application by ASIC.
The Board also ordered that Mr. Traianedes pay ASIC's costs and
give various undertakings, including that:
* he bear the costs of and incidental to the appointment of
replacement liquidators to his external administrations;
* upon the expiry of the suspension period, his first ten
appointments will be undertaken jointly and severally with
another registered liquidator;
* if, during the period of three years following the expiry of
the suspension period, he commences practice as a sole
practitioner, he will have all template, checklist and
procedure documents used in his practice reviewed by an ASIC-
approved reviewer, and report to ASIC on the reviewer's
recommendations and steps taken to implement them; and
he will undertake further educational training.
The Board found that Mr. Traianedes, a sole practitioner trading
under the name S & Z Insolvency and Forensic, failed to
adequately and properly carry out his duties as a liquidator in
relation to the external administration of Farr Enterprises Pty
Ltd, B K Diesel Pty Ltd and Dura (Australia) Constructions Pty
Ltd between 2011 and 2013. A copy of the Board's 'Reasons for
Decision', together with a copy of the undertakings provided by
Mr. Traianedes to the Board and to ASIC, can be found on the
Board's website at www.caldb.gov.au.
ASIC brought the application against Mr. Traianedes after its
investigation found various failings in the performance of his
duties. The Board found that Mr. Traianedes:
* made inadequate Declarations of Independence, Relevant
Relationships and Indemnities to creditors;
* made false and misleading statements to the Australian Tax
Office (ATO) as to whether funds were likely to be available
to pay debts due to the ATO;
* drew remuneration beyond the amount approved by the creditors
with respect to two liquidations;
* lodged several forms 524 with ASIC that were false and
misleading in that they stated that Mr. Traianedes had not
received any remuneration when he had;
* failed to keep proper books and records, including a failure
to maintain written records in accordance with the then
applicable IPA Code that evidenced compliance with
appropriate independence procedures within his practice;
* inaccurately reported to creditors;
* failed to exercise reasonable care in forming an opinion as
to whether company books and records were adequate;
* improperly convened a committee of inspection meeting and
improperly proposed a resolution to fix his remuneration;
* improperly sought to retain his appointment as liquidator
after a creditor raised concerns about his independence and
impartiality; and
* failed to carry out his duties with an appropriate degree of
independence and impartiality insofar as he solicited proxies
from creditors.
The Board's order suspending Mr. Traianedes' registration takes
effect on Jan. 9, 2017. The remainder of the Board's orders took
effect on Dec. 12, 2016.
FP TURBO 2016-1: Moody's Assigns B1(sf) Rating to Cl F Notes
------------------------------------------------------------
Moody's Investors Service has assigned definitive ratings to
notes issued by Perpetual Trustee Company Limited in its capacity
as trustee of the FP Turbo Series 2016-1 Trust.
Issuer: FP Turbo Series 2016-1 Trust
AUD 66.00 million Class A1 Notes, Assigned P-1 (sf);
AUD 165.00 million Class A2 Notes, Assigned Aaa (sf);
AUD 31.02 million Class B Notes, Assigned Aa2 (sf);
AUD 12.87 million Class C Notes, Assigned A2 (sf);
AUD 8.58 million Class D Notes, Assigned Baa2 (sf);
AUD 15.51 million Class E Notes, Assigned Ba2 (sf);
AUD 7.92 million Class F Notes, Assigned B1 (sf).
The AUD 6.60 million G Notes and the AUD 16.50 million Seller
Notes are not rated by Moody's.
The transaction is an Australian prime ABS. It is a cash
securitization of operating, novated and finance leases extended
to Australian corporates, small and medium-sized businesses and
their employees. The leases are secured by passenger cars
commercial vehicles and equipment. The collateral pool
composition is static and no pre-funding or substitution of
receivables will take place during the life of the transaction.
This is the fourth Australian ABS transaction issued by
FleetPartners since 2010.
RATINGS RATIONALE
The portfolio consists of non-delinquent vehicle and equipment
lease contracts with a weighted average seasoning of 18.9 months.
The securitised portfolio comprise lease installment cash flows
and residual value cash flows. The present value of the
outstanding lease receivables balance is approximately AUD322.4
million and the nominal value of estimated RV cash flows is
AUD146.2 million. The RV portion of the lease cash flows were set
at closing of the lease contracts based on estimates of car
values at lease contractual maturity. Due to the right of the
lessees to return the vehicle at contractual maturity in order to
cover the final lease balance outstanding under an operating
lease, the notes are exposed to both default and market or
residual value risk of the related vehicles.
According to Moody's, the transaction benefits from credit
strengths such as experience of the originator, diversification
of vehicle manufacturer and lease maturity dates and strong
historical performance of the lease portfolio. However, Moody's
notes that the transaction features some credit weaknesses such
as high lessee concentration and RV risk.
Moody's analysis focused, amongst other factors, on (i) an
evaluation of the underlying portfolio of leases obligors (ii) an
evaluation of the underlying RV exposure; (iii) back-up
maintenance and servicer solutions; (iv) the credit enhancement
provided by subordination; (v) the liquidity support available in
the transaction by way of principal to pay interest and the
liquidity reserve fund.
Moody's applies a two-stage approach to modelling transactions
with RV risk. In the first step, Moody's models the expected loss
on the notes due to defaults. In the second step, additional
losses resulting from RV risk are modelled based on the RV
haircuts applied at contract maturity.
For the assessment of lessee default risk Moody's has determined
the lessee default distribution of the portfolio using CDOROM,
which simulates lessee defaults based on asset correlations and
default probabilities assumptions. Moody's assumed a mean lessee
default rate of 3.57%. For cash flow modeling Moody's assumed a
recovery rate following lessee default of 45%. To account for RV
risk in the portfolio Moody's assumes a Aaa haircut of 40.0%, a
Aa2 haircut of 30.5%, a A2 haircut of 25.5%, a Baa2 haircut of
22.0%, a Ba2 haircut of 16% and a B1 haircut of 11% on RV cash
flows.
The Notes will be repaid on a sequential basis in the initial
stages, until the subordination percentage increases from the
initial 30.0% to 45.0% for the Class A2 Notes at which point
class A2 to class E notes will be repaid on a pro-rata basis and
senior to Class F, Class G and Seller notes. When the outstanding
balance of the notes falls below 20% of the initial note balance
at closing the notes will once again be repaid on a sequential
basis. There are also other portfolio performance triggers which
must be met for the notes to be paid pro-rata. This principal
paydown structure is comparable to other recent ABS transactions
in the Australian market.
The transaction features a short term P-1 (sf) tranche, with a
legal final maturity of 12 months from issuance. The tranche
represents 20% of the total issuance. Key factors supporting the
P-1 (sf) rating include:
- Principal cashflows -- which will be allocated to the short-
term tranche in priority to other tranches until it is fully
repaid -- will be sufficient to amortise the tranche within the
12-month period. The amortisation is tested using various
stressed assumptions, including assuming a Aaa-commensurate level
of defaults and delinquencies occurring during the amortisation
period, delaying recoveries until after the first 6 months,
haircutting scheduled RV receipts by a Aaa-commensurate haircut
and delaying those receipts by 3 months and with both limited and
no prepayments.
- The corporate administration and insolvency regime in
Australia and the warm standby servicing arrangements with
Perpetual Trustee Company Limited (unrated) mitigate the risk of
a prolonged servicer disruption. These two factors are relevant
in the context of assigning the P-1 (sf) rating because
FleetPartners is unrated.
Methodology Underlying the Rating Action:
The principal methodology used in these ratings was Moody's
Global Approach to Rating Auto Loan- and Lease-Backed ABS
published in October 2016.
Factors That Would Lead to an Upgrade or Downgrade of the
Ratings:
Factors that could lead to an upgrade or downgrade of the note
ratings include (1) an improvement or deterioration in the credit
quality and performance of the collateral pool, and (2) higher or
lower than expected recoveries on defaulted loans. The Australian
economy and the market for used vehicles are primary drivers of
performance.
Other reasons for worse performance than Moody's expects include
poor servicing, error on the part of transaction parties, a
deterioration in credit quality of transaction counterparties,
lack of transactional governance and fraud.
Moody's Parameter Sensitivities:
If the default rate rises to 4.2% (from Moody's assumption of
3.6%) then the model-indicated rating for the Notes are as
follows:
- Class A1 -- P-1
- Class A2 -- Aaa
- Class B -- Aa3
- Class C -- A3
- Class D -- Baa3
- Class E -- Ba3
- Class F -- B2
O'CONNOR INVESTMENTS: First Creditors' Meeting Set for Jan. 3
-------------------------------------------------------------
A first meeting of the creditors in the proceedings of O'Connor
Investments (WA) Pty Ltd ATF O'Connor Family Trust, trading as
IGA Rouse Hill, will be held at Level 3, 95 Macquarie Street, in
Parramatta, on Jan. 3, 2017, at 11:00 a.m.
Riad Tayeh, Suelen McCallum and Riad Tayeh of de Vries Tayeh were
appointed as administrators of O'Connor Investments on Dec. 19,
2016.
SLATER AND GORDON: ASIC Launches Fresh Probe Into Accounts
----------------------------------------------------------
Prashant Mehra at Herald Sun reports that Slater and Gordon
shares have fallen after the embattled law firm revealed it faced
a probe from regulators for the second time this year.
Herald Sun says the corporate watchdog is again investigating the
firm, this time looking into the possible falsification of
financial records.
According to the report, the Australian Securities and
Investments Commission has issued notices to Slater and Gordon
requesting it produce documents for the period between Dec. 1,
2014 and Sept. 29, 2015.
"The ASIC investigation seeks to determine whether those
financial records and accounts were deliberately falsified or
manipulated and whether the company or any of its officers have
committed offences," the report quotes Slater and Gordon as
saying in a statement. "ASIC has stated that these notices
should not be construed as an indication by ASIC that a
contravention of the law has occurred and nor should they be
considered a reflection upon any person or entity."
Shares in the group were down 5.7 per cent, or 1.5c, at 25c in
mid-afternoon trade on Dec. 21, the report notes.
Herald Sun relates that Slater and Gordon said it would fully co-
operate with ASIC so the investigation could be completed as soon
as possible.
In February, ASIC discontinued a review of Slater and Gordon's
financial reports for the previous two financial years, the
report recalls.
That review looked into issues including the recoverable amount
of goodwill attributable to Slater and Gordon's Australian and
British businesses and the recognition of fee revenue and related
work-in-progress.
Slater and Gordon made suffered a $1.02 billion loss in the year
to June, mainly due to deep writedowns in its UK operations
following its acquisition of Quindell's professional services
division in March last year, Herald Sun discloses.
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.
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.
TIWI ISLANDS: First Creditors' Meeting Slated for Jan. 3
--------------------------------------------------------
A first meeting of the creditors in the proceedings of
Tiwi Islands Adventures Pty Ltd will be held at the Paspalis
Business Centre, Level 1, 48 - 50 Smith Street, in Darwin,
Northern Territory, on Jan. 3, 2017, at 3:00 p.m.
Christopher Powell and Stephen Duncan of DuncanPowell were
appointed as administrators of Tiwi Islands on Dec. 19, 2016.
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C H I N A
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CIFI HOLDINGS: Proposed Notes Issue No Impact on Moody's Ba3 CFR
----------------------------------------------------------------
Moody's Investors Service says that CIFI Holdings (Group) Co.
Ltd.'s Ba3 corporate family rating and B1 senior unsecured bond
rating are unaffected by the its proposed issuance of USD senior
notes.
The rating outlook is stable.
The proceeds of the proposed issuance will be used to refinance
existing indebtedness and for general corporate purposes.
"We expect the proposed notes will lengthen CIFI's debt maturity
profile and will not have any material impact on its credit
metrics," says Stephanie Lau, a Moody's Assistant Vice President
and Analyst.
Moody's expects CIFI's credit metrics will be within the ranges
for its Ba3 corporate family rating after the bond issuance. Its
EBIT/interest will be around 3.2x-4.0x and revenue/debt at 85%-
90% (both ratios include shares in joint ventures) over the next
12-18 months, an improvement from 2.6x and 76.5% respectively for
the 12 months ended June 2016.
This improvement will come from the company's delivery of a
greater portion of high-margin products sold in the last 12-18
months.
Moody's expects that the company's gross profit margin (including
shares in joint ventures) will stay at 27%-28% for the next 12-18
months, up from 25% in 1H2016 and 23% in 2015.
Moreover, its average selling price for contracted sales was
around RMB18,000 per square meters (sqm), secured in the first 11
months in 2016, and up from RMB14,692 per sqm in 2015.
The Ba3 corporate family rating reflects CIFI's ability to
execute a property development model focused on housing demand
from upgraders, which helps it to achieve rapid turnover. The
rating also takes into account the company's good liquidity and
diversification across first- and second-tier cities, which
supports its position in China's competitive and recovering
property market.
On the other hand, the rating is constrained by its moderate
profit margins and credit metrics, as well as execution risks
related to its strategy of rapid growth. Part of the growth is
achieved through joint ventures, a situation which reduces the
levels of controlled cash flow.
The company's liquidity position is strong, as evidenced by
cash/short term debt of 5x. Much of the cash comes from the
proceeds received from its strong contracted sales. The company
achieved a 98% year-on-year increase in contracted sales to
RMB50.1 billion during January-November 2016.
The B1 rating of CIFI's senior unsecured debt is one notch lower
than its corporate family rating. This reflects structural and
legal subordination risks from a substantial amount of onshore
debt to fund the company's fast expansion.
The stable rating outlook reflects Moody's expectation that CIFI
will maintain its sales growth and strong liquidity position over
the next 12-18 months.
The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in April 2015.
CIFI Holdings (Group) Co. Ltd. was incorporated in the Cayman
Islands in May 2011 and listed on the Hong Kong Stock Exchange in
November 2012.
CIFI develops residential and commercial properties mainly in the
Yangtze River Delta. It has also expanded to the Pan Bohai Rim
and the Central Western Region. At end-June 2016, it maintained a
presence in 14 key cities with a total and attributable land bank
of 13.5 million and 8.7 million square meters (sqm) respectively.
It also had 52 projects under development.
FANTASIA HOLDINGS: Moody's Says Bond Offer No Impact on B2 CFR
--------------------------------------------------------------
Moody's Investors Service says that Fantasia Holdings Group Co.,
Limited's B2 corporate family rating and its B3 senior unsecured
debt rating are unaffected by the company's announcement of a tap
bond offering on its existing USD400 million senior unsecured
notes due Oct. 4, 2021.
The rating outlook is stable.
"The tap issuance will lengthen Fantasia's debt maturity profile
and will not materially affect its credit metrics, because the
proceeds will be used for the refinancing of existing debt," says
Stephanie Lau, a Moody's Assistant Vice President and Analyst.
Moody's expects that EBIT/interest will register around 1.6x-1.8x
over the next 12-18 months, and revenue/debt will stay around
50%-52%. Such levels remain appropriate for the company's
ratings.
Fantasia's B2 corporate family rating reflects its long track
record in Chengdu and Shenzhen, its diversified development
product line in commercial complexes and high-end residential
properties, and adequate liquidity.
But the rating is constrained by the company's execution risks in
new markets, the short track record of its asset-light model and
its weak credit metrics.
The company's liquidity position is strong. Cash/short term debt
- excluding listed subsidiary Colour Life Services Group, Co.
Ltd's (unrated) cash on hand - increased to 397% at end-June 2016
from 133% in 2015.
The B3 senior unsecured rating of the proposed notes is one notch
below Fantasia's B2 corporate family rating, reflecting
structural and legal subordination.
Its secured and subsidiary debt/total assets was around 18% at
end-June 2016. However, Moody's expects the ratio to stay in
excess of 15% in the coming 12-18 months, because the company
will continue to draw on onshore and/or secured bank loans to
fund its construction and expansion.
The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in April 2015.
Fantasia Holdings Group Co., Limited is a property developer
established in 1996. It listed on the Hong Kong Stock Exchange in
November 2009.
At end-June 2016, its land bank totaled 16.5 million square
meters in planned gross floor area - including lots under
framework agreements - mainly in the Chengdu-Chongqing Economic
Zone and the Pearl River Delta.
HONGHUA GROUP: Fitch Puts 'CCC' IDR on Rating Watch Positive
------------------------------------------------------------
Fitch Ratings has placed Honghua Group Limited's Long-Term
Foreign-Currency Issuer Default Rating (IDR) of 'CCC' on Rating
Watch Positive (RWP). Its senior unsecured rating of CCC, with a
Recovery Rating of 'RR4', has also been placed on RWP.
Fitch's action follows the 20 December 2016 announcement that
Honghua has agreed to issue new shares to China Aerospace Science
and Industry Corporation (CASIC) and Beijing Jianhong Capital
Management Co. Ltd. for total estimated net proceeds of HKD1.6bn,
subject to approvals, including those of the Hong Kong Stock
Exchange and relevant government authorities.
KEY RATING DRIVERS
Refinancing Ability Strengthened: The proposed equity placement
significantly improves Honghua's ability to roll over its short-
term debt, given the credibility CASIC, who would become
Honghua's largest shareholder, with 29.99% of the enlarged
capital. CASIC is wholly owned by the Central State-Owned Asset
Supervision and Administration Commission and is the main
contractor for China's space programme.
Balance Sheet Improvement: The proposed equity placement will
immediately improve Honghua's balance sheet, as the company
stated its intention to use half of the net proceeds for debt
reduction, with the remainder used for working capital purposes.
Honghua's net debt will fall to approximately CNY1.6bn, from
CNY3.1bn, based on its 1H16 numbers. However, Fitch estimates
that its FY16 proforma estimated adjusted net debt/EBITDAR will
remain high, at over 15x, due to weak profitability.
Liquidity Remains Adequate: Honghua's liquidity will also
improve, as the company would have approximately CNY2.7bn of cash
on hand post-placement, compared with CNY1.3bn as of 1H16. This
is in addition to its CNY11.4bn of unused banking facilities.
Honghua's liquidity remains comfortable, with approximately
CNY2.3bn of debt becoming due in 2017.
Change-of-Control Not Triggered: The proposed transaction does
not appear to trigger the change-of-control clause in the
indenture on Honghua's outstanding USD200m 7.45% bonds due 2019,
as the clause is only triggered when accompanied with a downgrade
rating action by a rating agency. If the change-of-control clause
is triggered, Honghua may be required to redeem the bonds
immediately. It currently does have the liquidity to meet an
early redemption of the offshore bonds.
KEY ASSUMPTIONS
Fitch's key assumption within its rating case for the issuer
includes the completion of the equity placement, with half of the
proceeds used toward debt reduction.
RATING SENSITIVITIES
Fitch may upgrade Honghua's ratings if the transaction is
completed and the company reduces its debt as per its
announcement.
If the transaction is not completed, Fitch will likely affirm
Honghua's current ratings.
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AKHIL INFRA: Ind-Ra Withdraws 'IND BB-' Long-Term Issuer Rating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Akhil Infra
Projects Pvt. Ltd.'s Long-Term Issuer Rating of 'IND BB-' The
Outlook was Stable.
The ratings have been withdrawn due to lack of adequate
information. Ind-Ra will no longer provide ratings or analytical
coverage for the company.
AKHIL's Ratings:
- Long-Term Issuer Rating: 'IND BB-'; Outlook Stable; rating
withdrawn
- INR30 million fund-based limit: 'IND BB-'; rating withdrawn
- INR30 million non-fund-based limit: 'IND A4+'; rating withdrawn
Ratings
-------
Long Term Issuer Rating WD
Fund Based Working Capital Limit WD INR30m
Non-Fund Based Working Capital Limit WD INR30m
ANUPAM SYNTHETICS: ICRA Suspends B+ Rating on INR6.8cr Loan
-----------------------------------------------------------
ICRA has suspended the long term rating of [ICRA]B+ assigned to
the INR6.80 crore fund-based bank facilities of Anupam Synthetics
Private Limited. The suspension follows ICRA's inability to carry
out rating surveillance in the absence of requisite information
from the company.
ARIHANT PACKWELL: ICRA Assigns B+ Rating to INR4.0cr Cash Loan
--------------------------------------------------------------
ICRA has assigned its long-term rating of [ICRA]B+ to the
INR10.00-crore fund-based bank facilities of Arihant Packwell.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based-Cash Credit 4.00 [ICRA]B+; assigned
Fund based-Term Loan 6.00 [ICRA]B+; assigned
ICRA's rating favourably factors in the long-standing experience
of the promoters in the manufacturing of packaging material and
the company's diversified client base which includes several
reputed players from pharmaceutical sector. The ratings also
favorably factor in the benefits enjoyed by the firm in the form
of logistics convenience by virtue of its factory location's
proximity to customers and suppliers.
The rating is, however, constrained by Arihant's modest size of
operations and high working capital intensity owing to the
extended credit given to its customers and high stock levels. The
rating also factors in the limited pricing flexibility of
Arihant's owing to its presence in the highly competitive
packaging industry while its profits remain vulnerable to any
adverse fluctuations in the prices of the raw materials.
Going forward, Arihant's ability to increase its scale of
operations and generate corresponding profitability margins will
be the key rating sensitivity.
Arihant Packwell is mainly involved in manufacturing packaging
material which includes mono cartons, metalized carton, flute
carton. The printing and packaging is done for the pharmaceutical
industries for their plants located mainly in Baddi, Hiamchal
Pradesh. The firm's manufacturing facility is also located at
Baddi and enjoys location advantages by virtue of proximity to
customers and suppliers resulting in sourcing and logistics
convenience.
Arihant is part of a group which has presence in generic
pharmaceuutical manufacturing, based in Baddi, Himachal Pradesh.
Recent results
Arihant reported a net profit of INR0.44 crore on an operating
income (OI) of INR16.35 crore in FY2016, as compared to a net
profit of INR0.45 crore on an OI of INR15.40 crore in the
previous year.
ASK HOME: Ind-Ra Assigns 'IND BB+' Long Term Issuer Rating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned ASK Home
Furnishing Private Limited a Long-Term Issuer Rating of 'IND
BB+'. The Outlook is Stable.
KEY RATING DRIVERS
The ratings are constrained by AHFPL's small scale of operations
as evident from the top line of INR617.76 million in FY16. The
ratings are also constrained by the raw material price
fluctuation risk and high competition from organised and
small/mid-sized unorganised players, faced by the company which
would impact its margins.
The ratings are also constrained by the working capital intensity
of the company's business.
The ratings are supported by the three-decade-long experience of
AHFPL's promoters in manufacturing blankets, the company's strong
relationships with its customers and suppliers and its moderate
operating EBITDA margins (FY16: 7.34%; FY15: 7.72%).
The ratings are also supported by AHFPL's moderate credit metrics
and liquidity, as reflected by its gross interest coverage
(operating EBITDA/gross interest expense) of 2.33x in FY16 (FY15:
2.13x) and financial leverage (total adjusted debt/operating
EBITDAR) of 3.47x (3.33x). Its use of the fund-based facility was
93% on an average over the 12 months ended November 2016.
RATING SENSITIVITIES
Positive: A significant improvement in the scale of operations,
along with an improvement in EBITDA margins could result in a
positive rating action.
Negative: decline in revenue growth or EBITDA margins leading to
deterioration in the credit metrics could result in a negative
rating action.
COMPANY PROFILE
AHFPL was incorporated in 2005 by Mr. Sandeep Singh Kochar and
his wife Mrs Amita Kochar. The company manufactured mink blankets
and mink blanket fabrics at its facility in Gurgaon, Haryana. The
company sells its products all over India under the brand name
Home Jewels.
AHFPL's ratings:
- Long-Term Issuer rating: assigned 'IND BB+'; Outlook Stable
- INR160 million fund-based facilities: assigned 'IND BB+';
Outlook Stable and 'IND A4+'
- INR60.8 million term loan facilities: assigned 'IND BB+';
Outlook Stable
- INR5 million non-fund-based facilities: assigned 'IND A4+'
Ratings
-------
Long Term Issuer Rating IND BB+/Stable
Fund Based Working Capital Limit IND BB+/Stable INR160m
Fund Based Working Capital Limit IND A4+ INR160m
Non-Fund Based Working Capital Limit IND A4+ INR5m
Term loan IND BB+/Stable INR60.8m
B.K. EXPORTS: ICRA Revises Rating on INR25cr Cash Loan to B-
------------------------------------------------------------
ICRA has revised the long-term rating assigned to INR25.00 crore
cash credit limits of B.K. Exports of [ICRA]B- from [ICRA]B.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 25.00 [ICRA]B-; revised
from [ICRA]B
The rating revision primarily factors in increased gearing levels
to 10.29 times as on March 31, 2016 owing to withdrawal of
partners capital of INR8.14 crore over the last four years. The
rating is also constrained by weak financial profile of the firm
characterized by modest coverage indicators with interest
coverage ratio at 1.04 times, Debt/OPBDIT at 7.38 times for
FY2016; high working capital intensity of operations on account
of high receivables; vulnerability of the sales to the agro
climatic conditions; and intense competition from other players
in the region in the tobacco industry. The rating however
favourably factors in the experience of the promoter in tobacco
business; easy availability of tobacco on account of favourable
location of Andhra Pradesh; and established relationship with
customer mitigates as reflected by repeat orders.
Going forward, the ability of the firm to improve its capital
structure while effectively managing the liquidity would remain
the key rating sensitivities.
B.K. Exports was set up in 2008 as a proprietorship concern by
Mr. Bellam Kotaiah. The firm is involved in trading of tobacco
comprising FCV (Flue Cured Virginia) tobacco and burley tobacco.
The firm procures FCV tobacco from from Tobacco Board of Guntur
and Karnataka through auction, while burley tobacco is purchased
from farmers.
Recent Results
The firm reported an operating income of INR39.38 crore and
profit after tax of INR0.01 crore in FY2016 as against the
operating income of INR34.76 crore and profit after tax of
INR0.06 crore in FY2015.
BAFNA MOTORS: CARE Assigns B+ Rating to INR12cr LT Loan
-------------------------------------------------------
CARE assigns 'CARE B+; STABLE' and 'CARE A4' ratings to the bank
facilities of Bafna Motors (India) Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-Term Fund Based
Bank Facilities 12.00 CARE B+; Stable Assigned
Short-Term Non Fund
Bank Facilities 1.00 CARE A4 Assigned
Rating Rationale
The rating assigned to the bank facilities of Bafna Motors
(India) Private Limited is constrained by its limited track
record coupled with modest scale of operations, geographically
concentrated revenues, thin profitability margins & highly
leveraged capital structure. The rating is further tempered by
stretched liquidity as demonstrated by lower gross cash accruals
and higher utilization of bank limits resulting into stressed
debt coverage indicators, dependence on performance of TATA
Motors Limited (TML) and cyclicality of auto industry coupled
with presence in highly competitive market.
The ratings however draw strength from significant experience of
the promoters, locational advantage in terms of strategic
location of its showrooms, wide product portfolio, and their
continued association with the established player Tata Motors
Limited (TML).
Ability of BMIPL to increase its scale of operations, improve its
profitability margins and capital structure coupled with
efficient management of its working capital cycle remain the key
rating sensitivities.
Incorporated in 2015, Bafna Motors (India) Pvt Ltd is a part of
the Bafna Group (BG) founded by Late Shri Mishrilal Bafna is
currently being managed by his two sons viz. Mr. Sumatiprasad
Bafna and Mr. Sanjeev Bafna. The Group is engaged in the sales
and service dealership business for passenger vehicles (PV),
light and heavy commercial vehicles (CV) and the two wheelers for
India's top Original Equipment Manufacturers (OEMs). Over the
years, the group has emerged as one of the largest automobile
dealers' in the Western region of India. The Group's flagship
company Bafna Motors (Mumbai) Pvt Ltd (BMMPL) is one of the
oldest authorized dealers for Tata Motors Ltd (TML; rated CARE
AA+). BMMPL has a healthy presence in the Mumbai & suburban
region as a dealer of Tata Motors Ltd's commercial vehicle
segment. Besides, Mumbai, BMMPL is operating as dealer for Thane
and Raigad districts.
The company is an authorized dealer of TML for Aurangabad, Akola,
Buldhana, Jalna, Hingoli, Parbhani and Washim districts of
Maharashtra. The company deals in entire range of TML's
commercial vehicles (light, medium & heavy), spare parts and
after sales service thereof. The company is following a hub and
spoke model of distribution wherein the company will be mainly
operating from Aurangabad, Akola and Buldhana having showroom
along with workshop on land having area of 2.5 acre, 2.0 acre and
3.5 acre respectively and the company will have smaller showrooms
of 1,000 sq ft to 1,500 sq ft displaying vehicles to entertain
customer enquiries at other locations. BMIPL generates revenue by
selling new vehicles, servicing of vehicles and sale of spare
parts.
During H2FY16 (October 2015 till March 2016), the company
has sold 531 vehicles. During this period, the company has
derived around 89% of its overall revenues from sale of new
vehicles.
During FY16 (refers to period October 1 to March 31), BMIPL
reported total operating income (TOI) INR42.60 crore and
loss of INR0.67 crore. Further during H1FY17 (refers to period
April 1 to September 30), BMPL reported total operating income
(TOI) INR84.87 crore with PAT of 2.42 crore.
BAL DARBAR: CARE Assigns 'B' Rating to INR6.06cr LT Loan
--------------------------------------------------------
CARE assigns 'CARE B' rating to the bank facilities of Bal Darbar
Spinning Mills Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 6.06 CARE B; Stable
Assigned
Rating Rationale
The rating assigned to the bank facilities of Bal Darbar Spinning
Mills Private Limited is primarily constrained on account of its
short track record of operations in the highly competitive and
fragmented textile industry and its financial risk profile marked
by net losses incurred during last two financial years ended FY16
(FY refers to the period April 1 to March 31), weak solvency
position and stressed liquidity profile. The rating is, further,
constrained on account of vulnerability of its margins to
fluctuations in the raw material prices.
The rating, however, derive strength from long-standing
experience of the promoters in the industry and location
advantage by way of proximity to the raw material as well as
customers.
The ability of the company to increase its scale of operations
while improving profitability along with improvement in the
solvency position and efficient management of working capital
shall be the key rating sensitivities.
Bijainagar (Rajasthan) based BDSM, was incorporated in 2013, by
'Tater' and 'Sacheti' family. BDSM was incorporated with an
objective to set up a spinning unit for manufacturing of
Polyester Cotton (PC) yarn. The company completed its project and
started commercial operations from October, 2014 from its sole
manufacturing facility located at Bijainagar having an installed
capacity of 4375 spindles as on March 31, 2016. BDSM manufactures
8 to 30s count PC yarn and caters to domestic market through the
network of agents located primarily in Northern part of India
under the brand name of "Bal Darbar". It procures polyester, key
raw material, mainly from Reliance Industries Limited and The
Bombay Dyeing and Manufacturing Co. Limited.
During FY16 (refers to period April 1 to March 31) BDSM has
reported a total operating income of INR10.56 crore with net
loss of INR0.91 crore.
DHANA LAXMI: ICRA Suspends 'B' Rating on INR10cr Loan
-----------------------------------------------------
ICRA has suspended the long term rating of [ICRA]B assigned to
the INR10.00 crore fund based limits of Dhana Laxmi Cotton
Industries. The suspension follows ICRA's inability to carry out
a rating surveillance in the absence of the requisite information
from the company.
DHRUVDESH METASTEEL: ICRA Assigns 'B' Rating to INR28cr Loan
------------------------------------------------------------
ICRA has assigned a long term of [ICRA]B to the INR20.00 crore
fund based (CC) limits and the INR28.00 crore term loans of
Dhruvdesh Metasteel Private Limited. ICRA has also assigned a
short term rating of [ICRA]A4 to the INR7.00 crore non fund based
limits of the company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term-Fund
Based (CC) 20.00 [ICRA]B assigned
Long Term-Term
Loans 28.00 [ICRA]B assigned
Short Term-Non
Fund Based 7.00 [ICRA]A4 assigned
The assigned ratings take into account the long standing
experience of the promoters in the sponge iron (SI) manufacturing
industry and the proximity of the manufacturing plant to the iron
ore pellet producers which ensures continuous availability of the
input material and lowers the transportation cost. The ratings
also take into account the continuous infusion of funds made by
the promoters over the last two years to support the debt
servicing. The ratings, however, remain constrained by the
ongoing slowdown in steel demand which has led to weak SI
realisations. DMPL's operating income and margins witnessed sharp
decline in FY2016 and H12017 leading to inadequate accruals and
weak coverage indicators. ICRA notes that the company remains
dependent on the promoter funding to meet the debt repayment
obligations. The ratings also take into account the fragmented
and competitive nature of the industry which limits the company's
pricing flexibility and makes the margins sensitive to changes in
the input and output prices, and the inherent cyclicality of the
industry which is likely to keep the profitability and cash flows
volatile. Going forward, the fluctuations in input prices and SI
realisations, and the timeliness of infusion of funds by the
promoters, remain the key rating sensitivities.
Incorporated in 2003, Dhruvdesh Metasteel Private Limited is
engaged in the production of sponge iron. The company has its
plant in Koppal district of Karnataka with two sponge iron kilns
of 100 tons per day capacity each and a 10MW co-generation power
plant. The annual production capacity is higher at 84000 MT per
annum as the company uses iron ore pellets, which have higher
output as against iron ore lumps. The company supplies sponge
iron primarily to steel producers in Maharashtra, Andhra Pradesh,
Tamil Nadu, Kerala, Goa and Karnataka.
Recent Results
The company reported a loss (before tax) of INR2.4 crore on an
operating income of INR132.6 crore in FY2016 as against a loss
(before tax) of INR2.4 crore on an operating income of INR183.8
crore in FY2015. As per the provisional financials for H1 FY2017,
the company reported a loss of INR4.8 crore on an operating
income of INR51.3 crore.
EWDPL CHANDIGARH: ICRA Suspends B+ Rating on INR2cr Loan
--------------------------------------------------------
ICRA has suspended the long term rating of [ICRA]B+ assigned to
the INR2.0 crore fund-based bank facilities and short term rating
of [ICRA]A4 assigned to the INR5.25 crore non fund-based bank
facilities of EWDPL Chandigarh Hospitality Private Limited. The
suspension follows ICRA's inability to carry out rating
surveillance in the absence of requisite information from the
company.
FAIZ INDUSTRIES: ICRA Reaffirms B+ Rating on INR9.50cr Loan
-----------------------------------------------------------
ICRA has re-affirmed the [ICRA]B+ rating to the INR9.50-crore
long-term working capital limits and the INR0.75-crore term loan
facility of Faiz Industries.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based-Working
Capital 9.50 [ICRA]B+; Re-affirmed
Fund-based-Term Loan 0.75 [ICRA]B+; Re-affirmed
The rating continues to be constrained by FI's moderate scale of
operations and weak financial profile marked by 29% revenue
decline in FY2016, followed by low profitability at both
operating and net levels, weak debt coverage indicators and
moderate capital structure. The firm witnesses intense
competition because of the highly fragmented industry structure
and low product differentiation. The rating is further
constrained by the highly competitive industry due to low-entry
barriers; and the vulnerability of the firm's profitability to
raw material (cotton) prices, which are subject to seasonality,
crop harvest and regulatory risks.
The rating, however, favourably factors in the longstanding
experience of the partners in the cotton ginning industry. The
rating also draws comfort from the proximity of the firm's
manufacturing unit to raw materials, easing procurement.
The firm's ability to increase its scale, maintain adequate
profitability and improve its capital structure, given the
seasonality in the business, volatility in prices of cotton
bales, intense competition and high working capital requirement
will remain crucial for the credit metrics. ICRA also notes that
FI is a partnership concern and any substantial withdrawal from
the capital account in future could adversely impact the credit
profile of the firm.
Faiz Industries (FI) was established in 1996 as a partnership
concern; it gins and presses raw cotton to produce cotton bales
and cotton seeds. The business is owned and managed by Mr. Badi
Ismail Mahmad and other family members. The firm's manufacturing
facility is located in Wankaner, district Rajkot. The firm
currently has 32 ginning machines and one automatic pressing
machine, with a manufacturing capacity of 450 bales per day. The
firm is also involved in crushing operations through its
associate concern, Aman Industries, the manufacturing facility of
which is equipped with seven expellers having a processing
capacity of 54 TPD of cotton seeds per day.
Recent Results
As on March 31, 2016, the firm reported an operating income of
INR82.08 crore with a net profit of INR0.20 crore, against an
operating income of INR114.91 crore and a net profit of INR0.25
crore in FY2015.
GOYAL SONS: ICRA Suspends B+ Rating on INR17cr Bank Loan
--------------------------------------------------------
ICRA has suspended the long term rating of [ICRA] B+ assigned to
the INR17.00 crore fund based limits of M/s Goyal Sons Jewels
Private Limited. The suspension follows ICRA's inability to carry
out a rating surveillance in the absence of the requisite
information from the company.
GOYAL SONS ZAVERI: ICRA Suspends B+ Rating on INR20cr Loan
----------------------------------------------------------
ICRA has suspended the long term rating of [ICRA] B+ assigned to
the INR20.00 crore fund based limits of M/s Goyal Sons Zaveri
Private Limited. The suspension follows ICRA's inability to carry
out a rating surveillance in the absence of the requisite
information from the company.
GURU NANAK: ICRA Suspends 'B' Rating on INR12cr Fund Based Loan
---------------------------------------------------------------
ICRA has suspended the long term rating of [ICRA] B assigned to
the INR12.00 crore fund based limits of M/s Guru Nanak Rice
Mills. The suspension follows ICRA's inability to carry out a
rating surveillance in the absence of the requisite information
from the company.
INODAYA FOODS: ICRA Suspends B+ Rating on INR8cr Bank Loan
----------------------------------------------------------
ICRA has suspended the long term rating of [ICRA]B+ assigned to
the INR8.0 crore fund-based bank facilities of Inodaya Foods
Private Limited. The suspension follows ICRA's inability to carry
out rating surveillance in the absence of requisite information
from the company.
JAYACHITRA GARMENTS: Ind-Ra Withdraws 'IND BB' LT Issuer Rating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Jayachitra
Garments' 'IND BB' Long-term Issuer Rating. The Outlook was
Stable.
The ratings have been withdrawn due to lack of adequate
information. Ind-Ra will no longer provide ratings or analytical
coverage for JG.
JG's ratings:
- Long-Term Issuer Rating: 'IND BB'; Outlook Stable; rating
withdrawn
- INR125 million fund based limit: 'IND BB'; Outlook Stable;
rating withdrawn
- INR13.74 million long-term loans: 'IND BB'; Outlook Stable;
rating withdrawn
- INR1 million non-fund-based working capital limit: 'IND A4';
rating withdrawn
Ratings
-------
Long Term Issuer Rating WD
Fund Based Working Capital Limit WD INR125m
Non-Fund Based Working Capital Limit WD INR1m
Term loan WD INR13.74m
JMC CONSTRUCTIONS: ICRA Withdraws [Ir]D Issuer Rating
-----------------------------------------------------
ICRA has withdrawn the issuer rating of [Ir]D assigned to
JMC Constructions Private Limited, as the time period of one year
has elapsed from the issue of notice of withdrawal in November
2015.
K.K. AUTOMOTIVE: ICRA Suspends B+ Rating on INR6cr Loan
-------------------------------------------------------
ICRA has suspended the long term rating of [ICRA]B+ assigned to
the INR6 crore working capital facility and the short term rating
of [ICRA]A4 assigned to the INR0.21 crore non fund based bank
facility of K.K. Automotive Private Limited. The suspension
follows ICRA's inability to carry out a rating surveillance in
the absence of the requisite information from the company.
KING REFINERIES: Ind-Ra Withdraws IND B+ Long term Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn King Refineries
Pvt Ltd (KRPL) 'IND B+' Long term Issuer Rating. The Outlook was
Stable.
The ratings have been withdrawn due to lack of adequate
information. Ind-Ra will no longer provide ratings or analytical
coverage for KRPL.
KRPL's ratings:
- Long-Term Issuer Rating: 'IND B+'; Outlook Stable; rating
withdrawn
- INR30 million fund based limit: 'IND B+'; Outlook Stable;
rating
withdrawn
- INR40 million non-fund-based working capital limit: 'IND A4';
rating withdrawn
Ratings
-------
Long Term Issuer Rating WD
Fund Based Working Capital Limit WD INR30m
Non-Fund Based Working Capital Limit WD INR40m
MAHARAJA PAPER: CARE Reaffirms 'B' Rating on INR14.50cr Loan
------------------------------------------------------------
CARE reaffirms the raitngs assigned to the bank facilities of
Maharaja Paper Industries Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 14.50 CARE B; Stable
Reaffirmed
Short-term Bank Facilities 3.00 CARE A4 Reaffirmed
Rating Rationale
The ratings assigned to the bank facilities of Maharaja Paper
Industries Private Limited continue to remain constrained by the
relatively small scale of operations, volatility in raw material
prices, weak financial profile with leveraged capital structure
and weak debt coverage indicators, working capital nature of
operations and cyclical nature of the pulp industry. The ratings
also factor in decline in the total operating income and increase
in net loss during FY16 (refers to the period April 1 to
March 31). The ratings, however, continue to derive strength from
the experienced promoters and management team, long-standing
track record of operations in paper industry and geographical
presence in the market with strong marketing and distribution
network.
The ability of the company to increase its scale of operations,
improve profitability and capital structure andmanage its working
capital requirements efficiently are the key rating
sensitivities.
Incorporated in January 1999, MPIPL was promoted by Mr. P. V.
Ramkrishna Raju, Mr. I. Ramalinga Raju and Late Mr. P. V.
Narasimha Raju. The company was incorporated as Rolex Paper Mills
Limited and later on, the name was changed to current
nomenclature. MPIPL is engaged in the production of paper of all
varieties, viz,
newsprint, cream wove and kraft paper. The manufacturing
facilities are located at Chintaparru, Palakol Mandal, Andhra
Pradesh, and have an installed capacity of 28000 MT per annum.
During FY16, MPIPL has reported a total operating income of
INR46.62 crore (INR48.01 crore in FY15) and net loss of INR0.88
crore (INR0.43 crore in FY15). Furthermore, the company has
achieved sales of INR26.00 crore in during 6MFY17.
MILANO PAPERS: ICRA Assigns B+ Rating to INR8.80cr Cash Loan
------------------------------------------------------------
ICRA has assigned the long term rating of [ICRA]B+ to the INR8.80
crore1 cash credit facility of Milano Papers Private Limited.
Further, ICRA has also assigned the short term rating of [ICRA]A4
to the INR1.20 crore non-fund based facility of MPPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 8.80 [ICRA]B+ assigned
Bank Guarantee 1.20 [ICRA]A4 assigned
The assigned ratings are constrained by the company's below-
average financial risk profile characterised by moderate profit
margins (because of high industry competition), high gearing
levels and moderate coverage indicators. The ratings also factor
in the exposure of company's profitability to fluctuations in raw
material (waste paper) prices as well as foreign exchange rates
in the absence of any firm hedging policy.
The assigned ratings, however, draw comfort from the long
industry experience of the promoters and their established
business relations with customers and suppliers.
Incorporated in 2011, Milano Papers Private Limited manufactures
duplex paper with varying grammage specifications ranging from
200 Grams per square metre (GSM) to 450 GSM and 14-15 and burst
factor (BF) specifications. The company is promoted by Mr.
Bachubhai Agola, along with his relatives and friends. The
company's manufacturing facility is located in Morbi, Gujarat,
and has a total installed production capacity of 36,000 Metric
Tonnes Per Annum (MTPA). Duplex paper manufactured by the company
is further used to produce duplex paper boards, which find
applications in packaging of pharmaceuticals, cosmetics,
toiletries, cigarettes, liquor, fast moving consumer goods,
export goods, etc. Apart from this, MPPL is also involved in
trading of various other varieties of paper. It mainly trades in
Kraft paper used for writing and printing purpose.
Recent Results
For the year ended March 31, 2016, MPPL reported an operating
income of INR133.67 crore and profit after tax of INR1.90 crore
as against an operating income of INR71.32 crore and profit after
tax of INR1.28 crore for the year ended March 31, 2015.
MIRAJ METALS: CARE Downgrades Rating on INR8cr LT Loan to 'D'
-------------------------------------------------------------
CARE revises the rating assigned to the bank facilities of
Miraj Metals.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 8.00 CARE D Revised from
Facilities CARE BB
(Fund-based)
Long-term/Short- 42.00 CARE D/CARE D Revised
term Bank Facilities from CARE BB/CARE A4
(Non-fund-based)
Rating Rationale
The revision in the ratings of Miraj Metals factors in the delay
in servicing of bank facilities by the company due to liquidity
issues faced by it.
Established in 2010 by Mr. Hiten Mehta, Miraj Metals is a
supplier of non-ferrous metals scrap in India, which it imports
entirely from the Middle East countries. The Middle East
suppliers, in turn, provide the scrap materials at discounted
rates (maximum 10%) to the entity for making the same available
to the Indian market. Its group concern, Miraj Recyclers Private
Limited (MRPL) procures majority of its raw material requirements
(84.96% in FY15 [refers to the period April 1 to March 31]) from
Miraj Metals. MRPL is suppliers of non-ferrous metals scrap of
copper, aluminum and iron in India, and is also engaged in the
manufacturing of aluminum ingots & copper wire rods. The
customers of the entity include Rashtriya Metal Industries
Limited (rated 'CARE BBB-/CARE A3'), Senor Metals Private
Limited, Citizen Metalloys Limited, National India Refinery, and
many others.
During FY15, the total operating income of Miraj Metals was at
INR507.73 crore (vis-a-vis INR425.66 crore in FY14), whereas the
PAT during the same year was at INR1.55 crore (vis-Ö-vis INR1.04
crore in FY14).
MIRAJ RECYCLERS: CARE Revises Rating on INR3.0cr Loan to 'D'
------------------------------------------------------------
CARE revises the rating assigned to the bank facilities of
Miraj Recyclers Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 3.00 CARE D Revised from
Facilities CARE BB
(Fund-based)
Long-term/Short- 12.00 CARE D/CARE D Revised
term Bank Facilities from CARE BB/CARE A4
(Non-fund-based)
Rating Rationale
The revision in the ratings of Miraj Recyclers Private Limited
factors in delay in servicing of Bank loans by the company due to
liquidity issues faced by it.
Incorporated in April 2013 by Mr. Hiten Mehta and Mrs Harita
Mehta, Miraj Recyclers Private Limited (MRPL) is a supplier of
non-ferrous metals scrap of copper, aluminum and iron, and is
also engaged in the manufacturing of aluminum ingots & copper
wire rods. The company procures majority of its raw material
requirements (84.96% in FY15 [refers to the period April 1 to
March 31]) from its group concern; Miraj Metals. The scrap, after
procurement, is bifurcated into aluminum, copper and iron, of
which the recyclable aluminum and copper is used to manufacture
aluminum ingots and copper wire rods respectively, whereas the
non-recyclable metals scrap is sold off in the market. The
company has its recycling facility located in Bhavnagar, Gujarat.
MRPL also has a group concern named Miraj Metals, promoted by Mr.
Hiten Mehta, which is also one of the leading suppliers of non-
ferrous metals scrap in India, which it imports entirely from the
Middle East countries. The Middle East suppliers, in turn,
provide the scrap materials at discounted rates (maximum 10%) to
the entity for making the same available to the Indian market.
MRPL procures majority of its raw material requirements (84.96%
in FY15) from Miraj Metals.
During FY15, the total operating income of MRPL was at INR31.21
crore (vis-a-vis INR12.86 crore in FY14), whereas the PAT during
the same year was at INR0.21 crore (vis-Ö-vis INR0.08 crore in
FY14).
MODERN LIVING: ICRA Suspends B+ Rating to INR9.34cr Bank Loan
-------------------------------------------------------------
ICRA has suspended [ICRA]B+ rating assigned to the INR9.34 crore,
long term bank limits of Modern Living Solutions Private Limited.
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.
Established in 1985 in the industrial belt of MIDC, Bhosari,
Pune, the company is engaged in manufacturing of wide range of
Fibre Reinforced Plastic(FRP), Sheet Moulding Compound(SMC),
Resin Transfer Moulding(RTM) and Vacuum assisted Resin Transfer
Moulding(VRTM) for Automobile, Chemical Industries, Defense
Services, Wind Energy Industries, Infrastructure (Civil
Construction), Marine, Furniture, water treatment plants,
aerospace, hydrospace, etc. It has three plants: two in Pune
(Bhosari and Chakan) mainly to look after the railway, automobile
and electrical sector and the third in Vellore (Tamil Nadu).
NOOR IMPEX: ICRA Suspends 'B' Rating on INR5.5cr Cash Loan
----------------------------------------------------------
ICRA has suspended [ICRA]B/A4 rating assigned to the INR15.00
crore line of credit of Noor Impex Private Limited. 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.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based-Cash
Credit (5.50) [ICRA]B suspended
Non Fund Based-
Letter of Credit 15.00 [ICRA]A4 suspended
Mr. Shabbir Latiwala incorporated Noor Impex Private Limited
(NIPL) in May 2009 as a private limited company. The other
shareholders included relatives and friends. Middas Overseas Fze,
a UAE based company, holds stake of 7.61% in the company. Four
directors, Mr. Allaudinbhai Latiwala, Mrs. Shahedaben Latiwala,
Mr. Shabbir Latiwala and Mr. Yusuf Latiwala manage the operations
of the company. The company is primarily a trader of imported
timber (primarily hardwood, pinewood and teakwood) from Malasiya,
New Zealand, USA, Africa and Latin America. It sells it to local
timber wholesalers. The company operates from its plant located
at Gandhidham, in Kutch district (Gujarat).
ORIENTAL PATHWAYS: CARE Upgrades Rating on INR78.66cr Loan to BB
----------------------------------------------------------------
CARE revises the rating assigned to the bank facilities of
Oriental Pathways (Agra) Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 78.66 CARE BB; Stable
Revised from CARE D
Rating Rationale
The revision in the rating assigned to the bank facilities of
Oriental Pathways (Agra) Private Limited takes into account
improvement in liquidity and financial risk profile of the
company on the back of improvement in toll collection during
7MFY17 and marginal funding support from promoters. Also, going
forward, with improved toll collection and reduced debt levels,
completion of major maintenance activity and presence of Debt
Service Reserve Account (DSRA), the reliance on funding support
from the promoters is not likely. The rating also continues to
derive strength from experience of the promoters in the roads and
highways construction and operation business.
The rating is, however, constrained by lower than envisaged toll
collection, inherent revenue risks associated with tollbased
project and interest rate fluctuation risks.
Going forward, improvement in toll collection and management of
maintenance expenses as envisaged shall be the key rating
sensitivities.
OPAPL is a special purpose vehicle (SPV) promoted by Oriental
Structural Engineers Private Limited (OSE, rated 'CARE A-
/CARE A2+') for improvement, operation & maintenance including
strengthening and widening of the existing two-lane road to four-
lane dual carriageway from km 17.756 to km 62.295 of NH- 11
(Agra-Bharatpur Section) in the states of Uttar Pradesh and
Rajasthan on a Build, Operate and Transfer (BOT) basis. OPAPL had
entered into a Concession Agreement (CA) with NHAI on March 10,
2006, for the project. The concession period for the project is
20 years including construction period of 30 months. The toll
collection started from July 2009.
During FY16 (refers to the period April 1 to March 31), OPAPL
reported toll collection of INR34.16 crore and net profit of
INR16.22 crore as against toll collection of INR27.68 crore and
net loss of INR9.09 crore in FY15. During 7MFY17, OPAPL has
achieved a toll collection of INR24.05 crore.
ORIENTAL PATHWAYS (NAGPUR): CARE Upgradess Long Term Rating to B+
-----------------------------------------------------------------
CARE revises the rating assigned to the bank facilities of
Oriental Pathways (Nagpur) Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 73.92 CARE B+; Stable
Revised from CARE D
Rating Rationale
The revision in the rating assigned to the bank facilities of
Oriental Pathways (Nagpur) Private Limited (OPNPL) takes into
account improvement in toll collection and debt servicing track
record and promoters' financial support by way of infusion of
funds. The rating is, however, constrained by lower than
envisaged toll collection leading to weak liquidity, continued
dependence on funding support from the promoters for meeting the
debt obligations, inherent revenue risks associated with toll-
based project and interest rate fluctuation risks.
The rating derives strength from experience of the promoters in
the roads and highways construction and operations business and
presence of Debt Service Reserve Account (DSRA) in the form of a
Bank Guarantee.
Going forward, improvement in toll collections, management of
maintenance expenses as envisaged and funding support from the
promoters shall be the key rating sensitivities.
OPNPL is a Special Purpose Vehicle (SPV) promoted by Oriental
Structural Engineers Pvt Ltd (OSE, rated 'CARE A-/CARE
A2+') along with Prakash Asphaltings & Toll Highways (India) Ltd
(PATH, rated 'CARE BBB+/CARE A2') for the improvement, operation
& maintenance including strengthening and widening of the
existing two-lane road to a fourlane dual carriageway from km 50
to km 100 of NH-6 (Kondhali-Talegaon section) in the state of
Maharashtra on a Build, Operate and Transfer (BOT) basis. OPNPL
had entered into a Concession Agreement (CA) with National
Highway Authority of India (NHAI) in September 2006 with a
concession period of 20 years including construction period of 36
months. The company started toll collection from May 5, 2008.
During FY16 (refers to the period April 1 to March 31), OPNPL
reported toll collection of INR29.63 crore and net loss of
INR0.96 crore as against toll collection of INR27.79 crore and
net loss of INR6.28 crore in FY15. During 7MFY17, OPNPL has
achieved a toll collection of INR17.94 crore.
PACIFIC GARMENTS: CARE Assigns 'B' Rating to INR1.86cr LT Loan
--------------------------------------------------------------
CARE assigns 'CARE B' and 'CARE A4' ratings to the bank
facilities of Pacific Garments Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 1.86 CARE B Assigned
Short-term Bank
Facilities 4.00 CARE A4 Assigned
Long-term/Short-term
Bank Facilities 0.14 CARE B; Stable/CARE A4
Assigned
Rating Rationale
The ratings assigned to the bank facilities of Pacific Garments
Private Limited are primarily constrained by small and
fluctuating scale of operations with low networth base, leveraged
capital structure and elongated inventory holding period. The
ratings are further constrained by foreign exchange fluctuation
risk and competitive nature of industries. The ratings, however,
draw comfort from experienced management and moderate
profitability.
Going forward, ability of the company to increase its scale of
operations while improving its profitability margins and capital
structure shall be the key rating sensitivities.
Noida-based, (Uttar Pradesh) Pacific Garments Private Limited
(PGPL) was incorporated in 1995. The company is engaged in
manufacturing of readymade garments for men, women and kids
segments (tops, bottoms, skirts, shirts, t-shirts etc).
The manufacturing facility of the company is located in Noida,
Uttar Pradesh having an installed capacity of 25000 pieces
per month as on September 30, 2016. The company mainly exports
its products to Japan, Australia and European countries. Also,
the company sells the products to traders located domestically.
The main raw material for the company is fabric which is procured
from traders located in Delhi and NCR and Punjab.
In FY16 (refers to the period April 1 to March 31), PGPL achieved
a total operating income (TOI) of INR14.13 crore with PAT of
INR0.58 crore as against TOI of INR17.91 crore with PAT of
INR0.28 crore in FY15. The company achieved TOI of INR10 crore in
6MFY17 (Provisional; refers to the period April 1 to
September 30).
RACHANA SEEDS: CARE Lowers Rating on INR39cr ST Loan to 'D'
-----------------------------------------------------------
CARE revises ratings assigned to bank facilities of Rachana Seeds
Industries Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 11.10 CARE D Revised from
CARE B+
Short term Bank Facilities 39.00 CARE D Revised from
CARE A4
Rating Rationale
The revision in the ratings assigned to the bank facilities of
Rachana Seeds Industries Private Limited takes into account
ongoing delays in debt servicing due to weak liquidity.
RSIPL was formed in 1985 as a partnership firm Rachana Seeds
Industries (RSI) by Mr. Vikram Duvani along with his mother Mrs.
Sarojben Duvani. In October 2011, the firm was reconstituted into
a private limited company under its current name. RSIPL is
engaged in the business of processing and trading of agro
commodities mainly groundnut seeds. The company generates more
than 80% of its revenue from processing of groundnut seeds. RSIPL
operates from its facility located at Junagadh, Gujarat. RSIPL
sells groundnut and groundnut seeds in the domestic markets as
well as export markets.
Based on audited FY15 (refers to period April 1 to March 31)
financials, RSIPL has reported total operating income (TOI) of
INR142.11 crore (FY14: INR93.53 crore) and profit after tax (PAT)
of INR0.58 crore (FY14: INR0.53 crore).
RAJ RATAN: ICRA Lowers Rating on INR18.5cr Loan to C+/A4
--------------------------------------------------------
ICRA has revised the long-term rating assigned to the INR18.50
crore bank facilities of Raj Ratan Smelter Limited) to [ICRA]C+
from [ICRA]B. The short-term rating has been reaffirmed at
[ICRA]A4.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term/short-term 18.50 [ICRA]C+/[ICRA]A4; revised
fund-based/non-fund- from [ICRA]B/[ICRA]A4
based
The ratings action is driven by RRSL's weaker-than-expected
financial performance in FY2016, as the company suffered
operating loss of INR2.55 crore and cash loss of INR5.83 crore.
The company's revenue declined by 34% in FY2016 because of lower
volumes as well as realisation, resulting in a weak risk profile
as is evident from high gearing and weak debt coverage
indicators. Additionally, the company repaid almost half of the
unsecured loans, further eroding its liquidity. ICRA's ratings
are further constrained by RRSL's modest scale of operations and
the cyclicality inherent in the iron and steel industry. The
ratings, however, are supported by the long experience of the
promoters in the steel business.
The ability of the company to ramp up its capacity utilisation
and improve its profitability will be a key monitorable.
RRSL was incorporated by the Khatri family in 2007 and is
involved in the manufacture and sale of mild steel bars. Its
plant, located in Kanpur (UP), has a capacity of 36,000 metric
tonnes (MT) per annum.
Recent Results
RRSL reported an operating income (OI) of INR75.11 crore and a
net loss of INR6.56 in FY2016, as against an OI of Rs 113.31
crore and a net profit of INR1.11 crore in the previous year.
RAJENDRA RICE: ICRA Suspends B+ Rating on INR6.95cr Loan
--------------------------------------------------------
ICRA has suspended the long term rating of [ICRA] B+ assigned to
the INR6.95 crore fund based limits of M/s Rajendra Rice &
General Mills. ICRA has also suspended rating of
[ICRA]B+/[ICRA]A4 assigned to the INR0.05 crore unallocated
limits of the firm. The suspension follows ICRA's inability to
carry out a rating surveillance in the absence of the requisite
information from the company.
RELIANCE COMMUNICATIONS: Fitch Lowers LT IDRs to 'B+'
-----------------------------------------------------
Fitch Ratings has downgraded India-based Reliance Communications
Limited's (Rcom) Long-Term Foreign- and Local-Currency Issuer
Default Ratings (IDRs) to 'B+' from 'BB-'. Fitch has also
downgraded the rating on Rcom's USD300m 6.5% senior secured notes
due 2020 to 'B+' from 'BB-' and assigned a Recovery Rating of
'RR4' to the notes. Simultaneously, the IDRs and the notes have
been placed on Rating Watch Negative (RWN)
The downgrade reflects that Fitch expectations that the group's
FFO-adjusted net leverage will not fall below 4.5x for the
foreseeable future. It is Fitch view that Rcom's plans to demerge
its wireless business into a 50:50 joint-venture and sell 51% of
its tower business, Reliance Infratel Ltd (Infratel), will be
negative for Rcom's creditors, even if receipts from the tower
transaction are used to pay down debt.
The RWN reflects that approvals from Rcom bondholders and various
authorities are required before the transactions can be
completed, which may take more than six months. The Watch will be
resolved when the new business and financial structure are
practically certain. Should the transactions proceed as the
company plans, Fitch are likely to downgrade by a single notch,
unless other funds have been raised to pay down Rcom's debt.
KEY RATING DRIVERS
Transactions to Reduce Cash Flow: The demerger of the wireless
business and sale of the Infratel stake, if completed, will leave
Rcom's debt servicing dependent on cash flow from its business-
to-business (B2B) enterprise, optical fibre and pay-TV business.
Without ownership control, Rcom would not have access to cash
flows from either the wireless JV or the tower business, other
than through dividends, and Fitch anticipates neither would be in
a position to pay a dividend for some time.
Additionally, Global Cloud Xchange (GCX) - Rcom's 100% owned sub-
sea cable business - has covenants restricting upstreaming of
cash to Rcom. At current and forecast levels of gearing, Fitch do
not believe GCX to be able to provide cash to support Rcom's
creditors. Consequently, Fitch analysis would deconsolidate GCX,
the wireless JV and Infratel as they can provide no operating
cash support to Rcom creditors. However, Fitch do not think that
these businesses will require further capital from Rcom and do
not constrain Rcom's credit profile.
Further Non-core Asset Sale: Fitch estimates that Rcom's pro
forma (excluding GCX) net debt and EBITDA would be around
USD1.5bn-1.6bn and USD240m-250m respectively in the financial
year to end-March 2018 (FY18) after the wireless demerger and 51%
stake sale in Infratel.
Fitch acknowledges that Rcom could raise further capital to pay
down holding company debt through the sale of its pay-TV
business, dilution of some of its stake in GCX and selling
surplus real estate. However, Fitch has only assumed that real
estate worth USD70m is sold in Fitch analysis; Fitch will only
include such transactions when Rcom and potential buyers commit
to a price.
Wireless Demerger is Credit Negative: Fitch believes that Rcom's
plan to hive off its wireless segment along with spectrum and
infrastructure assets and merge those with Aircel Limited is
credit negative. This is because Rcom would lose about half of
its EBITDA without any meaningful improvement in leverage. The
wireless demerger would reduce Rcom's debt and EBITDA by INR140bn
and INR35bn, respectively. The transaction is subject to
approvals from holders of the USD300m bonds, competition
authorities and Indian courts, which Rcom expects to receive by
end-March 2017.
Planned Tower Sale: Rcom's plan to sell 51% of Infratel for
USD1.6bn and use the proceeds to pay down debt will not reduce
financial leverage sufficiently to retain a 'BB-' rating. Rcom
would not have USD200m-USD220m in potential EBITDA from Infratel
and, given that Rcom is left with only 49% economic interest,
Fitch would deconsolidate Infratel in Fitch analysis and only
give credit for any dividends received. However, Fitch do not
expect Infratel to distribute any meaningful dividends during
FY18-19.
Business Risk Profile to Weaken: Rcom would transform into a B2B
company once the transactions are completed. The optical fibre
business, which would account about 53% of pro forma EBITDA, is
exposed to annual changes in the sale of its fibre capacity to
Reliance Jio, part of Reliance Industries Ltd (BBB-/Stable).
However, Fitch expects these cash flows to remain stable in the
short term given the large capacity needs of Reliance Jio due to
its data-centric telco business model. Rcom's enterprise segment,
which would contribute about USD110m-USD120m in EBITDA, benefits
from recurring revenue, long-term contracts and lower capex
requirements.
Improvement in FCF Generation: Fitch believes Rcom would generate
around USD50m-75m in FCF after the transactions, mainly due to
lower capex requirements of its enterprise and fibre segments.
Fitch forecasts capex/revenue to be around 11%-13%, mainly to
maintain its enterprise and Indian fibre assets.
Secured Bond Capped at 'RR4': Fitch have assigned a Recovery
Rating of 'RR4' on Rcom's 2020 notes. The Recovery Rating is
limited by cap of 'RR4' for India - where most of Rcom's assets
are located.
Weak Liquidity: Rcom's liquidity would improve following the
wireless demerger and Infratel sale, which in total would reduce
Rcom's debt by USD3.6bn. However, liquidity would still be
dependent on its ability to refinance maturing debt because Fitch
believe its cash generation and unrestricted cash of around
USD200m would be insufficient to pay its short-term debt of
around USD600m-650m.
Indian banks have been willing to lend on a secured basis with
immovable assets as collateral. Rcom has breached some debt
covenants, but has received waiver consents from its lenders.
KEY ASSUMPTIONS
Fitch's key assumptions within the rating case for Rcom include,
should the transactions go ahead:
- Successful completion of demerger of the wireless business and
sale of 51% ownership in Infratel by March 2017.
- Wireless demerger to reduce debt and EBITDA by INR140bn and
INR35bn respectively. The demerger will also reduce deferred
spectrum liabilities related to wireless business of INR60bn.
- Analytical deconsolidation of wireless JV, Infratel and GCX
businesses because of their inability to provide cash to support
Rcom's creditors.
- The wireless JV, Infratel and GCX do not require equity from
Rcom.
- Sale of 51% ownership in Infratel will reduce debt by
INR110bn.
- Acquisition of Sistema Shyam Teleservices Ltd (SSTL) to be
completed and consolidated from FY17. SSTL will be demerged along
with the Rcom's wireless business.
- Effective interest rate of about 7.5%-8%.
RATING SENSITIVITIES
Negative: Developments that may, individually or collectively,
lead to a negative rating action include:
- Approvals for the company's proposed transactions are received
and FFO-adjusted net leverage remains above 5.0x
Positive: Developments that may, individually or collectively,
lead to removal of the RWN and assignment of a Stable Outlook ':
- The transactions do not receive approvals and FFO-adjusted
leverage falls to below 5.0x.
RUCHI SOYA: CARE Lowers Rating on INR3,794.71cr Loan to 'D'
-----------------------------------------------------------
CARE revises the ratings assigned to bank facilities of Ruchi
Soya Industries Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank Facilities 3,794.71 CARE D Revised from
CARE B
Long Term/Short Term
Bank Facilities 6,931.40 CARE D/CARE D Revised
from CARE B/CARE A4
Rating Rationale
The revision in the ratings assigned to the bank facilities of
Ruchi Soya Industries Ltd. (RSIL) takes into account recent
delays in servicing of debt obligations on account of stress on
its liquidity on the back of huge loss posted in FY16 and
subdued operating performance in H1FY17.
Incorporated in January 1986, Ruchi Soya Industries Ltd. is
engaged in crushing of oil seeds and extraction/refining of
edible oil along with manufacturing of related products like
vanaspati and textured proteins. It is also engaged in
import/export as well as domestic trading of various agri-
commodities. It is the flagship entity of the Indore, Madhya
Pradesh based Ruchi Group, which has business interests spread
across various sectors including edible oil, agricommodity
trading, liquid and dry storage warehousing for agri-products and
real estate. RSIL has manufacturing presence at 20 locations
across the country.
RSIL registered a net loss of INR879 crore on a total operating
income of INR27,805 crore in FY16 (refers to the period from
April 1 to March 31), compared with a net profit of INR61 crore
on a total operating income of INR28,402 crore in FY15. Further
during H1FY17, RSIL reported a net profit of INR28 crore on a
total operating income of INR10,159 crore.
S S DEVELOPERS: Ind-Ra Withdraws 'IND B' Long-Term Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn S S Developers'
Long-Term Issuer Rating of 'IND B'. The Outlook was Stable. The
agency has also withdrawn the rating of 'IND B' with a Stable
Outlook on its INR264.3 million term loans.
The ratings have been withdrawn due to lack of adequate
information. Ind-Ra will no longer provide ratings or analytical
coverage for the company.
Ratings
-------
Long Term Issuer Rating WD
Term loan WD INR264.3m
S.S. CONSTRUCTION: ICRA Suspends B- Rating on INR8cr Loan
---------------------------------------------------------
ICRA has suspended the long term rating of [ICRA] B- assigned to
the INR8.0 crore fund based and non fund based facilities of S.S.
Construction. The suspension follows ICRA's inability to carry
out rating surveillance in the absence of requisite information
from the company.
SARGAM METALS: ICRA Revises Rating on INR30cr Loan to B-
--------------------------------------------------------
ICRA has revised the long-term rating on the INR2.50 crore
(revised from 5.00) term loan and the INR30.00 crore (enhanced
from 18.50) enhanced limits of the fund based facilities of
Sargam Metals Private Limited to [ICRA]B- from [ICRA]B. ICRA has
reaffirmed the short-term rating on the INR8.50 crore (revised
from 12.50) non-fund based facilities of the company at [ICRA]A4.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term, Term Loan 2.50 [ICRA]B-; revised from
[ICRA]B
Long-term, Fund- 30.00 [ICRA]B-; revised from
based facilities [ICRA]B
Short-term, Non-fund
based facilities 8.50 [ICRA]A4; reaffirmed
The revision in the long-term rating takes into account the
continued weakening of the financial profile of the company due
to erosion in the networth caused by net losses incurred over the
last three fiscals. The revision in rating also takes into
account the decline in the operating income in FY2016 due to
disruption in the operations on account of heavy floods at the
plant location, and the tight liquidity position due to elevated
receivables and inventory position. The ratings continue to be
constrained by the moderate operating profitability, the high
debt level and high interest cost which have resulted in
inadequate coverage indicators. The ratings also factor in the
fragmented and competitive nature of the aluminium-ingot
industry, which limits the pricing flexibility of the industry
participants and exposes the company to fluctuations in raw
material prices.
The ratings are, however, supported by the established track
record of the company, the considerable experience of SMPL's
promoters, spanning over four decades, in the aluminium alloys
manufacturing industry and the established relationship of the
company with its customers. The rating further takes into
consideration the favorable demand prospects for aluminium ingots
mainly in automobile segment over the medium term. ICRA also
takes cognisance of the expected improvement in capital structure
in FY2017 following the debt repayment through stake sale of
investments and fixed assets.
Incorporated in 1970, Sargam Metals Private Limited is primarily
engaged in manufacture of aluminium, zinc and manganese ingots
(contributes to ~85% of total revenues), which are used as raw
materials in foundries for producing cast products. SMPL is also
engaged in manufacture of cathode protection products, which are
used in ships, off-shore structures such as platforms, sub-sea
pipelines and structures such as jetty, wharves and barges. The
company has an alloy production facility with an installed
capacity of 7800 MT in SIPCOT Industrial estate in Cheyyar (Tamil
Nadu) recently shifted from Manapakkam, Chennai. The company is
managed by Mr. S Arun and is closely held by the promoter group.
Recent Results:
SMPL reported a net loss of INR4.1 crore on an operating income
of INR59.9 crore in FY2016 as against a net loss of INR3.7 crore
on an operating income of INR95.0 crore in FY2015.
SAVFAB DEVELOPERS: ICRA Lowers Rating on INR35cr Term Loan to D
---------------------------------------------------------------
ICRA has revised its long-term rating on the INR35.0-crore bank
facilities of Savfab Developers Pvt. Ltd. to [ICRA]D from
[ICRA]B+.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan Facility 35.0 [ICRA]D; Revised from
[ICRA]B+
ICRA has downgraded the ratings assigned to bank lines of SDPL
due to delays in servicing of debt obligations. The delays have
occurred due to mismatch in the company's repayment schedule and
its cash accruals given the slower than expected project
progress. The ratings continue to remain constrained on account
of the company's exposure to execution risk for its project as
the project remains in intermediate stages of construction. The
ratings further take into account the modest sales velocity
across the company's project and its reliance over sales of
residual inventory to bridge the gap between committed
receivables and payables. ICRA however notes the long experience
of the promoters and the fact that the company has recently
received re-schedulement for terms of its debt obligations. Going
forward, track record of regular of debt servicing will be the
key rating sensitivity.
Incorporated in 2012, SDPL is developing a residential project
called "Jasmine Grove" at Village Mehrauli, on NH-24, Ghaziabad,
Uttar Pradesh. Over the last year the company has increased the
scope of the project to 517 flats from the originally envisaged
370 flats. Correspondingly, the estimated total cost has
increased to INR139 crore from INR106 crore. While the company
had tied up the funding for the original plans, the funding tie-
up for the incremental costs is yet to occur. The same is
envisaged to be part funded through additional bank term loans of
INR15 crore, promoter infusion of INR4 crore and customer
advances of INR16 crore. The company is part of the Saviour group
which is promoted by Mr. Dhanesh Goel and Mr. Vineet Goel who
have been executing projects in NCR for many years.
SHIVA WHEELS: CARE Reaffirms B+ Rating on INR5.20cr LT Loan
-----------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Shiva Wheels Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 5.20 CARE B+; Stable
Reaffirmed
Rating Rationale
The ratings assigned to the bank facilities of Shiva Wheels
Private Limited (SWPL) are primarily constrained by its small
scale of operation, risk of non-renewal of dealership agreement,
pricing constraints and margin pressure arising out of
competition from other auto dealers in the market, working
capital intensive nature of operation, thin profit margins,
leveraged capital structure & moderate debt protection metrics.
The ratings, however, derive strength from its experienced
promoters with long track record of operation, authorized
dealership of Honda Motorcycle and Scooter India Pvt. Ltd (HMSI)
and integrated nature of business.
Going forward, ability to increase its scale of operation and
profitability margins and ability to manage working capital
effectively are the key rating sensitivities.
SWPL was established as a partnership firm, namely, Shiva Auto in
1988. Since inception, the firm has been in two wheelers selling
business. Later, in the year 2003, the firm was converted into a
company and rechristened as SWPL. Presently, the company has two
showrooms in and around Kolkata. The showroom at Ramgarh in
Kolkata sells multi brand two wheelers, spare parts and
accessories and the other showroom at B.T. Road is an authorised
dealership of HMSI for the north part of Kolkata. Apart from
this, the company has a workshop along with B.T. Road showroom.
The day-to-day affairs of the company are looked after by Mr.
Sanjib Paul, Director, with adequate support from other three
directors and a team of experienced personnel.
In FY16 (refers to the period April 1 to March 31), the company
achieved a total operating income of INR29.31 crore and PAT
of INR0.12 crore as against a total operating income of INR17.85
crore and Net loss of INR0.08 crore in FY15. The company has
achieved a turnover of INR18.79 crore during the period April 01,
2016 to September 30, 2016.
SHREE BHAWANI: CARE Reaffirms B+/A4 Rating on INR13.5cr Loan
------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Shree Bhawani Lumbers.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term/Short-term Bank
Facilities 13.50 CARE B+; Stable/
CARE A4 Reaffirmed
Rating Rationale
The ratings assigned to the bank facilities of Shree Bhawani
Lumbers continue to remain constrained on account of moderate
growth in scale of operations with thin operating profitability,
leveraged capital structure, weak debt coverage indicators and
modest liquidity position. The ratings are also constrained on
account of SBL's presence in the highly fragmented and
competitive wood processing industry with limited value addition,
susceptibility of its profit margins to volatility in raw
material prices and foreign exchange fluctuations risk along with
partnership nature of constitution restricting its financial
flexibility.
The ratings, however, take comfort from the experience of the
promoters into the wood processing business along with
established operations track record.
The ability of SBL to increase its scale of operations,
improvement in profit margins, capital structure along with
better working capital management are the key rating
sensitivities.
Gandhidham-based (Gujarat), Shree Bhawani Lumbers (SBL) is a
partnership firm established in 2003 by Mr. Satish Goyal. The
firm imports round timber logs from New Zealand and Malaysia
which is subsequently sawn and sized at its saw mill into various
commercial sizes as per the requirement of its customers. The
facility is located at Gandhidham in Kutch district of Gujarat
with a total sawing capacity of 3800 cubic feet per day as on
March 31, 2016. The timber processed by SBL finds its application
in packaging of various products apart from use in
infrastructure, building construction, interior designing,
woodwork, transportation and furniture.
During FY16, SBL reported a net profit of INR0.01 crore on a
total operating income (TOI) of INR32.67 crore as against net
profit of INR0.01 crore on a TOI of INR28.34 crore during FY15.
Furthermore, till December 01, 2016, SBL achieved a TOI of INR11
crore.
SHYAM COAL: ICRA Suspends B+ Rating on INR7.0cr Cash Loan
---------------------------------------------------------
ICRA has suspended [ICRA]B+ rating reaffirmed to the INR7.00
crore long term working capital facilities of Shyam Coal
Corporation. The suspension follows ICRA's inability to carry out
a rating surveillance in the absence of the requisite information
from the firm.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based-Cash
Credit 7.00 [ICRA]B+ suspended
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.
Shyam Coal Corporation is partnership firm engaged in grading and
trading of Indonesian coal with its plant situated at Wankaner-
Morbi, Gujarat. The firm was established in July 2013 and was
reconstituted in April 2014. The firm is currently managed by Mr.
Vinod Bhadeja, Mr. Ramesh Baria and Mr. Pravin Baria along with
four other partners having a long experience in coal and ceramic
business.
SREE GOURIPUTRA: CARE Reaffirms B+ Rating on INR6.5cr Loan
----------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Sree Gouriputra Agro Products Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 6.50 CARE B+; Stable
Reaffirmed
Short-term Bank Facilities 8.00 CARE A4 Reaffirmed
Rating Rationale
The ratings assigned to the bank facilities of Sree Gouriputra
Ago products Private Limited continue to remain constrained by
the relatively small scale of operations, moderate financial risk
profile, presence in the highly regulated fragmented and
competitive industry and seasonal nature of paddy resulting in
working capital nature of operations. The ratings also factor in
increase in profit margin and improvement in capital structure
albeit substantial decline in total operating income and
elongation of working capital cycle in FY16 (refers to the period
April 1 to March 31). The ratings however, continue to derive
strength from the experience and resourceful promoters and
location advantage with proximity to raw materials.
The ability of the company to increase its scale of operations,
improve profitability and capital structure and manage its
working capital requirements efficiently are the key rating
sensitivities.
Sree Gouriputra Agro Products Private Limited (SGP) was
incorporated as a private limited company by Mr. Kudapa
Chakrapani, Mrs Kudapa Subbalakshmi and Mr. Kudapa Hemanth Nag in
2002. The company is engaged in the processing of rice and
trading of paddy. SGP's rice milling plant is located at
Undrajavaram Village, West Godavari District, Andhra Pradesh. Mr.
Kudapa Hemanth Nag manages day to day operations of the company.
During FY16, SGAPPL has reported a total operating income of
INR13.71 crore (INR37.18 crore in FY15) and a PAT of INR0.12
crore (INR0.18 crore in FY15). Furthermore, the company has
achieved sales of INR14.33 crore during 7MFY17.
SUDHAMSU EXIM: ICRA Assigns B+/A4 Rating to INR15cr Loan
--------------------------------------------------------
ICRA has assigned the long term rating of [ICRA]B+ and short term
rating of [ICRA]A4 to the INR15.00 crore unallocated limits of
Sudhamsu Exim Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Unallocated Limits 15.00 [ICRA]B+/[ICRA]A4 assigned
The assigned ratings are constrained by SEPL's small scale of
operations with revenues of INR54.15 crore in FY2016 in the
construction industry; weak financial risk profile with thin
operating margin. The ratings are also constrained by high sector
concentration risk with presence only in housing and renewable
energy sector; and high execution risk involved on the back of
significantly large order book in comparison to current scale of
operations. The ratings, however, positively factors in the
medium term revenue visibility with order book to operating
income ratio at 5.93 times as on March 31, 2016; receipt of new
order worth INR131.40 crore from Jharkhand Renewable Energy
Development Agency (JREDA) for rural electrification works.
Going forward, the ability of the company to timely execute the
order book and improve its profitability levels will be the key
rating sensitivities.
Sudhamsu Exim Private Limited was incorporated in 2008 and is
promoted by Mr. M. Pruthvi Raj Reddy and family. Up to FY2013,
the company was involved in trading of construction materials.
From FY2014 onwards, the company has been involved in execution
of civil projects related to construction of houses and for
renewable energy generation. The company is currently involved in
the execution of civil works for 100MW wind power project for
Axis Energy Limited. Also, the company has recently received the
order from JREDA for Design, Testing, Supply, Installation and
Commissioning of indigenous solar photovoltaic power plant for
rural electrification of 290 villages in Jharkhand.
Recent Results
The company has reported an operating income of INR27.96 crore
and profit after tax of INR0.25 crore in 6M FY2017 (provisional)
as against the operating income of INR54.15 crore and profit
after tax of INR0.40 crore in FY2016. The company has reported an
operating income of INR45.52 crore and profit after tax of
INR0.31 crore in FY2015.
THREE STAR: CARE Reaffirms 'B' Rating on INR.21cr LT Loan
---------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Three Star Marine Exports.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 0.21 CARE B; Stable
Reaffirmed
Short term Bank Facilities 9.50 CARE A4 Reaffirmed
Rating Rationale
The ratings assigned to the bank facilities of Three Star Marine
Exports (TSME) continue to be constrained by small scale of
operations, thin profitability and weak debt coverage indicators.
The ratings are further constrained by profitability susceptible
to foreign exchange fluctuation risk and working capital
intensive nature of operations.
The ratings, however, continue to derive strength from the long
experience of the partners in the processed sea food products
business, established operational track record of the firm and
satisfactory capital structure.
Going forward, the ability of the firm to scale up its
operations, sustain its operating margin amidst volatility in raw
material prices and manage working capital requirement
efficiently would be the key rating sensitivity.
Three Star Marine Exports is a partnership firm established in
2011 by Mr. K K Ashraf, Mr. Harshad, Mr. Naushad, Mr. Suharabi,
Mr. Nasmudeen and Mr. P M Ahmedkutty. TSME is engaged in export
of processed sea food products with the present installed
capacity of 10 tons per day. The sea food products include
Shrimp, Cuttlefish, Squid, Octopus, Fish, Ribbon fish, Seafood
mix etc. The sea food products are sold under the brand name
"TME". Initially, the firm was operating in the name of "Three
Star Fisheries" (TSF) since 1980 with a major focus on domestic
sales. Later in 2011, the name of the firm was changed to TSME
and the firm ventured into export market. From the year 2012,
TSME started concentrating only on export sales. TSME primarily
exports sea food products to Italy, Spain, Thailand, China, and
Vietnam and has around 8 regular
customers who contribute around 80% to the total sales.
In FY16(refers to the period of April 01 to March 31), TMSE
reported total operating income of INR 19.20 crore and a profit
after tax of INR0.09 crore as against a total operating income
and profit after tax of INR16.17.crore and INR0.05 crore,
respectively, in FY15.
TIRUPATI EDUCATIONAL: ICRA Suspends D Rating on INR18.30cr Loan
---------------------------------------------------------------
ICRA has suspended the [ICRA]D rating for the INR18.30 Crore bank
facilities of Tirupati Educational and Welfare Trust. The
suspension follows lack of co-operation from the company.
TRUBA ADVANCE: CARE Upgrades Rating on INR7.27cr Loan to 'B'
------------------------------------------------------------
CARE revises the ratings assigned to the bank facilities of
Truba Advance Sciences Kombine.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 7.27 CARE B; Stable Revised
From CARE D
Short-term Bank Facilities 7.50 CARE A4 Revised from
CARE D
Rating Rationale
The revision in the long-term rating assigned to the bank
facilities of Truba Advance Sciences Kombine is primarily
on account of regularization of its debt servicing. The ratings
also take into consideration moderate scale of operations
and profit margins, comfortable capital structure and moderate
debt coverage indicators.
The ratings, however, continue to remain constrained on account
of marginal decline in scale of operations during FY16 (refers to
the period April 1 to March 31) and weak liquidity position along
with entity engaged in highly regulated education industry with
regard to approvals and accreditations.
The ability of TRUBA to improve profit margins and capital
position along with better working capital management are the
key rating sensitivities.
Bhopal-based (Madhya Pradesh), Truba was formed in August 2000 as
a Society under the Madhya Pradesh Registrar Firm and Society,
1973 by Mr. Shyam Rathor, Mr. Dharmendra Singh Raghuvanshi and
Mr. Sunil Dandir with the object of setting up professional
education institutions. Presently, Truba offers various
graduation and post-graduation courses in Engineering and
Pharmacy through three educational institutions named Truba
Institute of Engineering and Information Technology (TIEIT;
started in 2000), Truba College of Science and Technology (TCST;
started in 2009), Truba Institute of
Pharmacy (TIP; started in 2005).
The trust started offering post-graduation courses of Engineering
in TIEIT in AY07 and in TCST in AY12. Truba has also started
post-graduation courses in Pharmacy in AY08. Engineering colleges
of Truba are affiliated to Rajiv Gandhi Prodhoyogic Vishva
Vidhyalaya, Bhopal and Pharmacy College is recognized by Council
of Pharmacy.
During FY16 (A; refers to the period April 1 to March 31), TRUBA
reported a total operating income (TOI) of INR21.30 crore with a
PAT of INR2.13 crore as against TOI of INR23.84 crore with a PAT
of INR2.37 crore in FY15 (A). During 8MFY17 (Provisional), TRUBA
achieved a TOI of INR9.00 crore.
TWINCITY SUNLIFE: Ind-Ra Withdraws 'IND B+' LT Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Twincity
Sunlife Pvt. Ltd.'s 'IND B+(suspended)' Long-Term Issuer Rating.
The ratings have been withdrawn due to lack of adequate
information. Ind-Ra will no longer provide ratings or analytical
coverage for the company.
Ind-Ra suspended TSPL's ratings on April 22, 2016.
TSLP's ratings:
- Long-Term Issuer Rating: 'IND B+(suspended)'; rating
withdrawn
- INR65 million fund-based working capital limit: 'IND
B+(suspended)'; rating withdrawn
- INR35 million non-fund-based working capital limit:
'INDA4(suspended)'; rating withdrawn
Ratings
-------
Long Term Issuer Rating WD
Fund Based Working Capital Limit WD INR65m
Non-Fund Based Working Capital Limit WD INR35m
VIBFAST PIGMENTS: Ind-Ra Affirms IND BB- Long-Term Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed M/s Vibfast
Pigments' Long-Term Issuer Rating at 'IND BB-'. The Outlook is
Stable. The agency has also affirmed VP's INR98.2 million fund-
based working capital limits at 'IND BB-' with a Stable Outlook
and 'IND A4+'.
KEY RATING DRIVERS
The affirmation reflects VP's continued moderate financial and
credit profile. In FY16, revenue was INR408.4 million (FY15:
INR379.2 million), net leverage (Ind-Ra adjusted net
debt/operating EBITDAR) was 6.7x (FY15: 4.7x) and EBITDA interest
cover was 3.2x (3.7x). The fall in credit metrics in FY16 was due
to a marginal decline in the EBITDA margin to 4.2% (FY15: 4.3%).
Moreover, the total debt increased to INR120.3 million in FY16
(FY15: INR82.7 million) and therefore interest expenses grew to
INR5.4 million (INR4.4 million). Susceptibility of VP's margins
to volatility in raw material prices and foreign exchange
fluctuations continues to constrain the ratings. The ratings also
factor in the partnership structure of the firm's business.
The ratings are supported by VP's two decades of experience in
manufacturing dyes and pigments and its strong customer
relationships. VP's comfortable liquidity position as evident
from the average peak utilisation of 73% of its fund-based limits
during the 12 months ended November 2016 also supports the
ratings.
RATING SENSITIVITIES
Positive: A substantial increase in the revenue and operating
profitability leading to an improvement in the credit profile
could result in a positive rating action.
Negative: A decline in the operating profitability resulting in
sustained deterioration in the credit profile could lead to a
negative rating action.
COMPANY PROFILE
Incorporated in 1995, VP is an export-oriented partnership entity
headed by Amit Banthia. The firm manufactures and exports a
variety of dyes and pigments to European and Asian countries.
VIBFAST PIGMENT PRIVATE: Ind-Ra Affirms 'IND BB-' Issuer Rating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Vibfast Pigment
Private Limited's Long-Term Issuer Rating at 'IND BB-'. The
Outlook is Stable.
KEY RATING DRIVERS
The affirmation reflects VPPL' continued moderate financial and
credit profile. In FY16, revenue was INR385.8 million (FY15:
INR398.2 million), net leverage (Ind-Ra adjusted net
debt/operating EBITDAR) was 7.4x (FY15: 5.5x) and EBITDA interest
cover was 3.5x (3.7x). The fall in credit metrics in FY16 was due
to a marginal decline in the absolute EBITDA to INR15.3 million
(FY15: INR15.7 million) on the marginal revenue decline.
Moreover, the total debt increased to INR113.1 million in FY16
(FY15: INR87.7 million) and therefore interest expenses grew to
INR4.4 million (INR4.3 million). Susceptibility of VPPL's margins
to volatility in raw material prices and foreign exchange
fluctuations continues to constrain the ratings.
The ratings are supported by VPPL's two decades of experience in
manufacturing dyes and pigments and its strong customer
relationships. VPPL's comfortable liquidity position as evident
from the average peak utilisation of 76% of its fund-based limits
during the 12 months ended November 2016 also supports the
ratings.
RATING SENSITIVITIES
Positive: The company's ability to report a substantial increase
in the revenue while maintaining the operating profitability
leading to an improvement in the credit profile could result in a
positive rating action.
Negative: A decline in the operating profitability resulting in
sustained deterioration in the credit profile could lead to a
negative rating action.
COMPANY PROFILE
Incorporated in 1993, VPPL (erstwhile Vibgyor Chemtex)
manufactures, supplies and exports a wide assortment of dyes and
pigments. Headed by Amit Banthia, the company exports pigments to
European and Asian countries.
VPPL's ratings:
- Long-Term Issuer Rating: affirmed at 'IND BB-'; Outlook Stable
- INR93.5 million fund-based working capital limit: affirmed at
'IND BB-'; Outlook Stable and 'IND A4+'
- INR11 million non-fund-based working capital limit: affirmed at
'IND A4+'
Ratings
-------
Long Term Issuer Rating IND BB-/Stable
Fund Based Working Capital Limit IND BB-/Stable INR93.5m
Fund Based Working Capital Limit IND A4+ INR93.5m
Non-Fund Based Working Capital Limit IND A4+ INR11m
ZEN TOBACCO: CARE Reaffirms 'B' Rating on INR5.50cr Bank Loan
-------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Zen Tobacco Pvt Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 5.50 CARE B; Stable
Reaffirmed
Rating Rationale
The rating assigned to the bank facilities of Zen Tobacco Pvt Ltd
continues to remain constrained on account of leveraged capital
structure, weak debt coverage indicators, moderate liquidity and
working capital cycle. The rating is further constrained due to
the susceptibility of business operations to adverse changes in
government regulations and seasonality associated with the raw
material availability and susceptibility of its profitability to
volatility in raw materials prices. The rating takes into account
the growth in scale of operations and cash profit reported by the
company during FY16 (refers to a period of April 1 to March 31).
The rating, however, derives strength from the established
operational track record of over a decade and the vast experience
of the promoters in the tobacco industry, established sourcing
arrangements with tobacco vendors for the procurement of raw
materials and wide distribution network for its products.
Increase in the scale of operations along with an improvement in
profitability while mitigating the fluctuation in raw material
prices and better working capital management are the key rating
sensitivities.
Ahmedabad based ZTPL was established in the year 2003. The main
products of ZTPL are Chewing Tobacco (Zarda). Rashmin Manjithia,
Managing Director, manages the day to day operations of ZTPL. The
company markets its products under the brand 'Mazaa', 'Hero' and
'Eagle' across India. Its plant, located at Ahmedabad had a total
installed capacity of 1400 Metric Tonnes Per Annum (MTPA) of
Chewing Tobacco as on March 31, 2016.
During FY16, ZTPL reported a net profit of INR0.27 crore on a
total operating income (TOI) of INR28.38 crore as against net
loss of INR2.44 crore on a TOI of INR23.43 crore during FY15.
Furthermore, till November 30, 2016, ZTPL reported gross
sales of INR51 crore.
=========
J A P A N
=========
ASAHI LIFE: Fitch Affirms 'BB+' Insurer Financial Strength Rating
-----------------------------------------------------------------
Fitch Ratings has affirmed Asahi Mutual Life Insurance Co.'s
Insurer Financial Strength (IFS) Rating at 'BB+' with a Stable
Outlook.
KEY RATING DRIVERS
The rating is based on Asahi Life's moderately improving capital
adequacy and financial leverage as well as its resilient
insurance underwriting, supported by a strategic focus on the
profitable "third" (health) sector. Its statutory solvency margin
ratio (SMR) was an adequate 707% at end-September 2016, from 668%
a year earlier. Its financial leverage was also reasonable,
remaining at 42%, from 41% a year earlier.
However, the insurer's capital position is weak compared with
peers, which had an average SMR of more than 900%. In addition,
Asahi Life had a large negative spread burden of JPY35bn in the
first half of the financial year ending March 2017 (1HFYE17)
(1HFYE16: JPY33bn), which continues to offset gains from better-
than-projected mortality and morbidity rates. Fitch expects the
insurer's negative spread burden to gradually shrink over the
medium-term along with declining average guaranteed yields.
Asahi Life's underwriting business has been stable due to an
effective focus on the third sector. The core profit margin
remained adequate at 6% in FYE16, from 7% in FYE15. The segment's
annual premiums of in-force policies increased by 7.4% yoy in
1HFYE17, due partly to effective sales promotion via non-
traditional channels. Fitch believes efforts in marketing third-
sector products via non-traditional channels, such as telephone
marketing, are likely to further enhance the segment's strength.
RATING SENSITIVITIES
Key rating triggers for an upgrade include a further
strengthening of capitalisation and a decline in financial
leverage to below 35% on a sustained basis. Growth in the third-
sector business and lower surrender and lapse rates of death-
protection products would also be positive.
Key rating triggers for a downgrade include a major erosion of
capitalisation; higher financial leverage to above 45%; and
significant deterioration in profitability, such as the core
profit margin falling below 5% on a sustained basis.
===============
M A L A Y S I A
===============
1MALAYSIA: Paid Interest on Bonds With Own Funds This Quarter
-------------------------------------------------------------
Elffie Chew and Shamim Adam at Bloomberg News report that
1Malaysia Development Bhd. paid the interest on its bonds that
were due this quarter after the debt's Abu Dhabi co-guarantor was
compelled to service the coupons earlier in 2016, which had led
to the deepening of a $6.5 billion dispute.
The payments could be part of an approach by 1MDB's management to
amicably settle a spat with International Petroleum Investment
Co. PJSC even as the two sides pursue arbitration talks,
Malaysia's Second Finance Minister Johari Abdul Ghani said in an
interview on Dec. 20, Bloomberg relays. The finance ministry
oversees the state-owned investment company and is increasingly
taking over its assets and projects as the government winds down
the embattled fund.
According to Bloomberg, the sovereign companies are locked in a
tussle that had spilled over to repayments on two sets of bonds
issued by 1MDB and co-guaranteed by IPIC. That led to a default
in April, adding to the financial scandals for the Malaysian fund
that's already at the center of global probes into alleged money
laundering and embezzlement, the report relates. IPIC paid the
coupons after 1MDB missed them in April and May.
"As far as 1MDB is concerned, the bond is still a 1MDB bond,"
Johari said of the coupon payments made this quarter, Bloomberg
relays. The company's management will decide who should provide
the funds to pay subsequent coupons on the two $1.75 billion
dollar bonds, he said. 1MDB didn't immediately reply to an e-mail
seeking comment, adds Bloomberg.
According to Bloomberg, IPIC is seeking $6.5 billion from 1MDB
and Malaysian government for failure to perform their debt
obligations as the dispute moves into arbitration. Among the
issues between the two are billions in allegedly missing funds.
"We had made a payment to IPIC -- $3.5 billion -- so if they say
they have not received it, this is where we have to sit down and
see what happened," Bloomberg quotes Johari as saying. 1MDB has
said it could be a victim of fraud if payments intended for IPIC
never made it there, while the latter had denied ownership in the
company that 1MDB transferred money to.
The arbitration is still at the case management stage, and 1MDB
is simultaneously trying to find a way on whether it can "sit
down and resolve this amicably" with IPIC, Johari, as cited by
Bloomberg, said.
The Ministry of Finance has taken control from 1MDB of the
development of the Tun Razak Exchange financial district, Johari
said, Bloomberg relays. The government is also overseeing the
Bandar Malaysia development, a mixed-property project in the
Malaysia capital that will host as terminal for the Singapore-
Kuala Lumpur high-speed rail and offer future access to major
highway networks, the minister said.
"We are going to run off 1MDB, there are no more activities in
1MDB," the report quotes Johari as saying.
Scandals surrounding 1MDB have weighed on investor sentiment in
Malaysia, and Johari said the country needs to learn lessons from
the episode and recover, according to Bloomberg.
"What I want to stress is that this is something that won't make
the Malaysian economy collapse," Johari said of 1MDB and issues
including its dispute with IPIC. "We must learn from the mistakes
we made. We must make sure we have the right business model, good
management and good corporate governance."
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.
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.
The TCR-AP, citing The Wall Street Journal, reported on April 27,
2016, that the company defaulted on a $1.75 billion bond issue,
triggering cross defaults on two other Islamic notes totaling
MYR7.4 billion ($1.9 billion).
Asian Nikkei Review reported in June 2016 that Malaysia has
replaced the board of 1Malaysia Development Berhad with treasury
officials, paving the way for the dissolution of the troubled
state investment fund.
KUANTAN FLOUR: Felcra Withdraws Proposed Reverse Takeover
---------------------------------------------------------
The Star Online reports that in an unexpected about-turn days
after its initial announcement, the Federal Land Consolidation
and Rehabilitation Authority Bhd (Felcra) has withdrawn its
interest in a proposed reverse takeover (RTO) of Kuantan Flour
Mills Bhd (KFM).
The Star Online relates that in a filing with Bursa Malaysia, KFM
said it had received a letter from Felcra which said "after
urgent deliberation of our register of interest to explore the
possibility of participating in KFM's equity, we hereby inform
that, effective immediately, we are retracting our register of
interest and ceasing all exploratory pursuit to participate in
KFM's equity.
"As such, our letter dated Dec. 9, 2016 to KFM shall no longer be
of any effect."
According to the Star Online, KFM had announced on Dec. 13 that
Felcra had made known of its interest to acquire a stake in the
Practice Note 17 (PN17)-categorised company under a proposed RTO
exercise. This was seen as a backdoor listing plan for Felcra.
PN17 companies are referred to as financially-distressed entities
which need to submit their proposals to Bursa Malaysia to
restructure and revive themselves to maintain their listing
status, the report notes.
The Star Online says Felcra had planned for a listing of its
company, Felcra Holdings Bhd, before the end of 2013. The plan,
however, failed to materialise.
Had the proposed RTO materialised, Felcra could have injected
suitable profit-generating assets into KFM, apart from
introducing a regularisation plan to help KFM exit its PN17
status, the report states. An RTO exercise would have also taken
place, enabling Felcra to achieve a listing status on the Main
Market of Bursa Malaysia, the report says.
In the final quarter of financial year ended Sept. 30, 2016
(FY16), KFM reported a net loss of MYR4.5 million on the back of
a mere MYR2,000 in revenue. However, for FY16, the net loss
narrowed by 28.2% to MYR12.1mil year-on-year, the Star Online
discloses.
Kuantan Flour Mills Berhad is a Malaysia-based company engaged in
flour milling and trading in its related products.
As reported in the Troubled Company Reporter-Asia Pacific on
Dec. 8, 2016, theedgemarkets.com said Kuantan Flour Mills Bhd, a
PN17 company since Dec 12, 2015, is still looking into the
formulation of its regularization plan of its financial
conditions. KFM has approximately one month to submit its
regularization plan to the relevant authorities for approval.
=================
S I N G A P O R E
=================
CHINA FISHERY: Wants Plan Filing Deadline Extended Thru March 31
----------------------------------------------------------------
China Fishery Group Limited and certain of its affiliated debtors
request the U.S. Bankruptcy Court for the Southern District of
New York to extend the exclusive periods during which only the
Debtors may file a chapter 11 plan and solicit acceptances,
specifically, extending the exclusive periods through and
including March 31, 2017 and May 31, 2017, respectively.
William Brandt, the Chapter 11 Trustee for CFG Peru Singapore,
has expressed his support for an extension while he still works
to assess and stabilize the Peruvian businesses. The Trustee has
specifically requested that the Debtors hold off on their own
independent efforts to develop and communicate a chapter 11 plan
term sheet and business plan.
The Debtors relate that prior to the appointment of the Chapter
11 Trustee, the Debtors and their professionals had been prepared
to propose a framework for a restructuring and to provide their
creditors and interest holders with a term sheet, and then meet
with various creditor constituencies within the week of
November
14.
The Debtors further relate that immediately after his
appointment, the Chapter 11 Trustee conveyed his strong
preference for the Debtors and Pacific Andes Resources
Development Limited to suspend work on the term sheet and or
related business plan in order to allow him time to assess the
situation and take such other actions as he deemed necessary
prior to commencement of restructuring negotiations.
A hearing on the Debtor's motion will be held on January 4, 2017
at 11:00 a.m. Objections are required to be filed and served no
later than December 28, 2016.
About China Fishery Group
China Fishery Group Limited (Cayman) and its affiliates sought
protection under Chapter 11 of the Bankruptcy Code (Bankr.
S.D.N.Y. Case No. 16-11895) on June 30, 2016. The petition was
signed by Ng Puay Yee, chief executive officer. The case is
assigned to Judge James L. Garrity Jr. At the time of the
filing, the Debtor estimated its assets at $500 million to $1
billion and debts at $10 million to $50 million.
Howard B. Kleinberg, Esq., Edward J. LoBello, Esq. and Jil
Mazer-Marino, Esq. of Meyer, Suozzi, English & Klein, P.C. serve
as legal counsel. The Debtor has tapped Goldin Associates, LLC,
as financial advisor and RSR Consulting LLC as restructuring
consultant.
On November 10, 2016, William Brandt, Jr. was appointed as
Chapter 11 trustee of CFG Peru Investments Pte. Limited
(Singapore). Chapter 11 Trustee employs Skadden Arps Slate
Meagher & Flom LLP as counsel and Hogan Lovells US LLP as special
counsel to the Trustee.
RICKMERS MARITIME: Noteholders Reject Debt Restructuring Plan
-------------------------------------------------------------
The Business Times reports that Rickmers Maritime said investors
rejected a debt restructuring plan for its SGD100 million note on
Dec. 21, prolonging uncertainty about its future.
According to the report, Rickmers is among a growing list of
companies in Singapore that have been struggling to meet their
debt commitments this year and have asked bondholders for
leniency.
Increasingly, individual bond investors, including those in
Rickmers, have been teaming up to seek better terms, making it
more difficult for some of the indebted companies to pursue
restructuring plans, Business Times relates.
In November, Rickmers had said it faced the risk of going out of
business given the uncertain outcome of its debt restructuring
discussions, the report recalls. The company has been struggling
amid the broader downturn in the shipping industry, says Business
Times.
Rickmers Maritime (SGX:B1ZU) -- http://www.rickmers-maritime.com/
-- is a Singapore-based business trust that owns and operates
containerships mainly under fixed-rate time charters to global
container liner companies. The Trust owns a portfolio of
approximately 20 containerships ranging from 3,450 twenty foot
equivalent unit (TEU) to 5,060 TEU, offering a total capacity of
approximately 66,410 TEU. The Company's subsidiaries include
Kaethe Navigation Limited, Richard II Navigation Limited, Henry
II Navigation Limited, Moni II Navigation Limited, Vicki Rickmers
Navigation Limited, Maja Rickmers Navigation Limited, Laranna
Rickmers Navigation Limited, Sabine Rickmers Navigation Limited,
Clan Navigation Limited and Ebba Navigation Limited. The Trust is
managed by Rickmers Trust Management Pte. Ltd.
====================
S O U T H K O R E A
====================
LG CHEM: Picked for Fast-Track Restructuring Program
----------------------------------------------------
Yonhap News Agency reports that five South Korean firms,
including LG Chem Ltd., the country's largest chemicals
manufacturer, received government approval to carry out voluntary
corporate restructuring through fast-track legal and
administrative procedures, the trade ministry said Dec. 21.
Yonhap relates that the Ministry of Trade, Industry and Energy
said a government panel chose the firms to endorse their proposed
restructuring efforts to boost competitiveness.
According to the report, LG Chem, which posted KRW20.2 trillion
in sales last year, said it will convert its polystyrene
facilities in Yeosu into higher-ended acrylonitrile butadiene
styrene copolymer lines.
As a result, the company's output of polystyrene, one of the
oversupplied chemicals, will decline to 50,000 tons per year from
the current 100,000 tons, it added, Yonhap relays.
LG Chem accounts for 14 percent of the South Korean polystyrene
market of an annual 726,000 tons, the report discloses.
Yonhap says the four other small and mid-sized companies, which
are all engaged in the shipbuilding equipment industry, had plans
to sell off their factories or reduce production but instead
increased investment in sectors like power generators and higher
speed vessels.
With the latest five companies, the number of companies subjected
to the "one-shot" act rose to 15, as part of the Seoul
government's efforts to speed up corporate restructuring in the
shaky industries, including shipbuilding, steel and
petrochemical, according to Yonhap.
Yonhap notes that the law came into effect in August to help
businesses conduct intra-corporate mergers and spin-offs through
simplified procedures that included exemptions from strict
antitrust laws and financial market regulations. They will also
be given tax benefits and subsidies for research and development
on corporate restructuring.
Under the new law, the companies that want to benefit from the
fast-track corporate restructuring procedures are required to win
government approval, says Yonhap.
===========
T A I W A N
===========
TRANSASIA AIRWAYS: May Be Delisted from TWSE on Feb. 2
-------------------------------------------------------
Taipei Times reports that TransAsia Airways Corp. shares could be
delisted from the local bourse on Feb. 2 next year, the Taiwan
Stock Exchange (TWSE) said.
Since TransAsia's abrupt dissolution of its business last month,
the carrier has issued a number of bad checks and defaulted on
debts, Taipei Times says.
Taipei Times relates that the TWSE said the carrier on Dec. 16
was flagged by financial institutions and placed on a list of
companies that they would not do business with because of
insufficient funds.
According to the report, the exchange said regulations stipulate
that once a company has a record of refusal from financial
institutions, its shares are to delisted in 40 days. However,
should the company meet its obligations in the eight business
days prior to its delisting -- before the end of Jan. 17 -- its
shares may remain in circulation on the local bourse, the TWSE
said.
The report says the decision is likely to result in losses for
investors, who took on about 150 million TransAsia shares,
speculating that the financially distressed carrier would be
restructured by a peer.
Taipei Times says TransAsia shares have been tanking since it
announced its impending closure last month. However, the stock
surged when Former Civil Aeronautics Administration director-
general Billy Chang announced mid-trading on Nov. 29 that he and
a group of backers were willing to take over the carrier. The
following day, Chang declared that the plans had fallen through.
The report relates that TransAsia shares rallied once again on
Dec. 16, after Far Eastern Air Transport Corp announced its
interest in restructuring the troubled airline.
TransAsia's creditor banks were pessimistic about Far Eastern's
plans, saying that they preferred to dispose of TransAsia's
remaining aircraft and assets, adds Taipei Times.
As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 24, 2016, Reuters said TransAsia Airways Corp said on
Nov. 22 it would wind down operations and suspend all scheduled
flights, failing to recover from two plane crashes in almost
three years. In addition to struggling to overcome safety
concerns raised by Taiwan's regulator, the island's third-largest
carrier has been hit by intense competition, reporting losses for
the previous six quarters, Reuters saof. It shut down its low-
cost offering, V Air, in October.
*********
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 ***