/raid1/www/Hosts/bankrupt/TCRAP_Public/131122.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, November 22, 2013, Vol. 16, No. 232
Headlines
A U S T R A L I A
CENTRE FORD: Dealership Goes Into Liquidation
LIBERTY FINANCIAL: S&P Revises Outlook to Positive
WATER ENGINEERS: Receivers Put Assets on the Market
C H I N A
LDK SOLAR: To Release Third Quarter Results on Nov. 26
I N D I A
A R R SRINIVASAN: CARE Rates INR12.75cr LT Bank Loans at 'BB'
ADITYA STEEL: CRISIL Suspends 'BB-' Ratings on INR180MM Loan
AMURTHA TEXTILES: CRISIL Cuts Ratings on INR86.8MM Loans to 'D'
ANANDA ENTERPRISES: CRISIL Suspends B+ Ratings on INR247.2MM Loan
APEX TARMAC: CARE Revises Rating on INR12cr LT Loans to 'BB+'
ARRS SILKS: CARE Rates INR28.93cr LT Bank Loans at 'BB'
ARRS THANGAMALIGAI: CARE Rates INR17cr LT Bank Loans at 'BB'
B. D. TEXTILE: CRISIL Suspends 'B+' Rating on INR110MM Loans
BEE INTERNATIONAL: CRISIL Suspends 'BB' Rating on INR100MM Loan
BILDON STEELS: CRISIL Suspends 'D' Ratings on INR260MM Loans
CEEDEEYES SOFTWARE: CARE Assigns 'BB' Rating to INR33.75cr Loans
CHAITANYA SAI: CRISIL Reaffirms 'D' Ratings on INR90MM Loans
EXICOM TELE-SYSTEMS: CRISIL Suspends 'B' Rating on INR80MM Loan
HPC ELECTRICAL: CRISIL Suspends 'BB' Rating on INR35MM Loan
IMAGE LABELS: CRISIL Reaffirms 'D' Ratings on INR102.5MM Loans
JAI GOPAL: CRISIL Suspends 'BB' Ratings on INR80MM Loans
JAI SAKTHI: CARE Assigns 'B+' Rating to INR9.32cr LT Bank Loans
JATAN CONSTRUCTIONS: CRISIL Suspends 'BB' Rating on INR50MM Loan
K.K. BUILDERS: CRISIL Cuts Rating on INR45MM Loan to 'C'
KETI CONSTRUCTIONS: CRISIL Suspends BB+ Ratings on INR440MM Loans
KRISHNA INSTITUTE: CRISIL Cuts Ratings on INR1.6BB Loans to 'BB+'
LIFE SHINE: CRISIL Reaffirms 'D' Rating on INR180MM Term Loan
LOK PRIYA: CARE Rates INR213.98cr LT Loans at 'BB-'
MG WELL: CRISIL Suspends 'D' Ratings on INR140.5MM Loans
MIRC ELECTRONICS: CRISIL Cuts Ratings on INR3.25BB Loans to 'BB+'
MODERN EDUCATION: CRISIL Reaffirms 'D' Rating on INR200MM Loan
MODERN FORGINGS: CRISIL Places 'B' Ratings on INR142.2MM Loans
MODY DECORA: CRISIL Suspends 'D' Ratings on INR145MM Loans
MURALI & CO: CRISIL Assigns 'B+' Ratings to INR50MM Loans
NEW LAKSHMI: CARE Assigns 'BB-' Rating to INR10cr LT Bank Loans
NIPANI INDUSTRIES: CARE Reaffirms 'BB+' Rating on INR4.2cr Loans
NIRANJAN METALLIC: CRISIL Suspends 'BB' Ratings on INR100MM Loan
NRI SERVICE: CARE Assigns 'B' Rating to INR3.38cr LT Bank Loans
PATEL MOTORS: CRISIL Reaffirms 'B' Rating on INR669MM Loans
PAWA BUILDERS: CRISIL Suspends 'B+' Rating on INR125MM Loans
POABS ENTERPRISES: CRISIL Suspends 'D' Ratings on INR600M Loans
PRECISION AUTO: CRISIL Suspends 'D' Ratings on INR80MM Loans
PRIME CIVIL: CRISIL Reaffirms 'BB-' Rating on INR100MM Loan
SAGAR STEEL: CRISIL Assigns 'B-' Rating to INR90MM Loan
SAKAR GLAZED: CRISIL Upgrades Ratings on INR290MM Loans to 'B-'
SANGHAR EXPORTS: CRISIL Suspends 'BB' Rating on INR280MM Loan
SHAKEEL HAIDER: CRISIL Suspends 'BB+' Rating on INR20MM Loan
SHARADA EDUCATION: CRISIL Rates INR110MM Term Loan at 'B-'
SILVER SIGN: CRISIL Reaffirms 'B' Ratings on INR50MM Loans
SILVERLINE ELECTRICALS: 'B' Ratings on INR32.5MM Loans Reaffirmed
SRI KARUNAMBIKAI: CRISIL Suspends 'B' Ratings on INR745.3MM Loans
SRIKARA PARENTERALS: CRISIL Suspends 'D' Ratings on INR68MM Loans
SUPREME COT-SPIN: CRISIL Suspends 'D' Ratings on INR263.8MM Loans
TILAK RAM: CRISIL Reaffirms 'B' Rating on INR100MM Cash Credit
VELAMMAL SUBBIAH: CRISIL Reaffirms 'D' Rating on INR120MM Loan
VENKETESHUDYOG: CARE Assigns 'B-' Rating to INR10cr LT Bank Loans
VIKAS STRIPS: CRISIL Suspends 'BB' Rating on INR170MM Loan
VINDHYABASINI RICE: CRISIL Assigns 'B+' Ratings to INR100MM Loans
I N D O N E S I A
* Fitch Says Home Sales to Decline; Price Growth to Slow in 2014
J A P A N
SONY CORP: Fitch Affirms Long-term IDRs at BB-; Outlook Neg.
TOKYO ELECTRIC: Seeks JPY2 Trillion Loan for New Power Plants
N E W Z E A L A N D
CHORUS LTD: Review May Lack Transparency, Labour Says
S O U T H K O R E A
HYUNDAI MERCHANT: To Sell Pusan Newport to Avoid Liquidity Crisis
V I E T N A M
TRANG AN SECURITIES: To Transfer Accounts to Viet Nam Investment
* VIETNAM: Debts Restructured to Support Failing Firms
X X X X X X X X
* Large Companies with Insolvent Balance Sheets
- - - - -
=================
A U S T R A L I A
=================
CENTRE FORD: Dealership Goes Into Liquidation
---------------------------------------------
ABC News reports that Centre Ford, one of West Australia's leading
Ford dealerships has gone into liquidation.
Centre Ford in Northbridge shut its doors earlier this month and
has now been placed in the hands of liquidators Crowe Horwarth,
the report says.
According to the report, Principal Mervyn Kitay said about 30
staff have been sacked and 100 creditors, mostly suppliers, have
been affected.
"At this stage, the prospect of recovery for the creditors is
inherently uncertain and we'll be working primarily with employees
to try to recover as much of their entitlements as possible," the
report quotes Mr. Kitay as saying.
LIBERTY FINANCIAL: S&P Revises Outlook to Positive
--------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on Liberty
Financial Ltd. (LFL) to positive from stable. At the same time
S&P affirmed the issuer credit ratings on LFL at 'BB+/B'.
"The revision of the outlook to positive reflects our expectation
that higher earnings potential of LFL's Australian parent, Liberty
Financial Pty Ltd. (not rated) in the context of the guarantee
provided by the parent to the benefit of LFL's debenture holders,"
said credit analyst Harry Hu. "It also reflects our opinion that
potential extraordinary liquidity and/or capital support would be
immediately forthcoming to LFL from its parent company to assist
in LFL in meeting its other obligations."
The positive outlook reflects a one-in-three chance of an one-
notch uplift over the next two years. S&P's outlook and rating on
LFL is most likely to change in line with its view of Liberty,
being the provider of the debenture stock guarantee.
"It is highly likely that we would lower our rating on LFL if the
guarantee provided by Liberty were withdrawn, if the coverage
provided by the guarantee was to weaken, or if unguaranteed third-
party bank or other borrowings were to increase materially", said
Mr. Hu,
"LFL's stand-alone credit profile could come under pressure if the
performance of the underlying assets relating to its structured
notes deteriorates materially, or more generally if earnings were
to come under pressure. The company's SACP could also come under
pressure if LFL embarks on an aggressive asset-growth path that
contributes to deterioration in its key financial metrics."
The issuer credit ratings on LFL, a small New Zealand-based
finance company, primarily reflect S&P's opinion of the
unconditional, irrevocable, and timely guarantee provided to the
company for the benefit of debenture holders by its parent,
Australian-based Liberty; as well as potential extraordinary
liquidity and/or capital support that we believe would be
immediately forthcoming to LFL from its parent company to assist
LFL in meeting its other obligations, in the event such support
were required.
WATER ENGINEERS: Receivers Put Assets on the Market
---------------------------------------------------
Cliff Sanderson at Dissolve.com.au reports that the assets of
Water Engineers Australia Pty Ltd are put on the market by
receivers from PricewaterhouseCoopers. PWC's Guy Edwards --
guy.edwards@au.pwc.com -- and Darryl Kirk --
darryl.kirk@au.pwc.com -- were appointed as managers and receivers
of Water Engineers on Sept. 26, 2013.
Dissolve.com.au relates that the same announcement is made for
Anode Technologies Pty Ltd. The sale of the company's assets is
also under instructions from receivers and managers
Messrs. Edwards and Kirk. The offers are composed of stock as
well as equipment and plant, the report says.
=========
C H I N A
=========
LDK SOLAR: To Release Third Quarter Results on Nov. 26
------------------------------------------------------
LDK Solar Co., Ltd., will report financial results for the third
quarter ended Sept. 30, 2013, before the market opens on Tuesday,
Nov. 26, 2013. The company will host a corresponding conference
call and live webcast at 8:00 a.m. Eastern Time (ET) the same day.
To listen to the live conference call, please dial 1-877-941-2068
(within U.S.) or 1-480-629-9712 (outside U.S.) at 8:00 a.m. ET on
Nov. 26, 2013. An audio replay of the call will be available
through Dec. 6, 2013, by dialing 800-406-7325 (within U.S.) or
303-590-3030 (outside U.S.) and entering the access code 4649644#.
A live webcast of the call will be available on the Company's
investor relations Web site at http://investor.ldksolar.com
About LDK Solar
LDK Solar Co., Ltd. -- http://www.ldksolar.com-- based in Hi-
Tech Industrial Park, Xinyu City, Jiangxi Province, People's
Republic of China, is a vertically integrated manufacturer of
photovoltaic products, including high-quality and low-cost
polysilicon, solar wafers, cells, modules, systems, power
projects and solutions.
LDK Solar was incorporated in the Cayman Islands on May 1, 2006,
by LDK New Energy, a British Virgin Islands company wholly owned
by Xiaofeng Peng, LDK's founder, chairman and chief executive
officer, to acquire all of the equity interests in Jiangxi LDK
Solar from Suzhou Liouxin Industry Co., Ltd., and Liouxin
Industrial Limited.
LDK Solar Co disclosed a net loss of $1.05 billion on $862.88
million of net sales for the year ended Dec. 31, 2012, as compared
with a net loss of $608.95 million on $2.15 billion of net sales
for the year ended Dec. 31, 2011. The Company's balance sheet at
June 30, 2013, showed US$4.37 billion in total assets, US$4.79
billion in total liabilities, US$382.84 million in redeemable non-
controlling interests, and a US$794.58 million total deficit.
KPMG, in Hong Kong, China, issued a "going concern" qualification
on the consolidated financial statements for the year ended
Dec. 31, 2012. The independent auditors noted that the Group has
a net working capital deficit and a deficit in total equity as of
Dec. 31, 2012, and is restricted from incurring additional
indebtedness as it has not met a financial covenant ratio as
defined in the indenture governing the RMB-denominated US$-settled
senior notes. These conditions raise substantial doubt about the
Group's ability to continue as a going concern.
=========
I N D I A
=========
A R R SRINIVASAN: CARE Rates INR12.75cr LT Bank Loans at 'BB'
-------------------------------------------------------------
CARE assigns 'CARE BB' rating to the bank facilities of A R R
Srinivasan and Sons.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 12.75 CARE BB Assigned
Facilities
The rating assigned by CARE is based on the capital deployed by
the partners and the financial strength of the firm at present.
The rating may undergo a change in case of the withdrawal of
capital or the unsecured loans brought in by the partners in
addition to the financial performance and other relevant factors.
Rating Rationale
The rating assigned to the bank facilities of A R R Srinivasan and
Sons (ARRSS) is constrained by its relatively small scale of
operations, its thin profitability inherent to the trading nature
of business and its weak financial risk profile marked by low cash
accruals, highly leveraged capital structure and weak debt-
coverage indicators. The rating is further constrained by the
working capital intensive nature of operations owing to high
inventory holdings and the highly fragmented nature of industry
marked by large number of unorganized and regional players,
intense competition and low entry barriers.
The rating, however, derives strength from being part of 'ARRS'
group with synergies and support derived from the group by way of
need based loans and advances, the vast experience of the
promoters and continuous support from them by way of unsecured
loans, long operational track record of the firm of more than five
decades and its established long-standing relationship with a
number of reputed suppliers and clients.
Going forward, the ability of the group to prudently manage its
working-capital requirements in light of the growing scale of
operations, improve and sustain its profitability amidst intense
competition will be the key rating sensitivities. Additionally,
the ability of the group to rationalize its debt level and improve
its capital structure and any major capital expenditure in the
future along with its funding mix will also be a key rating
sensitivity.
CARE has followed a group approach for arriving at the rating and
has combined the credit risk profile of the four entities of the
group namely ARRS Silks and Thangamaligai (ARRS ST, rated
'CARE BB'), engaged in retailing of Apparel and Jewellery, ARRS
Thangamaligai Private Limited (ARRS TPL, rated 'CARE BB'), engaged
in jewellery retail, A R R Srinivasan and Company (ARRSC, rated
'CARE BB'), engaged in the wholesale trading of silk sarees and
ARRSS, engaged in apparel and baby care products retail. These
entities are engaged in similar lines of business and operate
under common management/promoters, which results in significant
synergies for the group in terms of purchases and benefits from
established brand. Additionally, the group has demonstrated cash-
flow fungibility amongst the group entities.
ARRSS is a part of the Salem, Tamil Nadu (TN) based 'ARRS group'
founded by Late Mr AR Rangaswamy Chettiar along with his son, Mr R
Srinivasan during 1960s. ARRSS is a partnership firm established
by Mr R Srinivasan and his two sons Mr S Ramanathan and Mr S
Ravichandran during June 1997. The promoters and their wives are
equal partners in the firm. ARRSS is engaged in the retail trading
of apparels and baby care products. The firm has three showrooms
in Salem, under the banner names of 'ARRS Silks' having a retail
space of about 35,000 sqft., 'ARRS Silk Elite Shop' having a
retail space of about 30,000 sqft and 'ARRS Baby Shop' having a
retail space of about 3,000 sqft as of
September 30, 2013.
The 'ARRS' group has diversified business interests and has
presence in the trading of jewellery, apparels and baby care
products through various showrooms in Salem (TN) and Namakkal
(TN). The group is also engaged in the business of real estate
development and entertainment industry and owns two single screen
theatres and one multiplex with five screens in Salem (TN).
Presently, the group has seven showrooms of which five are located
in Salem, TN (one wholesale, two apparels-retail, one baby care
products-retail and one jewellery-retail) and two in Namakkal, TN
(one each for jewellery and apparel retail).
The day-to-day operations of the group are managed jointly by Mr R
Srinivasan and his two sons Mr S Ramnathan and Mr S Ravichandran.
During FY12 (refers to the period April 01 to March 31), ARRSS had
registered a PAT of INR 0.89 crore on a total income of INR62.85
crore. During FY13, the firm had registered a PAT of INR1.56 crore
on a total operating income of INR69.65 crore.
ADITYA STEEL: CRISIL Suspends 'BB-' Ratings on INR180MM Loan
------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Aditya
Steel Rolling Mills Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 40 CRISIL A4+ Suspended
Cash Credit 170 CRISIL BB-/Stable Suspended
Term Loan 10 CRISIL BB-/Stable Suspended
The suspension of ratings is on account of non-cooperation by
Aditya Steel with CRISIL's efforts to undertake a review of the
ratings outstanding. Despite repeated requests by CRISIL, Aditya
Steel is yet to provide adequate information to enable CRISIL to
assess Aditya Steel's ability to service its debt. The suspension
reflects CRISIL's inability to maintain a valid rating in the
absence of adequate information. CRISIL considers information
availability risk as a key credit factor in its rating process and
non-sharing of information as a first signal of possible credit
distress, as outlined in its criteria 'Information Availability
Risk in Credit Ratings'
Incorporated in 1994, Aditya Steel manufactures thermo-
mechanically treated (TMT) bars and trades in TMT steel bars and
other steel intermediaries. The company was set up by Mr. S K
Khemka and Mr. P K Khemka, who have about three decades experience
in the steel business. The company's plant is located at
Pendurthy, about 20 kilometres from Rashtriya Ispat Nigam Ltd's
Visakhapatnam (Andhra Pradesh) unit, which is the main source of
supply of raw material to the company. Aditya Steel currently has
an installed capacity of 12600 tonnes per annum
AMURTHA TEXTILES: CRISIL Cuts Ratings on INR86.8MM Loans to 'D'
---------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Amurtha Textiles to 'CRISIL D/CRISIL D' from 'CRISIL C/CRISIL A4'.
The downgrade reflects instances of delay by Amurtha in servicing
its debt; the delays have been caused by the company's weak
liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 33 CRISIL D (Downgraded from
'CRISIL C')
Letter of Credit 8 CRISIL D (Downgraded from
'CRISIL A4')
Long-Term Loan 45.8 CRISIL D (Downgraded from
'CRISIL C')
The ratings also reflect Amurtha's weak financial risk profile,
marked by high gearing and below average debt protection metrics.
The ratings also reflect its small scale of operations and the
susceptibility of its operating margin to fluctuations in raw
material prices. These weaknesses are partially offset by the
experience of Amurtha's promoters in the cotton fabric industry,
and its established customer and supplier relationships.
Amurtha is a proprietorship firm set up in 1993 by Mr. S
Sathasivam. The firm is into the spinning of cotton bales into
yarn of 40's count. The yarn is then outsourced to manufacture
grey fabric, which is then sold by Amurtha. The firm's spinning
mill is located in Coimbatore (Tamil Nadu) and has an installed
capacity of 18000 spindles. The firm is managed by Mr. S
Sathasivam and his son, Mr. Vijay Ananth.
ANANDA ENTERPRISES: CRISIL Suspends B+ Ratings on INR247.2MM Loan
-----------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Ananda
Enterprises (India) Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 182.5 CRISIL B+/Stable Suspended
Long-Term Loan 64.7 CRISIL B+/Stable Suspended
The suspension of ratings is on account of non-cooperation by
AEIPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, AEIPL is yet to
provide adequate information to enable CRISIL to assess AEIPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
Established in 2007, AEIPL is part of the Bhimavaram (Andhra
Pradesh)-based Ananda group set up in the 1940s. The company is
into cultivation of fish feed, and aquaculture of pangasius fish.
The aquaculture division has capacity to produce 9000 tonnes per
annum (tpa) of pangasius fish. The division has 298 acres of own
and leased farms, in the ratio of 1:1. The fish-feed division has
production capacity of 72,000 tpa.
APEX TARMAC: CARE Revises Rating on INR12cr LT Loans to 'BB+'
-------------------------------------------------------------
CARE revises the ratings assigned to the bank facilities of
Apex Tarmac Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 12 CARE BB+ Revised
Facilities from CARE BB
Short-term Bank 35 CARE A4+ Revised
Facilities from CARE A4
Rating Rationale
The revision in the ratings assigned to the bank facilities of
Apex Tarmac Private Limited factors in the improvement in
financial risk profile marked by a significant increase in total
operating income in FY13 (refers to the period April 1 to
March 31) and improvement in capital structure and debt coverage
indicators.
The ratings, however, continue to remain constrained on account of
its geographical and segmental concentration of operations,
susceptibility of margins to changes in the raw material prices
and risk associated with the tender-driven nature of business. The
ratings also factor in the decline in profit margins in FY13.
The ratings, however, continue to derive benefits from the
experience of the promoters in road construction space, moderate
order book position, registration as class 'AA' contractor with
the PWD department of Gujarat state and moderate solvency
position.
The ability of the company to diversify its operations and enhance
the scale of operations while maintaining the profitability and
capital structure are the key rating sensitivities.
Gujarat based ATPL was incorporated in 1997 under the name M/s
Apex Construction Company as a partnership firm. Later on in
July 2011, ATPL got converted into a private limited company. ATPL
is engaged in infrastructure contract work with operations focused
in Gujarat state. It majorly operates in the road construction
segment which includes both improvement and strengthening of
existing roads as well as construction of new roads.
ATPL is registered as 'AA' class contractor with the Public Works
Department, Gujarat since 2007, and is also registered as 'Road
Cat I' contractor with the Gujarat state government.
As per the audited results for FY13, ATPL reported a total
operating income of INR128.24 crore (FY12: INR61.39 crore) and a
PAT of INR4.51 crore (FY12: INR2.67 crore).
ARRS SILKS: CARE Rates INR28.93cr LT Bank Loans at 'BB'
-------------------------------------------------------
CARE assigns 'CARE BB' rating to the bank facilities of ARRS Silks
and Thangamaligai.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 28.93 CARE BB Assigned
Facilities
The rating assigned by CARE is based on the capital deployed by
the partners and the financial strength of the firm at present.
The rating may undergo a change in case of the withdrawal of
capital or the unsecured loans brought in by the partners in
addition to the financial performance and other relevant factors.
Rating Rationale
The rating assigned to the bank facilities of ARRS Silks and
Thangamaligai is constrained by its relatively small scale of
operations, its thin profitability inherent to the trading nature
of business and its weak financial risk profile marked by low cash
accruals, highly leveraged capital structure and weak debt-
coverage indicators. The rating is further constrained by the
working capital intensive nature of operations owing to high
inventory holdings and the highly fragmented nature of industry
marked by large number of unorganized and regional players,
intense competition and low entry barriers.
The rating, however, derives strength from being part of 'ARRS'
group with synergies and support derived from the group by way of
need based loans and advances, the vast experience of the
promoters and continuous support from them by way of unsecured
loans, long operational track record of the firm of more than five
decades and its established long-standing relationship with a
number of reputed suppliers and clients.
Going forward, the ability of the group to prudently manage its
working-capital requirements in light of the growing scale of
operations, improve and sustain its profitability amidst intense
competition will be the key rating sensitivities. Additionally,
the ability of the group to rationalize its debt level and improve
its capital structure and any major capital expenditure in the
future along with its funding mix will also be a key rating
sensitivity.
CARE has followed a group approach for arriving at the rating and
has combined the credit risk profile of the four entities of the
group namely A R R Srinivasan and Company (ARRSC, rated 'CARE
BB'), engaged in the wholesale trading of silk sarees, ARRS
Thangamaligai Private Limited (ARRS TPL, rated 'CARE BB'), engaged
in jewellery retail, A R R Srinivasan and Sons (ARRSS,
rated 'CARE BB'), engaged in apparel and baby care products retail
and ARRS ST, engaged in the retailing of Apparel and Jewellery.
These entities are engaged in similar lines of business and
operate under common management/promoters, which results in
significant synergies for the group in terms of purchases and
benefits from established brand. Additionally, the group has
demonstrated cash-flow fungibility amongst the group entities.
ARRS Silks and Thangamaligai is a part of Salem, Tamil Nadu (TN)
based 'ARRS group' founded by Late Mr AR Rangaswamy Chettiar along
with his son Mr R Srinivasan during 1960s.
ARRS ST is a partnership firm established by Mr R Srinivasan and
his two sons Mr S Ramanathan and Mr S Ravichandran during
January 2011. Mr R Srinivasan and his two sons are equal partners
in the firm. ARRS ST is engaged in the retailing of apparels and
jewellery. The firm has two showrooms (adjacent to one another) in
Namakkal (TN) under the banner name of 'ARRS Silks &
Thangamaligai' having a combined retail space of about 56,000
sqft. These showrooms commenced operations from September 2011.
The 'ARRS' group has diversified business interests and has
presence in the trading of jewellery, apparels and baby care
products through various showrooms in Salem (TN) and Nammakal
(TN). The group is also engaged in the business of real estate
development and entertainment industry and owns two single screen
theatres and one multiplex with five screens in Salem (TN).
Presently, the group has seven showrooms of which five are located
in Salem, TN (one showroom engaged in wholesale of Silk Sarees,
two apparels-retail, one baby care products-retail and one
jewellery-retail) and two in Namakkal, TN (one each for jewellery
and apparel-retail). The day-to-day operations of the group are
managed jointly by Mr R Srinivasan and his two sons Mr S Ramnathan
and Mr S Ravichandran.
During FY12 (refers to the period April 01 to March 31), ARRS ST
had registered a PAT of INR 0.10 crore on a total income of
INR46.08 crore. During FY13, the firm had registered a PAT of
INR0.16 crore on a total operating income of INR101.81 crore.
ARRS THANGAMALIGAI: CARE Rates INR17cr LT Bank Loans at 'BB'
------------------------------------------------------------
CARE assigns 'CARE BB' rating to the bank facilities of ARRS
Thangamaligai Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 17 CARE BB Assigned
Rating Rationale
The rating assigned to the bank facilities of ARRS Thangamaligai
Private Limited (ARRS TPL) is constrained by its relatively small
scale of operations with regional concentration, its limited track
record in the jewellery business, thin profitability further
exposed to volatile gold prices and the weak financial risk
profile, marked by low cash accruals, highly leveraged capital
structure and weak debt-coverage indicators. The rating is further
constrained by the working capital intensive nature of operations
owing to high inventory holdings and highly fragmented nature of
the industry marked by large number of unorganized and regional
players and intense competition.
The rating, however, derives strength from ARRS TPL being part of
'ARRS' group, which has a long operational track record of more
than five decades and established market position of the
'ARRS' brand in the Salem (Tamil Nadu) and the surrounding region
and the synergies derived from the group operations. The rating
derives further strength from the support derived from the
group by way of need based loans and advances, , the vast
experience of the promoters and continuous support from them by
way of unsecured loans.
Going forward, the ability of the group to prudently manage its
working-capital requirements in light of growing scale of
operations, improve and sustain its profitability amidst intense
competition will be the key rating sensitivities. Additionally,
the ability of the group to rationalize its debt level and improve
its capital structure and any major capital expenditure in the
future along with its funding mix will also be a key rating
sensitivity.
CARE has followed a group approach for arriving at the rating and
has combined the credit risk profile of the four entities of the
group namely ARRS Silks and Thangamaligai (ARRS ST, rated
'CARE BB'), engaged in the retailing of Apparel and Jewellery; A R
R Srinivasan and Sons (ARRSS, rated 'CARE BB'), engaged in the
apparel and baby care products retail; A R R Srinivasan and
Company (ARRSC, rated 'CARE BB'), engaged in wholesale trading of
silk sarees and ARRS TPL, engaged in jewellery retail. These
entities are engaged in similar lines of business and operate
under common management/promoters, which results in significant
synergies for the group in terms of purchases and benefits from
established brand. Additionally, the group has demonstrated
cash-flow fungibility amongst the group entities.
ARRS Thangamaligai Private Limited is a part of the Salem (Tamil
Nadu) based 'ARRS group' founded by Late Mr AR Rangaswamy Chettiar
along with his son Mr R Srinivasan during the 1960s. ARRS TPL was
established in April 1996 under the name of 'ARR Srinivasan
Textiles Private Limited'. Subsequently, during July 2010, it was
renamed as ARRS TPL. Although founded in 1996, the company started
its business activities only from September 2010 through its first
and only showroom at Salem (TN). ARRS TPL is engaged in jewellery
retail through its showroom having an area of about 9,500 sqft and
located at Bazaar Street, Salem which is a commercial hub for
jewellery business in the Salem region.
The 'ARRS' group has diversified business interests and has
presence in the trading of jewellery, apparels and baby care
products through various showrooms in Salem and Namakkal, in Tamil
Nadu (TN). The group is also engaged in the business of real
estate development and in the entertainment industry. It owns two
single screen theatres and one multiplex with five screens in
Salem (TN) through various group and associate entities.
Presently, the group has seven showrooms of which five are located
in Salem, TN (one showroom engaged in the wholesale of Silk
Sarees, two apparels-retail, one baby care products-retail and one
jewellery-retail) and two in Namakkal, TN (one each for jewellery
and apparel-retail). The day-to-day operations of the ARRS group
are managed jointly by Mr R Srinivasan and his two sons Mr S
Ramanathan and Mr S Ravichandran.
During FY12 (refers to the period April 01 to March 31), ARRS TPL
had registered a PAT of INR0.11 crore on a total income of
INR20.57 crore. During FY13, the company had registered a PAT of
INR0.11 crore on a total operating income of INR55.17crore.
B. D. TEXTILE: CRISIL Suspends 'B+' Rating on INR110MM Loans
------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of B. D.
Textile Mills Private Limited.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 110 CRISIL B+/Stable Suspended
The suspension of ratings is on account of non-cooperation by BDT
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, BDT is yet to
provide adequate information to enable CRISIL to assess BDT's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
Established in 1975, BDT is a Rajasthan-based manufacturer of
women's blouse material. The company is managed by Mr. Ganpat
Chopra and his brother, Mr. Devichand Chopra; they are assisted by
Mr. Rajesh Chopra, Mr. Vikas Chopra, and Mr. Pankaj Chopra in
managing the day-to-day operations. BDT has in-house facilities
for mercerising, texturising, dyeing, and pressing of grey fabric;
it outsources the spinning and weaving activities to its group
concerns based in Bhiwandi (Maharashtra).
BEE INTERNATIONAL: CRISIL Suspends 'BB' Rating on INR100MM Loan
---------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Eskay-
Bee International Pvt. Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 100 CRISIL BB/Stable Suspended
Letter of Credit 250 CRISIL A4+ Suspended
The suspension of ratings is on account of non-cooperation by
EBIPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, EBIPL is yet to
provide adequate information to enable CRISIL to assess EBIPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
EBIPL, incorporated in October 1997 by Mr. Dilip and Mr. Jitendra
Shah, is engaged in trading of plastic granules and chemicals. The
company commenced commercial operations in 2008-09. Later, Mr.
Kevin Shah, their nephew was inducted as a director in the
company. The company operates from two offices in Mumbai. Mr.
Dilip and Mr. Kevin oversee the procurement and sales functions of
the company while Mr. Jitendra handles the finance and accounts
functions of the company.
BILDON STEELS: CRISIL Suspends 'D' Ratings on INR260MM Loans
------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Bildon
Steels (India) Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 100 CRISIL D Suspended
Letter of Credit 60 CRISIL D Suspended
Long-Term Loan 100 CRISIL D Suspended
The suspension of ratings is on account of non-cooperation by BSIL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, BSIL is yet to
provide adequate information to enable CRISIL to assess BSIL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
BSIL commenced operations in April 2009 and manufactures steel
ingots and thermo-mechanically treated (TMT) bars. The company is
promoted by Mr. P Mohammed Shereef, Mr. P Mohammed Mustafa, and
their family members. BSIL's manufacturing facilities are located
in Tirupur District (Tamil Nadu) and have installed capacity to
produce 30,000 tonnes per annum (tpa) of ingots and 54,000 tpa of
TMT bars.
CEEDEEYES SOFTWARE: CARE Assigns 'BB' Rating to INR33.75cr Loans
----------------------------------------------------------------
CARE assigns 'CARE BB' rating to the bank facilities of Ceedeeyes
Software Technology Park Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 33.75 CARE BB Assigned
Facilities
Rating Rationale
The rating assigned to the bank facilities of CeeDeeYes Software
Technology Park Private Limited (CDS) factors in renewability risk
on account of dependence on single tenant, risk associated with
revision of lease rentals, weak financial profile of the company
and exposure to group companies. The rating also takes into
account competition from various IT parks/SEZ situated in and
around Chennai.
The rating, however, favourably considers the promoters'
experience, revenue visibility from the existing lease rentals in
the medium term and established relationship of CDS with its
tenant. The rating also factors in the group's presence in similar
business through other companies.
Going forward, any revision in lease rentals and timely renewal of
lease agreement are the key rating sensitivities.
CeeDeeYes Software Technology Park Private Ltd (CDS) is engaged in
developing and leasing of IT Park. The company owns two properties
(Phase I and Phase II) at Perungudi Bye Pass Road (near IT
Corridor), Chennai which is leased out to Cognizant Technology
Solutions India Private Limited (Cognizant). CDS is a part of
Chennai based CeeDeeYes Group which has presence in real estate
and construction. The group commenced its operations in 1988 and
has executed residential projects with aggregate constructed area
of close to 3 million sq ft till date.
During FY13 (refers to the period April 01 to March 31), the
company registered a PAT of INR0.42 crore on a total operating
income of INR6.64 crore.
CHAITANYA SAI: CRISIL Reaffirms 'D' Ratings on INR90MM Loans
------------------------------------------------------------
CRISIL's rating on the bank facilities of Chaitanya Sai Paper
Mills (India) Pvt Ltd continues to reflect instances of delay by
CSPMPL in servicing its term debt; the delays have been caused by
the company's weak liquidity. CSPMPL has weak liquidity on account
of its working-capital-intensive operations.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 30 CRISIL D (Reaffirmed)
Proposed Long-Term 7 CRISIL D (Reaffirmed)
Bank Loan Facility
Term Loan 53 CRISIL D (Reaffirmed)
CSPMPL also has a weak financial risk profile, marked by a high
gearing, a small net worth, and below-average debt protection
metrics, and working-capital-intensive operations. However, CSPMPL
benefits from its high operating margin, resulting from low fuel
cost.
Update
CSPMPL's revenues increased to INR45 million in 2011-12 (refers to
financial year, April 1 to March 31) from that of around INR34
million in the previous year. The company's operating
profitability was high at 22 per cent during 2011-12 mainly on
account of low fuel cost. However, for 2012-13, the revenues are
estimated to have declined slightly because of frequent power cuts
disrupting production activities. CSPMPL's operations are working
capital intensive, marked by gross current asset days of around
329 as on March 31, 2012 on account of delay in receipt of
payments from customers as well as the need to maintain high
inventory. Its financial risk profile has remained weak marked by
a high gearing and below-average debt protection metrics. It had a
gearing of 2 times as on March 31, 2012 because of large debt and
accumulated losses. The debt protection metrics were also below
average with its net cash accruals to total debt and interest
coverage ratios at 0.02 times and 1.07 times, respectively, for
2011-12. It has weak liquidity marked by its fully utilised
working capital limits, low current ratio of below 1 time as on
March 31, 2012, and inadequate accruals against fixed debt
obligations.
CSPMPL reported a net loss of INR2 million on net sales of INR45
million for 2011-12 (refers to financial year, April 1 to
March 31), against a net loss of INR1.9 million on net sales of
INR33.9 million for 2010-11.
CSPMPL was set up in July 2007 as a private limited company by Mr.
Nageswara Rao. It was acquired by Mr. Kunkalaguntla Buttchama in
July 2011. CSPMPL manufactures kraft paper, which is used as input
by paper plate and corrugated box manufacturers. The company's
manufacturing unit is in Guntur (Andhra Pradesh).
EXICOM TELE-SYSTEMS: CRISIL Suspends 'B' Rating on INR80MM Loan
---------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Exicom
Tele-Systems Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 80 CRISIL B/Stable Suspended
Letter of credit 200 CRISIL A4 Suspended
& Bank Guarantee
The suspension of ratings is on account of non-cooperation by
Exicom with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, Exicom is yet to
provide adequate information to enable CRISIL to assess Exicom's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
Exicom, owned by the Nahata group, primarily assembles and markets
various telecom network equipment, mainly power and control
equipment such as switch mode power supplies (SMPS)-based direct
current power solutions and integrated telecom power units. Exicom
was originally set up in 1994 as Himachal Exicom Communication
Limited (HECL), a joint venture (JV) between Himachal Futurisitic
Communication Limited (HFCL), wholly owned by Nahata group, and
Exicom Australia. Under the terms of the JV, Exicom Australia
agreed to offer technological expertise for production of telecom
power supplies and SMPS, while the manufacturing and marketing of
the products was to be executed by Exicom. In 1995, Exicom
Australia went into liquidation, and Exicom continued to operate
on a standalone basis for the manufacture of SMPS, telephones, and
telecom power supplies. In 2008, HECL was renamed as Exicom.
Currently, HFCL holds a 14.7 per cent stake in Exicom and the
remainder is owned by the companies controlled by the Nahata
family.
HPC ELECTRICAL: CRISIL Suspends 'BB' Rating on INR35MM Loan
-----------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of HPC
Electrical Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 75 CRISIL A4+ Suspended
Cash Credit 35 CRISIL BB/Stable Suspended
The suspension of ratings is on account of non-cooperation by HPC
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, HPC is yet to
provide adequate information to enable CRISIL to assess HPC's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
Set up in 1994 by two brothers, Mr. Jayaram Reddy and Mr. C V S R
Krishna Reddy, HPC assembles and markets transformers, and also
erects and commissions high-tension and low-tension electrical
control panels that find application in power distribution. The
company has a facility in Guntur (Andhra Pradesh), and has a
monthly capacity to assemble 300 transformers. It supplies
transformers and undertakes projects for various companies managed
by Andhra Pradesh's state electricity boards (SEB), and also
caters to the requirement of private parties, such as Reliance
Communication Ltd.
IMAGE LABELS: CRISIL Reaffirms 'D' Ratings on INR102.5MM Loans
--------------------------------------------------------------
CRISIL's rating on the bank facilities of Image Labels Pvt Ltd
continues to reflect the instances of delay by ILPL in servicing
its debt; the delays have been caused by the company's weak
liquidity because of working-capital-intensive operations.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 40.0 CRISIL D (Reaffirmed)
Long-Term Loan 43.5 CRISIL D (Reaffirmed)
Corporate Loan 10.0 CRISIL D (Reaffirmed)
Proposed Long-Term
Bank Loan Facility 9.0 CRISIL D (Reaffirmed)
ILPL also has a modest scale of operations in the competitive
label manufacturing industry; below-average financial risk
profile, marked by small net worth; high gearing and weak debt
protection metrics and working-capital-intensive operations. These
rating weaknesses are however, partially offset by the extensive
industry experience of ILPL's promoters and its established
relationships with its customers.
Update
For 2012-13 (refers to financial year, April 1 to March 31),
ILPL's revenues were lower than its revenues in previous year. The
decline in the revenues was attributed to the slowdown in the
business of its customers in the automobile industry. For the six
months through September 2013, ILPL registered sales estimated at
INR110 million. ILPL's operating profitability also declined at
12.4 per cent during 2012-13. The operations of ILPL have remained
working-capital-intensive, as reflected in its gross current asset
(GCA) days of around 143 days as on March 31, 2013, which is
driven by moderately high receivables and inventory days. ILPL's
financial risk profile has remained below-average, marked by a
small net worth, high gearing and weak debt protection metrics. As
on March 31, 2013, ILPL's gearing was at 3.08 times and its net
worth was INR37.7 million. The company's debt protection metrics
remained weak, marked by net cash accruals to total debt (NCATD)
and interest coverage ratios at 0.09 times and 1.35 times
respectively for 2012-13. The liquidity remained weak, marked by
average utilisation of its bank limits at around 97 per cent for
the eight months through October 2013.
For 2012-13, ILPL registered a net loss of INR4.0 million on net
sales of INR247.67 million as against a profit after tax of
INR1.02 million on net sales of INR265.3 million for 2011-12.
ILPL was incorporated in 1995 by Mr. Sujan Nailady and has its
manufacturing facility in Bengaluru (Karnataka). It manufactures a
range of high quality specialty labels, which are used in the
automobile, consumer durables, electrical, and electronics
industries.
JAI GOPAL: CRISIL Suspends 'BB' Ratings on INR80MM Loans
--------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Jai Gopal International Impex Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL BB/Stable Suspended
Letter of Credit 270 CRISIL A4+ Suspended
Letter of Credit 30 CRISIL BB/Stable Suspended
The suspension of ratings is on account of non-cooperation by JGI
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, JGI is yet to
provide adequate information to enable CRISIL to assess JGI's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
Incorporated in 1992, JGI imports timber and sells it in the
domestic market to large dealers. The company imports its timber,
primarily from Malaysia, Africa, New Zealand, and Germany. JGI
primarily trades in two varieties of timber: pine and teak;
together they account for about 75 per cent of JGI's revenues.
About 30 per cent of the company's imported timber is sold on high
seas basis, whereas the rest is sold after the transfer to stock
yard. The company also operates two sawmills
JAI SAKTHI: CARE Assigns 'B+' Rating to INR9.32cr LT Bank Loans
---------------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of Jai Sakthi
Mills.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 9.32 CARE B+ Assigned
Facilities
The rating assigned by CARE is based on the capital deployed by
the partners and the financial strength of the firm at present.
The rating may undergo a change in case of the withdrawal of
capital or the unsecured loans brought in by the partners in
addition to the financial performance and other relevant factors.
Rating Rationale
The rating assigned to the bank facilities of Jai Sakthi Mills is
constrained by the partners' maiden entry into the textile
business, limited operational track record of the firm,
profitability susceptible to the volatile raw material prices and
the working capital intensive nature of operation. The rating is
further constrained by the constitution of the entity as a
partnership firm with inherent risk of withdrawal of capital.
The rating factors in the satisfactory financial performance of
the firm in the initial year of operations, resulting into profits
and comfortable gearing and coverage indicators.
Going forward, the ability of the firm to effectively utilise the
capacity, achieve the envisaged scale of operations and
effectively manage the raw material price risk will be the key
rating sensitivity.
The ability of the firm to prudently manage its working capital
requirements will also be a key rating sensitivity.
M/s Jai Sakthi Mills is a partnership concern established in April
2010, for the production of yarn and cloth in Sulur, Coimbatore,
Tamil Nadu. JSM has ten partners, all belonging to Mr Mr S Prakash
Kumar's (S/o Mr K Shanmugasundaram) family, who share profits or
losses in an agreed ratio.The family was originally involved in
agricultural operations and trading in coconuts earlier.
In 2010, the family decided to venture into the production of yarn
and cloth. With a view to gain experience in this new field, Mr S
Prakash Kumar, worked in a nearby textile mill for a period of one
year in-order to gain hands-on experience in the textile business,
before constituting the partnership business under the name JSM.
Although established in April 2010, JSM commenced its commercial
production of yarn and cloth from June 2012. The firm's textile
mill consisting of 8,400 spindles was established at a cost of
Rs.12.06 crore funded by a term loan of INR7.6 crore and remaining
by way of funds infused by the partners.
JATAN CONSTRUCTIONS: CRISIL Suspends 'BB' Rating on INR50MM Loan
----------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Jatan
Constructions Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 200 CRISIL A4+ Suspended
Cash Credit 50 CRISIL BB/Stable Suspended
The suspension of ratings is on account of non-cooperation by JCPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, JCPL is yet to
provide adequate information to enable CRISIL to assess JCPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
Set up in 1986 as a private limited company, JCPL undertakes civil
construction of residential complexes, hospitals, ammunition
depots and sheds for government entities of Gujarat and Rajasthan.
Mr. Ramesh Chandra Agrawal is the managing director of the
company.
K.K. BUILDERS: CRISIL Cuts Rating on INR45MM Loan to 'C'
--------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of K.K.
Builders Private Limited (Patna) to 'CRISIL C/CRISIL A4' from
'CRISIL BB-/Stable/CRISIL A4+'. The downgrade follows the delays
in servicing of unrated debt, amid weakened liquidity. The
company's liquidity has deteriorated sharply because of its
stretched receivables.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 154.9 CRISIL A4 (Downgrade
from 'CRISIL A4+')
Cash Credit 45.0 CRISIL C (Downgraded
from 'CRISIL BB-/Stable')
The ratings continue to reflect the working capital intensity of
KKB's operations and risks related to highly competitive and
fragmented construction industry. These rating weaknesses are
partially offset by the extensive experience of KKB's promoters in
the infrastructure sector.
KKB, incorporated in 1985 and promoted by Mr. Kaushal Kishore
Singh, is engaged in civil construction activities in the roads,
bridges and irrigation segments in Jharkhand, Bihar, and Odisha.
The company also undertakes projects for central government
entities such as National Projects Construction Corporation
Limited, Central Public Works Department, and Ircon International
Limited. The company is a Class-1 contractor for government
departments.
KKB reported a profit after tax (PAT) of INR17 million on net
sales of INR341 million for 2012-13 (refers to financial year,
April 1 to March 31), as against a PAT of INR10 million on net
sales of INR263 million for 2011-12.
KETI CONSTRUCTIONS: CRISIL Suspends BB+ Ratings on INR440MM Loans
-----------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Keti
Constructions Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 470 CRISIL A4+ Suspended
Cash Credit 52.5 CRISIL BB+/Stable Suspended
Proposed Long-Term
Bank Loan Facility 387.5 CRISIL BB+/Stable Suspended
Term Loan 90.0 CRISIL A4+ Suspended
The suspension of ratings is on account of non-cooperation by
KCLwith CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, KCL is yet to
provide adequate information to enable CRISIL to assess KCL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
Established in 1976 as a partnership firm of Mr. K.M. Jakhetia &
Mr. T.C. Garg, and later converted into Private Limited co. in
1986 & into closely held public limited company in 1999, KCL is
into civil engineering work projects of roads, bridges, buildings,
dams & other infrastructure projects. The entire shareholding is
within promoter group. KCL's registered office is at Indore.
KRISHNA INSTITUTE: CRISIL Cuts Ratings on INR1.6BB Loans to 'BB+'
-----------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Krishna Institute of Medical Sciences Ltd to 'CRISIL
BB+/Stable' from 'CRISIL BBB-/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 40 CRISIL BB+/Stable (Downgraded
from 'CRISIL BBB-/Stable')
Proposed Long-Term 145 CRISIL BB+/Stable (Downgraded
Bank Loan Facility from 'CRISIL BBB-/Stable')
Term Loan 1,415 CRISIL BB+/Stable (Downgraded
from 'CRISIL BBB-/Stable')
The rating downgrade reflects weakening in KIMS's liquidity on
account of substantial time and cost overrun in its ongoing
project for setting up a 700-bed hospital (adjacent to its
existing 275-bed hospital) in Hyderabad (Andhra Pradesh). The
project has been delayed by nine months and is expected to be
fully operational by January 2014; the delays were mainly on
account of more-than-expected time taken for civil construction
and change in the scope of the project. Moreover, delays in
receiving unsecured loans from the promoters to fund the cost
overrun led to weakening in the company's liquidity, as reflected
in high utilisation of its bank limits. Completion of the project
within the revised timeliness and budgeted cost, and occupancy
level at the upcoming hospital remain key rating sensitivity
factors.
CRISIL's rating on the long-term bank facilities of KIMS continues
to reflect KIMS's established position in the cardiology and
orthopaedic segments supported by moderate revenue growth and
healthy operating efficiencies. The rating also factors in the
company's above-average financial risk profile marked by healthy
net worth, low gearing, and above-average debt protection metrics.
These rating strengths are partially offset by KIMS's exposure to
risks related to implementation of its ongoing expansion programme
and high dependence on its promoter for all key decision-making.
Outlook: Stable
CRISIL believes that KIMS will benefit over the medium term from
its healthy operating efficiency supported by high occupancy rate
at the existing facility, and its healthy profitability margins.
The outlook may be revised to 'Positive' if the company registers
substantial and sustained improvement in its revenue, while
maintaining its profitability margins, or in case of substantial
infusion of funds by the promoter resulting in improved liquidity.
Conversely, the outlook may be revised to 'Negative' in case of
deterioration in the company's liquidity on account of further
time or cost overruns in its ongoing project, or in case of lower-
than-expected occupancy at the upcoming hospital adversely
affecting the company's debt servicing ability.
KIMS, incorporated in 2004, operates a 275-bed multi-speciality
hospital in Hyderabad. It specialises in cardiology, orthopaedic
surgery, neurology, and nephrology. The company was promoted by
Dr. Bhaskar Rao, a reputed cardiothoracic surgeon, who earlier
headed the cardiology department at Mahavir Cardiovascular Centre,
Hyderabad.
KIMS is constructing a 700-bed hospital adjacent to its existing
hospital. KIMS is a part of the Bollineni group, which owns two
other multi-speciality hospitals in Nellore and Rajahmundry, and
diagnostic centres in Cuddapah and Hyderabad (all in Andhra
Pradesh).
LIFE SHINE: CRISIL Reaffirms 'D' Rating on INR180MM Term Loan
-------------------------------------------------------------
CRISIL's rating on the bank facility of Life Shine Medical
Services Pvt Ltd continues to reflect instances of delay by Life
Shine in meeting its interest obligations; the delays have been
caused by the company's weak liquidity on account of low occupancy
at its hospital leading to subdued cash accruals.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 180 CRISIL D (Reaffirms)
Life Shine also has below-average financial risk profile, marked
by weak debt protection metrics, and is exposed to risks related
to intense competition and geographical concentration with single-
site operations. The company, however, benefits from the extensive
experience of its management in the healthcare industry.
Life Shine was incorporated in 2010 to set up a tertiary care
hospital at Kusaiguda in Hyderabad (Andhra Pradesh). The company
is promoted by Mr. Jayaram Reddy Aileni, Mrs. Laxmi Aileni, Mrs.
Sandhya Aileni, Mr. Viswanatha Veluri, and Mr. Chandra Sekhara
Reddy. Its hospital, Tulasi Hospitals, commenced operations in
October 2011. It has 300 beds and provides treatment in
cardiovascular, ophthalmology, neurology, paediatrics, and other
segments.
LOK PRIYA: CARE Rates INR213.98cr LT Loans at 'BB-'
---------------------------------------------------
CARE assigns 'CARE BB-' ratings to the bank facilities of
Lok Priya Buildwell Pvt Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 213.98 CARE BB- Assigned
Facilities
Rating Rationale
The rating assigned to the bank facilities of Lok Priya Buidwell
Pvt Ltd is constrained by the short track record of the
operations, high debt levels resulting in high interest burden and
net losses for the first two years of the operations, revenue
concentration risk arising out of single property and competition
from existing and upcoming hotels in Chandigarh.
The above constraints are partially offset by the experienced and
resourceful promoters, tie-up with Marriott International
Licensing Company for management and marketing of the hotel under
'JW Marriot' brand, favorable location and improving operational
performance since inception.
The company's ability to achieve desired RevPAR (revenue per
available room) and continuous support from the promoters are the
key rating sensitivities.
Incorporated in 2006, LPBP is promoted by Mr Harpal Singh of
Chandigarh-based Synergy Group. LPBP owns a 5-star category
deluxe hotel, situated on a land of 2.62 acres at Sector 35-B,
Chandigarh. LPBP has a technical, operating, marketing and royalty
agreement with MILC, vide which the hotel project was established
and operated under the premium banner of 'JW Marriott'.
The hotel is a 5-star category luxury hotel with 164 rooms
including four suites and one presidential suite, seven
restaurants, ballroom, spa and other recreational facilities. The
hotel started the commercial operations in June, 2011.
During FY12 (refers to the period April 1 to March 31), LPBP has
achieved a total income of INR34 crore and net losses of INR3.22
crore. Based on the provisional results, the company has reported
a total income of INR54.36 crore with net losses of INR28.63 crore
in FY13.
MG WELL: CRISIL Suspends 'D' Ratings on INR140.5MM Loans
--------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of MG Well
Solution Project International Private Limited.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 12.5 CRISIL D Suspended
Cash Credit 2.0 CRISIL D Suspended
Export Packing Credit 18.0 CRISIL D Suspended
Letter of Credit 60.0 CRISIL D Suspended
Long-Term Loan 48.0 CRISIL D Suspended
The suspension of ratings is on account of non-cooperation by MG
Well with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, MG Wellis yet to
provide adequate information to enable CRISIL to assess MG Well's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
Incorporated in 2005, MG Well started its commercial operations in
2009 and provides technical services in the field of cementing for
drilling of oil and gas wells. The company is promoted by Mr.
Ravindra Bawa, who has more than 20 years of experience in the
field of cementing for drilling of oil and gas wells. MG Well
primarily provides cementing services, which include providing
cementing additives, testing services, and equipment services.
MIRC ELECTRONICS: CRISIL Cuts Ratings on INR3.25BB Loans to 'BB+'
-----------------------------------------------------------------
CRISIL has downgraded its ratings on Mirc Electronics Ltd's bank
facilities and commercial paper programme to 'CRISIL
BB+/Negative/CRISIL A4+' from 'CRISIL BBB-/Negative/CRISIL A3'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 1,500 CRISIL BB+/Negative (Downgraded
from 'CRISIL BBB-/Negative')
Letter of Credit 6,100 CRISIL A4+ (Downgraded from
& Bank Guarantee 'CRISIL A3')
Long-Term Unsecured 500 CRISIL BB+/Negative (Downgraded
Loan from 'CRISIL BBB-/Negative')
Proposed Term Loan 1,250 CRISIL BB+/Negative (Downgraded
from 'CRISIL BBB-/Negative')
Short-Term Unsecured 1,400 CRISIL A4+ (Downgraded from
Loans 'CRISIL A3')
The rating downgrade reflects CRISIL's belief that Mirc's
liquidity will be weaker-than-earlier expected owing to continued
pressure on profitability and revenue growth in the highly
competitive consumer durable segment. The company's operating
income growth and operating profitability have remained
significantly weaker than expected over the past six quarters;
Mirc reported year-on-year decline of 22 per cent in its operating
income and negligible operating profit for 2012-13 (refers to
financial year, April 1 to March 31) and registered operating loss
in the first quarter of 2013-14. The company has reported
operating level losses for 4 out of the past 6 quarters. With
continued pressure on profitability, Mirc's debt protection
indicators are expected to remain weak over the medium term,
thereby adversely affecting its financial risk profile.
The ratings continue to reflect Mirc's diversified revenue profile
and healthy growth potential in panel televisions (TVs), air
conditioners (ACs), and washing machine segments. These rating
strengths are partially offset by Mirc's below-average financial
risk profile and susceptibility to volatility in input prices and
intense competition across its product categories, restricting its
market share.
Mirc has a diversified revenue profile led by colour televisions
(CTV; includes conventional CTVs and flat-panel televisions),
which contributed 49 per cent to sales in 2012-13, followed by ACs
(23 per cent), and washing machines (8 per cent). The company's
product portfolio also includes microwave ovens, digital versatile
disc players, and mobile phones, which contribute to the remaining
sales. The company will continue to focus on the panel TV, washing
machine, and split AC segments to drive growth over the medium
term. CRISIL believes that these segments will exhibit healthy
growth over the medium term on the back of increasing consumer
preference for high-value products.
Mirc has a below-average financial risk profile, marked by weak
debt protection metrics and high gearing. Its financial risk
profile has deteriorated over the past two years due to weakening
profitability and increasing debt levels, leading to deterioration
in its debt protection metrics; Mirc's interest coverage ratio has
declined to less than 1 time for 2012-13 as against more than
three times for 2009-10. Moreover, with increasing debt and lower
accretion to reserves due to weak cash accruals, gearing is also
increasing; Mirc's gearing increased to 1.5 times as on March 31,
2013, from 0.5 times in March 31, 2010. Despite the absence of any
debt-funded capital expenditure (capex), Mirc's gearing is
expected to remain around 1.5 times over the medium term owing to
its working capital requirements. Notwithstanding expected
improvement in profitability and cash accruals over the medium
term, CRISIL believes that Mirc's financial risk profile will
remain below average on account of its large debt levels and
working-capital-intensive operations.
Mirc's operating profitability is vulnerable to volatility in
prices of its key raw materials (aluminium and plastic), which
form a substantial part of its cost structure. The company is also
susceptible to intense competition across its product categories
as it competes with multinational brands such as LG, Samsung,
Whirlpool, Sony, and Philips, as well as Indian brands such as
Videocon and Godrej. As a result, Mirc's average realisation has
declined for most products. CRISIL believes that Mirc will
continue to face intense competition from other players, which
will continue to restrict its market share.
Outlook: Negative
CRISIL believes that Mirc's debt protection metrics will continue
to be constrained by its weak profitability. The ratings may be
downgraded if Mirc reports lower-than-anticipated revenue growth
or profitability, undertakes a larger-than-expected debt-funded
capex programme, or its working capital efficiencies decline,
further weakening its financial risk profile. Conversely, the
outlook may be revised to 'Stable' if there is more-than-expected
improvement in Mirc's debt protection indicators, most likely due
to improved profitability and growth in revenue.
Mirc, promoted by the Mirchandani family, manufactures a range of
consumer durables, including CTVs, DVD players, ACs, washing
machines, and microwave ovens. It has recently entered the mobile
phone segment as well. The company markets its products primarily
under the Onida brand; the company has another brand, Igo,
targeted at the rural markets. Mirc has manufacturing plants in
Wada (Maharashtra), Noida (Uttar Pradesh), and Roorkee
(Uttarakhand) for ACs and washing machines. It also has an
assembly plant at Roorkee, with a capacity of 3.9 million CTVs per
annum.
On a consolidated basis, Mirc reported net loss of INR311.9
million on net sales of INR13.1 billion for 2012-13 as against net
loss of INR387.2 million on net sales of INR16.8 billion for 2011-
12.
MODERN EDUCATION: CRISIL Reaffirms 'D' Rating on INR200MM Loan
--------------------------------------------------------------
CRISIL's rating on the bank facility of Modern Education Society
continues to reflect instances of delay by MES in servicing its
term debt; the delays have been caused by the society's weak
liquidity resulting from cash flow mismatches.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 200.0 CRISIL D (Reaffirmed)
MES is also vulnerable to the highly regulated environment in the
education industry and to the intense competition from the other
educational institutes in the region. However, MES benefits from
its above-average financial risk profile, the extensive industry
experience of its promoters and its diverse course offerings.
Update
MES's operating income grew by three per cent year-on-year,
estimated at INR697 million for 2012-13 (refers to financial year,
April 1 to March 31); the growth has been driven by increase in
the grants received from government. Currently, the occupancy
level of the society is around 90 per cent. The operating
profitability of the society is estimated at 6.9 per cent during
the same period. MES's has an above-average financial risk profile
marked by a low gearing and a healthy net worth. MES's gearing is
estimated at 0.75 times, and its net worth is estimated at INR770
million as on March 31, 2013. Its accruals are expected to be
sufficient against the maturing debt repayment obligations. MES
collects fees from June to August; and it generally faces delays
in receipt of fees from government. Moreover, the society has huge
operating costs such as salaries which are to be paid on a monthly
basis along with the bank interest. This results in mismatch in
the cash flows, constraining its liquidity.
MES was established in 1932 by a group of educationalists; led by
Mr. V K Joag. The society received funding support from the Wadia
and Ruparel families; a few of the society's institutes are named
after these families. Its institutes have two campuses: the Wadia
campus (houses five colleges) in Pune, and the Ruparel campus,
(two colleges) in Mumbai. The institutes offer various courses,
ranging from junior college, graduation courses in commerce, arts,
sciences, and engineering, to postgraduate courses in pure
sciences, management and computer science.
For 2012-13 (refers to financial year, April 1 to March 31), MES,
on a provisional basis, registered a surplus of INR69.3 million on
an operating income of INR697.2 million, against a surplus of
INR59.9 million on an operating income of INR671.5 million for
2011-12.
MODERN FORGINGS: CRISIL Places 'B' Ratings on INR142.2MM Loans
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Modern Forgings & Alloys Industries.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 35.7 CRISIL B/Stable (Assigned)
Inland/Import 31.8 CRISIL A4 (Assigned)
Letter of Credit
Bank Guarantee 13.5 CRISIL A4 (Assigned)
Cash Credit 106.5 CRISIL B/Stable (Assigned)
The ratings reflect MFAI's weak financial risk profile, marked by
high gearing and moderate debt protection metrics, working-
capital-intensive operations, and modest scale of operations in a
fragmented industry. These rating weaknesses are partially offset
by the extensive experience of MFAI's promoters in the steel
forging industry, leading to established relations with its
customers and suppliers.
Outlook: Stable
CRISIL believes that MFAI will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the firm generates higher-
than-expected cash accruals along with substantial improvement in
working capital management, or benefits from infusion of capital
by its promoters, resulting in an improvement in its capital
structure. Conversely, the outlook may be revised to 'Negative' if
MFAI achieves lower-than-expected cash accruals, its financial
risk profile weakens, or in case of further increase in its
working capital requirements, or if the firm undertakes larger-
than-expected debt-funded capital expenditure plan.
MFAI manufactures forged rolls, shafts, gears, ingots, and blanks;
and is located at Savli, in Vadodara (Gujarat). MFAI was formed in
2009 but commercial production commenced from June 2011 onwards.
For 2012-13 (refers to financial year, April 1 to March 31), MFAI
reported, a net profit of INR16.45 million on net sales of
INR492.2 million; the firm reported a net loss of INR1.82 million
on net sales of INR271.2 million for 2011-12.
MODY DECORA: CRISIL Suspends 'D' Ratings on INR145MM Loans
----------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Mody
Decora and Stones Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 75 CRISIL D Suspended
Cash Credit 40 CRISIL D Suspended
Corporate Loan 25.3 CRISIL D Suspended
Proposed Long-Term
Bank Loan Facility 4.7 CRISIL D Suspended
The suspension of ratings is on account of non-cooperation by
MDSPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, MDSPL is yet to
provide adequate information to enable CRISIL to assess MDSPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
MDSPL was originally established in 1989 as a partnership firm by
Mr. Shailesh S Mody and his wife Mrs. Charmaine S Mody; it was
subsequently reconstituted as private limited company in April
2009. Mr. Mody is a marine engineer, but because of his interest
in interiors entered into this line of business. The erstwhile
firm started operations with trading in Italian marble and
granite, which continued for the initial two years; thereafter it
took up projects of stone laying, and built up a sound reputation
backed by good workmanship. MDSPL undertakes contract work
involving stone and other miscellaneous interior work for
corporate clients. Its activities range from painting and
plastering to stone laying and wood work. The company also has one
retail outlet in Vile Parle, Mumbai, for trading and showcasing of
marble, granite, and other materials.
MURALI & CO: CRISIL Assigns 'B+' Ratings to INR50MM Loans
---------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank
facilities of M/s. Murali & Co.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit/Overdraft 13 CRISIL B+/Stable
Facility
Proposed Cash Credit 37 CRISIL B+/Stable
Limit
The rating reflects the firm's modest scale of operations in the
intensely competitive civil construction segment, and its below-
average financial risk profile, marked by a modest net worth.
These rating weaknesses are partially offset by Murali & Co's
moderate order book position and the promoters' extensive industry
experience.
Outlook: Stable
CRISIL believes that Murali & Co will continue to benefit from its
moderate order book position and the promoters' experience in the
civil construction segment over the medium term. The outlook may
be revised to 'Positive' if Murali & Co significantly scales up
its operations and improves its working capital management,
thereby enhancing its liquidity. Conversely, the outlook may be
revised to 'Negative' if the firm's revenues and operating margin
declines due to a delay in execution of various projects; and or
its working capital management deteriorates leading to a stretch
in its liquidity; or it undertakes a large debt-funded capital
expenditure (capex) programme, weakening its financial risk
profile.
Murali & Co, established in 1994, is a partnership owned by Mr. K
A Girijan (the managing partner), his mother-in-law, Mrs. Ammini
Amma, and his son, Mr. G Murali. The firm undertakes civil
contract works for various government departments.
Murali & Co reported a net profit of INR12.34 million on contract
receipts of INR201.48 million for 2012-13 (refers to financial
year, April 1 to March 31), and a PAT of INR7.41 million on net
sales of INR125.02 million for 2011-12.
NEW LAKSHMI: CARE Assigns 'BB-' Rating to INR10cr LT Bank Loans
---------------------------------------------------------------
CARE assigns 'CARE BB-' rating to the bank facilities of New
Lakshmi Jewellery.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 10 CARE BB- Assigned
Facilities
The rating assigned by CARE is based on the capital deployed by
the partners and the financial strength of the firm at present.
The rating may undergo a change in case of withdrawal of capital
or the unsecured loans brought in by the partners in addition to
the financial performance and other relevant factors.
Rating Rationale
The rating assigned to the bank facility of New Lakshmi Jewellery
(NLJ) is primarily constrained by its constitution as a
partnership firm with inherent risk of withdrawal of capital and
modest scale of operations with presence in the highly fragmented
nature of industry leading to intense competition. The rating is
further constrained by the moderately leveraged capital structure
with working capital intensive nature of operations and
susceptibility of profit margins to volatility in raw material
prices. The rating, however, derives strength from the long track
record of the firm with experienced promoters, the increased scale
of operations over the past three years with satisfactory profit
margins and scope of growth for certified and branded jewellery.
The ability of the firm to increase its scale of operations with
growth in market share and effective management of the working
capital cycle are the key rating sensitivities.
New Lakshmi Jewellery (NLJ) was established in July 1961 as a
partnership firm; initially promoted by Mr Palaniswamy, it is
being managed by his son Mr Eswaramoorthy along with two other
partners since 1985. NLJ is primarily engaged in the retailing of
gold jewellery (BIS Hallmarked), gold bars, diamonds, silverwares
and platinum jewellery and is operating from one showroom
located at Trichy. The retailing of gold jewellery, silverwares &
gold bullion continued to be the major revenue contributors with
about 57%, 22% & 19% shares respectively in FY12.(refers to the
period April 1 to March 31).
During FY13, NLJ reported a total operating income of INR25.21
crore as against a total operating income of INR 23.88 crore and
PAT of INR1.59 crore in FY12 (audited). During H1FY14, the firm
has reported a total operating income of INR18.50 crore.
NIPANI INDUSTRIES: CARE Reaffirms 'BB+' Rating on INR4.2cr Loans
----------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Nipani Industries.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 4.20 CARE BB+ Reaffirmed
Facilities
Short-term Bank 1.00 CARE A4+ Reaffirmed
Facilities
Long-term/Short- 2.15 CARE BB+/CARE A4+ Reaffirmed
term Bank
Facilities
The rating assigned by CARE is based on the capital deployed by
the partners and the financial strength of the firm at present.
The rating may undergo a change in case of the withdrawal of
capital or the unsecured loans brought by the partners in addition
to the financial performance and other relevant factors.
Rating Rationale
The ratings assigned to the bank facilities of Nipani Industries
(NPI) continue to be constrained on account of its high customer
and segment concentration. The ratings are further constrained by
its modest scale of operations and vulnerability of profit margins
to fluctuations in raw material prices.
The ratings, however, continue to draw strength from the long
track of the promoters in PEB industry, reputed clientele and the
comfortable capital structure. Furthermore, the ratings also
factored the improvement in its cash accruals during FY13 (refers
to the period April 1 to March 31) and comfortable order book
position.
The ability of NPI to increase its scale of operations and
profitability along with the growth in the order book would remain
the key rating sensitivities.
NPI is a Jabalpur-based partnership firm established in 1996 by Mr
Rajiv Puri and his family members. The firm started its operations
by doing job work for telecom tower manufacturing companies and
subsequently ventured into the business of erection of telecom
towers. Later on, from FY09 onwards NPI shifted its focus from
telecom tower erection business to supply & erection of PEBs on a
turnkey basis and Light Gauge Steel Building (LGS), mainly for
government organizations. Furthermore, NPI also works as a sole
selling agent of KSB Energy LLC, Europe for the distribution of
boiler feed pumps used in super critical power projects. Moreover
it has technical collaboration with Structural Concepts and
Component, Inc (SCCI). The firm owns a fabrication facility at
Jabalpur for undertaking various types of fabrication work related
to the contracts under execution.
During FY13, NPI reported a total operating income (TOI) of
INR19.15 crore and PAT of INR1.46 crore as against a TOI of
INR13.94 crore and PAT of INR0.68 crore in FY12. Furthermore,
during 7MFY14 (provisional), NPI booked revenue worth INR16.47
crore.
NIRANJAN METALLIC: CRISIL Suspends 'BB' Ratings on INR100MM Loan
----------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Niranjan
Metallic Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 45 CRISIL BB/Stable Suspended
Rupee Term Loan 55 CRISIL BB/Stable Suspended
The suspension of ratings is on account of non-cooperation by NML
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL,NMLis yet to
provide adequate information to enable CRISIL to assess NML's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
NML is a closely held public limited company, incorporated in
2005; it started commercial production in 2008. The company
manufactures sponge iron. It procures coal from Jharkhand and iron
ore from Orissa, and primarily sells its products to Dadiji Steels
Ltd (Dadiji; rated 'CRISIL BB+/Stable/CRISIL A4+'), which
manufactures thermo-mechanically treated (TMT) bars. NML has a
sponge iron manufacturing capacity of 100 tonnes per day and has a
plant in Giridih (Jharkhand).
NRI SERVICE: CARE Assigns 'B' Rating to INR3.38cr LT Bank Loans
---------------------------------------------------------------
CARE assigns 'CARE B' rating to the bank facilities of NRI Service
And Educational Trust.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 3.38 CARE B Assigned
Facilities
Rating Rationale
The rating assigned to the bank facilities of NRI Service and
Educational Trust is constrained by the concentration of revenues
from a single institution, history of losses from inception to
FY12 (refers to the period April 1 to March 31) and the consequent
negative net-worth.
The rating is also constrained by the bunching up of cash inflows
in certain months inherent to the sector and the need to fund the
cash flow mismatches, regulatory challenges involved in the
education sector in India as well as the need for regular capital
expenditure.
The rating, however, favorably factors in the long experience of
managing trustee in the education space, supported by an
experienced management team, well equipped infrastructure
facilities and continuous support by infusion of funds from the
trustee by way of unsecured loans. The rating also favorably
factors in the increase in operating income during the period
FY10-FY13, supported by 100% student enrollment levels in the past
four academic years, as well as the turnaround in FY13 with
surplus being reported in FY13 after a period of continued losses.
Going forward, the ability of NRIT to complete the envisaged capex
in a timely manner without increasing leverage and its ability to
improve the surplus margin will be the key rating sensitivities.
NRI Service and Educational Trust was founded in July 2001 by Non-
Resident Indian professionals Mr PS Thaha and Mr VM Sauda along
with Tiruvananthapuram District Committee of Kerala Muslim Jama-
ath Federation, represented by its secretary, Prof KY Mohamed
Kunju. The main objective of trust is to provide education in
dental medicine and surgery under the name of PMS College of
Dental Science & Research (PMS). The said institution was
established in 2002 in Vattappara, Tiruvananthapuram, Kerala. PMS
conducts Bachelor of Dental Surgery (BDS), Masters of Dental
Surgery course (MDS) and Diploma in Laser Dentistry courses.
Admission to BDS is based on merit and MDS is based on the
competitive entrance examination, whereas 50% of seats are filled
by the government and the remaining by the management in the
proportion of 35% for open merit seats and 15% for NRI. The total
college strength is 380 BDS students and 69 MDS students as of
September 30, 2013 and so far sevenbatches of BDS students have
passed out from the college.
PMS was initially affiliated to the Kerala University in 2002 and
then in 2010 it became affiliated to the Kerala University of
Health Sciences (KUHS). It has sanctioned intake of 100 numbers of
students for BDS and 23 numbers of students for MDS [for Academic
Year 2012-13 (AY stands for the period September to August for
BDS)]. PMS has planned to enhance the sanctioned intake in the MDS
course to 33 seats for the AY14-15 for MDS course. The college has
applied for the same with the Government of India.
PATEL MOTORS: CRISIL Reaffirms 'B' Rating on INR669MM Loans
-----------------------------------------------------------
CRISIL's ratings on the bank facilities of Patel Motors (Indore)
Pvt Ltd continue to reflect PMPL's modest financial risk profile,
marked by highly leveraged capital structure and small net worth,
low bargaining power with its principals Maruti Suzuki India Ltd,
Eicher Motors Ltd, and Tractors and Farm Equipment Ltd, and
susceptibility of its margins to intense competition in the
automotive dealership market.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 11 CRISIL A4 (Reaffirmed)
Cash Credit 669 CRISIL B/Stable (Reaffirmed)
These rating weaknesses are partially offset by PMPL's promoters'
extensive industry experience, financial support extended by them,
its established position in the passenger and commercial
automobile dealership market in Madhya Pradesh (MP), and
diversified product portfolio with dealerships of passenger and
commercial vehicles (CVs) as well as tractor and farm equipment.
CRISIL has treated unsecured loans of INR115 million, outstanding
as on March 31, 2013, extended by the promoters and affiliates as
neither debt nor equity, as PMPL has provided an undertaking to
CRISIL for non-withdrawal of these funds over the medium term.
Outlook: Stable
CRISIL believes that PMPL will benefit over the medium term from
its established relationships with its principals and its
promoters' extensive industry experience. The outlook may be
revised to 'Positive' if PMPL generates higher than expected cash
accruals, resulting in an improvement in its capital structure and
debt protection metrics. Conversely, the outlook may be revised to
'Negative' if there is a significant decline in the company's
sales volumes or operating margin, resulting in substantial
weakening in its debt protection metrics or its working capital
management deteriorates leading to weak financial risk profile and
liquidity.
Update
PMPL reported a revenue of INR34.84 billion in 2012-13 (refers to
financial year, April 1 to March 31), as compared with INR30.52
billion in 2011-12. The increase in revenue is largely because of
the moderate growth in sales of Eicher vehicles owing to high
demand in the CVs and passenger carrier vehicles sectors. CRISIL
believes that PMPL's sales growth will remain moderate in 2013-14,
because of the weak economic environment; however, it will be
supported by the fact that PMPL is the sole dealer of Eicher
vehicles in Indore (MP).
PMPL has operating margin of 2.8 to 3.0 per cent for the past
couple of years due to fixed margins set by the principal. The
discounts offered by the principals do not have much effect on the
margins as the discount is shared by both, the principal and the
dealer, on a pre-arranged basis. The profitability margin is
likely to remain at 3 to 4 per cent over the medium term.
PMPL has moderate working capital requirements, indicated by its
gross current assets (GCAs) of over 85 days as on March 31, 2013;
the company has reported similar GCAs in the past, with debtors of
27 days as on March 31, 2013, mainly because the company extends a
credit period of around 30 days to TAFE customers and 10 to 15
days to MSIL customers.
PMPL had a small net worth of INR69 million as on March 31, 2013.
The company contracted large debt to fund its working capital
requirements, which along with its small worth, has resulted in a
high total outside liabilities to tangible net worth ratio of
around 12 times as on March 31, 2013. The company's debt
protection metrics are also weak due to a low interest coverage
ratio of 1.4 times and net cash accruals to total debt ratio of 4
per cent for 2012-13.
PMPL commenced operations as a partnership firm in 1983 and was
founded by Mr. Ballabh Bhai Patel. It initially was a dealer in
vehicles of TAFE in Indore. The firm was reconstituted as a
private limited company in 1993. PMPL became a dealer in Eicher
vehicles in 1995 and of Maruti Suzuki India Ltd (MSIL) for Indore
in 1997. PMPL currently deals in vehicles of its three principals,
TAFE, Eicher and MSIL. The company also deals in automobile spare
parts and accessories and has workshops attached to its showrooms.
All the showrooms/extension counters/workshops are located in
Madhya Pradesh.
PAWA BUILDERS: CRISIL Suspends 'B+' Rating on INR125MM Loans
------------------------------------------------------------
CRISIL has suspended its rating on the bank facility of
Pawa Builders Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 125 CRISIL B+/Stable Suspended
The suspension of ratings is on account of non-cooperation by
PBPLwith CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, PBPL is yet to
provide adequate information to enable CRISIL to assess PBPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
Incorporated in the 1980s by Mr. Satish Kumar Pawha, PBPL is
engaged in the business of construction and leasing of commercial
complexes. It currently has one commercial property at Vasant
Kunj, New Delhi, with 3 towers having a total developed area of
around 80,000 square feet (sq ft). Currently, around 18,000 sq ft
is leased for nine years ending 2019.
POABS ENTERPRISES: CRISIL Suspends 'D' Ratings on INR600M Loans
---------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Poabs
Enterprises Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 75 CRISIL D Suspended
Rupee Term Loan 525 CRISIL D Suspended
The suspension of ratings is on account of non-cooperation by PEPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, PEPL is yet to
provide adequate information to enable CRISIL to assess PEPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
CRISIL has consolidated the business and financial risk profiles
of PEPL, Poabs Exports, Poabs Estates Pvt Ltd, Poabs Plantations
Pvt Ltd, and Poabs Organic Products Pvt Ltd. This is because these
companies, collectively referred to as the PPG, are under a common
management and have sizable business and financial alignment.
PEPL reported a net loss of INR74.6 million on net sales of
INR149.1 million for 2009-10 (refers to financial year, April 1 to
March 31), against a net loss of INR80.6 million on net sales of
INR44.2 million for 2008-09.
PRECISION AUTO: CRISIL Suspends 'D' Ratings on INR80MM Loans
------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Precision Auto Industries Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 10 CRISIL D Suspended
Letter of Credit 9 CRISIL D Suspended
Long-Term Loan 61 CRISIL D Suspended
The suspension of ratings is on account of non-cooperation by
PAIPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, PAIPL is yet to
provide adequate information to enable CRISIL to assess PAIPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
PAIPL was set up in 1997 by Mr. B M Khairnar in Nashik
(Maharashtra). The company commenced commercial operations in
2002-03 (refers to financial year, April 1 to March 31). PAIPL
manufactures fuel tanks for vehicles for Mahindra Scorpio, a sport
utility vehicle of Mahindra and Mahindra Ltd (rated 'CRISIL
AA+/Stable/CRISIL A1+/CRISIL GVC Level 1'). PAIPL also
manufactures press components and vacuum connections which are
used in automobiles. More than 90 per cent of its revenues are
generated from the fuel tanks division. The company has a
manufacturing unit at Nashik, with capacity of about 6,000 fuel
tanks per month. Currently, the unit is utilising about 60 per
cent of its installed capacity.
PRIME CIVIL: CRISIL Reaffirms 'BB-' Rating on INR100MM Loan
-----------------------------------------------------------
CRISIL's ratings on the bank facilities of Prime Civil
Infrastructures Pvt Ltd continue to reflect Prime's long track
record in the civil construction industry and its moderate
financial risk profile, marked by comfortable gearing and moderate
debt protection metrics. These rating strengths are partially
offset by the company's working-capital-intensive operations,
limited project diversity, and modest scale of operations in a
competitive business segment.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 90 CRISIL A4+ (Reaffirmed)
Cash Credit 100 CRISIL BB-/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that Prime will continue to benefit over the
medium term from its long track record and its promoters'
experience in the civil construction business. The outlook may be
revised to 'Positive' in case of a sustained increase in the
company's scale of operations while it maintains its
profitability, or if its financial risk profile improves
significantly, driven most likely by equity infusion by promoters.
Conversely, the outlook may be revised to 'Negative' if an
unprecedented stretch in Prime's working capital cycle results in
pressure on its liquidity, or if any unanticipated debt-funded
capital expenditure leads to deterioration in its capital
structure.
Prime was originally established as a proprietorship firm, Prime
Engineers, in 1989; the firm was reconstituted as a private
limited company in 2009. Prime undertakes civil construction and
is registered as a Class AA contractor with the Municipal
Corporation of Greater Mumbai. The company also undertakes
projects for Mumbai Metropolitan Region Development Authority,
Maharashtra Housing and Area Development Authority, Maharashtra
Industrial Development Corporation, and Public Works Department,
Maharashtra. Prime constructs roads, bridges, buildings, and
storm-water drainage systems.
SAGAR STEEL: CRISIL Assigns 'B-' Rating to INR90MM Loan
-------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to
the bank facilities of Sagar Steel Private Limited (SSPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Letter of Credit 50 CRISIL A4
Bank Guarantee 100 CRISIL A4
Cash Credit 90 CRISIL B-/Stable
The ratings reflect SSPL's below-average financial risk profile
marked by highly leveraged capital structure and weak debt
protection metrics, and its small scale of operation in the
intensively competitive transmission towers industry with customer
concentration in revenue profile. These rating weaknesses are
partially offset by the extensive industry experience of SSPL's
promoters.
Outlook: Stable
CRISIL believes that SSPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' in case of significant
improvement in the company's scale of operations and
profitability, or substantial equity infusion by the partners,
leading to improvement in its financial risk profile. Conversely,
the outlook may be revised to 'Negative' if SSPL's working capital
requirements increase, resulting in deterioration in its
liquidity, or it undertakes a large, debt-funded capital
expenditure programme, weakening its capital structure.
SSPL, incorporated in 1974, is involved in the supplying,
erecting, fabricating and commissioning of transmission towers for
Karnataka Power Transmission Corporation Ltd. The day-to-day
operations of the company are managed by Mr. Surpat Chouraria
along with his family.
SSPL reported a net loss of INR6 million on revenues of INR113.88
million for 2012-13 (refers to financial year, April 1 to
March 31), against a net profit of INR0.3 million on net revenues
of INR222.26 million for 2011-12.
SAKAR GLAZED: CRISIL Upgrades Ratings on INR290MM Loans to 'B-'
---------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of Sakar
Glazed Tiles Pvt Ltd to 'CRISIL B-/Stable/CRISIL A4' from 'CRISIL
D/CRISIL D'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 25 CRISIL A4 (Upgraded from
CRISIL D)
Cash Credit 70 CRISIL B-/Stable (Upgraded
from CRISIL D)
Letter of Credit 20 CRISIL A4 (Upgraded
from CRISIL D)
Term Loan 206 CRISIL B-/Stable (Upgraded
from CRISIL D)
Proposed Long-Term 14 CRISIL B-/Stable (Upgraded
Bank Loan Facility from CRISIL D)
The rating upgrade reflects timely servicing of debt by SGT over
the past three quarters. The upgrade also factors in CRISIL's
belief that SGT will continue to receive funding support from its
promoters for timely repayment of its term debt obligations.
The ratings continue to reflect SGT's weak financial risk profile,
marked by high gearing and below-average debt protection metrics,
and large working capital requirements. The company, however,
benefits from its promoters' extensive experience in the ceramics
industry.
Outlook: Stable
CRISIL believes that SGT will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the company registers
substantial growth in its revenue, along with improvement in
profitability and efficient working capital management, leading to
higher-than-expected net cash accruals and, as a result,
improvement in its financial risk profile. Conversely, the outlook
may be revised to 'Negative' if SGT undertakes a debt-funded
capital expenditure programme, or if its working capital cycle
lengthens, resulting in pressure on its liquidity.
SGT, incorporated in 1998, is managed by Mr. Jayanti Thakkar and
his family. The company manufactures vitrified ceramic tiles at
its facilities in Gandhinagar (Gujarat).
For 2012-13 (refers to financial year, April 1 to March 31), SGT
reported profit after tax (PAT) of INR0.2 million on net sales of
INR290.5 million as against PAT of INR5.9 million on net sales of
INR344.7 million for 2011-12.
SANGHAR EXPORTS: CRISIL Suspends 'BB' Rating on INR280MM Loan
-------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Sanghar
Exports (SE).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Letter of credit 20 CRISIL A4+ Suspended
& Bank Guarantee
Packing Credit 280 CRISIL BB/Stable Suspended
The suspension of ratings is on account of non-cooperation by SE
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SE is yet to
provide adequate information to enable CRISIL to assess SE's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
SE was promoted by late Mr. Jayantilal Mangaldas Shah and his
brother late Mr. Kumar Mangaldas Shah in 1985. The firm is engaged
in trading of agricultural commodities such as onions, chickpeas,
pulses, groundnuts, and oil seeds. The firm primarily trades in
onions which constitutes 50 to 60 per cent of the total revenues.
Exports constitute around 80 per cent of the total revenues and
the balance 20 per cent is from the domestic market. SE, based in
Pune (Maharashtra), is a part of the Sanghar group. The group was
promoted by late Mr. Mangaldas Venichand in 1935. Other entities
in the Sanghar Group are Mangaldas Venichand (MV), Shah Marketing
Corporation, Kumar Marketing Corporation, Sanghar Ceramics and
Sanghar Bath & Ceramics, Sanghar Warehousing and Sanghar
Enterprises.
SHAKEEL HAIDER: CRISIL Suspends 'BB+' Rating on INR20MM Loan
------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Shakeel
Haider Engineers & Contractors.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 230 CRISIL A4+ Suspended
Overdraft Facility 20 CRISIL BB+/Stable Suspended
The suspension of ratings is on account of non-cooperation by SHEC
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SHEC is yet to
provide adequate information to enable CRISIL to assess SHEC's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
SHEC was established by Mr. Shakeel Haider in 1989. The firm is a
Class I/Class A type contractor, based in Sultanpur (Uttar
Pradesh). It is into road construction activities, mainly in Uttar
Pradesh, Delhi, and Haryana.
SHARADA EDUCATION: CRISIL Rates INR110MM Term Loan at 'B-'
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable' rating to the long-term
bank facility of Sharada Education Trust (SET).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 110 CRISIL B-/Stable
The rating reflects the trust's weak liquidity resulting from its
small cash accruals and ongoing investment in capex. The ratings
also reflect the trust's weak financial risk profile marked by a
small networth, high gearing and weak debt protection metrics.
These rating weaknesses are partially offset by the extensive
experience of the trustees in the education industry along with
their funding support.
Outlook: Stable
CRISIL believes that SET's liquidity profile will remain
constrained over the medium term on account of its small cash
accruals. The outlook may be revised to 'Positive' in case of
improvement in the company's financial risk profile and liquidity
due to higher-than-expected ramp up in its scale of operations
along with improvement in its profitability and higher-than-
expected funding support from promoters. Conversely, the outlook
may be revised to 'Negative' in case of deterioration in the
company's financial risk profile or liquidity due to lower-than-
expected cash accruals, lower-than-expected funding support from
the trustees, or further debt-funded capital expenditure.
Sharada Education Trust was set up in the year 2010 by Dr K. Udaya
Kumar in Bangalore. The trust set up the college Adarsha Institute
of Technology (AIT) which offers Bachelors in Technology (BTech)
courses. The institute is approved by AICTE and is affiliated to
Visvesvaraya Technological University. AIT started its first batch
in 2013.
SILVER SIGN: CRISIL Reaffirms 'B' Ratings on INR50MM Loans
----------------------------------------------------------
CRISIL's ratings on the bank facilities of Silver Sign Pvt Ltd
continue to reflect SSPL's modest scale and working-capital-
intensive nature of operations with low profitability, and weak
financial risk profile marked by a small net worth and a high
gearing. These rating weaknesses are partially offset by the
benefits that SSPL derives from its promoters' extensive industry
experience and its established relationships with major suppliers.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Buyer Credit Limit 50 CRISIL A4 (Reaffirmed)
Foreign Letter of 100 CRISIL A4 (Reaffirmed)
Credit
Overdraft Facility 20 CRISIL B/Stable (Reaffirmed)
Proposed Long-Term 30 CRISIL B/Stable (Reaffirmed)
Bank Loan Facility
Outlook: Stable
CRISIL believes that SSPL will continue to benefit over the medium
term from its promoters' extensive experience and its established
relationships with major suppliers. The outlook may be revised to
'Positive' in case the company reports significant improvement in
its capital structure, driven by higher-than-expected cash
accruals or equity infusion, while maintaining its working capital
requirements at current level. Conversely, the outlook may be
revised to 'Negative' in case SSPL reports lower-than-expected
cash accruals due to lower-than-expected profitability or higher-
than-expected working capital requirements, resulting in a decline
in the company's liquidity.
Update
SSPL registered net sales of INR546 million in 2012-13 (refers to
financial year, April 1 to March 31) as compared to net sales of
INR531 million in 2011-12. The low sales growth was due to below-
average demand for PVC films and sheets. Furthermore, the
operating margin has been low at around 4 per cent in 2012-13 due
to low value addition nature of the business. CRISIL expects the
sales growth and profitability to remain in line with the previous
year driven by low end user demand and low value addition nature
of the business.
The working capital requirements of SSPL increased in 2012-13
reflected in the gross current asset (GCA) of 180 days as compared
to GCA of 155 days in 2011-12. The increase has been due to
stretch in SSPL's debtor days, which increased to 92 days as on
March 31, 2013 from 70 days as on March 31, 2012, because the
company had to extend higher credit period to its customers due to
intensely competitive market. High working capital requirements
are supported by interest bearing unsecured loans from group
companies of INR99.3 million as on March 31, 2013. SSPL's
liquidity is also supported by average bank limit utilisation of
38 per cent for the 12 months ended through September, 2013.
However, SSPL's financial risk profile is constrained on account
of low net worth of INR32.9 million and high total outside
liabilities to tangible net worth (TOLTNW) ratio of 8.45 times as
on March 31, 2013 as compared to a net worth of INR30.2 million
and TOLTNW ratio of 9.27 times as on March 31, 2012.
SSPL reported a profit after tax (PAT) of INR2 million on net
sales of INR546 million in 2012-13 as compared to a PAT of INR2.6
million on net sales of INR531 million in 2011-12.
Incorporated in 2009 by Mr. Arun Kumar Bhaiya, SSPL trades in PVC
flexible plastic sheets (flex), PVC lamination films, PVC vinyl
and other PVC products. SSPL has also recently diversified into
importing LED modules. It has branch offices in Delhi, Mumbai,
Chennai and Kolkata.
SILVERLINE ELECTRICALS: 'B' Ratings on INR32.5MM Loans Reaffirmed
-----------------------------------------------------------------
CRISIL ratings on the bank facilities of Silverline Electricals
Pvt Ltd continue to reflect SEPL's weak financial risk profile,
marked by modest net worth, and its working-capital-intensive
operations. These rating weaknesses are partially offset by the
extensive experience of SEPL's promoters in the transformer
industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 10 CRISIL A4 (Reaffirmed)
Cash Credit 15 CRISIL B/Stable (Reaffirmed)
Term Loan 10 CRISIL B/Stable (Reaffirmed)
Proposed Long-Term
Bank Loan Facility 7.5 CRISIL B/Stable (Reaffirmed)
Letter of Credit 7.5 CRISIL A4 (Reaffirmed)
Outlook: Stable
CRISIL believes that SEPL's scale of operations will remain modest
over the medium term despite healthy growth over a small base. The
financial flexibility and ability to ramp up the operations will
remain restricted because of its small net worth. The outlook may
be revised to 'Positive' if SEPL reports significant improvement
in its scale of operations on a sustainable basis while prudently
managing its working capital. Conversely, the outlook may be
revised to 'Negative' if the company's liquidity weakens, most
likely because of incremental working capital requirements.
SEPL, based in Maharashtra, was incorporated in January 2012. The
company is promoted by Mr. Milind Mahajan, Mr. Santosh
Vishwakarma, and Mr. Sachin Hivarkar. SEPL had, in March 2012,
taken over the assets of Haphen Transformers India Pvt Ltd for
about INR40 million. SEPL manufactures transformers, feeder
pillars, and distribution boxes. The company also undertakes
service activities, such as installing, commissioning, and
maintenance of these products. The company manufactures
transformers in the range of 25 kilovolt ampere (kVA) to 5000 kVA.
The company has a manufacturing unit in Maharashtra with capacity
of manufacturing 20,000 kVA of transformers per month.
SRI KARUNAMBIKAI: CRISIL Suspends 'B' Ratings on INR745.3MM Loans
-----------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Sri Karunambikai Mills Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 18.5 CRISIL A4 Suspended
Cash Credit 90.0 CRISIL B/Negative Suspended
Letter of Credit 78.9 CRISIL A4 Suspended
Long-Term Loan 385.3 CRISIL B/Negative Suspended
Working Capital
Demand Loan 270.0 CRISIL B/Negative Suspended
The suspension of ratings is on account of non-cooperation by
SKMPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SKMPL is yet to
provide adequate information to enable CRISIL to assess SKMPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
SKMPL was incorporated in 1956 and promoted by Mr. Chennimalai
Gounder. The company has two cotton yarn spinning units in Tamil
Nadu - the unit in Somanur has 27,360 spindles, and the one in
Vinnapalli has 6048 spindles and 1000 rotors.
SRIKARA PARENTERALS: CRISIL Suspends 'D' Ratings on INR68MM Loans
-----------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of
Srikara Parenterals Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 30 CRISIL D Suspended
Proposed Long-Term 2.8 CRISIL D Suspended
Bank Loan Facility
Rupee Term Loan 35.2 CRISIL D Suspended
The suspension of ratings is on account of non-cooperation by
Srikara with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, Srikara is yet
to provide adequate information to enable CRISIL to assess
Srikara's ability to service its debt. The suspension reflects
CRISIL's inability to maintain a valid rating in the absence of
adequate information. CRISIL considers information availability
risk as a key credit factor in its rating process and non-sharing
of information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
Incorporated in 2006 by Mr. G. N. Manikyala Rao, Srikara
Parenterals Pvt. Ltd. manufactures intravenous fluids such as
Ringer's lactate solution, saline, and sodium lactate. These
products are used for fluid and nutrition replacement in the human
body. The company caters to hospitals and medical stores across
South India through consignment agents. Srikara also bids for
tenders floated by government hospitals. The company's
manufacturing facility is located at Atukuru in Krishna district
(Andhra Pradesh).
SUPREME COT-SPIN: CRISIL Suspends 'D' Ratings on INR263.8MM Loans
-----------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Supreme
Cot-Spin Mills (India) Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 25.4 CRISIL D Suspended
Cash Credit 78.5 CRISIL D Suspended
Term Loan 159.9 CRISIL D Suspended
The suspension of ratings is on account of non-cooperation by
Supreme Cot-Spin with CRISIL's efforts to undertake a review of
the ratings outstanding. Despite repeated requests by CRISIL,
Supreme Cot-Spin is yet to provide adequate information to enable
CRISIL to assess Supreme Cot-Spin's ability to service its debt.
The suspension reflects CRISIL's inability to maintain a valid
rating in the absence of adequate information. CRISIL considers
information availability risk as a key credit factor in its rating
process and non-sharing of information as a first signal of
possible credit distress, as outlined in its criteria 'Information
Availability Risk in Credit Ratings'
Incorporated in 2005 by Mr. R Gopalasamy, Supreme Cot-Spin is part
of the Supreme group. The company owns 16,800 spindles, and
manufactures cotton yarn and grey cloth. The Supreme group has six
firms engaged in spinning, sizing, and weaving operations, with
16,800 owned and 24,500 leased spindles, 10 power looms, and a
sizing capacity of 3600 tonnes per annum.
TILAK RAM: CRISIL Reaffirms 'B' Rating on INR100MM Cash Credit
--------------------------------------------------------------
CRISIL's rating on the long-term bank facilities Tilak Ram Babu
Ram Pvt Ltd continues to reflect TRBR's limited pricing
flexibility due to its presence in the highly competitive and
fragmented cotton ginning and trading industry, susceptibility of
its operating margin to volatility in cotton prices, and its weak
financial risk profile, marked by a small net worth and highly
geared capital structure. These rating weaknesses are partially
offset by the extensive experience of the company's promoter in
the cotton industry, and its well established relationships with
customers and suppliers.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 100 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that TRBR will continue to benefit over the medium
term from its promoter's extensive experience in the cotton
industry and its established relationships with customers and
suppliers. The outlook may be revised to 'Positive' if the firm
increases its scale of operations substantially, while improving
its profitability and capital structure. Conversely, the outlook
may be revised to 'Negative' if TRBR's profitability declines,
most likely because of adverse movements in cotton prices, thereby
weakening its financial risk profile.
Update
TRBR's business risk profile remains moderate, in line with past
trends. The company's turnover declined marginally to INR931.2
million in 2012-13 (refers to financial year, April 1 to
March 31) from INR1200 million in the previous year, because of
lower trading sales. TRBR's operating margin has remained low in
the range of 1.1 to 1.7 per cent over the past two years due to
low value addition and the commodity nature of the product traded
in. Its financial risk profile is weak, with high gearing,
estimated at 14.4 times as on March 31, 2013.
TRBR's liquidity remains stretched, with high bank limit
utilisation at an average of 92 per cent over the 12 months
through September 2013, and low cash accruals, expected at INR2
million to INR2.5 million in 2013-14. However, the company's
liquidity is supported by unsecured loans, the balance of which
stood at INR38.9 million as on March 31, 2013, and no repayment
obligations in the absence of any long-term debt.
TRBR was incorporated on May 29, 2012, promoted by Haryana-based
Mr. Raj Kumar Garg. On April 1, 2013, TRBR purchased the business
of Tilak Industries (Tilak), the promoter's group concern, which
was established as a proprietorship firm in 1992 in Tohna
(Haryana). TRBR is engaged in cotton ginning and in trading in
cotton bales. The company derives around 70 per cent of its
revenues from trading in cotton bales, while the remaining is
through ginning operations. TRBR's manufacturing unit is at Tohna,
with a capacity of around 180 bales per day of cotton.
TRBR reported a profit after tax (PAT) of INR1.4 million on net
sales of INR931.2 million for 2012-13, against a PAT of INR1.8
million on net sales of INR1.20 billion for 2011-12.
VELAMMAL SUBBIAH: CRISIL Reaffirms 'D' Rating on INR120MM Loan
--------------------------------------------------------------
CRISIL's rating on the bank facilities of Velammal Subbiah
Educational Trust (VSET) continues to reflect instances of delay
by VSET in servicing its debt; the delays have been caused by the
trust's weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long-Term Loan 120 CRISIL D (Reaffirmed)
VSET is also exposed to regulatory risks and to intense
competition in the educational segment. However, VSET benefits
from the industry experience of its trustees and the favorable
growth prospects of the education industry.
Update
For 2011-12 (refers to financial year, April 1 to March 31),
VSET's revenues grew by around 50 per cent over the previous year.
The trust's operating profitability was high at 40 per cent during
2011-12. Its financial risk profile has remained moderate marked
by a high gearing but above-average debt protection metrics. Its
gearing was at 2.8 times as on March 31, 2012 because of large
debt and moderate accretion to reserves. The debt protection
metrics were above average marked by net cash accruals to total
debt and interest coverage ratios of 0.3 times and 4.35 times,
respectively, for 2011-12 on account of high profitability and
moderate accruals. VSET's liquidity is however constrained on
account of mismatch in cash flows. The trust receives majority of
its revenues in the months of July and August (at the beginning of
the academic year). However, the trust has huge operating costs
such as salaries which are to be paid on a monthly basis. Also,
the trust is required to service interest on debt on a monthly
basis.
VSET was established in 2009 as a trust under the Indian Trust Act
(1881) by Mr. S Chandrasekaran. It manages four educational
institutions in Coimbatore (Tamil Nadu). The trust offers
undergraduate and postgraduate courses in the fields of
engineering, computer application, management, and architecture
with total approved intake of 878 students per year.
VENKETESHUDYOG: CARE Assigns 'B-' Rating to INR10cr LT Bank Loans
-----------------------------------------------------------------
CARE assigns 'CARE B-' and 'CARE A4' ratings to the bank
facilities of Venketeshudyog.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 10 CARE B- Assigned
Facilities
Short-term Bank 5 CARE A4 Assigned
Facilities
The ratings assigned by CARE are based on the capital deployed by
the proprietor and the financial strength of the firm at present.
The ratings may undergo change in case of withdrawal of the
capital or the unsecured loans brought in by the proprietor in
addition to the financial performance and other relevant factors.
Rating Rationale
The ratings assigned to the bank facilities of VenketeshUdyog (VU)
are constrained by the small scale of operations coupled with low
margin trading nature of business, risk of non-renewal of
dealership agreement from Steel Authority of India Limited (SAIL),
stiff competition due to the fragmented nature of the industry
along with the presence of many unorganized players, volatility in
prices of trading materials, working capital intensive nature of
operations and high leverage ratios. The aforesaid constraints are
partially offset by the experience of the proprietor with a long
track record of operations and sole authorized dealer of Steel
Authority of India Ltd resulting in low geographical concentration
risk.
The ability of the firm to increase the scale of operations and
profitability margins and the ability to manage working capital
effectively are the key rating sensitivities.
VenkateshUdyog (VU), established in April 1987 as a proprietorship
firm by one MrBankat Raja Garodia of Ranchi, Jharkhand,is engaged
in trading activities of iron & steel related products (like
TMT bar, angle, light structural and GP/GC sheetsetc) which find
its application in iron and steel fabrication, forging industry,
construction industry and automobile industry. Along with local
sales in Jharkhand, VU has wide spread operation across the states
ofWest Bengal, Orissa, Bihar and Chattisgarh. Since 1998,
VenkateshUdyoghas entered into an authorized dealership agreement
with Steel Authority of India Limited (SAIL) for selling the iron
and steel related products of SAIL.
Furthermore, the firm also sells products of other recognized
steel manufacturers like Jindal Steel and Power Limited, Chinar
Steel, etc, as well as many local iron and steel producers.
As per the audited results of FY13(refers to the period
April 1 to March 31), VU reported a PBILDT and PAT of INR1.38
crore (INR0.56crore in FY12) and INR0.23crore (PAT of INR0.44crore
in FY12), respectively, on a total income of INR75.63crore
(INR81.92 crore in FY12).
VIKAS STRIPS: CRISIL Suspends 'BB' Rating on INR170MM Loan
----------------------------------------------------------
CRISIL has suspended its rating on the bank facility of
Vikas Strips Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 170 CRISIL BB/Stable Suspended
The suspension of ratings is on account of non-cooperation by VSL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, VSL is yet to
provide adequate information to enable CRISIL to assess VSL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
Vikas Strips, incorporated in June 2003, manufactures CR strips.
It started commercial operations in November 2005 and has an
installed capacity of 39,000 tonnes per annum at its plant at
Faridabad, Haryana. It sells its products directly in the domestic
market, especially in Haryana, Uttar Pradesh, and Delhi. Around 60
per cent of VSL's revenues are derived from vendors of original
equipment manufacturers, and the rest from traders.
VINDHYABASINI RICE: CRISIL Assigns 'B+' Ratings to INR100MM Loans
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank loan facilities of Vindhyabasini Rice Mills Cluster Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 24 CRISIL B+/Stable
Term Loan 31.6 CRISIL B+/Stable
Proposed Long-Term
Bank Loan Facility 44.4 CRISIL B+/Stable
The rating reflects VRMCPL's modest scale of operations and
exposure to intense competition in the rice milling business, and
its large working capital requirements. These rating weaknesses
are partially offset by the experience of the promoters in the
rice milling business.
Outlook: Stable
CRISIL believes that VRMCPL will continue to benefit over the
medium term from its promoter's extensive experience in the rice
milling business. The outlook may be revised to 'Positive' if the
company's scale of operations improves while it maintains its
profitability or better working capital management, leading to
improvement in its financial risk profile, especially liquidity.
Conversely, the outlook may be revised to 'Negative' if the
company undertakes large than expected debt-funded expansions,
registers lower than expected accruals, or stretch in working
capital cycle leading to weakening in its liquidity.
Incorporated in January 2010, VRMCPL mills and processes par-
boiled rice. Its rice mill is located in Rohtas (Bihar). The day-
to-day operations are managed by Mr. Sunil Singh.
=================
I N D O N E S I A
=================
* Fitch Says Home Sales to Decline; Price Growth to Slow in 2014
----------------------------------------------------------------
Fitch Ratings expects Indonesian residential property developers
to book lower presales in 2014 due to stricter mortgage
regulations for second homes, higher average selling prices (ASP)
and limited new project launches. The decline in presales will be
more evident in the medium- to high-end property segments, where
the buyers are typically upgraders for whom home purchases can be
postponed.
Fitch views residential property developers with large, low cost
and high quality land banks as better positioned to conserve cash
amid lower presales. Developers with sufficient mature land will
be able to continue generating presales cash flows, and scale back
land acquisitions to conserve cash as additional liquidity
buffers.
Recurring revenue is also an important liquidity source when
development sales are slow. In Fitch's view, PT Lippo Karawaci Tbk
(Lippo, BB-/Stable), PT Kawasan Industri Jababeka (KIJA,
B+/Stable) and PT Alam Sutera Realty Tbk (ASRI, B+/Stable) have
financial flexibility from steady sources of recurring income.
Lippo operates various shopping malls and hospitals, KIJA operates
a power plant with a long-term off-take agreement with PT
Perusahaan Listrik Negara (PLN, BBB-/Stable), while ASRI operates
shopping malls and a cultural park.
Prices for Indonesian residential property rose sharply at about
30% annually over the past three years. While such a steep
increase within a short period would be worrying elsewhere, that
is not the case in Indonesia, where property prices are coming off
a lower base compared to peers.
After prices more than doubled, home prices in Indonesia are now
more comparable with those in its peers. This is based on Fitch's
observation of the affordability ratio (price/ income; expressed
in years of income) in 2012 - Jakarta was at 12.64, compared with
Manila at 14.69, Mumbai at 13.61 and Hanoi at 29.46. That said,
Fitch expects ASP growth to slow to a more sustainable 7%-10%
annually.
Tighter government control over the mortgage market is expected to
further moderate ASP growth. However, Indonesians, like
counterparts in many other emerging markets, have limited
investment options and most still make home purchases using cash.
Mortgages made up only about 11% of total loans extended by
Indonesian banks in as of September 2013. This limits the impact
of the mortgage restrictions on demand, and we expect prices to
remain supported in the medium-term.
Indonesia's young population also provides an important support
for housing demand, especially for first-time home owners. More
than 50% of Indonesia's 250 million people are aged 30 years or
below and a large number of these youths will be buying their
first homes in the near future.
=========
J A P A N
=========
SONY CORP: Fitch Affirms Long-term IDRs at BB-; Outlook Neg.
------------------------------------------------------------
Fitch Ratings has affirmed Sony Corporation's Long-Term Foreign-
and Local-Currency Issuer Default Ratings (IDRs) at 'BB-' and
maintained the Outlooks at Negative. A full list of rating actions
is at the end of this release.
Key Rating Drivers:
Slow Recovery Expected: Sony's credit ratings are constrained by
its low profitability and vulnerability to competition and
technology shifts. The ratings reflect Fitch's belief that
meaningful recovery in Sony's profitability and cash generation
will be slow, given the company's loss of technology leadership
and high competition in its key products. In addition, unless
there is further depreciation of the yen, we do not expect
currency effects to deliver much further growth. Fitch believes
that more aggressive reform to revamp the company's product
portfolio and to cut fixed costs may be required.
Continued TV Operating Losses: Sony's operating losses in the TV
segment are likely to continue, as happened during 2QFYE14 due to
intense competition, market saturation of flat-panel TVs in
developed countries, and weakened demand in emerging markets as a
result of depreciation in their currencies. Further profitability
improvement in the TV segment has been slow after the disposal of
S-LCD and restructuring in FYE12 and FYE13. The operating loss of
the TV segment totalled JPY9bn in 2QFYE14, compared with operating
loss of JPY10bn a year earlier.
Slowly Improving Smartphone Margins: Fitch forecasts that
improvement in Sony's smartphone margins will be slow but steady,
despite improvement in quality and brand recognition. This is
because competition is becoming increasingly fierce among second-
tier manufacturers as they attempt to close the technological gap
with first-tier manufacturers. Fitch expects the industry will
remain dominated by Samsung Electronics Co., Ltd. (A+/Stable) and
Apple Inc. at least in the short to medium term, making it
difficult for Sony to improve its market share significantly.
Heightened Smartphone Substitution: Fitch expects the impact of
smartphone substitution on Sony's PCs, digital cameras and
camcorders to continue to be a drag on the company's
profitability. Higher smartphone profit in 2QFYE13 was unable to
offset losses in the PC and digital camera segments. Total
shipments of digital cameras produced by Japanese companies
contracted 39% yoy in the first nine months of 2013, according to
the Camera & Imaging Products Association. During the same period,
worldwide PC shipments fell 11% yoy, according to IDC.
High Debt, Slow Deleveraging: Fitch expects that Sony's funds flow
from operations (FFO)-adjusted leverage is to likely remain above
5x in the short term. Fitch believes that its bid to achieve a
turnaround in its electronics business in FYE14 will be a
challenge and the FYE15 outlook remains tough. Deleveraging
relying on profitability improvement will be slow. Sony's total
debt of JPY1.33bn, excluding Sony Financial Holdings (SFH), was
little changed at end-September 2013 from the same period last
year.
Liquidity Weakened, Still Adequate: Fitch expects Sony's liquidity
to remain adequate, though it has weakened due to continued losses
in the electronics business and increased investment in working
capital. Sony had a cash balance of JPY528bn at end-September
2013, compared with its debt due within one year of JPY446bn. The
company also had unused credit facilities of JPY819bn at end-
September 2013.
Rating Sensitivities:
Negative: Future developments that may, individually or
collectively, lead to negative rating action include (for Sony
excluding SFH):
-- sustained negative EBIT margins
-- FFO-adjusted leverage sustained above 5.0x.
Positive: Future developments that may, individually or
collectively, lead to Fitch revising the
Outlook to Stable include (for Sony excluding SFH):
-- sustained positive EBIT margins
-- FFO-adjusted leverage is sustained below 5.0x
List of Rating Actions:
Long-Term Foreign- and Local-Currency IDRs affirmed at 'BB-' with
Negative Outlook
Local-currency senior unsecured rating affirmed at 'BB-'
Short-Term Foreign- and Local-Currency IDRs affirmed at 'B'
TOKYO ELECTRIC: Seeks JPY2 Trillion Loan for New Power Plants
-------------------------------------------------------------
Jacob Adelman at Bloomberg News reports that the Asahi newspaper
said Tokyo Electric Power Co. wants to borrow JPY2 trillion
($20 billion) for new power plants and overseas operations as it
maps a return to profitability after the Fukushima nuclear
disaster.
The request to banks including Mitsubishi UFJ Financial Group
Inc., Sumitomo Mitsui Financial Group Inc., Mizuho Financial Group
Inc. and the government-owned Development Bank of Japan Inc. is in
addition to JPY500 billion already being sought from the
creditors, the Asahi reported, without saying where it got the
information, Bloomberg relays.
According to Bloomberg, the loan is being sought as the nation's
biggest utility, known as Tepco, devises a business plan that will
probably call for greater reliance on thermal fuels due to its
dwindling nuclear fleet. A further JPY2 trillion in borrowing
would be almost double the money the government injected into
Tepco last year to cover costs from the March 2011 nuclear
disaster, Bloomberg notes.
Tepco and its majority owner, the publicly funded Nuclear Damage
Liability Facilitation Fund, plan to use the additional credit to
replace aging thermal plants and expand overseas electricity
operations, Bloomberg relates citing the Asahi.
Two people at two banks involved in the discussions who asked not
to be identified confirmed that their companies had been contacted
about the additional loan. One of the people said his bank was
told the total size of the loan being sought may be about JPY2
trillion, Bloomberg reports.
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.
====================
N E W Z E A L A N D
====================
CHORUS LTD: Review May Lack Transparency, Labour Says
-----------------------------------------------------
Tom Pullar-Strecker at Stuff.co.nz reports that Labour said a
government-ordered review into Chorus Ltd's finances will "lack
transparency" unless the Government makes public the draft report
that it expects to receive from Ernst & Young Australia next
month.
Stuff.co.nz notes that the Government has contracted Ernst & Young
to check whether Chorus will be in a position to fulfill its
ultrafast broadband contract with the Crown in the wake of
regulation that would slash the price it can charge for its copper
phone and broadband network.
According to the report, Communications Minister Amy Adams said
Ernst & Young's final report, due by December 12, would be
published, minus any commercially sensitive information. But a
spokesman for Mr. Adams said the Government had no plans to
release its draft report, due six days earlier, Stuff.co.nz
relays.
The report relates that Labour's associate ICT spokeswoman, Clare
Curran, said she was concerned that could give the Government the
opportunity to influence the impression created by the final
report, for example by ordering Ernst & Young Australia to
elaborate on the difficulties Chorus faced or the case for
intervention.
"In the circumstances, with high public interest, there should be
a high degree of transparency around the draft report as well as
the final report," Stuff.co.nz quotes Ms. Curran as saying.
Stuff.co.nz states that the Commerce Commission has ruled the
combined monthly price Chorus can charge phone companies for a
copper phone line and broadband connection should fall by $10.54
to $34.44 from December next year.
But broker Forsyth Barr has forecasted the commission would need
to put the price all the way back up again in about two years once
it completed a "full pricing principle review", which it must
carry out at the request of Chorus, the report notes.
Chorus has requested such a review of copper phone line pricing
and is expected to do so with regard to the broadband component of
the combined service, the report adds.
As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 8, 2013, Stuff.co.nz said credit ratings agency Standard &
Poor's expects Chorus will breach its banking covenants within two
years unless it receives help. Stuff.co.nz said that fresh
evidence has emerged both for and against the contention that
Chorus could absorb a NZ$10 reduction in the price it can charge
for copper broadband without government intervention. According
to Stuff.co.nz, Standard & Poor's and Moody's are both reviewing
Chorus's credit ratings after the Commerce Commission on
November 5 ordered a 23 per cent cut in wholesale copper broadband
pricing.
Chorus Ltd -- http://chorus.co.nz/-- is a telecommunications
utility provider. The Company provides services, such as network
access services, property co-location services, field services and
roadmap of services. The Company's network access services provide
direct access to Chorus local access network. It connects around
1.8 million New Zealand homes and businesses. Its property
portfolio includes local telephone exchanges, roadside cabinets,
mobile masts and radio towers. The Company manages security and
access to its buildings and infrastructure across the country. The
Company installs or repairs end customers' phone or Internet
services. The phone and Internet companies use its network to
deliver services. The Company also provides services to radio
operators or organizations that need wireless communications.
These organizations include TeamTalk, NZ Police, Civil Defense
organizations and broadcasters.
====================
S O U T H K O R E A
====================
HYUNDAI MERCHANT: To Sell Pusan Newport to Avoid Liquidity Crisis
-----------------------------------------------------------------
Choi Kyong-ae at The Korea Times reports that Hyundai Merchant
Marine (HMM) is expected to sell its core assets, including Pusan
Newport, to avoid a liquidity crisis following in the footsteps of
Dongbu Group's self-rescue measures.
"We will reduce our outstanding debt by selling core assets and
issuing perpetual bonds with the approval of creditor banks," an
official at HMM, the flagship of the Hyundai Group, told The Korea
Times by telephone.
The report relates that HMM, the country's second-largest shipping
company by sales after Hanjin Shipping, has raised 525 billion won
($500 million) since December through a rights offering and the
sale of cranes. The state-run Korea Development Bank (KDB)
recently bought corporate debt worth KRW280 billion from the
shipping firm in October, the report recalls.
"We do not see any immediate liquidity problems through early next
year but we will make a continued effort to sell our assets to cut
debt," the official said asking not to be named, The Korea Times
relates.
However, such efforts are seemingly falling short of casting off
investor worries as HMM is still struggling with a heavy debt-to-
equity ratio of nearly 1,000 percent as of the end of September.
Its debt currently stands at more than KRW6 trillion, according to
the report.
Korea Investors Service (KIS) and Korea Ratings recently
downgraded the corporate rating of Hyundai Merchant to BBB+
from A-, the report discloses.
"It is uncertain when the shipping industry will begin to recover
amid oversupply and squeezed margins. Delayed recovery will
continue to put downward pressure on shipping firms," the report
quotes Moon Chang-ho, head of KIS Fundamental Rating Group 2, as
saying.
"The recent downgrade will have a negative impact on HMM when it
applies for loans from banks as well as on the overall businesses
of its parent Hyundai Group," Kang Dong-jin, an analyst at HMC
Investment Securities, said.
The Korea Times adds that HMM's additional restructuring moves
include the sale of a 50 percent stake in Pusan Newport and asset-
backed loans with three years of liquefied natural gas (LNG)
shipping charges as collateral, the official explained.
Hyundai Merchant Marine Co., Ltd., is a Korea-based company
specialized in the provision of shipping services. The Company
provides its services under two main segments: container and bulk.
=============
V I E T N A M
=============
TRANG AN SECURITIES: To Transfer Accounts to Viet Nam Investment
----------------------------------------------------------------
Biz Hub reports that Trang An Securities Company would transfer
its 12,000 trading accounts to the Viet Nam Investment Securities
Company (IVS), the account receiver announced November 19.
Biz Hub relates that the number of shares held by these accounts
reached around 30 million shares, according to the Viet Nam
Securities Depository's data as of November 15.
Among the accounts, a large proportion belongs to Chinese
investors as the current chairman of Trang An Securities holds
Chinese nationality, the report relays.
In April last year, Yang Xiao Dong, the largest shareholder of
Trang An Securities, was appointed chairman of the company,
replacing Le Ho Khoi who was then arrested earlier this year for
appropriating clients' assets, Biz Hub recalls.
In May last year, Biz Hub relates, many investors opening accounts
at Trang An Securities reported that their money and securities
disappeared without a reason.
After increasing his stake in Trang An Securities, Mr. Yang
offered a loan of VND29.8 billion (US$1.4 million) to the company.
"In fact, the shareholder succeeded in acquiring the brokerage at
a low price, and he can restructure it in his own way," the report
quotes a securities analyst as saying.
According to the report, Mr. Yang said he wanted to transfer the
accounts to a domestic brokerage firm and continue to invest while
the Vietnamese market remains promising.
Trang An Securities was de-listed in September, while the Viet Nam
Investment Securities is performing normally, having no
accumulated losses, the report adds.
* VIETNAM: Debts Restructured to Support Failing Firms
------------------------------------------------------
Biz Hub reports that credit institutions have restructured nearly
VND300 trillion (US$13.63 billion) in debts, accounting for
10 per cent of total outstanding loans.
According to the report, Governor of the State Bank of Viet Nam,
Nguyen Van Binh, said measures used to restructure the repayment
period meant large amounts of outstanding loans would remain as
such, instead of becoming non-performing loans (NPLs).
As many as 60 per cent of the restructured debts would have become
bad loans without the restructuring, Mr. Binh, as cited by Biz
Hub, said.
The restructuring has also eased borrowing conditions for
businesses with no penalty interest payments being applied, the
report adds.
Biz Hub relates that Mr. Binh said the measures for self-handling
NPLs of banks, including debt restructuring have yielded positive
and meaningful results for both businesses and banks.
In late May, the report recalls, the central bank had to delay the
application of Circular 2 on bad debt classification and risk
management until June 2014.
The report says the move aimed to help enterprises access credit,
boost lending and reduce lending interest rates to fight looming
economic downturn and rising bankruptcy rates.
As a result of the delay, credit institutions have been permitted
to restructure repayment periods for loans, the report notes.
===============
X X X X X X X X
===============
* Large Companies with Insolvent Balance Sheets
-----------------------------------------------
Total
Total Shareholders
Assets Equity
Company Ticker (US$MM) (US$MM)
------- ------ ------ ------------
AUSTRALIA
AACL HOLDINGS LT AAY 39.61 -4.66
AAT CORP LTD AAT 32.50 -13.46
ANAECO LTD ANQ 12.09 -16.38
ARASOR INTERNATI ARR 19.21 -26.51
AUSTRALIAN ZI-PP AZCCA 77.74 -2.57
AUSTRALIAN ZIRC AZC 77.74 -2.57
BECTON PROPERTY BEC 267.47 -15.73
BIRON APPAREL LT BIC 19.71 -2.22
CLARITY OSS LTD CYO 28.67 -8.42
CWH RESOURCES LT CWH 12.09 -1.29
HAOMA MINING NL HAO 23.85 -33.70
LANEWAY RESOURCE LNY 10.84 -11.48
MACQUARIE ATLAS MQA 1,643.35 -1,018.17
MISSION NEWENER MBT 10.95 -25.02
NATURAL FUEL LTD NFL 19.38 -121.51
QUICKFLIX LTD QFX 15.84 -1.91
REDBANK ENERGY L AEJ 295.35 -13.08
RENISON CONSO-PP RSNCL 10.84 -11.48
RIVERCITY MOTORW RCY 386.88 -809.14
RUBICOR GROUP LT RUB 60.12 -61.63
STERLING PLANTAT SBI 37.84 -10.78
TZ LTD TZL 26.01 -1.69
CHINA
ANHUI GUOTONG-A 600444 73.14 -9.75
ATLANTIC NAVIGAT ATL 89.78 -6.98
CHANG JIANG-A 520 818.55 -122.68
CHENGDU UNION-A 693 24.18 -30.53
CHINA KEJIAN-A 35 49.24 -299.06
CHINA OILFIELD T COT 18.84 -19.88
HEBEI BAOSHUO -A 600155 101.91 -102.90
HUASU HOLDINGS-A 509 73.01 -35.36
HULUDAO ZINC-A 751 471.13 -546.12
HUNAN TIANYI-A 908 58.94 -11.50
JIANGSU ZHONGDA 600074 351.03 -9.74
JILIN PHARMACE-A 545 32.98 -6.85
QINGDAO YELLOW 600579 139.12 -58.98
SHENZ CHINA BI-A 17 26.30 -279.51
SHENZ CHINA BI-B 200017 26.30 -279.51
SHENZ INTL ENT-A 56 334.77 -70.20
SHENZ INTL ENT-B 200056 334.77 -70.20
SHIJIAZHUANG D-A 958 212.89 -118.63
TAIYUAN TIANLO-A 600234 63.16 -15.00
WUHAN BOILER-B 200770 214.39 -201.83
WUHAN XIANGLON-A 600769 83.73 -85.75
XIAN HONGSHENG-A 600817 138.05 -60.58
HONG KONG
ASIA COAL LTD 835 20.37 -11.89
BIRMINGHAM INTER 2309 63.14 -6.89
BUILDMORE INTL 108 16.89 -47.61
CELEBRATE INTERN 8212 17.15 -3.56
CHINA E-LEARNING 8055 22.22 -2.95
CHINA HEALTHCARE 673 32.51 -25.02
CHINA OCEAN SHIP 651 339.71 -56.14
CHINA ORIENTAL 2371 14.94 -1.53
EFORCE HLDGS LTD 943 63.68 -4.62
FU JI FOOD & CAT 1175 26.40 -153.32
GRANDE HLDG 186 255.10 -208.18
HAO WEN HOLDINGS 8019 20.40 -0.60
ICUBE TECHNOLOGY 139 20.70 -4.03
MASCOTTE HLDGS 136 176.50 -142.02
MELCOLOT LTD 8198 13.19 -28.51
PALADIN LTD 495 162.31 -3.89
PROVIEW INTL HLD 334 314.87 -294.85
SINO RESOURCES G 223 38.67 -23.83
SURFACE MOUNT SMT 32.88 -10.68
TLT LOTTOTAINMEN 8022 20.48 -3.75
U-RIGHT INTL HLD 627 16.58 -204.32
INDONESIA
APAC CITRA CENT MYTX 187.16 -6.32
ARPENI PRATAMA APOL 416.73 -206.52
ASIA PACIFIC POLY 410.59 -809.94
ICTSI JASA PRIMA KARW 56.78 -1.30
MATAHARI DEPT LPPF 232.55 -190.10
PANCA WIRATAMA PWSI 28.67 -35.63
PERMATA PRIMA SA TKGA 10.70 -1.55
RENUKA COALINDO SQMI 14.81 -1.35
INDIA
ABHISHEK CORPORA ABSC 58.35 -14.51
AGRO DUTCH INDUS ADF 105.49 -3.84
ALPS INDUS LTD ALPI 215.85 -28.22
AMIT SPINNING AMSP 16.21 -6.54
ARTSON ENGR ART 11.81 -10.16
ASHAPURA MINECHE ASMN 167.68 -67.64
ASHIMA LTD ASHM 63.23 -48.94
BELLARY STEELS BSAL 451.68 -108.50
BLUE BIRD INDIA BIRD 122.02 -59.13
CAMBRIDGE TECHNO CTECH 12.77 -7.96
CELEBRITY FASHIO CFLI 27.59 -8.60
CFL CAPITAL FIN CEATF 12.36 -49.56
CHESLIND TEXTILE CTX 20.51 -0.03
COMPUTERSKILL CPS 14.90 -7.56
CORE HEALTHCARE CPAR 185.36 -241.91
DCM FINANCIAL SE DCMFS 18.46 -9.46
DFL INFRASTRUCTU DLFI 42.74 -6.49
DHARAMSI MORARJI DMCC 21.44 -6.32
DIGJAM LTD DGJM 99.41 -22.59
DISH TV INDIA DITV 517.02 -18.42
DISH TV INDI-SLB DITV/S 517.02 -18.42
DUNCANS INDUS DAI 122.76 -227.05
FIBERWEB INDIA FWB 13.22 -9.70
GANESH BENZOPLST GBP 43.90 -18.27
GOLDEN TOBACCO GTO 109.72 -5.01
GSL INDIA LTD GSL 29.86 -42.42
GUJARAT STATE FI GSF 10.26 -303.64
GUPTA SYNTHETICS GUSYN 52.94 -0.50
HARYANA STEEL HYSA 10.83 -5.91
HINDUSTAN SYNTEX HSYN 11.46 -5.39
HMT LTD HMT 123.83 -517.57
INDAGE RESTAURAN IRL 15.11 -2.35
INTEGRAT FINANCE IFC 49.83 -51.32
JAGJANANI TEXTIL JAGT 10.69 -1.88
JCT ELECTRONICS JCTE 88.67 -72.23
JENSON & NIC LTD JN 16.65 -75.51
JOG ENGINEERING VMJ 50.08 -10.08
JYOTHY CONSUMER JYOC 69.07 -31.72
KALYANPUR CEMENT KCEM 24.64 -38.69
KANCO ENTERPRISE KANE 10.59 -4.93
KDL BIOTECH LTD KOPD 14.66 -9.41
KERALA AYURVEDA KERL 13.97 -1.69
KINGFISHER AIR KAIR 1,782.32 -997.63
KINGFISHER A-SLB KAIR/S 1,782.32 -997.63
KITPLY INDS LTD KIT 37.68 -45.35
KM SUGAR MILLS KMSM 19.14 -0.47
LLOYDS FINANCE LYDF 14.71 -10.46
LML LTD LML 50.66 -70.76
MADRAS FERTILIZE MDF 158.91 -64.91
MAHA RASHTRA APE MHAC 22.23 -15.85
MALWA COTTON MCSM 44.14 -24.79
MARKSANS PHARMA MRKS 76.23 -31.89
MILTON PLASTICS MILT 17.67 -51.22
MODERN DAIRIES MRD 32.97 -3.87
MTZ POLYFILMS LT TBE 31.94 -2.57
MYSORE PAPER MSPM 87.99 -8.12
NATL STAND INDI NTSD 22.09 -0.73
NICCO CORP LTD NICC 71.84 -4.91
NICCO UCO ALLIAN NICU 25.42 -79.20
NK INDUS LTD NKI 141.35 -7.71
NRC LTD NTRY 73.10 -51.18
NUCHEM LTD NUC 24.72 -1.60
PANCHMAHAL STEEL PMS 51.02 -0.33
PARAMOUNT COMM PRMC 124.96 -0.52
PARASRAMPUR SYN PPS 99.06 -307.14
PAREKH PLATINUM PKPL 61.08 -88.85
PIONEER DISTILLE PND 53.74 -5.62
PREMIER INDS LTD PRMI 11.61 -6.09
QUADRANT TELEVEN QDTV 150.43 -137.48
QUINTEGRA SOLUTI QSL 16.76 -17.45
RATHI ISPAT LTD RTIS 44.56 -3.93
RELIANCE BROADCA RBN 86.71 -0.35
RELIANCE MEDIAWO RMW 425.22 -21.31
RELIANCE MED-SLB RMW/S 425.22 -21.31
REMI METALS GUJA RMM 101.32 -17.12
RENOWNED AUTO PR RAP 14.12 -1.25
ROLLATAINERS LTD RLT 22.97 -22.24
ROYAL CUSHION RCVP 14.42 -73.93
SADHANA NITRO SNC 16.74 -0.58
SANATHNAGAR ENTE SNEL 39.67 -11.05
SAURASHTRA CEMEN SRC 89.32 -6.92
SCOOTERS INDIA SCTR 19.75 -13.35
SEN PET INDIA LT SPEN 11.58 -26.67
SHAH ALLOYS LTD SA 213.69 -39.95
SHALIMAR WIRES SWRI 25.78 -38.78
SHAMKEN COTSYN SHC 23.13 -6.17
SHAMKEN MULTIFAB SHM 60.55 -13.26
SHAMKEN SPINNERS SSP 42.18 -16.76
SHREE RAMA MULTI SRMT 49.29 -25.47
SIDDHARTHA TUBES SDT 75.90 -11.45
SITI CABLE NETWO SCNL 110.69 -14.26
SOUTHERN PETROCH SPET 210.98 -175.98
SPICEJET LTD SJET 386.76 -30.04
SQL STAR INTL SQL 10.58 -3.28
STATE TRADING CO STC 1,279.23 -219.37
STELCO STRIPS STLS 14.90 -5.27
STI INDIA LTD STIB 24.64 -0.44
STORE ONE RETAIL SORI 15.48 -59.09
SUPER FORGINGS SFS 16.31 -5.93
TAMILNADU JAI TNJB 19.13 -2.69
TATA METALIKS TML 156.70 -5.36
TATA TELESERVICE TTLS 1,311.30 -138.25
TATA TELE-SLB TTLS/S 1,311.30 -138.25
TODAYS WRITING TWPL 20.12 -24.62
TRIUMPH INTL OXIF 58.46 -14.18
TRIVENI GLASS TRSG 24.23 -12.34
TUTICORIN ALKALI TACF 20.48 -16.78
UNIFLEX CABLES UFCZ 47.46 -7.49
UNIWORTH LTD WW 159.14 -146.31
UNIWORTH TEXTILE FBW 21.44 -34.74
USHA INDIA LTD USHA 12.06 -54.51
UTTAM VALUE STEE UVSL 510.00 -48.98
VANASTHALI TEXT VTI 25.92 -0.15
VENTURA TEXTILES VRTL 14.33 -1.91
VENUS SUGAR LTD VS 11.06 -1.08
JAPAN
FLIGHT SYS CONSU 3753 10.10 -2.62
HARAKOSAN CO 8894 187.50 -1.90
HIMAWARI HD 8738 251.56 -42.26
INDEX CORP 4835 227.23 -15.54
MISONOZA THEATRI 9664 56.72 -4.80
PROPERST CO LTD 3236 140.82 -353.70
TAIYO BUSSAN KAI 9941 142.90 -0.41
WORLD LOGI CO 9378 34.44 -71.60
KOREA
DAISHIN INFO 20180 740.50 -158.45
DVS KOREA CO LTD 46400 17.40 -1.20
ROCKET ELEC-PFD 425 111.09 -0.42
ROCKET ELECTRIC 420 111.09 -0.42
SHINIL ENG CO 14350 199.04 -2.53
SSANGYONG ENGINE 12650 1,231.13 -119.47
TEC & CO 8900 139.98 -16.61
WOONGJIN HOLDING 16880 2,197.34 -635.50
MALAYSIA
HO HUP CONSTR CO HO 54.37 -16.70
LFE CORP BHD LFE 39.65 -0.70
PUNCAK NIA HLD B PNH 4,400.41 -24.59
VTI VINTAGE BHD VTI 17.74 -3.63
NEW ZEALAND
NZF GROUP LTD NZF 11.69 -4.60
PULSE UTILITIES PLU 14.58 -4.84
PHILIPPINES
GOTESCO LAND-A GO 21.76 -19.21
GOTESCO LAND-B GOB 21.76 -19.21
PICOP RESOURCES PCP 105.66 -23.33
UNIWIDE HOLDINGS UW 50.36 -57.19
SINGAPORE
ADVANCE SCT LTD ASCT 48.74 -2.27
HL GLOBAL ENTERP HLGE 83.11 -4.63
SCIGEN LTD-CUFS SIE 68.70 -42.35
TT INTERNATIONAL TTI 227.86 -88.73
ZHONGXIN FRUIT NLH 19.34 -5.25
THAILAND
ASCON CONSTR-NVD ASCON-R 59.78 -3.37
ASCON CONSTRUCT ASCON 59.78 -3.37
ASCON CONSTRU-FO ASCON/F 59.78 -3.37
CALIFORNIA W-NVD CAWOW-R 28.07 -11.94
CALIFORNIA WO-FO CAWOW/F 28.07 -11.94
CALIFORNIA WOW X CAWOW 28.07 -11.94
DATAMAT PCL DTM 12.69 -6.13
DATAMAT PCL-NVDR DTM-R 12.69 -6.13
DATAMAT PLC-F DTM/F 12.69 -6.13
K-TECH CONSTRUCT KTECH 38.87 -46.47
K-TECH CONSTRUCT KTECH/F 38.87 -46.47
K-TECH CONTRU-R KTECH-R 38.87 -46.47
M LINK ASIA CORP MLINK 83.61 -7.85
M LINK ASIA-FOR MLINK/F 83.61 -7.85
M LINK ASIA-NVDR MLINK-R 83.61 -7.85
PATKOL PCL PATKL 52.89 -30.64
PATKOL PCL-FORGN PATKL/F 52.89 -30.64
PATKOL PCL-NVDR PATKL-R 52.89 -30.64
PICNIC CORP-NVDR PICNI-R 101.18 -175.61
PICNIC CORPORATI PICNI 101.18 -175.61
PICNIC CORPORATI PICNI/F 101.18 -175.61
SHUN THAI RUBBER STHAI 19.89 -0.59
SHUN THAI RUBB-F STHAI/F 19.89 -0.59
SHUN THAI RUBB-N STHAI-R 19.89 -0.59
SUNWOOD INDS PCL SUN 19.86 -13.03
SUNWOOD INDS-F SUN/F 19.86 -13.03
SUNWOOD INDS-NVD SUN-R 19.86 -13.03
THAI-DENMARK PCL DMARK 15.72 -10.10
THAI-DENMARK-F DMARK/F 15.72 -10.10
THAI-DENMARK-NVD DMARK-R 15.72 -10.10
TONGKAH HARBOU-F THL/F 62.30 -1.84
TONGKAH HARBOUR THL 62.30 -1.84
TONGKAH HAR-NVDR THL-R 62.30 -1.84
TAIWAN
BEHAVIOR TECH CO 2341S 30.90 -0.22
BEHAVIOR TECH-EC 2341O 30.90 -0.22
HELIX TECH-EC 2479T 23.39 -24.12
HELIX TECH-EC IS 2479U 23.39 -24.12
HELIX TECHNOL-EC 2479S 23.39 -24.12
IDM INTERNATIONA IDM 30.99 -23.62
POWERCHIP SEM-EC 5346S 2,036.01 -52.74
*********
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 ***