/raid1/www/Hosts/bankrupt/TCRAP_Public/170710.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, July 10, 2017, Vol. 20, No. 135
Headlines
A U S T R A L I A
KENTHURST CONSTRUCTION: Second Creditors' Meeting Set for July 14
LPH DEVELOPMENTS: Second Creditors' Meeting Set for July 11
MALEK FAHD: Federal Court Orders Release of AUD6.5-Mil. Funding
MOSCOU HOLDINGS: Second Creditors' Meeting Set for July 11
PREVEU LIMITED: First Creditors' Meeting Set for July 14
SG CAPRICORN: First Creditors' Meeting Set for July 17
SOUTH HEAD: Second Creditors' Meeting Set for July 14
SYDNEY PROJECT: Owes AUD97 Million to Creditors, Court Hears
VIOLEO PTY: First Creditors' Meeting Set for July 17
VISIBLE TEMPORARY: First Creditors' Meeting Set for July 17
I N D I A
AVIAN TECHNOLOGIES: CRISIL Reaffirms B- Rating on INR3.26MM Loan
BALAJI POLYSACKS: CRISIL Reaffirms 'D' Rating on INR10MM Loan
C P ISPAT: CRISIL Reaffirms 'D' Rating on INR12MM Cash Loan
CASVA TILES: CRISIL Raises Rating on INR6.80MM Term Loan to B+
E C BOSE: CRISIL Reaffirms 'D' Rating on INR5.5MM Cash Loan
EXCEL TIMBERS: CRISIL Reaffirms 'D' Rating on INR7MM Loan
FOCUS COMTRADE: CRISIL Reaffirms B+ Rating on INR3.5MM LT Loan
G.V.D. TEXTILES: CRISIL Lowers Rating on INR10.6MM Loan to 'B'
GREEN AGRO: CRISIL Reaffirms 'D' Rating on INR7.65MM Loan
M. R. WEAVING: CRISIL Reaffirms 'B' Rating on INR2.5MM Loan
MA AMBA: CRISIL Assigns B- Rating to INR9MM Cash Loan
MAA SARADESWARI: CRISIL Reaffirms 'B' Rating on INR6.02MM Loan
MITTAL UNICOT: CRISIL Raises Rating on INR6MM Cash Loan to BB-
MODERN STAGE: CRISIL Reaffirms 'B' Rating on INR4.05MM Cash Loan
OCTAL SALES: Ind-Ra Migrates Issuer Rating to B Non-Cooperating
OVERSEAS LEATHER: CRISIL Reaffirms B Rating on INR3.23MM Loan
P.S.R. GRANITES: CRISIL Reaffirms B+ Rating on INR0.75MM Loan
PAGODA STEELS: CRISIL Reaffirms D Rating on INR12MM Cash Loan
PALATHRA CONSTRUCTIONS: CRISIL Assigns B+ Rating to INR25MM Loan
PELICAN INT'L: CRISIL Reaffirms D Rating on INR18.78MM Loan
PKPN SPINNING: CRISIL Cuts Rating on INR32.54MM Cash Loan to B
PRECISION OPERATIONS: CRISIL Reaffirms B+ Rating on INR3MM Loan
RADHA RUKMANI: CRISIL Reaffirms 'D' Rating on INR5MM Cash Loan
RATHI PACKAGING: CRISIL Assigns B+ Rating to INR3.4MM Term Loan
RAVISUM PROCESSING: CRISIL Assigns B- Rating to INR9MM Cash Loan
RUDRA ENTERPRISES: CRISIL Cuts Rating on INR6.5MM Loan to 'B'
SARAL HOME: Ind-Ra Lowers Bank Loan Rating to BB+/Stable
SHIVANI TRENDZ: Ind-Ra Rates BB Issuer Rating, Outlook is Stable
SHREE SHYAM: CRISIL Lowers Rating on INR3.34MM Term Loan to 'B'
SMART CONTROLS: CRISIL Lowers Rating on INR3.8MM Loan to 'B'
SRI VINAY: Ind-Ra Assigns B Issuer Rating, Outlook is Stable
TRADING ENGINEERS: Ind-Ra Assigns B+ Rating, Outlook Still Neg.
VAISHNODEVI OIL: CRISIL Ups Rating on INR8.5MM Cash Loan to BB-
VELATAL SPINNING: CRISIL Cuts Rating on INR33.8MM Loan to B+
VENKHATASRINIVASA: CRISIL Cuts Rating on INR0.4MM Loan to B
VIDEO PLAZA: CRISIL Lowers Rating on INR4.05MM Cash Loan to 'B'
WHITE LOTUS: CRISIL Lowers Rating on INR10.45MM Loan to 'D'
YOGESHWARI PETRO: CRISIL Reaffirms B Rating on INR3MM Cash Loan
ZUBERI ENGINEERING: CRISIL Reaffirms B+ Rating on INR8MM Loan
J A P A N
ARTLAND INC: Shuts Down Operations; Has JPY298MM Debt
SOFTBANK GROUP: S&P Gives B+ Issue Rating on New Resettable Notes
TAKATA HOLDINGS: Chapter 11 Proceedings Recognized in Canada
M A L A Y S I A
BERJAYA MEDIA: Falls Under PN17 Category Following Losses
S O U T H K O R E A
KUMHO TIRE: Creditors Offer Final Concessions Over Brand Dispute
- - - - -
=================
A U S T R A L I A
=================
KENTHURST CONSTRUCTION: Second Creditors' Meeting Set for July 14
-----------------------------------------------------------------
A second meeting of creditors in the proceedings of Kenthurst
Construction Pty Ltd has been set for July 14, 2017, at
9:30 a.m., at Hyatt Regency, King Room 1, 161 Sussex Street, in
Sydney, NSW.
The purpose of the meeting are (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by July 13, 2017, at 4:00 p.m.
Ozem Kassem, Mark Hutchins and Alan Walker of Cor Cordis
Chartered Accountants were appointed as administrators of
Kenthurst Construction on March 27, 2017.
LPH DEVELOPMENTS: Second Creditors' Meeting Set for July 11
-----------------------------------------------------------
A second meeting of creditors in the proceedings of LPH
Developments Pty Ltd has been set for July 11, 2017, at
11:00 a.m., at Conference Room Level 4, 16 St Georges Terrace, in
Perth, WA.
The purpose of the meeting are (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by July 10, 2017, at 5:00 p.m.
Cameron Shaw and Richard Albarran of Hall Chadwick were appointed
as administrators of LPH Developments on June 29, 2017.
MALEK FAHD: Federal Court Orders Release of AUD6.5-Mil. Funding
---------------------------------------------------------------
Sam Buckingham-Jones at The Australian reports that Australia's
largest Islamic School, Sydney's Malek Fahd, has been thrown a
temporary lifeline after successfully forcing the federal
government to release AUD6.5 million that had been withheld since
a funding dispute in April.
The Australian relates that spite the school being deemed "non-
compliant" with Commonwealth funding legislation, a Federal Court
judge on July 6 ruled the funds be released on strict conditions.
Malek Fahd Islamic School, which has 2,342 students and 231
staff, has been mired in controversy since it was revealed the
peak national body representing Muslims - the Australian
Federation of Islamic Councils (AFIC) - had allegedly been
stripping tens of millions of dollars from the school's accounts,
according to The Australian.
In April, the school was notified its monthly payments of around
AUD1.6 million from the Commonwealth would be delayed, with the
government citing concerns over the school's governance and
accountability arrangements, the report recalls.
The Australian relates that the school's board said it would be
forced to close after June 30 unless funding was restored, and on
June 29 it lodged a last-ditch appeal.
After a hearing on July 4, Justice John Griffiths on July 6 ruled
that while the school had a "troubled history", its situation had
"considerable urgency," the report relays.
He said the school must lodge monthly expense reports to the
government and must keep the Commonwealth funds separate from its
other accounts, says The Australian.
"Closure of the school, which is imminent if funding is not
restored, is bound to have significant effect on the students,"
the report quotes Justice Griffiths as saying. "As well as their
parents and guardians and the teaching and other staff at the
school who will have to search elsewhere for employment."
The Australian relates that Dr John Bennett, the chair of Malek
Fahd's board, said the decision was a welcome one.
"There are very wide smiles," The Australian quotes Mr. Bennett
as saying. "We will be able to operate during term three. It
alleviates a lot of stress . . . as you can imagine there has
been a lot of anxiety from the school community. But we were
hopeful, we've always been hopeful."
According to the report, the federal government announced it
would stop funding the school in February last year, but
continued while the Malek Fahd appealed the decision. The
Administrative Appeals Tribunal upheld the government's funding
cuts and the school appealed the AAT's decision to the Federal
Court. A decision in the Federal Court appeal is yet to be
delivered, the report notes.
In a separate action in the NSW Supreme Court, Malek Fahd is
suing AFIC for up to AUD45m it alleges was stripped from its
accounts through inflated rent, interest-free loans and
gratuitous payments since 2000, The Australian reports.
During the 15 years from 2000, the school received more than
AUD184 million in federal and AUD45.5 million in state funding,
but it has been alleged AFIC used the money to fund the expansion
of its Islamic school system, the report says.
According to The Australian, the federal government said the
decision was a temporary one and did not impact the department's
decision in February last year to revoke the authority
responsible for the school.
"The department considers that the authority for Malek Fahd
Islamic School remains non-compliant with the Australian
Education Act 2013 and has defended the 8 February 2016 decision
accordingly," the report quotes a spokesman for the Department of
Education and Training as saying.
"While the Federal Court considers these matters, the department
is committed to working with the NSW Department of Education to
minimise the impact on staff and students."
MOSCOU HOLDINGS: Second Creditors' Meeting Set for July 11
----------------------------------------------------------
A second meeting of creditors in the proceedings of Moscou
Holdings Pty Ltd has been set for July 11, 2017, at 11:00 a.m.,
at Conference Room, Plaza Level, BGC Centre, 28 The Esplanade, in
Perth, WA.
The purpose of the meeting are (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by July 10, 2017, at 4:00 p.m.
Cliff Rocke and Jeremy Joseph Nipps of Cor Cordis were appointed
as administrators of LPH Developments on June 6, 2017.
PREVEU LIMITED: First Creditors' Meeting Set for July 14
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Preveu
Limited will be held at the offices of Oldhams Advisory,
Level 20, 300 Queen Street, in Brisbane, Queensland, on July 14,
2017, at 11:30 a.m.
Christopher John Palmer of O'Brien Palmer was appointed as
administrator of Preveu Limited on July 4, 2017.
SG CAPRICORN: First Creditors' Meeting Set for July 17
------------------------------------------------------
A first meeting of the creditors in the proceedings of:
-- SG Capricorn Investments Pty Ltd;
-- New Mangrove Pty Ltd; and
-- Dameng Developments Pty Ltd
will be held concurrently at the offices of KPMG, International
Tower 3, Level 38, 300 Barangaroo Avenue, in Sydney, NSW, on
July 17, 2017, at 3:30 p.m.
Stephen Ernest Vaughan and Guy Edwards of KMPG were appointed as
administrators of SG Capricorn on July 5, 2017.
SOUTH HEAD: Second Creditors' Meeting Set for July 14
-----------------------------------------------------
A second meeting of creditors in the proceedings of South Head &
District Synagogue has been set for July 14, 2017, at 9:00 a.m.,
at Kemp Strang, Level 17, 175 Pitt St, in Sydney, NSW.
The purpose of the meeting are (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by July 12, 2017, at 5:00 p.m.
Anthony Elkerton and Ronald Dean-Willcocks of Dean-Willcocks were
appointed as administrators of South Head on April 26, 2017.
SYDNEY PROJECT: Owes AUD97 Million to Creditors, Court Hears
------------------------------------------------------------
new.com.au reports that a Sydney court has been told that former
deputy Auburn mayor Salim Mehajer held a 5:30 a.m. meeting with
himself to remove the director of two of his companies who
appointed administrators 12 hours later.
According to the report, Mr. Mehajer claimed the administrators
were not validly appointed on June 16 as Kenneth Lee was no
longer a director and had been replaced by his sister Khadijeh
Mehajer.
new.com.au says creditors are seeking more than AUD97 million
from the companies, Sydney Project Group Pty Ltd and S.E.T.
Services Pty Ltd, which only had about AUD32,000 in the bank, the
administrators' lawyer Andre Zahra said on June 27.
He unsuccessfully argued against the granting of an injunction,
which has resulted in the cancellation of a June 28 meeting of
creditors pending a NSW Supreme Court hearing on June 29 about
whether the administrators were validly appointed, according to
new.com.au.
new.com.au relates that Marcus Young SC, for the companies,
referred to the affidavit of Mr Mehajer who said, as the sole
shareholder, he had the meeting with himself 12 hours before
Mr. Lee appointed the administrators.
Justice Paul Brereton asked: "At 5.30 in the morning?".
"It was Ramadan and people have to get up pretty early if they
want to eat breakfast," replied Mr Young.
At the time Mr Lee appointed the administrators, Ms Mehajer was
the director "so the appointment can't stand", he added,
new.com.au relays.
But Mr. Zahra said the administrators relied on checks made with
the Australian Securities and Investments Commission register
before their appointment and immediately after it was made, the
report relays.
new.com.au relates that the administrators had not been notified
of Ms. Mehajer replacing Mr. Lee who apparently was not told
until five days after he appointed the administrators on June 16,
he said.
He added that receivers have already been appointed and had
indicated they supported the appointment of the administrators.
There was no evidence Ms Mehajer had any experience in managing
companies and she was potentially exposing herself to liability
for insolvent trading, he said, new.com.au relays.
"If that is a risk she wants to take, that is a matter for her,"
the judge, as cited by new.com.au, said.
VIOLEO PTY: First Creditors' Meeting Set for July 17
----------------------------------------------------
A first meeting of the creditors in the proceedings of Violeo
Pty. Ltd will be held at the offices of Clifton Hall, Level 3,
431 King William Street, in Adelaide, South Australia, on
July 17, 2017, at 3:00 p.m.
Timothy James Clifton and Daniel Lopresti of Clifton Hall were
appointed as administrators of Violeo Pty on July 6, 2017.
VISIBLE TEMPORARY: First Creditors' Meeting Set for July 17
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of:
* Visible Temporary Fencing (NT) Pty Ltd;
* Visible Temporary Fencing (SA) Pty Ltd;
* Visible Temporary Fencing (QLD) Pty Ltd;
* Visible Temporary Fencing (NSW) Pty Ltd;
* Visible Temporary Fencing (WA) Pty Ltd;
* Visible Temporary Fencing (VIC) Pty Ltd;
* Visible Temporary Fencing (TAS) Pty Ltd;
* Visible Temporary Fencing Australia Pty Ltd; and
* Status Shop Maintenance Pty Ltd
will be held at the offices of Clifton Hall, Level 3, 431 King
William Street, in Adelaide, South Australia, on July 17, 2017,
at 11:00 a.m.
Timothy James Clifton and Simon Richard Miller of Clifton Hall
were appointed as administrators of Visible Temporary on July 5,
2017.
=========
I N D I A
=========
AVIAN TECHNOLOGIES: CRISIL Reaffirms B- Rating on INR3.26MM Loan
----------------------------------------------------------------
CRISIL has been consistently following up with Avian Technologies
(AT) for obtaining information through letters and emails dated
January 24, 2017, and February 13, 2017, among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 2 CRISIL B-/Stable (Issuer Not
Cooperating; Rating
Reaffirmed)
Foreign Letter
of Credit 1.95 CRISIL B-/Stable (Issuer Not
Cooperating; Rating
Reaffirmed)
Long Term Loan 3.26 CRISIL B-/Stable (Issuer Not
Cooperating; Rating
Reaffirmed)
Proposed Long Term
Bank Loan Facility 0.39 CRISIL B-/Stable (Issuer Not
Cooperating; Rating
Reaffirmed)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Avian Technologies. This
restricts CRISIL's ability to take a forward looking view on the
credit quality of the entity. CRISIL believes that the
information available for Avian Technologies is consistent with
'Scenario 1' outlined in the 'Framework for Assessing Consistency
of Information with CRISIL B' category or lower. Based on the
last available information, CRISIL has reaffirmed the rating at
'CRISIL B-/Stable'.
AT, established in 2013-14 (refers to financial year, April 1 to
March 31), is a partnership firm of Mr. Anupkumar D and Ms.
Lakshmi Venkatsubramanian. It is engaged in sheet metal
fabrication and caters to industries such as capital goods,
automotive, and construction equipment. Its plant is in Chennai
and has installed capacity of 150 tonne per month.
BALAJI POLYSACKS: CRISIL Reaffirms 'D' Rating on INR10MM Loan
-------------------------------------------------------------
CRISIL has been consistently following up with Balaji Polysacks
Private Limited (BPPL) for obtaining information through letters
and emails dated January 24, 2017, and February 13, 2017, among
others, apart from telephonic communication. However, the issuer
has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 3 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Cash Credit 10 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Letter of Credit 3 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Standby Letter of
Credit 1 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Term Loan 0.95 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Balaji Polysacks Private
Limited. This restricts CRISIL's ability to take a forward
looking view on the credit quality of the entity. CRISIL believes
that the information available for Balaji Polysacks Private
Limited is consistent with 'Scenario 1' outlined in the
'Framework for Assessing Consistency of Information with CRISIL
B' category or lower. Based on the last available information,
CRISIL has reaffirmed the rating at 'CRISIL D/CRISIL D'.
BPPL, incorporated in 1995 by Mr. Sajjan Kumar Agarwal, Mr.
Sushil Agarwal, and Mr. Naresh Kumar Agarwal, manufactures high-
density polyethylene (HDPE) bags, used primarily in the
fertilizer industry and in packaging grains. The company
commenced commercial production in 2000 and has capacity of 5400
tonne per annum. Its operations are managed by Mr. Sushil
Agarwal.
C P ISPAT: CRISIL Reaffirms 'D' Rating on INR12MM Cash Loan
-----------------------------------------------------------
CRISIL has been consistently following up with C P Ispat Private
Limited (CPIPL) for obtaining information through letters and
emails dated January 24, 2017, and February 13, 2017, among
others, apart from telephonic communication. However, the issuer
has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 0.2 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Cash Credit 12 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Term Loan 7.8 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of C P Ispat Private Limited.
This restricts CRISIL's ability to take a forward looking view on
the credit quality of the entity. CRISIL believes that the
information available for C P Ispat Private Limited is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL B' Rating category or
lower. Based on the last available information, CRISIL has
reaffirmed the rating at 'CRISIL D/CRISIL D'.
CPIPL, incorporated in 2006, manufactures sponge iron. The
company commenced commercial production in July 2009 at its
facility in Durgapur, West Bengal. CPIPL was promoted by the
Kolkata-based Chawla family and was earlier managed by Mr.
Amarjeet Chawla. However, in September 2013, the Chawla family
leased out the plant to the Durgapur-based Jayshree group owned
by Mr. Amit Agarwal and his family. Since September 15, 2013,
operations of the plant have been managed by the Jayshree group.
In February 2014, the Jayshree group entered into an agreement
with the Chawla family to purchase CPIPL with effect from April
2014.
CASVA TILES: CRISIL Raises Rating on INR6.80MM Term Loan to B+
--------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities
of Casva Tiles Private Limited (CTPL) to 'CRISIL B+/Stable' from
'CRISIL B/Stable'; the rating on the short-term facility has been
reaffirmed at 'CRISIL A4.'
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 0.13 CRISIL A4 (Reaffirmed)
Cash Credit 3.00 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Proposed Long Term 2.57 CRISIL B+/Stable (Upgraded
Bank Loan Facility from 'CRISIL B/Stable')
Term Loan 6.80 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
The upgrade reflects ramp-up in, and stabilisation of operations.
During fiscal 2017, sales are estimated at INR17 crore rising
two-fold over the sales in fiscal 2015. Annual topline growth is
likely to be steady at 15-20% with increasing capacity
utilisation and geographical reach. Consequently, yearly cash
accrual of INR2.5-3.0 crore will be sufficient to meet debt
obligation. However, financial risk profile remains constrained
by modest networth and large working capital requirement.
The ratings reflect the company's modest scale of operations,
despite the scale up, in the highly fragmented ceramic tiles
industry and working capital-intensive operations. The ratings
also factor in below average capital structure. These rating
weaknesses are partially offset by the extensive industry
experience of the company's promoters and the proximity of its
manufacturing facilities to raw material and labour sources and
moderate debt protection measures.
Key Rating Drivers & Detailed Description
Weakness
* Modest scale of operations: With estimated sales of INR17 crore
in fiscal 2017, scale remains small in the competitive ceramics
industry.
* Below-average capital structure: Modest equity and low
accretion to reserves led to a subdued networth estimated at INR4
crore as on March 31, 2017. Networth will remain modest over the
medium term. Total outside liabilities to tangible networth ratio
was high at 4.8 times.
* Large working capital requirement: With sizeable gross current
assets of 300 days as on March 31, 2017, operations continue to
working capital intensive.
Strengths
* Extensive experience of promoters: The promoters have been in
the ceramics segment for more than a decade.
* Favourable location of plant: The unit is based in Morbi, which
is India's ceramic tiles hub; this ensures easy availability of
raw material and labour.
* Comfortable debt protection metrics: Interest coverage and net
cash accrual to total debt ratios are estimated at 2.8 times and
0.26 time, respectively, for fiscal 2017.
Outlook: Stable
CRISIL believes CTPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' in case of higher-than-
expected sales, leading to substantial cash accrual, and an
improved working capital cycle. Conversely, the outlook may be
revised to 'Negative' in case of lower-than expected accrual due
to reduced order flows or profitability, or weakening of the
company's financial risk profile, most likely because of a
stretched working capital cycle or larger-than-expected debt-
funded capital expenditure.
Incorporated in 2013, CTPL is promoted by Morbi, Gujarat-based Mr
Arvind Aghara and Mr Chamanlal Aghara. The company produces
digital wall tiles and started commercial operations in July
2014.
During fiscal 2016, the company had profit after tax of INR0.04
crore on sales of INR13.56 crore against loss of INR1.25 crore on
sales of INR9.74 crore in the previous fiscal.
E C BOSE: CRISIL Reaffirms 'D' Rating on INR5.5MM Cash Loan
-----------------------------------------------------------
CRISIL has been consistently following up with E C Bose and Co
Private Limited (ECBPL) for obtaining information through letters
and emails dated January 24, 2017, and February 13, 2017, among
others, apart from telephonic communication. However, the issuer
has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 1 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Cash Credit 5.5 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of E C Bose and Co Private
Limited. This restricts CRISIL's ability to take a forward
looking view on the credit quality of the entity. CRISIL believes
that the information available for E C Bose and Co Private
Limited is consistent with 'Scenario 1' outlined in the
'Framework for Assessing Consistency of Information with CRISIL
B' category or lower. Based on the last available information,
CRISIL has reaffirmed the rating at 'CRISIL D/CRISIL D'.
ECBPL was incorporated in 1851, promoted by the late Mr. Eshan
Chandra Bose, and is currently managed by his family. The company
offers stevedoring and forwarding services, besides other allied
services such as comprehensive shipping and logistical services,
customs clearance, shipping, chartering and freight forwarding,
and warehousing.
EXCEL TIMBERS: CRISIL Reaffirms 'D' Rating on INR7MM Loan
---------------------------------------------------------
CRISIL has been consistently following up with Excel Timbers
Private Limited (ETPL) for obtaining information through letters
and emails dated January 24, 2017 and February 13, 2017 among
others, apart from telephonic communication. However, the issuer
has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 3 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Letter of Credit 7 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Excel Timbers Private Limited.
This restricts CRISIL's ability to take a forward looking view on
the credit quality of the entity. CRISIL believes that the
information available for Excel Timbers Private Limited is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL B' Rating
category or lower. Based on the last available information,
CRISIL has reaffirmed the rating at CRISIL D/CRISIL D.
Based in Kozhikode (Kerala), ETPL primarily trades in timber
logs.
FOCUS COMTRADE: CRISIL Reaffirms B+ Rating on INR3.5MM LT Loan
--------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable/CRISIL A4' ratings on
the bank facilities of Focus Comtrade Private Limited (Focus
Comtrade; a part of the Focus group).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 6 CRISIL A4 (Reaffirmed)
Packing Credit 0.5 CRISIL A4 (Reaffirmed)
Proposed Long Term
Bank Loan Facility 3.5 CRISIL B+/Stable (Reaffirmed)
The rating continues to reflect the small scale of operations,
weak earnings profile and inherent volatility in capital market.
These rating weakness are partially offset by adequate
capitalisation and extensive experience of promoters in broking
business.
Analytical Approach
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of Focus Comtrade and Focus Shares and
Securities Pvt Ltd (Focus Shares). This is because these
entities, together referred to as the Focus group, have
significant synergies, integrated operations, and common
management team. During distress, they will receive timely
financial support through transfer of funds from one entity to
another or promoter funding.
Key Rating Drivers & Detailed Description
Weakness
* Small scale of operations
The group has modest market position in the broking segment, with
market shares of Focus Comtrade and Focus Shares. The market
share of 0.01% in the cash segment for the nine months through
March 2017 dropped from 0.02% in fiscal 2015. The group operates
mainly via franchisees, it only owns eight branches.
* Weak earnings profile
The group has weak earnings profile, with high dependence on
capital market. Focus Comtrade and Focus Shares reported marginal
profit of INR0.2 crore (return on equity [RoE] of 4%) and INR0.3
crore (RoE of 5%), respectively, in fiscal 2017.
* Inherent volatility in capital markets
The volumes and earnings from the broking business depend on the
extent of trading activity in the equity and commodity markets,
which are inherently volatile, as they are driven by economic and
political factors and investor sentiments. Moreover, global
factors influence the fortunes of these markets. With the group
continuing to depend on equity markets for revenue over the
medium term, the business risk profile is expected to remain
susceptible to volatility in equity markets.
Strengths
* Adequate capitalization
The group has adequate capitalisation with adjusted networth of
INR12.5 crore and gearing of 0.1 time as on March 31, 2017 (Rs
12.2 crore and 0.1 time, respectively, a year ago). Networth has
been adjusted for proprietary trading activities. However,
gearing is expected to remain below 1 time.
* Experience of promoter
Benefits from the promoter's experience (over a decade) and a
loyal clientele should continue to support the business risk
profile.
Outlook: Stable
CRISIL believes the Focus group to benefit from experience of
promoter and maintain adequate capitalisation over the medium
term. The outlook may be revised to 'Positive' if market position
and earnings profile improve substantially. Conversely, the
outlook may be revised to 'Negative' if capitalisation weakens or
the company diversifies into unrelated businesses.
Focus Comtrade, incorporated in 1999, executes commodity
derivative broking business. The company also trades and exports
yarn and other products. It is a part of the Focus group of
companies started by Mr Anirudh Baheti, an NRI settled in USA.
Focus Comtrade is a member of Multi Commodity Index (MCX) and
National Commodity & Derivates Exchange Limited (NCDEX).
Focus Shares, incorporated in 2004, executes equity broking. It
is a member of the National Stock Exchange and Bombay Stock
Exchange (equity, debt, and derivatives), and a depository
participant in Central Depository Services Ltd.
Group has reported profit after tax (PAT) of INR0.54 crore on
total income of INR7.4 crore in fiscal 2017 against PAT of
INR0.36 crore on total income of INR8.3 crore in fiscal 2016.
G.V.D. TEXTILES: CRISIL Lowers Rating on INR10.6MM Loan to 'B'
--------------------------------------------------------------
CRISIL has been consistently following up with G.V.D. Textiles
Private Limited (GVD) for obtaining information through letters
and emails dated January 20, 2017 and February 10, 2017 among
others, apart from telephonic communication. However, the issuer
has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 10.6 CRISIL B/Stable (Issuer Not
Cooperating; Downgraded from
'CRISIL B+/Stable')
Term Loan 0.9 CRISIL B/Stable (Issuer Not
Cooperating; Downgraded from
'CRISIL B+/Stable')
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of G.V.D. Textiles Private
Limited. This restricts CRISIL's ability to take a forward
looking view on the credit quality of the entity. CRISIL believes
that the information available for G.V.D. Textiles Private
Limited is consistent with 'Scenario 1' outlined in the
'Framework for Assessing Consistency of Information with CRISIL
B' Rating category or lower. Based on the last available
information, CRISIL has downgraded the rating at 'CRISIL
B/Stable'.
GVD was originally set up as a proprietary concern in 1983; the
firm was reconstituted as a private limited company. GVD,
promoted by Mr. D Krishnamurthy, manufactures cotton yarn.
GREEN AGRO: CRISIL Reaffirms 'D' Rating on INR7.65MM Loan
---------------------------------------------------------
CRISIL has been consistently following up with Green Agro Pack
Private Limited (GAPPL) for obtaining information through letters
and emails dated January 25, 2017, and February 15, 2017, among
others, apart from telephonic communication. However, the issuer
has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Export Bill
Negotiation 5.5 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Long Term Loan 4.5 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Packing Credit 7.65 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Proposed Bill
Discounting Facility 1.35 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Proposed Letter
of Credit 1.00 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Green Agro Pack Private
Limited. This restricts CRISIL's ability to take a forward
looking view on the credit quality of the entity. CRISIL believes
that the information available for Green Agro Pack Private
Limited is consistent with 'Scenario 1' outlined in the
'Framework for Assessing Consistency of Information with CRISIL B
Rating category or lower.' Based on the last available
information, CRISIL has reaffirmed the rating at 'CRISIL D/CRISIL
D'.
GAPPL, incorporated in 1994, processes and exports gherkins. The
company's processing unit is at Davangere (Karnataka). The
company is promoted by Mr. B.M. Deviah.
M. R. WEAVING: CRISIL Reaffirms 'B' Rating on INR2.5MM Loan
-----------------------------------------------------------
CRISIL has been consistently following up with M. R. Weaving
Mills Private Limited (MRW) for obtaining information through
letters and emails dated January 24, 2017, and February 14, 2017,
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 2.5 CRISIL B/Stable (Issuer Not
Cooperating; Rating
Reaffirmed)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of M. R. Weaving Mills Private
Limited. This restricts CRISIL's ability to take a forward
looking view on the credit quality of the entity. CRISIL believes
that the information available for M. R. Weaving Mills Private
Limited is consistent with 'Scenario 1' outlined in the
'Framework for Assessing Consistency of Information with CRISIL
B' Rating category or lower. Based on the last available
information, CRISIL has reaffirmed the rating at 'CRISIL
B/Stable'.
MRW, incorporated in 1997, is a closely held company engaged in
the manufacturing of different qualities of fabric used for
trousers, formal and safari suits. The company is promoted by
members of Agarwal family. The manufacturing facility is located
at Bhilwara, Rajasthan.
MA AMBA: CRISIL Assigns B- Rating to INR9MM Cash Loan
-----------------------------------------------------
CRISIL has assigned 'CRISIL B-/Stable' rating to the bank
facilities of MA Amba Sponge Iron Ltd (MASPIL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 9 CRISIL B-/Stable
The rating reflects MASIL's weak financial risk profile marked by
aggressive capital structure and average debt protection metrics,
modest scale of operation and exposure to volatility in raw
material prices. These weaknesses are partially offset by the
extensive experience of the promoters in the steel industry.
Key Rating Drivers & Detailed Description
Weakness
* Weak financial risk profile: Capital structure is leveraged
with gearing at 3.21 times due to estimated networth of INR6.21
crore, against total debt of INR19.93 crore, as on March 31,
2017. Total outside liabilities to tangible networth (TOLTNW)
ratio weakened further because of creditor funding of raw
materials. Sizeable losses in fiscals 2016 and 2015 eroded
networth. Interest coverage was average estimated at 1.9 times in
fiscal 2017.
* Modest scale of operations: With revenue of INR69.1 crore and
operating margin of 6.2%, in fiscal 2017, scale of operations
remains modest. This restricts benefits associated with economies
of scale.
* Exposure to volatility in raw material prices: Raw material
cost constitutes 90% of the total cost of production; therefore,
volatility in raw material prices can impact profitability.
Strengths
* Extensive experience of promoters: MASIL is promoted by Mr
Dilip Kedia and Mr Rahul Kedia who have over two decades of
experience in the industry. In November 2015, GM Iron and Steel
Co Pvt Ltd took a majority stake in MASIL and the operating
performance of the company has improved post takeover.
Outlook: Stable
CRISIL believes MASIL will benefit from the extensive experience
of its promoters' in the steel industry. The outlook may be
revised to 'Positive' if increase in scale and profitability and
efficient working capital management strengthen financial risk
profile, particularly liquidity. The outlook may be revised to
'Negative' if low operating income and profitability, stretch in
working capital cycle or if significant debt-funded capital
expenditure weakens financial risk profile, especially liquidity.
Incorporated in 2005, MASIL manufactures sponge iron. Its
facility, based in West Bengal, has an installed capacity of 200
tpd (tonnes per day).
For fiscal 2016, MASIL reported net loss of INR7.47 crore on
total sales of INR48.78 crore as against INR15.47 crore and
INR37.33 crore in fiscal 2015.
MAA SARADESWARI: CRISIL Reaffirms 'B' Rating on INR6.02MM Loan
--------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Maa
Saradeswari Heemghar Pvt Ltd (MSHPL) continues to reflect the
company's exposure to intense competition in the West Bengal cold
storage industry and below-average financial risk profile because
of small networth and high total outside liabilities to tangible
networth ratio. These weaknesses are partially offset by the
extensive experience of its promoters.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 6.2 CRISIL B/Stable (Reaffirmed)
Overdraft 0.7 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 3.7 CRISIL B/Stable (Reaffirmed)
Term Loan 4.4 CRISIL B/Stable (Reaffirmed)
Key Rating Drivers & Detailed Description
Weakness
* Vulnerability to delay in payment by farmers because of adverse
market conditions: As part of Government of West Bengal's
initiative to support agriculture, banks extend financial
assistance to farmers storing produce in private cold storages,
against pledge of cold-storage receipts. Cold storage obtains
loans from banks on behalf of farmers and traders and extends it
to them. However, primary responsibility to repay bank loan lies
with cold storages. In case of adverse market trends and decline
in potato prices, farmers do not find it profitable to pay rental
and interest charges along with loan obligation and hence do not
retrieve potatoes from cold storages. Hence, MSHPL's high
operating margin is partially offset by advances given to
farmers.
* Susceptible to regulatory changes and intense competition: The
potato cold storage industry in West Bengal is regulated by the
West Bengal Cold Storage Association. Furthermore, the state has
400 cold storages, leading to intense competition. This
constrains bargaining power of players, who also have to offer
discounts to ensure healthy utilisation of storage capacities.
* Weak financial risk profile
Small scale of operations and low profitability led to a modest
networth of INR2.1 crore as on March 31, 2016. Also, gearing has
remained high in the past three years on account of the inherent
nature of the industry to avail of seasonal cash credit with the
start of the potato season. Debt protection metrics remained
modest, with interest coverage and net cash accrual to total debt
ratios of 1.5 times and 0.05 time, respectively, in fiscal 2016.
Metrics are expected to remain in a similar range over the medium
term due to low accretion to reserves.
Strengths
* Extensive experience of promoters: Presence of over a decade in
the potato trading and cold storage industry has enabled the
promoters to establish relationship with 300 farmers and traders.
Outlook: Stable
CRISIL believes MSHPL will continue to benefit over the medium
term from its promoters' extensive experience. The outlook may be
revised to 'Positive' in case of efficient management of farmer
financing and significant ramp-up in operations and
profitability. The outlook may be revised to 'Negative' if
liquidity is constrained by delays in repayment by farmers,
considerably low cash accrual, or significant debt-funded capital
expenditure.
Incorporated in 2008 and promoted by West Bengal-based Dandapat
family, MSHPL provides cold storage services to potato farmers
and traders, and also trades in potatoes.
The company has reported profit after tax (PAT) of INR0.20 crore
on net sales of INR13.96 crore in 2015-16 as against PAT of
INR0.21 crore on net sales of INR14.04 crore in 2014-15.
MITTAL UNICOT: CRISIL Raises Rating on INR6MM Cash Loan to BB-
--------------------------------------------------------------
CRISIL has upgraded its rating on the bank facilities of Mittal
Unicot Industries (MUI) to 'CRISIL BB-/Stable' from 'CRISIL
B/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 6 CRISIL BB-/Stable (Upgraded
from 'CRISIL B/Stable')
Term Loan 3.25 CRISIL BB-/Stable (Upgraded
from 'CRISIL B/Stable')
The rating upgrade reflects improvement in MUI's business risk
profile marked by significant improvement in the firms' scale of
operations. The scale of operations improved to around INR51
crores in 2016-17 after the firm commencing its operations in
November 2014. The rating upgrade also reflects the improvement
in the liquidity profile of the firm on the back of a material
increase in cash accruals' generation. The improvement in the
cash accruals is backed by the firm improvement in the scale of
operations supported by its stable margins. MUI's working capital
management in the wake of substantial revenue growth will remain
a key rating sensitivity factor affecting revenue growth over the
medium term.
The rating reflects the firm's susceptibility to volatility in
cotton prices and the availability cotton. These rating
weaknesses are partly offset by the extensive experience of the
promoters in the cotton trading business.
Key Rating Drivers & Detailed Description
Strengths
* Partners' extensive experience and established relationship
with suppliers and customers: Even though MUI commenced only in
November 2014, its partners ' the Agarwal and Jain families -
have decades of experience in the cotton industry. The Agrawal
family has been engaged in this business for over ten decades,
through various proprietorship/partnership firms. The business is
being managed by the fourth generation of the Agarwal family
currently. The family has two more partnership firms engaged in
cotton ginning i.e. Mittal Fibers and Mittal Global Cot.
Industries (MGCI; rated CRISIL BB-/Stable) Over the years, this
family has been able to establish healthy relations with
customers. This has helped MUI stabilise operations and market
its products well.
The Jain family also has been part of this industry for over two
decades, as it has been involved in trade of raw cotton. Jain
family's eestablished relation with farmers in Gujarat has
enabled MUI to smoothly procure raw cotton. CRISIL believes that
the extensive experience of partners will continue to help MUI
expand the scale of operations over the medium term.
Weakness
* Susceptibility to volatility in cotton prices and availability
of cotton: MUI derives more than 90 per cent of its revenue from
the sale of cotton leading to high dependence on a single
product, and limited diversity in the product portfolio. Cotton
is an agricultural product, exposed to changes in central
government policies. In 2008-09, the Government of India (GoI)
raised the minimum support price (MSP) of cotton in the range of
30 to 45 per cent, resulting in a mismatch in international and
domestic prices, and adversely impacting the operations of cotton
exporters. GoI also capped the export of cotton bales to 55
crores bales in cotton season from October 2010 to September
2011. Furthermore, during cotton season October 2011 to September
2012, GoI imposed a ban on exports which was subsequently lifted.
Each of these actions has had an adverse impact on MUI's
operations resulting in volatility of cotton prices and
availability of cotton, as indicated by its volatile revenue over
the period and fluctuations in inventory. Given the firm's
limited revenue diversity, any adverse changes in GoI's
regulation regarding cotton will have a significant negative
impact on cotton prices and availability thus affecting MUI's
operations.
CRISIL believes that going forward, MUI's risk management with
respect to cotton price volatility and availability will remain a
key rating sensitivity factor over the medium term
* Small scale of operations in highly fragmented industry: As the
firm commenced operations only since November 2014. The small
scale of operations is reflected in the operating income of
around INR51 crores in 2016-17. Further, the cotton ginning
industry is highly fragmented with presence of large number of
players having small capacities. Low capital and technology
intensity and low differentiation in end product acts as low
entry barriers and hence leads to high industry competition which
in turn limits the pricing power of individual players. CRISIL
believes that the small scale of operations in the highly
competitive and fragmented cotton ginning industry will further
constrain the business risk profile over the medium term.
Outlook: Stable
CRISIL believes MUI will continue to benefit over the medium term
from its partners' extensive experience in the cotton ginning
industry. The outlook may be revised to 'Positive' if the firm
sustains its scale of operations, while improving its working
capital management and capital structure, and maintaining its
profitability. Conversely, the outlook may be revised to
'Negative' if lower-than-expected accrual or a considerable
stretch in the working capital cycle or any large, debt-funded
capex leads to deterioration in the financial risk profile,
particularly liquidity.
MUI was set up as a partnership firm in 2014 by Mr. Prashant
Agrawal and Mr. Nilesh Jain, along with their families. The
Agarwal family owns 75 percent stake in the firm, while the Jain
family owns the rest. MUI commenced operations from November
2014. It is engaged in ginning and pressing of cotton and has a
cotton seed oil extracting unit. It also generates revenue from
sale of cotton seeds, oil and de-oiled cakes.
During 2015-16 (refers to financial year April 1 to March 31),
JTC reported revenues of INR22.40 crore with PAT of INR0.45 crore
as compared to net sales of INR14.22 crores with PAT of INR0.21
crores in 2014-15.
MODERN STAGE: CRISIL Reaffirms 'B' Rating on INR4.05MM Cash Loan
----------------------------------------------------------------
CRISIL has reaffirmed its ratings on the bank facilities of
Modern Stage Service (MSS) at 'CRISIL B/Stable/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 1.75 CRISIL A4 (Reaffirmed)
Cash Credit 4.05 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 0.20 CRISIL B/Stable (Reaffirmed)
The ratings continue to reflect a modest scale of operations and
net worth, and large working capital requirement. These rating
weaknesses are partially offset by the extensive experience of
the partners in the lighting and audio industry, and comfortable
leverage.
Key Rating Drivers & Detailed Description
Weakness
* Modest scale of operations and net worth:
Operating income is estimated to have been around INR32 crore in
fiscal 2017. Around 80% of revenue is derived from projects
undertaken for various government institutions, through a tender
bidding process. Net worth was estimated at around INR10 crore as
on March 31, 2017.
* Large working capital requirement:
Gross current asses were high, estimated at over 400 days as on
March 31, 2017, in line with past trends. The same is due to
debtors of more than 230 days as most of the customers are
government departments, and inventory of around 130 days on
account of lead time required for procurement.
Strengths
* Extensive industry experience of the partners:
The partners have an established track record in the stage
lighting, audio and video space, backed by extensive experience
and engineering know-how that the partners have acquired over the
past seven decades. The firm has provided end-to-end lighting
solutions to over 1000 auditoriums, and other institutions,
thereby establishing a strong relationship with customers and
suppliers.
* Comfortable leverage:
The total outside liabilities to adjusted net worth is estimated
at less than 2 times, as on March 31, 2017.
Outlook: Stable
CRISIL believes MSS will continue to benefit from the extensive
industry experience of its partners. The outlook may be revised
to 'Positive' in case of sustained and significant increase in
revenue and profitability leading to higher cash accrual, and
considerable improvement in working capital management. The
outlook may be revised to 'Negative' if revenue and profitability
decline steeply due to intense competition, or in case of larger-
than-expected debt-funded capital expenditure or a stretched
working capital cycle, leading to deterioration in liquidity.
MSS is a partnership concern established in 1994; operations are
managed by the partners, Mr Varinder Kumar Wadhwa and Mr Davinder
Kumar Wadhwa. The firm installs stage lights, and video and audio
systems for government and private organizations.
Profit after tax (PAT) and operating income were INR0.49 crore
and INR24.08 crore, respectively, for fiscal 2016, against
INR0.32 crore and INR14.86 crore, respectively, for fiscal 2015.
Operating income is estimated at around INR32 crore in fiscal
2017.
OCTAL SALES: Ind-Ra Migrates Issuer Rating to B Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Octal Sales
Private Limited's (Octal) Long-Term Issuer Rating to the non-
cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The ratings will
now appear as 'IND B(ISSUER NOT COOPERATING)' on the agency's
website. The instrument-wise rating action is:
-- INR70 mil. Fund-based working capital limit migrated to
Non-Cooperating Category with IND B(ISSUER NOT COOPERATING)
rating
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
11 May 2016. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 1997, Octal was engaged in the trade of jute; it
is 99.99% owned by Kishanganj Jute Mills Limited. The company is
managed by Mr Sajan Bajaj and its registered office is located in
Chhattisgarh. Since FY17, the company has stopped its trading
activities and is engaged in the mining of stones.
OVERSEAS LEATHER: CRISIL Reaffirms B Rating on INR3.23MM Loan
-------------------------------------------------------------
CRISIL has reaffirmed 'CRISIL B/Stable/CRISIL A4' ratings on the
bank loan facilities of Overseas Leather Goods Company Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Foreign Bill Purchase 3.23 CRISIL B/Stable (Reaffirmed)
Packing Credit 8.16 CRISIL A4 (Reaffirmed)
CRISIL's ratings on the bank facilities of OLG continue to
reflect the company's modest scale of operations in the intensely
competitive leather industry, and geographic concentration in
revenue profile. The ratings also factor in an below average
financial risk profile because of small net worth, high gearing,
and weak debt protection metrics. These weaknesses are partially
offset by the extensive experience of OLG's promoter in
manufacturing leather fashion accessories, and established
relationship with customers.
Key Rating Drivers & Detailed Description
Weakness
* Small scale of operations
Scale of operations remains small, as reflected in revenue of
INR15 crore in fiscal 2017, because of limited capacities in the
highly competitive and fragmented leather goods industry. Though
revenue is expected to increase over the medium term because of
high export demand, small capacities will restrict operations.
* Below-average financial risk profile
Financial risk profile remains below-average because of an
estimated low networth of INR 7 crore as on March 31, 2017. Owing
to moderate profitability, debt protection metrics are expected
to remain weak over the medium term with estimated interest
coverage ratio and net cash accrual to total debt of 1.08 and
0.03 times in fiscal 2017. Financial risk profile is expected to
remain below-average over the medium term due to small networth
owing to low accretion to reserve and high gearing'at 1.75 times
as on March 31, 2017'resulting from dependence on working capital
debt.
Strengths
* Extensive experience of promoter and established customer
relationships
The promoter Mr. Anuj Chatterjee and his family have been in the
leather garments export industry for 30-40 years. The company
manufactures leather accessories and caters to demand from
overseas customers, particularly in Spain and Germany. Benefits
from the promoter's extensive experience and established
relationships with customers and suppliers should support
business risk profile.
Outlook: Stable
CRISIL believes OLG will continue to benefit from the extensive
industry experience of its promoter. The outlook may be revised
to 'Positive' if prudent working capital management and increase
in scale of operations and profitability, lead to high cash
accrual and improve liquidity. The outlook may be revised to
'Negative' if low profitability or substantial working capital
debt or capital expenditure weakens financial risk profile,
particularly liquidity.
Incorporated in 1986, OLG was promoted by Mr Anup Chattopadhyaya.
It mainly manufactures and exports leather fashion accessories at
its unit in Kolkata. The company also manufactures industrial
safety products.
For fiscal 2017, profit after tax (PAT) was INR0.11 crore on net
sales of INR15.09 crore, against a PAT of INR0.12 crore on net
sales of INR14.37 crore for the previous year.
P.S.R. GRANITES: CRISIL Reaffirms B+ Rating on INR0.75MM Loan
-------------------------------------------------------------
CRISIL has reaffirmed its ratings on the bank facilities of
P.S.R. Granites Private Limited (PSRGPL) at 'CRISIL
B+/Stable/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 0.75 CRISIL B+/Stable (Reaffirmed)
Foreign Bill
Negotiation 3.50 CRISIL A4 (Reaffirmed)
Packing Credit 6.25 CRISIL A4 (Reaffirmed)
The rating reflects the PSR group's working capital intensive
nature of operations, exposure to concentration risks in revenue
profile and weak financial risk profile marked by high gearing
and below average debt protection metrics. These rating
weaknesses are partially offset by the promoter's extensive
experience in the granite industry.
Analytical Approach
For arriving at the rating, CRISIL has combined the business and
financial risk profiles of PSRGPL and P.S.R. Granites (PSRG).
This is because both these companies, together referred to as the
PSR group, are under the same management team. Moreover, both
PSRG and PSRGPL have considerable financial linkages with each
other.
Key Rating Drivers & Detailed Description
Weaknesses
* Working capital intensive operations
High credit offered to customers and large inventory have led to
working-capital-intensive operations for the PSR group. As a
result, its gross current assets have been high at 108 days as on
March 31, 2017.
* Revenue concentration risks
The group is exposed to concentration risks in revenue profile as
it mainly supplies granite to the Chinese market, slowdown in
which would adversely affected revenue and profitability as seen
in the past.
* Weak financial risk profile
The gearing is high estimated at 2.84 times as on March 31, 2017.
The Net cash accruals to adjusted debt ratio was weak estimated
at 0.06 times for fiscal 2017.
Strengths
* Promoter's extensive industry experience
The PSR group's promoter, Mr. Palakurthi Sridhar, has been in the
granite industry for over 20 years. He has established relations
with key customers in the export market, resulting in repeat
orders.
Outlook: Stable
CRISIL believes the PSR group will benefit from the promoters'
extensive industry experience. The outlook may be revised to
'Positive' in case of a significant and sustainable increase in
its revenue and profitability, while it improves the capital
structure and liquidity. Conversely, the outlook may be revised
to 'Negative' if there is deterioration in the PSR group's
working capital management resulting in stretched liquidity, or a
considerable decline in revenue and profitability, or if the
group undertakes a large debt-funded capex, weakening its
financial risk profile.
Incorporated in 2007 in Hyderabad, PSRGPL and PSRG mine and
export granite. The PSR group has quarries in Karimnagar
(Telangana), and its operations are managed by Mr. Palakurthi
Sridhar.
Net loss was INR2.5 crore on revenue of INR33.8 crore for fiscal
2016 against net profit of INR2.6 crore on revenue of INR46.1
crore for fiscal 2015.
PAGODA STEELS: CRISIL Reaffirms D Rating on INR12MM Cash Loan
-------------------------------------------------------------
CRISIL has been consistently following up with Pagoda Steels
Private Limited (PSPL) for obtaining information through letters
and emails dated January 24, 2017, and February 14, 2017, among
others, apart from telephonic communication. However, the issuer
has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 12 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Proposed Long Term .59 CRISIL D (Issuer Not
Bank Loan Facility Cooperating; Rating
Reaffirmed)
Term Loan 2.41 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Pagoda Steels Private Limited.
This restricts CRISIL's ability to take a forward looking view on
the credit quality of the entity. CRISIL believes that the
information available for Pagoda Steels Private Limited is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL B' category or
lower. Based on the last available information, CRISIL has
reaffirmed the rating at 'CRISIL D'.
PSPL was established in 2005; in 2012, the Bhavnagar (Gujarat)-
based Patel family took over the company's operations. PSPL is
currently being managed by Mr. Jignesh R Patel. The company
manufactures TMT bars under its brand, Pagoda, at its facility in
Bhavnagar.
PALATHRA CONSTRUCTIONS: CRISIL Assigns B+ Rating to INR25MM Loan
----------------------------------------------------------------
CRISIL has assigned a rating of its 'CRISIL B+/Stable' rating
to the long-term bank facilities of to the facilities of
Palathra Constructions Private Limited (PCPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 25 CRISIL B+/Stable
The rating reflects the company's modest scale of operations with
exposure to risks related to tender-based business and exposure
to intense competition in the civil construction segment. These
weaknesses are partially offset by the extensive experience of
its promoters in the civil construction industry
Key Rating Drivers & Detailed Description
Weakness
* Modest scale of operations and exposure to risk related to
tender-based business: With revenue of about INR9.7 crores,
estimated for fiscal 2017, scale remains small. This restricts
ability to bid for large projects. Turnover is also susceptible
to the quantum of tenders floated and the firm's ability to bid
successfully.
* Susceptibility to intense competition in civil construction
segment: Because of low entry barriers to the civil construction
industry, the firm faces competition from many local and small
unorganised players.
Strength
* Extensive experience of the promoters in the civil construction
industry: The promoters, have been in the construction industry
for over 20 years and has gradually built a strong network with
several government departments in Kerala.
Outlook: Stable
CRISIL believes PCPL will continue to benefit over the medium
term from the extensive experience of its promoters. The outlook
may be revised to 'Positive' if significant improvement in scale
of operations and profitability leads to a better financial risk
profile. The outlook may be revised to 'Negative' if inefficient
working capital management or large, debt-funded capital
expenditure further weakens liquidity and capital structure.
Established in 2013 by Mr. Sony Mathew and his brothers, Mr.
Charles Mathew and Mr. Shibu Mathew, PCPL undertakes civil
construction works in Kerala.
For fiscal 2016, net profit was INR0.43 crore on a net sales of
INR11.92 crore, against INR0.42 crore and INR10.77 crore,
respectively, for fiscal 2015. For fiscal 2017, on provisional
basis, the net sales is reported at INR9.7 crores.
PELICAN INT'L: CRISIL Reaffirms D Rating on INR18.78MM Loan
-----------------------------------------------------------
CRISIL has been consistently following up with Pelican
International Private Limited (PIPL) for obtaining information
through letters and emails dated January 27, 2017 and
February 22, 2017 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit .25 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Letter of Credit 18.75 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Pelican International Private
Limited. This restricts CRISIL's ability to take a forward
looking view on the credit quality of the entity. CRISIL believes
that the information available for Pelican International Private
Limited is consistent with 'Scenario 1' outlined in the
'Framework for Assessing Consistency of Information with CRISIL
B' Rating category or lower. Based on the last available
information, CRISIL has reaffirmed the rating at CRISIL D/CRISIL
D.
PIPL was incorporated in 2005 by Mr. Girish Aggarwal. The company
trades in tyres and mild steel products. The company is based in
Hyderabad, Andhra Pradesh.
PKPN SPINNING: CRISIL Cuts Rating on INR32.54MM Cash Loan to B
--------------------------------------------------------------
CRISIL has been consistently following up with PKPN Spinning
Mills Private Limited (PKPN; part of the PKPN group) for
obtaining information through letters and emails dated
January 23, 2017 and February 13, 2017 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 32.54 CRISIL B/Stable (Issuer Not
Cooperating; Downgraded from
'CRISIL BB+/Stable')
Foreign Bill 14.50 CRISIL B/Stable (Issuer Not
Discounting Cooperating; Downgraded from
'CRISIL BB+/Stable')
Letter of Credit 12.57 CRISIL A4 (Issuer Not
Cooperating; Downgraded from
'CRISIL A4+')
Long Term Loan 3.17 CRISIL B/Stable (Issuer Not
Cooperating; Downgraded from
'CRISIL BB+/Stable')
Proposed Long Term 25.22 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating; Downgraded from
'CRISIL BB+/Stable')
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of PKPN Spinning Mills Private
Limited. This restricts CRISIL's ability to take a forward
looking view on the credit quality of the entity. CRISIL believes
that the information available for PKPN Spinning Mills Private
Limited is consistent with 'Scenario 1' outlined in the
'Framework for Assessing Consistency of Information with CRISIL
B' Rating category or lower. Based on the last available
information, CRISIL has downgraded the rating at 'CRISIL
B/Stable/CRISIL A4'.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of PKPN and its associate concern P.K.
Laxmi Mill India Pvt Ltd (PKLM). This is because the two
companies, together referred to as the PKPN group, are in the
same line of business, have a common management, and have
significant business synergies, including fungible cash flows.
Set up in 1981, PKPN is the flagship entity of the PKPN group,
which is owned and managed by Mr. P K Jayagopal and his family
members. Based in Erode (Tamil Nadu), PKPN manufactures viscose
yarn, blended yarn, and speciality yarn such as lycra and acrylic
yarn. Based in Erode, PKLM manufactures viscose yarn, blended
yarn, and speciality yarn such as lycra and acrylic yarn.
PRECISION OPERATIONS: CRISIL Reaffirms B+ Rating on INR3MM Loan
---------------------------------------------------------------
CRISIL has reaffirmed its ratings on bank facilities of Precision
Operations Systems India Pvt Ltd at 'CRISIL B+/Stable/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 6 CRISIL A4 (Reaffirmed)
Cash Credit 3 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 3 CRISIL B+/Stable (Reaffirmed)
The ratings reflect a modest scale of operations, large working
capital requirement, and exposure to intense competition in the
security equipment trading business. These rating weaknesses are
partially offset by the extensive industry experience of the
promoters.
Key Rating Drivers & Detailed Description
Strengths
* Modest scale of operations and exposure to intense competition:
Revenue is estimated at a modest INR33 crore for fiscal 2017.
Furthermore, the business is largely tender based resulting in
intense competition from other traders in this segment. The
modest scale of operations restricts any benefits associated with
economies of scale.
* Large working capital requirement: Gross current assets were
high, estimated at 424 days, driven by large receivables of 117
days and inventory of 115 days, as on March 31, 2017.
Strengths
* Extensive industry experience of the promoters: The promoters
have been in the security equipment trading business for around
25 years. They are actively involved in the functional areas of
the business.
Outlook: Stable
CRISIL believes POSPL will continue to benefit from the extensive
industry experience of its promoters and established relationship
with customers. The outlook may be revised to 'Positive' if there
is a substantial and sustained increase in revenue and
profitability margins, or continued improvement in working
capital management. 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.
POSPL was established in 1989 by Mr Rajkumar Pandey and Mr Kirit
Manilal Nanani. The company trades in security equipment. It has
an approval from the Ministry of Defence (MOD) for selling such
equipment to MOD, the Ministry of Home Affairs, police
departments, and paramilitary forces. It buys a majority of its
products from Russia, and is the sole distributor of some of its
suppliers in India. The product range includes metal detectors,
bomb detection systems, RDX detectors, bullet-proof equipment,
and bomb suits. The company deals in around 250 items as per
government specifications.
Profit after tax (PAT) was INR0.36 crore on net sales of INR21.04
crore in fiscal 2016, against PAT of INR0.21 crore on net sales
of INR10.61 crore in fiscal 2015.
RADHA RUKMANI: CRISIL Reaffirms 'D' Rating on INR5MM Cash Loan
--------------------------------------------------------------
CRISIL has been consistently following up with Radha Rukmani
Spinners Private Limited (RRSPL) for obtaining information
through letters and emails dated January 23, 2017 and
February 13, 2017 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 5 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
Letter of Credit 5 CRISIL D (Issuer Not
Cooperating; Rating
Reaffirmed)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Radha Rukmani Spinners Private
Limited. This restricts CRISIL's ability to take a forward
looking view on the credit quality of the entity. CRISIL believes
that the information available for Radha Rukmani Spinners Private
Limited is consistent with 'Scenario 3' outlined in the
'Framework for Assessing Consistency of Information with CRISIL
BBB' Rating category or lower. Based on the last available
information, CRISIL has reaffirmed the rating at 'CRISIL D/CRISIL
D'.
Established in 2007, RRSPL trades in yarn and textiles. The
company, based in Mumbai, is promoted by Mr. Pradeep Kumar Goyal.
RATHI PACKAGING: CRISIL Assigns B+ Rating to INR3.4MM Term Loan
---------------------------------------------------------------
CRISIL has assigned 'CRISIL B+/Stable' rating to the long-term
bank facilities of Rathi Packaging Private Limited (RPPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 2.5 CRISIL B+/Stable
Term Loan 3.4 CRISIL B+/Stable
The rating reflects weak financial risk profile because of small
networth and leveraged capital structure and presence in the
intensely competitive packaging industry. These weaknesses are
partly offset by the extensive experience of its promoters and
their funding support.
Key Rating Drivers & Detailed Description
Weaknesses
* Constrained financial risk profile
Small networth and leveraged capital structure constrain
financial risk profile. Gearing is estimated to remain high at
above 3.0 times over the medium term, but improve with build-up
in networth and gradual repayment of term loans. Debt protection
metrics are expected to remain average.
* Intense competition exerts pricing pressure
Intense competition in the polypropylene (PP), high-density poly
ethylene (HDPE) and biaxially -oriented poly propylene (BOPP)
bags and fabric industry exerts pricing pressure on RPPL.
Strength
* Extensive business experience of promoters
RPPL is promoted by MrHarish Rathi, MrDeepeshRathiand
theirfamily, who have over 4 decades of experience in other
industries. This experience has helped them build long-standing
relationships with companies in cement, fertiliser and textile
industries and identify price trends.
Outlook: Stable
CRISIL believes RPPL will benefit from the extensive business
experience of its promoters and their funding support. The
outlook may be revised to 'Positive' if high cash accrual due to
expansion in scale of operations and efficient working capital
management strengthens financial risk profile. The outlook may be
revised to 'Negative' if low accrual or inefficient working
capital management or sizeable debt funded capital expenditure
weakens financial risk profile, especially liquidity.
Incorporated in August 2014, RPPL is engaged in the
manufacturing, stitching, printing and lamination of PP, BOPP and
HDPE bags. Commercial operations are expected to commence from
July 2017.
RAVISUM PROCESSING: CRISIL Assigns B- Rating to INR9MM Cash Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable' rating on the long-
term bank facilities of Ravisum Processing (RP).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 9 CRISIL B-/Stable
Rupee Term Loan 4 CRISIL B-/Stable
The rating reflects modest scale of operations and exposure to
intense competition. Revenue, estimated at INR27 crore in fiscal
2017, is expected to grow significantly over the medium term
backed by the launch of jackets manufacturing in current fiscal
and promoter's extensive experience. Currently, company is into
manufacturing of blankets and carpets.
Liquidity is constrained by working capital intensive operations
reflected in its gross current assets (GCA) of 183 days as on
March 31, 2017. It is supported by cushion in net cash accruals
against the maturing term debt obligation.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operation in fragmented industry: RP's modest
scale is reflected in net sales of INR27 crore in fiscal 2017.
The firm operates in a fragmented industry and faces competition,
which limits its bargaining power. The revenue is expected to
increase over the medium term with the firm starting to
manufacture jackets (it now manufactures blankets and carpets),
but will remain modest given the fragmented nature of the
industry.
* Working capital-intensive operations: Gross current assets have
been high historically, and were at 183 days as on March 31,
2017, mainly because of substantial receivables of 3 months and
large inventory of about 80 days. The receivables are because of
the shipment time involved in delivery of orders and liberal
credit of 30-90 days extended to customers. The firm funds part
of its large working capital requirement through payables.
* Weak financial risk profile: RP had a small networth of INR1.28
crore as on March 31, 2017, because of low accretion to reserves
due to modest profitability and small scale of operations. , .
Total outside liabilities to tangible networth ratio is estimated
at 16.6 times as on March 31, 2017. Debt protection metrics are
however moderate as reflected in its interest coverage and net
cash accruals to adjusted total Debt (NCATD) ratios of 2.5 times
and 0.09 times, respectively, in fiscal 2017.
Strengths
* Extensive experience of the promoters along with established
relationship with suppliers and customers: RP's partners are in
the carpet business for a longer period. Over the years company
has established strong relations with the suppliers and
customers. The partners have gained sound knowledge of carpets
industry, because of their experience as well as active
involvement in all the functional area of the business.
CRISIL believes that RP will continue to benefit from the long-
standing experience of its promoters in the business.
Outlook: Stable
CRISIL believes RP will continue to benefit from its promoter's
extensive industry experience. The outlook may be revised to
'Positive' if larger-than-expected cash accrual and improvement
in working capital management lead to better liquidity. The
outlook may be revised to 'Negative' if revenue and profitability
decline, working capital requirement increases more than
expected, or if the firm undertakes large, debt-funded capital
expenditure, leading to deterioration in its financial risk
profile, particularly liquidity.
Set up in 2010, RP is promoted by Mr. Sidharth Ahlawat and Ms.
Sumitra Ahlawat. The firm, based in Ludhiana, Punjab,
manufactures carpet and blankets.
Book profit and net sales are estimated at INR0.23 crore and
INR27.13 crore, respectively, in fiscal 2017, against a book
profit of INR0.06 crore on net sales of INR8.94 crore in fiscal
2016.
RUDRA ENTERPRISES: CRISIL Cuts Rating on INR6.5MM Loan to 'B'
-------------------------------------------------------------
CRISIL has been consistently following up with Rudra Enterprises
(RER) for obtaining information through letters and emails dated
March 06, 2017 and March 22, 2017 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 6.5 CRISIL B/Stable (Issuer Not
Cooperating; Downgraded from
'CRISIL BB-/Stable')
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Rudra Enterprises. This
restricts CRISIL's ability to take a forward looking view on the
credit quality of the entity. CRISIL believes that the
information available for Rudra Enterprises is consistent with
'Scenario 1' outlined in the 'Framework for Assessing Consistency
of Information with CRISIL B' Rating category or lower. Based on
the last available information, CRISIL has downgraded the rating
at 'CRISIL B/Stable'.
Set up in 2000 as partnership firm, RER trades in home appliances
of the LG brand and in lubricant products for Castrol India Ltd.
RER, based in Ranchi, is promoted by Mr. Varun Pratap Singh, Mr.
Rudra Pratap Singh, Mr. Abhay Pratap Singh, and Mr. Sheo Prasad
Singh, who have over a decade's experience in the industry.
SARAL HOME: Ind-Ra Lowers Bank Loan Rating to BB+/Stable
--------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Saral Home
Finance Limited's (SHFL) bank loans:
-- INR207.55 mil. Bank loans downgraded with IND BB+/Stable
rating
KEY RATING DRIVERS
The downgrade reflects a decline in SHFL's franchise with no loan
disbursements in FY17. The company's loan book almost halved to
INR284.3 million over 1HFY15-1HFY17 (1HFY15: about INR600
million), following the management's decision to run down the
book to achieve the desired operating metrics. The company's
leverage, which peaked at 6.0x in 1HFY15 improved to 3.34x in
H1FY17 (FY16: 3.72x; FY15: 4.56x), following the run down of
portfolio.
However, the improvement in the operating metrics was achieved at
the cost of a significant loss of franchise, with all six
branches remaining non-operative as of May 2017. Moreover,
competition in the segment also intensified with a spurt in new
age housing finance companies in SHFL's area of operations. The
company also witnessed a decline in the number of employees,
along with the key management personnel leaving the company in
the last 12-18 months.
The ratings are also constrained by SHFL's limited funding
sources. It has funding available from five banks and three non-
banking financial companies. However, the company has not
extended or increased lines over FY15-FY17 from any of the
lenders. Additionally, it has not secured National Housing Bank's
(NHB) refinancing lines over FY16-FY17. The management expects to
source the capital shortly along with additional borrowings,
which will help the company to regain its franchise. However,
retracing to earlier levels by starting disbursements will
involve pricing pressures from the competitors and operating
costs.
SHFL's portfolio remains concentrated in Delhi with 47.8%
contribution to the overall portfolio. Despite the company having
presence in five states, there have been no disbursals in any of
the states. The ratings are also constrained by SHFL's modest
systems and processes which need to evolve as and when the
company envisages growth.
However, the ratings are supported by healthy capitalisation of
96.69% capital risk adequacy ratio in 1HFY17 (FY16: 87.82%; FY15:
51.63%) as SHFL's asset qualify under 35% risk weighted assets
bracket.
RATING SENSITIVITIES
Positive: A rating upgrade will depend on a significant
improvement and/or momentum in franchise built up driven by
diversification in funding profile, ability to raise equity while
sustaining a healthy asset quality, profitability and liquidity
profile.
Negative: Further deterioration in franchise resulting in
deterioration in asset quality and/or profitability indicators
and inability to raise incremental funds for asset growth or
refinance the existing funds leading to heavy mismatches in the
maturity profile could lead to a negative rating action.
COMPANY PROFILE
SHFL (formerly Vishwakriya Housing Finance Ltd.) is a public
limited company incorporated in 2000 with the Registrar of
Companies (Regn No.: 55-104956). It is a housing finance company
registered and regulated by the NHB, a wholly-owned subsidiary of
the Reserve Bank of India. SHFL was registered in 2002 by the
NHB, and subsequently issued with permission to raise public
deposits (Certificate of Registration No. 01.0059.04 dated 7
October 2004).
The company's equity is closely held, with two shareholder groups
owning 100% of the company. Its board has six members, comprising
notable individuals retired from the Indian Administrative
Service, as well as young professionals holding law, engineering
and management degrees.
SHIVANI TRENDZ: Ind-Ra Rates BB Issuer Rating, Outlook is Stable
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Shivani Trendz
Private Limited (STPL) a Long-Term Issuer Rating of 'IND BB'. The
Outlook is Stable. Instrument-wise rating actions are:
-- INR160 mil. Fund-based working capital limit assigned
with IND BB/Stable/IND A4+ rating;
-- INR40 mil. Proposed fund-based limit* assigned with
Provisional IND BB/Stable/Provisional IND A4+ rating
* The ratings are provisional and shall be confirmed upon the
sanction and execution of loan documents for the above facility
by STPL to the satisfaction of Ind-Ra.
KEY RATING DRIVERS
The ratings reflect STPL's moderate credit profile and liquidity
position. According to FY17 provisional financials, revenue grew
at a CAGR of 15% to INR1,280.1 million over FY14-FY17 (FY16:
INR1,208.9 million; FY15: INR999.2 million). EBITDA margins
ranged between 1.6% and 2.6% over FY14-FY17 and increased to 2.6%
in FY17P (FY16: 1.7%) on account of increased sales of high
margin embroidered fabrics coupled with a decrease in raw
materials prices. Net leverage (Ind-Ra adjusted net
debt/operating EBITDAR) was 7.7x in FY17P (FY16: 10.1x) and
interest coverage (operating EBITDA/gross interest expense) was
3.2x (3.6x).
The ratings also factor in the company's moderate liquidity
position with around 92% utilisation of fund-based limits during
the 12 months ended May 2017. It had a net working capital cycle
of 75 days in FY17P (FY16: 68 days).
The ratings are also constrained by STPL's customer and
geographic concentration risks with top three customers
contributing around 55% to the total revenue and about 80% of
sales being derived from the United Arab Emirates.
However, the ratings are supported by the promoters around two
decades of experience in the value-added fabric business leading
to established relationships with customers and suppliers.
RATING SENSITIVITIES
Positive: A substantial growth in the revenue and/or EBITDA
margins leading to a sustained improvement in the credit metrics
could lead to a positive rating action.
Negative: A decline in the revenue and/or EBITDA margins leading
to a sustained deterioration in the credit metrics could lead to
a negative rating action.
COMPANY PROFILE
Established in August 2012, STPL exports dyed and printed
fabrics, and value-added embroidered fabrics in over 10
countries. The company's registered office is located in Mumbai
and manufacturing facility in Surat.
SHREE SHYAM: CRISIL Lowers Rating on INR3.34MM Term Loan to 'B'
---------------------------------------------------------------
CRISIL has been consistently following up with Shree Shyam
Texturising - Ahmedabad (SST) for obtaining information through
letters and emails dated March 06, 2017 and March 22, 2017 among
others, apart from telephonic communication. However, the issuer
has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 0.8 CRISIL A4 (Issuer Not
Cooperating; Rating
Reaffirmed)
Cash Credit 1.14 CRISIL B/Stable (Issuer Not
Cooperating; Downgraded
from 'CRISIL B+/Stable')
Term Loan 3.34 CRISIL B/Stable (Issuer Not
Cooperating; Downgraded
from 'CRISIL B+/Stable')
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Shree Shyam Texturising -
Ahmedabad. This restricts CRISIL's ability to take a forward
looking view on the credit quality of the entity. CRISIL believes
that the information available for Shree Shyam Texturising -
Ahmedabad is consistent with 'Scenario 1' outlined in the
'Framework for Assessing Consistency of Information with CRISIL
B' Rating category or lower. Based on the last available
information, CRISIL has downgraded the long term rating at
'CRISIL B/Stable' and reaffirmed the short term rating at 'CRISIL
A4'.
Established in 2015, SST is promoted by Ahmedabad-based Mr.
Pratik Mittal and Mr. Gunjan Mittal. The firm will be supported
by the promoters of the associate entities, which is in the
similar line of business. The firm is established with an
installed capacity of 3,120 metric tonne per annum.
SMART CONTROLS: CRISIL Lowers Rating on INR3.8MM Loan to 'B'
------------------------------------------------------------
CRISIL has been consistently following up with Smart Controls
India Limited (SCIL) for obtaining information through letters
and emails dated January 24, 2017 and February 14, 2017 among
others, apart from telephonic communication. However, the issuer
has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 2 CRISIL B/Stable (Issuer Not
Cooperating; Downgraded from
'CRISIL BB/Stable')
Letter of credit .8 CRISIL A4 (Issuer Not
& Bank Guarantee Cooperating; Downgraded from
'CRISIL A4+')*
Proposed Long Term 3.8 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating; Downgraded from
'CRISIL BB/Stable')
Proposed Term Loan 2.5 CRISIL B/Stable (Issuer Not
Cooperating; Downgraded from
'CRISIL BB/Stable')
Term Loan 0.9 CRISIL B/Stable (Issuer Not
Cooperating; Downgraded from
'CRISIL BB/Stable')
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Smart Controls India Limited.
This restricts CRISIL's ability to take a forward looking view on
the credit quality of the entity. CRISIL believes that the
information available for Smart Controls India Limited is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL B' category or
lower. Based on the last available information, CRISIL has
downgraded the rating at 'CRISIL B/Stable/CRISIL A4'.
SCIL, incorporated in 2006, provides turnkey solutions for
factory automation as well as IT solutions to varied industries.
Operations are managed by its directors, Mr. Ashutosh
Chincholikar and Mr. Shashikant Lokras. The company's corporate
office is at Gwalior (Madhya Pradesh).
SRI VINAY: Ind-Ra Assigns B Issuer Rating, Outlook is Stable
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Sri Vinay Agro
Rice Industries (SVARI) a Long-Term Issuer Rating of 'IND B'. The
Outlook is Stable. The instrument-wise rating actions are:
-- INR41.3 il. Term loans due on December 2023 assigned with
IND B/Stable rating; and
-- INR45.0 mil. Fund-based facilities assigned with
IND B/Stable/IND A4 rating
KEY RATING DRIVERS
The ratings reflect the inception stage of SVARI's commercial
operations which started in April 2017. It is engaged in the
processing of rice and rice products.
According to the management, the firm recorded revenue of INR56.6
million till 15 June 2017 and is expected to earn INR250 million
for FY18.
The ratings, however, are supported by SVARI's comfortable
liquidity position with its fund-based facilities being utilised
at an average of 71% during the two months ended May 2017. The
ratings are further supported by the partners' experience of two
decades in the trading of rice and other food grains.
RATING SENSITIVITIES
Positive: Stabilisation of operations, leading to strong revenue
generation and profitability will lead to positive rating action.
Negative: Failure to scale up operations, leading to stress on
liquidity will be negative for the ratings.
COMPANY PROFILE
SVARI was incorporated in February 2016. It has a 12,800 tonnes
per annum rice processing unit in Raichur (Karnataka). Mr. U
Veeresh, Mr. Janardhan Reddy, U Thimma Reddy and Mr. U Ravi are
the partners of the firm.
TRADING ENGINEERS: Ind-Ra Assigns B+ Rating, Outlook Still Neg.
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Trading
Engineers (International) Limited's (TEIL) Long-Term Issuer
Rating at 'IND B+'. The Outlook remains Negative. The instrument-
wise rating actions are:
-- INR435 mil. Non-fund-based working capital limits affirmed
with IND B+/Negative/IND A4 rating; and
-- INR492.5 mil. Fund-based working capital limits affirmed with
IND B+/Negative/IND A4 rating
KEY RATING DRIVERS
The Negative Outlook reflects the continued stress in TEIL's
credit profile, despite an improvement in its profitability and
financial profile in FY17. On a provisional basis, TEIL's net
financial leverage was 9.3x in FY17 (FY16: 393x; FY15: 8.1x) and
gross interest coverage was 0.7x (0.02x; 1.1x) with EBITDA
margins of 5.4% (0.3%; 10.4%). Although the EBITDA margin
improved in FY17 due to the subcontracting of a major portion of
the low-margin engineering, procurement, and construction (EPC)
business to Mohan Energy Corporation Pvt Ltd., it remained below
the historical levels of 10%-14% reported over FY13-FY15. The
EBITDA margin declined to nearly 0.3% in FY16 on account of
execution delays and subsequent cost overruns, resulting in
losses in the tower business.
Moreover, TEIL's liquidity position remains tight due to due to
delays in the realisation of receivables and an increase in
inventory holding period on account of delays in the execution of
orders. Working capital cycle stretched to 290 days in FY16
(FY15: 267 days; FY14: 265 days) and utilisation of the fund-
based working capital facilities was nearly full over the 12
months ended May 2017. Debtors outstanding for more than six
months were about 25% of the total debtors as on 31 March 2017.
The rating affirmation reflects Ind-Ra's expectation of an
improvement in TEIL's liquidity and credit profile beyond FY18
with the company exiting the EPC and tower businesses. The
company has two major EPC contracts from Uttar Pradesh Power
Transmission Corporation Limited, which are likely to be
completed by FY18. Post this, TEIL will not take up any new EPC
and tower contracts. To support TEIL's liquidity, the promoters
infused equity of INR10 million in FY17 and the company expects
them to infuse another INR20 million by December 2017.
Furthermore, TEIL plans to divest its tower manufacturing unit in
Roorkee.
The ratings are also supported by TEIL's over three decades of
experience in the trading and assembly of DG sets.
RATING SENSITIVITIES
Positive: An improvement in the financial performance and lower
working capital requirements leading to an improvement in the
liquidity and credit profiles could lead to a positive rating
action.
Negative: Deterioration in the financial performance along with
higher working capital requirements leading to further
deterioration in the liquidity and credit profile could lead to a
negative rating action.
COMPANY PROFILE
TEIL is an associate company of Unitech Machines Limited. It was
formed as a partnership firm in 1949 and was incorporated in 1972
as a limited liability company. The company was taken over by
Unitech Machines Group in 2001. TEIL has a fully integrated
manufacturing facility for DG sets of up to 2,000kVA in
Bhagwanpur, Uttarakhand. The total capacity of the plant is to
manufacture 13,000 DG sets and 36,000MT of towers every year.
VAISHNODEVI OIL: CRISIL Ups Rating on INR8.5MM Cash Loan to BB-
---------------------------------------------------------------
CRISIL has upgraded its rating on the bank facilities of
Vaishnodevi Oil Seeds Processing Industries (VOSPI) to 'CRISIL
BB-/Stable' from 'CRISIL B+/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 8.5 CRISIL BB-/Stable (Upgraded
from 'CRISIL B+/Stable')
Proposed Long 1.5 CRISIL BB-/Stable (Upgraded
Term Bank Loan from 'CRISIL B+/Stable')
Facility
The upgrade reflects CRISIL belief that the business and
financial risk profile of the company would be improved over the
medium term marked by improving scale of operations and better
than expected working capital management. In 2016-17, the sales
of the company are estimated to be higher-than-expected at around
INR94 Cr. with stable operating profitability at around 2.5 per
cent. The firm has clocked in y-o-y double digit growth
reflecting the healthy demand of its product. CRISIL believes
that VOSP will maintain its growth momentum over the medium term.
With expectation of improving sales, stable profitability along
with improvement in its operating cycle measured by gross current
assets (GCA) days at around 70 days over the medium term, the
financial risk profile is expected to be supported with firm's
moderate reliance on external debt.
The ratings continue to reflect its promoter's extensive
experience in the edible oil industry and growing albeit moderate
scale of operations. These strengths are partially offset by
below average financial risk profile and susceptibility to
intense competition in the edible oil industry.
Key Rating Drivers & Detailed Description
Strengths
* Promoters extensive experience in the edible oil industry:
VOSPI's promoters have experience of over two decades in the
edible oil industry. The promoter's extensive experience has
helped the firm establish strong relations with customers. CRISIL
believes that VOSPI will continue to benefit from its promoter's
extensive experience in the edible oil industry.
* Growing albeit moderate scale of operations: The firm's
operations grew with 5-year compound average growth rate (CAGR)
of 14 per cent for the year ended as on March 2017. CRISIL
believes the firm's operations are expected to grow at moderate
pace over the medium term.
Weaknesses
* Below average financial risk profile: Its financial risk
profile supported by average networth and gearing (estimated to
be around INR8 Cr. and 1.4 times, respectively, as on March 31,
2017). Its debt protection metrics are expected to be moderate
with interest coverage of 2-3 times and net cash accrual to total
debt of 0.08-0.10 times in 2016-17. The financial risk profile is
expected to continue to be below average over the medium term.
* Susceptibility to intense competition in the edible oil
industry: The edible oil industry in India is marked by intense
fragmentation due the presence of a few large players, and
several un-organized players catering to regional demand. CRISIL
believes that VOSPI's operating margin will remain low and
susceptible to intense market competition over the medium term.
Outlook: Stable
CRISIL believes that VOSPI will continue to benefit over the
medium term from its promoters' extensive industry experience.
The outlook may be revised to 'Positive' if the firm increases
its revenue and improves its profitability significantly, while
improving its financial risk profile. Conversely, the outlook may
be revised to 'Negative' in case of deterioration in VOSPI's
financial risk profile, particularly its liquidity, most likely
because of a stretch in its working capital cycle, low accruals,
or large debt-funded capital expenditure (capex).
Set up in 2008, VRS is promoted by Mr. Shaileshbhai Thakkar and
his family. The firm extracts and refines edible oil (mainly
mustard oil from de-oiled cakes) at its plant in Banaskantha
(Gujarat).
VOSPI reported a profit after tax (PAT) of INR48 lakhs on sales
of INR74.2 Cr. for 2015-16, against a PAT of INR37 lakhs on sales
of INR49.3 Cr. for 2014-15.
VELATAL SPINNING: CRISIL Cuts Rating on INR33.8MM Loan to B+
------------------------------------------------------------
CRISIL has been consistently following up with Velatal Spinning
Mills Private Limited (VSMPL) for obtaining information through
letters and emails dated January 19, 2017, and February 9, 2017,
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 6.2 CRISIL B+/Stable (Issuer Not
Cooperating; Downgraded from
'CRISIL BB+/Stable')
Term Loan 33.8 CRISIL B+/Stable (Issuer Not
Cooperating; Downgraded from
'CRISIL BB+/Stable')
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Velatal Spinning Mills Private
Limited. This restricts CRISIL's ability to take a forward
looking view on the credit quality of the entity. CRISIL believes
that the information available for Velatal Spinning Mills Private
Limited is consistent with 'Scenario 1' outlined in the
'Framework for Assessing Consistency of Information with CRISIL
B' Rating category or lower. Based on the last available
information, CRISIL has downgraded the rating at 'CRISIL
B+/Stable'.
VSMPL was set up in 1981 by Mr. Selvaraj, Ms. Sudha, and Mr.
Nallammal. The company manufactures viscose yarn and also has
three windmills with total capacity of 33.5 megawatt. The
manufacturing unit is at Erode, Tamil Nadu.
VENKHATASRINIVASA: CRISIL Cuts Rating on INR0.4MM Loan to B
-----------------------------------------------------------
CRISIL has been consistently following up with VenkhataSrinivasa
Infracon Private Limited (VSIPL) for obtaining information
through letters and emails dated November 11, 2016, and December
13, 2016, among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long Term Loan 0.4 CRISIL B/Stable (Issuer Not
Cooperating; Downgraded from
'CRISIL B+/Stable')
Overdraft 6 CRISIL A4 (Issuer Not
Cooperating; Rating
Reaffirmed)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of VenkhataSrinivasa Infracon
Private Limited. This restricts CRISIL's ability to take a
forward looking view on the credit quality of the entity. CRISIL
believes that the information available for VenkhataSrinivasa
Infracon Private Limited is consistent with 'Scenario 1' outlined
in the 'Framework for Assessing Consistency of Information with
CRISIL B' category or lower. Based on the last available
information, CRISIL has downgraded the Long Term rating to
'CRISIL B/Stable' & Reaffirmed Short Term rating at 'CRISIL A4'.
Incorporated in 2011, VSIPL is a sub-contractor and undertakes
projects in the civil construction segment, primarily earthwork
excavations (in open area, tunnel area, etc). Based in
Visakhapatnam (Andhra Pradesh), VSIPL is promoted by Mr.
Siddareddy Udaya Sridhar Reddy, Mr. Mudi Vikranth Reddy and Mr.
Siddareddy Vijaya.
VIDEO PLAZA: CRISIL Lowers Rating on INR4.05MM Cash Loan to 'B'
---------------------------------------------------------------
CRISIL has been consistently following up with Video Plaza for
obtaining information through letters and emails dated
January 19, 2017, and February 9, 2017, among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 4.05 CRISIL B/Stable (Issuer Not
Cooperating; Downgraded from
'CRISIL BB-/Stable')
Proposed Long Term 2.95 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating; Downgraded from
'CRISIL BB-/Stable')
Term Loan 3.00 CRISIL B/Stable (Issuer Not
Cooperating; Downgraded from
'CRISIL BB-/Stable')
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Video Plaza. This restricts
CRISIL's ability to take a forward looking view on the credit
quality of the entity. CRISIL believes that the information
available for Video Plaza is consistent with 'Scenario 1'
outlined in the 'Framework for Assessing Consistency of
Information with CRISIL B rating category or lower. Based on the
last available information, CRISIL has downgraded the rating at
'CRISIL B/Stable'.
Set up in 1989 as a partnership between Mr. Kabi Dutta and Ms.
Rikta Dutta, VP trades in electronic goods, runs a hotel (Citi
Residenci), operates a foreign liquor 'Off' shop and rents out
properties in Durgapur, West Bengal.
WHITE LOTUS: CRISIL Lowers Rating on INR10.45MM Loan to 'D'
-----------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of White Lotus Cotyledon Private Limited (WLCPL) to 'CRISIL D'
from 'CRISIL B+/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 7.05 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Proposed Long Term 10.45 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL B+/Stable')
Term Loan 2.50 CRISIL D (Downgraded from
'CRISIL B+/Stable')
The rating downgrade reflects instances of over utilisation of
cash credit for more than 30 days and delays in servicing debt.
The delays have been caused by weak liquidity and stretch in
working capital cycle.
Key Rating Drivers & Detailed Description
Weakness
* Weak financial risk profile: Financial risk profile is weak,
with small networth, high total outside liabilities to adjusted
networth (TOLANW) ratio, and below-average debt protection
metrics.
* Modest scale of operations in a highly fragmented industry: The
company is engaged in ginning and pressing of raw cotton and its
scale of operation is expected to remain modest on account of
high fragmentation.
Strengths
* Extensive experience of promoters: The promoter family has been
engaged in cotton trading, commission and ginning activities for
more than 100 years. Their experience in trading of lint and
cotton seeds has resulted in established supplier and clientele
base.
LCPL, established by Shah family in Aurangabad (Maharashtra), is
engaged in ginning and pressing of raw cotton. The company's
unit, located at Vaijapur in Aurangabad, has a manufacturing
capacity of 1500 quintals per day.
Profit after tax (PAT) was INR1 crore on net sales of INR32.48
crore in fiscal 2016, against INR0.04 crore and INR20.20 crore in
fiscal 2015.
YOGESHWARI PETRO: CRISIL Reaffirms B Rating on INR3MM Cash Loan
---------------------------------------------------------------
CRISIL has been consistently following up with Yogeshwari Petro
Chemicals Private Limited (YPPL) for obtaining information
through letters and emails dated January 19, 2017, and
February 9, 2017, among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 2 CRISIL A4 (Issuer Not
Cooperating; Rating
Reaffirmed)
Cash Credit 3 CRISIL B/Stable (Issuer Not
Cooperating; Downgraded
from 'CRISIL B+/Stable')
Proposed Long Term 2 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating; Downgraded
from 'CRISIL B+/Stable')
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Yogeshwari Petro Chemicals
Private Limited. This restricts CRISIL's ability to take a
forward looking view on the credit quality of the entity. CRISIL
believes that the information available for Yogeshwari Petro
Chemicals Private Limited is consistent with 'Scenario 1'
outlined in the 'Framework for Assessing Consistency of
Information with CRISIL B rating category or lower. Based on the
last available information, CRISIL has downgraded the Long term
rating to 'CRISIL B/Stable' and reaffirmed short term rating at
'CRISIL A4'.
YPPL was incorporated in 2003 by Mr. Shrikant Patil and family.
The company manufactures Ethanol from rectified spirit which has
applications in petroleum industry for blending with petrol. YPPL
currently has installed capacity of 30,000 litres per day and it
commenced commercial operations from March 2015.
ZUBERI ENGINEERING: CRISIL Reaffirms B+ Rating on INR8MM Loan
-------------------------------------------------------------
CRISIL has been consistently following up with Zuberi Engineering
Company (ZEC) for obtaining information through letters and
emails dated November 09, 2016 and December 15, 2016 among
others, apart from telephonic communication. However, the issuer
has remained non cooperative.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 40 CRISIL A4 (Issuer Not
Cooperating; Rating
Reaffirmed)
Cash Credit 8 CRISIL B+/Stable (Issuer Not
Cooperating; Rating
Reaffirmed)
Inland/Import 5 CRISIL A4 (Issuer Not
Letter of Credit Cooperating; Rating
Reaffirmed)
The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Zuberi Engineering Company.
This restricts CRISIL's ability to take a forward looking view on
the credit quality of the entity. CRISIL believes that the
information available for Zuberi Engineering Company is
consistent with 'Scenario 3' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BBB' Rating
category or lower. Based on the last available information,
CRISIL has reaffirmed the rating at 'CRISIL B+/Stable/CRISIL A4'.
Established in 1987, ZEC is a partnership firm formed by Mr. M Z
Zuberi, Ms. Nasira Zuberi, Mr. Adil Zuberi, Mr. Iqbal Hussan, Mr.
Irfan Hussan, Mr. Moshin Khan and Ms. Annie Zuberi. ZEC, based in
Jaipur (Rajasthan), is an engineering, procurement and
construction contractor doing civil and mechanical works in the
industrial sector, mainly thermal plants and water supply
management systems.
=========
J A P A N
=========
ARTLAND INC: Shuts Down Operations; Has JPY298MM Debt
-----------------------------------------------------
Kotaku reports that Animation Studio Artland Inc. has closed. The
studio is JPY298 million ($3.4 million) in debt, Kotaku relates,
citing website Teikoku Databank. The studio shut down on
June 30.
According to Kotaku, website TSR reported that Artland has yet to
formally file for bankruptcy and is looking at ways it can sort
out its debts without doing so. The site adds that it's possible
that Artland might be able to continue operations, Kotaku relays.
The studio had racked up deficits and was hoping that a Chinese
animation studio would acquire 51% of its stock to restructure
the company, but that never happened, and Animation Studio
Artland Inc. is now insolvent, Kotaku notes.
Artland Inc. was originally founded in 1978 and did co-production
work on Super Dimension Fortress Macross and Legend of the
Galactic Heroes. However, it's probably best known for the TV
anime Mushishi. The studio did the TV anime version of Senran
Kagura and most recently did the autumn 2017 series Seven Mortal
Sins.
In 2005, Artland became a subsidiary of Marvellous Entertainment.
The animation division was later split off into another company
known as Animation Studio Artland Inc.
SOFTBANK GROUP: S&P Gives B+ Issue Rating on New Resettable Notes
-----------------------------------------------------------------
S&P Global Ratings said that it has assigned its 'B+' issue
rating to proposed undated subordinated resettable notes to be
issued by SoftBank Group Corp. (SoftBank; BB+/Stable/--). S&P
said, "We arrive at our 'B+' issue rating on the proposed
securities by notching down from our 'BB+' long-term corporate
credit rating on SoftBank. The three-notch differential reflects
our notching methodology, whereby we deduct two notches for
subordination of the securities and one additional notch for the
issuer's option to defer interest payments.
"We classify the proposed securities as having intermediate
equity content until 2023 for the NC6 note, which is callable
after six years, and until 2027 for the NC10 note, which is
callable after 10 years. The hybrid securities' characteristics--
the option to defer interest payments at the company's
discretion, sufficient permanence until the date we regard as the
effective redemption date, and subordination in liquidation or
bankruptcy proceedings--meet our standards for intermediate
equity content of hybrid capital instruments."
The completion and size of the issue will be subject to market
conditions. Proceeds will be applied to general corporate
purposes including investment in SoftBank Vision Fund. S&P said,
"We classify the proposed hybrid securities as having
intermediate equity content, and we regard half of the issue
amount as debt and the other half as equity. As a result, we
consider major financial ratios for the company will remain
commensurate with our current rating."
KEY FACTORS IN S&P'S ASSESSMENT OF THE PROPOSED INSTRUMENTS'
DEFERABILITY
SoftBank retains the option to defer interest payments on the
proposed securities. Any outstanding deferred interest is
cumulative and will be settled in cash if SoftBank pays a
dividend on its stocks or interest on debt that is pari passu
with the securities. However, this condition will not affect
S&P's equity content categorization of the securities under its
criteria. The proposed securities do not have a look-back period,
during which the company is prohibited from deferring interest
payments on the securities if it pays a dividend on its stocks or
interest on debt that is pari passu with the securities.
KEY FACTORS IN S&P'S ASSESSMENT OF THE PROPOSED INSTRUMENTS'
PERMANENCE
These hybrid securities are undated. However, the NC6 note will
become callable in six years and the NC10 note will become
callable in 10 years. In addition, the interest rate applicable
to the hybrid securities will increase 25 basis points (bps) in
2023 (year six) for the NC6 and in 2027 (year 10) for the NC10.
The interest rate will increase an additional 75 bps in 2038
(year 21) for NC6 and in 2042 (year 25) for NC10. S&P said,
"Because we consider the cumulative 100-bp step-up for the
securities as material under our criteria, we believe the step-up
provides an incentive for SoftBank to call the securities on the
respective second step-up dates. Consequently, we will consider
the second step-up dates as the effective maturity dates because
the issuer has not included intent-based replacement provisions
that meet our criteria. We will reclassify the equity content as
minimal when the remaining period to effective maturity for these
hybrid securities shortens to less than 15 years--in six years
for NC6 and in 10 years for NC10--as long as the long-term
corporate credit rating on SoftBank is in the 'BB' rating
category.
"We believe SoftBank adequately positions its hybrid securities
as a form of loss-absorbing capital over the long term. The
company has expressed its intent to replace the securities with
hybrid securities with equivalent or higher equity content if it
redeems the hybrid securities before they mature unless certain
conditions hold true, including that redemption does not result
in deterioration of the company's creditworthiness. In addition,
SoftBank has a record of controlling its financial standing under
stress, in our view, despite its very aggressive growth and
financial strategies. For example, the company has sold material
equity holdings to pursue growth opportunities or to weather
financial difficulties. Considering these factors, we currently
believe the company's financial policy and its intent to
refinance meet our assessment of intermediate equity content. We
assess the hybrid securities as having intermediate equity
content up to 2023 (year six) for NC6 and up to 2027 (year 10)
for NC10 as long as the company sustains its financial policy and
its intention to refinance and our long-term corporate credit
rating remains in the 'BB' rating category. We consider that a
repurchase or call of these hybrid securities or any other hybrid
securities, irrespective of the size, will cause us to question
the company's intention to maintain or replace such hybrid
securities and may negatively affect our assessment of the equity
content of such securities."
KEY FACTORS IN S&P'S ASSESSMENT OF THE PROPOSED INSTRUMENTS'
SUBORDINATION
The proposed securities (and interest) would constitute unsecured
and subordinated obligations of SoftBank.
TAKATA HOLDINGS: Chapter 11 Proceedings Recognized in Canada
------------------------------------------------------------
An initial recognition order and supplemental order have been
issued by the Ontario Court of Justice (Commercial List) pursuant
to Part IV of the Companies' Creditors Arrangement Act (Canada)
that, among other things: (i) recognizes the Chapter 11
proceedings of TK Holdings Inc. et al. as foreign main
proceedings; (ii) recognizes TK Holdings Inc. as the foreign
representative of the Chapter 11 Debtors; (iii) orders a stay of
proceedings in Canada of any action, suit or proceeding against
any Chapter 11 Debtor, among other things; (iv) recognizes
certain orders made in the Chapter 11 proceedings; and (v)
appoints FTI Consulting Canada Inc. as "information officer" in
the Canadian recognition proceedings.
The information officer has established a website at
http://cfcanada.fticonsulting.com/tkholdingsinc/on which it will
post all orders of the Canadian Court made in the Canadian
Recognition Proceedings and all reports of the information
officer filed in the Canadian Recognition Proceedings, among
other things.
Any person who wishes to receive a copy of the recognition orders
or obtain any further information in respect thereof or in
respect of the matters set forth in the notice, should regard to
the website or contact the information officer at:
FTI Consulting Canada Inc.
TD Waterhouse Tower
79 Wellington Street West
Suite 2010, PO Box 104
Toronto, Ontario M5K 1G8
Tel: 416-649-8073
Fax: 416-649-8101
Attention: Jeffrey Rosenberg
Email: tkholdings@fticonsulting.com
Legal counsel for the U.S. Foreign representative is:
McCarthy Tetrault LLP
Suite 5300, TD Bank Tower
Box 48, 66 Wellington Street West
Toronto, ON M5K 1E6
Attention: Heather L. Meredith, Esq.
Eric S. Block, Esq.
Tel: 416-362-1812
Fax: 416-868-0673
Email: hmeredith@mccarthy.ca
eblock@mccarthy.ca
Additional information regarding the Chapter 11 proceedings may
also be accessed by contacting counsel to the Chapter 11 Debtors
in the Chapter 11 proceedings at:
Weil, Gotshal & Manges LLP
767 fifth Avenue
New York, NY 10153
Attention: Marcia L. Goldstein, Esq.
Ronit Berkovich, Esq.
Matthew Goren, Esq.
Tel: 212-310-8214
Fax: 212-310-8007
Email: marcia.goldstein@weil.com
ronit.berkovich@weil.com
matthew.goren@weil.com
About Takata Corp
Japan-based Takata Corporation (TYO:7312) --
http://www.takata.com/en/-- develops, manufactures and sells
safety products for automobiles. The Company offers seatbelts,
airbags, steering wheels, child seats and trim parts.
Headquartered in Tokyo, Japan, Takata operates 56 plants in 20
countries with approximately 46,000 global employees worldwide.
The Company has subsidiaries located in Japan, the United States,
Brazil, Germany, Thailand, Philippines, Romania, Singapore,
Korea, China and other countries.
In May 1995, a voluntary recall in the U.S. affecting 8 million
predominantly Japanese built vehicles made from 1986 to 1991 with
seat belts manufactured by the Takata was conducted. Large
recalls of vehicles due to faulty Takata-made airbags then began
in 2013.
Takata is facing massive costs of recalling 100 million defective
airbag inflators worldwide and lawsuits tied to at least 16
deaths and numerous injuries.
As of May 19, 2015, Takata has already recalled 40 million
vehicles across 12 vehicle brands for defective airbags.
In November 2015, Takata was fined $200 million by U.S. federal
regulators for mishandling the way it recalled its air bag
inflators. The fine is the largest civil penalty in NHTSA
history.
After reaching a deal to sell all its global assets and
operations to Key Safety Systems (KSS) for US$1.588 billion,
Takata and its Japanese subsidiaries commenced proceedings under
the Civil Rehabilitation Act in Japan in the Tokyo District Court
(the "Tokyo Court") on June 25, 2017.
In addition, Takata's main U.S. subsidiary TK Holdings Inc. and
11 of its U.S. and Mexican affiliates each filed voluntary
petitions under Chapter 11 of the Bankruptcy Code (Bankr. D. Del.
Lead Case No. 17-11375) on June 25, 2017.
Nagashima Ohno & Tsunematsu is the counsel in the Japanese
proceedings. Weil, Gotshal & Manges LLP and Richards, Layton &
Finger, P.A., are serving as counsel in the U.S. cases.
PricewaterhouseCoopers is serving as financial advisor, and
Lazard is serving as investment banker to Takata. Ernst & Young
LLP is tax advisor.
Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal
counsel, KPMG is serving as financial advisor, Jefferies LLC is
acting as lead financial advisor while UBS Investment Bank also
provides financial advice to KSS. Prime Clerk is the claims and
noticing agent.
===============
M A L A Y S I A
===============
BERJAYA MEDIA: Falls Under PN17 Category Following Losses
---------------------------------------------------------
The Star Online reports that Berjaya Media Bhd has slipped into
PN17 (Practice Note 17) following its latest quarterly results.
In the fourth quarter ended April 30, BMedia's net loss widened
to MYR14 million against MYR 3.5 million net loss a year ago. Its
revenue for the period rose to MYR 9.07 million from MYR 8.54
million previously, The Star discloses.
For the full financial year ended April 30, BMedia's net loss
stood at MYR21.12 million on revenue of MYR42.7 million, the
report says.
"Based on the unaudited interim financial results of BMedia for
the fourth quarter ended April 30, the shareholders' equity of
BMedia on a consolidated basis of less than MYR40 million
represented 25% or less of its issued capital.
"Hence, BMedia is now regarded as a PN17 company," BMedia said in
a filing with Bursa Malaysia on June 21, The Star relays.
According to The Star, the group, which publishes TheSun
newspaper, is now required to submit a regularisation plan to the
regulators including Securities Commission (SC) within 12 months
from the date of the announcement.
In the event BMedia fails to comply with the obligations to
regularise its condition, all its listed securities will be
suspended from trading on the sixth market day after the date of
notification of suspension by Bursa Securities and delisting
procedures shall be taken against BMedia, subject to BMedia's
right to appeal against the delisting, The Star says.
"BMedia is looking into formulating a regularization plan to
address its PN17 status and will make the necessary announcement
on the regularisation plan in due course," it said.
Berjaya Media Berhad is an investment holding company. The
Company, through its subsidiaries, is engaged in publication,
printing and distribution of daily newspaper. The Company's
segments include investment holding, publishing and others. The
Company's publication, theSun, is read in the market centers of
the Klang Valley, Penang and Johor Bharu, as well as in cities
and towns of Peninsular Malaysia. The Company's publication
publishes news on politics and business, human interest and
governance, entertainment and lifestyle, and sports. theSun also
has an online presence at www.thesundaily.my, where top news of
the day is updated and presented to its readers. The Company
offers theSun through approximately 3,200 sunspots or pick-up
points along morning routes to the workplace, gym, college or
breakfast. The Company's subsidiaries include Sun Media
Corporation Sdn. Bhd. and Gemtech (M) Sdn. Bhd.
====================
S O U T H K O R E A
====================
KUMHO TIRE: Creditors Offer Final Concessions Over Brand Dispute
----------------------------------------------------------------
Yonhap News Agency reports that creditors of Kumho Tire Co. on
July 7 decided to offer final concessions to resolve a dispute
surrounding the usage fee of the Kumho brand between the
tiremaker's parent company and China's Qingdao Doublestar Co.
Yonhap relates that the concessions came after a meeting earlier
in the day with Kumho Tire's creditors, which are led by state-
run Korea Development Bank.
Under the concessions, Qingdao Doublestar is required to pay 0.5
percent of its sales as a brand usage fee to Kumho Asiana Group
for 12 years and six months, according to officials who attended
the meeting, Yonhap relays.
Kumho Asiana must inform creditors of whether it will accept the
concessions or not by July 14.
According to the report, Qingdao Doublestar signed a KRW955
billion (US$827 million) deal in March to acquire a 42-percent
stake in Kumho Tire, but the process of acquisition hit a snag
over how much the Chinese company should pay for the use of the
Kumho brand name.
Yonhap says creditors also gave a "D" grade to the management of
Kumho Tire for a second consecutive year, paving the way for them
to ask the tiremaker to sack its chairman Park Sam-koo.
Kumho Asiana has called for the Chinese company to pay 0.5
percent of its sales to use the name for 20 years, while Qingdao
Doublestar reportedly suggested that it would pay 0.2 percent for
five years, Yonhap discloses.
In offering the final concessions, creditors agreed to give a
financial incentive to the Chinese company for the brand usage
fee, the report says.
Given that Kumho Tire has annual sales of about KRW3 trillion,
the difference of 0.3 percentage point was estimated at some
KRW9 billion, Yonhap relates citing creditor bank officials.
Local creditors, which hold KRW2.2 trillion in Kumho Tire bonds,
could offer the Chinese company an extension on the maturity of
bonds, adds Yonhap.
Kumho Tire was placed under a creditor-led workout program in
2009 after its parent company was hit by a liquidity problem
following its takeover of Daewoo Engineering and Construction Co.
At that time, Kumho Asiana Group Chairman Park Sam-koo was given
a priority option to buy back the tiremaker should the creditors
of Kumho Tire decide to sell the company, according to Yonhap
News Agency.
The creditors signed a deal in April to sell their combined
42.01% stake in the tiremaker to Doublestar for KRW955 billion
(US$831 million), added Yonhap.
*********
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, Psyche A. Castillon, Julie Anne L. Toledo,
Ivy B. Magdadaro 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 Joseph Cardillo at 856-381-8268.
*** End of Transmission ***