/raid1/www/Hosts/bankrupt/TCRAP_Public/170109.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, January 9, 2017, Vol. 20, No. 6
Headlines
A U S T R A L I A
CASTLE GLAZING: Placed in Administration
CULLEN GROUP: BG Dev. Owes Firm AUD1MM for Townhouse Project
DIPLOMA GROUP: Presents Proposed Deed at Creditors' Meeting
FORGE GROUP: Files for Chapter 15 Bankruptcy Protection
FORGE GROUP: Chapter 15 Case Summary
MAGNATE GREY: First Creditors' Meeting Set for Jan. 16
C H I N A
CHINA AOYUAN: Fitch Assigns BB- Rating to Proposed US$ Sr. Notes
KWG PROPERTY: Fitch Publishes 'BB-' Issuer Default Rating
LOGAN PROPERTY: Fitch Assigns 'BB-' Rating to USD200MM Sr. Notes
YINGDE GASES: Fitch Affirms B+ IDR & Removes from Watch Negative
H O N G K O N G
SKYPEOPLE FRUIT: Request to Remain Listed on Nasdaq Granted
I N D I A
ACTION ISPAT: ICRA Suspends 'D' Rating on INR836.54cr Term Loans
AL AZIZ: ICRA Suspends 'D' Rating on INR7.50cr Loan
ANJANI COTTON: ICRA Suspends B+ Rating on INR19.75cr LT Loan
ARSHIA GLOBAL: Ind-Ra Withdraws 'BB-' Long-Term Issuer Rating
BALAJEE PLY-PRODUCT: CRISIL Rates INR30MM Cash Loan at B-
BALAJI INDUSTRIES: CRISIL Assigns B+ Rating to INR49MM Cash Loan
BALMUKUND CONCAST: Ind-Ra Withdraws 'BB' Long-Term Issuer Rating
BANSAL REALTECH: Ind-Ra Withdraws 'BB' Long-Term Issuer Rating
BHARAT ISPAT: Ind-Ra Withdraws 'BB+' Long-Term Issuer Rating
BHASIN INDUSTRIES: Ind-Ra Withdraws 'BB' Long-Term Issuer Rating
BHATIA COAL: Ind-Ra Withdraws 'B+' Long-Term Issuer Rating
BHATIA GLOBAL: ICRA Suspends 'D' Rating on INR864cr Bank Loan
CADCHEM LABORATORIES: CRISIL Assigns B+ Rating to INR72.5MM Loan
CHITIZ DAIRY: CRISIL Assigns 'B' Rating to INR75MM LT Loan
DYNAMIC(CG) EQUIPMENTS: CARE Cuts Rating on INR49cr LT Loan to D
ENCON IMPEX: ICRA Suspends B+ Rating on INR8.50cr LT Loan
ETCO DENIM: CARE Lowers Rating on INR246.45cr LT Loan to D
ETCO INDUSTRIES: CARE Reaffirms 'D' Rating on INR140.56cr LT Loan
GAGAN TREXPO: CRISIL Assigns 'B' Rating to INR50MM Cash Loan
GANPATI INFRASTRUCTURE: Ind-Ra Withdraws 'BB+' Issuer Rating
GARVE MOTORS: CARE Upgrades Rating on INR16cr LT Loan to B+
GEETHA KRISHNA: ICRA Suspends B+ Rating on INR25cr Bank Loan
GOPINATH DAIRY: ICRA Reaffirms 'D' Rating on INR14cr Loan
GOVIND CABLE: ICRA Reaffirms 'B' Rating on INR6.0cr LT Loan
GRAND CONSTRUCTION: ICRA Suspends 'B' Rating on INR5cr Loan
GREEN VILLAGE: Ind-Ra Withdraws 'BB' Long-Term Issuer Rating
HI-ROCK CONSTRUCTION: ICRA Suspends B+ Rating on INR20cr Loan
HYDROTECH PARYAVARAN: Ind-Ra Withdraws 'BB-' LT Issuer Rating
IMPEX METAL: ICRA Suspends 'D' Rating on INR500cr LOC
INDIA DAIRY: CARE Assigns 'B+' Rating to INR15cr LT Loan
INDIA FROZEN: Ind-Ra Withdraws 'B+' Long-Term Issuer Rating
INDIAN CROP: ICRA Reaffirms B+ Rating on INR5.0cr Cash Loan
INDUSTRIAL HANDLING: CRISIL Assigns B+ Rating to INR28.3MM Loan
K. MOIDEENKUTTY: ICRA Suspends 'B' Rating on INR5cr LT Loan
KHAYA SOLAR: ICRA Upgrades Rating on INR54.20cr Loan to B-
KRISHNA COTTEX: CRISIL Reaffirms 'B' Rating on INR40MM Cash Loan
LANCO SOLAR: ICRA Reaffirms 'D' Rating on INR425cr Loan
LANCO SOLAR PRIVATE: ICRA Reaffirms 'D' Rating on INR940cr Loan
LUMBINI CONSTRUCTIONS: CRISIL Assigns B- Rating to INR200M Loan
M. MOHANDOSS: ICRA Suspends 'B/A4' Rating on INR5.25cr Loan
MAHESHWARI TECHNOCAST: CRISIL Assigns B Rating to INR39.5MM Loan
MILANO PAPERS: ICRA Assigns B+ Rating to INR15cr Cash Loan
MOUNT INFRA: ICRA Suspends 'B' Rating on INR7cr LT Loan
NAVKAR BUILDCON: ICRA Reaffirms B- Rating on INR15cr LT Loan
NECO HEAVY: ICRA Lowers Rating on INR12.5cr LT Loan to B+
PETRO-CHEM INDUSTRIES: CRISIL Reaffirms B+ Cash Credit Rating
PROVET PHARMA: CRISIL Reaffirms B+ Rating on INR95MM Cash Loan
R RAJAN: ICRA Suspends B+ Rating on INR5.0cr Bank Loan
R.R. ORNAMENTS: CARE Reaffirms B+ Rating on INR6.01cr LT Loan
RAMPRASTHA PROMOTERS: ICRA Suspends D Rating on INR137.75cr Loan
RENITE VITRIFIED: ICRA Assigns 'B' Rating to INR29cr Term Loan
ROBOSOFT TECHNOLOGIES: ICRA Suspends 'B' Rating on INR4cr Loan
S.B. ENTERPRISES: Ind-Ra Withdraws 'BB-' Long-Term Issuer Rating
S&P INFRASTRUCTURE: Ind-Ra Withdraws BB+ Long-Term Issuer Rating
SAFE DEVELOPMENT: ICRA Suspends 'D' Rating on INR26.1cr Loan
SAI MAITHILI: Ind-Ra Lowers Rating on INR630MM Bank Loans to BB+
SAMRAT FORGINGS: CRISIL Reaffirms B+ Rating on INR163MM Loan
SHEEL CHAND: Ind-Ra Withdraws 'BB+' Long-Term Issuer Rating
SHIVOM MINERALS: CARE Lowers Rating on INR45cr LT Loan to D
SHREE BADRI: ICRA Suspends 'B' Rating on INR15cr Cash Loan
SONI GINNING: Ind-Ra Withdraws 'B+' Long-Term Issuer Rating
SP ACCURE: CRISIL Assigns 'B' Rating to INR100MM LT Loan
SRAVANTHI ENERGY: ICRA Reaffirms 'D' Rating on INR633.75cr Loan
SRI VENKATESWARA: ICRA Suspends B+ Rating on INR18cr Loan
SS INFRAZONE: Ind-Ra Affirms 'BB+' Long-Term Issuer Rating
STAR EXPORT: CRISIL Assigns 'B' Rating to INR20MM Whse Receipts
SUJANA METAL: CARE Reaffirms 'D' Rating on INR1,701.84cr Loan
SUPERLITE AAC: CRISIL Assigns 'B' Rating to INR80MM LT Loan
V. H. S. MECHATRONICS: CRISIL Rates INR28.2MM Term Loan at 'D'
VASTRAM INDIA: Ind-Ra Withdraws 'BB-' Long-Term Issuer Rating
VASTUM INDIA: Ind-Ra Withdraws 'B-' Long-Term Issuer Rating
VEEAAR FABWARE: Ind-Ra Withdraws 'B+' Long-Term Issuer Rating
VENKATESWARA ENTERPRISES: CRISIL Reaffirms B+ Cash Credit Rating
VIHAAN INFIN: Ind-Ra Withdraws 'B+' Long-Term Issuer Rating
VISHAL COATERS: Ind-Ra Withdraws 'BB' Long-Term Issuer Rating
VISHNU COTTON: CARE Hikes Rating on INR11.55cr LT Loan to BB-
YADU SUGAR: Ind-Ra Withdraws 'B' Long-Term Issuer Rating
ZKL BEARINGS: Ind-Ra Withdraws 'BB+' Long-Term Issuer Rating
M A L A Y S I A
1MALAYSIA DEVELOPMENT: Appoints Parker Randall as New Auditor
N E W Z E A L A N D
SHANTON FASHION: Shuts Up Last 8 Stores in Fielding
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A U S T R A L I A
=================
CASTLE GLAZING: Placed in Administration
----------------------------------------
Tony Lane and Steven Staatz of Vincents Chartered Accountants
were appointed as administrators of Castle Glazing Pty Limited on
Jan. 5, 2017.
CULLEN GROUP: BG Dev. Owes Firm AUD1MM for Townhouse Project
------------------------------------------------------------
Glen Norris at The Courier-Mail reports that Cullen Group
Australia claims it is owed more than AUD1 million by a property
developer, a debt that helped push the Brisbane-Gold Coast
building company over the edge.
Cullen, which collapsed last month owing more than AUD18 million
to subbies, last year built 33 townhouses at Doolandella, west of
Brisbane, for BG Developments Qld, the report says.
The Courier-Mail relates that BG Developments itself went into
liquidation last month owing creditors an estimated AUD4.5
million in the midst of a dispute with Cullen over payments and
work on the project.
According to The Courier-Mail, Cullen claims it is owed AUD1.03
million by BG Developments and lodged caveats on the property,
causing a delay in settlement of the townhouse sales.
The Courier-Mail relates that BG Development liquidator Roland
Robson, of Robson Cotter Insolvency Group, said the townhouse
project had been completed with nine units awaiting settlement.
Mr. Robson said BG Development had to seek additional funds from
a Hong Kong-based company to rectify what it claimed was
negligent work undertaken by builders on the project. The Hong
Kong company now has a secured charge against BG, the report
says.
"It is our understanding that a number of subcontractors have not
been paid for work despite the company having made payment to the
respective builder," Mr. Robson told creditors in a report, The
Courier-Mail relays.
BG Development director Margaret Baldock was unavailable for
comment, the report notes.
Brisbane-based construction company Cullen Group Australia is
under external administration.
DIPLOMA GROUP: Presents Proposed Deed at Creditors' Meeting
-----------------------------------------------------------
Peter Williams at The West Australian reports that the directors
of Diploma Group face an uphill battle to persuade 500-plus
creditors owed more than AUD50 million to back the failed
builder's revival as a listed property developer.
The West Australian relates that administrators of three Di Latte
family-controlled Diploma companies painted a bleak picture at
creditors' meetings on Jan. 5, tipping no "material benefits"
from the known assets of the group.
The report says about 100 subcontractors, suppliers and ex-
employees attended the biggest of the meetings -- for Diploma
Construction (WA) with some angry at being unpaid for up to a
year.
Diploma director Salvatore Di Latte was heckled by some creditors
seated near him, according to accounts of the meeting, while
administrator David Hodgson of Grant Thornton faced hostile
questioning, The West Australian says.
"Understandably, there was a lot of frustration in the room," the
report quotes Mr. Hodgson as saying. "Some of them have been
owed money for a number of months, to be now facing the prospect
of little return."
According to the report, Diploma lawyer Kevin Dundo outlined to
creditors a proposed deed of company arrangement which would see
debt swapped for shares in the Australian Security Exchange-
listed Diploma Group.
"The intention is to use that entity to first of all refocus that
entity on the property arm of the group," Mr. Dundo told another
meeting for subsidiary DGX Construction, the report relays.
"There are some projects that still remain in the group that the
parties, the shareholders, wish to pursue."
The company would no longer operate a construction business, the
report says.
"The overall proposal which we're working towards is to
effectively get a better return or a better outcome to the
unsecureds that would otherwise be available from liquidation,"
The West Australian quotes Mr. Dundo as saying.
The West Australian relates that Mr. Hodgson said clawing back a
"significant" number of preferential payments to creditors since
June could provide some funds if the companies were liquidated.
Mr. Dundo said the proposed deed would allow creditors to avoid
returning preferential payments, adds The West Australian.
About Diploma Group
Diploma Group Limited (ASX:DGX) -- http://www.diploma.com.au/--
is a construction and property development company. The Company
is undertaking a portfolio of commercial, retail and residential
projects. The Company's projects include Capri Coastal
Apartments, Rockingham and QUEST East Perth. The Company's Capri
Coastal Apartments, Rockingham is located within the Rockingham
Beach Waterfront Village Precinct. The Company offers commercial
construction and residential apartments, including multi-level
residential, hotels, hospitality and tourism, commercial offices,
retail, industrial offices, health and aged care, and sports and
recreation. The Company offers a range of construction services,
including design, construction project management, site
management, construction management, construction supervision and
contracting services. Its property development services include
project identification, finance solutions, site acquisition and
sales, marketing and property management services.
Martin Jones and Andrew Smith of Ferrier Hodgson were appointed
as Joint and Several Receivers and Managers to the assets and
undertakings of Diploma Group Limited on December 21, 2016, by
Swiss Re International SE, pursuant to the power contained in the
General Security Agreement dated November 26, 2015.
The Receivers and Managers were also appointed over the following
wholly owned subsidiaries:
* Diploma Construction (WA) Pty Ltd (ACN 113 950 100); and
* DGX Construction Pty Ltd (ACN 147 094 335)
Following the appointment, David Mark Hodgson, Matthew James
Donnelley and Andrew Stewart Reed Hewitt of Grant Thornton were
appointed as Voluntary Administrators to the Companies on
December 22, 2016.
FORGE GROUP: Files for Chapter 15 Bankruptcy Protection
-------------------------------------------------------
Forge Group Power Pty Ltd., which provided turnkey engineering,
procurement and construction power generation solutions to
clients in the resources, oil & gas and infrastructure sectors,
sought bankruptcy protection in the U.S. Bankruptcy Court for the
Northern District of California (Case No. 17-30008) to prevent
creditors from continuing litigation efforts in the United
States.
Mr. Martin Jones, in his capacity as liquidator and foreign
representative of the Debtor, filed the verified petition
pursuant to Chapter 15 of the Bankruptcy Code seeking recognition
in the United States of a voluntary liquidation proceeding
currently pending in Australia. The Debtor has been subject to
an insolvency proceeding in Australia since February 2014.
Headquartered in Terrace, Perth, Western Australia, the Debtor is
a party to one litigation pending in the United States captioned
APR Energy Holdings Ltd v. Forge Group Power Pty Ltd, No. 2016-
46548 (Tex. July 12, 2016) pending in the District Court for the
269th Judicial District in Harris County, Texas.
"Without recognition, there is nothing to prevent APR and other
creditors in the United States from continuing or commencing
enforcement actions against the Debtor's assets," said Leib M.
Lerner, Esq., at Alston & Bird LLP, one of the Liquidator's
counsel. "It would, moreover, be unfair and contrary to the
policies underlying chapter 15 for any creditors to unilaterally
pursue remedies in the United States that advantage them over
similarly-situated creditors in Australia that are complying with
Australia law," he asserted.
Formerly known as CTEC Pty Ltd., the Debtor was acquired by Forge
Group Limited in 2012. FGL, together with 36 of its subsidiaries
(the "Forge Group"), evolved from a small construction business
in the 1990s to a publicly listed, consolidated group in 2007,
which had developed a significant market presence in the
engineering, procurement and construction of mining and oil and
gas projects, and asset management, through several acquisitions
in the seven years prior to the commencement of voluntary
administration proceedings.
According to Mr. Lerner, a combination of several factors
contributed to Forge Group's economic distress and ultimate
insolvency. He added that weakening commodity prices, reduced
demand from China and a peak in supply volumes during the 18 - 24
month period before the Administration Date precipitated an
industry-wide reduction in capital expenditures for the type of
large scale mining and construction projects that were core to
the Forge Group's business.
"The market downturn in the mining industry coincided with the
Forge Group bearing higher than expected costs in connection with
several unfinished construction projects. At the same time, the
Forge Group had relied on raising debt capital to finance several
strategic acquisitions. The increase in Forge Group's
operational cost base, market headwinds in the commodity sector
and its leveraged capital structure strained Forge Group's
balance sheet," Mr. Lerner maintained.
The Forge Group reported revenue of over $1.1 billion and net
profit after tax of approximately $63 million in its 2013 annual
report, Court papers show. In the period to Jan. 31, 2014, the
Forge Group's management accounts recorded a deterioration in its
financial position such that it sustained a net loss after tax of
approximately $326 million.
Unable to gain sufficient traction on proposed restructuring
initiatives to reduce cost and improve liquidity of the business,
on Feb. 11, 2014, each of the companies of the Forge Group in
Australia commenced a voluntary administration proceeding by
appointing Martin Jones, Andrew Saker and Ben Jonson as joint and
several voluntary administrators pursuant to section 436A of the
Corporations Act. The commencement of the Voluntary
Administration resulted in an automatic moratorium on the rights
of creditors of the Forge Group to, among other things, commence
or continue suits against these companies and their respective
properties.
On March 18, 2014, the creditors of each of the Forge Group
companies subject to Voluntary Administration resolved that each
company should be wound up and immediately placed into
liquidation.
By virtue of the Creditors' Resolution, and pursuant to the
Corporations Act, each of the Administrators was appointed as a
joint and several liquidator of the Debtor and the Debtor's
voluntary liquidation proceeding commenced under Australian law.
Currently, Mr. Jones is the sole acting liquidator with respect
to the Debtor.
As of the Administration Date, Australia and New Zealand Banking
Group Limited, QBE Insurance (Australia) Ltd and Assetinsure Pty
Ltd (as agent for Swiss RE International SE) (together, the "Club
Banks"), held the benefit of first-ranking security over
effectively all of the Forge Group's assets and undertakings with
the exception of joint venture shareholdings, securing debt of
approximately $249 million, according to Court papers. The
commencement of the Voluntary Administration triggered an event
of default under the loan documents evidencing the Secured Bank
Loans, giving the Club Banks the right to instruct ANZ Fiduciary
Services Pty Ltd, as security trustee, to appoint a receiver.
Following the commencement of the Voluntary Administration, the
Security Trustee, acting on behalf of the Club Banks, appointed
Mark Mentha and Scott Langdon of KordaMentha as joint and several
receivers and managers of the Debtor and certain other members of
the Forge Group. The Receivers have been empowered to deal with
the assets and affairs of the Debtor since their appointment in
accordance with their powers under Australian law and the Secured
Bank Loans.
The Forge Group had four key divisions: power, construction,
asset management and minerals and resources. It had operations
in Australia, New Zealand, North America, Asia and Africa. As of
the Administration Date, the Forge Group employed over 1,600
people across Australia and over 2,000 individuals worldwide.
FORGE GROUP: Chapter 15 Case Summary
------------------------------------
Chapter 15 Debtor: Forge Group Power Pty Ltd., (in liquidation)
(receivers and managers appointed)
Level 28
108 S. Georges Terrace
Perth WA 6000
Australia
Chapter 15 Case No.: 17-30008
Type of Business: The Debtor is a wholly owned subsidiary of
Forge Group Limited. FGL, together with 36 of
Its subsidiaries, evolved from a small
Construction business in the 1990s to a
publicly listed, consolidated group in 2007,
which had developed a significant market
presence in the engineering, procurement and
construction of mining and oil and gas
projects, and asset management, through several
acquisitions in the seven years prior to the
commencement of voluntary administration
proceedings.
Proceeding
Outside the
United States: With AU$800 million owed to creditors, Forge
Group collapsed into administration in
Australia in February 2014. Martin Jones,
Andrew Saker and Ben Johnson of Ferrier Hodgson
Were appointed as administrators. In March
2014, creditors of Forge Group voted to put the
company into liquidation.
Authorized Representative: Martin Bruce Jones
Chapter 15 Petition Date: January 3, 2017
Court: United States Bankruptcy Court
Northern District of California (San Francisco)
Judge: Hon. Dennis Montali
Ch. 15 Petitioner's
Counsel: Leib Lerner, Esq.
Jeffrey E. Tsai, Esq.
ALSTON & BIRD LLP
333 S Hope St. 16th Fl
Los Angeles, CA 90071
Tel: (213) 576-1000
E-mail: leib.lerner@alston.com
jeff.tsai@alston.com
- and -
Aaron Javian, Esq.
Adam S. Lurie, Esq.
LINKLATERS LLP
1345 Avenue of the Americas
New York, NY 10105
Tel: (212) 424-9000
E-mail: aaron.javian@linklaters.com
adam.lurie@linklaters.com
Estimated Assets: Not Indicated
Estimated Debt: Not Indicated
MAGNATE GREY: First Creditors' Meeting Set for Jan. 16
------------------------------------------------------
A first meeting of the creditors in the proceedings of Magnate
Grey Box International Pty Ltd, trading as MGB International,
will be held at the offices of FTI Consulting, Level 6, 30 The
Esplanade, in Perth, on Jan. 16, 2017, at 9:30 a.m.
Ian Charles Francis and Michael Joseph Patrick Ryan of FTI
Consulting were appointed as administrators of Magnate Grey on
Jan. 4, 2017.
=========
C H I N A
=========
CHINA AOYUAN: Fitch Assigns BB- Rating to Proposed US$ Sr. Notes
----------------------------------------------------------------
Fitch Ratings has assigned China Aoyuan Property Group Limited's
(Aoyuan; BB-/Stable) proposed US dollar senior notes an expected
'BB-(EXP)' rating.
The notes are rated at the same level as Aoyuan's senior
unsecured rating because they constitute direct and senior
unsecured obligations of the company. The final rating is
subject to the receipt of final documentation conforming to
information already received.
KEY RATING DRIVERS
Strong Sales Performance: Aoyuan's 2016 contracted sales
increased 69% yoy to CNY25.6 bil. after it tripled to CNY15.2
bil. in 2015 from 2012 as it continued its fast-churn strategy.
Fitch expects contracted sales to continue to increase in 2017
based on the company's project launch pipeline, although the pace
of growth is likely to be slower than in 2016. In 2016, about
50% of Aoyuan's contracted sales was still in Guangdong province,
but the company is prudently exploring opportunities in other
provinces and overseas.
Stable Financial Profile: What sets Aoyuan apart from its fast-
growing peers is that it has maintained healthy leverage despite
rapid expansion. Its leverage, as measured by net debt to
adjusted inventory, was 29.8% at end-June 2016 and Fitch expects
the ratio to be stable at end-2016. Fitch also estimates its
sales efficiency - measured by contracted sales in the last 12
months to gross debt - will improve to 1.3x by end-2016 from 0.9x
at end-2015. Fitch expects Aoyuan to maintain its fast-churn
model and prudent land acquisition strategy; thus its financial
profile will remain healthy in the next 12-18 months, which will
support its credit profile.
Prudent Acquisition Strategy: Aoyuan has maintained its pace of
land acquisitions, even though its contracted sales have
increased significantly. Fitch expects the company to continue
to explore buying land in the Pearl River Delta, central China
and Yangtze River Delta. It acquired four parcels with total
land cost of CNY5.3 bil. in 1H16 and remained disciplined in land
acquisitions in 2H16. Fitch expects the full-year land premium
would still be less than 40% of contracted sales, which have
increased; this would give the company comfortable headroom for
future land acquisitions.
Adequate Land Bank: Aoyuan had total sellable gross floor area of
about 13 million square metres as of end-June 2016. Around 20%
land bank by value is in lower-tier cities, but the percentage
has continued to decrease and the land bank quality has improved
over the years. Moreover, about half of Aoyuan's land in lower-
tier cities is in smaller cities outside of Guangzhou that are
still targeted at buyers from Guangzhou. Fitch considers the
contracted sales from these sites to be satisfactorily
predictable as they are easily accessible from Guangzhou and the
company has a good execution track record.
Slight Margin Decline: Fitch expects Aoyuan's EBITDA margin to
gradually drop to between 20% and 25% after 2016 from more than
25% previously. This is due to a greater share of higher-margin
products in the past, pressure from higher land costs as well as
an increase in selling, general and administrative expenses as a
result of the larger operational scale.
Healthy Liquidity: Aoyuan's current liquidity position is strong,
which supports its planned expansion. Total cash was CNY10.2
bil. at end-June 2016 against short-term debt of CNY4.1 bil. The
company is also committed to improve its debt structure. Recent
funding initiatives, both onshore and offshore, diversified its
funding channels, improved its debt maturity profile and reduced
funding costs. As of end-1H16, short-term debt accounted for
only 21% of total debt, and the company's weighted average
funding cost was 8.4%. Fitch estimates that by end-2016, Aoyuan
will maintain a strong liquidity position and funding cost will
fall further to 8%.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Pace of land acquisitions to be stable in 2017 and 2018 at
40%-50% of contracted sales
-- Contracted sales are estimated based on sellable resources
in the next 12-18 months. Contracted sales to continue to
grow although at a slower pace than in 2016
-- The company's average selling price for its contracted
sales will be slightly higher in 2017 due to a larger share
of high-margin products
-- Company to maintain its fast-churn and high cash-flow
turnover business model
RATING SENSITIVITIES
Negative: Future developments that may, individually or
collectively, lead to negative rating action include:
-- EBITDA margin sustained below 20% (1H16: 23.4%)
-- Net debt/adjusted inventory sustained above 40% (end-June
2016: 29.8%)
-- Contracted sales to gross debt sustained below 1.2x (end-
June 2016: 1.0x)
-- Sustained decrease of total sellable GFA in the land bank
to below 3.5x of annual contracted sales GFA (12 months to
end-June 2016: 5.6x)
Positive: No positive rating action is expected unless Aoyuan is
able to substantially increase its scale, and establish core
markets in multi-regions without compromising its financial
metrics. This is not expected over the next 12-18 months.
KWG PROPERTY: Fitch Publishes 'BB-' Issuer Default Rating
---------------------------------------------------------
This is a correction of a release issued on Dec. 29, 2016. It
clarifies that the rating action for the senior unsecured rating
is "published" rather than "assigned".
Fitch Ratings has published KWG Property Holding Limited's (KWG)
Long-Term Issuer Default Rating (IDR) of 'BB-' with Stable
Outlook. Fitch has also published KWG's foreign-currency senior
unsecured rating of 'BB-'.
Fitch has also assigned KWG's proposed US dollar senior notes a
'BB-(EXP)' expected rating.
The notes are rated at the same level as KWG's senior unsecured
rating because they constitute its direct and senior unsecured
obligations. The final rating is subject to the receipt of final
documentation conforming to information already received.
China-based KWG's ratings are supported by its established
homebuilding operations in Guangzhou, strong brand recognition in
higher-tier cities across China, consistently high margin, strong
liquidity and healthy maturity profile. KWG's ratings are
constrained by the small scale of its development and investment
property business, as well as the higher leverage after its land
purchases in 2016.
KEY RATING DRIVERS
Established in Guangzhou; Diverse Coverage: KWG's land bank is
diversified across the Pearl River Delta, Yangtze River Delta,
Bohai Rim and southern China. The company ranked among the top
10 homebuilders by sales in 2015 in Guangzhou, the capital of
China's southern Guangdong province. KWG had 10.4 million square
metres (sq m) of good-quality land at end-June 2016 that was
spread across 11 cities in China. The land bank had average land
cost of CNY3,470/sq m and is sufficient for 4-5 years of
development.
Sites in Tier-1 cities made up 53% of the land bank by area, or
58% by value; while sites in Tier-1 cities and upper Tier-2
cities made up 70% of the land bank by or 73% by value. KWG has
a prudent approach when entering new cities - it conducts due
diligence for around three years before entering, usually with
one or two projects in partnership with reputable local
developers.
Strong Brand Name: KWG has established strong brand recognition
in its core cities by focusing on first-time buyers and
upgraders, and appeals to these segments by engaging
international architects and designers, and setting high building
standards. KWG's high-quality products enable it to attract
affluent purchasers, and command higher pricing than some nearby
projects by reputable developers. The company's sell-through
rate has been high at 60%-68% since 2012.
Diverse Property Products: KWG develops both residential and
commercial properties to meet demand from the market and respond
to changes in the property sector. Commercial properties
accounted for about 32% of its pre-sales in 1H16, with about one
third of the sales from office and retail units, and the
remainder from serviced apartments.
High Margin Through Cycles: KWG's EBITDA margin has remained at
30%-35% through different business cycles and is one of the
highest among Chinese homebuilders. The company has made
protecting the margin one of its key business objectives. To
this end, KWG strives to maintain higher-than-average selling
prices through its consistent, high-quality products. Its
experienced project teams also ensure strong execution capability
and strict cost controls. KWG's selling, general and
administrative expenses cost is lower than peers' at 6% of
revenue.
Moreover, KWG has low unit land cost of 20%-25% of its average
selling price due to its strong foothold in Guangzhou, where land
prices have not increased as much as in other Tier-1 cities over
the years. However, KWG's EBITDA margin may decline from the
high 30% range to lower 30% from 2H17 if growth in selling prices
lags the land price surge in 2016 in KWG's core cities.
Land Costs Drive Up Leverage: Fitch expects KWG's proportionate
consolidated leverage, measured by net debt-to-adjusted
inventory, to increase to 43% by the end of 2016 (2015: 35%,
1H16: 29%). The increase will be driven by the high land
premiums, with around CNY10bn scheduled to be paid in 2H16. The
attributable cost of land purchased in 2016 is 54% of its 2016
presales target of
CNY22 bil.
KWG acquired 14 land parcels in 2016 with attributable gross
floor area (GFA) of 2.32 million sq m and land premium of CNY18.4
bil. Some of the parcels were in Shanghai, Hangzhou and Tianjin,
where land costs have surged, resulting an increase in land cost
to CNY4,030/sq m, compared with CNY3,819/sq m in 2015 and
CNY3,300/sq m in 2014.
Leverage Reasonable, To Improve: The rise in KWG's leverage is
mitigated by the good quality of the recent land purchases and
that the acquisitions maintain its land bank at 4-5 years of
development activity. Fitch expects leverage to gradually trend
down to 40% in 2017-2019, as KWG's presales grow and land
acquisition in higher-tier cities slows down.
JVs with Leading Industry Peers: As a result of KWG's prudent
expansion strategy, it has a long record of partnership with
leading industry peers, including Sun Hung Kai, Hongkong Land,
Shimao Property, China Vanke, China Resources Land and Guangzhou
R&F. These partnerships helped KWG achieve lower financing
costs, reduce competition in land bidding, and improve
operational efficiency. JV presales made up 48% and 45% of KWG's
total attributable presales in 2015 and 1H16, respectively. JV
cash flows are well-managed, and investments in new JV
investments are mainly funded by excess cash from mature JVs.
Leverage is also lower at the JV level because land premiums are
usually funded at the holding company level, and KWG pays
construction costs only after cash is collected from presales.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Contracted sales GFA to grow at 0% in 2016, 5% in 2017 and
8% in 2018
-- Average selling price to increase 10% a year in 2016 and
2017, and 1% a year from 2018
-- EBITDA margin (excluding capitalised interest) to slowly
trend down from 35% to 32% for 2016-2019
-- Land replenishment rate at 0.8x contracted sales GFA
(attributable), assuming KWG maintains land bank at about 5
years of development activity
-- Land acquisition cost (attributable) budget at 60% of
contracted sales in 2016, 40%-45% from 2017
-- Leverage to improve, but remain at about 40%-45% for 2016-
2019
RATING SENSITIVITIES
Future developments that may individually or collectively, lead
to positive rating action include:
-- EBITDA margin sustained above 30%;
-- Net debt/adjusted inventory sustained below 35%;
-- Attributable contracted sales sustained above CNY30 bil.
(2015: CNY20 bil.)
Negative: Future developments that may individually or
collectively, lead to negative rating action include:
-- EBITDA margin sustained below 25%;
-- Net debt/adjusted inventory sustained above 45%
LIQUIDITY
Diversified Funding Sources: KWG has well-established diversified
funding channels, and has strong relationships with most foreign,
Hong Kong and Chinese banks. KWG has strong access to both
domestic and offshore bond markets, and was among the first few
companies to issue panda bonds. KWG's funding cost fell to 6.8%
in 1H16 from 7.4% in 2015 following a series of refinancing
activities.
Sufficient Liquidity: At end-June 2016, KWG had available cash of
CNY20.5 bil. and unutilized credit facilities (uncommitted) of
CNY16bn, which were enough to cover the repayment of its short-
term borrowing (CNY5.5 bil.) and outstanding land premium. The
company repaid most of its US dollar debt financing when the
opportunity arose. Fitch expects the group to maintain
sufficient liquidity to fund development costs, land premium
payments and debt obligations during 2016-2018 due to its
diversified funding channels, healthy maturity profile and
flexible land acquisition strategy.
LOGAN PROPERTY: Fitch Assigns 'BB-' Rating to USD200MM Sr. Notes
----------------------------------------------------------------
Fitch Ratings has assigned Logan Property Holdings Company
Limited's (BB-/Stable) USD200 mil. 5.75% senior notes due in 2022
a final rating of 'BB-'.
The notes are rated at the same level as Logan's senior unsecured
rating because they constitute its direct and senior unsecured
obligations. The assignment of the final rating follows the
receipt of documents conforming to information already received.
The final rating is in line with the expected rating assigned on
Dec. 22, 2016.
The China homebuilder's ratings are supported by strong
contracted sales growth, improving financial metrics, lower
leverage, and stable profitability with Fitch calculated EBITDA
margin of 28.6% at 1H16. Its current scale of more than CNY20
bil. in contracted sales and geographic concentration in
Guangdong province constrain its ratings.
KEY RATING DRIVERS
Re-Focus on Shenzhen: The Shenzhen region in China's southern
Guangdong province accounted for over 40% of Logan's 2015
contracted sales, and more than 70% of its land investment was in
this area. Fitch believes that Logan's addition of land in
Shenzhen enhances its land bank quality, reduces sales risk and
improves its overall operational flexibility, although margins
remain uncertain because of the high costs for the land and
potential for government policy changes, such as the imposition
of home purchasing curbs. Fitch expects the Shenzhen region to
continue to be Logan's main focus. The company's land bank was
previously mainly in Shantou in Guangdong, and Nanning and
Fangchenggang in Guangxi province, which are all Tier-2 or Tier-3
cities.
Strong 2015 Performance: Logan's contracted sales rose 54% to
CNY20.5 bil. in 2015, above its revised sales target of CNY18
bil. The company expects contracted sales to continue increasing
in 2016. Logan had contracted sales of CNY26.9 bil. in January-
November 2016, which was 51% higher than in the same period in
2015. Its leverage, measured by net debt/adjusted inventory,
increased to 41% at end-June 2016 from 32% at end-2015 due to
increased land bank acquisitions in 2016. The high sales
turnover also helped Logan to maintain a healthy financial
profile.
Stable Margin and Strong Liquidity: Logan's Fitch calculated
EBITDA margin rose slightly to 28.6% in 1H16 from 27.4% in 2015
and 26.2% in 2014. Fitch expects the margin to remain stable at
above 25% in 2016. The company's strong cash position with
readily available cash of CNY10.1 bil. at end-June 2016 is enough
to cover its short-term debt of CNY5.6 bil. Fitch believes
Logan's liquidity will remain healthy in the next 12-18 months,
underpinned by its strong contracted sales and high cash
collection rate.
Limited Geographical Diversification: More than 80% of Logan's
contracted sales in 2015 were from Guangdong province, with the
remaining mainly from Guangxi province. Furthermore, more than
50% of the Guangdong contracted sales were from the Shenzhen
region. The company's geographic concentration is likely to
continue in 2016, based on its existing land bank and expansion
strategy. This concentration leaves Logan more vulnerable to
economic volatility and policy changes in these regions compared
with developers that are more geographically diversified across
China.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Contracted sales continue to grow in 2016 but at a slower
pace compared with 2015
-- Land acquisitions increase in line with sales growth in
2016
-- Higher average selling prices and unit land costs as the
company becomes more focused in the Shenzhen region
RATING SENSITIVITIES
Negative: Future developments that may, individually or
collectively, lead to negative rating action include:
-- Fitch calculated EBITDA margin sustained below 25%
(2015:27%)
-- Net debt/adjusted inventory sustained above 40% (2015: 32%)
-- Contracted sales / total debt sustained below 1.0x (2015:
1.0x)
Positive: No positive rating action is expected unless Logan is
able to substantially increase its scale and diversify outside
Guangdong province without compromising its financial metrics.
This is not expected over the next 12-18 months.
YINGDE GASES: Fitch Affirms B+ IDR & Removes from Watch Negative
----------------------------------------------------------------
Fitch Ratings has affirmed Yingde Gases Group Company Limited's
Long-Term Foreign-Currency Issuer Default Rating at 'B+' and
removed it from Rating Watch Negative (RWN), on which it was
placed on Dec. 15, 2016. The Outlook is Negative.
The rating actions follow the company's refinancing of its
HKD820 mil. offshore loan due on Jan. 3, 2017, with a new one-
year loan. Fitch do not foresee similar refinancing risk for
both its onshore and offshore loans in the next 6-12 months.
The Negative Outlook reflects Fitch's view that the ongoing
shareholder dispute may have adverse impact on the company's
business and financial profile.
KEY RATING DRIVERS
Offshore Loan Repaid: On Jan. 2, 2017, Yingde announced the
repayment of the HKD820 mil. loan with a new offshore bank loan
secured by onshore deposits. The refinancing resolves
uncertainties about whether the company would have been able to
repay the loan. Fitch placed Yingde on RWN after a delay in a
proposed equity placement that would have raised net proceeds of
HKD1.2 bil., most of which would have been used to repay the loan
due Jan. 3, 2017.
Near-term Liquidity Sufficient: Fitch estimates Yingde's total
available cash and unused bank credit facilities at end-2016 are
enough to meet its short-term debt requirements. Although most
of Yingde's liquidity is onshore, we believe offshore loans due
in 2017 can be refinanced by pledging onshore deposits, as was
done with the HKD820 mil. loan.
Shareholder Dispute Continues: Two of the company's former
executive directors are using various legal means to block the
company's plans to place shares with a new investor. Fitch
believes the dispute, if prolonged, has the potential to divert
management's attention from managing the company's core
operations and weaken its access to debt and equity financing.
KEY ASSUMPTIONS
Fitch's key assumptions within the rating case for Yingde
include:
-- No further deterioration in working capital
-- No significant deviation from current business trajectory
RATING SENSITIVITIES
Positive: Future developments that may, individually or
collectively, lead to the Outlook returning to Stable:
-- Resolution of the ongoing shareholder dispute, without any
material deterioration on the company's business and
financial profiles
Negative: Developments that may, individually or collectively,
lead to negative rating action include:
-- Material deterioration on the company's business and
financial profiles, including worsening liquidity position;
higher leverage (FFO-adjusted net leverage sustained above
5.5x), significant decline in revenue and operating EBITDA
margin, and sustained high delinquency rate on trade
receivables
FULL LIST OF RATING ACTIONS
Yingde
Long-Term Foreign-Currency IDR affirmed at 'B+'; Outlook
Negative
Senior unsecured rating affirmed at 'B+', with Recovery Rating
of 'RR4'
Yingde Gases Investment Limited
USD425 mil. 8.125% senior notes due 2018 affirmed at 'B+', with
Recovery Rating of 'RR4'
USD250 mil. 7.25% senior notes due 2020 affirmed at 'B+', with
Recovery Rating of 'RR4'
Yingde Gases Investment Limited is wholly owned by Yingde
================
H O N G K O N G
================
SKYPEOPLE FRUIT: Request to Remain Listed on Nasdaq Granted
-----------------------------------------------------------
SkyPeople Fruit Juice, Inc., a producer of fruit juice
concentrates, fruit juice beverages and other fruit-related
products, on Jan. 3, 2016, disclosed that the Nasdaq Hearings
Panel (the "Panel") has granted SkyPeople's request to remain
listed on The Nasdaq Stock Market subject to certain conditions.
These conditions are that on or before Jan. 30, 2017, the Company
shall inform the Panel that it is current in its periodic filings
with the Securities and Exchange Commission (the "SEC"). Further,
the Company must be able to demonstrate compliance with all
requirements for continued listing on The Nasdaq Stock Market. In
the event the Company is unable to do so, its securities may be
delisted from The Nasdaq Stock Market. The Company is also
required during the current exception period up until January 30,
2017 to provide prompt notification of any significant event
which includes, but is not limited to, any event that may call
into question the Company's historical financial information or
that may impact the Company's ability to maintain compliance with
any Nasdaq listing requirement or exception deadline.
On December 15, 2016, the Company had a hearing before the Panel
to appeal the delisting determination from the Staff of the
Listing Qualifications Department of Nasdaq (the "Nasdaq Staff").
The hearing was a result of delisting determination letters from
Nasdaq Staff notifying the Company that it had not filed its
Annual Report on Form 10-K for the fiscal year ended December 31,
2015 and its Quarterly Reports on Form 10-Q for the quarters
ended March 31, 2016, June 30, 2016 and September 30, 2016, and
so its securities were subject to delisting.
The Company has now filed both its Annual Report on Form 10-K for
the fiscal year ended December 31, 2015 and its Quarterly Report
on Form 10-Q for the quarter ended March 31, 2016 with the SEC.
The Company believes that it will be able to file its Quarterly
Reports on Form 10-Q for the quarters ended June 30, 2016 and
September 30, 2016, respectively, by January 30, 2017, the date
by which the Panel has indicated that the Company must be current
in its periodic filings with the SEC.
"We are pleased with the decision of the hearing panel and are
confident that we will be able to file our quarterly reports with
the SEC by the time indicated by the Panel," said Mr. Hongke Xue,
Chief Executive Officer of SkyPeople. "We remain focused on our
operations and strategic growth plans and are appreciative of the
support that our shareholders have shown us as we become current
with our filings."
About SkyPeople Fruit Juice, Inc.
SkyPeople Fruit Juice, Inc. (NASDAQ: SPU) --
http://www.skypeoplefruitjuice.com/-- a Florida company, through
its wholly-owned subsidiary Pacific Industry Holding Group Co.,
Ltd. ("Pacific"), a Vanuatu company, and SkyPeople Juice
International Holding (HK) Ltd., a company organized under the
laws of Hong Kong Special Administrative Region of the People's
Republic of China and a wholly owned subsidiary of Pacific, holds
73.42% ownership interest in SkyPeople Juice Group Co., Ltd.
("SkyPeople (China)") and 100% ownership interest in SkyPeople
Foods (China) Co., Ltd. ("SkyPeople Foods China"). SkyPeople
(China) and ("SkyPeople Foods China"), together with their
operating subsidiaries in China, are engaged in the production
and sales of fruit juice concentrates, fruit beverages, and other
fruit related products in the PRC and overseas markets. The
Company's fruit juice concentrates are sold to domestic customers
and exported directly or via distributors. Fruit juice
concentrates are used as a basic ingredient component in the food
industry. Its brands, "Hedetang" and "SkyPeople," which are
registered trademarks in the PRC, are positioned as high quality,
healthy and nutritious end-use juice beverages.
=========
I N D I A
=========
ACTION ISPAT: ICRA Suspends 'D' Rating on INR836.54cr Term Loans
----------------------------------------------------------------
ICRA has suspended the long-term rating of [ICRA]D assigned
earlier to the INR963.08 crore, long term loans & working capital
facilities & short-term rating of [ICRA]D assigned earlier to the
INR15.00 crore, short-term, non-fund based (letter of credit and
bank guarantee) facilities of Action Ispat & Power (P) Limited
(AIPPL). The suspension follows ICRA's inability to carry out a
rating surveillance in the absence of the requisite information
from the company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 836.54 [ICRA]D Rating suspended
Fund Based Working
Capital 126.54 [ICRA]D Rating suspended
Non Fund Based Limits 15.00 [ICRA]D Rating 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. ICRA will
withdraw the rating in case it remains under suspension for a
period of three years.
Action Ispat & Power (P) Limited (AIPPL), incorporated in July
2004, is a closely-held company engaged in manufacturing of
Sponge Iron and Steel Billets. AIPPL is a part of the Action
Group promoted by Mr. Nand Kishore Aggarwal that commenced its
business operations in 1971 as a manufacturer and supplier of
footwear and its components. Currently, the group has presence in
various diversified areas including Chemicals and Plastics,
Computer Monitors and Peripherals, Power Back Up/ Inverters,
Batteries, Housing Projects, Health Care and Steel.
With its manufacturing facilities located in District Jharsugada
(Orissa), AIPPL manufactures sponge iron, steel billets and Ferro
Alloys. AIPPL also has 123MW power generation capacity. The
company commenced operations in August 2006 with its sponge iron
plant getting operational. The entire sponge iron production of
the company is used for captive consumption for manufacturing
billets. AIPPL's corporate debt restructuring package got
approved in June 2013.
AL AZIZ: ICRA Suspends 'D' Rating on INR7.50cr Loan
---------------------------------------------------
ICRA suspends the [ICRA]D rating assigned to the INR7.50 crore
(sublimit) long term fund based facilities, INR17.00 crore short
term fund based facilities & INR7.50 crore (sublimit) short term
non-fund based facilities of Al Aziz & Company. The suspension
follows ICRA's inability to carry out a rating surveillance in
the absence of the requisite information from the firm.
ANJANI COTTON: ICRA Suspends B+ Rating on INR19.75cr LT Loan
------------------------------------------------------------
ICRA has suspended the [ICRA]B+ rating assigned to the INR19.75
crore long term limits of Anjani Cotton Industries. The
suspension follows ICRAs inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
Anjani Cotton Industries is engaged in cotton ginning and
pressing operations. The current partnership was formed in 2008
after the business was acquired from the retiring partners, who
established the firm in 2000. The business is managed by Mr.
Rajesh Ghodasara and Mr. Vipul Ghodasara. The firm's
manufacturing facility is located at Wakaner, District- Rajkot.
The firm has 60 ginning machines and 1 pressing machine with a
production capacity of 600 bales per day.
ARSHIA GLOBAL: Ind-Ra Withdraws 'BB-' Long-Term Issuer Rating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Arshia Global
Tradecom 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.
AGTPL's ratings:
-- Long-Term Issuer Rating: 'IND BB-'; Outlook Stable; rating
withdrawn
-- INR40.00 million fund-based limit: 'IND BB-'; Outlook
Stable; rating withdrawn
-- INR10.00 million non-fund-based limit: 'IND A4+'; Outlook
Stable; rating withdrawn
BALAJEE PLY-PRODUCT: CRISIL Rates INR30MM Cash Loan at B-
---------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to
the long-term bank facilities of Balajee Ply-Product Private
Limited (BPPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Term Loan 20 CRISIL B-/Stable
Bank Guarantee 20 CRISIL A4
Cash Credit 30 CRISIL B-/Stable
The rating reflects BPPL's below average financial risk profile
marked by high gearing, the susceptibility of its scale of
operations and profitability with presence in highly fragmented
and competitive environment. These rating weaknesses are
partially offset by the extensive experience of the company's
promoters, leading to established relationships with customers
and suppliers.
Outlook: Stable
CRISIL believes that BPPL will continue to benefit over the
medium term from its promoters' extensive industry experience and
its established customer relationships. The outlook may be
revised to 'Positive' if the company generates significant
increase in its cash accruals, leading to an improvement in its
debt protection metrics. Conversely, the outlook may be revised
to 'Negative' in case of a significant deterioration in its
working capital management, or any large debt-funded capital
expenditure, weakening its financial risk profile.
Incorporated in 1997, Balajee Ply-Products Private Limited (BPPL)
based in Jaipur, Rajasthan. The company is engaged in
manufacturing of plywood and block boards and the timber trading
activity, with the former contributing the majority of the
turnover.
For 2015-16 (refers to financial year, April 1 to March 31), MBEL
reported a profit after tax (PAT) of INR0.2 million on sales of
INR57.4 million, as against a PAT of INR0.2 million on sales of
INR59.9 million for 2014-15.
BALAJI INDUSTRIES: CRISIL Assigns B+ Rating to INR49MM Cash Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank
facilities of Balaji Industries - Chhindwara (BI). The ratings
reflect the small scale of operations in the intensely
competitive agro commodity industry and below average financial
risk profile marked by low networth. These rating weaknessess are
partially offset by the extensive experience of the promoters.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 49 CRISIL B+/Stable
Long Term Loan 16 CRISIL B+/Stable
Outlook: Stable
CRISIL believes BI will continue to benefit over the medium term
from its promoters' extensive industry experience. The outlook
may be revised to 'Positive' if significantly high revenue and
profitability leads to healthy cash accrual and a stronger
financial risk profile. Conversely, the outlook may be revised to
'Negative' if BI's working capital management worsens, or it
undertakes any large debt-funded capex programme, or its
profitability declines, resulting in deterioration in financial
risk profile.
Set up in 2002, BI is a proprietorship firm that trades in maize,
wheat and a variety of pulses in India. Operations are managed by
the Mr Uttam Shah.
BALMUKUND CONCAST: Ind-Ra Withdraws 'BB' Long-Term Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Balmukund
Concast Ltd's '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 Balmukund.
Balmukund's ratings:
-- Long-Term Issuer Rating: 'IND BB'; Outlook Stable; rating
withdrawn
-- INR180 million fund-based limits: 'IND BB'; rating
withdrawn
-- INR45 million non-fund-based limits: 'IND A4+'; rating
withdrawn
BANSAL REALTECH: Ind-Ra Withdraws 'BB' Long-Term Issuer Rating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Bansal Realtech
Limited'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.
The company's ratings are:
-- Long-Term Issuer Rating: 'IND BB'; Outlook Stable; rating
withdrawn
-- INR35 million fund-based facilities: 'IND BB'; Outlook
Stable and 'INDA4+'; rating withdrawn
-- INR210 million non-fund-based facilities: 'IND A4+'; rating
withdrawn
-- INR2 million forward contract facilities: 'IND A4+'; rating
withdrawn
BHARAT ISPAT: Ind-Ra Withdraws 'BB+' Long-Term Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Bharat Ispat
Udyog's (BIU) '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 BIU.
BIU's ratings:
-- Long-Term Issuer Rating: 'IND BB+'; Outlook Stable; rating
withdrawn
-- INR100 million fund-based working capital limits:
'IND BB+'; Outlook Stable and 'IND A4+'; ratings withdrawn
BHASIN INDUSTRIES: Ind-Ra Withdraws 'BB' Long-Term Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Bhasin
Industries Pvt. Ltd.'s '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 the company.
The company's ratings are:
-- Long-Term Issuer Rating: 'IND BB'; Outlook Stable; rating
withdrawn
-- INR40 million fund-based working capital limit: 'IND BB';
Outlook Stable; rating withdrawn
-- INR41.5 million term loan: 'IND BB'; Outlook Stable; rating
withdrawn
BHATIA COAL: Ind-Ra Withdraws 'B+' Long-Term Issuer Rating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Bhatia Coal
Tradelink's (BCTL) 'IND B+' 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 BCTL.
BCTL's ratings:
-- Long-Term Issuer Rating: 'IND B+' Outlook Stable; rating
withdrawn
-- INR35 million fund-based working capital limit: 'IND B+';
Outlook Stable; rating withdrawn
-- INR47.5 million term loan: 'IND B+' Outlook Stable; rating
withdrawn
BHATIA GLOBAL: ICRA Suspends 'D' Rating on INR864cr Bank Loan
-------------------------------------------------------------
ICRA has suspended the [ICRA]D rating assigned to the INR864.00
crore bank facilities of Bhatia Global Trading Limited (BGTL).
The suspension follows ICRA's inability to carry out a rating
surveillance due to continued non cooperation from the Company.
BGTL is promoted by Bhatia Group of Indore, and is engaged in
business of coal trading, whereby coal is imported from coal
fields in Indonesia and sold to domestic companies. BGTL was
initially incorporated as Bhatia Coal Trading and Consignment
Private Limited (BCCL) and didn't undertake any significant
operations till FY2010. Subsequently, as a part of the Bhatia
Group's restructuring plans, BCCL's name was changed to BGTL and
it was vested with Stock & Sale coal trading business of
erstwhile flagship company of Bhatia Group i.e. Bhatia
International Limited, which has been renamed as Asian Natural
Resources (India) Limited (ANRIL). The effective date of transfer
of Stock & Sale business to BGTL was October 2009; however,
actual transfer happened in February 2011 after appraisal and
approval of bankers. During the interim period, ANRIL undertook
business on behalf of BGTL and transferred to it profit of about
INR61 crore earned from this business division during the period
October 2009 to February 2011.
In FY2015, BGTL reported an Operating Income (OI) of INR1332.7
crore and net loss of INR285.4 crore against an OI of INR2211.7
crore and Profit after Tax (PAT) of INR24.5 crore reported in
FY2014.
CADCHEM LABORATORIES: CRISIL Assigns B+ Rating to INR72.5MM Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank
facilities of Cadchem Laboratories Ltd (CLL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Non-Fund Based Limit 32.5 CRISIL B+/Stable
Cash Credit 72.5 CRISIL B+/Stable
Long Term Loan 43.0 CRISIL B+/Stable
The ratings reflect the company's large working capital
requirement owing to high receivable and inventory days leading
to pressure on liquidity, and product concentration in its
revenue. The rating further factor the moderate financial risk
profile owing to weak capital structure and debt protection
metrics. These weaknesses are partially offset by its promoters'
extensive experience in the bulk drugs industry, its established
clientele.
Outlook: Stable
CRISIL believes CLL will continue to benefit from its promoters'
extensive industry experience. The outlook may be revised to
'Positive' if there is a substantial and sustained increase in
profitability and continued healthy revenue growth, or if working
capital management improves. The outlook may be revised to
'Negative' if revenue or profitability declines steeply, or if
capital structure weakens significantly on account of large
working capital requirement or debt-funded capital expenditure.
CLL was incorporated in 1985 as Chandigarh Drugs Pvt Ltd and
commenced commercial production in 1988. The company got its
present name in 1995. It is managed by Mr Navneet Gupta. It
manufactures active pharmaceutical ingredients (APIs) at its
manufacturing facility in Chandigarh, and supplies APIs for
formulations for pain killers and blood thinning agents to
pharmaceuticals manufacturers.
CHITIZ DAIRY: CRISIL Assigns 'B' Rating to INR75MM LT Loan
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank loan facilities of Chitiz Dairy & Agro Foods Private limited
(CDAFPL). The rating reflects exposure to project implementation-
related risks and to timely stabilisation and commensurate ramp-
up in sales during the initial phase of operations.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 5 CRISIL B/Stable
Long Term Loan 75 CRISIL B/Stable
The rating also factors in an expected average financial risk
profile due to ongoing debt-funded capital expenditure. These
weaknesses are mitigated by the extensive experience of the
promoters coupled with their funding support.
Outlook: Stable
CRISIL believes CDAFPL, will continue to benefit from the
extensive experience of its promoters. The outlook may be revised
to 'Positive' if timely implementation and stabilisation of the
project leads to anticipated revenue, profitability, and cash
accrual during the initial phase of operations. The outlook may
be revised to 'Negative' if delay in the implementation or
stabilisation of the project leads to low revenue and cash
accrual, or a stretch in the working capital cycle weakens the
financial risk profile, especially liquidity.
Incorporated in 2015, CDAFPL is establishing a dairy project for
processing of milk and manufacture of milk products. The unit is
being set up in the Bankura district of West Bengal and
commercial operations are expected to commence in fiscal 2018.
DYNAMIC(CG) EQUIPMENTS: CARE Cuts Rating on INR49cr LT Loan to D
----------------------------------------------------------------
CARE revises the rating assigned to the bank facilities of
Dynamic(CG) Equipments Pvt. Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 49.00 CARE D Revised from
CARE BB-
Rating Rationale
The revision in the rating of the bank facilities of Dynamic CG
Equipments Pvt. Ltd (DEPL) takes into account the on-going
delays in servicing of debt servicing on account of stressed
liquidity position of the company and deterioration in financial
performance of the company in FY16 (refers to the period April 1
to March 31). The ability of the company to improve its
liquidity and regularize its debt servicing will be the key
rating sensitivity.
Dynamic (CG) Equipments Pvt. Ltd. (DEPL; erstwhile Dynamic JCB
Earthmovers Private limited), incorporated in 2008, is
promoted by Mr. Ashwani Mahendru (Managing Director). DEPL is an
authorised dealer and service centre operator for JCB India
Limited (JCBI) in commercial vehicles and earth moving equipment
since 2008 in Chhattisgarh. The contract of JCB is renewable
every three years and was last renewed in September, 2013.
Further, the company is also in the business of leasing and
providing after sales service and deals in accessories & spare
parts of Earth moving Equipments. The company is also the
authorized distributor for Castrol Brand of Industrial Engine
oil, Gear oil, Hydraulic oil and other industrial oils which it
is selling to its customers. Over the years the company has built
a network in 27 branches and Any Time Parts (ATP)'s in
Chhattisgarh which provides spares and accessories of JCB.
Presently DEPL has four showrooms cum service centres at Raipur,
Siltara and Bilaspur and Raigarh.
DEPL reported negative PAT of INR2.53 crore on a total operating
income of INR158.81 crore in FY16 vis-Ö-vis PAT of INR1.00
crore on a total operating income of INR218.65 crore, in FY15.
ENCON IMPEX: ICRA Suspends B+ Rating on INR8.50cr LT Loan
---------------------------------------------------------
ICRA suspends the [ICRA]B+ rating, assigned to the INR8.50 crore
long term fund based facilities and [ICRAA4 rating assigned to
the INR0.50 crore short term non-fund based facilities of Encon
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.
ETCO DENIM: CARE Lowers Rating on INR246.45cr LT Loan to D
----------------------------------------------------------
CARE revises ratings assigned to bank facilities of Etco Denim
Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term/Short-term 112.99 CARE D/CARE D (Revised
Bank Facilities from CARE C/CARE A4
Long-term Bank Facilities 246.45 CARE D (Revised from
CARE C)
Short-term Bank Facilities 29.00 CARE D (Revised from
CARE C)
Rating Rationale
The revision in the ratings of Etco Denim Private Limited takes
in to account the ongoing delays in debt servicing
owing to strained liquidity position.
EDPL was established in the year 2005 by Mr Ramesh D Shah who is
the promoter of the company. The company is in the business of
spinning, yarn dyeing, denim fabric weaving and finishing. During
May 2013, EDPL made a capex for backward integration and
commissioned a plant for manufacturing denim from cotton bales.
The plant is located at Aliabad Industrial Area, Bijapur
District, Karnataka. The plant has a capacity of manufacturing
38.90 Mn Metres of Denim per year.
The company faced considerable strain on liquidity mainly due to
delay in completion of project and commencement of loan
repayments before ramp up of commercial operations. Due to delay
in repayment, the company entered into restructuring with the
bankers.
For FY16 (refers to the period April 1 to March 31), EDPL
reported a net loss of INR12.06 crore on total income of
INR304.83 crore as against net loss of INR25.79 crore on total
income of INR188.26 crore in FY15.
ETCO INDUSTRIES: CARE Reaffirms 'D' Rating on INR140.56cr LT Loan
-----------------------------------------------------------------
CARE reaffirms ratings assigned to bank facilities of Etco
Industries Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 140.56 CARE D Reaffirmed
Short-term Bank Facilities 12.00 CARE D Reaffirmed
Rating Rationale
The reaffirmation in the ratings of Etco Industries Private
Limited (EIPL) takes in to account the ongoing delays in debt
servicing owing to strained liquidity position.
EIPL is engaged in the business of manufacturing cotton yarn. In
2004, EIPL (formerly known as ETCO Spinners Pvt. Ltd.) took over
cotton spinning unit situated at MIDC area Parbhani, Maharashtra,
from the liquidators of Sahakari Soot Girni Ltd at a cost of
INR4.30 crore. EIPL replaced the old equipment and modernised the
set up by importing state of the art Plant and Machinery from
Germany, Italy and China at a cost of INR40 crore (46% funded by
the promoters). The unit commenced its operations from January 1,
2007. Currently, EIPL's installed capacity stands at 41,328
spindles. Sales in the domestic markets continue to be the
primary revenue driver at EIPL.
For FY16 (refers to the period April 1 to March 31) EIPL reported
a net loss of INR6.96 crore on total income of INR142.80
crore as against net loss of INR9.26 crore on total income of
INR100.05 crore in FY15.
GAGAN TREXPO: CRISIL Assigns 'B' Rating to INR50MM Cash Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to
the bank facilities of Gagan Trexpo Private Limited (GTPL). The
ratings reflect GTPL's early stage of operations, large working
capital requirement, and below-average financial risk profile.
These weaknesses are partially offset by the promoters' moderate
risk management policies.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL B/Stable
Letter of Credit 150 CRISIL A4
Outlook: Stable
CRISIL believes GTPL will continue to benefit from the promoter's
risk mitigating policies. The outlook may be revised to
'Positive' if ramp-up in scale of operations and operating
margin, and significant improvement in working capital management
strengthen cash accrual. Conversely, the outlook may be revised
to 'Negative' if financial risk profile deteriorates on account
of low profitability, revenue and, therefore, cash accrual, or
stretch in working capital cycle.
GTPL (formerly, Riya Technology Pvt Ltd), based in Delhi, began
operations in June 2016, by undertaking merchant trading in dry
fruits. Operations are managed by Mr King Kakkar.
GANPATI INFRASTRUCTURE: Ind-Ra Withdraws 'BB+' Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Ganpati
Infrastructure Development Company Limited's (GIDCO) 'IND BB+'
Long-Term Issuer Rating. The Outlook was Stable. The agency has
also withdrawn the Long-term 'IND BB+' rating with a Stable
Outlook on GIDCO's INR130 million term loan.
The ratings have been withdrawn due to lack of adequate
information. Ind-Ra will no longer provide ratings or analytical
coverage for GIDCO.
GARVE MOTORS: CARE Upgrades Rating on INR16cr LT Loan to B+
-----------------------------------------------------------
CARE revises ratings assigned to the bank facilities of Garve
Motors Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 16.00 CARE B+; Stable
Revised from CARE B
Rating Rationale
The revision in the rating assigned to the long term bank
facilities of Garve Motors Private Limited (GMPL) takes into
consideration the improvement in the financial risk profile of
the company during FY16 (refers to the period from April 1 to
March 31) characterized by healthy y-o-y growth of 26.69% in its
total operating income (TOI) and resultant increase in its profit
largely led by increase in total number of cars sold by 20.11%.
The rating continues to remain constrained on account of moderate
net worth base of the company, weak debt indicators with high
gearing levels, working capital intensive nature of operations
and competitive and cyclical nature of the passenger vehicles
(PV) industry.
The rating continues to factor in the long and established track
record of the promoters in the autodealership industry coupled
with the diversified business profile of the promoter group,
established operations with long standing association with its
principals - Hyundai Motor India Limited (HMIL) which is the
second largest original equipment manufacturer (OEM) in the
Indian passenger car segment.
The ability of the company to increase its scale of operations
while sustaining the improvement in its profitability and
efficient management of its working capital requirements is the
key rating sensitivity.
GMPL, incorporated in February 2009 is an authorized dealer in
the PV segment for HMIL. GMPL is based out of Pune (Maharashtra)
and is engaged in sale of new cars, servicing of vehicles and
sales of spare parts and accessories for HMIL. GMPL operates with
two owned showrooms located at Wakad and Wadgaon in Pune and has
a warehouse at Marunji in Pune which can store approximately 500-
600 cars.
GMPL is promoted by Mr. Vinayak Garve (Managing Director (MD))
who has more than five years of experience in automobile
dealership industry. The promoters of the company are also
involved in
the real estate business through two group entities Vinayak
Enterprises (currently no operations) and Garve Developments and
have more than ten years of experience in the real estate
business. Aniket Garve who is the son of Karan Garve is
introduced as a director in the company management on May 1,
2016.
As per FY16 Audited results, company reported total operating
income (TOI) of INR178.13 crore (P.Y. FY15: INR141.05 crore) and
profit after tax (PAT) of INR1.83 crore (P.Y. FY15: INR1.10
crore).
GEETHA KRISHNA: ICRA Suspends B+ Rating on INR25cr Bank Loan
------------------------------------------------------------
ICRA has suspended the long-term rating of [ICRA]B+ assigned to
the INR25.00 crore bank facilities of Geetha Krishna Spinning
Mills Private Limited. The suspension follows ICRA's inability to
carry out a rating surveillance in the absence of the requisite
information from the Company.
GOPINATH DAIRY: ICRA Reaffirms 'D' Rating on INR14cr Loan
---------------------------------------------------------
ICRA has re-affirmed the rating at [ICRA]D for the INR11.50 crore
of term loans and the INR0.50 crore working capital facility of
Gopinath Dairy Products Private Limited. ICRA has also re-
affirmed the rating at [ICRA]D for the INR14.00 crore of
unallocated limits for the company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limit
(Term Loan) 11.50 [ICRA]D re-affirmed
Fund Based Limit
(Cash Credit) 0.50 [ICRA]D re-affirmed
Unallocated Limit 14.00 [ICRA]D re-affirmed
The rating re-affirmation takes into account the continuing
delays in debt servicing owing to cash flow mismatch following
delays in project commissioning and commencement of loan
repayment.
Incorporated in 1994, Gopinath Dairy Products Private Limited
(erstwhile Glaze Polycoat Private Limited) operated as an
industrial warehouse at Turbhe in Navi Mumbai by promoters Mr.
L.H. Chitalia and Mr. Rajesh L. Chitalia till 2009. In addition,
the company operated as a repacking-cum-warehousing unit till
2008 for Kodak India Private Limited (for cameras and camera
rolls), Saregama India Limited (for CDs and cassettes) and Voltas
Limited (for chemicals). The unit measures about 1,268 square
meters and is taken on a 99-year sub-lease from MIDC by the
promoters. In 2011, the promoters entered into a 10-year job-work
agreement with Reliance Dairy Foods Limited (RDFL), which is a
step-down subsidiary of the financially strong Reliance
Industries Limited, for processing raw milk into pasteurised milk
and milk products such as cottage cheese, curd and clarified
butter to be sold under the brand name, Reliance Dairy Life. The
promoters have recently set up a composite milk and milk products
processing plant, with a processing capacity of 2 lakh litres per
day of milk, in place of the industrial warehouse unit at Turbhe.
GOVIND CABLE: ICRA Reaffirms 'B' Rating on INR6.0cr LT Loan
-----------------------------------------------------------
ICRA has reaffirmed its long-term rating of [ICRA]B and short-
term rating of [ICRA]A4 on the INR13.00-crore(enhanced from
INR10.00 crore) bank facilities of Govind Cable Industries.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based Limits-
Long Term 6.00 [ICRA] B; reaffirmed
Non-fund based
Limits-Short Term 7.00 [ICRA] A4; reaffirmed
ICRA's ratings continue to derive comfort from the long track
record of the partners in the cables industry and the firm's
established relationships with its customers, including Bharat
Heavy Electricals Limited (BHEL) and NTPC Limited. ICRA also
draws comfort from the healthy order book position of the firm,
which gives a healthy near term revenue visibility.
The ratings are, however, constrained by GCI's modest scale of
operations and the highly competitive and fragmented nature of
the industry it operates in, with the presence of numerous
players in both organised and unorganised sectors. The ratings
also take into account the firm's dependence on Government-
related orders, as well as its exposure to high customer
concentration risks, with ~45% of its operating income derived
from BHEL, which results in an elongated receivables cycle and
keeps its operations working capital intensive. GCI's stretched
liquidity position is reflected by its almost fully utilised
working capital limits. ICRA's ratings also factor in the
susceptibility of the firm's profitability to raw material price
fluctuations, given the large quantum of fixed price nature of
orders, which may dampen the margins of the firm. Furthermore,
the constitution of the entity as a partnership firm also renders
it susceptible to capital withdrawals by the partners, which
could adversely impact its credit metrics.
Going forward, GCI's ability to grow at a healthy growth rate
while maintaining profitability and maintaining adequate
liquidity will be the key rating sensitivities.
Govind Cable Industries was established in 1978 to manufacture
power, control and instrumentation cables mainly for steel and
power sectors. The firm caters to Government entities or private
dealers who supply to Government entities. The manufacturing
facility is located at the industrial area of Sahibabad in
Ghaziabad, Uttar Pradesh.
Recent Results
GCI, reported an operating income of INR21.88 crore in FY2016 and
a net profit of INR0.22 crore, as against an operating income of
INR19.17 crore and a net profit of INR0.21 crore in FY2015.
GRAND CONSTRUCTION: ICRA Suspends 'B' Rating on INR5cr Loan
-----------------------------------------------------------
ICRA has suspended the long-term rating of [ICRA]B to the INR5.0
crore fund-based facilities and short-term rating of [ICRA]A4 to
INR1.0 crore of proposed limits of Grand Construction Co. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
firm.
GREEN VILLAGE: Ind-Ra Withdraws 'BB' Long-Term Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Green Village
Agros Private Limited's (GVA) '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 the company.
GVA's ratings:
-- Long-Term Issuer Rating: 'IND BB'; Outlook Stable; rating
withdrawn
-- INR7.5 million term loans: 'IND BB'; Outlook Stable; rating
withdrawn
-- INR185 million fund-based facilities: 'IND BB'; Outlook
Stable and 'IND A4+'; ratings withdrawn
HI-ROCK CONSTRUCTION: ICRA Suspends B+ Rating on INR20cr Loan
-------------------------------------------------------------
ICRA has suspended the [ICRA]B+ rating assigned to the INR20.00
Crore bank facility of Hi-Rock Construction Private Limited. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
HYDROTECH PARYAVARAN: Ind-Ra Withdraws 'BB-' LT Issuer Rating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Hydrotech
Paryavaran (India) Private Limited's (HPIPL) 'IND BB-(suspended)'
Long-Term Issuer Rating.
The ratings have been withdrawn due to lack of adequate
information. Ind-Ra will no longer provide ratings or analytical
coverage for HPIPL.
Ind-Ra suspended HPIPL's ratings on June 27, 2016.
HPIPL's ratings:
-- Long-Term Issuer Rating: 'IND BB-(suspended)'; rating
withdrawn
-- INR60 million fund-based working capital limits:
'IND BB-(suspended)'/'IND A4+(suspended)'; ratings
withdrawn
-- INR60 million non-fund-based working capital limits:
'IND A4+(suspended)'; rating withdrawn
IMPEX METAL: ICRA Suspends 'D' Rating on INR500cr LOC
-----------------------------------------------------
ICRA has suspended [ICRA]D rating assigned to the INR500.00-crore
line of credit of Impex Metal & Ferro Alloys Limited. The
suspension follows lack of co-operation from the company.
INDIA DAIRY: CARE Assigns 'B+' Rating to INR15cr LT Loan
--------------------------------------------------------
CARE assigns 'CARE B+' rating to the long-term bank facilities of
India Dairy Feeds Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 15 CARE B+ ; Stable
Rating Rationale
The rating assigned to the bank facilities of India Dairy Feeds
Private Limited (IDPL) is constrained by its project
stabilization risk, risk of non-renewal of agreement with Kaira
District Co-operative Milk Producers' Union Ltd, referred as Amul
Dairy, volatile input prices and raw material availability risks
and highly competitive and fragmented industry with many regional
unorganized players. The aforesaid constraints are partially
offset by experienced promoter and authorized agreement with
Kaira District Co-operative Milk Producers' Union Ltd, referred
as Amul Dairy.
The ability to improve its scale of operations along with
profitability margins and ability to manage working capital
effectively are the key rating sensitivities.
IDPL, incorporated in the year 2014 was promoted by Mr Anirban
Nath, Mr Susmita Nath and Mr Surajit Chakravarti of Kolkata. IDPL
set up a unit engaged in the manufacturing of cattle feed at
Bankura, West Bengal, with installed capacity of 30000 MTPA. IDPL
has entered into authorized agreement with Kaira District Co-
operative Milk Producers' Union Ltd, referred as Amul Dairy in
August 2016 for a period of 5 years, whereby Amul Dairy will
obtain cattle feed of different types produced by IDPL, packed in
HDPE bags or in different pack sizes as decided by Amul Dairy,
with the objective of marketing the cattle feed under 'Amul'
brand in Kolkata and other markets in the eastern region as
decided by Amul dairy.
Mr. Anirban Nath, the Managing Director, looks after the day-to-
day operations of the entity along with a team of experienced
personnel.
INDIA FROZEN: Ind-Ra Withdraws 'B+' Long-Term Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn India Frozen
Foods' 'IND B+' Long-Term Issuer Rating. The Outlook was Stable.
The agency has also withdrawn IFF's INR42.97 million term loan's
Long-term 'IND B+' 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 the company.
INDIAN CROP: ICRA Reaffirms B+ Rating on INR5.0cr Cash Loan
-----------------------------------------------------------
ICRA has reaffirmed its long-term rating of [ICRA] B+ on the
INR6.50-crore bank facilities of Indian Crop Science Private
Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 5.00 [ICRA]B+; reaffirmed
Term Loan 0.50 [ICRA]B+; reaffirmed
Unallocated 1.00 [ICRA]B+; reaffirmed
The rating action factors in the increase in operating income in
FY2016 as well as the decline in gearing levels, offset by the
decline in operating margins and deterioration in the interest
coverage ratio.
ICRA's rating also takes into account the company's weak
financial profile due to the small scale of operations and the
declining operating profit margin and return on capital employed
over the past few years coupled with weak debt protection
matrices. The rating is further constrained by the fragmented
nature of the domestic zinc sulphate industry and the
vulnerability of profit margins to agro climatic conditions and
fluctuations in the price of zinc ash, which is the key raw
material. ICRA also continues to take into account the
geographical concentration risk as the company's operations are
largely concentrated in Uttar Pradesh and Uttarakhand.
ICRA, however, positively factors in the promoter's extensive
experience in the fertilizer and pesticide industry, the steady
growth prospects for zinc sulphate in India due to prevalent zinc
deficiency in the soil and the strong policy emphasis towards
consumption of micronutrients.
The ability of the company to increase its scale of operations,
improve profitability and manage its working capital cycle
efficiently will be the key rating sensitivity.
The company was incorporated in February 2011. Mr. Bijendra Lohia
and Mr. Praveen Kumar are its directors. The company commenced
operations in April 2012 from its manufacturing facility at
Meerut, Uttar Pradesh. The company is engaged in the
manufacturing of fertilizers and pesticides and its product
profile includes products with nutrients such as zinc, iron,
copper, sulphur, calcium, magnesium, and boron in varying
proportions.
Recent Results
In FY2016, ICSPL reported an operating income (OI) of INR13.57
crores and a profit after tax (PAT) of INR0.03 crore as against
an OI of INR12.77 crores and a PAT of INR0.01 crore in the
previous year.
INDUSTRIAL HANDLING: CRISIL Assigns B+ Rating to INR28.3MM Loan
---------------------------------------------------------------
CRISIL has assigned 'CRISIL B+/Stable' rating to the long-term
bank facilities of Industrial Handling (IH).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 26.7 CRISIL B+/Stable
Term Loan 28.3 CRISIL B+/Stable
The rating continues to reflect the firm's small scale of
operation in a tender driven business and working capital
intensive operations marked by high receivables. These weaknesses
are partially offset by the extensive experience of its
proprietor in rental business and the firm's comfortable
financial risk profile marked by healthy net-worth base, moderate
gearing and adequate debt protection metrics.
Outlook: Stable
CRISIL believes IH will continue to benefit from the extensive
experience of its promoter in the crane rental business. The
outlook may be revised to 'Positive' if increase in scale of
operations and profitability, or capital infusion improves the
financial risk profile. The outlook may be revised to 'Negative'
if lengthening of working capital cycle due to stretch in debtors
exerts pressure on liquidity, or large debt-funded capital
expenditure weakens the capital structure.
IH, set-up in 1985 as a proprietorship firm by Mr Champa Nandi,
is in the business of providing heavy hydraulic equipment and
crane rental services. The company has a fleet size of 70 cranes
with capacity 20- 400 Metric Tonnes. It also has a workshop in
Haldia equipped with good infrastructure, qualified and expert
mechanics, operators who are well- versed in modern technology.
K. MOIDEENKUTTY: ICRA Suspends 'B' Rating on INR5cr LT Loan
-----------------------------------------------------------
ICRA has suspended the long-term rating of [ICRA]B assigned to
the INR5.00 crore, long term fund based facilities & short term
rating of [ICRA] A4 assigned to the INR5.00 crore, short term,
non fund based facilities of M/s K. Moideenkutty Haji. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-Term-Fund Based 5.00 [ICRA]B Suspended
Long-Term- Non-fund
Based 5.00 [ICRA]A4 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.
K Moideenkutty Haji, based in Kasaragod, is a proprietorship firm
incorporated in 1977 and is involved in the business of road,
building and bridge construction for the government departments.
The proprietor has been in this business for nearly past four
decades. KMH is registered as "A" Class Contractor by the PWD,
Kerala. It mainly caters to clients such as Public Works
Department (PWD), NABARD and Irrigation Department. The areas of
operations include Kasaragod district, Kochi and Kozhikode,
Kerala. KMH has also undertaken construction contracts in
Madikeri, Karnataka.
KHAYA SOLAR: ICRA Upgrades Rating on INR54.20cr Loan to B-
----------------------------------------------------------
ICRA has upgraded the rating from [ICRA]C+ to [ICRA]B- for
INR54.20 crore term loans of Khaya Solar Projects Private
Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 54.20 [ICRA]B-; upgraded from
[ICRA]C+
The rating actions factors in the improvement in liquidity
profile of the company supported by satisfactory operational
performance of the plant over the last one year, the timely
receipt of payments from NTPC Vidyut Vyapar Nigam Ltd (NVVN) and
the availability of 2 quarter Debt Service Reserve Account
(DSRA). The rating continues to be supported by long track record
of the project, presence of NVVN as a counterparty and
availability of a high tariff of INR11.50/unit which ensures
project viability and enables timey debt servicing.
The rating is, however, constrained by the stretched liquidity
position of the parent, Lanco Solar Energy Pvt Ltd which is rated
at [ICRA]D. Further, the project has a relatively high capital
cost/MW which makes their power uncompetitive vis-Ö-vis other
conventional power sources and also vis-Ö-vis the more recent
solar installations. Finally, the rating factors in the
seasonality and possible variance in solar irradiance across
years which can impact year on year returns given revenues are
linked to actual generation.
Going forward, the credit profile of the parent, the capital
allocation plans of KSPL, the operational parameters of the solar
power plant and the schedule of receipt of payments from NVVN
will remain a key rating sensitivity.
Khaya Solar Projects Private Limited (KSPL) is an SPV, promoted
by Lanco Solar Energy Private Limited (LSEPL, subsidiary of Lanco
Infratech Limited) for setting up 5MW solar power plant in the
state of Rajasthan. The project has been set up under centre's
Jawaharlal Nehru National Solar Policy with NTPC Vidyut Vyapaar
Nigam Ltd (NVVN) being the designated nodal agency to implement
the policy framework. The SPV has entered into a 25 year PPA with
NVVN. The feed in tariff is INR11.50 per unit for entire term of
the agreement of 25 years. The total project cost was INR82.2
crores which was funded in a debt- equity Ratio of 2:1.
KRISHNA COTTEX: CRISIL Reaffirms 'B' Rating on INR40MM Cash Loan
----------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Krishna
Cottex (KC) continues to reflect the firm's modest scale of
operations in the highly competitive cotton industry, and its
weak financial risk profile because of small networth and subdued
debt protection metrics. These weaknesses are partially offset by
its promoters' extensive industry experience, and its processing
unit's proximity to the cotton-growing belt in Gujarat.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 40 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 7 CRISIL B/Stable (Reaffirmed)
Term Loan 23 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes KC will continue to benefit from its promoters'
extensive industry experience. The outlook may be revised to
'Positive' if substantial revenue and stable profitability lead
to increase in accrual. The outlook may be revised to 'Negative'
if operating margin is low, or if the firm undertakes large,
debt-funded expansion, or if its working capital management
weakens, constraining its financial risk profile.
KC is an Amreli, Gujarat-based partnership firm established by
the Suvagiya and Paradava families in 2013. It gins cotton. The
promoters have experience of more than a decade in the cotton
industry.
LANCO SOLAR: ICRA Reaffirms 'D' Rating on INR425cr Loan
-------------------------------------------------------
ICRA has reaffirmed the long-term rating assigned to the INR150
Crore of fund based facilities of Lanco Solar Energy Private
Limited at [ICRA]D. ICRA has also reaffirmed the short term
rating assigned to the INR425 Crore of non-fund based facilities
LSEPL at [ICRA]D. ICRA's rating action factors in the continued
delays in servicing debt obligations by the company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits 150.0 [ICRA]D; reaffirmed
Non Fund Based limits 425.0 [ICRA]D; reaffirmed
ICRA's rating action factors in the continued delays in receipt
of payment from one of its key customers Maharashtra State Power
Generation Company (Mahagenco) where the slow debtor realization
has resulted in stretched liquidity position of the company. The
liquidity crunch has also impacted the execution of the 100 MW
NTPC project being set up in Mandsaur. The rating also factors in
the weak financial health and significant funding commitments of
the promoter company.
However, ICRA acknowledges the substantial improvement in
turnover and profitability in FY16 as a result of better order
execution in the last fiscal. LSEPL has a strong order book of
over 150 MW currently which, along with upcoming bidding
opportunities in the PSU sector, gives adequate revenue
visibility in the medium term. ICRA also takes note of LSEPL's
established position in the solar EPC space and sourcing of
equipments from reputed global suppliers with back to back
warranties that mitigates contingency risks.
Lanco Solar Energy Private Limited (LSEPL) is a 100% subsidiary
of Lanco Infratech Limited. LSEPL was established in June 2009
and is engaged in providing design & engineering, procurement of
equipments and complete construction of solar power projects. The
company has so far executed turnkey EPC contracts for ~250.0 MW
solar power projects located majorly in Rajasthan, Gujarat and
Maharashtra.
Recent Results
In FY 2015 the company reported an operating income of INR92.29
Crore and net loss of INR22.26 Crore against an operating income
of INR517.00 Crore and PAT of INR3.34 Crore in FY 2016.
LANCO SOLAR PRIVATE: ICRA Reaffirms 'D' Rating on INR940cr Loan
---------------------------------------------------------------
ICRA has reaffirmed the long-term rating assigned to the INR940
Crore of fund based facilities of Lanco Solar Private Limited at
[ICRA]D. ICRA's rating action factors in the continued delays in
servicing debt payments by the company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits 940.0 [ICRA]D; reaffirmed
The rating takes into account the continued delay in servicing of
debt obligations by the company on bank loans mobilized for
partially funding its polysilicon and wafer manufacturing
project. The project time lines for execution has been extended
due to the delay in change in scope and size of the project and
now the company has proposed the new COD ie Jul'16 from Oct'16
previously. Due to the change in scope and size of the project,
there were delays in commencement of project activity. However,
LSPL has, in June 2016, commissioned another 100MW of its module
manufacturing capacity which takes its total installed capacity
to 175 MW.
Lanco Solar Private Limited (LSPL) established in July 2008 is a
100% subsidiary of Lanco Solar Energy Private Limited (LSEPL),
which in turn is a subsidiary of Lanco Infratech Limited (LITL).
LSPL is setting up 1800 Metric Tonne per annum (MTPA) (increased
from initially envisaged capacity of 1250 MTPA) Polysilicon
manufacturing capacity and 100 MW (increased from initially
envisaged capacity of 80 MW) solar wafer manufacturing capacity.
LSPL has been allotted 250 acres of land in District Rajnandgaon
of Chhattisgarh for the implementation of the project. The said
land has been notified a Special Economic Zone (SEZ). LSPL also
set up a 75 MW of crystalline silicon module manufacturing
facility at the same project site in FY 2012. The capex on the
module manufacturing facility was funded through fresh equity
infusion and no additional external debt was raised for the same.
The company has been sourcing solar cells from India and the
modules manufactured have so far been largely supplied to Lanco
Solar Energy Private Limited which is the parent company of LSPL
and a solar EPC contractor.
Recent Results
In FY 2015 the company reported an operating income of INR21.06
Crore and net loss of INR6.01 Crore against an operating income
of INR116.40 Crore and net loss of INR3.51 Crore in FY 2016.
LUMBINI CONSTRUCTIONS: CRISIL Assigns B- Rating to INR200M Loan
---------------------------------------------------------------
CRISIL has revoked the suspension of its rating on the bank loan
facility of Lumbini Constructions Limited (LCL) and assigned its
'CRISIL B-/Stable' rating to the facility. CRISIL had, on
March 19, 2012, suspended the rating as LCL had not provided the
necessary information for rating review. The company has now
shared the requisite information, enabling CRISIL to assign a
rating on the bank facility.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Overdraft Facility 200 CRISIL B-/Stable (Assigned;
Suspension Revoked)
The rating reflects the stretched liquidity, because of delays in
execution of ongoing projects. The rating also factors in the
modest financial risk profile, because of the subdued capital
structure, and susceptibility to risks and cyclicality inherent
in the Indian real estate industry. These weaknesses are
partially offset by the extensive experience of the promoters.
Outlook: Stable
CRISIL expects liquidity to remain under pressure over the medium
term. The outlook may be revised to 'Positive' if an equity
infusion by the promoters, or receipt of compensation for land
from the Hyderabad Metro Rail Ltd, strengthens the financial risk
profile and liquidity. The outlook may be revised to 'Negative'
if time or cost overrun in projects, or significant delays in
realisation of advances from customers, weakens liquidity.
Set up in 1987 as a partnership firm, LCL (formerly, Lumbini
Constructions) was reconstituted as a closely-held public limited
company in 2001. The company is engaged in developing
residential and commercial projects.
M. MOHANDOSS: ICRA Suspends 'B/A4' Rating on INR5.25cr Loan
-----------------------------------------------------------
ICRA has suspended the long term rating of [ICRA]B and the short
term rating of [ICRA]A4 outstanding on the INR5.25 crore bank
facilities of M. Mohandoss. The suspension follows ICRA's
inability to carry out a rating surveillance in the absence of
the requisite information from the company.
MAHESHWARI TECHNOCAST: CRISIL Assigns B Rating to INR39.5MM Loan
----------------------------------------------------------------
CRISIL has revoked the suspension of its ratings on the bank
facilities of Maheshwari Technocast Limited (MTL), and has
assigned the 'CRISIL B/Stable/CRISIL A4' ratings to these
facilities. CRISIL had suspended the ratings on December 7, 2016,
as the company had not provided the information required for a
rating review. It has now shared the requisite information,
enabling CRISIL to assign ratings to the facilities.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 1 CRISIL A4 (Assigned;
Suspension Revoked)
Cash Credit 39.5 CRISIL B/Stable (Assigned;
Suspension Revoked)
Letter of Credit 6.7 CRISIL A4 (Assigned;
Suspension Revoked)
Term Loan 12.8 CRISIL B/Stable (Assigned;
Suspension Revoked)
The ratings reflect the modest scale of operations and exposure
to intense competition in the steel industry, leading to moderate
profitability, and the working capital-intensive operations,
resulting in weak liquidity. These rating weaknesses are
partially offset by the extensive experience of the promoters.
Outlook: Stable
CRISIL believes MTL will continue to benefit from the extensive
experience of its promoters. The outlook may be revised to
'Positive' if a substantial growth in revenue and profitability,
and/or capital infusion by the promoters, improves liquidity
significantly. The outlook may be revised to 'Negative' if a
decline in revenue or profitability leads to subdued cash
accrual, or if a large, debt-funded capital expenditure weakens
liquidity.
MTL, promoted by Mr Suresh Kumar Mantri, was originally
established as a partnership firm in 1974, and reconstituted as a
limited company in 1996. The company manufactures rolling mill
spare parts, as per client specifications. The manufacturing
facility, which mainly comprises a foundry, is located at Bhilai
(Chhattisgarh).
MILANO PAPERS: ICRA Assigns B+ Rating to INR15cr Cash Loan
----------------------------------------------------------
ICRA has assigned the long term rating of [ICRA]B+ to the
INR15.00 crore1 (enhanced from INR8.80 crore) cash credit
facility and the INR6.31 crore term loan facility of Milano
Papers Private Limited. ICRA also has an outstanding short term
rating of [ICRA]A4 for the INR1.20 crore short term non-fund
based facility of MPPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 15.00 [ICRA]B+ assigned/outstanding
Term Loan 6.31 [ICRA]B+ assigned
Non-fund based-
Bank Guarantee 1.20 [ICRA]A4 outstanding
The assigned ratings draw comfort from the long industry
experience of the promoters and their established business
relations with customers and suppliers.
The assigned ratings continued to be 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.
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.
MOUNT INFRA: ICRA Suspends 'B' Rating on INR7cr LT Loan
-------------------------------------------------------
ICRA has suspended [ICRA]B rating assigned to the INR7.00 crore
Long Term fund based and non fund based facilities of Mount Infra
Project. The suspension follows ICRA's inability to carry out a
rating surveillance in the absence of the requisite information
from the company.
Mount Infra Project is a Mumbai based partnership firm with
having two partners - Mr. Jeemit Shah and Mr. Rohit Shah.
Incorporated in 2007, Mount Infra Project is involved in civil
construction works which includes construction and repairs of
buildings, bridges, concrete and asphalt roads, drainage system,
etc. for local bodies like Municipal Corporation of Greater
Mumbai, Kalyan Dombivli Municipal Corporation, Mira Bhayander
Municipal Corporation, Thane Municipal Corporation, etc. The firm
is a AA class registered contractor with the Public Works
Department. The firm is a part of the Jekin Group which is
involved in similar operations since 1990.
NAVKAR BUILDCON: ICRA Reaffirms B- Rating on INR15cr LT Loan
------------------------------------------------------------
ICRA has re-affirmed the long-term rating of [ICRA]B- assigned to
the INR15.00 crore long term fund based bank facility of Navkar
Buildcon.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-Term Fund
Based Limit (CC) 15.00 [ICRA]B- Re-affirmed
The rating re-affirmation continues to factor in the significant
market risk with only 30% of the saleable area booked till
October 2016 under its ongoing project, Navkar Plaza, owing to
weak market conditions and predominantly commercial nature of the
project due to which sales are likely to remain back-ended. The
rating also remains constrained by the stretched liquidity
position of the firm arising on account of slow pace of bookings
and collection of customer advances; and significant project
execution risk with more than 30% of project cost still remain to
be incurred as on October 2016. ICRA also notes that the
repayments of term loans have already commenced; hence timeliness
of sales and collections in presence of competition from other
projects in the vicinity would remain critical to avoid cash flow
mismatches and ensure timely debt servicing failing which there
exists a refinancing risk. Further, NB being a partnership
concern remains exposed to risks of capital withdrawals which
could impact its net worth and thereby the capital structure.
Nevertheless, the rating draws comfort from the long track record
and experience of the promoter group in executing real estate
projects in the past, particularly at Ratnagiri in Maharashtra.
Moreover, the project being located in the central business
district of Ratnagiri, makes it attractive for commercial buyers.
Incorporated in 2011, Navkar Buildcon (NB) is a partnership firm
engaged in the development of a residential-cum-commercial real
estate project - Navkar Plaza - in Ratnagiri, Maharashtra. The
firm is a joint venture between the Ratnagiri-based Padmavatee
Group and the Panvel-based Neel Group. The firm is currently
developing a commercial-cum-residential real estate project at
Ratnagiri, Maharashtra, with a saleable area of 1.47 lakh sq.
ft., comprising six wings that would offer 73 shops, 153 office
premises, 70 residential apartments, and a restaurant. The
construction of the commercial portion of the project started in
May 2013 and is expected to be completed by December 2017.
NECO HEAVY: ICRA Lowers Rating on INR12.5cr LT Loan to B+
---------------------------------------------------------
ICRA has revised the long-term rating assigned to the INR12.50
crore fund based facilities to [ICRA]B+ from [ICRA]BB- (Stable)
and has also reaffirmed the short term rating of [ICRA]A4 to the
INR5.00 crore non fund based limits of Neco Heavy Engineering And
Castings Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term-Fund
Based Limits 12.50 [ICRA]B+; revised from
[ICRA]BB- (Stable)
Short Term-Non
Fund Based 5.00 [ICRA]A4; reaffirmed
The rating revision takes into account the weakening of financial
profile of the company as reflected by decline in revenues and
sharp increase in the working capital intensity of operations
owing to stretched receivables and high inventory levels during
FY2016 and H1FY2017. The ratings also factor in the modest
capitalization levels and coverage indicators; and the muted
revenue growth expected in the current fiscal on account of weak
order flow. The ratings continue to remain constrained on account
of the competitive business environment in the casting industry
which exerts pricing pressures and company's susceptibility to
the cyclicality inherent in the steel industry.
Nonetheless, the ratings continue to draw comfort from the long
standing experience of the promoters in the casting industry, and
the reputed and diversified client base of the company indicating
a good product quality.
Going forward, the ability of the company to manage its working
capital cycle and ramp up its sales in the wake of the weak
industrial environment would be the key rating considerations.
NHECL was established in 1987, as Neco Castings Limited (NCL),
manufacturing a variety of grey and ductile castings. NHECL is
part of the Neco Group of Industries. The company manufactures
castings catering to various industries including steel, material
handling, sugar and other engineering industries. During FY2009,
the name of the company was changed to Neco Heavy Engineering and
Castings Limited as the company ventured into the steel
fabrication business, catering to various engineering industries.
The company undertakes both structural and equipment fabrication
from its plant located in Nagpur (Maharashtra).
Recent Results
For the financial year ended March 31, 2016, the company reported
an operating income of INR33.60 crore and a net profit of INR0.17
crore as against and operating income of INR56.92 crore and a net
profit of INR0.29 crore for the financial year ended March 31,
2015.
PETRO-CHEM INDUSTRIES: CRISIL Reaffirms B+ Cash Credit Rating
-------------------------------------------------------------
CRISIL's ratings on the bank facilities of Petro-Chem Industries
(PCI) continues to reflect a modest scale of operations, a
constrained financial risk profile because of a leveraged capital
structure, and large working capital requirement in the highly
fragmented and competitive pipe fittings industry. These
weaknesses are partially offset by the extensive industry
experience the proprietor and an established relationship with
customers and suppliers.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 10 CRISIL A4 (Reaffirmed)
Cash Credit 50 CRISIL B+/Stable (Reaffirmed)
Long Term Loan 10 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 2.5 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes PCI will continue to benefit from the extensive
industry experience of its proprietor. The outlook may be revised
to 'Positive' in case of significant and sustained improvement in
scale of operations and profitability, leading to higher-than-
expected cash accrual, or sizable infusion of fresh funds
strengthening the capital structure. The outlook may be revised
to 'Negative' if lower-than-expected revenue and cash accrual, a
further stretch in the working capital cycle, or unanticipated
debt-funded capital expenditure weakens the financial risk
profile, particularly liquidity.
PCI is a Vadodara, Gujarat-based proprietorship firm established
in 2002. It manufactures forged pipe fittings and flanges made of
carbon steel, stainless steel, alloy steel, and mild steel.
PROVET PHARMA: CRISIL Reaffirms B+ Rating on INR95MM Cash Loan
--------------------------------------------------------------
CRISIL's rating on the long-term bank facility of Provet Pharma
Private Limited (PPPL) continue to reflect a modest scale of
operations in the intensely competitive poultry feed industry,
and a below-average financial risk profile because of average
gearing and weak debt protection metrics. These rating weaknesses
are partially offset by the extensive experience of the promoters
in the poultry feed industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 95 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes PPPL will continue to benefit over the medium
term from the extensive industry experience of its promoters. The
outlook may be revised to 'Positive' in case of a significant
increase in scale of operations and improvement in profitability,
while working capital requirement is maintained. Substantial
equity infusion, leading to improvement in the financial risk
profile, may also result in a 'Positive' outlook. The outlook may
be revised to 'Negative' in case of large, debt-funded capital
expenditure or a decline in profitability, leading to
deterioration in the financial risk profile. The outlook may also
be revised to 'Negative' if working capital management
deteriorates, resulting in weakening of liquidity.
Update
Revenue increased by 51% fiscal-on-fiscal to INR407 million in
fiscal 2016, higher than CRISIL's expectation. The increase was
on account of starting of two new divisions. Operating margin
improved to 5.6% from 5.4% in fiscal 2015 and is expected to
remain at around this level over the medium term.
Working capital is being funded by stretching creditors and gross
current assets are at 192 days as on March 31, 2016, against
earlier expectation of 196 days. Inventory is estimated at 43
days and receivables at 146 days as on this date.
The financial risk profile remained below average because of
average gearing and weak debt protection metrics. In fiscal 2016,
net cash accrual to total debt and interest coverage ratios were
at 14% and 2.07 times, respectively, while gearing was at 1.16
times as on March 31, 2016.
Liquidity is likely to remain adequate over the medium term,
driven by adequate, though low, cash accrual to meet long-term
debt obligation. The bank line was fully utilised during the 12
months through June 2016. Company has been resorting to adhoc
limits and enhancement is expected for the CC limits.
PPPL, established in 2009, manufactures and trades in animal feed
supplements and pharmaceutical formulations for animals. Its
operations are managed by its sales director, Dr Senthil
Suthanthirakumar and its marketing director, Dr V Muthuselvan.
R RAJAN: ICRA Suspends B+ Rating on INR5.0cr Bank Loan
------------------------------------------------------
ICRA has suspended the long-term rating of [ICRA]B+ to the
INR5.00 crore fund based facility of R Rajan (Government
Contractor) BRK Constructions. ICRA has also suspended the short-
term rating of ICRA]A4 to the INR1.50 crore non fund based
facilities of BRK. The suspension follows ICRA's inability to
carry out a rating surveillance in the absence of the requisite
information from the firm.
R.R. ORNAMENTS: CARE Reaffirms B+ Rating on INR6.01cr LT Loan
-------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
R.R. Ornaments Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 6.01 CARE B+; Stable
Reaffirmed
Short-term Bank Facilities 0.15 CARE A4 Reaffirmed
Rating Rationale
The ratings of R.R. Ornaments Private Limited (RROPL) continue to
remain constrained on account of its modest scale of operations
with thin profitability and leveraged capital structure, working
capital intensive nature of operations and susceptibility of
operating profitability to volatile gold prices. The ratings are,
further, continued to remain constrained on account of its
presence in a highly competitive and fragmented Gems & Jewellery
(G&J) industry.
The ratings, however, continue to draw strength from experienced
promoters and wide range of product offerings. The ratings,
further, continue to draw comfort from continuous infusion of
share capital by the promoters during past three financial years
ended FY16 (refers to period from April 1 to March 31).
The ability of the company to increase its scale of operations
with improvement profitability and better management of working
capital would be the key rating sensitivities.
Bhilwara (Rajasthan) based RROPL was incorporated in the year
2009 by Mr. Vikas Samdani, Mr. Ankit Samdani and other family
members. RROPL is engaged in the business of manufacturing and
wholesale of gold, silver, diamond and precious stones studded
jewellery. The company is also engaged in the retailing of
jewellery through its single showroom located in Bhilwara. The
company offers wide range of products that include rings,
earrings, pendants, necklaces, bracelets, bangles, colour stones
and medallions. RROPL manufactures its own designs in 18, 20, 22
carat gold based on demand of the customers in the brand name RR.
As per audited results of FY16 (refers to period April 1 to
March), RROPL reported a total income of INR22.04 crore (FY15:
INR24.20 crore) with a PAT of INR0.07 crore (FY15: INR0.06
crore). Further, as per provisional results for 8MFY17, RROPL
has achieved TOI of INR24.00 crore.
RAMPRASTHA PROMOTERS: ICRA Suspends D Rating on INR137.75cr Loan
----------------------------------------------------------------
ICRA has suspended [ICRA]D rating assigned to the INR314.88
crore, long term loans, working capital facilities & non fund
based letter of credit and bank guarantee facilities of
Ramprastha Promoters and Developers Pvt. Ltd. The suspension
follows ICRA's inability to carry out a rating surveillance in
the absence of the requisite information from the company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 137.75 [ICRA]D suspended
Fund based limits 50.00 [ICRA]D suspended
Non Fund based limits 127.13 [ICRA]D suspended
Ramprastha Promoters & Developers Private Limited is a part of
the Ramprastha Group, a real estate developer based out of
National Capital Region (NCR). Ramprastha group has till date
completed more than 20 msqft of development in last five decades.
The completed projects by the promoters comprising residential
township, Plotted colony, commercial development and group
housing are located in Ghaziabad, Gurgaon and New Delhi.
RENITE VITRIFIED: ICRA Assigns 'B' Rating to INR29cr Term Loan
--------------------------------------------------------------
ICRA assigned the long term rating of [ICRA]B to the INR29.00
crore term loan facility (enhanced from INR3.00 crore) and a
short-term rating of [ICRA]A4 to the INR3.25 crore non fund based
facilities of Renite Vitrified LLP. ICRA also assigned rating of
[ICRA]B and [ICRA]A4 to the unallocated limit of INR0.75 crore of
RVL. ICRA also has long term rating of [ICRA]B outstanding on the
INR10.00 crore2 cash credit facility of the company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 10.00 [ICRA]B outstanding
Term Loan 29.00 [ICRA]B assigned/
outstanding
Bank Guarantee 3.25 [ICRA]A4 assigned
Unallocated 0.75 [ICRA]B/A4 assigned
The assigned rating is constrained by the nascent stage of the
firm's operations and the risk associated with stabilisation of
the plant as per the expected operating parameters. The rating
also remains constrained by the highly fragmented nature of the
tiles industry, resulting in intense competitive pressures; the
cyclical nature of the real estate industry which is the main
consuming sector; and the exposure of the firm's profitability to
volatility in raw material and gas prices as well as to adverse
foreign exchange fluctuations. Further, the assigned rating takes
into account the firm's financial profile, which is expected to
remain stretched in the near term given the debt-funded nature of
the project and impending debt repayment.
The assigned rating, however, favorably factors in the experience
of the promoters in the ceramic industry, the location advantage
of the firm for raw material procurement by virtue of its
presence in Wankaner (Gujarat) and the benefits derived from its
established associate concern in terms of marketing and
distribution network.
In ICRA's view, the ability of the timely commissioning and
stabilisation of operations within the estimated cost will remain
important from the credit perspective. Firm's sizeable reliance
on debt funding and its associated servicing burden is expected
to keep the capital structure and liquidity position of the
company stretched over the near to medium term. Further, the
ability of the firm to establish a market for its products; scale
up its operations in a profitable manner amidst intense
competition and maintain a healthy financial risk profile will
remain some of the key rating sensitivities.
Renite Vitrified LLP, incorporated in February 2016, is setting
up a Greenfield project at Wankaner in Gujarat to manufacture
medium-sized nano vitrified, glazed vitrified and twin-charged
vitrified tiles of three different sizes. The unit has an
estimated installed capacity of producing 73000 MT of tiles per
annum. The commercial operations are expected to commence from
April 2017. The promoters have proven experience in the ceramic
industry by virtue of their association with Sunraj Ceramic
Private Limited.
ROBOSOFT TECHNOLOGIES: ICRA Suspends 'B' Rating on INR4cr Loan
--------------------------------------------------------------
ICRA has suspended the long term rating of [ICRA]B assigned to
the INR4.0 crore term loan and the short term rating of [ICRA]A4
assigned to the INR4.0 crore fund based facilities of Robosoft
Technologies Private Limited. ICRA has also suspended the long
term rating of [ICRA]B and the short term rating of [ICRA]A4
assigned to the INR5.0 crore proposed facilities of the company.
The suspension follows lack of co-operation from the company.
S.B. ENTERPRISES: Ind-Ra Withdraws 'BB-' Long-Term Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn S.B.
Enterprises' (SBE) 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 SBE.
SBE's ratings:
-- Long-Term Issuer Rating: 'IND BB-'; Outlook Stable; rating
withdrawn
-- INR20 million fund-based working capital limit: 'IND BB-';
Outlook Stable and 'IND A4+'; ratings withdrawn
-- INR40 million non-fund-based facility: 'IND A4+'; rating
withdrawn
S&P INFRASTRUCTURE: Ind-Ra Withdraws BB+ Long-Term Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn S&P
Infrastructure Developers Private Limited's (SPI) '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 SPI.
SPI's ratings:
-- Long-Term Issuer Rating: 'IND BB+'; Outlook Stable; rating
withdrawn
-- INR10 million fund-based limits: 'IND BB+'; Outlook Stable
and 'IND A4+'; ratings withdrawn
-- Proposed INR340 million non-fund-based limits: 'Provisional
IND BB+'; Outlook Stable and 'Provisional IND A4+'; rating
withdrawn
-- INR300 million non-fund-based limits: 'IND BB+'; Outlook
Stable and 'IND A4+'; ratings withdrawn
SAFE DEVELOPMENT: ICRA Suspends 'D' Rating on INR26.1cr Loan
------------------------------------------------------------
ICRA has suspended long-term rating assigned to the INR23.90
crore term loan facilities of Safe Development Alms Trust. ICRA
has also suspended the long term rating of [ICRA]D to the
INR26.10 crore proposed facilities of SDAT. The suspension
follows ICRA's inability to carry out a rating surveillance in
the absence of the requisite information from the trust.
SAI MAITHILI: Ind-Ra Lowers Rating on INR630MM Bank Loans to BB+
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Sai Maithili
Power Company Private Limited's (SMPCPL) INR630 million bank
loans (outstanding INR466.2 million) to 'IND BB+' from
'IND BBB-'. The Outlook is Stable.
The downgrade reflects the increase in SMPCPL's operations and
maintenance (O&M) cost in FY16 from Ind-Ra's base case and the
consequent thin coverage ratios in FY17 to FY19. However, the
project has demonstrated improved operational performance during
April to November 2016 compared to FY15 and FY16, post the
termination of its O&M contract with Refex Energy Limited in July
2015 and assuming the O&M responsibilities in-house.
KEY RATING DRIVERS
High Operating Costs: The company's continuing high operating
expenses are denting its cash flows available for debt servicing.
Also, the absence of a debt service reserve (DSR) exposes the
project to possible operational or grid related disturbances.
SMPCPL terminated the O&M contract with Refex Energy in light of
an unsatisfactory performance in FY15 and FY16. Operating
expenses (excluding forex losses) decreased marginally to
INR33.28 million in FY16 from INR36.7 million in FY15. Operating
expenses include O&M expenses and other general expenses. Debt
service coverage ratios work out to be very close to 1x for FY17-
FY19 and could be lower if there is a stress situation. SMPCPL's
operating expenses work out to INR3.3/MW in FY16 compared to the
observed operating expenses of less than INR2 million/MW across
Ind-Ra's portfolio.
Depleted Debt Service Reserve: The loan agreement stipulates the
creation of a DSR covering six months' principal and interest
payment. The reserve was utilized to repay the buyer's credit
facility in July 2015 and is required to be replenished. The
company expects to build a DSR from operational cash flows.
SMPCPL incurred INR27.92 million of forex related losses in FY16
in relation to the buyer's credit. However, the foreign currency
denominated buyer's credit facility was fully repaid and closed.
Low Revenue Risk: The project company has a secured revenue
profile in view of its 25-year long-term power purchase agreement
with NTPC Vidyut Vyapar Nigam Limited (a wholly owned subsidiary
of NTPC Limited ('IND AAA'/Stable) at an attractive fixed tariff
of INR8.28/unit. The presence of a strong counterparty mitigates
revenue and counterparty risk.
Improved Plant Operations: The project's net plant load factor
(PLF) improved to 18.94% in FY16 from 17.76% in FY15. Also, the
average PLF for April-November 2016 was about 21.13%, above the
P90 estimate of 20.70%, showing a sustained improvement.
According to SMPCPL, the corrective measures taken to resolve
transmission and cabling related issues due to bad weather,
besides assuming O&M responsibilities in-house, have resulted in
improved PLFs.
Moderate Technology Risk: Copper indium gallium diselenide-based
thin film photovoltaic (PV) panels used for the project have a
limited operating history at the utility scale compared with
crystalline silicon-based PV panels. Copper indium gallium
diselenide-based thin film was deployed on a utility scale in
2005 and is considered to be a promising technology in the PV
industry with a potential to emerge as an alternative to the
silicon-based PV technology. Ind-Ra has relied on the
independent engineer's opinion that the module's efficiency and
response to the ambient temperature are comparable to the other
modules based on thin-film technology. However, the agency
opines that absent the long-term performance data from the
existing installations in India, there is a risk that performance
efficiency under ambient conditions may differ from management's
expectations.
Debt structure: Term loan is repayable in 50 equal quarterly
installments which started August 2013. Current interest on the
term loan is 13.75% (as of November 2016). SMPCPL has a tail
period of about 12 years.
RATING SENSITIVITIES
Negative: Any further increase in the operations and maintenance
costs than assumed in Ind-Ra's base case, non-creation of a DSR
for a prolonged period of time and lower plant generation than
assumed in Ind-Ra's base case can lead to a further rating
downgrade.
Positive: Sustained generation above Ind-Ra's base case, a
reduction in O&M cost than assumed in Ind-Ra's base case and the
creation of a DSR can result in a rating upgrade.
COMPANY PROFILE
SMPCPL is jointly sponsored by VS Lignite Power Private Limited
(52%), KSK Mineral Resources Private Limited (24%) and KSK Surya
Photovoltaic Venture Private limited (24%), all step-down
subsidiaries of KSK Energy Ventures. The project is located at
Gurha, Bikaner district of Rajasthan which has a strong solar
potential. SMPCPL had secured the right to construct a 10MW
solar power plant in Rajasthan as a qualified bidder in round II
of the JNSM Phase 1 scheme. This project is the first operating
asset of the group in the solar energy space. The project cost
of INR1,010 million was funded in a debt-equity ratio of 63:37.
The plant commenced commercial operations in February 2013.
SAMRAT FORGINGS: CRISIL Reaffirms B+ Rating on INR163MM Loan
------------------------------------------------------------
CRISIL ratings on the bank loan facilities of Samrat Forgings Ltd
(SFL) continue to reflect SFL's small scale of operations, large
working capital requirements and weak financial risk profile.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 11 CRISIL A4 (Reaffirmed)
Bill Discounting 10 CRISIL B+/Stable (Reaffirmed)
Cash Credit 163 CRISIL B+/Stable (Reaffirmed)
Letter of Credit 30 CRISIL A4 (Reaffirmed)
Proposed Long Term
Bank Loan Facility 18.6 CRISIL B+/Stable (Reaffirmed)
Term Loan 21 CRISIL B+/Stable (Reaffirmed)
These rating weaknesses are partially offset by the company's
moderate operating efficiencies owing to increasing contribution
of high-value-added products, and moderate business risk profile,
supported by its established position in the automotive
components market and established customer relationships.
Outlook: Stable
CRISIL believes that SFL will continue to benefit over the medium
term from its strong clientele comprising of leading original
equipment manufacturers in the automotive, gears, tractor,
construction equipment, and other industries. The outlook may be
revised to 'Positive' if there is substantial growth in the
company's operating revenue coupled with better profitability,
while it improves its working capital cycle. Conversely, the
outlook may be revised to 'Negative' if SFL's cash accruals are
low, most likely because of low profitability and revenue, or if
its working capital requirements increase significantly,
resulting in further weakening of its liquidity.
SFL was incorporated in 1981. The company undertakes closed-die
forging/machining for components, such as spindles, crank shafts,
connecting rods, bull gears, and crown wheels for clients in the
automobile, tractor, construction equipment, gears, and other
industries. Its managing director is Mr. Rakesh Mohan Kumar.
SHEEL CHAND: Ind-Ra Withdraws 'BB+' Long-Term Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Sheel Chand
Agroils Private Limited's (SCAPL) 'IND BB+(suspended)' Long-Term
Issuer Rating.
The ratings have been withdrawn due to lack of adequate
information. Ind-Ra will no longer provide ratings or analytical
coverage for SSL.
Ind-Ra suspended SCAPL's ratings on April 4, 2016.
SCAPL's ratings are:
-- Long-Term Issuer Rating: 'IND BB+(suspended)'; rating
withdrawn
-- INR400 million fund-based limits: 'IND BB+(suspended)';
rating withdrawn
-- INR1,575 million non-fund-based limits:
'IND A4+(suspended)'; rating withdrawn
SHIVOM MINERALS: CARE Lowers Rating on INR45cr LT Loan to D
-----------------------------------------------------------
CARE revises and suspends the ratings assigned to the bank
facilities of Shivom Minerals Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 45.00 CARE D Revised from
CARE BB-
Rating Rationale
Revision of the ratings assigned to the bank facilities of Shivom
Minerals Ltd (SML) takes into account the ongoing delays in debt
servicing amidst subdued steel industry scenario.
In the absence of the information required by CARE for monitoring
of the ratings, CARE is unable to assess and provide analytical
opinion on factual position of the company and consequent impact
on the credit profile. Consequently, CARE has suspended, with
immediate effect, the ratings assigned to the bank facilities of
Shivom Minerals Ltd.
Shivom Minerals Ltd. (SML), promoted by Shri Vikash Gupta of
Rourkela, is engaged in benefication of iron ore (20%) and
trading of steel related items (80%). Currently, SML has a
beneficiation capacity of 1,87,500 tonne per annum (tpa)
(increased from 1,50,000 tpa in September 2011) located in
Sundargarh, Orissa.
SHREE BADRI: ICRA Suspends 'B' Rating on INR15cr Cash Loan
----------------------------------------------------------
ICRA has suspended the long-term rating of [ICRA]B assigned to
the INR15-crore cash-credit facility of Shree Badri Kedar Udyog
Private Limited. The suspension follows ICRA's inability to carry
out a rating surveillance in the absence of the requisite
information from the company.
SONI GINNING: Ind-Ra Withdraws 'B+' Long-Term Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Soni Ginning
Factory's Long-Term Issuer Rating of 'IND B+'. The Outlook was
Stable. The agency has also withdrawn the 'IND B+' rating on the
company's INR60 mil. fund-based working capital limits. 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.
SP ACCURE: CRISIL Assigns 'B' Rating to INR100MM LT Loan
--------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the bank
facilities of SP Accure Labs Private limited (SP).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 75 CRISIL B/Stable
Long Term Loan 100 CRISIL B/Stable
The ratings reflect an average financial risk profile because of
a modest networth, high gearing, low debt protection metrics, and
weak liquidity. The ratings also factor in large working capital
requirement, and susceptibility of the operating margin to
volatility in raw material prices. These weaknesses are partially
offset by the extensive experience of the promoters in the
pharmaceutical industry and established customer relationship.
Outlook: Stable
CRISIL believes SP will continue to benefit from the extensive
industry experience of its promoters and its established
relationship with customers.The outlook may be revised to
'Positive' if there is sustained improvement in the working
capital cycle, or a substantial increase in networth most likely
due to sizeable equity infusion. The outlook may be revised to
'Negative' in case of a steep decline in profitability margins,
or significant deterioration in the capital structure caused most
likely by a stretched working capital cycle.
Incorporated in 2013 and based in Hyderabad, SP is promoted by Mr
K Vijay Prakash. The company sells and distributes pharmaceutical
formulations, mainly oral solids and injectables, with
specialisation in the oncology segment.
SRAVANTHI ENERGY: ICRA Reaffirms 'D' Rating on INR633.75cr Loan
---------------------------------------------------------------
ICRA has reaffirmed its long term rating of [ICRA]D to the
INR683.75 crore fund based and non-fund based bank facilities of
Sravanthi Energy Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based limits 633.75 [ICRA]D reaffirmed
Non-fund based limits 50.00 [ICRA]D reaffirmed
The ratings factor in the continued delays in debt servicing by
SEPL.
SEPL is developing a 2*225 MW gas based power project in at Udham
Singh Nagar district In Uttarakhand state. Land has been fully
acquired and all clearances are in place. The total project cost
is INRRs. 1743 crores (Rs. 3.87/MW) which is to be funded in a
debt equity ratio of 3:1. The combined cycle for Phase 1 of the
project was completed in Mar 2012 and the second phase was
expected to be operational in June 2012.
SRI VENKATESWARA: ICRA Suspends B+ Rating on INR18cr Loan
---------------------------------------------------------
ICRA has suspended the long-term rating of [ICRA]B+ (pronounced
as ICRA B plus) and the short-term rating of [ICRA]A4 assigned to
the INR18.00 crore bank facilities of Sri Venkateswara Food
Processing Industries. The suspension follows ICRA's inability to
carry out a rating surveillance in the absence of the requisite
information from the Company.
SS INFRAZONE: Ind-Ra Affirms 'BB+' Long-Term Issuer Rating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed S.S. Infrazone
Private Limited's (SSIPL) Long-Term Issuer Rating at 'IND BB+'.
The Outlook is Stable.
KEY RATING DRIVERS
The affirmation reflects SSIPL's continued moderate revenue size,
tender-based nature of its business and its susceptibility to
government regulation as projects can be delayed on account of
delay in obtaining government clearances and inclement weather.
FY16 financials indicate revenue of INR944.29 million (FY15:
INR565.21 million) on account of increased work orders from the
state authorities.
The ratings are constrained by SSIPL's tight liquidity position
and several instances of overutilization of its fund-based
limits. The average peak utilization over the 12 months ended
November 2016 was 137.85%.
The ratings, however, benefits from its healthy existing order
book position, volatile but satisfactory EBITDA margins and
moderately comfortable credit metrics. The company has an
existing order book position of INR7,558.96 million and reported
EBITDA margin of 9.87% in FY16 (FY15: 7.91%). The interest
coverage (operating EBITDA/gross interest expense) was 5.40x in
FY16 (FY15: 19.11x) and financial leverage (total adjusted
debt/operating EBITDAR) was 0.70x (0.50x).
RATING SENSITIVITIES
Positive: Sustained growth in revenue and strong order book
position while maintaining the credit metrics, along with
improvement in liquidity profile, could be positive for the
ratings.
Negative: Any decline in revenue or operating profitability
leading to deterioration in credit metrics could be negative for
the ratings.
COMPANY PROFILE
SSIPL came into existence in 2012. It is engaged in contract-
based construction work mainly for the government authorities
such as Jhansi Public Works Department, Gorakhpur Public Works
Department, and Lucknow Irrigation Authority. The company has
been CPWD Class-I (B&R) since 1990 and MCD Class-IA (B&R) since
1981.
SSIPL's ratings:
-- Long-Term Issuer Rating: affirmed at 'IND BB+'; Outlook
Stable
-- INR5 million fund-based limits: affirmed at 'IND BB+';
Outlook Stable and 'IND A4+'
-- INR495 million non-fund-based limits (increased from
INR290 million): affirmed at 'IND A4+'
STAR EXPORT: CRISIL Assigns 'B' Rating to INR20MM Whse Receipts
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to
the bank facilities of Star Export (SE).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Warehouse Receipts 20 CRISIL B/Stable
Packing Credit 10 CRISIL A4
Foreign Bill
Discounting 10 CRISIL B/Stable
Overdraft Facility 20 CRISIL B/Stable
The rating reflects SE's modest scale of operations in the highly
fragmented and competitive vegetables and agriculture commodities
trading industry and below-average financial risk profile marked
by modest net worth and weak debt protection metrics. These
rating weakness are partially offset by the promoters' extensive
industry experience.
Outlook: Stable
CRISIL believes that SE benefits from the extensive experience of
its promoters and its established relationship with customers
over the medium term. The outlook may be revised to 'Positive' if
the firm increases its scale of operations and profitability on a
sustained basis resulting in improvement in financial risk
profile. Conversely, the outlook may be revised to 'Negative' if
there is considerable decline in revenues or profitability or in
case deterioration in working capital management resulting in
stretched liquidity or if the firm undertakes a large debt funded
capital expenditure resulting in deterioration in financial risk
profile.
Established in 2007, Star Exports is engaged in exporting of
various vegetables and agricultural commodities to Sri Lanka,
predominantly chilies. The firm is based out of Chennai and is
promoted by Mr. Kaja Peer Mohammed.
SUJANA METAL: CARE Reaffirms 'D' Rating on INR1,701.84cr Loan
-------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Sujana Metal Products Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 1,701.84 CARE D Reaffirmed
Short-term Bank Facilities 269.13 CARE D Reaffirmed
Rating Rationale
The ratings of the facilities of Sujana Metal Products Limited
(SMPL) continue to remain constrained by the stretched liquidity
position resulting in delays in debt servicing.
SMPL belongs to the Hyderabad-based Sujana group. SMPL was
incorporated in May 1988 under the name of Sujana Steel Re-
Rolling Industries (P) Limited. The name of the company was later
changed to Sujana Steels Private Limited in March 1992 and got
converted into public limited company in April 1992 and changed
the name to current nomenclature in November 2001. SMPL is
engaged in trading of steel products and manufacturing of TMT
bars & structural steel products at its facilities located at
Hyderabad, Chennai and Vizag.
Sujana group, promoted by Sri Y. S. Chowdhary, is a South India-
based industrial house having about two decades of experience in
the steel industry. The group is involved in manufacturing of
Thermo Mechanical Treated (TMT) bars, Structural Steels,
Galvanised Steel towers (used in power transmission & telecom
sector) and steel trading through its companies; Sujana Universal
Industries Ltd, Sujana Towers Ltd, etc. SMPL has total capacity
of 1.07 million tons of different steel products.
In FY16 (refers to the period April 01 to March 31), SMPL
reported a total operating income of INR3,494.74 crore (as
against INR3.460.87 crore in FY15) and net loss of INR104.23
crore (as against PAT of INR0.94 crore in FY15).
SUPERLITE AAC: CRISIL Assigns 'B' Rating to INR80MM LT Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Superlite AAC Blocks Industry (SABI).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 59 CRISIL B/Stable
Long Term Loan 80 CRISIL B/Stable
The rating reflects the nascent stage of operations, and a weak
financial risk profile, because of the below-average capital
structure and debt protection metrics. These rating weaknesses
are mitigated by the extensive entrepreneurial experience of the
promoters and healthy demand prospects for AAC blocks and bricks.
Outlook: Stable
CRISIL believes SABI will benefit from the favourable growth
prospects for its products. The outlook may be revised to
'Positive' if stabilisation in operations at the manufacturing
facility, and substantial growth in revenue and operating profit,
strengthens the financial risk profile. The outlook may be
revised to 'Negative' if small cash accrual, arising from low
capacity utilisation, or a large, debt-funded capital
expenditure, weakens the financial risk profile.
SABI, incorporated in 2014, manufactures AAC bricks and blocks.
The manufacturing unit at Assam, started commercial operations in
April 2016. Operations are managed by partners, Mr Surendra
Kumar Mittal, Mr Raj Kamal Sarawgi and Mr Mukul Lamare.
V. H. S. MECHATRONICS: CRISIL Rates INR28.2MM Term Loan at 'D'
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL D/CRISIL D' ratings to the long-
term bank facilities of V. H. S. Mechatronics Services (P)
Limited (VHS).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 28.2 CRISIL D
Letter of Credit 4 CRISIL D
Bank Guarantee 10 CRISIL D
Cash Credit 20 CRISIL D
The ratings reflect delays in debt servicing of due to weak
liquidity owing to working capital intensive operations marked by
high receivables. The ratings also factor in VHS's small scale
and working capital intensive nature of operations and its
exposure related to high customer concentration in its revenue
profile. These weaknesses are partially offset by the extensive
experience of VHS's promoters in the electronic equipment and
engineering industry.
VHS was established in 1996 by Mr. Krishna Prasad. The company is
engaged in the retro fitting i.e. modernisation of CNC machines.
VASTRAM INDIA: Ind-Ra Withdraws 'BB-' Long-Term Issuer Rating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Vastram India
Private Limited's Long-Term Issuer Rating of 'IND BB-'. The
Outlook was Stable. The agency has also withdrawn the Long-term
'IND BB-' rating, which had a Stable Outlook, and the Short-term
'IND A4+' rating on the company's INR100 million fund-based
facilities.
The ratings have been withdrawn due to lack of adequate
information. Ind-Ra will no longer provide ratings or analytical
coverage for the company.
VASTUM INDIA: Ind-Ra Withdraws 'B-' Long-Term Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Vastum India
Limited's (VAS) Long-Term Issuer Rating of 'IND B-'. 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.
VAS' ratings are:
-- Long-Term Issuer Rating: 'IND B-'; Outlook Stable; rating
withdrawn
-- INR50 million fund-based limit: 'IND B-'; Outlook Stable;
rating withdrawn
-- INR100 million term loans: 'IND B-'; Outlook Stable; rating
withdrawn
VEEAAR FABWARE: Ind-Ra Withdraws 'B+' Long-Term Issuer Rating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Veeaar Fabware
Private Limited's Long-Term Issuer Rating of 'IND B+'. The
Outlook was Stable. The agency has also withdrawn the company's
INR150 million fund-based working capital limits' 'IND A4'
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.
VENKATESWARA ENTERPRISES: CRISIL Reaffirms B+ Cash Credit Rating
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Venkateswara
Enterprises (VE) continue to reflect below-average financial risk
profile marked by below average debt protection metrics; the
rating also factors the firm's modest scale of operations, in the
intensively competitive trading industry. These rating weaknesses
are partially offset by proprietor's extensive experience in the
plywood and veneer trading industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 100 CRISIL B+/Stable (Reaffirmed)
Letter of Credit 100 CRISIL A4 (Reaffirmed)
Proposed Long Term
Bank Loan Facility 5 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes VE will continue to benefit over the medium term
from proprietor's extensive industry experience. The outlook may
be revised to 'Positive' in case increase in scale of operations
and profitability leads to higher-than-expected net cash accrual
and adequate liquidity. Conversely, the outlook may be revised to
'Negative' in case lower-than-expected cash accrual or larger-
than-expected working capital requirement puts pressure on
liquidity.
Set up as a proprietorship firm in 2006 by Mr. Devender Goel in
Villupuram, VE trades in veneer and plywood.
VE's net profit was INR3.84 million on operating revenue of
INR380.8 million for fiscal 2016, against a net profit of INR1.05
million on operating revenue of INR130.37 million for the
preceding fiscal.
VIHAAN INFIN: Ind-Ra Withdraws 'B+' Long-Term Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Vihaan Infin
And Exim Private Limited's (VIEPL) Long-Term Issuer Rating of
'IND B+'. 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 VIEPL.
VIEPL's ratings:
-- Long-Term Issuer Rating: 'IND B+'/Stable; rating withdrawn
-- INR150 million fund-based working capital limits: 'IND A4';
rating withdrawn
VISHAL COATERS: Ind-Ra Withdraws 'BB' Long-Term Issuer Rating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Vishal Coaters
Limited's (VCL) 'IND BB(suspended)' Long-Term Issuer Rating.
The ratings have been withdrawn due to lack of adequate
information. Ind-Ra will no longer provide ratings or analytical
coverage for VCL.
Ind-Ra suspended VCL's ratings on June 23, 2016.
VCL's ratings:
-- Long-Term Issuer Rating: 'IND BB(suspended)'; rating
withdrawn
-- INR2.63 million term loan: 'IND BB(suspended)'; rating
withdrawn
-- INR25 million fund-based limit: 'IND BB(suspended) and
'IND A4+(suspended)'; ratings withdrawn
VISHNU COTTON: CARE Hikes Rating on INR11.55cr LT Loan to BB-
-------------------------------------------------------------
CARE revises/reaffirms the rating assigned to the bank facilities
of Vishnu Cotton Mills Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 11.55 CARE BB-; Stable
Revised from CARE B+
Short term Bank Facilities 6.16 CARE A4 Reaffirmed
Rating Rationale
The revision in the rating assigned to the bank facilities of
Vishnu Cotton Mills Limited (VCML) is on account of improvement
in profitability margins leading to improved cash profit and
improvement in its debt coverage indicators in FY16.
However, the rating continues to remain constrained by its
moderate scale of operations, moderate capacity utilization,
dependence of raw material prices on government policies and its
exposure to agro-climatic risks, labour intensive nature of the
industry and working capital intensive nature of its business.
The aforesaid constraints are partially offset by the company
being part of four star group, its experienced management team,
satisfactory track record of operation and continuous support
from promoters in the form of fund infusion.
Going forward, ability of the company to improve its scale of
operations along with improvement in profitability margins and
effective management of working capital will be the key rating
sensitivities.
Kolkata based Vishnu Cotton Mills Ltd (VCML); incorporated on
April 21, 1994 by Mr. Pran Krishna Dey has commenced operations
since May, 1994. Since its inception, VCML has been engaged in
manufacturing of cotton yarn with its manufacturing facility
located at Barasat, West Bengal with an aggregate installed
capacity of 4200 metric ton per annum (MTPA). Presently, the
company has 36864 spindles in its manufacturing unit and
manufactures 30s to 40s count yarn.
The company caters to domestic as well as international markets.
Apart from this, VCML is also engaged in fabric dyeing and
bleaching services which accounted for 18.44% of total operating
income for FY16 (13.71% in FY15).
VCML was taken over by the Four Star Group of Kolkata in June
2013. The group was set up by Mr. Ashish Kumar Saha and his
brother, Mr. Samir Kumar Saha, in 1997. The group has various
companies or firm which are engaged in manufacturing of knitted
fabric, dyeing and bleaching services, export of cotton and yarn
and redistribution stockiest business of Hindustan Unilever Ltd.
Presently, VCML is managed by Mr. Ashish Kumar Saha (Director)
having about two decades of experience in same line of business.
He is also supported by Mr. Samir Kumar Saha and other three
directors who are also having about two decades of experience in
this business.
During FY16, the company reported a total operating income of
INR75.49 crore (INR86.60 crore in FY15) and a PAT of INR1.33
crore (INR1.18 crore of net loss in FY15). The gross cash accrual
of the company was INR3.13 crore in FY16 (INR1.23 crore in FY15).
Furthermore, the company has achieved a total operating income of
INR41.47 crore during H1FY17 (refers to the period April 1 to
September 30).
YADU SUGAR: Ind-Ra Withdraws 'B' Long-Term Issuer Rating
--------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Yadu Sugar
Limited's 'IND B' Long-Term Issuer Rating. The Outlook was
Stable. The agency has also withdrawn the Long-term 'IND B'
rating, which had a Stable Outlook, and the 'IND A4' rating on
the company's INR1,020 million fund-based working capital limits.
The ratings have been withdrawn due to lack of adequate
information. Ind-Ra will no longer provide ratings or analytical
coverage for the company.
ZKL BEARINGS: Ind-Ra Withdraws 'BB+' Long-Term Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn ZKL Bearings
(India) Private Limited's (ZKLBIPL) 'IND BB+' Long-Term Issuer
Rating. The Outlook was Stable. The agency has also withdrawn
the 'IND A4+' rating on the company's INR150 million non-fund-
based working capital limit.
The ratings have been withdrawn due to lack of adequate
information. Ind-Ra will no longer provide ratings or analytical
coverage for ZKLBIPL.
===============
M A L A Y S I A
===============
1MALAYSIA DEVELOPMENT: Appoints Parker Randall as New Auditor
-------------------------------------------------------------
Anisah Shukry at Bloomberg News reports that 1Malaysia
Development Bhd. has appointed a new auditor almost a year after
Deloitte LLP notified the state investment company that it
planned to resign.
Parker Randall has already started auditing some of the
subsidiaries of 1MDB, the fund's board of directors Chairman
Mohd. Irwan Serigar Abdullah told reporters on Jan. 5,
Bloomberg relates. 1MDB said a Malaysian unit of Parker Randall
was hired.
1MDB said in July that Deloitte is resigning and the company is
seeking a replacement, without giving a reason for the departure,
Bloomberg recalls. It also said then that its audited financial
statements for 2013 and 2014 shouldn't be relied on after U.S.
prosecutors said more than $3.5 billion was misappropriated from
the fund during a period that included those years, says
Bloomberg.
Parker Randall International described itself on its website as a
worldwide organization of independent audit and accounting firms,
with representatives in 50 countries and about 2,000 partners and
employees.
1MDB had said previously that it couldn't file its accounts for
the financial year ended March 2015 because it wasn't able to
prepare statements for audit as necessary documents were seized
by authorities during a raid in July 2015, according to
Bloomberg. Its previous auditors include KPMG and Ernst & Young,
according to transcripts from a Malaysian parliamentary committee
investigation, Bloomberg discloses.
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.
====================
N E W Z E A L A N D
====================
SHANTON FASHION: Shuts Up Last 8 Stores in Fielding
---------------------------------------------------
Paul Mitchell at Stuff.co.nz reports that Shanton Fashion shut up
shop in Feilding on Jan. 6, as the women's fashion chain went out
of business.
According to the report, the troubled chain finally fell after
being placed in receivership, for the third time in four years
this September, and the remaining eight stores will close.
It's the second time, under two different owners, the four
employees at the Fielding store have faced losing their jobs. But
there is no sign of a reprieve this time, Stuff.co.nz says.
Stuff.co.nz says Auckland company Revolucija bought the chain out
of administration in February 2015, after the last time it went
into liquidation the June before, owing creditors NZ$7.8 million.
Shanton was briefly resurrected, with only 13 of its former 37
stores nationwide. The last eight of those stores will be closed
by Jan. 9, the report notes.
After the 2015 reprieve, two workers at the store, Jo Moss and
Julie Ferguson, told Stuff the sense of limbo had been an
emotional rollercoaster. But the kindness and support of
customers and the community helped get them through.
"We had only been open five months when they said we were
closing," the report quotes Moss as saying at the time. "Because
we had done so well, we were allowed to remain open. We were
trying to be positive and the customers really kept us up."
Shanton Fashion is a New Zealand-based clothing chain.
*********
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 2017. 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 ***