/raid1/www/Hosts/bankrupt/TCRAP_Public/190329.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
Friday, March 29, 2019, Vol. 22, No. 64
Headlines
A U S T R A L I A
AULAK PTY: Second Creditors' Meeting Set for April 5
B J SAGGERS: Second Creditors' Meeting Set for April 5
EVELYN ST: First Creditors' Meeting Set for April 8
INSIGHT EDUCATION: First Creditors' Meeting Set for April 4
LA MERANDA: First Creditors' Meeting Set for April 8
NAPOLEON PERDIS: Second Creditors' Meeting Set for April 8
RICHARD GUNNER'S: Second Creditors' Meeting Set for April 8
S3 STAFFING: First Creditors' Meeting Set for April 4
I N D I A
ABT INVESTMENTS: CARE Moves D on INR100cr Debt to Not Cooperating
ARCVAC FORGE: CARE Migrates 'D' Ratings to Not Cooperating
ASUTI TRADING: CARE Migrates 'D' Ratings to Not Cooperating
BHANDARI FOILS: CARE Migrates 'D' Ratings to Not Cooperating
CHAUDHARY INGOTS: CARE Maintains 'D' Rating in Not Cooperating
DHANRAJ SOLVEX: CARE Moves D on INR22.72cr Loans to Not Cooperating
ELECTROMECH MARITECH: CARE Lowers Ratings on INR27.73cr Loans to D
JAI GURUDEV: CARE Moves B+ on INR8.21cr Loans in Not Cooperating
JORABAT SHILLONG: CARE Lowers Ratings on INR816.15cr Loans to D
KOHINOOR FOODS: CARE Migrates 'D' Ratings to Not Cooperating
MAHAMAYA INFRASTRUCTURE: CARE Migrates D Rating to Not Cooperating
MORADABAD BAREILLY: CARE Lowers Ratings on INR1,565.94cr Loans to D
MURLIDHAR RATANLAL: CARE Migrates 'D' Ratings to Not Cooperating
NARSINGH ISPAT: CARE Reaffirms B+ Rating on INR11.50cr Loan
NEMCARE HOSPITAL: CARE Lowers Rating on INR15cr LT Loan to D
PARASHAR COKE: CARE Moves D on INR74cr Loans to Not Cooperating
S. M. AUTOSTAR: CARE Moves D on INR7cr Loans to Not Cooperating
SAMBHAV GEMS: CARE Hikes Rating on INR6cr Loans to B-
SCOTTS GARMENTS: CARE Migrates 'D' Ratings to Not Cooperating
STEEL IMPEX: CARE Rates INR20cr ST Loans 'D'
TATA CHEMICALS: Fitch Affirms BB+ Long-Term IDR, Outlook Stable
TECHNO SAT: CARE Lowers Rating on INR14cr Loan to D
VASAVI SOLAR: CARE Lowers Ratings on INR32.19cr Loans to D
WIND WORLD: CARE Lowers Rating on INR300cr LT Loan to D
J A P A N
HJ INC: Japan Operator of Hooters Files for Bankruptcy
N E W Z E A L A N D
CBL CORP: Administration and Legal Fees Tops NZ$4 Million
S I N G A P O R E
HYFLUX LTD: Woes Spark Protests, Call for Nationalization
S O U T H K O R E A
[*] S. Korean Shipbuilders Burdened by Debt Payment Since 2013
T A I W A N
CHUNGHWA PICTURE: At Risk of Delisting as Book Value Slid to Red
- - - - -
=================
A U S T R A L I A
=================
AULAK PTY: Second Creditors' Meeting Set for April 5
----------------------------------------------------
A second meeting of creditors in the proceedings of Aulak Pty Ltd,
trading as Toukley Waters Village, has been set for April 5, 2019,
at 10:00 a.m. at the offices of SV Partners, at Suite 3, Level 3,
426 King Street, in Newcastle, West NSW.
The purpose of the meeting is (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 April 4, 2019, at 5:00 p.m.
Joshua Lee Robb and Daniel Jon Quinn of SV Partners were appointed
as administrators of Aulak Pty on March 1, 2019.
B J SAGGERS: Second Creditors' Meeting Set for April 5
------------------------------------------------------
A second meeting of creditors in the proceedings of B J Saggers
Investments Pty Ltd, trading as Brisbane RVs, has been set for
April 5, 2019, at 10:30 a.m. at the offices of Worrells Solvency &
Forensic Accountants, at Level 8, 102 Adelaide Street, in Brisbane,
Queensland.
The purpose of the meeting is (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 April 4, 2019, at 5:00 p.m.
Lee Corsthwaite and Raj Khatri of Worrells Solvency were appointed
as administrators of B J Saggers on March 1, 2019.
EVELYN ST: First Creditors' Meeting Set for April 8
---------------------------------------------------
A first meeting of the creditors in the proceedings of Evelyn ST
Group Pty Ltd will be held on April 8, 2019, at 10:00 a.m. at Level
4, 88 Phillip Street, in Parramatta, NSW.
Michael John Morris Smith of Smith Hancock was appointed as
administrator of Evelyn ST on March 27, 2019.
INSIGHT EDUCATION: First Creditors' Meeting Set for April 4
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Insight
Education Centre For The Blind And Vision Impaired will be held on
April 4, 2019, at 11:00 a.m. at The Boardroom, APL Insolvency,
Level 5, 150 Albert Road, in South Melbourne, Victoria.
Jeremy Robert Abeyratne of APL Insolvency was appointed as
administrator of Insight Education on March 27, 2019.
LA MERANDA: First Creditors' Meeting Set for April 8
----------------------------------------------------
A first meeting of the creditors in the proceedings of La Meranda
Pty Ltd as trustee for La Meranda Unit Trust will be held on April
8, 2019, at 10:00 a.m. at the offices of McLeod & Partners, at
Level 9, 300 Adelaide Street, in Brisbane, Queensland.
Jonathan Paul McLeod of McLeod & Partners was appointed as
administrator of La Meranda on March 27, 2019.
NAPOLEON PERDIS: Second Creditors' Meeting Set for April 8
----------------------------------------------------------
A second meeting of creditors in the proceedings of Napoleon Perdis
Cosmetics Pty Limited and Napoleon Perdis Cosmetics Australia Pty
Ltd has been set for April 8, 2019, at 3:00 p.m. at the offices
of:
Chartered Accountants Australia & New Zealand
Fraser & King Room, Level 1, 33 Erskine St.
Sydney NSW 2000
and at the following offices of Worrells Solvency & Forensic
Accountants:
Level 8, 102 Adelaide Street, in Brisbane, QLD 4000;
Level 15, 114 William St, in Melbourne, VIC 3000; and
Level 4, 15 Ogilvie Rd, in Mount Pleasant, WA 6153
The purpose of the meeting is (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 April 5, 2019, at 5:00 p.m.
Simon Cathro, Chris Cook & Ivan Glavas of Worrells Solvency were
appointed as administrators of Napoleon Perdis on Jan. 31, 2019.
RICHARD GUNNER'S: Second Creditors' Meeting Set for April 8
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Richard
Gunner's Fine Meats Pty Ltd, trading as Richard Gunner Fine Meats,
Feast Fine Foods, The Chop Shop and Farm Direct Meat, has been set
for April 8, 2019, at 11:30 a.m. at Mercure Grosvenor Hotel, at 125
North Terrace, in Adelaide, SA.
The purpose of the meeting is (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 April 4, 2019, at 5:00 p.m.
Robert William Naudi of Rodger Reidy was appointed as administrator
of Richard Gunner's on Dec. 27, 2018.
S3 STAFFING: First Creditors' Meeting Set for April 4
-----------------------------------------------------
A first meeting of the creditors in the proceedings of S3 Staffing
Group Pty Limited will be held on April 4, 2019, at 3:30 p.m. at
the offices of Boardroom at Accounting Brice Consultants, at 2
Malop Street, in Geelong, Victoria.
Nathan Deppeler of Worrells Solvency & Forensic Accountants were
appointed as administrators of S3 Staffing on March 25, 2019.
=========
I N D I A
=========
ABT INVESTMENTS: CARE Moves D on INR100cr Debt to Not Cooperating
-----------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of ABT
Investments India Private Limited (AIPL) to Issuer Not Cooperating
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non Convertible 100 CARE D; Issuer Not Cooperating;
Debenture Based on Best Available
Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from AIPL to monitor the rating
vide e-mail communications dated December 31, 2018, February 7,
2019, a letter dated February 18, 2019 and numerous phone calls.
However, despite CARE's repeated requests, the company has not
provided the requisite information for monitoring the ratings. In
the absence of minimum information required for the purpose of
rating, CARE is unable to express opinion on the rating. In line
with the extant SEBI guidelines CARE's rating on ABT Investments
India Private Limited debenture will now be denoted as CARE D;
ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
At the time of last rating on December 4, 2017, the following were
the rating strengths and weaknesses.
Detailed description of the key rating drivers
Key Rating Weakness
Delays in debt servicing: As per the information from the Debenture
Trustee, the company has not made its principal and interest
payments towards its NCD issue due on November 30, 2017, February
28, 2018, May 31, 2018 and August 31, 2018.
Weak Financial risk profile of SSL (underlying security company)
The NCD issue is secured by pledging the shares of Shakti Sugars
Limited (SSL) held by AIPL. As indicated by the auditors in the
audit report of SSL for FY17, the company has been making delays in
servicing of debt obligations (It had undergone Corporate Debt
Restructuring in FY16).
Key Rating Strengths
Well experienced promoter group: The Sakthi group has been
operational for over eight decades and has presence in diverse
industries. Dr. M. Manickam, Chairman of the group is a third
generation entrepreneur and has over three decades of industrial
experience. He holds a MBA degree from University of Michigan. The
day to day operations of the group companies are managed by his
children. The promoters are supported by well-experienced
management team who have been with the group for long period.
A B T Investments (India) Private Limited (AIPL) belongs to the
Coimbatore based ABT group of companies having presence in
diversified industries including Sugar, Auto Components, Power, IT
services, transportation & logistics, energy and textiles. AIPL was
formed after the demerger and consolidation of the companies under
ABT group. AIPL is an investment and holding company and has no
other operations. The Company has holdings in various group
companies of ABT group.
ARCVAC FORGE: CARE Migrates 'D' Ratings to Not Cooperating
----------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Arcvac
Forge Cast Pvt. Ltd. (AFCPL) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 110.94 CARE D; Issuer not cooperating;
Based on best available
information
Short-term Bank
Facilities 28.25 CARE D; Issuer not cooperating;
Based on best available
information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from AFCPL to monitor the ratings
vide e-mail communications dated January 24, 2019, February 8,
2019, February 15, 2019 and numerous phone calls. However, despite
CARE's repeated requests, the company has not provided the
requisite information for monitoring the ratings. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the best available information which however, in CARE's opinion
is not sufficient to arrive at a fair rating. Further, Arcvac Forge
Cast Pvt. Ltd. has not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. The rating on Arcvac
Forge Cast Pvt. Ltd.'s bank facilities will now be denoted as CARE
D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The ratings take into account the on-going delays in debt servicing
and deterioration in operating margins along with
weakening of financial risk profile in FY18 (refers to the period
April 1 to March 31).
Detailed description of the key rating drivers
At the time of last rating on April 4, 2018 the following were the
rating strengths and weaknesses (updated for the information
available from Banker Interaction & Registrar of Companies):
Key Rating Weaknesses
Ongoing delays in debt servicing: There are ongoing delays in debt
servicing and the account has been reported as Non-Performing Asset
by the banker.
Deterioration in financial risk profile: AFCPL's operating income
was stable at INR127.32 crore in FY18 vis-à-vis INR122.52 crore in
FY17. However PBILDT margin deteriorated from 9.72% in FY17 to
2.13% in FY18. Interest coverage continued to remain below unity.
The company reported gross cash accrual of INR1.11 crore vis-à-vis
debt repayment obligation of INR21.82 crore in FY18. The overall
gearing of the company has also deteriorated from 1.60x as on Mar
31, 2017 to 2.46x as on March 31, 2018.
Arcvac Forge Cast Private Limited, formerly known as Arcvac Forge
Cast Ltd (AFCPL: erstwhile known as Indvac Metals and Forge Pvt
Ltd), incorporated in July 2003, was promoted by Chhajer family of
Kolkata. The company is engaged in manufacturing & selling of
ingots and steel forging (open die). AFCPL commenced its commercial
production from March 2007 by setting up a Steel Melting Shop (SMS)
with an installed capacity of 17,600 MTPA and steel forging
capacity of 15,000 MTPA at Dankuni, West Bengal. Over the years, it
increased its SMS/ingot capacity to 40,000 MTPA and forging to
28,000 MTPA.
ASUTI TRADING: CARE Migrates 'D' Ratings to Not Cooperating
-----------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Asuti
Trading Pvt Ltd. (ATPL) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term/Short 5.00 CARE D/CARE D; Issuer not
Term Bank Cooperating based on best
Facilities Available information
Short-term Bank 115.00 CARE D/CARE D; Issuer not
Facilities Cooperating based on best
Available information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from ATPL to monitor the ratings
vide e-mail communications dated February 22, 2019; February 15,
2019; January 7, 2019 and numerous phone calls. However, despite
CARE's repeated requests, the company has not provided the
requisite information for monitoring the ratings. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the available information. The rating on Asuti Trading Private
Limited's bank facilities will now be denoted as CARE D/CARE D;
ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The re-affirmation in the ratings of ATPL continues to take into
account the ongoing delays in debt servicing resulting into
sustained classification of the account under non-performing asset
(NPA).
Detailed description of the key rating drivers
At the time of last rating on February 8, 2018 the following were
the rating strengths and weaknesses The revision in the ratings of
ATPL takes in to account ongoing delays in debt servicing owing to
devolvement of letter of credit as a result of strained liquidity
position. The account is still classified as non-performing asset
(NPA).
ATPL, incorporated in the month of April 1996, is engaged in to
trading of iron and steel products. It was incorporated by Agarwal
family which was subsequently bought by Mr Siddhartha Bagrecha in
2011. It mainly trades in iron and steel products like – Hot
Rolled Coils (HRC), Cold Rolled Coils and Sheets (CRC/s), Alloy
CRC, Galvanized sheets, Mils Steel Angle and Round bar, etc.
BHANDARI FOILS: CARE Migrates 'D' Ratings to Not Cooperating
------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Bhandari
Foils and Tubes Limited (BFTL) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 90.00 CARE D; Issuer not cooperating;
Facilities Based on best available
Information
Short-term Bank 103.26 CARE D; Issuer not cooperating;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from BFTL to monitor the rating
vide e-mail communications/ letters dated October 10, 2018, October
15, 2018, November 19, 2018, November 26, 2018,
December 7, 2018, January 2, 2019 and numerous phone calls.
Further, CARE has been seeking monthly 'No Default Statement (NDS)'
vide email dated December 31, 2018, January 1, 2019, January 3,
2019, January 7, 2019, January 23, 2019, January 31, 2019, February
1, 2019, February 05, 2019, February 7, 2019, February 15, 2019,
February 28, 2019, March 1, 2019 and March 5, 2019. However,
despite CARE's repeated requests, the company has not provided the
requisite information and past three months NDS i.e. December 2018,
January 2019 and February 2019 for monitoring the ratings. In line
with the extant SEBI guidelines, CARE has reviewed the rating on
the basis of the best available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating. The
rating on BFTL's bank facilities will now be denoted as CARE D;
Stable; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of Bhandari Foils and
Tubes Limited (BFTL) continue to factors in the on-going delays in
debt servicing obligation due to stressed liquidity in light of
high debt levels and working capital intensity of operation.
Detailed description of the key rating drivers
At the time of last rating in May 30, 2018, the following were the
rating strengths and weaknesses:
Rating Weakness
Delay in servicing of debt obligation: BFTL faced a tight liquidity
in the month of March 2018 subsequent to sudden change in RBI's
guidelines which put restriction on banks to allow buyers' credit
(BC) against Letter of Undertakings (LOU). Further, the company
also faced challenges due to imposition of anti-dumping duty on
steel products by Govt. of USA since US is a major export market
for the company. The liquidity was also impacted due to delay in
receipt of GST refunds. Moreover, as informed by the BFTL's
bankers, presently, there are irregularities in debt servicing.
Incorporated in 1993, BFTL is promoted by the Bhandari group based
out of Chennai. BFTL is engaged into the business of manufacturing
stainless steel (SS) welded tubes and pipes, bright annealing
tubes, cold rolled SS coils, strips and foils and pipe fittings.
BFTL has its manufacturing unit situated at Dewas, Madhya Pradesh.
CHAUDHARY INGOTS: CARE Maintains 'D' Rating in Not Cooperating
--------------------------------------------------------------
CARE had, vide its press release dated November 27, 2017, placed
the rating(s) of Chaudhary Ingots Private Limited (CIPL) under the
'issuer non-cooperating' category CIPL had failed to provide
information for monitoring of the rating. CIPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
January 22, 2019 and January 10, 2019. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 11.50 CARE D; Issuer not cooperating;
Facilities Based on best available
Information
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The rating has been reaffirmed by taking into account
non-availability of requisite information and no due-diligence
conducted due to non-cooperation by Chaudhary Ingots Private
Limited with CARE'S efforts to undertake a review of the rating
outstanding. CARE views information availability risk as a key
factor in its assessment of credit risk.
Detailed description of the key rating drivers
At the time of last rating on November 27, 2017, the following were
the rating weakness:
On-going delays: The rating takes into account the ongoing delays
in the servicing of interest obligations due to stressed liquidity
position.
Chaudhary Ingots Private Limited (CIPL), based in Muzaffarnagar,
Uttar Pradesh, was set up in November 2001, by Mr. Yatendra Singh
Panwar, Mr. Narendra Panwar and Mr. Ashok Sharma. CIPL is primarily
engaged in the manufacturing of mild steel ingots and by-products.
Mild steel ingots produced by CIPL find application in rolling
mills to manufacture steel channels and bars which are ultimately
used in the construction and infrastructure industry. CIPL procures
raw material in the form of sponge iron, pig iron, mild steel scrap
and silico manganese from the domestic players and manufactures
ingots in different sizes, which are further categorized based on
their carbon content. CIPL sells all its products in the domestic
market primarily in the three states namely Uttar Pradesh, Punjab
and Rajasthan. CIPL has three group companies - Venus Rolling Mills
Private Limited, Trimurti Engineering Works and Trimurti Concast
Private Limited engaged in a similar line of activity.
DHANRAJ SOLVEX: CARE Moves D on INR22.72cr Loans to Not Cooperating
-------------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Dhanraj
Solvex Private Limited (DSPL) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 22.72 CARE D; Issuer Not Cooperating;
Facilities Based on best available
information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from DSPL to monitor the ratings
vide e-mail communications dated January 25, 2019, January 29, 2019
and January 30, 2019 and numerous phone calls. However, despite
CARE's repeated requests, the company has not provided the
requisite information for monitoring the ratings. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the publicly available information which however, in CARE's
opinion is not sufficient to arrive at a fair rating. The rating on
DSPL bank facilities will now be denoted as CARE D; ISSUER NOT
COOPERATING considering ongoing delays in debt servicing.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while
using the above rating.
Detailed description of the key rating drivers
At the time of last rating on October 8, 2018, the following were
the rating strengths and weaknesses.
Detailed Rationale & Key Rating Drivers
Key Rating Weakness
Delay in debt servicing: CARE as part of its due diligence exercise
interacts with banker of the company and has ascertained that there
are delays in debt servicing.
Established in the year 2014, Dhanraj Solvex Private Limited (DSPL)
is a closely held company promoted by Mr. Dhanraj pallod, Mr
Govardhan Pallod, Mrs. Sushma D Pallod and Mrs. Namrata G Pallod.
DSPL has set up a plant in Latur, Maharshtra for processing soya
bean seed for extraction of soya oil and de-oiled cake (DOC), with
an installed capacity of extracting 600 tonnes of oil per day
located at Latur.
ELECTROMECH MARITECH: CARE Lowers Ratings on INR27.73cr Loans to D
------------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Electromech Maritech Private Limited (EMPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 18.23 CARE D Revised from CARE B
Facilities
(Term Loan-I)
Long term Bank 9.50 CARE D Revised from CARE B
Facilities
(Term Loan-II)
Detailed Rationale & Key Rating Drivers
The revision in the rating assigned to the long term bank
facilities of EMPL takes into account delays in the servicing of
debt obligations by the company.
Going forward, ability of the company to service the debt
obligations in a timely manner shall remain the key rating
sensitivity.
Detailed description of the key rating drivers
Key Rating Weaknesses
Delays in servicing of debt obligations: The company has reported
delays in servicing of debt obligations through no default
statement via email dated March 4, 2018. As per management, the
delays in debt servicing were largely on account of delay in
transfer of payment from TRA account. The same has also been
confirmed by the lenders.
EMPL, a 51:49 joint venture between Golden Infraprojects Pvt Ltd
(GIPL) and Lanco Solar Energy Private Limited (LSEPL), was
incorporated on January 2, 2008. Both GIPL and LSEPL are companies
of Lanco group. LSEPL was established in June 2009 and is engaged
in providing design & engineering, procurement of equipment and
complete construction of solar power projects. The company has
executed turnkey EPC contracts for ~250 MW solar power projects
located majorly in Rajasthan, Gujarat and Maharashtra. EMPL is a 5
MW solar energy project located at Askandra Village, Jaisalmer
district, Rajasthan. The project was funded in debt equity ratio of
63:37. The project achieved Commercial Operations Date (COD) on
January 10, 2012. The company has signed a long term PPA with NVVNL
for 25 years at a fixed tariff rate of INR11.60/kwh in January
2011.
JAI GURUDEV: CARE Moves B+ on INR8.21cr Loans in Not Cooperating
----------------------------------------------------------------
CARE said the rating assigned to the bank facilities of Jai Gurudev
Ginning and Pressing Industries (JGGPI) continue to be constrained
by modest scale of operations, low profitability due to nature of
business, moderate capital structure and debt protection metrics
and working capital intensive nature of operations. These factors
far offset the benefits derived from experienced partners with
demonstrated financial support and location advantage.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 8.21 CARE B+; Stable; Issuer not
Facilities cooperating; Based on best
available information
Detailed description of the key rating drivers
At the time of last rating on February 2, 2018, the following were
the rating strengths and weaknesses:
Key Rating Weaknesses
Modest scale of operations: JGGPI started its operations in April
2013 and since then has achieved a CAGR of 81% till March 31, 2016.
Its TOI grew by 265% y-o-y in FY16 on account of increased orders
from existing customers and new customers tied up.
Low profitability due to nature of business: JGGPI is engaged into
cotton ginning and pressing which is the lowest end of the value
chain in the textile sector and hence operates in low profit
margins. Its PBILDT margin deteriorated by 317 bps y-o-y and stood
at 2.46% in FY16 on account of aggressive pricing adopted to tie up
new clients as well as rise in prices of raw cotton. Furthermore,
its PAT margin was low at 0.12% in FY16 (vis-à-vis 0.16% in
FY15).
Moderate capital structure and debt protection metrics: JGGPI's
capital structure improved with overall gearing to 1.76x as on
March 31, 2016 vis-à-vis 2.42x as on March 31, 2015 on account of
accretion of profits to reserve. On account of low profit margins
as well as high reliance on WC bank borrowings, its debt coverage
indicators deteriorated with interest coverage of 1.65x in FY16
(vis-à-vis 1.95x during FY15) and total debt/cash accruals of
16.46x as on March 31, 2016 (vis-à-vis 12.15x as on March 31,
2015).
Working capital intensive nature of operations: JGGPI's liquidity
position is moderate marked by moderately comfortable current ratio
(1.67x as on March 31, 2016), low quick ratio (0.32x) and moderate
level of utilization of its working capital limits (Cash Credit was
enhanced to INR5.00 crore and utilized at 70% over the past 12
months ended October 2016). It maintains raw material (cotton)
inventory for adequate supply during off seasons leading to Gross
Current Assets days of nearly 50 days on an average basis. The
operations are moderately working capital intensive in nature and
net working capital as a % of capital employed was 56 percent as on
March 31, 2016. While cash flow from operating activities was
negative, the unencumbered cash & bank balance was around INR0.60
crore as on March 31, 2016.
Key rating strengths
Experienced partners with demonstrated financial support: The key
promoters Mr. Chandrashekhar Thote have more than 10 years of
experience in cotton business. Further, another partner Mr. Sachin
Kawale also has five years of industry experience which have helped
JGGPI to bring sizeable business to the firm.
Location advantage: Maharashtra is the second highest cotton
producing state in India and Yavatmal is major cotton growing
district in Maharashtra also known as "Cotton City". Hence, firm
gains the location advantage in terms of timely and easy
availability of raw material for ginning and pressing. Moreover,
there are large numbers of cotton yarn manufacturers in Yavatmal
region providing easy access to customers. Proximity to raw
material and customers also results in low transportation cost for
the firm.
Established in April 2013 by Mr. Chandrashekhar Thote, Mr. Sachin
Kawale and Mrs. Sharada Thote, Jai Gurudev Ginning and Pressing
Industries (JGGPI) is engaged into cotton ginning & pressing at its
plant located at Kalam, Yavatmal, Maharashtra which has an annual
capacity of 280 metric ton of cotton bales and 52 metric ton of
cotton seeds. The manufacturing facility runs in three shifts in a
day during season which falls during October to June and raw
material (i.e. raw cotton) is sourced from local market (farmers).
The firm earns a major part of its revenue from cotton bales (74%
of total revenue in FY16 and 65% in FY15; refers to April 1 to
March 31) which is sold to traders and textile mills and remaining
is generated from sale of cotton seeds to oil mills.
JORABAT SHILLONG: CARE Lowers Ratings on INR816.15cr Loans to D
---------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Jorabat Shillong Expressway Limited (JSEL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Senior Non- 592.42 CARE D Revised from CARE BB (SO);
Convertible [Credit Watch with Negative
Debentures Implications]
(NCDs)
Subordinate 223.73 CARE D Revised from CARE BB (SO);
Non-Convertible [Credit Watch with Negative
Debentures Implications]
(NCDs)
Detailed Rationale & Key Rating Drivers
The revision in ratings assigned to the senior and subordinate
Non-Convertible Debentures (NCDs) of JSEL factors in the delay in
debt servicing obligation that was due and payable on March 1,
2019. CARE vide its press release dated Jan. 30, 2019 had indicated
about the heightened risk of default by JSEL [and other Special
Purpose Vehicle's (SPV's) belonging to IL&FS Transportation
Networks Limited; ITNL], this was consequent to the default in debt
servicing by one of the group SPVs namely, Jharkhand Road Projects
Implementation Company Limited (JRPICL) which had cited the
National Company Law Appellate Tribunal's (NCLAT) interim order
dated October 15, 2018 to cease further debt repayments despite the
existence of sufficient liquidity to repay its debt obligations.
As per the recent NCLAT order dated Feb. 11, 2019, JSEL is
classified into the 'Amber' category, which indicates that though
the entity does not have ability to meet all the obligations
(financial and operational), it can make payment to operational
creditors and senior secured financial creditors. However, the
appeal was made that entities in 'Amber' make payment only to be
going concern (i.e. operational creditors). Sighting this appeal,
JSEL has not made payment towards the repayment obligation that was
due on March 1, 2019.
The ratings were on Credit Watch with Negative Implication on
account of following key monitorables:
* Based on uncertainty that the JSEL's management could possibly
cease and desist upcoming further repayments
citing the NCLAT order as done in JRPICL.
* Due to increased Operations & Maintenance (O&M) risks based on
the weakening of the credit profile of the
sponsor & contractor, i.e. IL&FS Transportation Networks Limited
(ITNL, rated: CARE D).
* Because of 'Expression of Interest' for sale of its ownership
stake in various road projects including JSEL.
The Structured Obligation (SO) ratings assigned to NCD's in past
factored in the discounting of future annuities receivable
from National Highways Authority of India (rated CARE AAA; Stable),
presence of a structured payment mechanism and
various credit enhancement features.
Detailed description of the key rating drivers
Key Rating Weaknesses
Default in debt servicing obligation despite the existence of
ring-fenced structured payment mechanism: JSEL has defaulted on its
debt obligation despite the existence of a ring-fenced structured
payment mechanism (SPM); this indicates management's stance of
making the payments only to operational creditors to remain a going
concern and not making payments to senior secured financial
creditors.
Weakened Credit profile of the sponsor and O&M contractor which has
led deduction in annuity: JSEL is promoted by ITNL (CARE D). ITNL
has also been appointed for the O&M of the project at a fixed price
contract with an undertaking to fund any shortfall in the major
maintenance expenses and routine maintenance expenses. On account
of ITNL's weak credit profile there have been deficiencies in
operations and maintenance and delays in the completion of the
Umsning bypass. This has led to deduction in annuity by National
Highway Authority of India (NHAI, rated CARE AAA; Stable).
Liquidity Analysis
JSEL has maintained a DSRA balance of INR59.5 Crore which is
equivalent to 6 months of debt servicing which is in line
with the stipulated requirement.
Incorporated in June 2010, JSEL is a Special Purpose Vehicle (SPV)
which initially was sponsored by ITNL (ITNL; rated CARE D) and
Ramky Infrastructure Limited in the ratio of 50:50 shareholdings.
Later in August 2018, ITNL purchased entire state from Ramky
Infrastructure Limited and JSEL became 100% subsidiary of ITNL.
JSEL has been awarded a concession by National Highway Authority of
India (NHAI) (rated CARE AAA; Stable) for four-laning of the
Jorabat Shillong (Barapani) section of National Highway – 40 in
the states of Assam and Meghalaya. The Project highway is an
existing road from Jorabat to Barapani starting at km 0.00 and
ending at km 61.80 (approx. 61.92km about 247.68 lane kms). The
project highway traverses through Meghalaya linking some of the
most backward regions of the state and connecting Meghalaya to
Assam. NH-40 is the main artery connecting Shillong, the capital of
Meghalaya and the States of Mizoram and Tripura with Guwahati, the
gateway to the North East of India. The appointed date for the
project was January 12, 2011 with a 3 year construction period and
17 years of operations period during which NHAI would pay 34
semi-annuities to JSEL. The scheduled COD for the project was
January 12, 2014, however there was 2-year delay in project
implementation due to delay in handing over the land of around 8 km
for the project and bypass land of around 5 km by the Authority to
the Concessionaire. LIE has stated in its report that, there has
been delay in project implementation largely on account of
Authority (NHAI) & Govt of Meghalaya. Company has represented with
NHAI for recognition of delay and payment of compensation, the
matter is currently under arbitration. The project achieved
provisional COD on January 28, 2016 and has received five full
semi-annuities on regular basis.
KOHINOOR FOODS: CARE Migrates 'D' Ratings to Not Cooperating
------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Kohinoor
Foods Limited (KFL) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank
Facilities 199.50 CARE D; Issuer not cooperating;
Based on best available
Information
Short term Bank
Facilities 747.30 CARE D; Issuer not cooperating;
Based on best available
Information
Detailed Rationale& Key Rating Drivers
CARE has been seeking information from KFL to monitor the rating
vide e-mail communications dated November 22, 2018; November 23,
2018; November 27, 2018; November 29, 2018 and numerous phone
calls. However, despite CARE's repeated requests, the company has
not provided the requisite information for monitoring the ratings.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating. Further, Kohinoor Foods Limited has not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. The rating on Kohinoor Food Limited bank
facilities will now be denoted as CARE D/CARE D; ISSUER NOT
COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The ratings have been take into account continuing default in
re-payment of borrowing obligations due to continuous losses
resulting in negative cash flows.
Detailed description of the key rating drivers
At the time of last rating on April 16, 2018 the following were the
rating weaknesses and strengths:
Key Rating Weaknesses
Delays in servicing of Debt Obligations: On account of the stressed
liquidity position of the company due to deterioration in its
financial and operational profile, there are overdues in the
working capital facility assigned by various banks. Going forward,
the ability of the company to improve its liquidity position shall
remain critical.
Working capital intensive operations: Owing to the seasonality of
rice harvest, the business has to maintain suitable raw material
inventory to ensure uninterrupted production throughout the year.
Further, basmati rice requires higher ageing of the semi-finished
rice for better quality, thereby elongating the working capital
cycle.
Deterioration in the Financial Risk Profile: The operational
performance of the company has deteriorated in FY17 (refers to
period from April 1 to March 31) due to high cost of raw material
w.r.t. total sales. In FY17 the cost of material consumed as a
percentage of total sales has increased to 89% (PY: 74%) as the
company was not able to sell rice in domestic markets due to legal
issues which resulted in pilling-up of inventory. The inventory in
the books was being carried at a higher cost than the amount
realized for the same which resulted in operational losses for KFL.
In FY17 KFL booked a net loss of INR148.63 crore on account of
operational losses and some exceptional losses. The exceptional
losses were primarily on account of bad-debts due to write off
receivables from subsidiary companies & Kohinoor Specialty Foods
Limited (KSFL).
KFL reported loss of INR148.63 crore in FY17 (PY: INR3.18 crore of
PAT) which has led to moderation in the Net-worth base from
INR415.38 crore in FY16 to INR266.75 crore in FY17. However, the
company has booked a PAT of INR5.98 crore during 9MFY18. Overall
gearing increased to 3.16x as on March 31, 2017 (PY: 2.09x) due to
moderation of Net-worth. KFL's debt profile as on March 31, 2017
largely comprised of working capital borrowings.
Key Rating Strengths
Experienced and resourceful promoter group: KFL was founded by Mr.
Jugal Kishore Arora (Chairman) along with his brothers Mr. Satnam
Arora (Jt. Managing Director) and Mr. Gurnam Arora (Jt. Managing
Director).The promoters have an experience of 4 decades in the
industry. The promoters are assisted by an experienced team of
professionals for carrying out the day-to-day operations of the
company.
Strong distribution network and geographically diversified
operations: KFL has a strong marketing and distribution setup
with more than 100 distributors across the world each of whom has
his own network of dealers and retailers. Company has taken
initiatives for increasing foothold in various countries. With
presence in over 60 countries across the globe, KFL has
geographically diversified operations.
Incorporated in 1989, Kohinoor Foods Ltd (KFL) is engaged in the
milling, processing and selling of rice, and trading of food
products and other agri-commodities. The company has a rice mill
located at Murthal (Haryana) with total installed capacity of 50
metric tonne per hour (MTPH) and a food processing unit at Sonepat
(Haryana) with inhouse production capacity of 75,000 ready meals
per day as on March 31, 2018. Over the years, KFL has emerged as
one of the dominant Indian players in the global basmati rice
market. KFL has established its brand both in India and abroad in
geographies like USA, UK, Middle Eastern countries, Australia,
Belgium and other European countries. Further, the creditors of
the company have filled petition under Section 7 of Insolvency and
Bankruptcy Code, 2016, before the court of National Company Law
Tribunal (NCLT), Chandigarh Bench, which are not yet admitted. The
lender of consortium bank 'Oriental Bank of Commerce' and 'M/S Bedi
Export' have filed the petition.
MAHAMAYA INFRASTRUCTURE: CARE Migrates D Rating to Not Cooperating
------------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Mahamaya
Infrastructure Pvt. Ltd. (MIPL) to Issuer Not Cooperating
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 70.00 CARE D; Issuer not cooperating;
Facilities Based on best available
information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from MIPL to monitor the rating
vide e-mail communications dated December 21, 2018, February 25,
2019, February 26, 2019, February 27, 2019 and numerous phone
calls. However, despite CARE's repeated requests, the company has
not provided the requisite information for monitoring the ratings.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating. The rating on Mahamaya Infrastructure Pvt. Ltd.'s bank
facilities will now be denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while
using the above rating(s).
The ratings take into account the on-going delays in interest
servicing by the company.
Detailed description of the key rating drivers
At the time of last rating on July 30, 2018 the following were the
rating strengths and weaknesses:
Key Rating Weaknesses
Ongoing Delays in Debt Servicing: The company has delays in the
servicing of interest for the last two months.
Key Rating Strengths
Resourceful and experienced promoters: MIPL has been promoted by
Mr. Amandeep Singh Bami and Mr. Karun Dube. Mr. Amardeep Singh is
having extensive experience in infrastructure development. Mr.
Singh also has experience in hospitality industry through the
franchisee of "Nirula" food chain. Mr. Karun Dube is having
diversified experience in International trading, project management
and sports. He was associated with Steel Authority of India for two
decades and has played Cricket at Ranji Trophy level for Delhi &
Assam.
Incorporated in October 2007, Mahamaya Infrastructure Private
Limited (MIPL) has been promoted by Mr. Amandeep Singh Bami and Mr.
Karun Dube. MIPL is setting up a resort cum hotel at Theog, Shimla
(Himachal Pradesh). MIPL has signed a Management and Operational
contract with The Indian Hotels Company Limited (Taj Hotels) for a
period of 25 years.
The company is in process of construction of 99 suites and villas.
The resort has been upgraded to the luxury brand of Taj resorts
with facilities such as most famous brand of Taj Spas, The Jiva,
The gym and the salon. Since, the company is still under project
stage, there is no revenue being generated under the company.
Hence, the financials do not present a fair view.
MORADABAD BAREILLY: CARE Lowers Ratings on INR1,565.94cr Loans to D
-------------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Moradabad Bareilly Expressway Limited (MBEL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non-Convertible 354.90 CARE D Revised from CARE BB;
Debenture issue [Credit Watch with Negative
Implications]
Long-term 1211.04 CARE D Revised from CARE BB;
Facilities [Credit Watch with Negative
Implications]
Detailed Rationale & Key Rating Drivers
The revision in ratings assigned to the Non-Convertible Debentures
(NCDs) and Long-Term Facilities of MBEL factors in the delay in
debt servicing obligation that was due and payable on February 28,
2019.
CARE vide its press release dated Jan. 30, 2019 had indicated about
the heightened risk of default by MBEL [and other Special Purpose
Vehicle's (SPV's) belonging to IL&FS Transportation Networks
Limited; ITNL], this was consequent to the default in debt
servicing by one of the group SPVs namely, Jharkhand Road Projects
Implementation Company Limited (JRPICL) which had cited the
National Company Law Appellate Tribunal's (NCLAT) interim order
dated October 15, 2018 to cease further debt repayments despite the
existence of sufficient liquidity to repay its debt obligations.
As per the recent NCLAT order dated Feb. 11, 2019, MBEL is
classified into the 'Amber' category, which indicates that though
the entity does not have ability to meet all the obligations
(financial and operational), it can make payment to operational
creditors and senior secured financial creditors. However, the
appeal was made that entities in 'Amber' make
payment only to be going concern (i.e. operational creditors).
Sighting this appeal, MBEL has not made payment towards the
repayment obligation that was due on Feb. 28, 2019.
Detailed description of the key rating drivers
Key Rating Weaknesses
Default in debt servicing obligation despite the existence of
ring-fenced structured payment mechanism: MBEL has defaulted on its
debt obligation despite the existence of a ring-fenced structured
payment mechanism (SPM); this indicates management's stance of
making the payments only to operational creditors to remain a going
concern and not making payments to senior secured financial
creditors.
Weakened credit profile of Sponsor i.e. ITNL: The weak credit
profile of sponsor, ITNL (rated CARE D) would make it
difficult to financially support MBEL through infusion of funds in
times of need.
Increased O&M and MME Risk: The Company had entered into an
agreement on March 31, 2017 with ITNL for the fixed price O&M and
MMR with annual escalation of 5% p.a. The O&M expenses would be
INR16.01 crore per year with annual escalation of 5% p.a., which
might be sufficiently met via cash flows from the project. However,
given the weakening of the credit profile of sponsor, ITNL who is
also the O&M contractor, the ability to execute the O&M contract is
questionable.
Interest rate risk: The project is exposed to interest rate risks
on the senior and sub debt bank facilities during the life of the
concession period. The interest rates shall be reset annually on
both the Senior debt and the sub debt. However, toll rate shall be
increased annually, without compounding, by 3% from April 1, 2008.
In addition to fixed annual revision, toll charge will be revised
annually to account for inflation, which shall be restricted to 40%
of variation in WPI. The fructification of the traffic flow as
estimated will significantly impact the interest rate risk.
Liquidity Analysis: MBEL is required to maintain INR86 Crore of
DSRA of which INR55 Crore is in the form of unutilized (i.e.
undisbursed commitments) and balance of INR31 Crore has been
created in the form of Fixed Deposits. The same is equivalent to 6
months of debt servicing. Despite having adequate liquidity,
management has adopted a stance to pay only operational
creditors which has led to default in debt servicing.
Incorporated on January 11, 2011, MBEL was originally a wholly
owned subsidiary of ITNL. However, ITNL has divested a minority
shareholding of 14.5% in MBEL as on 29th September 2017 and
currently holds 84.5% of MBEL's shares. It is a special purpose
vehicle (SPV) engaged in development, operations of widening of the
existing two-lane to four-lane on the Moradabad-Bareilly Section of
NH-24 from km 148 to km 262 for a total project length of 121 km in
the State of Uttar Pradesh under NHDP Phase III on Design, Build,
Finance, Operate and Transfer basis. The project also involved toll
collection on the existing two-lane road stretch.
MURLIDHAR RATANLAL: CARE Migrates 'D' Ratings to Not Cooperating
----------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of
Murlidhar Ratanlal Exports Limited (MREL) to Issuer Not Cooperating
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 88.28 CARE D; Issuer not cooperating;
Facilities Based on best available
Information
Short-Term Bank 57.50 CARE D; Issuer not cooperating;
Facilities Based on best available
Information
Long Term/Short 17.50 CARE D; Issuer not cooperating;
Term Bank Based on best available
Facilities Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from MREL to monitor the
rating(s) vide e-mail communications/letters dated February 22,
2019, February 20, 2019, February 12, 2019 and February 8, 2019 and
numerous phone calls. However, despite CARE's repeated requests,
the company has not provided the requisite information for
monitoring the ratings. In line with the extant SEBI guidelines,
CARE has reviewed the rating on the basis of the best available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating. Further, Murlidhar Ratanlal Exports
Limited has not paid the surveillance fees for the rating exercise
as agreed to in its Rating Agreement. The rating on Murlidhar
Ratanlal Exports Limited's bank facilities will now be denoted as
CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings assigned to the bank facilities of MREL continue to
remain constrained by on-going delays in CC account,weak financial
performance in FY17 (refers to the period April 1 to March 31), low
capacity utilization, weak financial risk profile, raw material
price volatility risk due to dependence on vagaries of nature and
labour intensive operations vis-à-vis labour problems associated
with the industry.
The ratings, however, draw comfort of experienced promoters, fiscal
incentives and empanelment with government Institutions ensuring
steady stream of revenue & profitability, improvement in
performance of the company during 9MFY18 and strong presence in
export markets.
Going forward, the prospects of the company are dependent upon its
ability to increase the capacity utilization and improve PBILDT
margin, reduce the dependency upon government orders by
diversifying customer base, and efficient management of working
capital.
Detailed description of the key rating drivers
At the time of last rating on February 0, 2019 the following were
the rating strengths and weaknesses:
Key Rating Weaknesses
On-going delays: There are ongoing overdrawals in CC account for
more than 30 days and ongoing delays in term loan servicing.
Weak Liquidity
The Liquidity position of the company was weak as evident from
overdrawls in the Cash Credit account and delays in term
loan servicing
Low capacity utilization: The overall capacity utilisation of the
company improved from 40.09% in FY16 to 45.91% in FY17 and 53.11%
in H1FY18 due to improvement in raw-jute production and improvement
in production of food grains. Despite such improvement, it
continued to remain low.
Weak financial performance in FY17 followed by improvement
witnessed in 9MFY18: MREL's operating income increased by 20.86%
y-o-y to INR681.41 crore in FY17 from INR563.82 crore on the back
of increase in capacity utilization coupled with better
realisations. PBILDT margins remained stable at 3.26% in FY17
vis-à-vis 3.19% in FY16. The interest coverage ratio declined from
1.15x in FY16 to 0.95x in FY17 despite an increase in PBILDT level
due to significant rise in interest cost on the back of increase in
total debt. Despite below unity interest coverage, MREL serviced
interest obligation on time by relying on equity infusion of
INR3.00 crore in FY17. The company reported loss of INR9.34 crore
in FY17 as against loss of INR6.91 crore in FY16. In FY17, the
company reported GCA of INR(0.34) crore. MREL's performance however
witnessed improvement in 9MFY18, wherein it reported PBT of INR1.5
crore on total operating income of INR580.44 crore.
Weak financial risk profile: MREL's overall gearing deteriorated
from 1.14x as on Mar.31, 2016 to 2.13x as on Mar 31, 2017 due to
increase in working capital term loan of INR22 crore and increase
in working capital limits utilisation in FY17. The debt protection
metrics of the company weakened due to cash losses reported by the
company in FY17. During 9MFY18, the overall gearing improved to
1.92x, on the back of lower CC utilization and repayment of term
loan coupled with better internal accruals.
Raw material price volatility risk due to dependence on vagaries of
nature: Raw-material is the largest cost component of MREL,
accounting for 61.28% of cost of sales in FY17, followed by
employee costs (at 26.62%). The prices of raw jute, being an
agricultural product, are volatile in nature due to heavy
dependency on the vagaries of nature and crop economics. Given that
raw-material is the major cost driver and the prices of which are
highly volatile in nature, the company's profitability is
susceptible to volatility in raw-material prices. However, the risk
gets mitigated to a certain extent on government orders due to
presence of price variation clause in government orders.
Key Rating Strengths
Experienced promoters: MREL is promoted by Kolkata-based Kajaria
family in 1981. The day-to-day affairs of the company are looked
after by Shri Ajay Kajaria (Managing Director, over three decades
of experience in jute industry) and Shri Sanjay Kajaria (Jt.
Managing Director, over two and a half decades of experience in
jute industry) with adequate support from a team of experienced
professionals.
Fiscal Incentives: The government has introduced various incentives
to protect the ailing jute industry in India. As per Jute Packaging
Material (Compulsory Use in Packaging Commodities) Act, 1987 a
minimum of 90% of all food grains and 20% of sugar is to be
compulsorily packed in jute packaging materials. Apart from this,
several export promotion initiatives are implemented through the
National Jute Board in the form of re-imbursement of expenditures
for attending export promotion events and other export-based
schemes.
Empanelment with Govt. institutions ensuring steady stream of
revenue & profitability: All the four jute mills of MREL (i.e.
Hastings Jute Mill, India Jute Mill and Gondalpara Jute Mill,
Barshul Tex Jute Mill) are empanelled with the office of Jute
commissioner of India (JCI), which entitles it to participate in
the government orders for mandatory jute packaging. Empanelment
with JCI provides assured steady stream of revenue and profit
visibility as jute bag prices in India are fixed on a price formula
of the Tariff Commission of 2001, wherein any sudden increase in
variable costs (i.e. raw-material, labour and power) can be pass on
to the government institutions to a certain extent.
Strong presence in export markets: MREL is one of the large
exporters of jute products from India. The export sales increased
from INR112.77 crore in FY16 to INR143.61 crore in FY17 due to
increase in attractiveness of the Indian Jute industry in the
global market on the back of lower raw material costs.
MREL was incorporated in 1981 and is engaged in manufacturing of
jute & related products. MREL is promoted by Kolkata-based Kajaria
family. The company initially started its manufacturing operation
by setting up a specialized bag stitching factory at Ghusuri,
Howrah. Over the years, MREL has grown its operation by expanding
its jute manufacturing capacity through both organic and inorganic
route. The company acquired Hastings Jute Mill in 1994, India Jute
Mill in 2007 and Gondalpara Jute Mills in 2009. In 2011, MREL set
up a new manufacturing unit, Barshul Tex at Shaktigarh Jute Park.
Currently, MREL is operating total jute manufacturing capacity of
171,465 MTPA and another stitching capacity of 17,750 MTPA.
NARSINGH ISPAT: CARE Reaffirms B+ Rating on INR11.50cr Loan
-----------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Narsingh Ispat Udyog Pvt Limited (NIUPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 11.50 CARE B+; Stable Reaffirmed
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of NIUPL factor in small
scale of operation, working capital intensive nature of business,
albeit efficient management of working capital, thin profitability
margin due to trading nature of operations, albeit witnessed
improvement over last three years and weak capital structure and
debt protection metrics.
The rating, however, derives strength from experienced promoters
with long track record in steel business and diversified customer
profile. Increase in scale of operations with improvement in
profitability, capital structure and debt protection metrics and
efficient management of working capital are key rating
sensitivities.
Detailed description of the key rating drivers
Key Rating Weaknesses
Small scale of operations: Although, the total operating income of
NIUPL increased in FY17 and FY18 over FY16, it continued to remain
a small player, with income from operation of around INR60cr in
comparison to players operating in this industry. The small scale
deprives the company of economies of scale.
Thin profitability margin due to trading nature of operations,
albeit improvement witnessed in FY18: Iron and steel trading
industry is fragmented and competitive with low level of product
differentiation which results in to very high competition leading
to lower bargaining power with the customers. Accordingly the
profitability margins remained low during FY16 & FY17. However it
improved in FY18 due to improved industry scenario. Weak
profitability led to interest coverage below unity in FY16 & FY17
leading to delays in debt servicing in the past. However, it has
improved to 1.15 in FY18. Financial risk profile marked weak
capital structure and weak debt protection metrics. The company has
not availed any term loans from banks and the debt majorly
comprises of working capital loans and unsecured loans from related
parties. Overall gearing though, has improved from 4.24 as on March
2017 to 3.92 as on March 2018, it continued to remain weak. Low
profitability also resulted weak debt protection metrics.
Working capital intensive nature of business, albeit efficient
management of working capital: Company's operations are working
capital intensive in nature as company needs to give high credit
period of 40-50 days to its customers on account of high
competition in iron and steel trading business. Further company
maintains its inventory for about one month to ensure continuous
supply to its customers. Despite being working capital intensive,
the company has been able to efficiently manage its operating cycle
which witnessed gradual improvement over the years from 117 days in
FY16 to 65 days in FY18 mainly backed by improved collection
efficiency. Current ratio of the company had remained comfortable
in the range of 1.22 to 1.32times.
Key Rating Strengths
Experienced promoters with long track record in steel business:
NIUPL was incorporated as a result of taking over of sole
proprietorship firm "M/s GoyaI Ispat Udyog" as a going concern. Mr
Anil Kumar Goyal is key person of the company having 32 years of
experience in trading business of Pig Iron, Coke, and Iron Ore
Fines etc. Dinesh Goyal, one of the executive directors is commerce
graduate, and mainly looks after the sales and purchase of the
company, especially in pig Iron and coke. He has 26-27 years'
experience in trading business.
Diversified customer profile: The Company has an established
relationship with its customers and suppliers with which it has
been dealing over the years. The customers of the group mainly
include infrastructure and downstream iron and steel manufacturers.
During FY18, top 10 customers accounted for nearly 70% of total
revenues (~83% in FY17). Further there is low chance of
concentration risk due to large customer base and product mix.
Liquidity analysis: The liquidity position of the company was tight
as evident form high utilization of fund based working capital
limits. The operating cycle of the company has remained in the
range of 50-60 days.
Narsingh Ispat Udyog Pvt. Ltd (NIUPL) incorporated in March 2012
belongs to the Kolkata based Goyal group. The company had taken
over the business of Proprietorship firm Goyal Ispat Udyog with
effect from April 01, 2013. Currently the company is engaged in
trading of coke, iron & steel and other related items. The flagship
company of the group is Narsingh Ispat Ltd, which is engaged in
manufacturing of pig iron with captive power plant and sinter
plant. Both the promoter directors, Anil Kumar Goyal and Dinesh
Goyal look after overall operations of company.
NEMCARE HOSPITAL: CARE Lowers Rating on INR15cr LT Loan to D
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Nemcare Hospital Tezpur Private Limited (NHTPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 15.00 CARE D; Issuer not cooperating;
Facilities Revised from CARE BB-; Stable
on the basis of best available
information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from NHTPL to monitor the ratings
vide email communications dated October 12, 2018, November 18,
2018, December 31, 2018 & February 18, 2019 and numerous phone
calls. However, despite CARE's repeated requests, the company has
not provided the requisite information for monitoring the ratings.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating. Further, NHTPL has not paid the surveillance fees for the
rating exercise as agreed to in its Rating Agreement. The rating on
Nemcare Hospital Tezpur Private Ltd.'s bank facilities will now be
denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while
using the above ratings.
The ratings have been revised on account of ongoing delay in debt
servicing. The ratings remain constrained by its project
implementation risk, capital intensive nature of business and high
vulnerability to treatment related and operating risks.
The aforesaid constraints are partially offset by its qualified and
experienced promoters, strategic location of the hospital
with established brand image of NEMCARE group in the North East.
Detailed description of the key rating drivers
At the time of last rating on December 28, 2017 the following were
the rating strengths and weaknesses (updated for the
information available from Banker Interaction):
Key Rating Weaknesses
Ongoing delay in debt servicing: There is ongoing delay in
servicing of interest on term loan.
Project implementation risk: The financial closure of the debt
portion is already tied up. However, the commencement of proposed
hospital has been delayed from April 2018 to April 2020.
Capital intensive nature of business: Healthcare industry is a
capital intensive industry with long gestation period due to low
occupancy rate in the initial period of operation. Thus, the
promoter support is imperative for the operation until the
occupancy rate reaches to the minimum desired level.
High vulnerability to treatment-related and operating risks:
Healthcare is a highly sensitive sector where any mishandling of a
case or negligence on part of any doctor and/or staff of the unit
can lead to distrust among the masses.
Key Rating Strengths
Qualified and experienced promoters: The promoters of the NHTPL
group namely Dr. Hiteshwar Baruah (MBBS, MAIMS, FAIMS) and Dr Mihir
Kumar Baruah (MBBS, PGDHHM) have more than two decades of
experience in the healthcare industry. Both the promoters have been
providing healthcare services for more than 2 decade through their
flagship company, North East Medical Care & Research Centre Pvt.
Ltd. (NEMCRCPL) which operates a 100 bed multi-speciality hospital
in Guwahati, Assam.
Strategic Location of the hospital with established brand image of
NEMCARE group: The proposed multi-specialty hospital is being set
up at Tezpur, Sonitpur, Assam which will have locational advantage
and will be first of its kind in the said region with complete
healthcare setup backed by qualified professionals. In absence of
strong competition in the said region, NHTPL is expected to enjoy
the competitive position.
Nemcare Hospital Tezpur Private Limited (NHTPL) was incorporated on
May 23, 2016 by Guwahati based NEMCARE Group. North East Medical
Care & Research Centre Pvt Ltd (NEMCRCPL) holding 88.64% stake in
NHTPL, is the flagship company of the group which is already
operating a 100 bed multi-speciality hospital in Guwahati, Assam
since last 2 decade. This apart, Nemcare Hospital Pvt. Ltd. (NHPL,
IND D) another group company is running a 200 bed multispeciality
hospital in Guwahati.
NHTPL is setting up a 60 bed multi-speciality hospital in Tezpur,
Assam at an estimated cost of INR25.98 crore (being funded at a
debt equity ratio of 1.7:1).
PARASHAR COKE: CARE Moves D on INR74cr Loans to Not Cooperating
---------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Parashar
Coke Pvt. Ltd. (PCPL) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 74.00 CARE D; Issuer not cooperating;
Based on best available
information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from PCPL to monitor the rating
vide e-mail communications dated February 1, 2019, February 5,
2019, February 15, 2019 and numerous phone calls. However, despite
CARE's repeated requests, the company has not provided the
requisite information for monitoring the ratings. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the best available information which however, in CARE's opinion
is not sufficient to arrive at a fair rating. Further, Parashar
Coke Pvt. Ltd. has not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. The rating on
Parashar Coke Pvt. Ltd.'s bank facilities will now be denoted as
CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The rating takes into account the ongoing delays in debt
servicing.
Detailed description of the key rating drivers
At the time of last rating on August 7, 2018 the following were the
rating strengths and weaknesses (updated for the information
available from Banker Interaction & Registrar of Companies):
Key Rating Weaknesses
Ongoing delays in debt servicing: There are ongoing delays in debt
servicing and the account has been reported as Non-Performing Asset
by the banker.
Parashar Coke Private Limited was incorporated in 2006 by Mr.
Mithilesh Pandey, Mr. Sanjay Kumar Shah (friend of Mr. Mithilesh
Pandey) and Mr. Shiv Nandan Prasad Singh (relative of Mr. Mithilesh
Pandey). PCPL has set up a LAMC facility in Saraikela, Jharkhand,
having an installed capacity of 224,065 MTPA for coke and 4,573
MTPA for coke fines at a cost of INR115.47 crore. The project was
funded at a debt-equity ratio of 1.78:1.
S. M. AUTOSTAR: CARE Moves D on INR7cr Loans to Not Cooperating
---------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of S. M.
Autostar Private Limited (SAPL) to Issuer Not Cooperating
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 7.99 CARE D Issuer not cooperating;
Facilities Based on best available
information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from SAPL to monitor the
rating(s) vide e-mail communications/letters dated February 19,
2019, February 9, 2019, February 5, 2019, January 16, 2019,
December 20, 2018, November 20, 2018 and numerous phone calls.
However, despite CARE's repeated requests, the company has not
provided the requisite information for monitoring the ratings.
In-line with the SEBI guidelines, CARE has reviewed the rating on
the basis of publicly available information which however, in
care's opinion is not sufficient to arrive at fair rating. CARE's
rating on S. M. Autostar Private Limited's bank facilities will now
be denoted as CARE D; ISSUER NOT COOPERATING. The ratings have been
revised on account of account of ongoing delays in meeting the debt
obligations.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while
using the above rating.
Detailed description of the key rating drivers
The rating has been revised on account of ongoing delays in debt
servicing due to stretched liquidity position.
SAPL was incorporated in 2007 and is currently being managed by Mrs
Anisha Agarwal and Mrs Kusum Singh. SAPL is primarily engaged in
manufacturing of diverse products namely clutches, brake pads,
clutch plates etc., wind operative generator parts, construction
equipment parts and agricultural equipment. SAPL procures the raw
material mainly iron & steel sheets, bars, pipes, angles, channels,
rubber from the local suppliers in Faridabad. The company mainly
caters to various original equipment manufacturers and large
corporates domestically.
SAMBHAV GEMS: CARE Hikes Rating on INR6cr Loans to B-
-----------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Sambhav Gems Limited (SGL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term/Short- 6.00 CARE B-; Stable/CARE A4
Term Bank Revised from CARE D
Facilities
Detailed Rationale & Key rating Drivers
The revision in the ratings of SGL takes into account regularity in
the debt servicing.
The ratings, however, continue to remain constrained on account of
its continuous decline in scale of operation as well as moderate
profitability, solvency position and working capital nature of
business. The rating is, further, continued to remain constrained
due to SGL's significant dependence on the overseas markets with
major revenue concentration in USA and its presence in a fragmented
industry. The rating, however, continues to derive strength from
the wide experience of the promoters and well-established presence
for the around two decades in the coloured gemstones-studded gold
and silver jewelry business. The diversification of revenue base
across different geographies and improvement in the overall
financial risk profile of the company would be the key rating
sensitivities.
Detailed description of the key rating drivers
Key Rating Weakness
Significant decline in scale of operation in FY18 and stood modest
During FY18, scale of operation remained modest marked by Total
Operating Income (TOI) of INR20.26 crore and PAT of INR0.20 crore.
TOI has significantly declined by 34.69% over FY17 owing to lower
demand in the international market. Further, operating margin of
the company remained moderate at 7.49% in FY18 while PAT margin has
declined by 89 bps over FY17 owing to proportionately higher
interest expenses and stood at 0.96% in FY18.
Weak debt coverage indicators: The capital structure of SGL
remained moderately leveraged with an overall gearing of 1.23 times
as on March 31, 2018 and remained stable as compare to previous
year. However, total debt to GCA of the company has deteriorated
from 16.12 times as on March 31, 2017 to 41.24 times as on March
31, 2018 owing to significantly decline in GCA level. Further,
interest coverage stood moderate at 1.48 times in FY18 as against
1.97 times in FY17.
Stressed liquidity position: Liquidity position of the company
remained stressed marked by full utilization of working capital
limit during past 12 months ended January 2019. Further, owing to
delay in the amount realized from its debtors, operating cycle of
the company has increased continuously and stood elongated at 372
days in FY18. The current ratio of the company stood moderate at
1.28 times, however, quick ratio stood below unity at 0.97 times as
on March 31, 2018 owing to higher inventory. In FY18, SGL has
generated cash flow from operating activities of INR0.73 crore as
against cash of INR2.41 crore in FY17.
Key Rating Strengths
Experienced partners with established marketing network: The
promoters of the company have vast experience of more than 2 decade
in the industry and established relationship with customers in
international market.
Jaipur (Rajasthan) based Sambhav Gems Limited (SGL) was
incorporated in 2001 and is engaged in the business of
manufacturing and export of coloured polished stones and diamond
studded gold and silver jewellery. SGL is also engaged in the
trading of loose coloured polished stones. The company is involved
in the entire cycle of the jewellery manufacturing process right
from procurement of raw gem stones to setting up of the same on the
jewellery piece and selling it through its agents in the overseas
markets. The company has also incorporated two subsidiaries by the
name of Sambhav Jewels Inc. (Hong Kong) and Sambhav Jewels Inc
(USA). SGL has been promoted by Mr. Rajiv Jain who has more than
two decades of experience in the coloured gem stones jewellery
business.
SCOTTS GARMENTS: CARE Migrates 'D' Ratings to Not Cooperating
-------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Scotts
Garments Limited to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 41.49 CARE D; Issuer not cooperating;
Facilities- Based on best available
Term Loan information
Short-term Bank 429.73 CARE D; Issuer not cooperating;
Facilities- Based on best available
Fund-based information
Short-term Bank 40.30 CARE D; Issuer not cooperating;
Facilities-Non- Based on best available
Fundbased information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from Scotts Garments Ltd. to
monitor the rating(s) vide e-mail communications/letters dated
February 19, 2019, February 18, 2019, February 11, 2019,
February 2, 2019, January 5, 2019 and numerous phone calls.
However, despite CARE's repeated requests, the company has not
provided the requisite information for monitoring the ratings. In
line with the extant SEBI guidelines, CARE has reviewed the rating
on the basis of the best available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating. The
rating on Scotts Garments Ltd.'s bank facilities will now be
denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings take into account the continuing delays in the debt
servicing of the company.
Detailed description of the key rating drivers
At the time of last rating on April 10, 2018 the following were the
rating strengths and weaknesses:
Key Rating Weaknesses
Delays in debt servicing by the company: The company is facing
liquidity issues with weak cash accruals and high working capital
requirement leading to company's liquidity position remaining
stretched and resulting in delays in debt servicing.
SGL is engaged in manufacture and exports of readymade garments.
Company produces knitted, woven and denim garments for both genders
across all ages. The company had an installed capacity of 315.18
lakh pieces per annum spread across units in Karnataka and
Tamilnadu. SGL enjoys long standing relationship with several
reputed clients across several global markets attributable to its
long standing presence in the industry.
STEEL IMPEX: CARE Rates INR20cr ST Loans 'D'
--------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Steel
Impex and Industries (SII), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Short term Bank 20.00 CARE D Assigned
Facilities
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of SII takes into
consideration the ongoing delays in servicing of debt obligations
due to stretched liquidity position. The rating however, derives
strength from Experienced and resourceful promoters. Ability of
SII to establish clear track of timely servicing of its debt
obligations with improvement in liquidity position are the key
rating sensitivities.
Detailed description of Key rating drivers
Key rating Weakness
Ongoing delay in debt servicing: AS per the interaction with the
banker, there have been delays in servicing of debt obligations by
the company, marked by overdue six foreign export bills since
October 2018, due to stretched liquidity position primarily on
account of funds blocked in debtors. As on January 11, 2019, the
total overdue of bills stood at INR2.62 crore.
Key rating Strengths
Experienced promoters SII is promoted by Mr. Sunil Batra and Mr.
Diven Batra. who has an average experience in auto components
industry for more than three decades and has developed strong
business relations with customers. Further, the promoter is also
supported by experienced and professionally qualified second line
of management.
Steel Impex and Industries is a partnership firm which was
established in the year 1993 as a by Mr. Sunil Batra and Mr.
Diven Batra. SII is engaged in trading and export of auto spares
part and accessories for trucks, buses, tractors, and passenger
cars in international markets. The products range include bearings,
fasteners, brake parts, engine components, and transmission and
suspension system components. Further SII is Govt. recognized
export house and export 100% of its products to Dubai, Malasiya,
U.S.A, Russia and argentina. SII purchase traded goods from
domestic market mainly from Rajkot, Delhi, Haryana and Punjab
region. SII supply products under their own brand namely
Trusttec(for auto spare parts) and Fox Bearings(for bearings
only).
TATA CHEMICALS: Fitch Affirms BB+ Long-Term IDR, Outlook Stable
---------------------------------------------------------------
Fitch Ratings has affirmed Tata Chemicals Limited's (TCL) Long-Term
Issuer Default Rating (IDR) at 'BB+'. The Outlook is Stable.
TCL, in which Tata Sons Private Limited and other Tata group
companies hold an aggregate stake of 30.6%, is the world's
third-largest manufacturer of soda ash by output and a leading
manufacturer of branded salt in India. TCL's rating reflects its
globally leading and cost competitive position in soda ash and
satisfactory geographic diversification. TCL has exited its highly
regulated and working-capital intensive fertiliser business in
India, which should help it reduce leverage, as measured by
adjusted debt/EBITDAR, to 3.0x in financial year ending March 2019
(FY19) - a level commensurate with its current rating.
The Stable Outlook reflects Fitch's expectations of a largely
balanced global soda ash market, as recent capacity additions in
Turkey have been counterbalanced by shutdowns associated with
stricter environmental norms in China. TCL's upcoming capex plans
will be funded through internal accruals, supported by sale
proceeds of INR30.6 billion from its urea and phosphatic fertiliser
businesses in 2018. TCL also has investments of around INR23.5
billion in various Tata group entities, which expand its liquidity
options, financial flexibility and levers for capex funding,
although this is not reflected in Fitch's assumptions.
KEY RATING DRIVERS
Strong Position in Soda Ash: TCL is the world's third-largest
producer of soda ash, with a geographic footprint across India, the
US, the UK and Kenya. A large 68% of TCL's 4.1 million tonnes (mt)
of soda ash capacity is based in Wyoming, US, and Lake Magadi in
Kenya - two key global regions, other than Turkey, with natural
trona deposits that require low conversion costs. This underpins
the company's cost competitiveness relative to producers in other
geographies and partly mitigates industry risks associated with the
commodity nature of its products.
Capex Plans and Growth Focus: Fitch expects internally funded capex
to drive robust domestic-revenue growth in the early-teen
percentages over the next few years via a gradual ramp-up of
additional capacity. Capex of around INR5.7 billion in the
speciality segments of neutraceutical and highly dispersible silica
plants in south India is likely to be completed in early FY20, with
some contribution to EBITDA from FY21. In addition, around INR7.0
billion in capex will be used to increase soda ash capacity to
1.1mt a year, from 0.9mt a year, and another INR7.0 billion to
boost salt capacity by 40% to 1.4mt a year in the Indian town of
Mithapur, Gujarat, over the next few years; Fitch expects low
execution risk for the two segment due to their brownfield nature
and TCL's strong market position in these products. A further
INR10.0 billion will be invested in energy and environment,
pharma-grade bicarbonate and small-cement capacity.
Modest but Improving Diversification: Fitch expects a gradually
increasing share of profit from the consumer and specialty segments
to improve product diversification and strengthen TCL's business
profile. TCL's product portfolio comprises of soda ash and
associated products, branded kitchen salt and other food-related
consumer products, as well as some speciality products; the
basic-chemistry product segment, which includes soda ash, sodium
bicarbonate and other bulk chemicals, accounted for around 79% of
consolidated EBITDA in FY18, but has an adequate mix of
discretionary (flat glass) and non-discretionary end markets, such
as detergents and glassware.
TCL's share of soda ash/consolidated EBITDA should fall to 73% by
FY22, with a higher contribution from its consumer and specialty
segments, which are less volatile and more resilient than soda ash.
Product concentration risk is also partly mitigated by geographic
and end-market diversification - during FY18 TCL derived around 54%
of EBITDA from the expanding Indian market, around 41% from
developed markets in US and Europe, with the remaining 5% from
other subsidiaries.
Strong Financial Profile and Flexibility: TCL's leverage improved
to 3.3x in FY18, from 3.8x in FY17, as the company used proceeds
from its urea and fertiliser business sales to reduce debt. Fitch
expects the improving trend in leverage to continue, with leverage
gradually falling to 1.7x by FY21 on higher EBITDA and as upcoming
capex is internally funded. TCL's investments in Tata group
entities also provide additional liquidity options and financial
flexibility.
Stable Conditions in Soda Ash: Fitch expects TCL's profitability to
remain stable over the next two years, reflecting the broadly
balanced global demand-supply conditions in the soda ash industry,
which Fitch forecasts to continue over the next two years and
support soda ash producers' ability to pass on energy-price
volatility to a reasonable extent. Nearly 2.5mt of low-cost soda
ash capacity in Turkey was added in 2017, but industry-wide
profitability was maintained following shutdowns in China on
account of stricter environmental norms.
Linkage to Tata Group: Fitch does not apply any uplift to TCL's IDR
due to its assessment of the company's moderate strategic linkages
to the Tata group, but weaker operational and legal linkages given
limited operational overlap and no explicit debt guarantees.
DERIVATION SUMMARY
TCL's competitive and geographically diversified presence in soda
ash as well as its market-leading domestic positioning in salt
(consumer segment) supports its credit profile relative to larger
commodity-chemicals focused peers, such as Ineos Group Holdings
S.A. (BB+/Stable) and CF Industries, Inc (BB+/Stable). CF has a
larger scale and stronger profitability due to its access to
low-cost feedstock, but this it is counterbalanced by TCL's better
end-market diversification and lower leverage, which results in the
two entities being rated at the same level.
TCL is rated two notches below Solvay SA (BBB/Positive), which
benefits from a high proportion of earnings from speciality
chemicals of 70%, much larger scale and cost advantage in its soda
ash business.
TCL is rated a notch higher than SKI Carbon Black (Mauritius)
Limited (BB/Positive), reflecting its more favourable cost
positioning, greater end-market and product diversification and
lower leverage.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- Capex of around INR10 billion in FY20 and again in FY21.
- Robust domestic revenue growth in the early-teen-percentages,
supported by capacity additions of 0.2mt for soda ash and 0.4mt for
salt over the next few years as well as and stable realisation
growth.
- Low-single-digit growth in subsidiaries' revenue on largely
balanced industry conditions.
- Stable EBITDA margin in soda ash reflecting an ability to pass
on input cost increases during the largely balanced industry
conditions, with shutdowns in China counterbalancing capacity
additions in Turkey.
- Annual dividend payout of around INR3 billion-4 billion in
FY20-FY22.
RATING SENSITIVITIES
Developments that May, Individually or Collectively, Lead to
Positive Rating Action
- Gross leverage, as measured by adjusted debt/operating EBITDAR,
sustained below 2.5x
- A meaningful improvement in TCL's business profile, such that
the consolidated EBITDA share of its soda ash segment falls to
around or below 70%
- TCL generating positive free cash flow on a sustained basis
Developments that May, Individually or Collectively, Lead to
Negative Rating Action
- Gross leverage exceeding 3.5x for a sustained period
- EBITDA margin deteriorating to below 15% for a sustained period
- TCL trending towards negative free cash flow for a sustained
period
LIQUIDITY
Strong Liquidity: TCL's financial flexibility remains strong, as
Fitch expects upcoming capex to be funded through internal accruals
and positive free cash generation over FY20-FY22. The company's
liquidity is supported by its large cash balance of INR45.6 billion
and undrawn committed credit facilities of about INR11.2 billion as
of FYE18. It also has investments of around INR23.5 billion in
various Tata group entities, which boosts its liquidity options.
TECHNO SAT: CARE Lowers Rating on INR14cr Loan to D
---------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Techno Sat Comm (India) Private Limited (TSCPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 14.00 CARE D; Issuer not cooperating;
Facilities/ Revised from CARE BB; Positive/
Short term Bank CARE A4+ Based on best available
Facilities Information
CARE has been seeking information from TSCPL to monitor the
rating(s) vide e-mail communications/letters dated December 14,
2018, January 3, 2019, January 9, 2019, February 27, 2019 and
numerous phone calls. However, despite CARE's repeated requests,
the company has not provided the requisite information for
monitoring the ratings. In the absence of minimum information
required for the purpose of rating, CARE is unable to express
opinion on the rating. In line with the extant SEBI guidelines
CARE's rating on PFA bank facilities will now be denoted as CARE
D;ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings have been revised on account of the ongoing delays in
debt servicing and the account has been classified as NPA.
Detailed description of the key rating drivers
Key Rating Weaknesses
On-going delay in debt servicing: As per banker interaction, there
have been ongoing delays in debt servicing and the account has been
classified as NPA.
Techno Sat Comm (India) Private Limited (TSCPL) was incorporated in
year 2008 by Dave Family. The company was formerly known as Techno
Com Inc started in August, 2005 and later incorporated to Private
Limited in January, 2008. Currently Mr. Jay Dave, Mr. Nirav Dave
and Mr. Jagdip Rana are directors of the company. The company is an
ISO 9001:2008 certified for quality management and is engaged in
providing services of RFID solutions, IP based PA systems, WIFI
solutions, CCTV Surveillance, Black Box in trains, Network
Infrastructure, Captive portal and Biometric solutions. TSCPL was
prior engaged in trading of electronic goods. The major revenue
comes from WIFI solutions provided by the company. The company has
reputed clients like Indian Railways, Delhi Metro Rail Corporation,
Reliance Industries, Reliance Infrastructure and Airport Authority
of India. TSCPL has registered office in Mumbai and branches in
Delhi and Kolkata.
VASAVI SOLAR: CARE Lowers Ratings on INR32.19cr Loans to D
----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Vasavi Solar Power Private Limited (VSPPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank
Facilities
(Term Loan-I) 20.31 CARE D Revised from CARE B
Long term Bank
Facilities
(Term Loan-II) 11.88 CARE D Revised from CARE B
Detailed Rationale & Key Rating Drivers
The revision in the rating assigned to the long term bank
facilities of VSPPL takes into account delays in the servicing of
debt obligations by the company.
Going forward, ability of the company to service the debt
obligations in a timely manner shall remain the key rating
sensitivity.
Detailed description of the key rating drivers
Key Rating Weaknesses
Delays in servicing of debt obligations: The company has reported
delays in servicing of debt obligations through no default
statement via email dated March 4, 2018. As per management, the
delays in debt servicing were largely on account of delay in
transfer of payment from TRA account. The same has also been
confirmed by the lenders.
VSPPL, a 51:49 joint venture between Vasavi Power Services Private
Limited (VPSPL) and Lanco Solar Energy Private Limited (LSEPL), was
incorporated on June, 29, 2010. LSEPL, a Lanco group company, was
established in June 2009 and is engaged in providing design &
engineering, procurement of equipment and complete construction of
solar power projects. The company has executed turnkey EPC
contracts for ~250 MW solar power projects located majorly in
Rajasthan, Gujarat and Maharashtra.
VSPPL is a 5 MW solar energy project located at Askandra Village,
Jaisalmer district, Rajasthan. The project was funded in debt
equity ratio of 67:33. The project achieved Commercial Operations
Date (COD) on January 09, 2012. The company has signed a long term
PPA with NVVNL for 25 years at a fixed tariff rate of INR11.65/kwh
in January 2011.
WIND WORLD: CARE Lowers Rating on INR300cr LT Loan to D
-------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Wind World Wind Farms Hindustan Private Limited (WWWFHL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 300 CARE D; Issuer not cooperating;
Facilities Revised from CARE BB; ISSUER
NOT COOPERATING on the basis
of best available information
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from WWWFHL to monitor the
ratings vide e-mail communications dated February 7, 2019, February
15, 2019, February 28, 2019, March 1, 2019 and March 04, 2019 and
numerous phone calls. However, despite CARE's repeated requests,
the company has not provided the requisite information for
monitoring the ratings. In line with the extant SEBI guidelines,
CARE has reviewed the rating on the basis of the publicly available
information. The ratings on WWWFHL bank facilities will now be
denoted as CARE D; ISSUER NOT COOPERATING The ratings assigned to
the bank facilities of WWWFHL have been revised on account of
specific mention of instances of delays in servicing of the debt
obligations by the company in the auditors' report (taken from MCA
Website) for the financial year FY18.
Detailed description of the key rating drivers
The revision in the ratings of bank facilities of Wind World Wind
Farms Hindustan Private Limited factors in instances
of delays in servicing of its debt obligations mentioned in audit
report (taken from MCA website) for the financial year
FY18.
WWWFHPL is a special purpose vehicle (SPV) set-up in 2005 by Wind
World India Limited (WWIL) (erstwhile Enercon India Limited) and
Enercon GmbH (Germany) for setting up wind mills. WWIL and Enercon
Gmbh holds 51% and 49% equity stake in WWWFHPL, respectively.
WWWFHPL is an Independent Power Producer (IPP) having wind farms in
Karnataka and Rajasthan with total installed capacity of 128.8 MW.
=========
J A P A N
=========
HJ INC: Japan Operator of Hooters Files for Bankruptcy
------------------------------------------------------
Tokyo Reporter reports that the Japan-based operator of the U.S.
restaurant chain Hooters has filed for bankruptcy protection, a
research firm revealed on March 26.
Tokyo Reporter relates that Teikoku Databank said that HJ Inc.,
located in Shinjuku Ward, initiated bankruptcy proceedings with
JPY560 million in liabilities under the Civil Rehabilitation Law at
the Tokyo District Court on March 25.
HJ was founded in 2005. The company opened the first outlet of
Hooters, which is known for its busty waitresses attired in tank
tops and shorts, in Japan five years later with the branch in the
Akasaka area of Minato Ward.
After expansion into the Osaka, Nagoya and Fukuoka markets, the
chain once boasted 7 branches. In 2016, sales at HJ peaked at
JPY1.77 billion, Tokyo Reporter discloses.
Upon the opening of the Fukuoka outlet in 2017, HJ said that it had
plans to add six other restaurants in Japan over the next five
years.
"As the center of administration, economy and travel in the Kyushu
region, Fukuoka is an excellent location for the country’s newest
Hooters restaurant," said Mark Whittle, chief development officer,
Hooters of America, LLC, according to Hooters.com, Tokyo Reporter
relays. "The HJ, Inc. team continues to do a tremendous job
introducing the Hooters brand to Japan."
However, sales sagged to JPY1.51 billion in 2018, sending the
company’s bottom line into the red, the report notes. The
company closed the Fukuoka outlet earlier this year.
The six remaining outlets in Japan will continue to operate, with a
new operator expected to take over the businesses, Teikoku
Databank, as cited by Tokyo Reporter, said.
=====================
N E W Z E A L A N D
=====================
CBL CORP: Administration and Legal Fees Tops NZ$4 Million
---------------------------------------------------------
Madison Reidy at Radio New Zealand reports that administration and
legal fees for the failed insurance firm CBL Corporation have
topped NZ$4 million so far, eating away at any funds left for
creditors.
RNZ relates that the administrators from KordaMentha charged nearly
NZ$800,000 in the six months to February for tidying up CBL's
affairs overseas and looking at future options.
Lawyers charged nearly NZ$900,000 in the same period, as the
liquidation of CBL was delayed while a possible restructuring was
mooted, the report says.
CBL has been in voluntary administration since February last year.
Former employees have also been paid NZ$800,000 in the year to
February, RNZ says.
According to RNZ, administrator fees have been funded by debt, a
strategy that administrator Neale Jackson said creditors had
approved.
Creditors Bank of China and the Industrial and Commercial Bank of
China have applied to liquidate CBL Corp, but a hearing of their
application has been adjourned twice. A final hearing has been set
down for May, the report notes.
Meanwhile, administrators are waiting to receive the majority of
the proceeds of selling some of CBL's international businesses, RNZ
reports.
So far only NZ$207,000 has been received, which Mr. Jackson said
was a small portion of what was to come.
He said a formal restructuring plan had yet to be tabled by CBL
directors, the report adds.
About CBL Corp.
Founded in 1973, CBL Corporation Limited (NZE: CBL), together with
its subsidiaries, provides insurance and reinsurance products and
services primarily in New Zealand. It offers financial risk
products, builders' risks, sureties, guarantees, and contractor
bonds primarily in Europe and Scandinavia; deposit guarantees in
Australia; and bonding and fiduciary services to the Mexican
commercial sector. The company also provides a range of specialty
products, such as credit enhancement, surety bonds, specialized
property insurance, aviation, and rural risk in Australia, as well
as distributes construction-sector insurance products in France
through a network of brokers.
CBL Corp. went into voluntary administration in late February 2018,
in a move to prevent other regulators from taking action after the
Reserve Bank moved to have its subsidiary CBL Insurance placed in
interim liquidation.
On February 23, 2018, KordaMentha New Zealand partners Brendon
Gibson and Neale Jackson were appointed Voluntary Administrators by
the Board of CBL Corporation Ltd and certain of its subsidiaries.
The administration relates to New Zealand-domiciled companies.
Messrs. Gibson and Jackson are administrators to these CBL entities
-- CBL Corporation Limited; LBC Holdings New Zealand Ltd; LBC
Holdings Americas Ltd; LBC Holdings UK Ltd; LBC Holdings Europe
Ltd; LBC Holdings Australasia Ltd; LBC Treasury Company Ltd;
Deposit Power Ltd; South British Funding Ltd; and CBL Corporate
Services Ltd.
=================
S I N G A P O R E
=================
HYFLUX LTD: Woes Spark Protests, Call for Nationalization
---------------------------------------------------------
David Yong at Bloomberg News reports that emotions are running high
among some Hyflux Ltd. retail investors who stand to lose almost
everything in the collapse of Singapore’s once much vaunted
water-treatment company.
According to Bloomberg, the frustration has prompted some of them
to organize a protest on March 30 over a steep haircut imposed by
the company under its SGD2.8 billion (US$2.1 billion) debt
restructuring plan. The Business Times published a letter from a
reader calling on Singapore to nationalize the plant, saying Hyflux
may be worth as much as a commodity trader that got government
support in 2014, Bloomberg relates.
Debt holder Alex Leong has obtained a permit to organize the
protest at a downtown park known as the Speaker’s Corner, the
Straits Times reported on its website, Bloomberg relays. The
newspaper cited Mr. Leong’s concerns that he could lose a large
proportion of his savings if the restructuring goes through.
According to Bloomberg, retail investors in Hyflux’s SGD900
million of unsecured junior securities stand to lose about 90
percent of their money under a rescue proposal by a consortium of
Indonesian businessmen to be voted on April 5. The group, however,
may walk away if operational and financial lapses at the Tuaspring
water plant aren’t resolved by April 1.
While Hyflux respects the choice of investors to protest, the
company urges them to reconsider the merits of the current
proposal, it said in an email request for comment on the media
reports, Bloomberg says. It reiterated that the proposal represents
the most viable option, as opposed to zero recovery in a
liquidation scenario.
"There is no alternative offer on the table now," the company said,
adding that it plans to update investors on the restructuring
process. It couldn’t say when the announcement will be made.
According to Bloomberg, the letter in the Business Times suggested
government policy on the energy market sparked a slump in
electricity prices and could not have been anticipated by Hyflux
managers. If given time to restructure, Hyflux could be worth no
less than Olam International Ltd., the trader that received
billions in support from state investment firm Temasek Holdings Pte
in 2014, it added.
Bloomberg meanwhile reports that Algerian Energy Co. has sought
arbitration proceedings against the company and its partners
Tlemcen Desalination Investment Company SAS and Malakoff Bhd. in
disputes over a 2007 venture.
About Hyflux
Singapore-based Hyflux Ltd -- https://www.hyflux.com/ -- provides
various solutions in water and energy areas worldwide. The company
operates through two segments, Municipal and Industrial. The
Municipal segment supplies a range of infrastructure solutions,
including water, power, and waste-to-energy to municipalities and
governments. The Industrial segment supplies infrastructure
solutions for water to industrial customers.
As reported in the Troubled Company Reporter-Asia Pacific on May
24, 2018, Hyflux Ltd. said that the Company and five of its
subsidiaries, namely Hydrochem (S) Pte Ltd, Hyflux Engineering Pte
Ltd, Hyflux Membrane Manufacturing (S) Pte. Ltd., Hyflux Innovation
Centre Pte. Ltd. and Tuaspring Pte. Ltd. have applied To the High
Court of the Republic of Singapore pursuant to Section 211B(1) of
the Singapore Companies Act to commence a court supervised process
to reorganize their liabilities and businesses.
The Company said it is taking this step in order to protect the
value of its businesses while it reorganises its liabilities.
The Company has engaged WongPartnership LLP as legal advisors and
Ernst & Young Solutions LLP as financial advisors in this process.
=====================
S O U T H K O R E A
=====================
[*] S. Korean Shipbuilders Burdened by Debt Payment Since 2013
--------------------------------------------------------------
Yonhap News Agency reports that South Korean shipbuilding companies
have been struggling to make interest payments on their outstanding
debt since 2013 due to a yearslong recession in the global market,
a central bank report showed on March 28.
According to the report, the Financial Stability Report by the Bank
of Korea (BOK) said the interest coverage rate, which measures the
ability of a company to meet interest expenses, has been below the
benchmark 100 percent line since 2013.
It was 2,128 percent in 2008 just before the global financial
crisis but sharply dropped to the below-zero territory in 2013,
bottoming at minus 604 in 2015, Yonhap relates.
If a company has an interest coverage rate of 100 percent or lower,
it is unable to pay its debt using its earnings.
Hit by low oil prices and a supply glut, South Korea's shipbuilders
have been suffering heavy debts and declining orders for years.
Yonhap says creditors threw a multibillion-dollar lifeline to
rescue Daewoo Shipbuilding & Marine Engineering Co. last year, one
of the leading shipyards in the world.
Yonhap notes that local shipbuilders led by industry leader Hyundai
Heavy Industries Co. have been going through a range of
restructuring steps, including massive layoffs in past years.
Thanks to the restructuring efforts, their interest coverage rate
stood at 55 in 2017 but still remained below the 100 level, the
report says.
The latest data, meanwhile, showed local food and accommodation
businesses have generally maintained a coverage rate below 200
percent since 2008, although numbers did fall to 98 in 2017, Yonhap
reports.
Yonhap says transportation companies have also hovered around the
200 percent line since 2014, after having lingered in the 70
percent area between 2011 and 2013.
For the 22,798 companies operating in South Korea, their interest
coverage rate reached 630 percent in 2017, up from 321 percent in
2008, adds Yonhap.
===========
T A I W A N
===========
CHUNGHWA PICTURE: At Risk of Delisting as Book Value Slid to Red
----------------------------------------------------------------
The Taipei Times reports that Chunghwa Picture Tubes Ltd on
March 27 said that its book value slid into the red last year,
pushing the stock to the brink of being delisted from the stock
market.
CPT is the second subsidiary of local home appliances maker Tatung
Co. to face the imminent risk of having its shares banned from
trading in the near future, following Green Energy Technology Inc.,
the report says.
According to the Taipei Times, the LCD panelmaker saw losses
balloon to NT$17.73 billion (US$574.6 million) in the final quarter
of last year, from losses of NT$2.61 billion in the previous
quarter, dragged by a persistent industry oversupply and impairment
losses from its 26 percent shareholding in CPT Technology Group
Co.
For the full year, CPT posted losses of NT$19.61 billion, a
reversal of net profits of NT$2.99 billion in 2017.
As a result, the company’s book value deteriorated to
minus-NT$0.7 per share, from NT$2.19 a share in 2017, the Taipei
Times discloses.
The Taipei Times notes that CPT is likely to be delisted from the
Taiwan Stock Exchange in the middle of May at the earliest, 40 days
after the company submits its financial results to the exchange.
Regulations ban listed companies from trading on the stock market
if their net value falls into the red, the report states.
CPT has about 244,000 shareholders, who are likely to see their
holdings become worthless following the delisting, says the Taipei
Times.
"The company is in a difficult financial situation due to the LCD
industry supply glut in 2018 and [adverse] impact from the US-China
trade dispute," the report quotes spokesperson Huang Shih-chang as
saying at a media briefing in Taipei.
As of Dec. 31 last year, the Taoyuan-based firm's debt had reached
NT$36.6 billion, including NT$1.3 billion in severance payments, as
it plans to lay off 2,500 workers, the report discloses.
According to the report, the company submitted a restructuring
proposal to the Taoyuan District Court, but the court has rejected
the plan.
CPT said it has resumed operation of a 4.5G and a 6G fab, with
equipment loading running at a low 10 to 20 percent, Mr. Huang
said. The company had idled a 4.5G line in 2013.
The company plans to sell the two 4.5G lines to fund the operation
of the 6G fab upon receiving approval from the court, he said.
The Taipei Times notes that the company is restricted from selling
the fabs as it is in the process of applying for court
receivership.
The Taipei Times adds that Tatung said on March 27 it has
recognized losses of NT$9.9 billion from its shareholdings of CPT
and Green Energy.
As a result, Tatung saw its losses widen to NT$33.29 billion last
year, after losing NT$4.09 billion in the first three quarters of
last year, the report discloses.
The home appliance maker saw its book value drop to NT$14.5 per
share, the report says.
Based in Taipei, Taiwan, Chunghwa Picture Tubes Ltd. (TPE:2475) --
http://www.cptt.com.tw/-- manufactures and sells opto-electronic
products in Taiwan and internationally. It offers TFT-
LCDs for tablet, industrial, car, and mobile applications; touch
application for tablets and mobile devices; and CRT and its related
components, as well as CRT and flat display facilities.
*********
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.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2019. 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.
*** End of Transmission ***