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T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, October 21, 2013, Vol. 16, No. 208
Headlines
A U S T R A L I A
AMKUR THERMOFORMING: Business Assets Up For Sale
LEHMAN BROTHERS: Australian Creditors Win $48 Million Payout
PREFERRED FINANCE: Director Convicted For Concealing Property
* ASIC Accepts Enforceable Undertaking From Wangarrata Auditor
* AUSTRALIA: More Small Businesses Insolvent in 2012/2013
C H I N A
EVERGRANDE REAL: S&P Affirms 'BB' CCR; Outlook Stable
I N D I A
AGROFLEX REINFORCE: ICRA Suspends 'BB-' Rating on INR1.5cr Loan
AMBESH GINNING: ICRA Reaffirms 'B+' Rating on INR6.5cr Loan
APINDIA BIOTECH: ICRA Ups Ratings on INR15.79cr Loans to B+
ARIHANT EDIBLE: ICRA Assigns 'D' Ratings to INR5.73cr Loans
DEVDOOT COTTON: ICRA Reaffirms 'B+' Rating on INR6cr Cash Credit
DOLPHIN MARINE: ICRA Assigns 'B' Ratings to INR7.74cr Loans
DWEKAM ELECTRODES: ICRA Withdraws 'D' Ratings on INR10.5cr Loans
EASUN REYROLLE: ICRA Cuts Ratings on INR444cr Loans to 'D'
FLORA EXPORTS: ICRA Suspends 'BB+' Rating on INR0.48cr Loans
GANESHPRASAD IMPEX: ICRA Cuts Rating on INR1cr LT Loan to 'B'
GIRIRAJ JEWELLERS: ICRA Assigns 'B+' Rating to INR3.5cr Loan
GRESS CERAMICA: ICRA Reaffirms 'B+' Ratings on INR8.68cr Loans
LANCO SOLAR: ICRA Lowers Rating on INR150cr Loans to 'C'
MONICA GARMENTS: ICRA Upgrades Rating on INR1.3cr Loans to 'B'
MOUNTAIN STEELS: ICRA Reaffirms 'B-' Rating on INR8cr Loan
NARAYAN ENTERPRISES: ICRA Cuts Rating on INR14.35cr Loans to 'D'
NEW HORIZON: ICRA Assigns 'B+' Ratings to INR7.4cr Loans
PATEL WOOD: ICRA Downgrades Rating on INR3cr LT Loan to 'B'
PRJ POLYMERS: ICRA Assigns 'B+' Rating to INR8cr LT Loans
PURANDAR MILK: ICRA Assigns 'B-' Ratings to INR7cr Loans
SARAVANA GLOBAL: ICRA Assigns 'C-' Ratings to INR57.5cr Loans
S D BANSAL: ICRA Cuts Ratings on INR25.5cr Loans to 'C'
SHARANAMMA DIGGAVI: ICRA Places 'D' Ratings ton INR8cr Loans
SHREE SIDDHNATH: ICRA Assigns 'B+' Ratings to INR50cr Loans
SIDHIVINAYAK FILAMENTS: ICRA Puts 'B' Ratings on INR34.25cr Loans
SOU. SUSHILA: ICRA Assigns 'B+' Rating to INR25cr Term Loan
SPANDAN MULTISPECIALITY: ICRA Rates INR6.43cr Term Loan 'B'
SRI ONKAR: ICRA Reaffirms 'B-' Ratings on INR7.15cr Loans
SUN HOSPITALITY: ICRA Suspends 'B' Rating on INR12cr Term Loans
SUNRISE GINNING: ICRA Reaffirms 'B' Rating on INR10.5cr Loan
UNITECH COTSPIN: ICRA Assigns 'B' Ratings to INR27.1cr Loans
YASHVEER CERAMIC: ICRA Ups Ratings on INR7.25cr Loans to 'B+'
I N D O N E S I A
BORNEO LUMBUNG: Proposes Debt Restructuring Plan
MODERNLAND REALTY: Fitch Rates Sr. Unsec. US-Dollar Notes at 'B'
MODERNLAND REALTY: Moody's Affirms (P)B2 Corporate Family Rating
J A P A N
TOKYO ELECTRIC: To Map Out New Business Revamp Plan in Late Nov.
TOKYO ELECTRIC: Creditors Agree to Roll Over JPY77BB Loan
S O U T H K O R E A
TONG YANG: FSC Will Deal With Group 'By The Book', Chief Says
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A U S T R A L I A
=================
AMKUR THERMOFORMING: Business Assets Up For Sale
------------------------------------------------
Cliff Sanderson at dissolve.com.au reports that the business
assets of Amkur Thermoforming Pty Ltd are up for sale. The company
is currently in liquidation after appointing Richard John Cauchi
and Michael Carrafa of SV Partners as liquidators on October 7,
2013, dissolve.com.au relates.
According to the report, the company's assets that are on sale
include equipment and plant as well as motor vehicles and tooling.
The liquidators are also selling the company's premises lease and
intellectual property that include its website, designs and client
database. dissolve.com.au says those who want to express interest
in the assets are required to conduct a Confidentiality Deed and
submit a $250.00 non-refundable deposit before an Information
Memorandum will be issued.
LEHMAN BROTHERS: Australian Creditors Win $48 Million Payout
------------------------------------------------------------
Ben Butler at The Sydney Morning Herald reports that Australian
clients of Lehman Brothers may start to receive payouts in April
after liquidators struck a deal with the failed investment bank's
insurers.
According to SMH, liquidator Marcus Ayres, of PPB, said a
$48 million settlement with Lehman Brothers' insurers "releases
the shackles" stopping him reaching a commercial settlement.
Lehman Brothers, which collapsed in 2008, owes up to $490 million
to Australian clients, including councils, charities and churches
that sued the company after being sold highly complex debt
securities, SMH discloses.
SMH notes that the securities, known as collateralised debt
obligations or CDOs, had AAA credit ratings but plunged in value
in the global financial crisis.
A settlement with the class action litigants was derailed by the
US arm of Lehman Brothers in June after it bought debt belonging
to the Asian part of the complex group, SMH recalls. However, the
deal with the insurers effectively bypasses the US arm, enabling
Mr. Ayres and his co-liquidator Steve Parbery to go ahead with the
settlement.
"We can now start to get things rolling again," the report quotes
Mr. Ayres as saying. "If the US tries to kibosh the deal, the
only way they can do that is go through the courts. They can't
exert any more commercial pressure on anybody."
The deal was legally sound and "a good commercial settlement", Mr.
Ayres, as cited by SMH, said. About $311 million will be
available to Australian creditors, the report notes.
Amanda Banton, a partner at Piper Alderman, which ran the class
action, welcomed the deal. "That's pretty good because the
churches and charities have been waiting a long time and now
there's finally some light at the end of the tunnel," SMH quotes
Ms. Banton as saying.
"The liquidator is envisaging dividends of between 44.3 cents and
53.8 cents [in the dollar] for clients sold the toxic CDOs."
That compared with the original deal offered under a deed of
company arrangement "where clients some were looking at as low as
2 cents".
SMH adds that Mr. Ayres said the deal required approval of the
Federal Court.
"Whatever we strike with the class action, if we are capable of
striking a deal, that will be mirrored with the other creditors so
everyone is treated the same," the report quotes Mr. Ayers as
saying.
Mr. Ayres hoped creditors would be able to file claims over the
Christmas-New Year break so that he would be able to "start paying
money out at the end of April", the report added.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was
the fourth largest investment bank in the United States. For
more than 150 years, Lehman Brothers has been a leader in the
global financial markets by serving the financial needs of
corporations, governmental units, institutional clients and
individuals worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y.
Case No. 08-13555) on Sept. 15, 2008. Lehman's bankruptcy
petition disclosed US$639 billion in assets and US$613 billion in
debts, effectively making the firm's bankruptcy filing the
largest in U.S. history. Several other affiliates followed
thereafter.
Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset
LLC sought for bankruptcy protection in December 2009.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at
Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell,
Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve
as counsel to the Official Committee of Unsecured Creditors.
Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's
investment banker.
On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S.
District Court for the Southern District of New York, entered an
order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI.
The Bankruptcy Court approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for US$1.75
billion. Nomura Holdings Inc., the largest brokerage house in
Japan, purchased LBHI's operations in Europe for US$2 plus the
retention of most of employees. Nomura also bought Lehman's
operations in the Asia Pacific for US$225 million.
Lehman emerged from bankruptcy protection on March 6, 2012, more
than three years after it filed the largest bankruptcy in U.S.
history. The Chapter 11 plan for the Lehman companies other than
the broker was confirmed in December 2011.
Lehman made its first payment of $22.5 billion to creditors in
April 2012, a second payment of $10.2 billion on Oct. 1, 2012,
and a third distribution of $14.2 billion on April 4, 2013. The
brokerage is yet to make a first distribution to non-customers,
although customers are being paid in full.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other
insolvency and bankruptcy proceedings undertaken by its
affiliates.
PREFERRED FINANCE: Director Convicted For Concealing Property
-------------------------------------------------------------
David John Barrett, previously of Glenhaven, New South Wales, has
been convicted after being charged by the Australian Securities
and Investment Commission with one count of fraudulent concealment
of property from a liquidator.
Mr. Barrett pleaded guilty in the Downing Centre Local Court on
October 1, 2013.
Mr. Barrett was the sole director of Preferred Finance Solutions
Pty Ltd, a mortgage broking business in Parramatta that sourced
and negotiated home loans for consumers on behalf of various
financial institutions.
ASIC's investigation found that Mr Barrett failed to provide
details of a company bank account that was receiving trailing
commissions from the loans that had been secured for consumers. Mr
Barrett failed to provide the details of the bank account to the
liquidator until 2 September 2008. During this period the account
transactions were approximately $40,000.
ASIC Commissioner Greg Tanzer said, 'Directors who run companies
must do so with honesty. In this instance, the fraudulent
concealment of the bank account from the liquidator is an example
of a failure to act honestly and ASIC will take action where
directors fail to do so'.
Mr Barrett was convicted without passing sentence under section
20(1)(a) of the Crimes Act 1914 (Cth) upon entering into a
recognizance release order with a condition to be of good
behaviour for 2 years. As a result of the conviction Mr Barrett is
automatically disqualified from managing corporations for 5 years.
This matter was prosecuted by the Commonwealth Director of Public
Prosecutions.
* ASIC Accepts Enforceable Undertaking From Wangarrata Auditor
--------------------------------------------------------------
The Australian Securities and Investment Commission has accepted
an enforceable undertaking (EU) from Wangarrata-based auditor,
Anthony Hyndman, which permanently prevents him from practising as
an auditor.
On Oct. 10, 2013, in accordance with the EU, Mr. Hyndman requested
that ASIC cancel his registration as an auditor.
Mr. Hyndman has agreed to never re-apply for registration or
perform any duties or functions of an auditor.
ASIC's investigation focused on Mr. Hyndman's audits for the 2011-
12 financial year of three unlisted public companies operating in
Victoria. The three companies were Hargraves Secured Investments
Limited, Webster Dolilta Finance Limited and Win Securities
Limited.
As a result of the investigation, ASIC formed the view that
Mr. Hyndman did not conduct the audits of the companies in
accordance with the Australian Auditing Standards.
ASIC Commissioner John Price said: 'Auditors play an important
role in maintaining and promoting confidence and integrity in
Australia's capital markets.
'Those who do not adhere to the professional standards will be
removed from the industry'.
ASIC is not seeking that the 2011-12 financial year accounts for
these companies be restated.
* AUSTRALIA: More Small Businesses Insolvent in 2012/2013
---------------------------------------------------------
Yolanda Redrup at SmartCompany reports that the percentage of
small businesses collapsing is on the rise, as Australian
Securities and Investments Commission figures reveal businesses
are under pressure from inadequate cash flow.
Figures released October 17 from ASIC reveal 81% of businesses
which became insolvent in 2012/2013 were small businesses with
less than 20 employees, SmartCompany relates.
According to SmartCompany, the construction sector was the worst
affected, with 24% of the insolvent companies in that sector,
matched by the "other" category which is mainly composed of
business and personal services firms.
The next highest sector for collapses was retail, making up 10% of
all collapses, the report relays.
Rodgers Reidy director Brent Morgan told SmartCompany when larger
firms collapse, many small businesses end up being impacted.
"We're finding firms which deal with SMEs are getting busier,
while the big insolvency businesses have quietened down," the
report quotes Mr. Morgan as saying.
"There have been a number of large corporate insolvencies over the
past few years and now it's filtering down to the SMEs. It
happened to the multi-chain retailers and now it's happening to
the smaller businesses."
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C H I N A
=========
EVERGRANDE REAL: S&P Affirms 'BB' CCR; Outlook Stable
-----------------------------------------------------
Standard & Poor's Ratings Services said that it had affirmed its
'BB' long-term corporate credit rating on Evergrande Real Estate
Group Ltd. The outlook is stable. At the same time, S&P affirmed
its 'cnBBB-' long-term Greater China regional scale rating on the
China-based property developer.
S&P also affirmed its 'BB-' issue rating and the 'cnBB+' Greater
China regional scale rating on Evergrande's outstanding senior
unsecured notes.
"We affirmed the ratings because we expect Evergrande's leverage
to increase but stay within our tolerance for the current rating,"
said Standard & Poor's credit analyst Matthew Kong. "The
company's financial strength has weakened since 2012, leading its
EBITDA interest coverage to breach our downgrade trigger of 3x.
However, we expect Evergrande's financial performance to stabilize
over the next 12 months. We anticipate much higher revenue
recognition and an improvement in profit margin in 2013."
S&P revised its assessment of Evergrande's financial risk profile
to "aggressive" from "significant." S&P expects the company's
EBITDA interest coverage to rise to close to 3x and the ratio of
debt to EBITDA to remain well below 5x over the next 12-18 months.
These levels are at the lower end of the range for an aggressive
financial risk profile. S&P expects Evergrande to be more
disciplined with land acquisitions and maintain its borrowings
(including perpetual securities) over the next 12-18 months below
Chinese renminbi (RMB) 100 billion. S&P continues to assess the
company's business risk profile as "fair."
Evergrande's solid sales performance supports the rating. In
S&P's view, Evergrande will be able to achieve its target sales of
RMB100 billion in 2013, given stabilized market conditions and the
large number of projects for sale.
Evergrande's aggressive growth appetite and debt-funded expansion
is a key credit risk. S&P expects Evergrande's debt (including
perpetual securities) to surge by over 45% in 2013, compared with
our estimate of a 9% increase in contracted sales for the full
year.
The company's large land bank with focus on low-tier cities could
also pose a credit risk if property markets face a downturn.
The rating on Evergrande also reflects the company's limited
record of prudent financial management and mixed corporate
governance record. Evergrande's business model with high volume
and large project sizes could heighten the company's execution
risks in small markets. The following factors temper the above
weaknesses: (1) the company's competitively priced products; (2)
its good sales execution; (3) its large, low-cost, and
geographically diversified land bank; and (4) its good cost
controls and growing economies of scale.
"The stable outlook reflects our expectation that Evergrande will
adopt a more disciplined growth strategy and control its high
leverage over the next 12 months," said Mr. Kong. S&P anticipates
that Evergrande will continue to execute its asset-churn model
while improving profit margins.
S&P could lower the rating if Evergrande deviates from its core
business, its sales and profitability are materially lower than
S&P expects, or its debt-funded expansion is more aggressive than
S&P anticipates. Downgrade triggers include a debt-to-EBITDA
ratio of more than 5x, EBITDA interest coverage of less than 3x,
and unrestricted cash of less than RMB10 billion on a sustainable
basis.
Potential rating upside is limited over the next 12 months because
S&P expects Evergrande's leverage to weaken toward the lower end
of the range for an aggressive financial risk profile. S&P could
raise the rating if the company demonstrates consistent and
prudent financial management and improves its leverage through
more disciplined land acquisitions. A ratio of debt-to-EBITDA of
less than 3x on a sustained basis would indicate such strength.
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I N D I A
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AGROFLEX REINFORCE: ICRA Suspends 'BB-' Rating on INR1.5cr Loan
---------------------------------------------------------------
ICRA has suspended '[ICRA]BB-' ratings; with a stable outlook
assigned to the INR1.50 crore long term fund based facilities and
the '[ICRA]A4' ratings assigned to the INR5.00 crore short-term,
non-fund based facilities of Agroflex Reinforce Inc. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
entity.
According to its suspension policy, ICRA may suspend any rating
outstanding if in its opinion there is insufficient information to
assess such rating during the surveillance exercise.
AMBESH GINNING: ICRA Reaffirms 'B+' Rating on INR6.5cr Loan
-----------------------------------------------------------
ICRA has reaffirmed the '[ICRA]B+' rating for the INR6.50 crore
fund based cash credit facility of Ambesh Ginning and Oil
Industries.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term fund 6.50 [ICRA]B+ reaffirmed
based-Cash Credit
The ratings continue to be constrained by Ambesh Ginning and Oil
Industries' weak financial profile as reflected in low
profitability, adverse capital structure, weak debt coverage
indicators and a stretched liquidity position. The ratings also
take into account the low value additive nature of operations and
the intense competition on account of the fragmented industry
structure leading to thin profit margins. The ratings are further
constrained by the vulnerability to adverse fluctuations in raw
material prices which are subject to seasonal availability of raw
cotton and government regulations on the minimum support price
(MSP) for the procurement of raw cotton and the export quota for
cotton bales. ICRA also notes that Ambesh Ginning and Oil
Industries is a partnership firm and any significant withdrawals
from the capital account would affect its net worth and thereby
the gearing levels.
The ratings, however, positively factor in the long experience of
the partners in the cotton ginning and pressing business, the
favorable location of the firm giving it easy access to raw cotton
and the positive demand outlook for edible oil in India.
Established in 1997, Ambesh Ginning & Oil Industries is engaged in
cotton ginning, pressing and crushing operations. The business is
owned and managed by Mr. Bhailal Patel and other family members.
The firm's manufacturing facility is located in Kadi, Dist
Mehsana. The firm has 32 ginning machines, one pressing machine
and five expellers with a processing capacity of 150 TPD of raw
cotton.
APINDIA BIOTECH: ICRA Ups Ratings on INR15.79cr Loans to B+
-----------------------------------------------------------
ICRA has upgraded the rating assigned to the INR15.79 Crore long
term limits of APIndia Biotech Private Ltd from '[ICRA]D' to
'[ICRA]B+'. Further, ICRA has revised the rating assigned to
INR0.21 Crore short term limits from '[ICRA]D' to '[ICRA]A4'.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-Based limits- 2.75 Upgraded to [ICRA]B+
Long Term scale from [ICRA]D
Term Loan-Long 13.04 Upgraded to [ICRA]B+
Term scale from [ICRA]D
Non-Fund based 0.21 Upgraded to [ICRA]A4
Limits-Short from [ICRA]D
term scale
The revision in the ratings reflects the improved liquidity
position of the company as reflected in improvement in debt
servicing and utilisation levels of working capital limits. The
ratings continue to be constrained by modest scale of operation
and vulnerability of profitability to agro-climatic & regulatory
risks inherent in the fertilizer business. ICRA also takes note of
the high customer concentration risk as the almost entire sales of
ABPL are to its group company, namely Madhya Bharat Phosphate Pvt.
Ltd.
Nevertheless, while assigning the ratings, ICRA favorably factored
in the long track record and experience of the promoters' in the
fertilizer business and location advantage due to proximity of
manufacturing facility to raw material sources.
APIndia Biotech Private Limited (ABPL) in engaged in manufacturing
of granulated NPK fertilizers and beneficiated rock phosphate. The
company was incorporated in 1998 and was engaged primarily in
selling NPK fertilizers till FY13 when the company started
manufacturing beneficiated rock phosphate also. The manufacturing
facilities of the company are located at Deewanganj and Meghnagar
in Madhya Pradesh. The facilities are located near the rock
phosphate mines ensuring easy procurement of rock phosphate which
is prime raw material for SSP (Single Super Phosphate)
fertilizers. The sales of the company are primarily to the group
company Madhya Bharat Phosphate Pvt. Ltd.
Recent Results
ABPL reported a turnover of INR23.95 Crore and a net profit of
INR1.78 Crore during financial year 2012-13. The company had
reported a turnover of INR14.71 Crore and a net loss of INR0.13
Crore during financial year 2011-12.
ARIHANT EDIBLE: ICRA Assigns 'D' Ratings to INR5.73cr Loans
-----------------------------------------------------------
ICRA has assigned a long term rating of '[ICRA]D' to the INR1.33
crore term loan and INR4.40 crore cash credit facilities of
Arihant Edible Oils Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limit- 4.40 [ICRA]D assigned
Cash Credit
Fund Based Limit- 1.33 [ICRA]D assigned
Term Loan
The assigned rating reflects AEOPL's stretched liquidity position
leading to delays in meeting term loan repayment obligations and
continuous overutilization of the working capital limits due to
high working capital intensity of operations, and weak financial
profile as reflected by low net profitability, leveraged capital
structure and depressed debt protection indicators. The rating is
further constrained by the company's small scale of current
operations with intense competitive business environment,
vulnerability of margins to volatile edible oil prices; and agro-
climatic risks related to the availability and prices of raw
materials.
The rating, however, draws comfort from the company's favourable
plant location in rice producing belt of Odisha, which facilitates
procurement of rice bran, the main raw material consumed by AEOPL,
and the favorable demand outlook for rice bran oil in the domestic
market due to its health benefits.
Incorporated in 2004, AEOPL is promoted by the Jain family who has
been associated with the rice bran trading business for more than
a decade. AEOPL is primarily engaged in extraction of crude rice
bran oil from rice bran. The company also undertakes processing of
sunflower seeds as well as salseeds. The manufacturing facility
with an installed capacity of 9,900 TPA (tonne per annum) of crude
oil is located in Kalahandi, Odisha.
Recent Results
During 2012-13, the company reported a net profit of INR0.02 crore
on an operating income of INR10.21 crore.
DEVDOOT COTTON: ICRA Reaffirms 'B+' Rating on INR6cr Cash Credit
----------------------------------------------------------------
ICRA has reaffirmed an '[ICRA]B+' rating to the INR6.00 crore fund
based facility of Devdoot Cotton Industries.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit Limit 6.00 [ICRA]B+ reaffirmed
The rating continues to be constrained by the weak financial
profile of Devdoot Cotton Industries (DCI), characterized by
relatively modest scale of operations, weak profitability on
account of low value addition, leveraged capital structure, weak
coverage indicators and stretched liquidity position. The rating
also continues to incorporate the susceptibility of the profit
margins to adverse movement in raw material (cotton) prices, agro
climatic conditions and regulatory risks. The highly competitive
industry environment due to low entry barriers further exerts
pressure on margins. ICRA also notes that Devdoot Cotton
Industries is a partnership firm and any significant withdrawals
from the capital account will affect its net worth and thereby the
gearing levels.
The rating, however, favorably considers the long experience of
the partners in the cotton ginning industry, strategic location of
the plant giving it easy access to raw cotton and the favorable
demand outlook for cotton and cotton seeds.
Established in 1996, Devdoot Cotton Industries is engaged in
ginning and pressing operations. The business is owned and managed
by Mr. Paresh Patel and other family members. The firm's
manufacturing facility is located in Amreli, Dist Rajkot. The firm
has 30 ginning machines and one pressing machine with a cumulative
processing capacity of 150 TPD of raw cotton.
Recent Results
For the year ended March 31, 2013, the firm reported an operating
income of INR23.42 crore with profit after tax (PAT) of INR0.34
crore.
DOLPHIN MARINE: ICRA Assigns 'B' Ratings to INR7.74cr Loans
-----------------------------------------------------------
ICRA has assigned an '[ICRA]B' rating to the INR5.74 crore term
loans and the INR2.0 crore fund-based bank facilities of Dolphin
Marine Foods & Processors (India) Private Limited. ICRA has also
assigned an '[ICRA]A4' rating to the INR6.00 crore short-term
fund-based bank facilities of DMPL. ICRA has also assigned
[ICRA]B/[ICRA]A4 ratings to the proposed long-term/short-term bank
facilities of DMPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 5.74 [ICRA]B assigned
Cash Credit 2.00 [ICRA]B assigned
FDBP/FUDBP 6.00 [ICRA]A4 assigned
Unallocated bank 1.26 [ICRA]B/[ICRA]A4 assigned
Limits
The assigned ratings take into account the modest scale of
operations at present; adverse financial risk profile
characterised by high gearing and weak coverage indicators;
however, a part of total debt is in form of unsecured interest
free loan from the promoters. ICRA also notes the intensely
competitive nature of the industry which impacts pricing
flexibility; high working capital intensity on account of its
business requirement of keeping high inventory which adversely
impacts its liquidity profile and exposure to currency fluctuation
risks in the absence of formal hedging mechanism as a bulk of the
revenues is derived from the overseas market. Nevertheless, the
ratings draw comfort from the long experience of the management in
the sea food business; proximity to the western coastal belt which
provides easy access to raw materials; established relationship
with suppliers and export of high-quality aquaculture products
which provides a cushion to the seasonal revenue generated though
marine exports.
Incorporated in 1996 by Mr. Rosario D'Souza, DMPL is engaged in
processing and exporting of sea foods from its freezing and cold
storage facility in Taloja, Navi Mumbai. The freezing and cold
storage facility became operational in October 2012 prior to which
the company was engaged in pre-processing activities and merchant
exports. The company mainly exports to countries such as China,
Vietnam, Cameroon etc.
Recent Results
In 2012-13, DMPL reported a profit after tax (PAT) of INR0.15
crore on an operating income of INR28.49 crore as compared to a
PAT of INR0.28 crore on an operating income of INR12.70 crore in
2011-12.
DWEKAM ELECTRODES: ICRA Withdraws 'D' Ratings on INR10.5cr Loans
----------------------------------------------------------------
ICRA has withdrawn the '[ICRA]D' rating assigned to INR8.50 crore
fund based limits and [ICRA]D ratings assigned to INR2 crore non
fund based limits of Dwekam Electrodes Private Limited at the
request of the company as there is no amount outstanding against
the rated instrument.
EASUN REYROLLE: ICRA Cuts Ratings on INR444cr Loans to 'D'
----------------------------------------------------------
ICRA has revised the long-term rating outstanding on the INR90.0
crore term loan facilities, the INR68.0 crore fund based
facilities, the INR16.0 crore fund based (inter-changeable
facilities) and the INR25.0 crore non-fund based (sub-limit)
facilities of Easun Reyrolle Limited to '[ICRA]D' from '[ICRA]BB/
negative'. ICRA has also revised the short-term rating outstanding
on the INR245.0 crore non-fund based facilities of ERL from
'[ICRA]A4' to '[ICRA]D'.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan Facilities 90.0 Revised from [ICRA]BB
(Negative) to [ICRA]D
Fund Based Facilities 68.0 Revised from [ICRA]BB
(Negative) to [ICRA]D
Fund Based (Inter- 16.0 Revised from [ICRA]BB
changeable) Facilities (Negative) to [ICRA]D
Non-fund based (sub- (25.0) Revised from [ICRA]BB
limit) facilities (Negative) to [ICRA]D
Non-fund based 245.0 Revised from [ICRA]A4
Facilities to [ICRA]D
The revision of the ratings factors in the delays in debt
servicing by the Company owing to weak liquidity position. The
Company's cash flows and liquidity profile have remained stretched
on account of its elongated collection cycle and modest operating
accruals. ERL's receivable period increased sharply to 304 days
during 2012-13 (up from 241 days in 2011-12) thereby straining its
liquidity position. However, the same was offset to an extent with
the increase in payables period.
Easun Reyrolle Limited was incorporated in 1974 at Hosur in Tamil
Nadu and commenced production in 1980. The Company was promoted by
the late Mr. K Easwaran, Mr. Hari Easwaran and associates, with
equity participation of 25 per cent from Reyrolle Parsons - a
wholly owned subsidiary of Rolls Royce Engineering, UK. However,
Reyrolle Parsons was later acquired by VA TECH, Austria, which was
in-turn acquired by Siemens. Consequent to the takeover of VA TECH
by Siemens, Reyrolle Parsons disinvested its equity in ERL in June
2007. The Company's operations can be broadly classified into five
business groups namely: protection group (relays and control
panels), switchgears, automation group (substation automation and
industrial automation), metering group (energy meters and
automatic meter reading systems) and turnkey projects. ERL has
largely been into the manufacture of relays and control panels for
over 25 years and is a relatively new entrant in the other product
segments. With a view to strengthen its technological
capabilities, over the past few years the Company has acquired
technologically superior companies such as protection business of
NxtPhase T&D Corporation, Canada and 60 per cent stake in
Switchcraft Group LLC, USA. The Company also has established a
wholly owned investment arm (ERL International Pte Ltd) in
Singapore and an international marketing arm (ERL Marketing
International FZE) in Sharjah.
Recent results (Standalone)
During Q1 2013-14, ERL reported net loss of INR5.6 crore on an
operating income of INR42.2 crore as against net loss of INR15.1
crore on operating income of INR13.7 crore during the same period
previous fiscal. For full year 2012-13, ERL reported net profit of
INR0.1 crore on operating income of INR220.6 crore.
FLORA EXPORTS: ICRA Suspends 'BB+' Rating on INR0.48cr Loans
------------------------------------------------------------
ICRA has suspended the '[ICRA]BB+' with 'Stable' outlook rating
assigned to the INR0.48 crore term loans and '[ICRA]A4+' rating
assigned to the INR7.92 crore short-term, fund based bank
facilities of Flora Exports.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 0.48 [ICRA]BB+ (Stable) suspended
Short Term Fund 7.92 [ICRA]A4+ suspended
Based Limits
The suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
According to its suspension policy, ICRA may suspend any rating
outstanding if in its opinion there is insufficient information to
assess such rating during the surveillance exercise. ICRA will
withdraw the rating in case it remains under suspension for a
period of three years.
M/s. Floral Exports is a partnership firm promoted by Jain Family
established in year 1978 as Flora Carpets with focus on
manufacturing carpets for the Hotel Industry in India. In 1990 the
firm started exports of its carpets. Thereon, the promoters set up
one of the largest dyeing units R.K Dyeing Industries in India to
cater to the augmented demand from customers. Rechristened as
'Flora Exports' the firm started its Home Textile division in
1997. Currently the company is engaged in the business of
manufacturing and exporting a diverse range of Home furnishings
(Bed Linen, Table Linen, Curtain and Fabrics) and Floor coverings
(Carpets-, Bath mats or Rugs). The key export markets for 'Flora
Exports' include United States, UK and Europe.
GANESHPRASAD IMPEX: ICRA Cuts Rating on INR1cr LT Loan to 'B'
-------------------------------------------------------------
ICRA has revised the long term rating outstanding on the INR1.00
crore (enhanced from INR0.50 crore) fund based facilities (cash
credit) and INR11.50 crore proposed limits of Ganeshprasad Impex
Private Limited (GIPL or the company) from [ICRA]B+ (pronounced as
ICRA B plus) to [ICRA]B. ICRA has reaffirmed the short term rating
outstanding on the INR8.50 crore non-fund based facilities and
INR11.50 crore proposed limits at [ICRA]A4. The proposed limits of
INR11.50 crore have been rated on both the scales and will attract
rating as per the tenure of usage. The INR1.00 crore fund based
facility is a sub limit of INR8.50 crore non fund based facility.
As such the total utilization of the non fund based facility
should not exceed INR8.50 crore at given point in time.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Fund 1.00 Revised from [ICRA]B+
Based-Cash Credit to [ICRA]B
Short Term Non- 8.50 [ICRA]A4 reaffirmed
Fund Based-Letter
of Credit
Short Term Non- 0.60 [ICRA]A4 reaffirmed
Fund Based-FCL
Short Term Non- 7.00 [ICRA]A4 reaffirmed
Fund Based-Buyers
Credit
Proposed Limit 11.50 [ICRA]B/[ICRA]A4 assigned
The ratings are constrained by the company's small scale of
operation and weak financial profile characterised by low
profitability levels, stretched capital structure, tight liquidity
position and weak coverage indicators. The ratings further
consider GIPL's vulnerability to fluctuations in timber prices as
well as movements in foreign exchange by virtue of being a net
importer. The ratings also take into account the highly
competitive and fragmented industry structure and the firm's
vulnerability to change in regulatory policies of timber exporting
countries as well as India.
The rating, however, positively factor in the long presence of
promoters in the timber trading business and the firm's moderately
diversified market presence across India.
Established in 2004, as a private limited company, GIPL is engaged
in the import of round log and cut to size Burmese teak timber and
caters to the domestic market. The firm gets the order unloaded at
Tuticorin and Mumbai ports. The firm has its head office located
in Reay Road, Mumbai. Patel Wood Works & Timber Mart (rated
[ICRA]B/[ICRA]A4) is an associate concern of GIPL and is engaged
in the same line of business.
Recent Results:
In the twelve month period ending March 31, 2013, the company
reported a profit before tax of INR0.25 crore on an operating
income of INR10.90 crore as per provisional figures.
GIRIRAJ JEWELLERS: ICRA Assigns 'B+' Rating to INR3.5cr Loan
------------------------------------------------------------
ICRA has assigned an '[ICRA]B+' rating to the INR3.50 crore long
term fund-based bank facilities of Giriraj Jewellers Private
Limited. ICRA has also assigned an '[ICRA]A4' rating to the
INR11.60 crore short-term bank facilities of GJPL. Ratings of
[ICRA]B+/[ICRA]A4 have been assigned to the INR2.90 crore proposed
long-term/short-term bank facilities of GJPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 3.50 [ICRA]B+ assigned
Short term fund 3.60 [ICRA]A4 assigned
based limits
Bank Guarantee 8.00 [ICRA]A4 assigned
Proposed bank limits 2.90 [ICRA]B+/[ICRA]A4 assigned
The assigned ratings take into consideration the small scale of
operations at present; declining profitability on account of the
intensely competitive nature of the jewellery industry; leveraged
capital structure and depressed coverage indicators of the
company. The ratings are further constrained by the exposure to
volatility in gold prices; high working capital intensity due to
the business requirement of holding high inventory levels, which
adversely impacts liquidity position of the company and
vulnerability of profitability to foreign exchange fluctuations
given the dependence on exports. Nevertheless, the assigned
ratings draw comfort from the long experience of the promoter in
the jewellery business; moderate business return indicators on
account of healthy asset turnover and diversified customer base of
the company.
Incorporated in 2004, GJPL is engaged in the manufacture, retail,
wholesale and exports of gold, silver and diamond studded
jewellery. GJPL was started by Mr. Rasik Salla who has been
involved in the jewellery business since 1982. The manufacturing
facility of the company is located at Mumbai and the company has a
retail showroom at Borivali in Mumbai. GJPL also sells jewellery
to other jewellers mainly based in and around Mumbai and to UK and
UAE markets.
Recent Results
In 2012-13, GJPL reported a profit after tax (PAT) of INR0.18
crore on an operating income of INR22.33 crore as compared to a
PAT of INR0.29 crore on an operating income of INR20.10 crore in
2011-12.
GRESS CERAMICA: ICRA Reaffirms 'B+' Ratings on INR8.68cr Loans
--------------------------------------------------------------
The rating of '[ICRA]B+' has been reaffirmed to the INR3.00 crore*
(enhanced from INR2.00 crore) fund based cash credit facility and
the INR5.68 crore (reduced from INR6.20 crore) term loan facility
of Gress Ceramica Private Limite. The rating of '[ICRA]A4' has
also been reaffirmed to the INR1.00 crore short term non fund
based facilities of GCPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 3.00 [ICRA]B+ reaffirmed
Term Loans 5.68 [ICRA]B+ reaffirmed
Bank Guarantee 1.00 [ICRA]A4 reaffirmed
Letter of Credit (2.15) [ICRA]A4 reaffirmed
The ratings continue to be constrained due to Gress Ceramica
Private Limited's (GCPL) limited track record and weak financial
profile as reflected in the low profitability, high gearing levels
and modest coverage indicators. The ratings also take into account
its limited product profile and high competitive intensity given
the fragmented structure of the tiles industry which is expected
to result in the inability of the company to entirely pass on the
increase in fuel expenses. The ratings also take into
consideration the vulnerability of profitability and cash flows of
the company to the cyclicality inherent in the real estate
industry which is the main consuming sector.
The ratings, however, favorably consider the experience of the key
promoters in the ceramic industry and the location advantage
enjoyed by GCPL with its plant located in Wankaner giving it easy
access to raw materials.
Gress Ceramica Private Limited was incorporated in December 2011
by Mr. Bhadresh Bhalodiya, Mr. Nitin Panchotiya and Mr. Hasmukh
Panchotiya. GCPL is engaged in the manufacture of digitally
printed wall tiles with production capacity of 24,000 MTPA. GCPL
commenced commercial production in June 2012 and has achieved
capacity utilization of 56% in first year of operation. The
company currently manufactures wall tiles in the 12"X18" and
24" X 12" sizes.
Recent Results
For the year ended 31st March, 2013, as per provisional financial
statements GCPL reported an operating income of INR10.68 crore and
profit before tax of INR0.24 crore.
LANCO SOLAR: ICRA Lowers Rating on INR150cr Loans to 'C'
--------------------------------------------------------
ICRA has downgraded the long-term rating from '[ICRA]B+' to
'[ICRA]C' to INR150 Crore of fund based facilities of Lanco Solar
Energy Private Limited. ICRA has reaffirmed the short term rating
at '[ICRA]A4' to INR425 Crore of non fund based facilities of the
company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits 150.00 [ICRA]C Downgraded
Non Fund Based Limits 425.00 [ICRA]A4 Reaffirmed
ICRA's rating action has factored in considerably lower revenue
booking in FY 2013 in comparison to the last year's estimates,
mainly attributable to technical delays at two solar thermal power
plants (100 MW each). The COD for these projects has been shifted
from May, 2013 to March, 2014; however the design related issues
and availability of heat transfer fluid (a key component in solar
thermal plant) continue to keep these projects exposed to high
execution risks.
Further, the present order book of is heavily dependent on these
two projects which increases concerns on the future revenue
visibility. Unfavorable exchange rate movement of rupee since the
time of signing of EPC contracts for these projects is likely to
result in cost overruns because considerable portion of the
project cost is denominated in USD and fixed price nature of EPC
contract is expected to have adverse impact on the profitability.
The rating action has also factored in the tight liquidity
position of the company as indicated by some instances of
overutilization of fund and non fund based limit (utilized for the
raw material procurement) devolvement in the recent past. This has
been mainly on account of slow recovery of payments from Mahagenco
which LSEPL executed 75 MW of EPC work in FY 2013. Furthermore,
the weak financial health and significant funding commitments of
the promoter company, Lanco Infratech Limited (LITL) has also
weakened the funding support to LSEPL in case of any funding gaps.
It should be noted that against the debtors of INR700 Crore
outstanding as on 31st March, 2013 for INR850 Crore worth of work
done for Mahagenco, LSEPL has been able to recover ~Rs. 280 Crore
as on date. The liquidity position of the company would remain
considerably dependent on the timely recovery of pending payment.
The high levels of outside liabilities comprising interest
bearing-customer advances and buyer's credit coupled with modest
profitability continues to keep the coverage indicators at modest
level, such as OPBDITA / Interest and Finance Charges at 0.87
times, Total Outside Liabilities/ (Tangible Net Worth+ Minority
Interest) at 6.19 times, Total Debt/OPBDITA at 6.61 times and Net
Cash Accruals/ Total debt 4% in FY 2013. The ratings have
positively factored in considerable recovery of overdue payments
in FY 2013 from the Rajasthan projects it executed in FY 2012.
LSEPL has however advanced some portion of these collections in
the form of loans back to these projects on which it is earning
interest (LSEPL received INR15 Crore of interest income on these
in FY 2013).The ratings also continue to take support from LSEPL's
established position in the solar EPC space and sourcing of
equipments from reputed global suppliers with back to back
warranties that mitigates contingency risks.
Going forward timely recovery of payment from Mahagenco and
LSEPL's ability to execute the current order book without
incurring time & cost overruns while protecting its profit margins
and enforcing a stricter payment collection mechanism would be key
sensitivities.
MONICA GARMENTS: ICRA Upgrades Rating on INR1.3cr Loans to 'B'
--------------------------------------------------------------
ICRA has upgraded the long-term rating assigned to the INR1.30
crore Term Loan facilities of Monica Garments from '[ICRA]D' to
'[ICRA]B'. ICRA has also upgraded the short term rating assigned
to the INR4.0 crore of Packing Credit facilities, INR1.50 crore of
Bill Discounting facilities, INR0.09 crore of Overdraft facilities
and INR0.04 crore of Unallocated facilities from '[ICRA]D' to
'[ICRA]A4'.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 1.30 Rating upgraded from
[ICRA]D to [ICRA]B
Packing Credit 4.00 Rating upgraded from
[ICRA]D to [ICRA]A4
Bill Discounting 1.50 Rating upgraded from
[ICRA]D to [ICRA]A4
Overdraft 0.09 Rating upgraded from
[ICRA]D to [ICRA]A4
Unallocated 0.04 Rating upgraded from
[ICRA]D to [ICRA]A4
The rating revision takes into account regularized debt servicing
by the firm. The ratings also favorably factor in the healthy
growth in business achieved in FY 13 on account of higher orders
from existing customers and acquisition of new customers
benefitting from partner's experience in the business. The
ratings, however, are constrained by high customer concentration
with ~72% revenue derived from a single customer. Further, low
value-added nature of the business and limited bargaining power of
the firm continue to put pressure on the operating margin as well
as cash accruals. The increased working capital intensity of
operations arising from reduced credit period available resulted
in negative cash flow from operations and stretched liquidity.
ICRA also notes that high competitive intensity on account of
domestic as well as low cost South East Asian competitors exerts
pressure on order inflows and profitability of the firm. Going
forward, the firm's ability to increase the scale by diversifying
its customer base and improve its operating margin would be the
key rating sensitivities.
Monica Garments is a partnership firm and was established in 1990.
Mr. Anil Varma & Mr. Virendra Rawat are 50-50 partners in the
firm. The firm manufactures garments mainly for the women segment
and caters to mid price customer segment. The firm remains a fully
export oriented firm with majority of products sold in European
and US markets. The firm runs two manufacturing facilities; one in
Okhla (Delhi) and one in Noida and the total manufacturing
capacity is around 75,000-200,000 pieces per month depending upon
the type of garment.
MOUNTAIN STEELS: ICRA Reaffirms 'B-' Rating on INR8cr Loan
----------------------------------------------------------
ICRA has reaffirmed '[ICRA]B-' rating to the INR8.00 crores fund
based bank facilities of Mountain Steels (Pvt.) Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-Based Limits 8.00 [ICRA]B- Reaffirmed
The rating action continues to remain constrained by modest
operating position of the company in the Thermo-mechanically
treated (TMT) bars manufacturing business as reflected by
relatively small scale of operations and average capacity
utilization in the past. The rating is also constrained by low
value additive nature of the business which coupled with high
competitive pressures in the steel industry has resulted in modest
profitability for the company. Further, the financial flexibility
of the company has remained low as reflected in high working
capital limit utilization and weak debt protection indicators. The
rating, however, derives comfort from the long track record of
promoters in the steel business, and cost savings due to backward
integration into manufacturing of MS Ingots. Going forward, the
company's ability to maintain adequate profit margins in an
intensely competitive industry and manage its working capital
cycle effectively will be the key rating drivers.
Mountain Steels (Pvt.) Limited was incorporated as Nikhanj Foods
Products Ltd. in 1986 for manufacturing of food products. The name
of the company was changed to MSPL in 2003. Since then the company
is involved in manufacturing of Thermo-mechanically treated (TMT)
bars from Ingots. The company produces ingots in house and the
entire ingots produced are consumed in house for the manufacturing
of TMT bars. The TMT bars manufactured by MSPL are sold under the
Brand Name 'Sarmesh Saria'. The company has a rolling mill with an
installed capacity of 35,000 MTPA to manufacture TMT Bars and an
induction furnace with an installed capacity of 20,000 MTPA for
ingots.
Recent Results:
As per the audited financial results, MSPL reported a net profit
of INR0.11 Crore on an operating income of INR57.87 Crore for the
year ended March 31, 2013 as against a net profit of INR0.03 crore
on an operating income of INR58.45 crore for the year ended March
31, 2012.
NARAYAN ENTERPRISES: ICRA Cuts Rating on INR14.35cr Loans to 'D'
---------------------------------------------------------------
ICRA has revised the rating assigned to the INR14.35 crore bank
lines of M/s Narayan Enterprises from '[ICRA]B-' to '[ICRA]D'.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 14.35 [ICRA]D (revised from [ICRA]B-)
The revision in rating factors in the delays in debt servicing by
the firm in the recent past owing to the firm's stretched
liquidity position. The Narayan's Aries residential project has
witnessed low sales velocity as reflected by the sale of 67 flats
till date out of the firm's share of 111 flats; this coupled with
low collections have resulted in tight liquidity position for the
firm. Further, the firm is also exposed to high execution risk as
only 58% (in terms of total cost incurred) project is complete
till date.
The rating, however, takes into account the partner's vast
experience in construction services as evidenced by successful
completion of 13 residential projects in Bangalore.
Incorporated in the year 2000 as a partnership firm, M/s Narayan
Enterprises, promoted by Mr. H.D. Narayan Babu and his wife Smt.
Poornima Narayan is engaged in building residential apartments and
has completed 13 projects satisfactorily in Bangalore. It is
currently developing two residential projects in Bangalore,
Narayan's Aries and Narayan's Leo.
Recent Results
The firm reported net profit of INR0.05 crore on operating income
of INR9.05 crore during FY2012 and a net profit of INR1.75 crore
(provisional) on operating income of INR11.29 crore (provisional)
during FY2013.
NEW HORIZON: ICRA Assigns 'B+' Ratings to INR7.4cr Loans
--------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]B+' to INR7.40
crore fund-based facilities and short term rating of '[ICRA]A4' to
INR1.60 crore non-fund based facilities of New Horizon Knits
Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit Limits 6.00 [ICRA]B+ Assigned
Long Term Fund based 1.40 [ICRA]B+ Assigned
Facilities (Un-allocated)
Short-term Non-Fund Based 1.60 [ICRA]A4 Assigned
Facilities
The rating factors in the track record of the promoters in socks
manufacturing business leveraging on which the company has been
able to establish relationship with its customers as evident in
repeat orders. Although the company has been operational for a
decade; the scale of operations remains modest as reflected in
Operating Income (OI) of around INR14.21 crore in FY2013. Socks
manufacturing industry is highly fragmented because of which the
competitive intensity is very high thereby limiting the pricing
power and hence modest profitability indicators for the company
(OPM at 11.80%, NPM at 2.12% and ROCE at 10.15% in FY2013). The
profitability of the company is also exposed to fluctuation in
foreign exchange rates owing to high proportion of sales from
exports (~76% in FY2013). The working capital requirement for the
company is high on account of steady revenue growth and working
capital intensive nature of operations. This coupled with modest
profitability have resulted in increased reliance on borrowings
and credit from suppliers, thereby stretched liquidity profile as
reflected in consistently high utilization of sanctioned limits.
High reliance on bank working capital borrowings and unsecured
loans from promoters for repayment of the bank loan availed
earlier for funding the expansion of manufacturing facilities,
along with limited accretion to net worth has weakened the capital
structure with gearing of around 2 times as on Mar-13. The modest
profitability and high gearing levels resulting in modest debt
coverage indicators with OPBDITA/Interest of 1.89 times, Total
Debt/ OPBDITA of 4.71 times and NCA/TD of 11% as on Mar-13. Going
forward, the ability of the company to scale up its operations
while improving the profitability levels and improve its liquidity
position will remain the key rating sensitivities.
NHPL was incorporated in 2004 and promoted by Mr. Shyam Sunder
Chamria and his son Mr. Ravi Chamria, is engaged in the
manufacturing of socks for exports and also for sale in the
domestic market. The company's facility comprises of 117 circular
knitted machines and is located at Bahadurgarh (Haryana). During
FY2013, the company reported Profit After Tax (PAT) of INR0.30
crore with an Operating Income (OI) of INR14.21 core as compared
to PAT of INR0.28 crore and OI of INR13.46 crore in the previous
financial year.
PATEL WOOD: ICRA Downgrades Rating on INR3cr LT Loan to 'B'
-----------------------------------------------------------
ICRA has revised the long term rating outstanding on the INR3.00
crore (enhanced from INR1.00 crore) fund based facilities (cash
credit) and INR1.10 crore proposed limits of Patel Wood Works &
Timber Mart from '[ICRA]BB-' to '[ICRA]B'. ICRA has reaffirmed the
short term rating outstanding on the INR18.90 crore non-fund based
facilities and INR1.10 crore proposed limits at [ICRA]A4.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Fund 3.00 Revised from [ICRA]BB-
Based-Cash Credit (stable) to [ICRA]B
Short Term Non- 18.60 [ICRA]A4 reaffirmed
Fund Based-Letter
of Credit
Short Term Non- 0.30 [ICRA]A4 reaffirmed
Fund Based-Letter
of Guarantee
Short Term Non- 14.00 [ICRA]A4 reaffirmed
Fund Based-Buyers
Credit
Proposed Limit 1.10 [ICRA]B/[ICRA]A4 assigned
The proposed limits of INR1.10 crore have been rated on both the
scales and will attract rating as per the tenure of usage. The
INR3.00 crore fund based facility is a sub limit of INR18.90 crore
non fund based facility. As such the total utilization of the non
fund based facility should not exceed INR18.90 crore at given
point in time.
The ratings are constrained by Patel Wood Works & Timber Mart's
weak financial profile characterised by low profitability levels,
stretched capital structure, tight liquidity position and weak
coverage indicators. The ratings further consider the small scale
of operations of the firm and its vulnerability to fluctuations in
timber prices and movements in foreign exchange by virtue of being
net importer. The ratings also take into account the highly
competitive and fragmented industry structure, the firm's
vulnerability to change in regulatory policies of timber exporting
countries and India as well as the exposure to risk of capital
withdrawals given that PWTM is a partnership firm.
The ratings, however, positively factor in the long presence of
promoters in the timber trading business and the firm's moderately
diversified market presence across India.
Established in the 1960s, as a partnership firm, PWTM is engaged
in the import of round log and cut to size Burmese teak timber and
caters to the domestic market. The firm gets the orders unloaded
at Kandla, Mangalore, Tuticorin and Mumbai ports. It has its head
office located in Reay Road, Mumbai. Ganeshprasad Impex Private
Limited (rated [ICRA]B/[ICRA]A4) is an associate concern of PWTM
and is engaged in the same line of business.
Recent Results:
In the twelve month period ending March 31, 2013, the company
reported a profit before tax of INR0.33 crore on an operating
income of INR17.10 crore as per provisional figures.
PRJ POLYMERS: ICRA Assigns 'B+' Rating to INR8cr LT Loans
---------------------------------------------------------
ICRA has assigned a long term rating of '[ICRA]B+' to the INR8.00
crore fund based working capital facilities of PRJ Polymers
Private Limited. ICRA has also assigned a short term rating of
'[ICRA]A4' to the INR6.00 Crore non-fund based short term
facilities of PPPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-Based limits- 8.0 [ICRA]B+ assigned
Long Term scale
Non-Fund based 6.0 [ICRA]A4 assigned
Limits-Short
term scale
The ratings are constrained by the company's small scale of
operations; dependency on IOCL for business; high working capital
requirements in relation to profits; moderately high customer,
geographic and segment concentration risks and financial profile
characterized by high gearing and weak debt coverage indicators.
Nevertheless, while assigning the ratings, ICRA has favourably
factored in the long track record of the promoters in the polymers
distribution business and established relations with customers in
the plastics industry.
PPPL was initially engaged in the business of distribution of
chemicals and polymers for GAIL India Ltd, RIL, IOCL etc. In 2009,
PPPL applied for the distributorship of Indian Oil Corporation Ltd
(IOCL) and got the distributorship for PP/HDPE products on 24th
May, 2010. Presently, PPPL is a Del-Credere agent (DCA) as well as
a Consignment Stockist (CS) of IOCL for distribution of polymer
products in the NCR region. The company has a rented warehouse
with a capacity of 350 MT in Kavinagar Industrial Area for
stocking goods.
Recent Results
For the year ended 31st March 2013 (unaudited provisional
financials), PPPL reported an operating income of INR3.02 crore
and profit after tax of INR0.10 crore as against an operating
income of INR16.40 crore and profit after tax of INR0.12 crore for
FY12.
PURANDAR MILK: ICRA Assigns 'B-' Ratings to INR7cr Loans
--------------------------------------------------------
ICRA has assigned the long term rating of 'ICRA B-' to INR5.00
crore term loans, INR0.90 crore long term fund based facilities
and INR1.10 crore unallocated limits of Purandar Milk and Agro
Products Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term, fund 5.00 [ICRA]B- assigned
based limits-
Term Loans
Long term ,Fund 0.90 [ICRA]B- assigned
based limits-
Cash Credit
Long term 1.10 [ICRA]B- assigned
unallocated
limits
The assigned rating favorably factors in the PMAPL's established
relationship with farmers as also the track record of Silver
Jubilee Group in agri related businesses. The rating also derives
comfort from the sustainable demand for dairy products which form
a staple diet of Indian food as also the cold storage facilities
given the perishable nature of horticultural products. The rating
however is constrained with limited scale of operations as also
the stretched liquidity position marked by thin profit margins.
Further, the ongoing debt funded capex is likely to put pressure
on the capital structure of PMAPL. Milk, being an animal based
product, the availability is contingent on the agro climatic
conditions and health status of producer animals. Intense
competition on account of fragmented nature of the industry marked
by presence of number of large and small milk processors further
limits the profitability of the company. The dairy sector is also
vulnerable to regulatory changes like procurement pricing and
export restrictions ultimately influencing the revenues to the
company.
Purandar Milk and Agro Products Limited was established in 2000
and commenced operations in 2001.The Sanjay Jagtap promoted Silver
Jubilee group company is involved in procurement, processing and
sale of milk and milk products, trading of petroleum products,
petrol and diesel and weigh bridge operations. The milk
processing capacity of the company is 30,000 liters per day. The
company markets milk and milk products in the nearby metros under
the brand name ANANDI. The company is setting up of 5000 metric
ton per month capacity cold storage plant in Khalad, Dist. Pune
(Maharashtra)
SARAVANA GLOBAL: ICRA Assigns 'C-' Ratings to INR57.5cr Loans
-------------------------------------------------------------
ICRA has assigned the long-term rating of '[ICRA]C-' to the
INR28.7 crore term loans, INR25.0 crore cash credit and INR3.8
crore proposed bank facilities of Saravana Global Energy Limited.
ICRA has also assigned the short-term rating of '[ICRA]A4' to the
INR10.0 crore bills discounting and INR12.5 crore letters of
credit / bank guarantee facilities of SGEL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term, 28.7 [ICRA]C- assigned
term loans
Long-term, cash 25.0 [ICRA]C- assigned
credit facilities
Long-term, proposed 3.8 [ICRA]C- assigned
facilities
Short-term, bills 10.0 [ICRA]A4 assigned
discounting facilities
Short-term, letters 12.5 [ICRA]A4 assigned
of credit/bank
guarantees
The ratings assigned are constrained by the weak financial profile
with poor cash flows leading to defaults in repayment of loans
(that remain unrated) and the continuing over utilization of cash
credit account due to stretched receivables; the limited order
book position of as on date; and, the lack of presence in export &
project markets limiting overall top line. The ratings are also
constrained by the insulator industry remaining vulnerable to
cyclicality in the end-user industry and weak credit profile of
SEBs who remain the principal buyers; and, the intense competition
in the insulator industry from domestic organized players with
threat from Chinese imports expected to recede only gradually.
Besides, the growth of polymer insulators -- which the company is
increasingly focusing on -- remains to be seen given the
resistance from customers on account of overall track record of
such insulators.
The ratings, nevertheless, factor the organized and well
established presence of the company in the domestic insulator
manufacturing business particularly with market leading presence
in polymer insulators; reputed clientele with low churn and
supplies to major power transmission companies including SEBs;
favorable long term opportunities for the insulator industry
despite slowdown in the recent past on account of market
disruptive imports from China; and, the current duty protection to
the domestic industry in the form of imposition of safeguard duty;
besides, the prices of the domestic industry has reached parity
with imports.
The company had an operating income of INR41.3 crore, operating
loss of INR14.0 crore and net loss of INR38.5 crore in FY 2012
(September-ended) and, based on unaudited, provisional results, an
operating income of INR26.4 crore, operating profit of INR0.2
crore and net loss of INR18.4 crore for YTD FY 2014 (September-
ended).
Saravana Global Energy Limited (SGEL, formerly known as Saravana
Insulators Limited) was incorporated in 2003 by acquiring the
assets of Seshasayee Industries Limited, a sick unit. SGEL
manufactures alumina porcelain insulators in Unit I located at
Cuddalore, Tamil Nadu, with capacity of 15,000 tons per annum
(mtpa) and, polymer insulators in Unit II located in
Madhurandhakam, Tamil Nadu, with capacity of ~27,000 pieces per
annum for application in transmission lines, power equipment
manufactures, and railway electrification projects. The company
also has a separate division, Global Power Research Institute, a
National Accreditation Bureau of Laboratories (NABL) recognized
extra high voltage (EHV) testing lab in Cuddalore. The promoters
hold ~80% of the stake in the company in their personal capacity
while the remaining is held by a private equity participant.
S D BANSAL: ICRA Cuts Ratings on INR25.5cr Loans to 'C'
-------------------------------------------------------
ICRA has revised the long-term rating assigned to the INR1.50
crores term loan, INR12.00 unallocated limits and INR12.00 crores
cash credit of S D Bansal Iron & Steel Pvt. Ltd (SDBIS) to
'[ICRA]C' from '[ICRA]B+'.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits- 1.50 Downgraded to [ICRA]C
Term Loan
Fund Based Limits- 12.00 Downgraded to [ICRA]C
Unallocated
Fund Based Limits- 12.00 Downgraded to [ICRA]C
Cash Credit
The rating downgrade factors in low profitability and cash
accruals in the news division of the company which has lead to
delays in servicing of debt taken for that unit. The rating
continues to factor in high competitive pressures from numerous
organized and unorganized players in the industry which has
resulted in a decline in SDBIS's operating margins in FY13.
Moreover, company remains exposed to the adverse movements in raw
material prices given the inherent cyclical nature of the steel
industry in which it operates. The rating also factors in
company's high reliance on external debt which has resulted in
high gearing and high working capital intensity as evidenced by
high limits utilization in the past. This coupled with modest
profitability has resulted into modest debt protection metrics of
the company (NCA/TD of 8% and Interest coverage ratio of 2.47 in
FY13). Nevertheless, ratings derive some comfort from the partial
backward integration of SDBIS (induction furnace to manufacture MS
Ingots) and the experienced management of the company.
S.D. Bansal Iron & Steel Pvt. Ltd, a closely held company,
commenced its operations in financial year 2008-09 with the
establishment of 80,000 MT per annum capacity Rolling mill for
manufacturing Mild Steel bars. The group is promoted by Mr Anil
Bansal (Engineering Graduate, 20 years of experience in
construction) and Mr. Sunil Bansal (15 years exp in construction,
manufacturing, marketing and finance). In April 2011, the group
backward integrated into manufacturing of MS (Mild Steel) ingots
by setting up a 30,000 MTPA furnace. The company's products namely
MS bars find major applications in infrastructure sector and the
construction industry. The company belongs to Bansal Group of
Bhopal, which has diversified business operations across sectors
like education, construction, steel, media and solvent extraction.
In FY13, the company reported PAT of INR1.73 crores on operating
income of INR126.19 crores as against PAT of INR1.61 crores on
Operating income of INR105.35 crores in FY12.
SHARANAMMA DIGGAVI: ICRA Places 'D' Ratings ton INR8cr Loans
------------------------------------------------------------
ICRA has assigned a long term rating of '[ICRA]D' to INR6.29 crore
term loan of Sharanamma Diggavi Memorial Education Trust.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term(Term 6.29 [ICRA]D (Assigned)
Loan)-Allocated
Long Term (Term 1.71 [ICRA]D (Assigned)
Loan)-Proposed
For arriving at the rating, ICRA has taken into account the
consolidated business and financial risk profiles of SDME group of
Institutions given the fungible nature of the cash flows between
various entities (Trusts, Schools, PU College and Hostel) in the
group. While the trust operates primary school, high school, PU
College and hostel. At the trust level, the profile of Shree Guru
Vidya Peetha Primary School, Shree Guru Vidya Peetha High School,
Shree Guru Vidya Peetha Hostel, Shree Guru Vidya Peetha
Independent PU College of Science have been taken into
consideration for assigning the rating.
The assigned rating is constrained by the delays in debt servicing
by SDME in the recent past due to cash flow mismatch on account of
the lumpy nature of the cash flows with the fee being received
upfront at the beginning of the academic year vis-…-vis the debt
repayment happening every month. Besides, SDME has moderate scale
of operations as reflected by a topline of INR3.93 crore. SDME's
capital structure is moderately leveraged with a gearing of 1.88
times as on March 31, 2013. ICRA however takes note of experience
of trustee in education sector for more than 15 years and the
stable cash flows with regular fee based income.
Going forward, given the lumpy nature of cash flows of an
educational institute, SDME's ability to manage the cash flows
prudently and service its repayment obligations in a timely manner
will be the key rating sensitive factor.
Sharanamma Diggavi Memorial Education Trust (SDME) was formed and
registered as a Trust in the year October, 2006. SDME was
established by the educationist Mr. Basawaraj Diggavi Chairman of
SDME. For the Academic Year (AY) 2012-13, SDME operated three
educational institutions comprising of three schools (Primary
School, High School, and PU College) and one hostel. The managing
trustee is Sri. Basawaraj Diggavi and the family members are part
of the Board.
Recent Results
As per the provisional results for FY 2013, the trust reported a
profit after tax (PAT) of INR1.19 crore on operating income (OI)
of INR3.93 crore as against PAT of INR1.40 crore on OI of INR3.84
crore during FY 2012.
At a consolidated level, for FY 2013, the group reported profit
after tax (PAT) of INR2.97 crore on a turnover of INR10.15 crore
as against PAT of INR1.81 crore on OI of INR6.66 crore during FY
2012.
SHREE SIDDHNATH: ICRA Assigns 'B+' Ratings to INR50cr Loans
-----------------------------------------------------------
The long-term rating of '[ICRA]B+' has been assigned to the
INR50.00 crore cash credit facility of Shree Siddhnath Cotex Pvt.
Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 25.00 [ICRA]B+ assigned
Cash Credit (Proposed) 25.00 [ICRA]B+ assigned
The assigned rating is constrained by SCPL's weak financial
profile characterized by low profitability levels owing to the
limited value addition in the business and highly competitive and
fragmented industry structure, its stretched capital structure and
weak coverage indicators. The rating is also constrained by the
vulnerability of the company's profitability to raw material
prices, which are subject to seasonality, crop harvest and
regulatory risks with regards to MSP fixed by GoI and ban on
cotton exports.
The rating, however, positively considers the longstanding
experience of the promoters in the ginning industry coupled with
healthy growth in operating income for FY 13; and the advantage
the company enjoys by virtue of its location in cotton producing
belt of Saurashtra (Gujarat). The rating also takes into account
the stable demand outlook for cotton and cottonseeds.
Incorporated in 2008, Shree Siddhnath Cotex Private Limited (SCPL)
is engaged in the business of ginning and pressing of raw cotton
having an installed capacity of 85 TPD with its product profile
comprising of cotton bales and cotton seeds. The plant is located
at Chotila in Surendranagar district of Gujarat. SCPL was
erstwhile promoted by Mr. Girdhar Gangwani along with his family
members; however from April 2013, the company was taken over by
Mr. Suresh Lunagariya and his family members. Mr. Lunagariya has a
vast experience of around two decades in the industry by the
virtue of being a director/partner in other cotton ginning
companies.
SIDHIVINAYAK FILAMENTS: ICRA Puts 'B' Ratings on INR34.25cr Loans
-----------------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]B' to the INR22.90
crore term loans and INR11.35 crore fund based limits and a short
term rating of '[ICRA]A4' to the INR0.75 crore non fund based
facilities of Sidhivinayak Filaments Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term, 22.90 [ICRA]B assigned
term loans
Long-term, fund- 11.35 [ICRA]B assigned
based facilities
Short-term, non- 0.75 [ICRA]A4 assigned
fund-based
facilities
The ratings of the company are supported by the established track
record of the promoters in the textile industry and the strong
growth in revenues resulting from capacity addition and
diversification into knitted fabrics.
The ratings are however, constrained by the low margins on account
of low value add nature of operations, likely pressure on
profitability on account of higher input costs resulting from
sharp rupee depreciation and higher crude oil prices. ICRA also
notes the intense competition in the industry from large organised
as well as unorganised players owing to the commoditized nature of
product and the limited ability of the company to pass on price
increases to customers as well as the vulnerability of margins to
raw material prices given the limited bargaining power with
suppliers. The ratings are further constrained by the stretched
financial profile characterised by high gearing resulting from
ongoing debt funded capex.
Sidhivinayak Filaments Pvt. Ltd. is a manufacturer of texturized
yarn and knitted fabrics. The company was established in 1998. The
company operates 7 texturizing machines, 51 circular knitting
machines and 6 warp knitting machines in its manufacturing
facility located in Silvassa. The company is promoted and managed
by the Bajari family. Bajari Filaments Private Limited, promoted
by the Bajari family and in the same line of business, is a group
company of Sidhivinayak Filaments Pvt. Ltd.
Recent Results
As per provisional FY 2013 numbers, SFPL reported a PAT of INR1.2
crore on an operating income of INR180.5 crore in FY 2013 against
loss of INR0.9 crore and on an operating income of INR131.9 crore
in FY 2012.
SOU. SUSHILA: ICRA Assigns 'B+' Rating to INR25cr Term Loan
-----------------------------------------------------------
ICRA has assigned the '[ICRA]B+' rating to the INR25 crore term
loan facilities of Sou. Sushila Danchand Ghodawat Charitable
Trust.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 25.00 [ICRA]B+ assigned
The rating favorably factors in the strong financial support
extended by the promoting group company through timely infusion of
unsecured loans; healthy growth in the occupancy levels of the
trust's engineering and management institutes since their
inception; and the trust's extensive diversification across the
education spectrum, which is likely to support revenue generation
over the long term. The rating is, however, constrained by the
stretched financial profile of the trust with marginal accruals,
given the sub-optimal occupancy levels coupled with the financing
cost of the sizeable debt funded infrastructural development being
undertaken. ICRA notes that the colleges instituted by the trust
have a limited track record; and are yet to establish themselves
within the Kolhapur region, facing high competition from other
established institutes in the vicinity. While prospects for
quality higher education remain buoyant, any further debt-financed
expansion in the near term may have an adverse impact on the
liquidity position of the trust, given the moderate occupancy
levels currently.
SDGCT was set up by Mr. Sanjay Ghodawat - Chairperson of the
Ghodawat Group - with business interests in food products, solvent
extraction, property leasing, chemicals, wind power generation and
floriculture, among others. The Trust initially operated a blood
bank and setup a paramedical college in 2008, followed by the
engineering (bachelor's degree) and management institutes (degree)
in 2009. Since then the trust has also setup a school (CBSE and
IGCSE curriculum), a polytechnic diploma college, and started
offering master's degree for the engineering streams.
SPANDAN MULTISPECIALITY: ICRA Rates INR6.43cr Term Loan 'B'
-----------------------------------------------------------
ICRA has assigned a long term rating of '[ICRA]B' to INR6.43 crore
term loan facility of Spandan Multispeciality Hospital.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based-Term Loan 6.43 [ICRA]B Assigned
The assigned rating is constrained by startup nature of operations
with hospital under initial phases of construction and high
project gearing of the firm. The assigned rating also considers
possible time over-run which may lead to cost over-run due to
limited cushion available between expected project completion and
schedule loan repayment, this in turn may lead to liquidity
constraints. ICRA also takes a note of presence of many other
established medical facilities in close proximity of the project
which leads to high competitive pressure and augments market risks
during initial years of operations. Further, major clientele on
the firm would consist of rural clients, which could lead to
revenue constraints due to lack of health insurance covers in
rural areas. ICRA also takes a note on risk inherent to
partnership status of the firm.
The assigned ratings however favorably factors in long standing
experience with the partners being the medical practitioners
presently handling their own hospitals in Navsari. The ratings
also incorporate benefits arising from expected revenue
diversification since the firm plans to cater to several
disciplines of healthcare. ICRA also notes that the project has
achieved the financial closure with the equity infusion already
taken place and the debt being tied up by the firm, thereby
reducing the funding risk for the project.
The firm 'Spandan Multispeciality Hospital' was incorporated in
December 2012 with an objective to setup a multi-speciality
hospital in the name of 'Spandan Multi Speciality Hospital and
Research Centre' near Chikhli village in Navsari district of
Gujarat. The firm plans to accommodate facilities for all type of
general surgery including laparoscopic surgery along with plans to
cater to various disciplines namely, Obstetric & Gynecology,
Orthopedics, Pediatrics, ENT, Dermatology, Urology, Dental,
Gastroenterology, and few more. The hospital is expected to be
fully operational by October 2014.
SRI ONKAR: ICRA Reaffirms 'B-' Ratings on INR7.15cr Loans
---------------------------------------------------------
ICRA has reaffirmed the '[ICRA]B-' rating assigned to the INR5.25
crore cash credit facilities (enhanced from INR4.90 crore) and
INR1.90 crore term loan facilities (reduced from INR2.25 crore) of
Sri Onkar Cotton Agro Industries.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 1.90 [ICRA]B- Reaffirmed
Cash Credit 5.25 [ICRA]B- Reaffirmed
Reaffirmation of the rating takes into account the
unpredictability lent to the operations of the firm by the dynamic
regulatory environment coupled with the agro-climatic risks, low
profitability indicators inherent in the cotton ginning industry
and stretched capital structure characterized by high gearing and
weak debt coverage. The firm's operations remain modest with
margins largely a function of movements in the raw cotton and
ginned cotton price spread. However, ICRA draws comfort from the
company's favorable access to the raw material and the promoters'
experience of more than two decades in the ginning industry.
Sri Onkar Cotton Agro Industries is engaged in cotton ginning and
pressing with the product mix of cotton bales and cottonseed. It
has its production facilities at Basmath Road, Parbhani District
of Maharashtra. The firm has 24 DR gins with a total annual
capacity of 30,000 bales. The Firm is a partnership between
Kamalnarayan Mandhani, Mr. Pradeep Gholecha, Mr. Rajendra
Gholecha, Mr. Manish Mandhani and Mr. Yogesh Mandhani
SUN HOSPITALITY: ICRA Suspends 'B' Rating on INR12cr Term Loans
---------------------------------------------------------------
ICRA has suspended the long term of '[ICRA]B' assigned to the
INR12.0 crore term loan of Sun Hospitality and Service Apartments
Private Limited. The suspension follows ICRA's inability to carry
out a rating surveillance in the absence of the requisite
information from the company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 12.0 [ICRA]B Suspended
According to its suspension policy, ICRA may suspend any rating
outstanding if in its opinion there is insufficient information to
assess such rating during the surveillance exercise.
Sun Hospitality & Service Apartments Private Limited (SHSAPL),
established in April 2010, is a real estate company which has two
real estate projects underway. First project - a mix development
project at Mapusa Goa comprises development of 90,420 square feet
of space consisting of 108 units. The development is being carried
out on a 2,359 square meter plot of land owned by Mr. Raojee
Shivram Rane with whom SHSAPL has entered into an agreement to be
given 12,378 square feet of space in the building in lieu of the
land while the development would be the sole responsibility of
SHSAPL. The project cost is currently estimated at INR31.18 crore
to be funded by a mix of debt, equity and customer advances. The
second project is a residential project comprising development of
54 villas on a land which has been bought by SHSAPL. The project
would entail a cost of INR43.21 which would be funded largely by
customer advances and part equity and debt.
SHSAPL is promoted by Mr. Prakash Sheth, Mr. Sanket Sheth and Mr.
Saurabh Sheth and is a closely held company. The promoters have
extensive experience in real estate development having completed
multiple projects in Mumbai, Lonavala and having projects underway
in Cochin and Lonavala.
SUNRISE GINNING: ICRA Reaffirms 'B' Rating on INR10.5cr Loan
------------------------------------------------------------
ICRA has reaffirmed the '[ICRA]B' rating for the INR10.50 crore
fund based facilities of Sunrise Ginning Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term fund 10.50 [ICRA]B reaffirmed
based-Cash Credit
The ratings continue to be constrained by Sunrise Ginning Pvt
Ltd's weak financial profile as reflected in low profitability,
adverse capital structure, weak debt coverage indicators and
stretched liquidity position. The ratings also take into account
the low value additive nature of operations and the intense
competition on account of the fragmented industry structure
leading to thin profit margins. The ratings are further
constrained by the vulnerability to adverse fluctuations in raw
material prices which are subject to the seasonal availability of
raw cotton and government regulations on the minimum support price
(MSP) for the procurement of raw cotton and the export quota for
cotton bales.
The ratings, however, positively factor in the long experience of
the promoters in the cotton ginning and pressing business, the
favorable location of the company giving it easy access to raw
cotton and the positive demand outlook for cotton and cotton seed
in India.
Sunrise Ginning Pvt. Ltd. was incorporated in 2006 as a closely
held company. It is currently engaged in the cotton ginning,
pressing and crushing business with 24 ginning machines, one
pressing machine and four expellers. The plant is located at
Dhoraji, Gujarat and the installed capacity is 7,128 MTPA and 612
MTPA respectively. The ownership and management of the company was
taken over by Mr. Harsukh Lakkad and Mr. Pradeepkumar Lakkad along
with other shareholders in Aug '08.
UNITECH COTSPIN: ICRA Assigns 'B' Ratings to INR27.1cr Loans
------------------------------------------------------------
A rating of '[ICRA]B' has been assigned to the INR23.60 crore term
loan and INR3.50 crore cash credit facility of Unitech Cotspin
Limited. A rating of '[ICRA]A4' has also been assigned to the
INR1.50 crore non-fund based facilities of UCL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 3.50 [ICRA]B assigned
Term Loan 23.60 [ICRA]B assigned
Bank Guarantee 1.50 [ICRA]A4 assigned
The assigned ratings are constrained by Unitech Cotspin Limited's
relatively small scale of operations with limited track record, as
well as weak financial profile as reflected by adverse capital
structure, weak debt coverage indicators and high working capital
intensity. The ratings also take into account the vulnerability of
profitability to adverse fluctuations in cotton prices considering
the high inventory maintained by the company. Further the capital
structure and credit metrics is expected to remain stretched,
given the debt funded expansion and high working capital
intensity.
The assigned ratings, however, favourably consider the promoters'
experience in the cotton industry through the associate concern
engaged in cotton ginning and the fiscal benefits in terms of
interest subsidy, subsidized power tariff and refund of VAT.
Incorporated in 2007, Unitech Cotspin Limited was promoted by Mr.
Manubhai Patel and Mr. Hasmukh Patel. However in May, 2011 it was
taken over by present promoters Mr. Mahesh Patel, Mr. Narendra
Patel and Mr. Pravin Khut having vast experience in textile
industry. The company is engaged in the manufacture of cotton yarn
ranging between 24's to 40's with 29376 spindles of installed
capacity of 5470MT per annum.
Recent Results
During FY 2013, UCL reported an operating income of INR12.56 crore
and profit before tax of INR0.58 crore.
YASHVEER CERAMIC: ICRA Ups Ratings on INR7.25cr Loans to 'B+'
-------------------------------------------------------------
ICRA has upgraded the rating assigned to INR7.25 crore fund based
facilities of Yashveer Ceramic from '[ICRA]B' to '[ICRA]B+'. ICRA
has also reaffirmed the short term rating of '[ICRA]A4' to INR1.00
crore short-term non-fund based facility of Yashveer Ceramic.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term fund 2.00 [ICRA]B+ revised
based-Cash Credit
Long term fund 5.25 [ICRA]B+ revised
based- Term loans
Short term non 1.00 [ICRA]A4 reaffirmed
fund based-Bank
guarantee
The revision in long term rating factors in the improvement in
operational profile of YC resulting from its ability to scale up
its operations and achieve healthy plant utilization levels of 68%
in its first full year of operations and modest improvement in
profitability and capital structure. Nevertheless, the financial
profile continues to remain weak as reflected by low profitability
and coverage indicators and high gearing levels. The ratings
further continue to remain constrained by YC's modest track record
of operations and limited distribution network which along with
the high competitive intensity is likely to exert pressure on
margins. ICRA also notes the dependence of operations and cash
flows of the firm on the performance of the real estate industry
which is the main consumer sector and vulnerability of
profitability to increasing prices of gas and power.
The ratings however continue to consider the experience of the key
promoters in the ceramic industry and location advantage enjoyed
by YC giving it easy access to raw material.
Yashveer Ceramic is a wall tiles manufacturer with its plant
situated at Morbi, Gujarat. The firm was established in 2010, and
commenced commercial operations from May 2011. Yashveer Ceramics
is promoted by Mr. Vipul Patel having 10 years of experience in
ceramic industry along with other partners. The plant has an
installed capacity of 20,250 TPA. It currently manufactures wall
tiles of sizes 18"x12" and 12"x24" with the current set of
machineries and production facilities.
=================
I N D O N E S I A
=================
BORNEO LUMBUNG: Proposes Debt Restructuring Plan
------------------------------------------------
The Jakarta Post reports that PT Borneo Lumbung Energi & Metal is
seeking a longer maturity period for the company's debts with
Standard Chartered Bank.
According to the report, President director Alexander Ramlie said
Borneo had proposed an extension of the maturity period for
between US$300 million to US$500 million of its debts to the bank
to seven to eight years from five years at present.
The loan's outstanding amount stood at US$795 million as of the
end of September, the report notes.
"We will pay part of the debt by dividend to be paid by Bumi plc.
Borneo's portion of the dividend is around $200 million. If we get
money from selling [the company's main asset] PT Asmin Koalindo
Tuhup, we will also use that," the report quotes Mr. Ramlie as
saying.
The Jakarta Post notes that Borneo in January 2012 obtained loans
worth $1 billion from the bank to purchase 23.8 percent stake in
London listed Bumi plc from the Bakrie Group. The loans carried an
interest rate of 5.65 percent above LIBOR (London Interbank
Offered Rate) for offshore lenders and 6.15 percent above LIBOR
for onshore lenders.
"We hope that there will be no interest rate increase. We are also
discussing to remove some covenants, including the debt to EBITDA
[earnings before interest, tax, depreciation and amortization]
ratio," Mr. Ramlie said after the company's annual meeting of
shareholders on October 16, The Jakarta Post reports.
The report relates that finance director Kenneth Allan said Borneo
had paid $205 million to the bank, including quarterly
installments made this year of $35 million per three months.
"All installments are from internal cash. We will pay another
$35 million in this fourth quarter or lower if we reach a
restructuring deal," Mr. Ramlie, as cited by The Jakarta Post,
said.
PT Borneo Lumbung Energi & Metal Tbk engages in the mining and
production of hard coking coal in Indonesia.
MODERNLAND REALTY: Fitch Rates Sr. Unsec. US-Dollar Notes at 'B'
---------------------------------------------------------------
Fitch Ratings has assigned Indonesia-based PT Modernland Realty
Tbk's (Modernland) proposed senior unsecured US dollar notes due
in 2016 an expected rating of 'B(EXP)' with Recovery Rating of
'RR4'. Fitch has also affirmed the Long-Term Issuer Default Rating
(IDR) at 'B' with Stable Outlook and the senior unsecured rating
at 'B'.
The proposed notes are to be issued by Modernland Overseas Pte Ltd
and guaranteed by Modernland and its wholly owned subsidiaries.
The final rating is contingent upon receipt of documents
conforming to information already received.
Proceeds from the notes will be used to acquire 51% of the Jakarta
Garden City project from Keppel Land (Keppel, unrated). Due to the
long-term payback nature of the acquisition, Fitch expects
Modernland will be able to refinance the notes when they are due
in 2016.
Key Rating Drivers
Limited Recurring Income: Modernland's limited recurring revenue
differentiates it from higher rated global peers. Recurring
revenue is derived from estate management fees and newly opened
hotel operations. However, these segments contribute less than 10%
of annual EBITDA. Fitch views Modernland's small recurring revenue
base as the main constraint on its ratings, particularly given the
cyclical nature of the property development sector.
Execution Risks: Jakarta Garden City's strategic locations,
established infrastructure, affordability compared with other
properties in the Kelapa Gading district, in northern Jakarta,
underpin Modernland's business growth prospects. The project is
currently a joint venture with Keppel and both parties have agreed
on Modernland acquiring Keppel's 51% share in the project.
However, in Fitch's view, Modernland has yet to demonstrate a
track record of strong presales without Keppel's support.
Similar risks are also present in Modernland's longer-term
expansion plan in Bekasi, an important satellite city about 16 km
from Jakarta, where success is contingent upon the timely
execution of accompanying infrastructure and the company's ability
to build critical mass.
Project Diversification: The ratings also reflect Modernland's
sizable landbank, which is diversified by location and evenly
balanced between industrial and residential use. Over the next 18
months, cashflows will be driven by presales from residential
estate Jakarta Garden City and industrial estate Modern Cikande.
Over the longer term, the company will also look to launch its
second industrial estate in Bekasi.
Cash Buffer from ASRI: Cashflows from land sales to PT Alam Sutera
Realty Tbk (ASRI, B+/Stable) mitigate the execution risks by
providing sufficient liquidity. Modernland expects to receive
IDR3.4trn over the next 30 months after selling 170 hectares of
land in Serpong, Tangerang, which is close to Jakarta and near
ASRI's existing residential estate. Proceeds will be used mostly
to buy land in Bekasi, which will enable Modernland to replenish
land inventory for sustainable presales and cashflows.
Modernland's low acquisition cost of about USD20 per square metre
for 489 hectares of land in Bekasi is an additional comfort and
reduces project execution risks.
Rating Sensitivities
Negative: Future developments that may, individually or
collectively, lead to negative rating action include:
-- Decline in presales/ gross debt ratio to below 30% (2013:
Fitch forecast at 30%) on a sustained basis
-- Net debt/net inventory remaining above 1x after 2015
(2013: Fitch forecast 1.4x), possibly resulting from
delayed project execution or weaker pre-sales.
Positive rating action is not expected unless Modernland
demonstrates a track record in timely project execution, leading
to improved scale and project diversification, or improved
recurring income.
MODERNLAND REALTY: Moody's Affirms (P)B2 Corporate Family Rating
----------------------------------------------------------------
Moody's Investors Service has affirmed PT Modernland Realty Tbk's
(P)B2 corporate family rating.
Moody's has also affirmed the (P)B2 rating of the proposed senior
unsecured notes to be issued by Modernland Overseas Pte Ltd -- an
entity wholly owned by Modernland -- and guaranteed by Modernland
and its subsidiaries.
The ratings outlook is stable.
The provisional status of the ratings will be removed upon the
completion of the bond issuance and Modernland's proposed
acquisition of a 51% stake in PT Mitra Sindo Sukses (MSS) and PT
Mitra Sindo Makmur (MSM) -- together known as Jakarta Garden City
(JGC) -- from Keppel Land Limited (unrated).
Modernland currently owns a 49% interest in MSS and MSM.
Modernland plans to use the proceeds from the bond issuance for
the acquisition of JGC.
Ratings Rationale:
Moody's has affirmed the ratings of Modernland, originally
assigned on 29 July, following the amendment of terms related to
the proposed senior unsecured notes.
Moody's rating rationale was set out in a press release issued on
that date. Moody's also explained its rating rationale more fully
in a New Issuer Report and Credit Opinion; both of which were
published on the same date as the press release.
Following the amendments, Modernland intends to issue a shorter
tenor bond. Proceeds from the issuance will be used solely for the
acquisition of JGC.
"While the shorter tenor will result in a weaker debt maturity
profile, Moody's believes Modernland will continue to generate
sufficient cash flows internally and through land sales to Alam
Sutera to service its debt maturities over the next 12-18 months,"
says Jacintha Poh, a Moody's Analyst.
"We expect the company to maintain its current strategic direction
and transform its business profile to encompass the development of
industrial towns and residential townships," adds Poh.
Moody's will continue to monitor the performance of Modernland
over the next six to 12 months, to ensure that it is progressing
on track and within Moody's expectations.
"We remain concerned about Modernland's ability to execute the JGC
project without the involvement of its larger and more experienced
partner, Keppel Land, given that Modernland has a lack of track
record in executing projects of this magnitude," says Poh.
However, Moody's is cautious over possible over-ambitious land
acquisitions by Modernland at Cikande and Bekasi.
The stable outlook reflects Moody's expectation that Modernland
will maintain financial discipline while pursuing growth and
achieve its sales targets and grow its operational cash flow;
supported by contractual payments from Alam Sutera (B1 stable)
over the next 24 months.
Upward rating pressure is unlikely over the near to medium term,
but could emerge if Modernland can: (1) roll out its expansion
strategy successfully, supported by sustained improvements in
sales performance and positive free cash flow generation; (2)
lengthen its debt maturity profile; and (3) demonstrate solid
liquidity through cash balances and committed facilities.
The credit metrics that will support an upgrade include adjusted
EBITDA/interest coverage above 4.0x, adjusted leverage below 45%,
adjusted debt/EBITDA below 3.5x and total revenues of more than
IDR4.0 trillion on a sustained basis.
On the other hand, downward rating pressure could emerge if
Modernland's financial and liquidity profiles weaken, owing to:
(1) problems related to the implementation of its business plan
and difficulties associated with meeting its sales targets,
particularly at JGC; (2) a weakening of the property market in
Indonesia; and (3) a weakening of Alam Sutera's credit profile,
such as to adversely affect Alam Sutera's ability to service
installment payments on land purchases from Modernland.
Further downward pressure could also emerge if Modernland does not
have a refinancing plan for its US dollar bond issuance well in
advance of the proposed maturity date in October 2016.
Moody's considers the following as triggers for a rating
downgrade: adjusted EBITDA/interest coverage below 2.0x, adjusted
leverage above 50%, adjusted debt/EBITDA above 5.0x, total
revenues below IDR1.8-2.0 trillion and negative free cash flows on
a consistent basis.
=========
J A P A N
=========
TOKYO ELECTRIC: To Map Out New Business Revamp Plan in Late Nov.
----------------------------------------------------------------
Jiji Press reports that Tokyo Electric Power Co. plans to map out
a new business reconstruction plan in late November.
Jiji Press relates that sources said the utility briefed creditor
banks about the plan. Tepco's present plan calls on it to return
to profitability in the current business year to next March, the
report notes.
According to JiJi Press, sources said that in the new plan, Tepco
will increase the size of its cost cuts and show when it aims to
restart reactors 6 and 7 at the Kashiwazaki-Kariwa nuclear plant
in Niigata Prefecture.
Tepco has asked the Nuclear Regulation Authority for safety checks
of the reactors under new regulatory safety standards, the report
relays.
Jiji Press says Tepco plans to obtain fresh loans worth some
JPY300 billion and refinance loans worth some JPY200 billion
possibly in December. Banks are expected to accept additional
loans after examining the new business plan, a step to ease
concerns over the company's financing, relates Jiji Press.
For its reconstruction, Jiji notes, Tepco has to assess how much
it should bear in costs for decontamination and other measures in
dealing with the meltdown disaster that started in 2011 at its
Fukushima No. 1 plant.
According to the report, the current business plan endorsed by the
government in May 2012 does not state Tepco's share of such costs,
which may exceed JPY10 trillion, with the company unable to draw
any concrete road map for its reconstruction.
Tepco is thus expected to accelerate negotiations with the
government in order to show a certain course in the new plan, the
sources, as cited by Jiji Press, said.
About Tokyo Electric
Tokyo Electric Power Company is the largest electric power
company in Japan and the largest privately owned electric
utility in the world. TEPCO supplies electricity to meet the
increasingly diversified and sophisticated demands of its over
28.09 million customers in the metropolitan Tokyo, which is the
political, economic, and cultural center of Japan, and eight
surrounding prefectures.
Bloomberg News said the utility is battling radiation leaks at
the Fukushima Dai-Ichi power plant north of Tokyo after a
March 11 earthquake and tsunami knocked out its cooling systems,
causing the biggest atomic accident in 25 years. More than
50,000 households were forced to evacuate and Bank of America
Corp.'s Merrill Lynch estimates TEPCO may face compensation
claims of as much as JPY11 trillion (US$135 billion).
As reported in the Troubled Company Reporter-Asia Pacific on
May 11, 2012, Bloomberg News said Japan's government took control
of Tepco and agreed to provide JPY1 trillion (US$12.5 billion) as
part of the nation's largest bailout since the rescue of the
banking industry in the 1990s.
Bloomberg related that the government will obtain more than 50%
of the voting rights in the utility under a 10-year plan approved
on May 8 by Trade and Industry Minister Yukio Edano. The
government stake may rise to two-thirds if TEPCO fails to meet
goals that include cost cuts and compensation payments, said
Bloomberg.
Under the plan, Bloomberg disclosed, the utility aims for an
unconsolidated profit of JPY106.7 billion in the year ending
March 2014, based on an electricity rate increase and the restart
of the Kashiwazaki Kariwa nuclear station. Bloomberg says
nationalization of TEPCO paves the way for the government to
restructure the electricity industry monopolized by regional
utilities and possibly break up power generation and transmission
networks to allow more competition.
TOKYO ELECTRIC: Creditors Agree to Roll Over JPY77BB Loan
---------------------------------------------------------
Lisa Twaronite at Reuters, citing the Nikkei business daily,
reports that Sumitomo Mitsui Banking Corp. and 27 other financial
institutions have agreed to roll over a roughly JPY77 billion
($783 million) syndicated loan for Tokyo Electric Power Co. due to
mature at the end of the month.
Reuters says Tepco has lost $27 billion since the 2011 disaster at
its Fukushima Daiichi nuclear plant, and faces massive liabilities
as it decommissions the facility, compensates tens of thousands of
residents forced to evacuate, and pays for decontamination of an
area nearly the size of Connecticut.
The SMBC-led group includes Sumitomo Mitsui Trust Bank, Gunma
Bank, Chiba Bank, and a number of prefecture-based agricultural
cooperatives, Reuters relates.
Tepco's major banks are prepared to provide JPY500 billion in
financing in December -- JPY200 billion in loan rollovers and
JPY300 billion in new financing, a person involved in the talks
told Reuters last month.
About Tokyo Electric
Tokyo Electric Power Company is the largest electric power
company in Japan and the largest privately owned electric
utility in the world. TEPCO supplies electricity to meet the
increasingly diversified and sophisticated demands of its over
28.09 million customers in the metropolitan Tokyo, which is the
political, economic, and cultural center of Japan, and eight
surrounding prefectures.
Bloomberg News said the utility is battling radiation leaks at
the Fukushima Dai-Ichi power plant north of Tokyo after a
March 11 earthquake and tsunami knocked out its cooling systems,
causing the biggest atomic accident in 25 years. More than
50,000 households were forced to evacuate and Bank of America
Corp.'s Merrill Lynch estimates TEPCO may face compensation
claims of as much as JPY11 trillion (US$135 billion).
As reported in the Troubled Company Reporter-Asia Pacific on
May 11, 2012, Bloomberg News said Japan's government took control
of Tepco and agreed to provide JPY1 trillion (US$12.5 billion) as
part of the nation's largest bailout since the rescue of the
banking industry in the 1990s.
Bloomberg related that the government will obtain more than 50%
of the voting rights in the utility under a 10-year plan approved
on May 8 by Trade and Industry Minister Yukio Edano. The
government stake may rise to two-thirds if TEPCO fails to meet
goals that include cost cuts and compensation payments, said
Bloomberg.
Under the plan, Bloomberg disclosed, the utility aims for an
unconsolidated profit of JPY106.7 billion in the year ending
March 2014, based on an electricity rate increase and the restart
of the Kashiwazaki Kariwa nuclear station. Bloomberg says
nationalization of TEPCO paves the way for the government to
restructure the electricity industry monopolized by regional
utilities and possibly break up power generation and transmission
networks to allow more competition.
====================
S O U T H K O R E A
====================
TONG YANG: FSC Will Deal With Group 'By The Book', Chief Says
-------------------------------------------------------------
Yonhap News Agency reports that the financial regulator will
ensure that the probe into the debt-saddled Tong Yang Group is
done by principle to bring those responsible to account and
minimize investor losses, its chief said October 17, amid growing
criticism that the regulator failed to prevent the crisis from
occurring.
"We won't allow any tolerance or hesitation whatsoever in
executing the probe on Tong Yang Group. Everything will be done as
a matter of principle," Shin Je-yoon, the chairman of the
Financial Services Commission (FSC), said before lawmakers at a
parliamentary audit, Yonhap reports.
Yonhap notes that Mr. Shin's remarks came as South Korea's 38th-
largest conglomerate has been put under a debt rescheduling
process since late September after it failed to pay back maturing
short-term debts worth some KRW110 billion (US$103.1 million) on
time.
The liquidity shortage has so far placed five Tong Yang Group
units under court receivership, leaving tens of thousands of
individual investors who bought the firm's bonds on the verge of
losing their money, Yonhap relays.
According to the report, the FSC has launched an all-out
investigation into the cash-strapped firm to see if there were any
activities of unfair trading headed by the group's family members
or executives to avert losses.
Yonhap says retail investors, with the help of a local consumer
advocate group, have staged rallies in protest, blaming the
regulatory authorities for overlooking Tong Yang's financial flaws
prior to the impending crisis.
In response to the growing criticism, Yonhap relates, Mr. Shin
vowed to hold those in charge of the Tong Yang bond sales
responsible with heavy punishment if any irregularities are
discovered through the probe.
He stressed that the FSC will help small investors receive full
support with any legal procedures they want to pursue against Tong
Yang Group, as well as working to ameliorate rules so as to
prevent a corporate default beforehand, the report adds.
Tong Yang Group is a South Korean conglomerate founded in 1957 as
a cement manufacturer. The company through its subsidiaries,
engages in constructing houses, and roads and harbors. Its
products include ready mixed concrete, PHC piles, admixture, low
heat cement, low-heat portland cement, portland cement, and blast
furnace slag cement.
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel
Elaine T. Fernandez, Julie Anne L. Toledo, Frauline S. Abangan,
and Peter A. Chapman, Editors.
Copyright 2013. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000 or Nina Novak at 202-241-8200.
*** End of Transmission ***