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T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Tuesday, February 11, 2014, Vol. 17, No. 29
Headlines
A U S T R A L I A
A & B CURTAINS: Clifton Hall Appointed as Liquidators
PIANO FOCUS: Hall Chadwick Appointed as Administrators
TEKFORM GROUP: PwC Seeks Expressions of Interest for Tekform
WASABI ENERGY: Creditors Agree to Recapitalization Deal
* AUSTRALIA: Regional Express Says Aviation at Risk of Collapse
C H I N A
* CHINA: Junk Yield Premiums Soar on Looming First Default
I N D I A
AA FASHION: CRISIL Cuts Rating on INR65.6MM Loans to 'D'
BALAJI POLYCOT: CARE Assigns 'B+ ' Rating to INR15.64cr Loan
BANSAL BROTHERS: CRISIL Raises Rating on INR78MM Loans to 'B-'
DECCAN PLAST: CRISIL Reaffirms 'B' Rating on INR50MM Loans
DEEPIKA INFRATECH: CARE Revises Rating on INR128cr Loan to 'B'
DHARANI TEXTILES: CRISIL Ups Rating on INR755.7MM Loans to 'C'
EVERWIN CLOTHINGS: CRISIL Cuts Rating on INR90.4MM Loans to 'D'
EVERWIN TEXTILE: CRISIL Cuts Rating on INR514MM Loans to 'D'
INDRAYANI SALES: CRISIL Reaffirms 'B+' Rating on INR99.9MM Loan
MARUT NANDAN: CRISIL Reaffirms 'B' Rating on INR120MM Loans
NEW HARYANA: ICRA Suspends 'B' Rating on INR9.5cr Loans
PARAMOUNTA LIBERTY: ICRA Reaffirms 'B+' Rating on USD24.05MM Loan
POWERCON CEMENT: CRISIL Assigns 'B+' Rating on INR117.5MM Loans
RAJASTHAN POWERGEN: CARE Puts 'B' Rating to INR7.67cr Bank Loan
RI COTTON: CARE Revises Rating on INR14.53cr Loans to 'B+'
SARDAR JEWELLERS: CRISIL Downgrades Rating on INR90MM Loan to C
SHRINIWAS GINNING: CRISIL Upgrades Rating on INR100MM Loan to B+
SHUKAN HEIGHTS: CRISIL Lowers Rating on INR120MM Term Loan to 'D'
SRI LAKSHMI: CRISIL Reaffirms 'B+' Rating on INR100MM Loans
STATUS CLOTHING: ICRA Reaffirms 'B+' Rating on INR14.50cr Loans
TRK TEXTILE: CRISIL Cuts Rating on INR520.5MM Loans to 'D'
VAH MAGNA: ICRA Withdraws 'D' Rating on INR76.91cr Loans
VAMSI LABS: ICRA Upgrades Rating on INR11.1cr Loans to 'B+'
WARM GEARS: ICRA Assigns 'B-' Ratings to INR29.48cr Loans
J A P A N
SONY CORP: Forecast Revision Spurs Credibility Crisis For Chief
N E W Z E A L A N D
HANOVER FINANCE: Apex Case Parked to Give Way to FMA Settlement
ROSS ASSET: FMA Withdraws Disciplinary Complaint vs. David Ross
X X X X X X X X
* BOND PRICING: For the Week Feb. 3 to Feb. 7, 2014
- - - - -
=================
A U S T R A L I A
=================
A & B CURTAINS: Clifton Hall Appointed as Liquidators
-----------------------------------------------------
Timothy Clifton and Mark Hall were appointed Joint and Several
Liquidators of A & B Curtains Pty Ltd on February 7, 2014.
A meeting of creditors will be held at Clifton Hall, Level 1, 12
Gilles Street, Adelaide, South Australia on Feb. 18, 2014 at 10:30
a.m.
PIANO FOCUS: Hall Chadwick Appointed as Administrators
------------------------------------------------------
Blair Pleash -- bpleash@hallchadwick.com.au -- and
David Ingram -- dingram@hallchadwick.com.au -- of Hall Chadwick
were appointed voluntary administrators of Piano Focus Pty Limited
on Feb. 7, 2014.
A first meeting of the creditors of the Company will be held at
the offices of Hall Chadwick Chartered Accountants, Level 19, 144
Edward Street, in Brisbane, Queensland, on Feb. 19, 2014, at 10:30
a.m.
TEKFORM GROUP: PwC Seeks Expressions of Interest for Tekform
------------------------------------------------------------
Cliff Sanderson at dissolve.com.au reports that expressions of
interest are sought for the purchase of the entire or part of the
business of the Tekform Group.
dissolve.com.au says the group imports and distributes a huge
range of products utilised by cabinet makers, builders, kitchen
makers and commercial shop fitters. It has branches in Queensland,
Victoria and New South Wales. It boasts of a turnover of AUD25
million. Key features of the business include significant current
stock holding, a distribution network in Australia that offers
customers a one-stop shop and sales staff who are experienced in
terms of hardware and decorative products.
The group has relationships with foreign product suppliers and an
established customer base. Expressions of interest are sought by
the administrators until Feb. 12, 2014, dissolve.com.au relays.
The company entered administration on Jan. 29, 2014 with
PricewaterhouseCoopers' Guy Alexander Edwards and
Gregory Winfield Hall being appointed as administrators.
WASABI ENERGY: Creditors Agree to Recapitalization Deal
-------------------------------------------------------
Wasabi Energy Limited said creditors have approved a proposal for
a Deed of Company Arrangement (DOCA) to satisfy creditors and the
initial recapitalisation of the company.
The Creditors voted in favour of the following DOCA proposal:
* The consolidation of the existing issued share capital on the
approximate basis of 1 share (New share) for each 860 shares
currently held;
* The issue to all creditors, including the Secured Loan Note
holders, of 2 New Shares for each $1 of debt owed to them;
* Salida Accelerator Fund will be issued 2 New Shares for each
$1 of debt owed to it, up to half of its outstanding amount
(approximately AUD500,000). The remaining half of the Salida
debt will remain in the Company as a secured debt owing by
the Company with an extension of the maturity date.
* A syndicate of lenders will provide AUD750,000 of secured
funds to allow the Company to progress through the DOCA
process. Mr. John Byrne will participate in this syndicate
and further disclosure of his participation will be made at
the time of execution of the DOCA.
It was expected the company will execute the DOCA in the near
future, and in any event within 15 business days. Final creditor
numbers and number of New Shares to be issued would be determined
once the formal proof of debt process has been completed.
The company said it will provide a summary of the proposed new
capital structure and an operations update at the time of
executive the DOCA and will continue to explore funding options
available to it.
Wasabi Energy Limited (ASX:WAS) -- http://www.wasabienergy.com/
-- is engaged in the management of its projects and investments.
The Company operates in two segments: Investments and Geothermal
Power. The Investment segment provides administration support and
is responsible for the investment activities of the Company. The
Geothermal segment located in the US and UK manages the geo
thermal power activities of the Company.
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 6, 2014, Stewart McCallum and John Lindholm of Ferrier
Hodgson were appointed voluntary administrators of Wasabi Energy
Limited on Dec. 30, 2013, pursuant to Section 436A of the
Corporations Act 2001.
Alliance News said that Wasabi's shares were suspended on
Dec. 23, 2013 after it failed to raise enough funds to pay off
AUD8 million of outstanding loan notes, or to fund its purchase of
the Tuzla Geothermal Power Project in Turkey. On November 27,
Wasabi said it wanted to raise up to US$14.8 million through a
rights issue to complete the purchase of the Tuzla Project, as
well as pay off its debt and provide working capital, Alliance
News disclosed.
* AUSTRALIA: Regional Express Says Aviation at Risk of Collapse
---------------------------------------------------------------
Matt O'Sullivan at the Sydney Morning Herald reports that Regional
Express has warned its first-half profits will slump due to fewer
business travellers, and urged the Abbott government to intervene
to help an aviation industry that is "financially haemorrhaging
and approaching collapse".
SMH relates that days after Virgin Australia was forced to confirm
it would post a large half-year loss, the nation's largest
independent regional airline has forecast a fall in pre-tax
profits by 60 per cent to about AUD5 million for the six months to
December after business travel "really plummeted".
Leisure travel also declined slightly during the first half, a
period when Australian airlines typically make the bulk of their
earnings, the report says.
According to the report, Rex chief operating officer Garry Filmer
said regional airlines were harder hit than Qantas and Virgin,
which would both post big half-year losses. "The entire aviation
industry is financially haemorrhaging right now and approaching
collapse. Regional aviation is even harder hit [than large
domestic airlines] as the profit margins are slimmer," SMH quotes
Mr. Filmer as saying.
"We have already seen the collapse of two of Australia's oldest
regional carriers during this financial year, Aeropelican and
Brindabella."
SMH notes that Mr. Filmer urged federal Transport Minister Warren
Truss to make "immediate and forceful efforts" to fulfill his pre-
election commitments to regional aviation.
"The Abbott government to date has not made any significant
inroads to reversing the devastation inflicted to the economy by
the previous government," he said.
"Many regional carriers have little time left before they face the
same fate as Brindabella. For many parts of regional Australia,
this would spell the end of regular air services forever and it
would be ironic if it were the Nationals that presided over this
outcome," Mr. Filmer, as cited by SMH, said.
Rex was a vocal critic of the previous Labor government,
especially its tax on carbon emissions, the report says.
The airline is majority-owned by a group of Singaporean
businessmen, and its deputy chairman, John Sharp, is a former
Howard government transport minister, the report notes.
=========
C H I N A
=========
* CHINA: Junk Yield Premiums Soar on Looming First Default
----------------------------------------------------------
Bloomberg News reports that the extra cost to borrow for China's
riskiest companies is at the highest in 20 months as soaring
interest rates heighten concern the nation will experience its
first onshore bond default.
According to Bloomberg, Chinabond indexes showed the yield gap on
five-year AA- notes over AAA debt jumped 27 basis points last
month to 224, the most since June 2012. Ratings of AA- or below
are equivalent to non-investment grades globally, the report
relays citing Haitong Securities Co., the nation's second-biggest
brokerage. The similar spread in the U.S. is 403 basis points,
Bank of America Merrill Lynch data show, the report discloses.
Bloomberg notes that the failure of coal companies to meet payment
deadlines for trust products has increased concern over debt
defaults, with the equivalent of $53 billion of bonds sold by
renewable energy, construction materials, metals and mining
companies due in 2014. A report on Jan. 30 signaled China's
factories are contracting for the first time since August amid
signs of financial stress including mounting losses and bailouts,
says Bloomberg.
"China's bond market will definitely see its first default this
year," the report quotes Xu Hanfei, a bond analyst in Shanghai at
Guotai Junan Securities Co. as saying. "The economy is slowing
while the government seems still confident about growth, which
means the authorities probably won't announce any measures to
avert the slowdown. This is the worst scenario."
A further $21 billion of securities in those three sectors mature
in 2015, the Bloomberg data show, with companies including Baoshan
Iron & Steel Co., China Minmetals Corp. and Wuhan Iron & Steel Co.
among the most indebted. Bonds of steel and coal companies are
under added pressure considering the government's campaign to
reduce smog, and industry overcapacity, according to Moody's
Investors Service, which has a negative outlook on both.
LDK Solar Co. is looking at ways to restructure obligations on its
offshore yuan debt after missing payments on its dollar debt last
year. Zhuhai Zhongfu Enterprise Co. (000659), a manufacturer of
beverage packaging, said on Jan. 28 its 2015 debentures may be
suspended from trade after its estimated net loss was as much as
450 million yuan ($74.2 million) in 2013. The yield on the 5.28
percent notes has climbed 217.5 basis points this year to 18.76
percent, exchange data show, Bloomberg discloses.
=========
I N D I A
=========
AA FASHION: CRISIL Cuts Rating on INR65.6MM Loans to 'D'
--------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
AA Fashion Wear Pvt Ltd to 'CRISIL D/CRISIL D' from 'CRISIL
B+/Stable/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Export Packing
Credit 50 CRISIL D (Downgraded from
'CRISIL A4')
Long Term Loan 15.6 CRISIL D (Downgraded from
'CRISIL B+/Stable')
The rating downgrade reflects instances of delay by AFWPL in
servicing its debt due to weak liquidity, marked by inadequate
cash accruals to meet its term loan obligations.
AFWPL also has a below-average financial risk profile, marked by
high gearing and weak debt protection metrics. However, the
company benefits from its promoters' extensive industry
experience.
AFWPL, based in Tirupur (Tamil Nadu), manufactures ready-made
garments and is an export-oriented unit. The company's promoter-
director, Mr. K Periyaswamy, has more than 16 years of experience
in a similar line of business. AFWPL was set up as a proprietary
firm in 2004, and was reconstituted as a private limited company
in 2010.
BALAJI POLYCOT: CARE Assigns 'B+ ' Rating to INR15.64cr Loan
------------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of Balaji
Polycot Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 15.64 CARE B+ Assigned
Rating Rationale
The rating assigned to the bank facilities of Balaji Polycot
Private Limited is primarily constrained on account of its nascent
stage of operation and presence in the highly fragmented textile
industry. The rating is further constrained due to the dependence
on Mahak Synthetic Mills Private Limited for sales coupled with
limited presence in the textile value chain and commoditized
nature of its products.
The above constraints outweigh the benefits derived from the
promoters ' experience and presence in the textile cluster with
easy access to raw material and labor.
Going forward, the ability of BPPL to increase its scale of
operations by increasing its capacity utilization and increasing
the geographical presence, improving its profit margins by
managing raw material price fluctuations coupled with improvement
in the capital structure are the key sensitivities.
Ahmedabad-based (Gujarat) BPPL was incorporated in February 2012
by Mr Anuj Mittal and Mr Gaurav Mittal. BPPL is engaged in the
business of processing and weaving of denim cloth. BPPL operates
from its sole manufacturing facility located in Ahmedabad
(Gujarat) which has an installed capacity of 72 lakh Meters Per
Annum (LMPA) for the processing of denim cloth. BPPL commenced
commercial operations from April 2013. BPPL sells its entire
finished products to its associate concerns, namely, Mahak
Synthetic Mills Private Limited (MSMPL; engaged in the
manufacturing of finished fabric such as shirting, dress material
and bed sheets from grey cloth and processes denim fabric).
BANSAL BROTHERS: CRISIL Raises Rating on INR78MM Loans to 'B-'
--------------------------------------------------------------
CRISIL has upgraded its ratings on the long-term bank facilities
of Bansal Brothers Pvt Ltd to 'CRISIL B-/Stable' from 'CRISIL D'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 61.6 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Term Loan 16.4 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
The rating upgrade reflects BBPL's timely servicing of its term
debt over the three months ended October 31, 2013. Furthermore,
the company had prepaid its March 2014 term debt obligations in
October 2013.
The rating also reflects BBPL's weak financial risk profile,
marked by a small net worth and weak debt protection metrics, and
its working-capital-intensive operations. The rating also factors
in the susceptibility of the company's operating margin to changes
in government policies and to volatility in product prices. These
rating weaknesses are partially offset by the extensive experience
of BBPL's promoters in the cold storage industry.
Outlook: Stable
CRISIL believes that BBPL will continue to benefit over the medium
term from the extensive industry experience of its promoters. The
outlook may be revised to 'Positive' if the company scales up its
operations and generates higher-than-expected revenues and
profitability, resulting in an improvement in its financial risk
profile. Conversely, the outlook may be revised to 'Negative' in
case of pressure on BBPL's liquidity on account of delays in
repayment of loans by farmers, less-then-expected cash accruals,
or debt-funded capital expenditure.
Incorporated in 1989, BBPL provides cold storage facilities for
potato manufacturers. The company's facility, based in Paschim
Medinipur (West Bengal), has a capacity to store 270,000 tonnes.
The company provide financial assistance by borrowing from banks
and lending to farmers against potatoes hypothecated by them. The
company also trades in potatoes, though the proportion of revenues
from this business to total revenues is small.
BBPL reported a profit after tax (PAT) of INR1.3 million on net
sales of INR27 million for 2012-13 (refers to financial year,
April 1 to March 31), as against a PAT of INR1.75 million on net
sales of INR23 million for 2011-12.
DECCAN PLAST: CRISIL Reaffirms 'B' Rating on INR50MM Loans
----------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Deccan Plast
Industries continues to reflect its below-average financial risk
profile, marked by high gearing and small net worth, modest scale
of operations, and intense competition in the plastic furniture
business. These rating weaknesses are partially offset by its
promoters' extensive experience in the plastic industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 22 CRISIL B/Stable (Reaffirmed)
Long Term Loan 28 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that Deccan will maintain its moderate business
risk profile on the back of its management's extensive industry
experience. The outlook may be revised to 'Positive' if the
company's revenues and profitability increase substantially,
leading to sustained and significant improvement in its cash
accruals and capital structure. Conversely, the outlook may be
revised to 'Negative' if Deccan undertakes any large debt-funded
expansions, or if its revenues and profitability decline
substantially, leading to deterioration in its financial risk
profile.
Update
For 2012-13 (refers to financial year, April 1 to March 31),
Deccan's operating income was INR118 million, which represents a
growth of 48 per cent over that in the previous year, in line with
CRISIL's expectations. CRISIL believes that Deccan will report
operating income of around INR180 million for 2013-14. Deccan's
revenue growth has been driven by ramp up in its scale of
operations supported by addition of new customers. The firm's
operating margin was 12.2 per cent (marginally lower than CRISIL's
expectation), mainly because of lower price realisation for its
products; the operating margin is expected to remain at similar
levels over the medium term.
Deccan's financial risk profile is below-average, with small net
worth and high gearing of INR21 million and 2.6 times,
respectively, as on March 31, 2013. The firm does not have any
significant capital expenditure plans over the medium term.
Deccan's liquidity remains adequate for the rating category,
marked by sufficient cash accruals to meet its maturing debt
obligations. However, its liquidity is constrained by its high
bank line utilisation of 98 per cent for the 12 months ended
October 2013.
Set up in 2010, Deccan manufactures plastic furniture and crates.
The firm is promoted by Mr. B H Asgar Ali and his family members.
DEEPIKA INFRATECH: CARE Revises Rating on INR128cr Loan to 'B'
--------------------------------------------------------------
CARE revises/reaffirms the rating assigned to bank facilities of
Deepika Infratech Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 128 CARE B Revised from
CARE B-
Short-term Bank
Facilities 42.15 CARE A4 Reaffirmed
Long/Short-term
Bank Facilities 75 CARE B/CARE A4 Revised
from CARE B-/A4
Rating Rationale
The revision in the rating takes into account the positive
progress in the projects of Deepika Infratech Private Limited
resulting in an improvement in the liquidity position, completion
of two projects during 8MFY14(refers to the period April 01 to
March 31) with few other projects nearing completion.
The ratings continue to take into consideration the long track
record of the promoters in the construction industry and
improvement in the overall gearing post infusion of funds by the
promoters in FY13. However, the ratings continue to be constrained
by the extended working capital cycle, high concentration of order
book in irrigation projects in the state of Andhra Pradesh and
decline in revenue in FY13 due to slow moving order book. The
ability of the company to successfully execute projects in hand,
efficiently manage working capital requirements and improve the
overall financial risk profile are the key rating sensitivities.
Deepika Infrastructure Pvt Ltd was incorporated in March 2004,
however, it commenced its operations in March 2008 upon taking
over Deepika Constructions, which was a partnership firm engaged
in construction activities since 1984. Mr K Upender Reddy is the
current serving Chairman and promoter of the company and has
around 25 years of experience in the construction industry.
Over the last 25 years, the company (i e as a partnership firm
earlier) has evolved from a subcontractor to a qualified bidder
for infrastructure projects. DIPL's focus has been mainly on the
irrigation segment followed by railways, though it has also
diversified its presence in the roads, water supply and sewerage
segments.
In FY13, the company reported a total operating income of
INR153.20 crore (FY12: INR235.51 crore) and a net profit of
INR2.88 crore (FY12: Rs 8.15 crore). During H1FY14, the company
has registered a total income of INR110.8 crore and net profit of
INR4.90 crore.
DHARANI TEXTILES: CRISIL Ups Rating on INR755.7MM Loans to 'C'
--------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of Dharani
Textiles Pvt Ltd (DTPL; part of the Mehala group) to 'CRISIL
C/CRISIL A4' from 'CRISIL D/CRISIL D'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 17.7 CRISIL A4 (Upgraded from
'CRISIL D')
Cash Credit 214.8 CRISIL C (Upgraded from
'CRISIL D')
Funded Interest
Term Loan 106.2 CRISIL C (Upgraded from
'CRISIL D')
Letter of Credit 37 CRISIL A4 (Upgraded from
'CRISIL D')
Working Capital
Term Loan 210 CRISIL C (Upgraded from
'CRISIL D')
Term Loan 224.7 CRISIL C(Upgraded from
'CRISIL D')
The rating upgrade follows the track record of timely servicing of
debt by DTPL, aided by corporate debt restructuring by the
consortium of bankers in January 2013. The upgrade also factors in
CRISIL's belief that DTPL will continue to service its debt in a
timely manner over the medium term, marked by expected improvement
in its revenues and sustainability of its operating profitability
over the same period resulting in healthy cash accruals. Moreover,
the group's liquidity is aided by need-based financial support
from its promoter, which is expected to facilitate timely
repayment of debt over the medium term.
The ratings reflects the Mehala group's weak financial risk
profile, marked by a high gearing and weak debt protection
metrics, and the group's susceptibility to volatility in raw
material prices and to the power problem in Tamil Nadu. These
rating weaknesses are partially offset by the Mehala group's
established position in the textiles cotton yarn market, supported
by its promoter's industry experience.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of DTPL and Mehala Carona Textiles Pvt Ltd
(MCT). This is because MCT and DTPL, together referred to as the
Mehala group, are in the same line of business, have close intra-
group operational and financial linkages, including fungible cash
flows, and are under a common management.
The Mehala group manufactures cotton yarn. It consists of two
entities, namely, MCT and DTPL. The group is promoted by Mr. R
Doraisamy.
EVERWIN CLOTHINGS: CRISIL Cuts Rating on INR90.4MM Loans to 'D'
---------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Everwin Clothings Pvt Ltd (ECPL) to 'CRISIL D/CRISIL D' from
'CRISIL B/Stable/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 0.4 CRISIL D (Downgraded from
'CRISIL A4')
Cash Credit 60 CRISIL D (Downgraded from
'CRISIL B/Stable')
Rupee Term Loan 30 CRISIL D (Downgraded from
'CRISIL B/Stable')
The rating downgrade reflects instances of delay by ECPL in
servicing its debt due to weak liquidity, marked by its inadequate
cash accruals vis-a-vis debt obligations.
ECPL also has a below average financial risk profile, marked by
high gearing and weak debt protection metrics. However, the
company benefits from its promoter's extensive industry
experience.
ECPL, was incorporated in 2008. The company manufactures
unstitched knit fabric and began commercial production in January
2012. ECPL is managed by its promoter, Mr. K Periasamy.
EVERWIN TEXTILE: CRISIL Cuts Rating on INR514MM Loans to 'D'
------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Everwin Textile Mills Pvt Ltd to 'CRISIL D/CRISIL D' from 'CRISIL
B+/Stable/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 6.7 CRISIL D (Downgraded from
'CRISIL A4')
Cash Credit 350 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Long Term Loan 78.8 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Proposed Long Term
Bank Loan Facility 78.5 CRISIL D (Downgraded from
'CRISIL B+/Stable')
The rating downgrade reflects instances of delay by ETMPL in
servicing its debt due to weak liquidity, marked by its working-
capital-intensive operations.
ETMPL also has a below-average financial risk profile, marked by
its weak capital structure and weak debt protection metrics.
However, the company benefits from the extensive industry
experience of its promoter.
ETMPL was incorporated in Tirupur (Tamil Nadu). The company
manufactures grey fabric and cotton yarn. The promoter, Mr. K
Periaswamy, has more than 15 years of experience in textile
industry.
INDRAYANI SALES: CRISIL Reaffirms 'B+' Rating on INR99.9MM Loan
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Indrayani Sales Pvt Ltd
continue to reflect ISPL's below-average financial risk profile,
marked by a modest net worth, high gearing, and weak debt
protection metrics, and small scale of operations. These rating
weaknesses are partially offset by the extensive experience of
ISPL's promoters in the printer cartridge industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 87 CRISIL B+/Stable (Reaffirmed)
Term Loan 12.9 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that ISPL will continue to benefit from the price
advantage it offers vis-a-vis large established players over the
medium term. The outlook may be revised to 'Positive' in case
ISPL's capital structure improves, backed by equity infusion or
larger than expected accretion to reserves. Conversely, the
outlook may be revised to 'Negative' in case ISPL's financial risk
profile or liquidity deteriorates, owing to to any large, debt
funded capex, a decline in net cash accruals, or deterioration in
its working capital cycle.
Set up in 2005 as a private limited company by Mr. Rahul Zine
Patil, ISPL manufactures printer cartridges that are used as
substitutes for original printer cartridges, and supplies printer
spares. The company sells its products under the 'Print it' brand.
Its manufacturing facility is in Patalganga (Maharashtra). ISPL's
registered office is in Mumbai (Maharashtra).
ISPL reported a profit after tax (PAT) of INR2.4 million on net
sales of INR312.4 million for 2012-13 (refers to financial year,
April 1 to March 31), as against a PAT of INR5.5 million on net
sales of INR257.2 million for 2011-12.
MARUT NANDAN: CRISIL Reaffirms 'B' Rating on INR120MM Loans
-----------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Marut Nandan
Textiles Ltd continues to reflect MNTL's weak financial risk
profile, marked by high gearing, a small net worth, and below-
average debt protection metrics, and its weak liquidity, driven by
low net cash accruals. The rating also factors in the company's
small scale of operations, and its low profitability due to
susceptibility to fluctuation in cotton prices. These rating
weaknesses are partially offset by the extensive experience of
MNTL's promoters in the cotton ginning and oil extraction
industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 100 CRISIL B/Stable (Reaffirmed)
Term Loan 20 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that MNTL's financial risk profile will remain
weak over the medium term, driven by large working capital
requirements and low profitability. The outlook may be revised to
'Positive' if the company significantly ramps up its scale of
operations and profitability, leading to higher-than-expected cash
accruals and improvement in its liquidity. Conversely, the outlook
may be revised to 'Negative' if MNTL's financial risk profile
weakens further, most likely because of substantial working
capital borrowings, or decline in its revenues or profitability
leading to lower-than-expected net cash accruals.
Update
MNTL's scale of operations is expected to remain small over the
medium term. The company's operating income is estimated at INR450
million to INR500 million for 2013-14 (refers to financial year,
April 1 to March 31), vis-a-vis INR435.6 million reported for
2012-13. The company has reported revenues of INR423.2 million for
the nine months ended December 31, 2013; the limited sales growth
is due to increased stocking by the company for sales in
subsequent years at higher prices. This is indicated by the
increase in its operating margin to 2.8 per cent in 2012-13 as
against 1.3 per cent in 2011-12 due to sales of low-cost inventory
at higher prices. MNTL's operating margin is expected to remain
low at 2.0 to 2.5 per cent over the medium term driven by the
fragmented and low-value-added nature of the cotton ginning
industry.
MNTL's gearing was high at 2.5 times as on March 31, 2013, due to
incremental debt on account of capital expenditure for increasing
capacity, and large inventory leading to high reliance on short-
term bank borrowings. Its inventory increased to 102 days as on
March 31, 2013, from 42 days as on March 31, 2012. The company's
net worth is expected to remain at INR52 million to INR58 million
over the medium term due to low profitability. MNTL's debt
protection metrics are expected to remain weak over this period,
with an interest coverage ratio of 1.3 to 1.6 times, driven by
expected low profitability. The company's liquidity is expected to
remain stretched over the medium term on account of large working
capital requirements and low net cash accruals of INR4 million to
INR4.5 million per annum, just sufficient to meet repayment
obligations.
MNTL reported a profit after tax (PAT) of INR1.6 million on net
sales of INR431.7 million for 2012-13, as against a PAT of INR1
million on net sales of INR422.8 million for 2011-12.
About the Company
MNTL, incorporated in 1993 as a closely held public limited
company, is promoted by Mr. Ashok Kumar, his family, and
affiliates. The company is based in Hisar (Haryana) and has
ginning and oil extraction units in Khairthal (Rajasthan). MNTL is
engaged in ginning and pressing of raw cotton (kapas) to make
cotton bales. It also extracts oil and produces de-oiled cakes
from mustard and cotton seeds.
NEW HARYANA: ICRA Suspends 'B' Rating on INR9.5cr Loans
-------------------------------------------------------
ICRA has suspended the [ICRA]B rating assigned to the INR9.50
crore fund based facilities of New Haryana Overseas. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
M/s New Haryana Overseas was started as proprietorship firm in the
year 1991 by Mr. Navdeep Khosla. The processing facility of firm
is located in Ambala, Haryana. The firm is engaged in milling and
processing of paddy and rice and the firm has milling capacity of
6 metric tonnes per hour.
PARAMOUNTA LIBERTY: ICRA Reaffirms 'B+' Rating on USD24.05MM Loan
-----------------------------------------------------------------
ICRA has reaffirmed the long term rating of '[ICRA]B+' assigned to
the USD24.05 million term loan facilities of Paramounta Liberty
Shipping (HK) Ltd. Though the USD24.05 million term loan
facilities of the company are denominated in foreign currency,
ICRA's rating for the same is on national rating scale, as
distinct from an international rating scale.
Amount
Facilities (USD million) Ratings
---------- ----------- -------
Fund Based Limits- 24.05 [ICRA]B+ reaffirmed
Term Loan
The reaffirmation of rating takes into account the challenges
regarding debt servicing from operating cash flows, with the
present charter income lower than break-even levels necessary for
meeting future debt servicing obligations, which significantly
increases from FY15 onwards, and the adverse capital structure and
debt coverage indicators of the company. The rating continues to
take into account the small scale of operations, as well as
exposure to asset concentration risks, with the company owning a
single vessel, and the limited track record of the company in
running operations across business cycles. ICRA notes that the
ability to renew charter rates at a higher level, post the expiry
of the current agreement in March 2014, would be a key rating
sensitivity going forward. The rating, however, derives support
from the debt servicing comfort available to the lender in the
form of a USD0.9 million DSRA (approximately 4 months debt
repayment obligation), and the experience of the promoters in the
related businesses of iron ore export and port service operations
including stevedoring, freight forwarding and chandling, among
others.
Incorporated in July 2010, PLS, a wholly owned subsidiary of LMS,
is a Hong Kong registered company engaged in the shipping
business. The company owns a 52,191 dwt second hand Supramax
vessel named Liberty Prrundencia, which is given on time charter
hire.
Recent Results
PLS reported a net loss of USD0.27 million in FY13 on the back of
an operating income of USD4.25 million, as per provisional
results. PLS reported a net profit of USD1.27 million in FY12 on
the back of an operating income of USD5.30 million
POWERCON CEMENT: CRISIL Assigns 'B+' Rating on INR117.5MM Loans
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Powercon Cement Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 45 CRISIL B+/Stable (Assigned)
Term Loan 72.5 CRISIL B+/Stable (Assigned)
The rating reflects PCL's limited track record of operations and
weak financial risk profile, marked by high gearing. These rating
weaknesses are partially offset by the extensive experience of
PCL's promoters in the cement industry.
Outlook: Stable
CRISIL believes that PCL will continue to benefit over the medium
term from extensive industry experience of its promoters and its
relationship with Kamdhenu Cement Ltd. The outlook may be revised
to 'Positive' if the company significantly scales up its
operations while prudently managing its working capital
requirements, and also improves its financial risk profile.
Conversely, the outlook may be revised to 'Negative' if PCL's
financial risk profile, particularly its liquidity, deteriorates,
most likely because of substantial working capital requirements or
lower-than-expected cash accruals.
Incorporated in 2012, PCL manufactures cement at its facility in
Varanasi (Uttar Pradesh). The company has started its production
from January 2014. PCL is promoted and managed by Mr. Vishnu Kant
Agrawal, Mr. Vikram Chaudhary, and Mr. Subhash Chand Tulsyan.
RAJASTHAN POWERGEN: CARE Puts 'B' Rating to INR7.67cr Bank Loan
---------------------------------------------------------------
CARE assigns 'CARE B' and 'CARE A4' ratings to the bank facilities
of Rajasthan Powergen Trasformers Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 7.67 CARE B Assigned
Short-term Bank
Facilities 4.00 CARE A4 Assigned
Rating Rationale
The ratings are primarily constrained on account of the nascent
stage of operations of Rajasthan Powrgen Transformers Private
Limited coupled with reschedulement of its term loan in
October 2012. The ratings are further constrained on account of
the susceptibility of its margins to volatile raw material prices
and the fragmented nature of industry leading to stiff competition
from the organized and unorganized players.
The ratings, however, derive strength from the experienced
management of the company.
Stabilization of newly setup capacities with achievement of
envisaged levels of income and profitability are the key rating
sensitivities.
RPTL was incorporated in 2010 with an objective to set up a green-
field plant for the manufacturing of transformers for power
transmission and distribution ranging from 10 Kilovolt Ampere
(KVA) to 1,000 KVA and cross arm angles. RPTL has completed its
project and started commercial operation from January 2013. The
plant was set up at a total cost of INR5.87 crore which was funded
through debt-equity ratio of 2.14:1 times. The manufacturing plant
of the company is located at Sanchore (district Jalore, Rajasthan)
with the total installed capacity of 18,000 pieces per annum for
transformers and 120,000 sets per annum for cross arm angles as on
March 31, 2013. RPTL participates in tenders for supply and repair
of transformers invited by State Power Utilities (SPUs) in
Rajasthan and Gujarat.
In FY13 (refers to the period April 1 to March 31), from three
months of operation, the company has registered a Total Operating
Income (TOI) of INR1.52 crore.
RI COTTON: CARE Revises Rating on INR14.53cr Loans to 'B+'
----------------------------------------------------------
CARE revises/reaffirms the ratings assigned to the bank facilities
of RI Cotton Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 14.53 CARE B+ Revised from
Facilities CARE B
Short-term Bank 1.00 CARE A4 Reaffirmed
Facilities
Rating Rationale
The revision in the ratings assigned to the bank facilities of RI
Cotton Private Limited takes into account the improvement in its
scale of operations and infusion of long-term funds by the
promoters during 9MFY14 (FY refers to the period April 1 to
December 31). The ratings, however, continue to remain
constrained on account of its presence in a highly competitive and
fragmented cotton ginning business which entails low value
addition. The ratings are further constrained on account of its
thin profitability which is further susceptible to volatile
cotton prices and foreign exchange rate fluctuation, its weak debt
coverage indicators and impact of regulatory changes in the
government policy for cotton.
The ratings, however, continue to favorably take into account the
experience of the promoters in the cotton ginning industry,
proximity to cotton-producing region of Gujarat and favorable
demand outlook for cotton in the medium term.
RICPL's ability to increase its scale of operations along with
improvement in its profitability and capital structure while
efficiently managing its working capital requirements remain the
key rating sensitivities.
Incorporated in June 2010, RICPL is a closely-held private limited
company promoted by the Patel family based out of Kadi (Gujarat).
Mr Niranjan R Patel, key promoter and director, is closely
involved in managing the daily operations of the business. RICPL
is engaged in cotton ginning and pressing and has an installed
capacity of 22,500 Metric Tonnes Per Annum (MTPA) for ginned
cotton as on March 31, 2013 at its sole processing facility
located at Kadi (Gujarat).
During FY13, RICPL reported Profit After Tax (PAT) of INR0.07
crore (FY12: INR0.06 crore) on a total operating income of
INR118.31 crore (FY12: INR87.66 crore).
SARDAR JEWELLERS: CRISIL Downgrades Rating on INR90MM Loan to C
---------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Sardar Jewellers to 'CRISIL C' from 'CRISIL B-/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 90 CRISIL C (Downgraded from
'CRISIL B-/Stable')
The rating downgrade reflects SAJ's deteriorating financial risk
profile, driven by substantial debt contracted to fund its large
working capital requirements, and capital withdrawal by the firm's
partners, over 2011-12 (refers to financial year, April 1 to March
31) and 2012-13. This resulted in a gearing of over 20 times as on
March 31, 2013. The downgrade also factors in the stretch in the
firm's liquidity, reflected in low cash accruals vis-a -vis fixed
repayment obligations.
The rating also reflects SAJ's weak financial risk profile, marked
by high gearing and a small net worth, and geographical
concentration in its revenues. These rating weaknesses are
partially offset by the extensive experience of SAJ's promoters in
the jewellery industry.
SAJ was set up in 2010-11 as a partnership firm by Mr. Surinder
Singh and his family members. The firm sells gold and diamond-
studded jewellery through its showroom in Ludhiana (Punjab).
SHRINIWAS GINNING: CRISIL Upgrades Rating on INR100MM Loan to B+
----------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Shriniwas Ginning Industries to 'CRISIL B+/Stable' from 'CRISIL
B/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 40 CRISIL B+/Stable (Upgraded from
'CRISIL B/Stable')
Proposed Long Term
Bank Loan Facility 50 CRISIL B+/Stable (Upgraded from
'CRISIL B/Stable')
Term Loan 10 CRISIL B+/Stable (Upgraded from
'CRISIL B/Stable')
The rating upgrade reflects the improvement in SGI's liquidity,
driven mainly by a better operating performance. The firm's
operating revenues grew by 19.4 per cent to INR693 million in
2012-13 (refers to financial year, April 1 to March 31) from
INR580 million in 2011-12. Higher operating revenues, coupled with
a stable operating margin of around 2.8 per cent, have led to
sufficient cash accruals of INR8.16 million in 2012-13, against
which the firm had term debt repayment obligations of INR1.5
million. Furthermore, SGI has moderate working capital
requirements as reflected in its gross current assets of 116 days
as on March 31, 2013, leading to an average bank limit utilisation
of 65 per cent during the eight months through November 2013.
The rating also factors in the modest scale of operations of SGI
in a highly fragmented cotton ginning industry, the firm's below-
average financial risk profile, marked by a modest net worth and
high gearing, and the susceptibility of its operating performance
to volatility in cotton prices. These rating weaknesses are
partially offset by the extensive industry experience of SGI's
promoters and its established relationships with suppliers and
customers.
For arriving at the ratings, CRISIL has treated Unsecured Loans
(USL) of Rs 25.5 million as on March 31, 2013 extended to SGI by
its partners, as Neither Debt Nor Equity, as these loans will be
retained in the business over the medium term and the interest
rate on the USL is lower than the interest on the bank facilities
Outlook: Stable
CRISIL believes that SGI will continue to benefit over the medium
term from the extensive industry experience of its promoters and
its established relationships with suppliers and customers. The
outlook may be revised to 'Positive' if there is a significant
increase in SGI's scale of operations, while it improves its
profitability and capital structure. Conversely, the outlook may
be revised to 'Negative' if the firm reports lower-than-expected
revenues or profitability, or if its working capital cycle is
stretched or if the firm undertakes higher than expected debt-
funded capital expenditure, thereby impacting its financial risk
profile, particularly its liquidity.
SGI was established in 2006 as a proprietorship concern by Mr.
Gopaldas Rathi. The firm is engaged in cotton ginning and
pressing. It processes raw cotton (kapas) into cotton bales and
cotton seeds and caters to markets in Maharashtra. It is also
engaged in crushing activities to manufacture cotton seed cake and
cotton seed oil. SGI has its ginning and pressing unit in
Hinganghat (Maharashtra).
SGI reported a profit after tax (PAT) of INR4.2 million on net
sales of INR692.7 million for 2012-13 (refers to financial year,
April 1 to March 31), as against a PAT of INR 2.6 million on net
sales of INR580 million for 2011-12.
SHUKAN HEIGHTS: CRISIL Lowers Rating on INR120MM Term Loan to 'D'
-----------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Shukan Heights Corporation to 'CRISIL D' from 'CRISIL
B+/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 120 CRISIL D (Downgraded from
'CRISIL B+/Stable')
The rating downgrade reflects instances of delay by the SHC in
servicing its debt due to weak liquidity. The company had an
immediate funding requirement for its service tax obligation,
resulting in delays in repayment of debt obligations.
Additionally, the slowdown in the real estate sector restricted
the company's liquidity. Consequently, its cash flows have been
inadequate vis-a-vis its maturing debt obligations. Though the
promoters have infused funds to support the company's debt
obligations, the mismatch in cash flows led to delays in servicing
debt.
The Shukan group is also susceptible to implementation- and
saleability-related risks associated with its ongoing project and
susceptibility to inherent risks and cyclicality in the real
estate sector in India. However, the company benefits from the
promoters' extensive experience in the real estate segment in
Ahmedabad (Gujarat).
SHC is a partnership firm of Ms. Bhanuben R Patel, Mr. Vijay R
Patel, Mr. Mahesh R Patel, and Mr. Romil R Patel, formed in
January 2011.
SHC reported a profit after tax (PAT) of INR2.3 million on net
sales of INR19.2 million for 2011-12, against a PAT of INR0.1
million on net sales of INR0 million for 2010-11.
SRI LAKSHMI: CRISIL Reaffirms 'B+' Rating on INR100MM Loans
-----------------------------------------------------------
CRISIL's rating on the bank facilities of Sri Lakshmi Kalavathi
Cotton Traders; part of the BRK group) continues to reflect the
BRK group's below-average financial risk profile, marked by a high
gearing, and its working-capital-intensive operations. The rating
also factors in the susceptibility of the group's operating margin
to volatility in input prices. These rating weaknesses are
partially offset by its established position in the cotton
industry, and the promoters' extensive industry experience.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 30 CRISIL B+/Stable (Reaffirmed)
Key Loan 70 CRISIL B+/Stable (Reaffirmed)
For arriving at the rating, CRISIL has combined the business and
financial risk profiles of SLK and Balarama Krishna Spinning Mills
Private Limited. This is because both these companies are managed
by the same promoters, operate in the same line of business, and
have significant operational and financial linkages. The entities
are together referred to as the BRK group.
Outlook: Stable
CRISIL believes that the BRK group will continue to benefit over
the medium term from the promoters' extensive experience and
established position in the cotton industry. The outlook may be
revised to 'Positive' if the group records a significant increase
in its revenues and profitability, leading to a sustained and
significant improvement in its cash accruals and capital
structure. Conversely, the outlook may be revised to 'Negative' if
the group's operating margin declines significantly or its working
capital cycle increases; or if the group undertakes a large, debt-
funded capital expenditure (capex) programme, thereby weakening
its financial risk profile.
Update
The BRK group's revenue grew by 11.7 per cent in 2012-13 (refers
to financial year, April 1 to March 31), driven by an improvement
in demand from its key customers. Furthermore, the group's
profitability improved to 13.8 per cent in 2012-13 vis-a-vis 4.5
per cent in 2011-12, due to inventory losses incurred during 2011-
12. The group is likely to report moderate growth in 2013-14 and
its operating profitability is expected to be around 12 per cent
over the medium term. The BRK group reported revenues of INR730
million from April to December 2013.
The BRK group's financial risk profile continues to remain below-
average, marked by high gearing and average debt protection
metrics. The group's net worth and gearing was INR220 million and
2.14 times, respectively, as on March 31, 2013. Though the BRK
group's gearing is expected to improve, the same is expected to
remain high due to the group's working-capital-intensive
operations. CRISIL believes that the BRK group's financial risk
profile will remain below-average over the medium term, supported
by moderate accretion to reserves and the absence of a debt-funded
capital expenditure (capex) programme.
The BRK group has weak liquidity, marked by closely matched cash
accruals vis-a-vis debt obligations though supported by moderate
bank limit utilisation. The group could earn cash accruals of
INR49.1 million, and has debt obligations of over INR45.8 million
in 2013-14. However, the group's liquidity is supported by
moderate utilisation of bank lines at 69.2 per cent for 12 months
ended December 31, 2013.
The BRK group reported a loss of INR28.0 million on net sales of
INR648 million for 2011-12, vis-a-vis a profit after tax (PAT) of
INR68 million on net sales of INR667 million for 2010-11.
About the Group
BRK was incorporated in 2005. The company manufactures cotton
yarn. SLK was set up as a partnership firm in 1991, and was
subsequently reconstituted as a company. SLK undertakes ginning
and pressing of raw cotton, and sells cotton lint and cotton
seeds. The group is promoted by Mr. V Balarama Krishnaiah and his
family members.
STATUS CLOTHING: ICRA Reaffirms 'B+' Rating on INR14.50cr Loans
---------------------------------------------------------------
ICRA has reaffirmed the long term rating of '[ICRA]B+' to the
INR14.50 crore long-term fund based facilities of Status Clothing
Company Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term, fund- 5.50 [ICRA]B+ reaffirmed
based facilities-
Term Loan
Long-term, fund- 9.00 [ICRA]B+ reaffirmed
based facilities-
Cash Credit
The reaffirmed rating favourably factors in the long standing
experience of promoters in the textile industry, its diversified
customer profile and strong revenue growth during FY 2013 aided by
higher demand across its customer base.
The rating is however constrained by the small scale of weaving
operations in a highly fragmented and cost competitive industry
which restricts pricing power. The rating is further constrained
by the weak financial profile with low net margins, leveraged
capital structure and weak debt protection metrics. Any debt
funded capital expenditure in future is likely to put further
strain on the company's capital structure and profitability in the
near term.
Status Clothing Company Limited, set up in 1996 as a partnership
firm, is engaged in manufacture and trading of gray fabric i.e.
fabric for shirting and suiting. In July, 2011, the firm was
converted into a private limited company and the name was changed
to its current name.
The company sells gray fabric mainly to exporters / local traders
and is also an outsourcing house for other branded finished fabric
players. The company has an in-house design team and also
manufactures as per customer's design specifications. The company
sells its fabrics in local market, mainly in and around Mumbai.
SCCL has a manufacturing unit in Tarapur, Maharashtra consisting
of 55 Sulzer looms and 13 Dornier Rapier looms.
Recent results:
As per its audited results, SCCL reported net loss of INR0.20
crore on operating income of INR32.15 crore for FY 2012-13.
As per its provisional H1FY2014 results, SCCL reported profit
after tax (PAT) of INR0.19 crore on operating income of INR18.02
crore.
TRK TEXTILE: CRISIL Cuts Rating on INR520.5MM Loans to 'D'
----------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of TRK Textile India Pvt Ltd to 'CRISIL D' from 'CRISIL B/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 100 CRISIL D (Downgraded from
'CRISIL B/Stable')
Pledge Loan 150 CRISIL D (Downgraded from
'CRISIL B/Stable')
Proposed Term Loan 45 CRISIL D (Downgraded from
'CRISIL B/Stable')
Term Loan 225.5 CRISIL D (Downgraded from
'CRISIL B/Stable')
The rating downgrade reflects instances of delay by TRK in
servicing its debt; the delays have been caused by the company's
weak liquidity. TRK has weak liquidity marked by its inadequate
cash accruals vis-a-vis its debt obligations.
TRK also has a below-average financial risk profile, marked by a
high gearing and weak debt protection metrics. However, the
company benefits from its promoter's extensive industry
experience.
TRK, set up in 2006, manufactures cotton yarn at its unit in
Tirupur (Tamil Nadu). The company sells through agents in Tirupur.
It is promoted by Mr. M Rangaswamy, Mr. A K Jeyaprakash, and Mr. S
Saravanan.
VAH MAGNA: ICRA Withdraws 'D' Rating on INR76.91cr Loans
--------------------------------------------------------
ICRA has withdrawn the '[ICRA]D' rating assigned to the INR37.95
crore, long-term loans and the INR38.96 crore, long-term, fund-
based bank facilities of Vah Magna Retail Private Limited, as the
notice period of three years since suspension of rating has
expired.
VAMSI LABS: ICRA Upgrades Rating on INR11.1cr Loans to 'B+'
-----------------------------------------------------------
ICRA has upgraded the long term rating of INR7.10 crore term loan
and INR4.00 crore cash credit facilities of Vamsi Labs Limited
from '[ICRA]B-' to '[ICRA]B+'. ICRA has also reaffirmed an
'[ICRA]A4' rating to the INR0.10 crore non fund based facilities
of VLL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 7.10 Upgraded to [ICRA]B+
from [ICRA]B-
Cash Credit 4.00 Upgraded to [ICRA]B+
from [ICRA]B-
Non Fund Based 0.10 [ICRA]A4 reaffirmed
The rating revision favorably factors in improved operating
margins of the company on account of its focus on high margin
products along with healthy product pipeline targeted mainly
towards exports market providing favorable growth prospects and
settlement of the insurance claim for fire accident with recovery
at around INR2.6 crore. Though the recovery was less than the
actual claim, it will provide some support to liquidity profile of
the company and help to repay its long term liabilities. ICRA
continue to take comfort from the long standing experience of the
promoters in the pharmaceutical industry, established relations
with key domestic pharmaceutical players and company being the key
supplier for some of the anti asthma intermediates catering to
both domestic as well as exports market.
The ratings, however, remain constrained by stretched liquidity
position of the company characterized by high gearing, extended
credit cycle and stretched interest coverage and debt protection
metrics, though the same have shown improvement over the years.
The company has small scale of operations concentrated towards
anti asthma therapy while its growth prospects are constrained by
limited balance sheet size of the company in capex driven
pharmaceutical API industry. ICRA also factors in company's
exposure to foreign currency fluctuations owing to significant
share of export revenues and stringent regulatory norms prevailing
in the pharmaceutical industry. Going forward, the company's
profitability and capital structure is expected to improve on
account of its focus on high margin products as part of export
oriented strategy and prepayment of term loans respectively.
Scaling up operations while maintaining operating margins remain
key sensitivity factors.
VLL, based out of Solapur Maharashtra, is engaged in manufacturing
APIs and intermediates for therapeutic segments like Anti-
asthmatic, Antiemtic, Antidiarhoeal, Antipsychotic and Piperidine/
Piperidone derivatives. It was promoted by Mr. M Kesava Reddy and
his co-brother Mr. G Pratap Reddy in 1991.
Recent Results
VLL has reported OPBDIT of INR5.02 crore in FY13 on an operating
income of INR28.34 crore. The company has reported PAT of INR0.39
crore during the same period.
WARM GEARS: ICRA Assigns 'B-' Ratings to INR29.48cr Loans
---------------------------------------------------------
ICRA has assigned the long-term rating of '[ICRA]B-' to the
enhanced bank facilities of Warm Gears private Limited. The rated
amount is enhanced from INR18.10 Crore to INR29.48 Crore.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 20.48 [ICRA]B- Assigned/Outstanding
Cash Credit
Facility 8.00 [ICRA]B- Outstanding
Standby Line of
Credit 1.00 [ICRA]B- assigned
The rating reaffirmation factors in the long standing experience
of WGPL's promoters in the forgings business, locational advantage
placing WGPL in close proximity to its customers and steady growth
in revenues over the past two years. The ratings are, however,
constrained by WGPL's exposure to price risk in view of limited
ability to pass on increase in raw material costs to customers
given its presence at tier-2 level in the value chain and high
dependence on Warm Forging Private Limited for sale of its
products. WGPL's financial risk profile is characterized by high
gearing (2.0x as on March 31, 2013), weak debt coverage indicators
(Total Debt/ OPBITDA of 5.2x in 2012-13) and stretched liquidity
position on account of long working capital cycle. Going forward,
WGPL's ability to maintain its operating profitability, improve
its liquidity position as well as financial profile would be the
key rating sensitivities.
Warm Gears Private Limited was incorporated in July 2008, and
promoted by Mr. Amit Rajput and Smt. Anupam Chauhan. The company
manufactures products related to gears for two wheelers such as
hubs, gear blanks (forged and turned), sliding clutches, rotors
and pulleys. WGPL is also manufacturing bevel gears and other gear
products for four -- wheeler market at its manufacturing
facilities located in Bhiwadi (Rajasthan). The company is also
engaged in forging and machining for transmission, engine and
suspension applications. The products manufactured are of various
sizes and shapes as per the requirement of customers. The company
is supplying its products to various customers like Mitsuba, Hero
Motors, Mushahsi and Denso etc among the tier one customers.
=========
J A P A N
=========
SONY CORP: Forecast Revision Spurs Credibility Crisis For Chief
---------------------------------------------------------------
Mariko Yasu and Grace Huang at Bloomberg News report that Kazuo
Hirai, who took the helm at Sony Corp. two years ago to revive the
Japanese icon, is losing credibility with investors who think he's
not up to the job.
Bloomberg says the chief executive officer pledged when he came in
to turn around Sony's ailing consumer electronics business and
generate a profit at the television unit after $7 billion in
losses. Instead, the TV business will lose money for a 10th
straight year and he's forecasting a $1.1 billion annual loss.
According to Bloomberg, Mr. Hirai has now revised Sony's profit
forecast down twice in four months and is showing few signs of
developing hits to compete with Apple Inc. and Samsung Electronics
Co. The steps announced Feb. 6 -- selling the personal computer
unit, cutting 5,000 more jobs and splitting the TV business into a
separate subsidiary -- did little to reassure shareholders Sony is
making progress, Bloomberg says.
"Hirai has tried many things, and if those plans don't work by
next year, I'll have to question his management," said Naoki
Fujiwara, a Tokyo-based chief fund manager at Shinkin Asset
Management Co., which owns Sony shares, according to data compiled
by Bloomberg. "It will be challenging for Hirai to take the
company in the direction he wants to."
Bloomberg relates that the net loss will total JPY110 billion in
the year ending March 31, the Tokyo-based company said in a
statement, scrapping its revised October forecast for a JPY30
billion profit. Full-year operating income will be JPY80 billion,
less than half its October forecast of JPY170 billion, Sony said.
The sales projection remained at JPY7.7 trillion, the report
discloses.
"My responsibility is to turn around the electronics operation,"
Bloomberg quotes Mr. Hirai as saying. "I'd like to say this time's
reform is final but amid intensifying competition, reform may be
needed going forward."
Sony cited the costs of restructuring its TV and PC units for the
revisions. The company is taking charges of JPY70 billion this
year and the same amount next year, Bloomberg relays.
According to Bloomberg, Sony said the TV unit will lose JPY25
billion this year -- its 10th straight loss -- and Sony plans to
split the unit into a wholly owned subsidiary. The world's No. 3
TV maker kept its October forecast for sales of 14 million liquid-
crystal-display sets after cutting it from 15 million last year.
To Shut E-Book Store
Meanwhile, Bloomberg News reports that Sony said it will close its
e-book store for North America and give its customer list to rival
Kobo.
Bloomberg relates that Sony, which earlier unveiled a major
reorganization, said it will close its Reader Store in the U.S.
and Canada on March 20.
"Although we're sorry to say goodbye to the Reader Store, we're
also glad to share the new and exciting future for our readers:
Reader Store will transfer customers to Toronto-based e-reading
company Kobo -- an admired e-book seller with a passionate reading
community," a blog post at the Sony Reader website said, Bloomberg
relays.
Sony said customers and their current e-book libraries "will be
transferred to the Kobo ecosystem" under the change, the report
adds.
About Sony Corp.
Based in Japan, Sony Corporation engages in the operation of
imaging products and solution (IP&S), game, mobile products and
communication (MP&C), home entertainment and sound (HE&S), device,
movie, music, financial and other business. The IP&S segment
provides digital imaging products and professional solutions.
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 29, 2014, Moody's Japan K.K. has downgraded the Issuer Rating
and the long-term senior unsecured bond rating of Sony Corporation
to Ba1 from Baa3. The ratings outlook is stable.
At the same time, Moody's has downgraded the short-term rating of
its supported subsidiary, Sony Global Treasury Services Plc, to
Not Prime from Prime-3.
====================
N E W Z E A L A N D
====================
HANOVER FINANCE: Apex Case Parked to Give Way to FMA Settlement
---------------------------------------------------------------
Hamish Fletcher at The New Zealand Herald reports that a stoush
between Hanover and its insurance broker has been parked to enable
the failed finance company's directors and promoters to enter into
settlement talks with the Financial Markets Authority, a lawyer in
the case said.
The Herald notes that the FMA is taking civil action against
Hanover's Mark Hotchin, Eric Watson, Greg Muir, Bruce Gordon, Sir
Tipene O'Regan and Dennis Broit over allegedly misleading or
untrue statements made in offer documents.
A fight involving the defendants in the FMA case and a group of
Hanover companies against their insurance broker -- Apex General -
- was due to begin in the High Court at Auckland on Feb. 10 but
was adjourned.
The Herald relates that appearing briefly before Justice John
Fogarty, Apex Queen's Counsel Les Taylor said the parties had
reached an "interim settlement".
"The parties have reached what I refer to in my email as an
interim settlement . . . which will hopefully enable the parties
to this proceeding and also the parties to the related FMA
proceeding to reach a settlement, which is in the interest of all
parties, including of course the investors in Hanover," the report
quotes Mr. Taylor as saying.
"So that's the purpose of the adjournment. It's not certain that
that settlement will be reached but every endeavour will be made
to achieve it if possible," he told the judge, who adjourned the
case and gave the parties leave to come back to the court if
necessary."
Outside court Mr. Taylor said all he could reveal was that the
case was adjourned to enable settlement discussions to take place
between the FMA and the defendants in that case and Apex and
Hanover, the report adds.
About Hanover Finance
Hanover Finance Limited -- http://www.hanover.co.nz/-- was
New Zealand's third-largest privately-owned finance company with
total assets of NZ$796 million at December 31, 2007. The company
was established in 1984 to provide finance to the rural sector
and began lending to property developers and investors in 1995.
The loan portfolio has been gradually downsized since 2006 as a
result of a more cautious approach to lending in the face of
retail funding constraints.
Hanover Finance's investors in December 2008 voted in favor of
the company's Debt Restructure Proposals, including a plan to
fully repay NZ$552.6 million principal it owes over five years.
However, Hanover Finance said in November 2009 it is no longer
likely to fully repay investors under a debt restructuring plan
due to a deterioration in the commercial property development
market, a TCR-AP report on Nov. 12, 2009, said.
In December 2009, investors agreed to swap their Hanover
interests for shares in Allied Farmers Ltd.
The Serious Fraud Office commenced an investigation into the
affairs of Hanover Finance Ltd in September 2010 after
considering complaints received from the Securities Commission,
Allied Farmers and others.
The Financial Markets Authority, on March 30, 2012, filed civil
proceedings against directors and promoters of Hanover Finance
Ltd, Hanover Capital Ltd, and United Finance Ltd. Proceedings
under the Securities Act have been filed against Mark Hotchin,
Eric Watson, Greg Muir, Sir Tipene O'Regan, Bruce Gordon and
Dennis Broit. They relate to statements made in the
December 2007 prospectuses, subsequent advertising, and the
March 2008 prospectus extension certificate.
SFO on April 30, 2013, said it has completed its investigation
of Hanover Finance, bringing to an end its investigations into the
2007/08 finance company collapses. That process, which saw SFO
investigate 15 separate companies, resulted in criminal
prosecutions in relation to nine companies. Overall, 23
individuals have faced charges laid by SFO.
ROSS ASSET: FMA Withdraws Disciplinary Complaint vs. David Ross
---------------------------------------------------------------
The Financial Markets Disciplinary Committee on Feb. 10, 2014,
dismissed FMA's complaint against David Ross after FMA informed
the Committee that it did not consider that it was in the public
interest for the complaint to proceed. The complaint (for breaches
of the Code of Professional Conduct for AFAs) was adjourned in
August last year pending the completion of the criminal
proceedings against Mr. Ross, after criminal charges were laid by
FMA and the Serious Fraud Office. Mr Ross pleaded guilty to the
charges and in November 2013 he was sentenced to 10 years and 10
months imprisonment.
FMA's decision not to proceed with its complaint was made on the
basis that Mr. Ross' conduct had been firmly censured through the
judgment of the District Court which recorded the dishonesty and
breach of trust by Mr. Ross and the harm and suffering which his
conduct had caused and because Mr. Ross' AFA status has also been
terminated. FMA advised the FADC that a determination by the
Committee would not provide any further protection, deterrence or
punishment beyond what has been delivered through the criminal
justice process. Consistent with its position in the criminal
proceeding, FMA did not seek a fine as it considers any funds that
may be available should be paid to investors through the
receivership. While FMA was of the view that there has been a
clear breach of the Code, it did not consider it was in the public
interest to continue with this case for these reasons. FMA will
continue to support investors' interests by working with the
receivers and liquidators to achieve recoveries for investors
where possible.
As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 8, 2012, that the High Court appointed PricewaterhouseCoopers
partners John Fisk and David Bridgman as Receivers and Managers to
Ross Asset Management Limited and nine other associated entities
following application by the Financial Markets Authority. The
associated entities are:
* Bevis Marks Corporation Limited;
* Dagger Nominees Limited;
* McIntosh Asset Management Limited;
* Mercury Asset Management Limited;
* Ross Investment Management Limited;
* Ross Unit Trusts Management Limited;
* United Asset Management Limited;
* Chapman Ross Trust;
* Woburn Ross Trust;
* Ace Investments Limited or Ace Investment Trust Limited or
Ace Investment Trust;
* Vivian Investments Limited; and
* Ross Units Trusts Limited.
The Receivers and Managers have also been appointed to Wellington
investment adviser David Robert Gilmore Ross personally.
Mr. Fisk said they have identified investments of nearly
NZ$450 million held on behalf of more than 900 investors across
1,720 individual accounts.
The High Court in mid-December ordered John Fisk and David
Bridgman be appointed liquidators of these companies:
-- Ross Asset Management Limited (In Receivership);
-- Bevis Marks Corporation Limited (In Receivership);
-- McIntosh Asset Management Limited (In Receivership); and
-- Mercury Asset Management Limited (In Receivership).
===============
X X X X X X X X
===============
* BOND PRICING: For the Week Feb. 3 to Feb. 7, 2014
---------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA
---------
BOART LONGYEAR MAN 7.00 04/01/21 USD 74.50
COMMONWEALTH BANK 1.50 04/19/22 AUD 73.78
EXPORT FINANCE & I 0.50 06/15/20 NZD 74.63
GRIFFIN COAL MININ 9.50 12/01/16 USD 72.75
GRIFFIN COAL MININ 9.50 12/01/16 USD 72.75
MIRABELA NICKEL LT 8.75 04/15/18 USD 21.38
MIRABELA NICKEL LT 8.75 04/15/18 USD 35.00
NEW SOUTH WALES TR 0.50 09/14/22 AUD 70.07
NEW SOUTH WALES TR 0.50 10/07/22 AUD 69.84
NEW SOUTH WALES TR 0.50 10/28/22 AUD 69.63
NEW SOUTH WALES TR 0.50 11/18/22 AUD 69.41
NEW SOUTH WALES TR 0.50 12/16/22 AUD 70.49
NEW SOUTH WALES TR 0.50 03/30/23 AUD 69.51
NEW SOUTH WALES TR 0.50 02/02/23 AUD 70.02
TREASURY CORP OF V 0.50 11/12/30 AUD 47.24
TREASURY CORP OF V 0.50 03/03/23 AUD 70.67
TREASURY CORP OF V 0.50 08/25/22 AUD 72.21
CHINA
-----
CENTRAL HUIJIN INV 4.20 09/20/40 CNY 73.91
CHINA DEVELOPMENT 3.80 10/30/36 CNY 70.91
CHINA DEVELOPMENT 4.01 10/11/35 CNY 74.13
CHINA GOVERNMENT B 1.64 12/15/33 CNY 59.34
CHINA RAILWAY CORP 4.10 11/15/36 CNY 74.67
INDONESIA
---------
DAVOMAS INTERNATIO 11.00 12/08/14 USD 23.63
DAVOMAS INTERNATIO 11.00 12/08/14 USD 23.63
INDONESIA TREASURY 6.63 05/15/33 IDR 74.06
INDONESIA TREASURY 6.13 05/15/28 IDR 73.81
INDONESIA TREASURY 6.38 04/15/42 IDR 68.47
PERUSAHAAN LISTRIK 5.25 10/24/42 USD 73.76
PERUSAHAAN LISTRIK 5.25 10/24/42 USD 72.83
PERUSAHAAN PENERBI 6.10 02/15/37 IDR 69.95
PERUSAHAAN PENERBI 6.75 04/15/43 IDR 73.83
PERUSAHAAN PENERBI 6.00 01/15/27 IDR 74.59
INDIA
-----
3I INFOTECH LTD 5.00 04/26/17 USD 36.25
CORE EDUCATION & T 7.00 05/07/15 USD 31.00
COROMANDEL INTERNA 9.00 07/23/16 INR 15.38
DEWAN HOUSING FINA 5.50 09/24/23 INR 72.76
DR REDDY'S LABORAT 9.25 03/24/14 INR 4.99
GTL INFRASTRUCTURE 2.53 11/09/17 USD 30.62
INDIA GOVERNMENT B 0.24 01/25/35 INR 17.27
JCT LTD 2.50 04/08/11 USD 20.00
MASCON GLOBAL LTD 2.00 12/28/12 USD 10.00
PRAKASH INDUSTRIES 5.25 04/30/15 USD 50.63
PRAKASH INDUSTRIES 5.63 10/17/14 USD 56.25
PYRAMID SAIMIRA TH 1.75 07/04/12 USD 1.00
REI AGRO LTD 5.50 11/13/14 USD 56.25
REI AGRO LTD 5.50 11/13/14 USD 56.25
SHIV-VANI OIL & GA 5.00 08/17/15 USD 21.38
SUZLON ENERGY LTD 5.00 04/13/16 USD 48.21
SUZLON ENERGY LTD 7.50 10/11/12 USD 60.13
JAPAN
-----
ELPIDA MEMORY INC 0.50 10/26/15 JPY 14.13
ELPIDA MEMORY INC 0.70 08/01/16 JPY 11.25
ELPIDA MEMORY INC 2.10 11/29/12 JPY 16.00
ELPIDA MEMORY INC 2.03 03/22/12 JPY 16.00
ELPIDA MEMORY INC 2.29 12/07/12 JPY 16.00
JAPAN ATOMIC POWER 1.42 12/25/19 JPY 74.13
JAPAN ATOMIC POWER 1.28 09/25/20 JPY 73.13
JAPAN ATOMIC POWER 1.48 02/25/21 JPY 72.25
JAPAN EXPRESSWAY H 0.50 03/18/39 JPY 71.59
JAPAN EXPRESSWAY H 0.50 09/17/38 JPY 72.11
TOKYO ELECTRIC POW 2.37 05/28/40 JPY 69.88
TOKYO ELECTRIC POW 1.96 07/29/30 JPY 74.38
KOREA
-----
EXPORT-IMPORT BANK 0.50 10/23/17 TRY 66.02
EXPORT-IMPORT BANK 0.50 01/25/17 TRY 70.30
EXPORT-IMPORT BANK 0.50 12/22/17 TRY 64.46
EXPORT-IMPORT BANK 0.50 11/28/16 BRL 70.97
EXPORT-IMPORT BANK 0.50 10/27/16 BRL 71.87
EXPORT-IMPORT BANK 0.50 12/22/17 BRL 62.27
EXPORT-IMPORT BANK 0.50 12/22/16 BRL 70.46
EXPORT-IMPORT BANK 0.50 11/21/17 BRL 63.33
EXPORT-IMPORT BANK 0.50 09/28/16 BRL 72.60
EXPORT-IMPORT BANK 0.50 08/10/16 BRL 74.47
TONGYANG CEMENT & 7.30 06/26/15 KRW 70.00
TONGYANG CEMENT & 7.50 04/20/14 KRW 70.00
TONGYANG CEMENT & 7.50 09/10/14 KRW 70.00
TONGYANG CEMENT & 7.50 07/20/14 KRW 70.00
TONGYANG CEMENT & 7.30 04/12/15 KRW 70.00
SRI LANKA
---------
SRI LANKA GOVERNME 5.35 03/01/26 LKR 64.78
PHILIPPINES
-----------
BAYAN TELECOMMUNIC 13.50 07/15/06 USD 22.75
BAYAN TELECOMMUNIC 13.50 07/15/06 USD 22.75
SINGAPORE
---------
BAKRIE TELECOM PTE 11.50 05/07/15 USD 14.38
BAKRIE TELECOM PTE 11.50 05/07/15 USD 14.63
BLD INVESTMENTS PT 8.63 03/23/15 USD 30.50
BUMI CAPITAL PTE L 12.00 11/10/16 USD 69.35
BUMI CAPITAL PTE L 12.00 11/10/16 USD 66.53
BUMI INVESTMENT PT 10.75 10/06/17 USD 66.25
BUMI INVESTMENT PT 10.75 10/06/17 USD 65.56
ENERCOAL RESOURCES 9.25 08/05/14 USD 59.60
GENCO SHIPPING & T 5.00 08/15/15 USD 57.13
INDO INFRASTRUCTUR 2.00 07/30/10 USD 1.88
OTTAWA HOLDINGS PT 5.88 05/16/18 USD 74.74
OTTAWA HOLDINGS PT 5.88 05/16/18 USD 75.00
THAILAND
--------
G STEEL PCL 3.00 10/04/15 USD 13.50
MDX PCL 4.75 09/17/03 USD 17.75
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel
Elaine T. Fernandez, Julie Anne L. Toledo, and Peter A. Chapman,
Editors.
Copyright 2014. 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 ***