/raid1/www/Hosts/bankrupt/TCRAP_Public/140307.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, March 7, 2014, Vol. 17, No. 47
Headlines
A U S T R A L I A
AFRA CONSTRUCTION: BRI Ferrier Appointed as Administrators
ATLANTIC LTD: Indonesian Billionaire, Bondholders in Rescue Talks
ANTON CORPORATION: Hamilton Murphy Appointed as Administrators
AWA LIMITED: Up For Sale After Administration
BILLABONG INTERNATIONAL: Slater & Gordon to Launch Class Action
MANI INVESTMENTS: Mackay Goodwin Appointed as Administrators
SPIRIT REALTY: FTI Consulting Appointed as Administrators
SUNCORP-METWAY: Fitch Affirms Support Rating Floor at 'BB+'
TRANSPORT LOGISTICS: Jones Partners Appointed as Administrators
C H I N A
SHANGHAI CHAORI: Not Counting on a Government Bailout
SHANGHAI CHAORI: Payment Default Pos. for Market in LT Says Fitch
SOHO CHINA: 2013 Results Supports Moody's Ba1 Corp. Family Rating
TEXHONG TEXTILE: 2013 Results Supports Moody's Ba3 CFR
C A M B O D I A
CAMBODIA: Moody's Affirms B2 Issuer Rating; Outlook Stable
I N D I A
AISHWARYA PUBLICATIONS: CARE Revises Rating on INR5cr Loan to 'B'
ARVIND EXPORTS: ICRA Reaffirms 'B+' Rating on INR10cr Cash Credit
AS MOTORS: CARE Reaffirms 'B+' Rating on INR8cr Bank Loan
B P AGRO: CRISIL Assigns 'B' Rating to INR250MM Cash Credit
BRITEX COTTON: CRISIL Reaffirms 'B+' Rating on INR200MM Loan
C & C TOWERS: CARE Assigns 'C' Rating to INR200cr Bank Loan
CHAITANYA HOSPITAL: CRISIL Assigns 'B+' Rating to INR90MM Loans
DARIYALAL INDUSTRIES: CRISIL Puts 'B+' Rating on INR200MM Loans
DEVANSHI POWERS: CARE Reaffirms 'B+' Rating on INR9.11cr Loan
GKB OPHTHALMICS: CRISIL Reaffirms 'D' Rating on INR231MM Loans
HANUMAN COTTON: CARE Revises Rating on INR8.29cr Bank Loan to B+
HANUMAN RICE: CRISIL Reaffirms 'B-' Rating on INR110MM Loans
HARIKRISHNA COTGIN: CARE Cuts Rating on INR7.35cr Bank Loan to D
HEAVY METAL: CRISIL Reaffirms 'B+' Rating on INR60MM Cash Credit
HIRA COTTON: ICRA Assigns 'B+' Rating to INR9cr Bank Loans
JAG VIDHYA: CRISIL Assigns 'B' Rating to INR5MM Cash Credit
KANKAI PIPES: CARE Assigns 'B' Rating to INR4.75cr Bank Loan
KARISMAA FOUNDATIONS: CRISIL Keeps B+ Rating on INR73.5M Loans
KEI RAJAMAHENDRI: CARE Reaffirms 'D' Rating on INR10.9cr Loans
KIFCO INFRASTRUCTURE: CRISIL Puts 'B' Rating on INR80MM Loans
LOGON INDIA: CRISIL Reaffirms 'B' Rating on INR80MM Loan
LOKESH MACHINES: CARE Assigns 'B-' Rating to INR103cr Bank Loan
MAA GAURI: ICRA Reaffirms 'B+' Rating on INR2.25cr Loan
MAHESH RICE: ICRA Reaffirms 'B' Rating on INR12cr FB Limits
MANIL JEWELLERS: CARE Reaffirms B+ Rating on INR13.5cr Bank Loan
MY CAR: CRISIL Reaffirms 'B+' Rating on INR330MM Loans
N. K. BHOJANI: CRISIL Reaffirms 'B+' Rating on INR180MM Loans
NISAN ELECTRICALS: CARE Reaffirms 'B+' Rating on INR12.35cr Loan
OSWAL PSYLLIUM: CARE Assigns 'B' Rating to INR5.42cr Bank Loan
PINNACLE TELESERVICES: CARE Rates INR6.74cr Bank Loan at 'C'
PRAKASH ROAD: CRISIL Reaffirms 'C' Rating on INR120MM Loans
PRAMANIK RETAIL: ICRA Suspends 'D' Rating on INR55.57cr Loans
RIDHAM SYNTHETICS: CRISIL Reaffirms B+ Rating on INR200MM Loans
SARVODAYA SUITINGS: CARE Reaffirms 'C' Rating on INR48.43cr Loan
SATYA POWER: ICRA Reaffirms 'B+' Rating on INR10cr Cash Credit
SHANKAR RICE: ICRA Reaffirms 'B' Rating on INR9.76cr Loans
SHREE RAMRAJYA: CARE Revises Rating on INR15.52cr Loan to 'B+'
SHRI RAM: CARE Reaffirms 'B+' Rating on INR18.75cr Bank Loan
STRAIGHT EDGE: CARE Reaffirms 'B' Rating on INR10cr Bank Loan
SWASTIK STEVEDORES: ICRA Suspends 'B+' Rating on INR4cr Loan
SWEET CERAMIC: CRISIL Assigns 'B+' Rating to INR187.5MM Loans
TRIMURTY SPINNING: CARE Reaffirms B+ Rating on INR17.15cr Loan
TULSIANI CONSTRUCTIONS: ICRA Puts 'B' Rating on INR30cr Loan
VEDIK ISPAT: CRISIL Lowers Rating on INR250MM Loans to 'B+'
J A P A N
* Japan Government Says Bitcoin Not a Currency
N E W Z E A L A N D
SOLID ENERGY: Losses Set to Continue; Chairman Steps Down
X X X X X X X X
* Large Companies with Insolvent Balance Sheets
- - - - -
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A U S T R A L I A
=================
AFRA CONSTRUCTION: BRI Ferrier Appointed as Administrators
----------------------------------------------------------
Giovanni Maurizio Carrello -- john.carrello@briferrierwa.com.au
-- and Ronald Derek Gamble at BRI Ferrier were appointed as
administrators of AFRA Construction Pty Ltd on March 4, 2014.
A first meeting of the creditors of the Company will be held at
BRI Ferrier Western Australia, Unit 7, 99-101 Francis Street, in
Northbridge on March 14, 2014, at 10:30 a.m.
ATLANTIC LTD: Indonesian Billionaire, Bondholders in Rescue Talks
-----------------------------------------------------------------
Daniel Stacey, writing for The Wall Street Journal, reported that
Indonesian billionaire Anthoni Salim and a group of mainly U.S.
bondholders are in advanced talks on a rescue deal for Atlantic
Ltd. to stave off bankruptcy and maintain development of one of
the world's biggest vanadium mines, three people familiar with the
situation said.
According to the report, deal talks include Mr. Salim's Droxford
International Ltd. investment vehicle offering a AUD33 million
(US$30 million) financial lifeline to Atlantic, whose shares have
been suspended since early last month following a plant fire at
its Windimurra Vanadium Project in Western Australia state, the
people said. Any deal is contingent on an overhaul of the
company's management, they added.
A one-time darling of the Australian stock market, Atlantic's
market value has slumped from a peak of AUD367 million in 2011 to
AUD27 million amid a slump in prices for vanadium -- an industrial
metal used to strengthen steel in end-products ranging from
wrenches to fighter jets, the report related.
The fire followed a number of plant breakdowns last year that saw
the company consistently miss productions targets, restricting
cash flow and hurting sentiment in the stock, the report further
related. As a result, Atlantic's management has relied more
heavily on loans to maintain a project it had forecast could meet
as much as 7% of the world's demand for vanadium.
Investors in Atlantic are collectively owed AUD483.5 million, with
Mr. Salim's Droxford the largest single creditor, the report
added. Droxford has plowed AUD22.6 million in equity and a
further AUD148.5 million in unsecured loans and convertible bonds
into the business since 2010.
ANTON CORPORATION: Hamilton Murphy Appointed as Administrators
--------------------------------------------------------------
Richard Trygve Rohrt at Hamilton Murphy Pty Ltd was appointed as
administrator of Anton Corporation Pty Ltd, formerly trading as
Foodworks Mulgrave, on March 4, 2014.
A first meeting of the creditors of the Company will be held at
the offices of CPA Australia, Level 20, 28 Freshwater Place, in
Southbank, Victoria, on March 14, 2014, at 10:00 a.m.
AWA LIMITED: Up For Sale After Administration
---------------------------------------------
Cara Waters at SmartCompany reports that AWA Limited is up for
sale after collapsing into administration last week.
AWA Limited services the technology needs of businesses and its
website claims "where there is technology infrastructure that
needs to be installed and maintained AWA will be there making it
all work."
The tech company started operations in 1909 as a radio
manufacturer and radio broadcaster, but in recent years has
focused on providing technology services to major businesses and
government organisations.
SmartCompany notes that the business has been placed for sale by
Andrew Spring and Roderick Sutherland of Jirsch Sutherland who
were appointed as receivers on Feb. 28, 2014.
"We are continuing to seek expressions of interest in respect to
the sale of the business/assets of the company," Messrs. Spring
and Sutherland said in a sale advertisement placed on March 6,
SmartCompany relays.
AWA Limited was placed in administration last week with Philip
Carter -- pcarter@ppbadvisory.com -- Daniel Walley --
dwalley@ppbadvisory.com -- and Alan Walker --
awalker@ppbadvisory.com -- of PPB Advisory appointed as
administrators, SmartCompany discloses.
Expressions of interest in buying the business are open until
March 10, 2014, the report notes.
BILLABONG INTERNATIONAL: Slater & Gordon to Launch Class Action
---------------------------------------------------------------
Slater & Gordon has announced that it is preparing a class action
against Billabong International Limited on instructions from
hundreds of Australian and international investors.
Slater & Gordon Senior Associate Odette McDonald said the firm
would seek compensation on behalf of investors who contend that
Billabong engaged in misleading and deceptive conduct and failed
to comply with its continuous disclosure obligations.
The class action will allege that the surfwear, accessories and
action sports apparel company gave earnings guidance to investors
for the financial year 2012 that lacked reasonable grounds.
On Aug. 19, 2011, Billabong forecast that it would achieve strong
earnings growth in financial year 2012. A few months later, the
board of the company withdrew that guidance and revealed that its
earnings would suffer a substantial fall. As a result, Billabong's
share price dropped by more than 50 per cent in the days
following.
"Our clients allege that Billabong misrepresented the assumptions
on which the FY12 earnings growth guidance was based," Ms.
McDonald said.
"The company stated that achieving guidance depended on internal
initiatives, such as achieving synergies between its newly-
acquired retail outlets, and increasing the proportion of total
revenue from Billabong product. However, it is alleged that, in
reality, Billabong's growth guidance required an extraordinary
lift in overall sales revenue during an extremely challenging
retail environment.
"Our clients allege that Billabong's internal initiatives had no
viable chance of substantially increasing profit margins, contrary
to what the company had conditioned investors for. They further
allege that, had the market been informed of the true dependencies
underpinning the earnings forecast, it would have disregarded the
guidance as unrealistic, and this would have been reflected in
Billabong's share price.
"To ensure confidence in our markets, investors must be able to
rely on companies accurately and immediately disclosing price-
sensitive information.
"Based on our investigations to date, we believe that Billabong
has a case to answer."
Comprehensive Legal Funding LLC is funding the proposed action.
Comprehensive has funded shareholder class actions conducted by
Slater & Gordon against Centro, Sigma Pharmaceuticals, Nufarm and
GPT Group.
About Billabong
Based in Australia, Billabong International Limited (ASX:BBG) --
http://www.billabongbiz.com/-- is engaged in the wholesaling and
retailing of surf, skate, snow and sports apparel, accessories and
hardware, and the licensing of its trademarks to specified regions
of the world.
As reported in the Troubled Company Reporter-Asia Pacific on
Aug. 28, 2013, Bloomberg News said Billabong has closed 158
stores, canceled relationships with three-quarters of its
suppliers, and is cutting 15 percent of jobs in its European
division.
The value of its 13 brands fell to AUD90 million at the end of
June 2013 from AUD614 million in December 2011, and the Billabong
label itself is worthless, the company said in its financial
statements, Bloomberg said. About AUD37 million of group brand
value was locked up in the DaKine outdoor clothing and backpack
label which Billabong sold to Altamont last month, relayed
Bloomberg. Four other brands, including Element skateboards and
Palmers surfboard accessories, were also written down to a zero
valuation, according to the statements cited by Bloomberg.
Full-year losses widened to AUD860 million in the year ended
June 2013 from a AUD276 million loss in the previous 12 months,
compared to the AUD547 million average loss expected from four
analysts surveyed by Bloomberg. A 14 percent fall in sales put
revenue below the company's operating costs and the company took
aloan from Altamont Capital Partners to refinance its debt,
Bloomberg added.
MANI INVESTMENTS: Mackay Goodwin Appointed as Administrators
------------------------------------------------------------
Domenic Calabretta at Mackay Goodwin was appointed as
administrators of Mani Investments Australia Pty Ltd on March 4,
2014.
A first meeting of the creditors of the Company will be held at
Level 10, 239 George Street, in Brisbane, on March 13, 2014, at
11:00 a.m.
SPIRIT REALTY: FTI Consulting Appointed as Administrators
---------------------------------------------------------
Ian Charles Francis -- ian.francis@fticonsulting.com -- and
Mark David Englebert -- mark.englebert@fticonsulting.com -- at FTI
Consulting were appointed as administrators of Spirit Realty Pty
Ltd on March 4, 2014.
A first meeting of the creditors of the Company will be held at
Level 6, 30 The Esplanade, in Perth, on March 14, 2014, at
11:00 a.m.
SUNCORP-METWAY: Fitch Affirms Support Rating Floor at 'BB+'
-----------------------------------------------------------
Fitch Ratings has affirmed all the ratings of Suncorp Group
Limited (SGL) and its main operating subsidiaries: AAI Limited
(AAI) and Suncorp-Metway Limited (SML).
Suncorp-Metway Insurance Limited's (SMIL) IFS rating has been
withdrawn following a legal entity reorganisation and the transfer
of all insurance liabilities to AAI. SMIL no longer exists as a
legal entity.
Key Rating Drivers - SGL's IDR and AAI's IFS
The affirmation of SGL's Issuer Default Rating (IDR) and Stable
Outlook reflects the affirmation of AAI's Insurer Financial
Strength (IFS) rating and Stable Outlook.
SGL benefits from a large financial services footprint, which
includes a very strong non-life business, and simple life and
banking businesses. The organizational and operational
improvements from a to-date successfully implemented
simplification strategy, have driven a stronger operating
performance over the 18 months to end-1H14, and Fitch expects will
support a solid future performance.
Capital ratios are strong. At end-1H14 AUD1.3bn was held by the
group, above internal targets. The group holds most of its surplus
within the non-life operations but, since its reorganisation to a
non-operating holding company structure, has increasingly held
surplus capital at SGL. As a regulated entity, capital is
fungible and available to all the operating entities should it be
required.
The affirmation of AAI's IFS rating and Stable Outlook reflect its
strong business franchise and brands, as well as its dominant
market position in Australia's non-life insurance sector. Solid
premium rate increases and operational improvements, including
better risk selection and pricing, and a focus on claims and
expense management, has supported AAI's earnings performance.
The affirmation also reflects the group's continued conservative
approach to investments, reserving and financial leverage, within
AAI and wider non-life group.
Across the non-life group investment portfolios are heavily
weighted towards highly rated fixed-income securities. At end-
1H14, 93% of total investments were in fixed-income securities,
78% of these being rated 'AA-' or higher. Exposure to equities is
low and as a result the 'risky' asset to equity ratio of 9% is
very low relative to Fitch median criteria guidelines.
Reserving across the group is strong and has historically produced
large claims reserve redundancies, although these have trended
lower over the 18 months to end-1H14. The group maintained a 90%
probability of adequacy in its claims reserves and at end-1H14
held risk margins above its central estimate claims reserves of
AUD984 million. In the five years to FYE13, positive prior-period
movements have averaged 5% of opening equity.
Rating Sensitivities - SGL's IDR and AAI's IFS RATING
SGL's IDR is likely to move in line with AAI's IFS rating.
A positive rating action is unlikely. This is because the group's
banking exposure is large relative to the size of the insurance
entities, and SML's standalone profile acts as a drag on the group
rating. Positive rating action would require a stronger
standalone profile for SML, an extended period of robust operating
performance across all businesses and, at a group level, strong
and sustained capital ratios.
Key rating triggers that could lead to a downgrade include a
severe deterioration in the non-life operations' long-term
results, particularly if it coincides with weaker performance in
the banking or life operations, if it damages the franchise value
and if it leads to lower capital ratios. Profitability in the
non-life operations is currently key to the group's ratings.
Ratings could be downgraded should earnings be consistently below
industry levels and, specifically given the group's high ratings,
should combined ratios be in excess of 100%, and insurance trading
ratios below 10% over an extended period.
Key Rating Drivers - SML's IDRs, Support Rating And Senior Debt
The bank's IDRs, Support Rating and senior debt ratings reflect an
extremely high likelihood of support from the group if required,
as Fitch views SML as a core member of SGL. The ability to
provide support is strong, as reflected by capital surplus to
internal targets. As a result, SML's IDRs and Stable Outlook are
aligned with AAI's IFS rating.
Rating Sensitivities - SML's IDRSs, SUPPORT RATING and SENIOR DEBT
SML's IDRs and senior debt ratings are likely to move in line with
any movement in the IFS rating of AAI. A downgrade of the IDRs,
Support Rating and senior debt ratings is likely should SML no
longer be considered core to SGL. A significant reduction in the
group's ability to support SML, as measured by capital surplus to
minimum targets, without a commensurate improvement in SML's
intrinsic creditworthiness, as measured by the Viability Rating
(VR), may also place downward pressure on the ratings.
Key Rating Drivers - SML's VR
The bank's Viability Rating (VR) reflects its sound core
profitability and asset quality, improving capitalization, and the
operational benefits of being part of SGL, such as brand sharing,
fungibility of capital for growth, cross-sell capacity, and close
management interaction. These factors are offset by a reliance on
wholesale funding and recent strong loan growth which may put
pressure on asset quality, profitability and funding in future
periods.
The sale of most of the remaining non-core loans during 2013 was a
credit positive, consolidating the bank at its current VR level.
Asset quality improved significantly as a result of the sale, with
SML's impaired loan ratio now at the low end compared to domestic
peers, with further improvements expected as the remaining non-
core exposures are exited. Fitch expects some manageable
deterioration in the asset quality of the core portfolio during
2014 due to a modest weakening of the operating environment,
although there is some downside risk given SML's recent strong
loan growth has yet to fully season.
SML's reliance on wholesale funding is being gradually reduced as
the funding for the legacy non-core bank matures. Liquid asset
holdings including internally-securitized mortgages, cover almost
all wholesale debt maturities in 2014 and provide a strong buffer
to funding market dislocation. All liquid assets are eligible for
the Reserve Bank of Australia's repurchase facility.
Standalone capitalisation is improving, with Fitch core
capital/risk-weighted assets at 8.91% at end-1H14, and significant
group surplus capital could be quickly channelled to the bank
should it be required. SML targets a minimum Basel III common
equity Tier 1 ratio of 8% - it was 8.25% at end-1H14.
Profitability is also likely to improve further in 2014 as the
legacy funding associated with the non-core assets matures,
reducing the drag it has on earnings.
Rating Sensitivities - SML's VR
SML's VR could be downgraded should asset quality worsen
substantially, possibly as a result of strong loan growth, which
could weaken its funding and liquidity profile, or a significant
deterioration in the operating environment.
An upgrade of SML's VR would require evidence that the bank's
strong loan growth has not had a negative impact on asset quality
and profitability, as well as further strengthening of the funding
profile and profitability.
Key Rating Drivers And Rating Sensitivities - SML's Support Rating
Floor
The Support Rating Floor reflects SML's limited market share, with
Fitch factoring in a moderate probability of support from the
Australian authorities. The Support Rating Floor is potentially
sensitive to any change in assumptions around the propensity or
ability of the Australian authorities to provide timely support to
the bank. The Floor is vulnerable to global regulatory
initiatives aimed at reducing the implicit government support
available to banks.
Key Rating Drivers And Rating Sensitivities - SML's Subordinated
Debt
SML's subordinated debt is rated one notch below its Long-Term IDR
rather than its VR to reflect Fitch's expectation that SGL has the
propensity and ability to support these instruments if needed, as
per Fitch's criteria "Assessing and Rating Bank Subordinated and
Hybrid Securities" dated 31 January 2014. The subordinated debt
ratings are broadly sensitive to the same considerations that
might affect SML's Long-Term IDR.
The rating actions are as follows:
Suncorp Group Limited (SGL)
Long-Term IDR: affirmed at 'A'; Outlook Stable;
Short-Term IDR: affirmed at 'F1'.
Suncorp-Metway Limited (SML):
Long-Term IDR: affirmed at 'A+'; Outlook Stable;
Short-Term IDR: affirmed at 'F1';
Viability Rating: affirmed at 'bbb+';
Support Rating: affirmed at '1';
Support Rating Floor: affirmed at 'BB+';
Government-guaranteed debt: affirmed at 'AAA';
AUD domestic medium-term note program: affirmed at 'A+'/'F1';
USD15bn euro medium-term note program: affirmed at 'A+'/'F1';
Senior unsecured debt: affirmed at 'A+';
Commercial paper: affirmed at 'F1'; and
Subordinated debt: affirmed at 'A'.
Suncorp Metway Insurance Ltd (SMIL):
Insurer Financial Strength: withdrawn.
AAI Limited:
Insurer Financial Strength: affirmed at 'A+'; Outlook Stable.
TRANSPORT LOGISTICS: Jones Partners Appointed as Administrators
---------------------------------------------------------------
Bruce Gleeson at Jones Partners was appointed as administrator of
Transport Logistics Pty Limited on March 4, 2014.
A first meeting of the creditors of the Company will be held at
Jones Partners Insolvency & Business Recovery, Suite 301, Level 3,
4 Columbia Court, Nexus Building, Norwest Business Park, in
Baulkham Hills, on March 14, 2014, at 9:30 a.m.
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C H I N A
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SHANGHAI CHAORI: Not Counting on a Government Bailout
-----------------------------------------------------
Wynne Wang, writing for The Wall Street Journal, reported that
Shanghai Chaori Solar Energy Science & Technology Co., who is
facing China's first bond default, said that, for now, it wouldn't
receive a local-government bailout and reiterated it can repay
only a tiny fraction of the interest on debt issued two years ago.
Liu Tielong, board secretary of Shanghai Chaori, told the Journal
that the Shanghai government "hasn't promised anything and is
treating our debt crisis according to market rules."
The company plans to pay four million yuan ($654,000) of the 89.8
million yuan ($14.6 million) in interest owed on its one billion
yuan bond on March 7, the report related.
"We will try our best to pay bondholders as soon as possible but
the company also has other debts," the Journal said, citing Mr.
Liu. He said the underwriter of the debt would announce a
bondholders' meeting to discuss the potential dispute before
March 11.
The solar cells and panels producer said that it wouldn't be able
to repay the total bond interest by the March 7 deadline, the
report further related. "Due to various uncontrollable factors,
until now the company has only raised four million yuan to pay the
interest," Chaori said, without elaborating.
SHANGHAI CHAORI: Payment Default Pos. for Market in LT Says Fitch
-----------------------------------------------------------------
Fitch Ratings believes that the likely first default of a Chinese
corporate onshore bond will be positive for the market in the long
term as it will instil greater discipline to price credit risk
more effectively. Shanghai Chaori Solar Energy Science and
Technology Co., Ltd. (Chaori) has warned it will not make in full
a CNY89 million interest payment due March 7, 2014 on an onshore
interbank bond with a March 2017 maturity.
Chaori's expected default coincides with the annual National
People's Congress, a meeting of China's political leadership. That
the Chaori default has been allowed to emerge may signal a shift
in the government's stance towards a greater tolerance of outright
corporate defaults. Chaori's bonds have a large retail investor
base, which makes the case even more noteworthy.
In the recent years, local governments have intervened several
times to prevent defaults in the onshore corporate credit market
in order to maintain economic and social stability. In particular,
corporate bond defaults have been prevented because China has a
keen interest in expanding its onshore bond market.
The onset of an outright default is likely to lead to a re-pricing
of corporate credit risk as the common perception that the
government will bail out all struggling companies falls away.
Weaker Chinese corporates may therefore see an increase in their
onshore borrowing costs. Fitch expects a reduction of onshore
lenders' and investors' risk appetites, which could pressure
frailer companies' liquidity, especially in sectors challenged by
cyclical downturns and persistent capacity surpluses.
We see onshore corporate credit defaults as a long-term positive
for China's financial system as it should instil greater market
discipline and lead to a more efficient allocation of capital
among corporate borrowers. It may also prompt further regulatory
progress to provide more clarity on the legal process governing
domestic bankruptcies and restructuring, which should benefit both
onshore and offshore creditors in the long run.
We expect Chaori's default to have relatively limited impact on
Chinese corporate issuers of offshore debt, although the credit
risk premium could widen modestly in the short term. Compared with
the onshore market, the offshore market has a higher degree of
sector and individual company differentiation in pricing.
SOHO CHINA: 2013 Results Supports Moody's Ba1 Corp. Family Rating
-----------------------------------------------------------------
Moody's Investors Service says SOHO China Limited's 2013 final
results are in line with Moody's expectations and support its Ba1
corporate family rating and senior unsecured bond rating.
The ratings outlook remains stable.
"Although SOHO China's revenue and profit declined along with its
business transition, its 2013 results are in line with Moody's
expectations. Its healthy credit metrics and liquidity continue to
support its Ba1 ratings," says Kaven Tsang, a Moody's Vice
President and Senior Analyst.
SOHO China's revenue dropped 9% year-on-year to RMB14.6 billion
from RMB16.1 billion in 2012, as a result of lower contributions
from property development. Meanwhile, its gross margin remained
largely unchanged at around 55.5%.
Moody's expects SOHO China's revenue from its property development
business will drop further to RMB6 billion-RMB7 billion in 2014,
as the company continues its transition to the build-to-hold
model.
On the other hand, SOHO China's investment property business is
progressing as planned.
Moody's anticipates gross rental income will maintain its strong
growth in 2014, versus its 78% year-on-year increase to RMB279
million in 2013, when existing projects become fully operational
and new projects such as Wangjing SOHO, SOHO Fuxing Plaza and Sky
SOHO are completed and become cash generative.
"SOHO China's EBITDA interest coverage fell to 6.6x for the year
ended December 2013 from 8.9x in 2012. But it is still within the
range for its Ba1 ratings," adds Tsang, who is also Moody's Lead
Analyst for SOHO China.
While SOHO China's interest coverage ratio will decline further to
3x-4x in the next two years, such weakness could be partly
mitigated by its stronger recurring cash flow and the resultant
improvement in financial stability.
"Additionally, SOHO China has continued to maintain a strong
liquidity position and a low leverage level, which is important
for its business transition," adds Tsang.
It had total cash holdings of RMB10.7 billion as of end-2013,
which are sufficient to cover its short-term debt of RMB2.8
billion and contracted capital commitments of RMB3.7 billion. The
company's recent sales of two projects in Shanghai also boost its
liquidity.
Moody's notes that SOHO China spent HKD1.7 billion, or RMB1.4
billion, in cash, on share repurchases in 2013. While these
repurchases have not materially weakened the company's liquidity,
further use of its internal reserves to purchase company shares
that lead to a deterioration in liquidity could pressure the
company's ratings.
The company also maintains low balance sheet leverage with
adjusted debt/capitalization at 30.5% as of December 2013, partly
supported by a revaluation gain of its investment properties.
Moody's anticipates SOHO China's secured and subsidiary debt will
stay less than 10% of its total assets over the near to medium
term. The ratio was less than 5% as of end-2013. Therefore, its
bond rating is not notched down from the corporate family rating
for subordination.
SOHO China's ratings were assigned by evaluating factors that
Moody's considers relevant to the credit profile of the issuer,
such as the company's (1) business risk and competitive position
compared with others within the industry; (2) capital structure
and financial risk; (3) projected performance over the near to
intermediate term; and (4) management track record and tolerance
for risk.
Moody's compared these attributes against other issuers from both
within and outside SOHO China's core industry and believes that
SOHO China's ratings are comparable to those of other issuers with
similar credit risk.
SOHO China Limited, incorporated in March 2002 and listed on the
Hong Kong Stock Exchange in October 2007, develops and manages
commercial properties in Beijing and Shanghai's core business
districts.
It's completed developments span over 3 million square meters in
gross floor area.
TEXHONG TEXTILE: 2013 Results Supports Moody's Ba3 CFR
------------------------------------------------------
Moody's Investors Service says Texhong Textile Group Limited's
2013 results are in line with Moody's expectations and support its
Ba3 corporate family and senior unsecured bond ratings.
The ratings outlook remains stable.
"Texhong's solid 2013 results were driven mainly by capacity
expansions in China and Vietnam, and an improved gross margin,"
says Chenyi Lu, a Moody's Vice President and Senior Analyst.
Accordingly, the company's revenue rose by 12.1% year-on-year to
RMB8.2 billion in 2013 from RMB7.3 billion in 2012.
The company's cotton spinning capacity in China had increased to
1.11 million spindles at end-2013 from 0.6 million at end-2012,
while its capacity in Vietnam had grown to 0.73 million from 0.4
million over the same period.
The company expects to have a total capacity of approximately 2.16
million spindles by end-3Q 2014, including 1.17 million in China
and approximately 0.99 million in Vietnam.
Beyond China and Vietnam, Texhong is building a production
capacity of 0.12 million spindles in Turkey, which is expected to
commerce in early 2015.
While such a move could help the company diversify its high
revenue concentration away from China, which accounted for about
80% of its total 2013 revenue, it poses new challenges for
resource management and raises execution risk.
Moody's also notes that Texhong's reported gross margin increased
to 19.2% in 2013 from 15.3% in 2012. The margin recovery was due
to declining cotton prices and the relocation of production
facilities from China to Vietnam where there are no import tariffs
on cotton and labor costs are lower.
As a result, adjusted EBITDA reached RMB1.39 billion in 2013, up
50.8% from RMB925 million in 2012.
With the improved margins, Texhong's credit metrics are positioned
within the Ba3 rating range.
Adjusted EBITDA interest coverage improved to 6.6x at end-2013
from 6.3x at end-2012. But adjusted debt/EBITDA deteriorated
modestly to 3.4x from 2.7x, mainly because of the issuance of $200
million senior notes in April 2013 for the purposes of funding
capital expenditure and working capital, and an increase in bills
payables to RMB1.59 billion from RMB613 million to support its
expanded operations.
Based on the expanded production capacity and improved margins,
Moody's expects adjusted debt/EBITDA will be in a range of 3.0x to
3.5x over the next 12-18 months, which would be within the current
rating level.
Texhong has adequate liquidity. At end-2013, the company had cash
and cash equivalents totaling RMB0.92 billion.
Moody's expect the company to generate operating cash flows of
RMB0.9 billion to RMB1.1 billion over the next 12 months. These
sources of liquidity are sufficient to cover about RMB1.8 billion
of debt (including bills payables) due in the 12 months up until
to end-2014.
It also held around RMB709 million in bills receivables at end-
2013, which can be discounted for cash. In addition, the company
has committed and unused banking facilities of $50 million to
finance the procurement of materials.
The principal methodology used in this rating was the Global
Manufacturing Industry published in December 2010.
Established in 1997 and listed on the Hong Kong Stock Exchange
since 2004, the Texhong Textile Group specializes in producing
core-spun yarn and textile products. The company currently
operates 15 yarn production bases: 12 in the Yangtze River Delta
and Shandong Province in China and three in Vietnam. Its chairman,
Tianzhu Hong, holds a about 52% stake and is the majority
shareholder of the company.
===============
C A M B O D I A
===============
CAMBODIA: Moody's Affirms B2 Issuer Rating; Outlook Stable
----------------------------------------------------------
Moody's Investors Service has affirmed Cambodia's government
issuer rating at B2 with a stable outlook.
Moody's affirmation of the rating and the stable outlook is based
on the view that Cambodia's underlying credit strengths are
expected to withstand the impact of recent political tensions and
labor unrest in the garment industry.
Key drivers for the decision reflect the following credit
strengths:
(1) A healthy outlook for economic growth;
(2) Limited vulnerability to fiscal and external funding stress;
and
(3) Ongoing fiscal consolidation from fiscal stimulus originally
in response to the global financial crisis.
Moody's has also revised Cambodia's local currency (LC) country
risk ceiling to B2, in line with the sovereign rating, from Ba1
previously; and the long-term foreign currency (FC) bond ceiling
to B2 from B1. The long-term FC bank deposit ceiling is unchanged
at B3, and the FC short-term bond and deposit ceilings are also
unchanged at NP.
These ceilings act as a cap on ratings that can be assigned to the
foreign and local currency obligations of entities domiciled in
the country.
Ratings Rationale
Rationale For Rating Affirmation At B2
First driver -- A healthy outlook for economic growth
Cambodia's outlook for economic growth appears firm and will
continue to be driven over the medium-term by garment
manufacturing, tourism, construction, and agriculture. Although
the political pressures and labor unrest that emerged in the
second half of 2013 could impose downside risks in the near-term
if tensions continue unabated, high-frequency indicators such as
garment exports and tourist arrivals continued to exhibit robust
performance. In 2013, garment exports increased 10.7%, while
tourist arrivals rose 18.0% year-on-year through November 2013
year-to-date, the latest month for which data was available.
Moody's expect that real GDP growth will be sustained at 7.0% in
2013, down slightly from 7.3% in 2012, while strikes and labor
unrest could result in a slight moderation to 6.9% in 2014.
However, this scenario is still considerably stronger than the
projected median average growth rate of 4.0% for B-rated peers.
Assuming a return to political stability, Moody's expects growth
in Cambodia to trend higher to 7.1% by 2015.
However, rapid credit growth has accompanied the robust economic
performance of recent years. This could eventually introduce
systemic risks and produce a boom-bust cycle, if not well managed.
The country's high level of dollarization hinders the National
Bank of Cambodia's lender of last resort function, while similarly
constraining the government's capacity to support any potential
need for recapitalization.
Second driver -- Limited vulnerability to fiscal and external
funding stress
Cambodia's current account deficit, at 8.6% of GDP in 2012 - the
latest data available - is lower than the B-rated peer group
median of 9.3%, but was easily financed by foreign direct
investment (FDI), official transfers, and aid flows. These trends
persisted through 2013 and, as a result, foreign reserves have
edged higher, to $4.1 billion as of December 2013, from $3.3
billion in the previous year. External debt, all of which has been
incurred by the government, has markedly declined, from a peak of
78.7% of GDP in 1998, and has stabilized to around 32-34% of GDP
over the last six consecutive years.
Stresses on debt servicing are unlikely to arise given that the
vast majority of government debt comprises longer-tenor
concessional loans from multilateral and bilateral lenders. As a
result, the average maturity of debt is close to 23 years, with
the interest rate averaging a little over 1% since 2012.
Liabilities to multilateral creditors, such as the Asian
Development Bank and the World Bank make up 37% of Cambodia's
total debt stock. Bilateral creditors account for the remaining,
with China contributing over 31% of total external debt. Funding
from these sources, especially from China, is expected to be
robust.
Third driver - Ongoing fiscal consolidation from fiscal stimulus
in response to the global financial crisis.
The fiscal deficit remains on a steady path of consolidation,
narrowing from a peak of 8.4% of GDP in 2009 to 3.8% in 2012. In
2014, the deficit is projected to further decelerate to 2.8%, from
3.0% in 2013. Ongoing efforts towards to improve revenue should
make these targets achievable, although a higher wage bill could
lead to an overshooting of spending targets.
However, the large proportion of the government's debt--at an
estimated 98.4% in 2012--is denominated in foreign currency
thereby constraining our assessment of Cambodia's fiscal strength.
Notwithstanding the low debt servicing requirements described
above, the government's balance sheet is thus especially
vulnerable to exchange rate shocks. The crystallization of large
contingent liabilities in the power sector would also pose a
significant fiscal burden.
Rationale For The Stable Outlook
The stable outlook is premised on Cambodia's healthy growth
prospects and a stable external payments position, which balance
structural weaknesses, such as the country's very low per capita
income and reliance on foreign aid, poor governance and
institutional strength, and the heavily dollarized nature of the
economy, which limits the lender of last resort capacities of the
central bank.
What Could Change The Rating Up/Down
Factors that could trigger a positive rating action include: (1)
Improved fiscal management that enables the budget to adapt to a
possible future decline in official aid disbursements as well as
limit susceptibility to exogenous shocks (2) continued strong
growth in FDI and a strengthening of the external payments
position which aid infrastructure development; or (3)
institutional improvements, stabilization in the political
climate, and a resolution of the labor unrest.
Factors that could trigger a negative rating action include: (1)
an erosion in the competitiveness of Cambodia's tourism prospects
or low-wage garment industry; (2) a crystallization of contingent
liabilities that could cause fiscal consolidation to go off-track;
(3) a continuation of strong credit growth which would heighten
sensitivity to systemic risks; or (4) intensification of political
turmoil that adversely affects growth performance.
GDP per capita (PPP basis, US$): 2,395 (2012 Actual) (also known
as Per Capita Income)
Real GDP growth (% change): 7.3% (2012 Actual) (also known as GDP
Growth)
Inflation Rate (CPI, % change Dec/Dec): 2.5% (2012 Actual)
Gen. Gov. Financial Balance/GDP: -3.8% (2012 Actual) (also known
as Fiscal Balance)
Current Account Balance/GDP: -8.6% (2012 Actual) (also known as
External Balance)
External debt/GDP: 33.1% (2012 Actual)
Level of economic development: Very Low level of economic
resilience
Default history: No default events (on bonds or loans) have been
recorded since 1983.
On 26 February 2014, a rating committee was called to discuss the
rating of the Cambodia, Government of. The main points raised
during the discussion were: The issuer's economic fundamentals,
including its economic strength, have not materially changed. The
issuer's institutional strength/ framework, have not materially
changed. The issuer's fiscal or financial strength, including its
debt profile, has not materially changed. The issuer's
susceptibility to event risks has not materially changed.
The principal methodology used in this rating was Sovereign Bond
Ratings published in September 2013.
The weighting of all rating factors is described in the
methodology used in this rating action, if applicable.
=========
I N D I A
=========
AISHWARYA PUBLICATIONS: CARE Revises Rating on INR5cr Loan to 'B'
-----------------------------------------------------------------
CARE revises the rating assigned to the bank facilities of
Aishwarya Publications Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 5 CARE B Revised from
Facilities CARE B-
Rating Rationale
The revision in the long-term rating assigned to bank facilities
of Aishwarya Publications Private Limited factors in the
improvement in the profitability margins and expected improvement
in capital structure.
The rating of the bank facilities of APPL continues to be
constrained by the weak financial risk profile characterized by
the small scale of operations and elongated working capital cycle.
The rating is further constrained by dependence on a single
publication with low readership and negligible subscription
revenue, susceptibility of profitability to volatile raw material
prices and dependence on advertisement revenue.
These constraints far outweigh the benefits derived from the
experienced promoters and their financial support in the past.
APPL's ability to increase the scale of operation and manage its
working capital cycle would be the key rating sensitivities.
Incorporated in 1991, Aishwarya Publications Private Limited is
engaged in publishing a bi-weekly newspaper named "Assignments
Abroad Times (AAT)" providing information on job openings in
overseas market, foreign policies, business news, visa rules and
other information. Though APPL has a distribution network across
country, it has a presence mainly in the states of Tamil Nadu,
Kerala and Andhra Pradesh. Currently, AAT has a monthly
circulation of around 160,000 across India.
During 9MFY14 (refers to the period April 01 to December 31), APPL
had sold the owned printing facility and has started outsourcing
the printing of its publication. The sale was primarily on the
account of the high operational cost and proceeds of sale have
been used for repaying/ prepaying the term debt from banks and
financial institutions.
As per FY13 (refers to the period April 01 to March 31) results,
APPL posted a total income of INR13.38 crore (up by 15% vis-a-vis
FY12) and GCA of INR1.67 crore (up by 114% vis-a-vis FY12). As
per the provisional 9MFY14, APPL posted a total income of INR9.50
crore.
ARVIND EXPORTS: ICRA Reaffirms 'B+' Rating on INR10cr Cash Credit
-----------------------------------------------------------------
ICRA has reaffirmed the '[ICRA]B+' rating to the INR10.00 crore
fund-based cash credit facility of Arvind Exports Solvent Oil
Industries.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 10.00 [ICRA]B+ reaffirmed
The rating reaffirmation continues to factor in Arvind Export
Solvent Oil Industries' modest scale of operations, weak financial
profile characterized by low profitability, high gearing and weak
coverage indicators. The rating also factors in the vulnerability
to movement in of raw material prices, which are subject to
seasonality and crop harvest as well as low profit margins on
account of limited value addition and highly fragmented industry
structure. The margins are also exposed to regulatory risk with
regard to export quota and Minimum Support Price (MSP) for raw
cotton fixed by the Government of India. Also, being a partnership
firm, any substantial withdrawals from capital account would
impact the net worth and thereby the capital structure.
The ratings, however, favorably consider the long experience of
the promoters in the edible oil and DOC (de-oiled cake) segment
and location advantage by virtue being in Gujarat, providing it
easy access to quality raw material and a stable demand outlook
for the edible oil industry.
Established in 2005, Arvind Export Solvent Oil Industries is
managed by Mr. Jagdish Dobariya and other family members. The firm
is engaged in the business of crushing of groundnut seeds to
produce groundnut oil and groundnut cake. The firm is also engaged
in solvent extraction of groundnut oil from groundnut cake and
refining of raw groundnut oil.
Recent Results
For the year ended 31st March, 2013, the company reported an
operating income of INR29.56 crore with profit after tax (PAT) of
INR0.13 crore.
AS MOTORS: CARE Reaffirms 'B+' Rating on INR8cr Bank Loan
---------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
AS Motors Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 8 CARE B+ Reaffirmed
Rating Rationale
The rating assigned to the bank facilities of AS Motors Private
Limited continues to be constrained on account of its modest scale
of operations in a highly competitive auto dealership industry
with limited bargaining power with the principal automobile
manufacturer. The rating is further constrained on account of its
weak financial risk profile marked by thin profitability, highly
leveraged capital structure, weak debt coverage indicators and
weak liquidity position.
The rating, however, favorably continues to take into account the
vast experience of the promoters in the automobile dealership
business with authorized dealership of three major automobile
manufacturers.
The ability of ASMPL to increase its market presence in light of
the competitive nature of the industry, improvement in the overall
financial risk profile with improvement in the capital structure
and profitability are the key rating sensitivities.
ASMPL was established in 1988 by Mr Sanjay Garg, managing director
at Gwalior, Madhya Pradesh (MP). ASMPL is engaged in the business
of automobile dealership of Tata Motors Limited's passenger cars
segment such as Indica V2, Indigo CS & LS, Sumo Grande, Safari VTT
Range, Nano, etc. The company also has authorized dealership of
Honda Motorcycles and Scooters India Pvt Ltd (HMSI). ASMPL also
has dealership of Tractors and Farm Equipment Limited (TAFE) since
2010. ASMPL has two showrooms located at Gwalior, MP, and also
provides after sales services and spare parts for TML, HMSI and
TAFE at its outlet.
As per the audited results of FY13 (refers to the period April 1
to March 31), ASMPL reported a total operating income of INR60.87
crore (FY12: INR75.53 crore) and Profit after Tax (PAT) of INR0.10
crore (FY12: INR0.11 crore). As per the provisional results for
10MFY14, ASMPL registered a TOI of INR49.25 crore.
B P AGRO: CRISIL Assigns 'B' Rating to INR250MM Cash Credit
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the bank
facilities of B P Agro Industries. The rating reflects BPA's weak
financial risk profile and small scale of operations in the high
fragmented industry. These rating weaknesses are partially offset
by BPA's promoter's extensive experience in the industry and
financial support from them.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 250 CRISIL B/Stable
Outlook: Stable
CRISIL believes that BPA will maintain its business risk profile,
backed by the extensive experience of its promoters in the rice
industry. Its financial risk profile is, however, expected to
remain constrained due to high gearing and weak debt protection
metrics. The outlook may be revised to 'Positive' in case of
significant improvement in the firm's financial risk profile, due
to capital infusion or improvement in the scale of operations.
Conversely, the outlook may be revised to 'Negative' in case of
deterioration in the BPA's financial risk profile due to
significant increase in inventory, leading to large incremental
bank borrowings or in case of a debt-funded capital expenditure
programme
BPA is a partnership firm started in 2001 by Ohri family and
Davesar family. Firm is engaged in the milling and processing of
paddy into basmati rice. It has its milling capacity at Tarn Taran
district in Punjab.
BRITEX COTTON: CRISIL Reaffirms 'B+' Rating on INR200MM Loan
------------------------------------------------------------
CRISIL's ratings on the bank facilitates of Britex Cotton
International Ltd continue to reflect BCIL's modest scale of
operations, and its limited pricing flexibility in an industry
that is vulnerable to volatility in commodity prices and to
regulatory changes. The ratings also factor in the company's
below-average financial risk profile, marked by a high total
outside liabilities to tangible net worth (TOLTNW) ratio. These
rating weaknesses are partially offset by the extensive experience
of BCIL's promoters in the cotton and yarn trading industry, the
company's established clientele, and its tie-ups with suppliers.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 200 CRISIL B+/Stable (Reaffirmed)
Letter of Credit 750 CRISIL A4 (Reaffirmed)
For arriving at the ratings, CRISIL has treated unsecured loans of
INR60 million as on March 31, 2013, extended to BCIL by its
promoters, as neither debt nor equity, as these loans will be
retained in the business and interest charged on them is lower
than the bank rate.
Outlook: Stable
CRISIL believes that BCIL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if BCIL reports more-than-
expected growth in its revenues and margins, leading to
improvement in its cash accruals and debt protection metrics.
Conversely, the outlook may be revised to 'Negative' if the
company's debt protection metrics deteriorate, caused most likely
by lower-than-expected growth in revenues and margins, or a
significant stretch in its working capital cycle. Significant
outflow of funds to its group companies may also result in a
'Negative' outlook.
Update
BCIL's operating revenues increased to INR3.11 billion in 2012-13
(refers to financial year, April 1 to March 31), from INR1.67
million in 2011-12 driven by higher demand for raw cotton from
Chinese fabric and ready-made garment manufacturers. The company
had an operating profit margin of around 2.3 per cent in 2012-13,
as against 1.67 per cent in 2011-12.
BCIL's operations remain working-capital-intensive, as reflected
in its gross current assets of 150 days as on March 31, 2013,
lower than 230 days a year earlier. The company receives payment
from its customers within 60 to 80 days, while some part of its
export sales are backed by180-day letters of credit (LCs), leading
to receivables of 84 days as on March 31, 2013, as against 89 days
as on March 31, 2012. BCIL's inventory has reduced to 37 days as
on March 31, 2013, from 63 days a year earlier. Furthermore, the
company receives credit of 60 to 80 days from its suppliers
partially supported by LC limits, leading to payables of around 99
days as on March 31, 2013.
BCIL has a below-average financial risk profile, marked by a high
TOLTNW ratio of 6.22 times as on March 31, 2013; the ratio has
been volatile over the past three years as the company's funds are
fungible with those of its group companies. BCIL's interest
coverage ratio was 1.12 times, and its net cash accruals to total
debt ratio 5 per cent, for 2012-13. The company had a moderate net
worth of INR170 million as on March 31, 2013.
BCIL had cash accruals of INR13.3 million in 2012-13 with no term
debt obligations during the year. Its bank facilities were fully
utilised over the six months through October 2013.
BCIL was incorporated in 1996, promoted by Mr. Badresh Mehta, a
first-generation entrepreneur from Mumbai. The company trades in
yarn, fabrics, and cotton, and operates mainly in the Indian
market.
C & C TOWERS: CARE Assigns 'C' Rating to INR200cr Bank Loan
-----------------------------------------------------------
CARE assigns 'CARE C' rating to the bank facilities of C & C
Towers Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 200 CARE C Assigned
Facilities
Rating Rationale
The rating assigned to the bank facilities of C&C Towers Limited
is constrained due to the delay in project implementation leading
to significant cost overrun, also leading to restructuring of
debt. The rating is further constrained by the high execution and
funding risk and deterioration in the financial health of sponsor
company, C&C Construction Limited (rated CARE C).
Going forward, the ability of the company to complete the project
within the estimated cost and timelines and sell/lease the
commercial area within reasonable time and estimated prices would
be the key rating sensitivities.
C&C towers Limited, incorporated on March 27, 2009, is a wholly
owned subsidiary of C&C Construction Limited. CCTL was
incorporated for the development of Mohali bus terminal-cum-
commercial complex (including hotel) with an aggregate
construction area of 9.4 lsf on design, build, finance, operate
and transfer basis. The project for development of this is awarded
by the Greater Mohali Area Development Authority (GMADA) for a
concession period of 20 years for the bus terminal and 90 years
for the commercial complexes/hotel. CCTL has already signed the
concession agreement on April 15, 2009, with GMADA, Punjab
Infrastructure and Development Board and State Transport
Department & Government of Punjab.
The total cost for the said project was initially estimated at
INR431 crore; however due to change in scope of project and delays
in project implementation, the total project cost was revised to
INR530 crore funded through debt of INR200 crore, equity of INR125
crore and the remaining through sale of commercial space. CCTL has
proposed to complete the project as per revised timelines by the
end of June 2014.
As on February 1, 2014, CCTL has incurred INR312 crore on the
development of project.
CHAITANYA HOSPITAL: CRISIL Assigns 'B+' Rating to INR90MM Loans
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank
facilities of Chaitanya Hospital.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 72.5 CRISIL B+/Stable
Overdraft Facility 5.0 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 12.5 CRISIL B+/Stable
The rating reflects CH's modest scale of operations with single
location presence, its below-average financial risk profile,
marked by high gearing and constrained by large debt-funded
capital expenditure (capex) undertaken for the new hospital unit.
The rating also factors in CH's risks related to start-up phase of
its newly set up hospital unit. These rating weaknesses are
partially offset by the proprietor's extensive industry experience
and hospital's established regional presence in Pune
(Maharashtra).
Outlook: Stable
CRISIL believes that CH will benefit over the medium term from its
proprietor's extensive industry experience and established
presence in Chinchwad, Pune. The outlook may be revised to
'Positive' in case of a significant increase in the firm's scale
of operation supported by better-than-expected ramp up in its new
hospital unit, leading to higher-than-expected cash accruals and
improvement in financial risk profile. Conversely, the outlook may
be revised to 'Negative' in case of further deterioration in CH's
financial risk profile especially its liquidity most likely caused
by lower cash accruals owing to lower-than-expected ramp up from
new hospital unit.
CH, established in 2006, is a sole proprietorship of Dr. Sushi
Kulkarni. It presently operates a 40 bed multi-speciality hospital
in Chinchwad, Pune (Maharashtra) specialising in all kinds of
orthopaedic and general surgery treatments along with consulting
in medicines, gynaecology, cardiology, nephrology, and paediatric
treatments. CH has recently set up a 60 bed new hospital unit in
the vicinity of existing hospital which likely to start operations
in March 2014.
DARIYALAL INDUSTRIES: CRISIL Puts 'B+' Rating on INR200MM Loans
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank
facilities of Dariyalal Industries.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 65 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 135 CRISIL B+/Stable
The rating reflects DI's modest scale of operations in the highly
competitive cotton industry, and vulnerability of its business and
profitability to changes in government policy. The rating also
indicates the expected deterioration in DI's debt protection
metrics. These rating weaknesses are partially offset by its
promoters' extensive industry experience, and the proximity of the
firm's unit to the cotton-growing belt in Gujarat.
Outlook: Stable
CRISIL believes that DI will continue to benefit over the medium
term form its promoters' extensive experience in the cotton
industry. The outlook may be revised to 'Positive' if there is an
improvement in profitability and scale of operations resulting in
debt protection metrics. Conversely, the outlook may be revised to
'Negative', if the firm's financial risk profile deteriorates
further due to stretch in working capital cycle, withdrawal of
funds by the partners or any large debt-funded capital
expenditure, or DI's operations come under pressure owing to a
shift in government policy.
Formed in 1989, DI was promoted by the late Mr. Prataprai Pujara
and Mr. Jagdish Pujara. Presently, Mr. Jay Pujara and other family
members managing the business. The firm is engaged into cotton
ginning and pressing activity.
DI reported a book profit of INR5.08 million on net sale of INR157
million for 2012-13 (refers to financial year, April 1 to
March 31), against a net profit of INR1.48 million on net sales of
INR157 million for 2011-12.
DEVANSHI POWERS: CARE Reaffirms 'B+' Rating on INR9.11cr Loan
-------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Devanshi Powers Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 9.11 CARE B+ Reaffirmed
Facilities
Short-term Bank
Facilities 8.00 CARE A4 Reaffirmed
Rating Rationale
The ratings assigned to the bank facilities of Devanshi Powers Ltd
continue to remain constrained on account of customer and supplier
concentration risk, weak financial risk profile marked by thin
profitability, moderate liquidity position, exposure to raw
material price fluctuation and limited value addition. These
constraints continue to offset the benefits derived from the
promoters' experience in the business of copper wires and strips.
The ratings further draw comfort from the conversion of
partnership firm into a closely held public limited company,
thereby enhancing financial flexibility and also factors in the
improvement in capital structure and debt coverage indicators and
decline in profitability during FY13 (refers to the period
April 1 to March 31).
The ability of DPL to increase its scale of operations along with
improvement in profitability and better working capital management
remain the key rating sensitivities.
Initially established in July 2006 as a partnership firm 'Devanshi
Electricals' by Mr Pankaj Shah, Mr Pradip Shah and Ms Varsha Shah,
Devanshi Powers Limited was converted into a closely held public
limited company on October 4, 2012. DPL is involved in the
business of making copper wires and strips. Its operations are of
processing in nature consisting of drawing copper rods (raw
material) of size 8 mm into copper wire of various sizes upto 0.2
mm as per client's requirement.
The Shah family is into the business of copper products since 1982
at Jaipur, Rajasthan, through its group concern, M/s Shree Jagdish
Electrics & Engineering Works (SJEEW). The group has shifted its
base to Anand, Gujarat since 2006. The product portfolio of DPL
includes household, industrial & instrumentation wires and strips
finding applications in medical equipment wires,
telecommunication cables, aerial wires, audio wire, computer
wires, flattened wires, chemical, automotive electronics and
various other electrical appliances.
As per the audited results for FY13, DPL reported a total
operating income (TOI) of INR99.60 crore (FY12: INR76.71 crore)
and profit after tax of INR0.20 crore (FY12: INR3.54 crore). As
per the provisional results for 9MFY14, DPL registered a TOI of
INR54.63 crore.
GKB OPHTHALMICS: CRISIL Reaffirms 'D' Rating on INR231MM Loans
--------------------------------------------------------------
CRISIL's ratings on the bank facilities of GKB Ophthalmics Pvt Ltd
continue to reflect the instances of delays by GKB in servicing
its term debt obligations. The company had availed term loans to
setup production unit for high Index 1.6 plastic lenses. However,
the commencement of operations have been delayed by more than 2
years. The company also has weak liquidity driven by stretched
receivables mostly from its group entities.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 11 CRISIL D (Reaffirmed)
Cash Credit 40 CRISIL D (Reaffirmed)
Export Bill Purchase-
Discounting 20 CRISIL D (Reaffirmed)
Export Packing Credit 60 CRISIL D (Reaffirmed)
Letter of Credit 50 CRISIL D (Reaffirmed)
Term Loan 50 CRISIL D (Reaffirmed)
GKB also has modest scale of operations and working capital
intensive nature of activity. These weaknesses are partially
offset by the extensive experience of its management in the
ophthalmic lenses industry.
GKB was incorporated in 1981, and commenced operations in 1983.
The company is engaged in manufacturing of ophthalmic lenses such
as single vision glass lenses, single vision plastic lenses,
bifocal plastic lenses and photochromic plastic lenses. The
company is promoted by Mr. K.G. Gupta, along with his sons Mr.
Vikram Gupta and Mr. Gaurav Gupta.
GKB (standalone) reported net losses of INR11.9 million on net
sales of INR322.1 million for 2012-13 (refers to financial year,
April 1 to March 31), as against a PAT of INR17.1 million on net
sales of INR309.3 million for 2011-12.
HANUMAN COTTON: CARE Revises Rating on INR8.29cr Bank Loan to B+
----------------------------------------------------------------
CARE revises the rating assigned to the bank facilities of
Hanuman Cotton Industries.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 8.29 CARE B+ Revised from
Facilities CARE B /CARE A4
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 the
capital or the unsecured loans brought in by the partners in
addition to the financial performance and other relevant factors.
Rating Rationale
The revision in the rating assigned to the bank facilities of
Hanuman Cotton Industries primarily factors in the increase in the
scale of operations coupled with an improvement in
profitability and capital structure during FY13 (refers to the
period April 1 to March 31).
The rating however continues to remain constrained on account of
its presence in a fragmented cotton industry with limited value
addition and weak financial risk profile marked by thin
profitability, moderate capital structure and weak debt coverage
indicators. The rating is further constrained on account of
volatility associated with the raw material prices and
susceptibility to the change in the government policies.
The above-mentioned constraints continue to outweigh the benefits
derived from the promoter's experience in the cotton ginning
business and locational advantage in terms of proximity to the
cotton-growing region in Gujarat.
The ability of HCI to increase its scale of operations and move-up
in the cotton value chain thereby improving its overall financial
profile are the key rating sensitivities.
HCI was constituted in March 2006 as a partnership firm by the
Vekaria family based out of Amreli (Gujarat) by eight partners
with unequal profit and loss sharing agreement among them. HCI is
primarily engaged in cotton ginning & pressing activities with an
installed capacity of 10,886 Metric Tonnes Per Annum (MTPA) for
cotton bales, 18,380 MTPA for cotton seeds and oil-seed crushing
facility with a capacity of 1,381 MTPA as on March 31, 2013 at its
manufacturing facility located at Savarkundla in Amreli district
(Gujarat).
As per the audited results for FY13, HCI reported a Profit after
Tax (PAT) of INR0.05 crore (INR0.03 crore in FY12) on a Total
Operating Income (TOI) of INR39.32 crore (INR29.52 crore in FY12).
As per the provisional results for 9MFY14, HCI registered a TOI of
INR28 crore.
HANUMAN RICE: CRISIL Reaffirms 'B-' Rating on INR110MM Loans
------------------------------------------------------------
CRISIL's ratings on the bank facilities of Hanuman Rice & General
Mills continue to reflect HRM's weak financial risk profile,
marked by high gearing and weak debt protection measures, high
dependence on the monsoons, and susceptibility to adverse changes
in government policies. These rating weaknesses are partially
offset by the extensive experience of HRM's promoters in the rice
industry, along with healthy growth prospects for the basmati rice
industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 100 CRISIL B-/Stable (Reaffirmed)
Packing Credit 40 CRISIL A4 (Reaffirmed)
Proposed Long Term
Bank Loan Facility 10 CRISIL B-/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that HRM will benefit over the medium term from
the extensive industry experience of its promoters in the basmati
rice industry. The firm's financial risk profile is, however,
likely to remain weak due to its working-capital-intensive
operations. The outlook may be revised to 'Positive' if the firm
significantly improves its financial risk profile, supported by a
capital infusion from the promoters, or an improvement in its
scale of operations. Conversely, the outlook may be revised to
'Negative' if HRM's financial risk profile deteriorates because of
a significant increase in inventory, leading to large incremental
bank borrowings; or if the firm undertakes a debt-funded capital
expenditure programme.
Update
HRM reported a muted year-on-year top-line growth of around 4 per
cent at INR481 million in 2012-13 (refers to financial year, April
1 to March 31). The firm's turnover was around INR 355 million
during the first nine months of 2013-14. HRM is likely to report
revenues between INR450 and INR500 million in 2013-14.
HRM's operating profitability declined to 5.6 per cent in 2012-13,
vis-a-vis 8.3 per cent in 2012-13. The firm could maintain its
profitability over the medium term. Its operations continued to be
working-capital-intensive with gross current assets (GCAs) of 156
days in 2012-13, primarily driven by high inventory given the
seasonal availability of paddy. HRM procures paddy during the peak
Kharif season (October to February each year) for processing
requirements for the next six to eight months. Moreover, the firm
extends 60 to 90 days of credit to its customers and receives
credit of 15 to 25 days from its suppliers, resulting in large
working capital requirements. CRISIL believes that HRM's
operations will remain working-capital-intensive over the medium
term, driven by seasonal availability of key raw material leading
to high inventory.
HRM's financial risk profile continued to be weak with gearing of
5.73 times and a small net worth of INR31 million as on March 31,
2013; its interest coverage was 1.2 times, net cash accruals to
total debt (NCATD) ratio was 0.03 times in 2012-13. CRISIL
believes that HRM's financial risk profile will remain weak over
the medium term, given its extensive reliance on bank borrowings
to meet its working capital requirements, resulting from its low
cash accruals and the seasonal availability of paddy.
About the Firm
HRM was established in 1997 as a partnership firm. It is engaged
in milling and shelling rice at a plant in Cheeka (Haryana). The
firm is currently managed by Mr Raj Kumar.
HRM reported a book profit of INR2.4 million on net sales of
INR482 million for 2012-13, vis-a-vis a PAT of INR1.5 million on
net sales of INR464 million for 2011-12.
HARIKRISHNA COTGIN: CARE Cuts Rating on INR7.35cr Bank Loan to D
----------------------------------------------------------------
CARE revises the rating assigned to the bank facilities of
Harikrishna Cotgin Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 7.35 CARE D Revised from
Facilities CARE B
Rating Rationale
The revision in the rating assigned to the bank facilities of
Harikrishna Cotgin Private Limited was mainly on account of
instances of delay in debt servicing due to weak liquidity
position, working capital intensive nature of business operations
as well as seasonal nature of the business.
Establishing a clear debt servicing track record with an
improvement in the liquidity position are the key rating
sensitivities.
Rajkot-based (Gujarat), HCPL was incorporated in April 2007 by Mr
Manu Radadiya, Mr Maya Bhammar and Mr Arjan Bhammar. HCPL is
engaged in cotton ginning & pressing and oil extraction from
cottonseeds at its unit in Gariadhar, Rajkot. HCPL started its
commercial operations in FY09 (refers to the period April 1 to
March 31) with an installed capacity of 33 Metric Tonnes Per Day
(MTPD) for cotton bales. Furthermore, in December 2009, HCPL has
diversified into cottonseed oil extraction and established oil
mill section with three expellers having a production capacity of
6 MTPD.
As per the audited results for FY13, HCPL reported a net loss of
INR0.02 crore (PAT of INR0.00 crore in FY12) on a total operating
income of INR35.42 crore (INR31.98 crore in FY12).
As per the provisional results for 7MFY14, HCPL reported a total
operating income of INR6.90 crore and net loss of INR0.19 crore.
HEAVY METAL: CRISIL Reaffirms 'B+' Rating on INR60MM Cash Credit
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Heavy Metal Pipe Centre
continue to reflect the firm's below-average financial risk
profile marked by its small net worth, high total outside
liabilities to tangible net worth ratio and below-average debt
protection metrics. The rating also factors in the firm's large
working capital requirements, its small scale of operations and
its exposure to intense competition in steel trading business.
These rating weaknesses are partially offset by the extensive
experience of HMPC's promoters in the steel trading industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 10 CRISIL A4 (Reaffirmed)
Cash Credit 60 CRISIL B+/Stable (Reaffirmed)
Letter of Credit 60 CRISIL A4 (Reaffirmed)
Outlook: Stable
CRISIL believes that HMPC will continue to benefit over the medium
term from its promoters' extensive industry experience, and its
established relations with customers. The outlook may be revised
to 'Positive' if there is a substantial and sustained improvement
in the firm's revenues and profitability margins, or there is a
substantial improvement in its capital structure on the back of
equity infusion from its promoters. Conversely, the outlook may be
revised to 'Negative' if there is a steep decline in HMPC's
profitability margins, or there is a significant deterioration in
its capital structure on account of larger-than-expected working
capital requirements.
HMPC, a partnership firm based in Mumbai (Maharashtra), trades
various steel pipes and tubes, including carbon steel seamless
pipes, alloy steel pipes, and stainless steel seamless pipes. The
firm is owned by Mr. Dakshesh Shah and his family members.
HIRA COTTON: ICRA Assigns 'B+' Rating to INR9cr Bank Loans
----------------------------------------------------------
ICRA has assigned a long term rating of '[ICRA]B+' to the INR9.00
Crore fund based bank facilities of Hira Cotton Fibers.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Fund 7.00 [ICRA]B+ (Assigned)
Based-Cash
Credit
Long Term Fund 2.00 [ICRA]B+ (Assigned)
Based-Term Loans
The assigned rating is constrained on account of increased debt
levels subsequent to recently completed (Q2-FY2014) debt funded
up-gradation cum expansion capex, which coupled with increased
working capital requirements during the peak season will drive
high dependence upon bank debt in back drop of weak capitalization
of the proprietorship concern. While ICRA is cognizant of the fact
that aforementioned up-gradation capex will help the firm overcome
operational bottlenecks, which had driven steep decline in
production levels in FY2013; however, the extent of improvement in
revenues and profits derived from this remains to be seen and will
be key sensitivity for timely debt servicing in back drop of
augmented interest and repayment burden.
The rating is also constrained by HCF's small scale of operations
in a highly fragmented cotton ginning business, which coupled with
low value added and commoditized nature of product results in
modest profitability. Furthermore, it is noted that the ginning
business is marked by volatility in cash flows on account of
seasonal nature of business, and the profitability is vulnerable
to adverse movement in raw cotton prices, which are subject to
seasonality, agro climatic risks and government regulations. The
rating is however supported by satisfactory experience of the
partners in cotton ginning & trading business, and favorable
location in proximity to cotton producing belt of Maharashtra and
Madhya Pradesh.
Going forward, ability of the firm to achieve satisfactory growth
in revenues and profits, and prudently manage working capital
intensity of operations will determine the extent of funding
requirements; the funding mix used thereof will remain key rating
sensitivity.
Hira Cotton Fibers, a partnership firm promoted by Khandelwal
family of Sendhwa, is engaged in cotton ginning and pressing.
HCF's ginning unit based at Chopda in District Jalgaon
(Maharashtra) is equipped with 30 ginning machines and a bale
pressing machine, whereby it manufactures lint from kapas (raw
cotton) and undertakes pressing operation to produce cotton bales.
Cotton seed, which is by-product of ginning operation, is sold to
oil extraction units.
JAG VIDHYA: CRISIL Assigns 'B' Rating to INR5MM Cash Credit
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the bank loan
facilities of Jag Vidhya & Sons Resorts & Hotels LLP.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 5 CRISIL B/Stable
The rating reflects the geographic concentration in JVS's revenue
profile, and risks related to its start-up nature of operations.
These rating weaknesses are partially offset by the promoter's
extensive experience in the hospitality industry.
Outlook: Stable
CRISIL believes that JVS will benefit over the medium term from
its promoters' extensive hospitality experience. The outlook may
be revised to 'Positive' if the firm exhibits significant
improvement in its scale of operations and profitability backed by
sustained increase in occupancy levels and room tariffs while
maintaining its capital structure. Conversely, the outlook may be
revised to 'Negative' if there are lower-than-expected cash
accruals as a result of low occupancy levels or room tariffs, or
the company undertakes higher-than-expected debt-funded capital
expenditure programme leading to deterioration in its financial
risk profile.
JVS was established in Jan 2014. In February 2014, it acquired an
existing hotel property on Hingna Road (Nagpur) and re-branded the
same as hotel Heritage Embassy. Heritage Embassy is a three-star
property providing boarding and lodging facilities. It also has
restaurant-cum-bar, banquet, and an open air lawn. The management
is currently undertaking capital expenditure programme towards
renovation and capacity expansion of the acquired property, which
is expected to be completed by July 2014. Mr. Babjyot Singh
Khanduja and his brother, Mr. Gurpreet Singh Khanduja, the
promoters, oversee JVS's day-to-day activities.
KANKAI PIPES: CARE Assigns 'B' Rating to INR4.75cr Bank Loan
------------------------------------------------------------
CARE assigns 'CARE B' and 'CARE A4' ratings to the bank facilities
of Kankai Pipes & Fittings Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 4.75 CARE B Assigned
Facilities
Long-term/Short- 3.00 CARE B/CARE A4 Assigned
term Bank
Facilities
Rating Rationale
The ratings assigned to the bank facilities of Kankai Pipes &
Fittings Private Limited are primarily constrained on account of
its very short track record of operations in the fragmented and
competitive PVC pipe industry, susceptibility of operating margins
to fluctuations in the raw material price and project
stabilization and salability risk associated with the same.
The above constraints outweigh the benefits derived from the
experience of the promoters in the industry.
Timely stabilization of the manufacturing facilities and thereby
increasing the scale of operations through optimum capacity
utilization in light of the competitive nature of the industry are
the key rating sensitivities.
Rajkot-based (Gujarat) KPFPL was incorporated in October 2012 by
Mr Kalpesh Meghani, Mr Mahendra Talpada and Mr Dhaval Ghadiya.
KPFPL is engaged in the manufacturing of plastic pipes & fittings
(mainly cPVC pipes & fittings). KPFPL undertook implementation of
green field project for setting up plant for manufacturing of
plastic pipes & fittings with an annual installed capacity of
2,400 Metric Tons Per Annum (MTPA). The project was completed at a
total cost of INR8.51 crore which was funded through debt equity
ratio of 2.55:1 and the commercial production commenced from
August 2013. The products manufactured by KPFPL are used in
residential, commercial as well as industrial units.
KARISMAA FOUNDATIONS: CRISIL Keeps B+ Rating on INR73.5M Loans
-----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Karismaa Foundations
Pvt Ltd continue to reflect KFPL's moderate scale of operations in
highly fragmented construction industry and geographical
concentration in its revenue profile. These rating weaknesses are
partially offset by the company's moderate financial risk profile,
marked by moderate gearing and debt protection metrics, and its
promoters' extensive experience in the construction industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 20 CRISIL A4(Reaffirmed)
Long-Term Loan 8.5 CRISIL B+/Stable (Reaffirmed)
Overdraft Facility 65 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that KFPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if KFPL reports better-than-
expected revenues while maintaining its profitability, and
efficiently manages its working capital and order execution.
Conversely, the outlook may be revised to 'Negative' in case of
significant pressure on the company's working capital management
because of delays in its ongoing project and in realisation of
receivables, resulting in weakening of its financial risk profile,
particularly its liquidity.
Incorporated in 2010, KFPL undertakes turnkey contracts for
residential, commercial, and industrial projects, mainly for
private developers in Tamil Nadu.
KEI RAJAMAHENDRI: CARE Reaffirms 'D' Rating on INR10.9cr Loans
--------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Kei Rajamahendri Resorts Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 9.35 CARE D Re-affirmed
Facilities
Short-term Bank 1.55 CARE D Re-affirmed
Facilities
Rating Rationale
The ratings continue to remain constrained by the stretched
liquidity position resulting in delays in debts servicing.
Incorporated in November, 2003, KEI Rajamahendri Resorts P Ltd is
operating a three-star resort by the name of River Bay, located
nearby river Godavari at Rajahmundry, Andhra Pradesh (A.P). The
resort comprises 60 rooms, three restaurants, two banquet halls
with capacity of 600 pax and 200 pax, respectively, gymnasium,
swimming pool, spa centre and water amusement park. The
project was awarded to KRRPL in April 2004 by Andhra Pradesh
Tourism Development Corporation P Ltd (APTDC) on a Private
Partnership model (with a lease of land for 33 years) and
it commenced commercial operation on December 29, 2005.
The promoters of the company are Lt. JVVS Murthy, an Ex- Indian
Naval officer & Kamineni Equity Investments (belonging to Mrs
Shobana Kamineni & family) each holding 73% and 27%
shareholding respectively.
KIFCO INFRASTRUCTURE: CRISIL Puts 'B' Rating on INR80MM Loans
-------------------------------------------------------------
CRISIL has assigned its CRISIL B/Stable/CRISIL A4 ratings to the
bank facilities of Kifco Infrastructure Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 50 CRISIL B/Stable
Bank Guarantee 30 CRISIL A4
Cash Credit 30 CRISIL B/Stable
The ratings reflect Kifco's small scale of operations in the
highly fragmented civil construction industry, and geographic
concentration in its revenue profile. The ratings also factor in
the company's average financial risk profile, marked by moderate
gearing and average debt protection metrics. These rating
weaknesses are partially offset by the extensive experience of
Kifco's promoters in the civil construction industry.
Outlook: Stable
CRISIL believes that Kifco will continue to benefit over the
medium term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the company significantly
improves its scale of operations and operating profitability,
leading to higher-than-expected cash accruals. Conversely, the
outlook may be revised to 'Negative' if Kifco's operating margin
and topline decline, or its financial risk profile deteriorates,
most likely because of larger-than-expected debt-funded capital
expenditure, or if its working capital cycle increases, leading to
pressure on its liquidity.
Kifco is engaged in contracting works, providing water management
solutions such as laying of pipelines, and construction of water
treatment plants and elevated storage reservoirs for municipal
corporations/local bodies in Gujarat. The company's directors are
Mr. Divyang Mehta and Mr. Subhash Narayan Mishra.
Kifco reported a net profit of INR0.9 million on net sales
INR140.7 million for 2012-13 (refers to financial year, April 1 to
March 31), as against a net profit of INR0.02 million on net sales
of INR67.2 million for 2011-12.
LOGON INDIA: CRISIL Reaffirms 'B' Rating on INR80MM Loan
--------------------------------------------------------
CRISIL's ratings on the bank facilities of Logon India
Infrastructure Pvt Ltd reflect its modest scale of operations in
the intensely competitive civil construction segment and its
below-average financial risk profile marked by a weak capital
structure. These rating weaknesses are partially offset by the
extensive industry experience of Logon's management in the civil
construction industry and its healthy order book.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 200 CRISIL A4
Secured Overdraft
Facility 80 CRISIL B/Stable
CRISIL had downgraded its ratings on the bank loan facilities of
Logon to 'CRISIL B/Stable/CRISIL A4' from 'CRISIL BB-
/Stable/CRISIL A4+' vide the Rating Rationale dated February 19,
2014. The rating downgrade reflects significant weakening in
Logon's liquidity on account of stretch in receivables. The
company's debtors were at 176 days as on March 31, 2013, against
127 days as on March 31, 2012. Consequently, its bank lines were
utilised extensively and were frequently overdrawn. However, the
company's net cash accruals will be adequate to meet its term debt
obligations over the medium term.
The ratings reflect Logon's modest scale of operations in the
intensely competitive civil construction segment and its below-
average financial risk profile marked by a weak capital structure.
These rating weaknesses are partially offset by the extensive
industry experience of Logon's management in the civil
construction industry and its healthy order book.
Outlook: Stable
CRISIL believes that Logon will benefit over the medium term from
its management's industry experience, which will support the
company's project execution capabilities, and its healthy order
book, which provides the company with revenue visibility. The
outlook may be revised to 'Positive' if Logon improves its scale
of operations and operating profitability on a sustained basis,
leading to an improvement in its capital structure. Conversely,
the outlook may be revised to 'Negative' in case of weakening in
Logon's relationship with its key clients or delays in project
execution leading to lower-than-expected revenue growth. The
outlook may also be revised to 'Negative' if the company
undertakes any larger-than-expected debt-funded capital
expenditure programme, or if its receivables are further
stretched, resulting in deterioration in its financial risk
profile.
Established in 2011, Logon undertakes civil construction of
warehouses, residential projects, and roads for various
infrastructure companies on a sub-contract basis. The company is
promoted by Mr. Daljit Singh Chadda and Mr. P. Swaminathan.
Logon reported a profit after tax (PAT) of INR10 million on
operating revenue of INR1.2 billion for 2012-13 (refers to
financial year, April 1 to March 31), against a PAT of INR11
million on operating revenue of INR896 million for 2011-12.
LOKESH MACHINES: CARE Assigns 'B-' Rating to INR103cr Bank Loan
---------------------------------------------------------------
CARE assigns 'CARE B-' and 'CARE A4' ratings to the bank
facilities of Lokesh Machines Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 103 CARE B- Assigned
Facilities
Short-term Bank 27 CARE A4 Assigned
Facilities
Rating Rationale
The ratings assigned to the bank facilities of Lokesh Machines
Limited are constrained by the stretched operating cycle with
working capital intensive nature of operations, revenue
concentration from few clients, cyclical nature of the end user
industry, volatility in raw material prices and increase in
leverage ratios over the last three years ending FY13 (refers to
the period April 1 to March 31). The ratings, however, derive
strength from the experienced promoters and management team, long
track record of operation and long term relationship with key
clients.
The ability of the company to increase its scale of operation,
profit level and cash accruals and manage its operating cycle
efficiently will be the key rating sensitivities.
Lokesh Machines Ltd, incorporated in December 1983, promoted by Mr
Lokeswara Rao, commenced operations initially by doing job works
for Hindustan Machine Tools Limited (HMT) and later entered into
the machinery segment. The company has six manufacturing units
(five in Hyderabad and one in Pune) with an installed capacity of
600 machines per annum. LML operations can be segregated into
machines and components division. Under machinery division,
LML manufactures special purpose machines and general purpose
machines. Under the component division, the company manufactures
automobile components, viz, cylinder heads and cylinder blocks and
also executes job work for automobile manufacturers like Mahindra
& Mahindra and Ashok Leyland.
LML registered a PAT of INR1.06 crore (INR7.60 crore in FY12) on a
total operating income of INR140.61 crore in FY13 (INR164.51 crore
in FY12). In 9MFY14 (UA), LML registered a PAT of INR0.28 crore on
total operating income of INR81.54 crore.
MAA GAURI: ICRA Reaffirms 'B+' Rating on INR2.25cr Loan
-------------------------------------------------------
ICRA has reaffirmed the long-term rating of '[ICRA]B+' for INR2.25
crore fund based facilities of Maa Gauri Timbers Pvt. Ltd. ICRA
has also reaffirmed the short term rating of [ICRA]A4 for INR7.75
crore non fund based facilities of MGTPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 2.25 [ICRA]B+ Reaffirmed
Letter of Credit 7.75 [ICRA]A4 Reaffirmed
The rating reaffirmation factors in highly competitive nature of
timber industry characterized by presence of numerous organized
and unorganized players due to which the revenues and
profitability of the company has remained modest. Further, entire
timber requirement is met through imports (in USD) and the import
payables are not hedged by the company exposing the company to
exchange rate fluctuations. The ratings are also constrained by
moderate financial profile of the company characterized by high
total outside liabilities to tangible net worth (TOL/TNW) ratio
and moderate debt protection metrics with OPBDITA/Interest of 1.93
times and NCA/Debt of 9% for FY2013. However, the ratings derive
comfort from the long track record of promoters in the timber
trading business and favorable logistics of the company on account
of presence of branch office near Kandla port.
Maa Gauri Timbers Private Limited is a privately owned company
that was incorporated in the year 2010. The company imports
hardwood logs from various countries like Malaysia, New Zealand
and Africa. The variety of timber imported comprises mainly
'Meranti', 'MRTX', 'KAPX', 'Mersawa' and 'Kapur' which are mainly
used in furniture making and construction work. The company
operates through its offices located in Karnal (Haryana), Rajpura
(Punjab) and Gandhidham (Gujarat) and essentially caters to timber
demand of Northern India.
Recent Results
The company reported a net profit after tax of INR0.08 crore on an
operating income of INR37.63 crore in FY2013 as against net profit
of INR0.08 crore on an operating income of INR21.18 crore in
FY2012.
MAHESH RICE: ICRA Reaffirms 'B' Rating on INR12cr FB Limits
-----------------------------------------------------------
ICRA has reaffirmed the long term rating at '[ICRA]B' for the
INR12.00 crore fund based limits of Mahesh Rice Mill.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based limits 12.00 [ICRA]B (reaffirmed)
The rating reaffirmation factors in MRM's weak financial profile,
reflected by low profitability metrics, high gearing and
consequently weak coverage indicators. The rating also takes into
account high intensity of competition in the industry and agro
climatic risks, which can affect the availability of paddy in
adverse weather conditions. The rating, however favorably takes
into account long standing experience of promoters in rice
industry and the proximity of the mill to major rice growing area
which results in easy availability of paddy.
Mahesh Rice Mill was established in 1993 as partnership firm. The
Company is primarily engaged in the milling of Rice with an
installed capacity of 3 Tons per hour which is located in Taraori,
Karnal District (Haryana). The company has sortex plant with
capacity of 3 tons/hour. The company is professionally managed by
Mr. Mukesh Goel.
Recent Results
During the financial year 2012-13, the firm reported a profit
after tax (PAT) of INR0.05 crore on an operating income of
INR29.46 crore as against PAT of INR0.02 crore on an operating
income of INR25.13 crore in 2011-12.
MANIL JEWELLERS: CARE Reaffirms B+ Rating on INR13.5cr Bank Loan
----------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Manil Jewellers.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 13.50 CARE B+ Reaffirmed
Facilities
The rating assigned by CARE is based on the capital deployed by
the partner and the financial strength of the firm at present. The
rating may undergo change in case of the withdrawal of capital or
the unsecured loans brought in by the partner in addition to the
financial performance and other relevant factors.
Rating Rationale
The rating assigned to the bank facilities of Manil Jewellers
continues to be constrained by the relatively modest scale of
operations, working capital intensive nature of operation due to
stretched operating cycle, leveraged capital structure and weak
debt coverage indicators. The rating further continues to be
constrained by its presence in a highly fragmented industry and
constitution of the entity as a partnership firm.
The above constraints are partially offset by the strengths
derived from the experienced management and financial support in
the past.
The ability of the entity to improve the overall scale of
operations coupled with efficient management of working capital
cycle amidst the intense competition are the key rating
sensitivities.
Established as a partnership firm in 2008, Manil Jewellers (MJ) is
engaged in the manufacturing and trading of hallmarked certified
antique and ethnic gold jewellery.
The manufacturing facility of MJ is located at Zaveri Bazar,
Mumbai, with an installed capacity of 25 kg/pm as on March 31,
2013 (vis-a-vis 20 kg/pm as on March 31, 2012) and utilization of
FY13 (refers to the period April 1 to March 31) was around 98%. MJ
procures gold from the bullion traders in the domestic market and
the revenue is also entirely earned from the domestic market.
During FY13, MJ reported a total operating income of INR73.02
crore (vis-a-vis INR 57.93 crore in FY12) and PAT of INR0.02 crore
(vis-a-vis INR0.11 crore in FY12). Furthermore till 9MFY14, MJ has
posted a total income of INR64.35 crore.
MY CAR: CRISIL Reaffirms 'B+' Rating on INR330MM Loans
------------------------------------------------------
CRISIL's ratings on My Car (Pune) Pvt Ltd's bank facilities
continue to reflect MCPPL's below-average financial risk profile,
marked by a modest net worth, high gearing, and moderate debt
protection metrics. These rating weaknesses are partially offset
by its promoters' extensive experience in the automobile
dealership business and the funding support that it receives from
them. The ratings also factor in the company's moderately
diversified revenue profile, as it deals in both passenger and
commercial vehicles (CV), besides second-hand vehicles. It has
also forayed in to cell phone sales.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 20 CRISIL A4 (Reaffirmed)
Cash Credit 60 CRISIL B+/Stable (Reaffirmed)
Inventory Funding
Facility 160 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 36.2 CRISIL B+/Stable (Reaffirmed)
Term Loan 73.8 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that MCPPL will continue to benefit from its
promoters' extensive experience in the automobile dealership
business and its diversified revenue profile. The outlook may be
revised to 'Positive' in case of sustainable improvement in the
company's financial risk profile and liquidity backed by stronger-
than-expected accretion to reserves or equity infusion by
promoters. Conversely, the outlook may be revised to 'Negative' in
case of more-than-expected decline in revenues or profitability,
larger-than-expected increase in working capital requirements or a
large, debt-funded capital expenditure programme.
Update
The company's revenues are expected to decline in 2013-14 (refers
to financial year, April 1 to March 31) with the hiving off of the
light commercial vehicle (LCV) segment, and poor sales in the
passenger and CV segments. The LCV segment, which contributed
about INR523 million to MCPPL's revenues in 2012-13, was hived-off
into another company in 2013-14 owing to current LCV sold for
Ashok Leyland Ltd were competing with other brand of Maruti Suzuki
India Ltd(rated 'CRISIL AAA/Stable/CRISIL A1+'). Moreover, the
sales at the passenger and CV segments declined by 6 to 7 per cent
and 15 to 20 per cent, respectively, till December 31, 2013. This
will be partially offset by a healthy volume growth in second-hand
vehicles, and higher cell-phone sales; from under INR10 million of
revenues in 2011-12, the cell-phone business is expected to
contribute over INR300 million in 2013-14. Overall, though the
revenues are expected to decline by 7 to 8 per cent year-on-year,
excluding LCV sales in 2012-13 revenue, they are expected to
register a 7 to 8 per cent growth to touch INR3.0 billion in 2013-
14.
The company's financial risk profile remains constrained marked by
its aggressive total outside liabilities to tangible net worth
(TOLTNW) ratio of 3.5 times estimated as on March 31, 2014 and
weak interest coverage ratio of 1.5 times for 2013-14. This is
primarily owing to the working capital intensity of its
operations, leading to heavy reliance on debt and full utilisation
of bank lines. However, its financial risk profile and liquidity
are supported by its moderate net worth of about INR145 million
(estimated as on March 31, 2014), and unsecured loans of about
INR600 million from promoters as on March 31, 2013. MCPPL is
expected to generate net cash accruals of about INR20 million to
INR25 million and INR25 million to INR30 million annually in 2013-
14 and 2014-15, respectively, which are more than adequate to
cover its annual obligations of INR13 million maturing during this
period.
MCPPL has reported a profit after tax (PAT) of INR11 million on
net sales of INR3.6 billion for 2012-13, against a PAT of INR6
million on net sales of INR2 billion for 2011-12.
Incorporated in 2005, MCPPL is an authorised dealer of MSIL and
Ashok Leyland Ltd vehicles in Pune (Maharashtra). It also deals in
second hand vehicles and cell phones. The company is promoted by
Mr. Ajay Garg and his wife, Mrs. Megha Garg.
N. K. BHOJANI: CRISIL Reaffirms 'B+' Rating on INR180MM Loans
-------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of N. K. Bhojani
Pvt Ltd continues to reflect NKBPL's working-capital-intensive and
moderate scale of operations in the highly competitive steel
industry. These rating weaknesses are partially offset by the
extensive industry experience of the company's promoters and its
above-average financial risk profile, marked by a healthy capital
structure and moderate debt protection metrics.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 10 CRISIL A4 (Reaffirmed)
Cash Credit 175 CRISIL B+/Stable (Reaffirmed)
Export Packing
Credit 80 CRISIL A4 (Reaffirmed)
Letter of Credit 40 CRISIL A4 (Reaffirmed)
Proposed Long Term
Bank Loan Facility 5 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that NKBPL will maintain its above-average
financial profile, supported by moderate net cash accruals, and
continue to benefit from the extensive industry experience of its
promoters, over the medium term. The outlook may be revised to
'Positive' in case of a substantial increase in the company's
revenues and profitability or an improvement in its working
capital management, leading to significant improvement in its
liquidity. Conversely, the outlook may be revised to 'Negative' if
NKBPL reports lower-than-expected revenues or profitability, if it
undertakes a large debt-funded capital expenditure programme
adversely affecting its capital structure, or if its working
capital cycle is stretched.
Update
NKBPL's operating revenues declined to around INR606.5 million in
2012-13 (refers to financial year, April 1 to March 31) from
around INR745.9 million in 2011-12 on account of lower sales of
iron ore fines during the year. Its operating margin also declined
to 7.1 per cent in 2012-13 as against 6.9 per cent in 2011-12. For
2013-14, the company is expected to report a turnover of INR600
million to INR620 million.
NKBPL's working capital cycle remained stretched, as reflected in
its gross current assets of 254 days as on March 31, 2013, leading
to average bank limit utilisation of 97.8 per cent during the nine
months through December 2013. The company continues to maintain an
inventory of around two months, while it is required to make
advance payments to major suppliers. The local traders are paid
within 20 to 30 days leading to low creditors of 13 days as on
March 31, 2013. NKBPL had a large inventory of 72 days as on
March 31, 2013, because of higher orders received in the last
quarter of the year. Delays in payments from its customers and the
competitive nature of the industry lead to a stretch in the
company's receivables as reflected in its debtors of 131 days as
on March 31, 2013.
NKBPL's financial risk profile remained healthy, marked by a
moderate net worth of around INR267.4 million as on March 31,
2013, low gearing, and moderate debt protection metrics. The
company's gearing has remained stable at 0.58 to 0.68 times in the
three years ended March 31, 2013. NKBPL's debt protection metrics
were also moderate, with an interest coverage ratio of around 1.7
times and net cash accruals to total debt ratio of around 10 per
cent in 2012-13. NKBPL generated net cash accruals of INR16.2
million in 2012-13, against which it had no term debt obligations.
Incorporated in 1996, NKBPL manufactures steel ingots. The company
also undertakes iron ore mining, and has a dealership contract
with Larsen & Toubro Ltd for spares sales and service. NKBPL has
its manufacturing facilities at Rugudi (Odisha); it is managed by
Mr. N K Bhojani.
NISAN ELECTRICALS: CARE Reaffirms 'B+' Rating on INR12.35cr Loan
----------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Nisan Electricals (India) Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 12.35 CARE B+ Reaffirmed
Facilities
Rating Rationale
The rating assigned to the bank facilities of Nisan Electricals
(India) Private Limited continues to remain constrained on account
of its weak financial profile marked by net losses in FY13 (refers
to the period April 1 to March 31), leveraged capital structure
and weak liquidity indicators. Furthermore, the rating continues
to remain constrained on account of its nascent stage of
operations in the fragmented Compact Fluorescent Lamp (CFL)
industry, high exposure to foreign exchange rate fluctuations and
working capital intensive nature of operations.
The rating, however, continues to take comfort from the benefits
derived from the wide experience of the promoters and favourable
growth prospects of the CFL industry backed by support from the
government. The rating also positively factors in the gradual
increase in the scale of operations and the consistent financial
support from the promoters by way of infusion of unsecured loans
to support the operations of the company.
The ability of NEIPL to increase its scale of operations along
with improvement in the financial risk profile remain the key
rating sensitivities.
Ahmedabad-based ISO 9001, ISO 14001 and OHSAS 19001 certified
Compact Fluorescent Lamp (CFL) manufacturer, NEIPL was originally
established as a partnership firm in 2009 as "Nisan Electricals".
Subsequently, the firm was converted into a private limited
company on May 16, 2011.
Mr Shailesh Hirpara, Mr Suresh Hirpara and Mr Arvind Hirpara are
the key promoters of NEIPL. NEIPL operates from its sole
manufacturing facilities located at Ahmedabad with an installed
capacity to manufacture 22,000 CFL lamps as on March 31, 2013.
As per the audited results for FY13, NEIPL reported a total
operating income (TOI) of INR7.42 crore (FY12: INR2.04 crore) and
a loss of INR3.18 crore (FY12: loss of INR2.35 crore). As per the
provisional results for 9MFY14, NEIPL registered a TOI of INR8.03
crore.
OSWAL PSYLLIUM: CARE Assigns 'B' Rating to INR5.42cr Bank Loan
--------------------------------------------------------------
CARE assigns 'CARE B' rating to the bank facilities of Oswal
Psyllium Exports.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 5.42 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 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 rating assigned to the bank facilities of Oswal Psyllium
Exports (OPE) is primarily constrained on account of its low net-
worth base, thin profitability, highly leveraged capital
structure, weak debt coverage indicators and working capital
intensive nature of operations. The rating is further
constrained on account of exposure to volatility in raw material
prices and its presence in a highly fragmented & seasonal
industry.
The rating, however, favorably takes into account the vast
experience of the partners in the industry.
The ability of OPE to increase its scale of operations and improve
its profitability & capital structure by way of efficient working
capital management will be the key rating sensitivities.
Established in 2007, Neemuch-based (Madhya Pradesh) OPE is a
partnership firm engaged in processing as well as trading of agro
commodities. The main products of OPE are psyllium husk and
powder. It had an installed capacity of 3,000 metric tonne per
annum (MTPA) as on March 31, 2013. Currently, trading activities
constitute almost 65% of its entire revenue. OPE is one of the
very few units engaged in the psyllium processing activities in
Madhya Pradesh.
During FY13 (refers to the period April 1 to March 31), OPE
reported a PAT of INR0.12 crore on a Total Operating Income (TOI)
of INR25.69 crore as against a PAT of INR0.10 crore on a TOI of
INR13.96 crore in FY12.
PINNACLE TELESERVICES: CARE Rates INR6.74cr Bank Loan at 'C'
------------------------------------------------------------
CARE assigns 'CARE C' and 'CARE A4' ratings to the bank facilities
of Pinnacle Teleservices Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 6.74 CARE C Assigned
Facilities
Short-term Bank 2.10 CARE A4 Assigned
Facilities
Rating Rationale
The ratings assigned to the bank facilities of Pinnacle
Teleservices Private Limited are constrained on account of its
highly stressed liquidity profile with over-utilization of bank
limits, leveraged capital structure, high receivables with
elongated operating cycle, modest scale of operations, service
concentration risk and risks related to government regulations.
The ratings are, however, underpinned by the technical experience
of the promoters, healthy profitability margins and a
geographically diversified customer base.
The ability of the company to improve its working capital
management efficiently and to improve the scale of operations are
the key rating sensitivities.
Based in Nagpur, Pinnacle Teleservices Private Limited (PTPL) was
incorporated in April 2008 as a telecom-services provider. PTPL is
engaged in the business of providing bulk Short Messaging
Service (SMS) aggregator and other value-added services like voice
services, radio frequency identification and tracking services.
The company provides a wide array of Cellular IT solutions
classified into five categories, viz, data services (web feedback
services, trade confirmation services, etc), voice services
(inbound and outbound), R-Fi, Blue Sanchar (distribution of
electronic mobile content to mobile phones) and Ezee Track
(tracking solutions). The company caters to mobile
network operators, mobile services providers and all other
industries spanning entertainment, industrial, media, education,
insurance, financial institution and others.
Promoted by Mr Ashish Srivastava, Mr Amit Srivastava, Mr Anurag
Shrivastava and Mr Rajesh Banerjee, PTPL has three regional
offices (Gurgaon, Mumbai and Ahmadabad) and two branch
offices (Pune and Mohali).
During FY13 (refers to the period April 1 to March 31), PTPL
earned a PAT of INR1.51 crore on a total operating income of
INR21.56 crore against PAT of INR0.87 crore on a total operating
income of INR18.28 crore in FY12.
PRAKASH ROAD: CRISIL Reaffirms 'C' Rating on INR120MM Loans
-----------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL C/CRISIL A4' ratings to the bank
loan facility of Prakash Road Lines Corporation Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 10 CRISIL A4 (Reaffirmed)
Cash Credit 100 CRISIL C (Reaffirmed)
Term Loan 20 CRISIL C (Reaffirmed)
The ratings continues to reflect the non-servicing of its
equipment finance loan (not rated by CRISIL). The rating also
reflects the company's working-capital-intensive operations and
high customer concentration in its revenue profile. These rating
weaknesses are partially offset by the extensive experience of
PRLCL's promoter in material handling and transportation business.
PRLCL was established in 1971 as partnership firm by Mr.
Vishwanath Sureka. The company is based in Kolkata (West Bengal).
In 1987, the firm was reconstituted as a private limited company.
PRLCL is engaged in material handling and transportation,
primarily for the cement sector.
PRAMANIK RETAIL: ICRA Suspends 'D' Rating on INR55.57cr Loans
-------------------------------------------------------------
ICRA has suspended '[ICRA]D' rating assigned to the INR55.57 crore
long term loans & working capital facilities of Pramanik Retail
Private Limited. The suspension follows ICRA's inability to carry
out a rating surveillance in the absence of the requisite
information from the company.
According to ICRA's suspension policy, ICRA may suspend any rating
outstanding if in its opinion there is insufficient information to
assess such rating during the surveillance exercise
RIDHAM SYNTHETICS: CRISIL Reaffirms B+ Rating on INR200MM Loans
---------------------------------------------------------------
CRISIL's rating on the bank facilities of Ridham Synthetics
Private Limited continue to reflect RSPL's modest scale of
operations in the highly competitive fabric processing industry,
and working capital intensive nature of operations. These rating
weaknesses are partially offset by extensive experience of RSPL's
promoters in the textile industry and average financial risk
profile marked by moderate gearing and comfortable debt protection
metrics.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 90 CRISIL B+/Stable (Reaffirmed)
Mortgage Loan
Facility 20 CRISIL B+/Stable (Reaffirmed)
Term Loan 90 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that RSPL will benefit from its promoters' long
standing experience in the textile industry. The outlook may be
revised to 'Positive' in case RSPL records a significant and
sustained improvement in its revenues and margins while improving
its capital structure. Conversely, the outlook may be revised to
'Negative' in case the company's revenues or profitability
declines significantly, or if its financial risk profile
deteriorates due to lengthening of its working capital cycle.
Update
RSPL reported operating income of INR383.5 million in 2012-13
(refers to financial year, April 1 to March 31), an increase by 18
per cent over that of 2011-12. The company has reported sales of
around INR 310 million during April to December 2013 and is
expected to achieve revenues of around INR 420 million in 2013-14.
The operating margins increased to 15.9 per cent during 2012-13
from 7.3 per cent in 2011-12. This was partly on account of
shifting of its manufacturing unit, leading to savings in
transportation and power costs; and partly on account of change in
revenue mix. The revenues from direct fabric sales, which gives
higher margins compared to fabric processing, increased from 39
per cent in 2011-12 to 59 percent in 2012-13. The margins are
expected to be around the same levels during the near term. RSPL's
working capital requirement increased from gross current asset
(GCA) days of 99 days for 2011-12 to over 164 days for 2012-13.
This was due to higher raw material inventory maintained due to
change in revenue mix.
RSPL's net worth increased from INR78.4 million as on March 31,
2012 to INR102.7 million as on March 31, 2013, due to accretion to
reserves. The gearing stood at 1.81 times as on March 31, 2013.
The debt comprised of term loans of INR 114 million and working
capital borrowings of INR 71 million as on March 31, 2013.The
promoters have infused unsecured loans of INR 87.7 million, which
have been treated as neither debt nor equity. The gearing is
expected to improve over the medium term due to increase in net
worth and repayment of term loans.The debt protection metrics
remained moderate for 2012-13 with net cash accruals to debt and
interest coverage ratios at 0.11 times and 2.92 times
respectively; and are expected to remain around similar levels
over the medium term.
RSPL's cash credit facility has been utilized at an average of 90
per cent for 12 months ending November 30, 2013. RSPL is expected
to generate cash accruals of INR 40 million in 2014-15, against
term debt obligations of INR19.6 million. The company had a
current ratio of 0.96 times as on March 31, 2013 due to high
current term loan payments.
RSPL reported a profit after tax (PAT) of INR20.7 million on net
sales of INR382.9 million for 2012-13, as against a PAT of INR 4.3
million on net sales of INR325.3 million for 2011-12.
Incorporated in 1991, RSPL was promoted by Mr. Kamlesh Bafna and
Mr. Chetan Bafna. The company is engaged in manufacturing and
processing of fabrics. The company's manufacturing unit is located
at Dombivili, Mumbai.
SARVODAYA SUITINGS: CARE Reaffirms 'C' Rating on INR48.43cr Loan
----------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Sarvodaya Suitings Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 48.43 CARE C Reaffirmed
Facilities
Short-term Bank
Facilities 8.00 CARE A4 Reaffirmed
Rating Rationale
The ratings continue to remain constrained on account of the weak
financial risk profile of Sarvodaya Suitings Limited due to
significant losses from derivative contracts incurred in the
past. The ratings are further constrained by the non-adherence to
the conditions of Memorandum of Understanding (MoU) reached with
the ICICI Bank which might lead to revival of old legal
proceedings against SSL, its modest scale of operations as well as
vulnerability of margins to volatile raw material prices in a
highly fragmented and competitive industry.
The ratings, however, favourably factor in the decline in
contingent liabilities following the settlement reached with ICICI
Bank, experience of the promoters in the textile industry,
established operations of SSL in the textile weaving and trading
business and benefits derived from its presence in the textile
cluster of Bhilwara.
Improvement in the overall financial risk profile coupled with
increase in the scale of operations and adherence to the
conditions of the settlement reached with the lenders are the key
rating sensitivities.
Incorporated in May 1994 and promoted by Mr Mahaveer Prasad Jain,
SSL is a Bhilwara-based (Rajasthan) company engaged in blended
fabric manufacturing. SSL had 105 sulzer and 24 airjet
looms as on March 31, 2013. SSL has a good presence in the export
market with about 40% of its total sales coming from exports in
FY13 (refers to the period April 01 to March 31). SSL is also
engaged in the generation of wind power from its two 350 Kilo Watt
(KW) Wind Turbine Generators (WTG) located at Jaisalmer,
Rajasthan.
During FY13, SSL reported a PAT of INR1.22 crore (FY12: net loss
of INR2.10 crore) on a total operating income of INR159.14 crore
(FY12: INR159.42 crore). As per the provisional results for
H1FY14, SSL registered a total operating income of INR76.71 crore
with PBT of INR1.63 crore.
SATYA POWER: ICRA Reaffirms 'B+' Rating on INR10cr Cash Credit
--------------------------------------------------------------
ICRA has re-affirmed the '[ICRA]B+' rating assigned to the
INR10.00 crore cash credit facility of Satya Power & Ispat
Limited. ICRA has also re-affirmed the '[ICRA]A4' rating to the
INR5.00 crore non-fund based bank facilities of SPIL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits 10.00 [ICRA]B+ reaffirmed
(Cash Credit)
Non Fund Based 5.00 [ICRA]A4 reaffirmed
Limits (Letter
of Credit)
Non Fund Based (3.00) [ICRA]A4 reaffirmed
Limits (Bank
Guarantee)
The reaffirmation of the ratings take into account the ongoing
weakness in the steel industry, sub-optimal level of capacity
utilization, which resulted in small scale of current operations
as also reflected by stagnant top-line in 2012-13 and the lack of
vertical integration in the company's stand-alone sponge iron
manufacturing business, making margins sensitive to input and
output prices. The ratings also factor in SPIL's weak financial
profile characterized by depressed coverage indicators, although
some improvement was noticed in the recent past and a highly
working capital intensive nature of operations, which in turn
impacts its liquidity position.
The ratings, however, consider the experience of the promoters in
the steel industry, the location of the manufacturing unit in
proximity to raw material sources that keeps inward freight costs
under control, and a comfortable capital structure of the company.
While assigning the ratings, ICRA has also considered the business
risk profile of SPIL's group entity, Agrawal Infrabuild Private
Limited, which is rated at [ICRA]BBB- (stable) and [ICRA]A3),
since both the companies operate under a common management.
Incorporated in 2003, SPIL has been engaged in the manufacturing
of sponge iron. The company has two kilns with an installed
capacity of 60,000 metric tonne per annum (MTPA) for manufacturing
of sponge iron. The manufacturing facility of the company is
located at Bilaspur, Chhattisgarh. Agrawal Infrabuild Private
Limited, a company under the same management, is engaged in the
construction and maintenance of roads for various Government
departments in Chhattisgarh and is rated at [ICRA]BBB- (stable)
and [ICRA]A3.
Recent Results
During the first ten months of 2013-14, the company has reported
an operating income of INR32.10 crore (provisional). The company
reported a net profit of INR1.22 crore on an operating income of
INR42.84 crore in 2012-13.
SHANKAR RICE: ICRA Reaffirms 'B' Rating on INR9.76cr Loans
----------------------------------------------------------
ICRA has reaffirmed the long term rating of '[ICRA]B' for INR8.43
crore fund based limits and INR1.33 crore proposed limits of
Shankar Rice & General Mills.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based
Facilities 8.43 [ICRA]B (reaffirmed)
Proposed limits 1.33 [ICRA]B (reaffirmed)
The rating reaffirmation factors in SRGM's weak financial profile,
reflected by low profitability metrics, high gearing and
consequently weak debt coverage indicators. The rating also takes
into account high intensity of competition in the industry and
agro climatic risks, which can affect the availability of paddy in
adverse weather conditions. The rating however, favorably takes
into account long standing experience of promoters, expected
benefits arising out of established client relationships of its
group companies in rice industry and proximity of the mill to
major rice growing area which results in easy availability of
paddy.
Shankar Rice & General Mills was established in 2000 as
partnership firm. The Firm is primarily engaged in the milling of
Rice with an installed capacity of 18 MT/hour which is situated in
Moga (Punjab). The firm has 3 sortex plants with capacity of 3
tons/hour.
Recent Results
During the financial year 2012-13, the firm reported a profit
after tax (PAT) of INR0.28 crore on an operating income of
INR44.39 crore as against PAT of INR0.25 crore on an operating
income of INR30.31 crore in 2011-12.
SHREE RAMRAJYA: CARE Revises Rating on INR15.52cr Loan to 'B+'
--------------------------------------------------------------
CARE revises/reaffirms rating assigned to the bank facilities of
Shree Ramrajya Cotex Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 15.52 CARE B+ Revised from
Facilities CARE B
Short-term Bank
Facilities 2.28 CARE A4 Reaffirmed
Rating Rationale
The revision in the long-term rating assigned to the bank
facilities of Shree Ramrajya Cotex Private Limited is primarily on
account of improvement in financial risk profile marked by healthy
growth in turnover and cash accruals, improvement in capital
structure and debt coverage indicators during FY13 (refers to the
period April 1 to March 31).
The ratings of the bank facilities of SRCPL continue to remain
constrained due to the thin profit margins and highly leveraged
capital structure. The ratings further continue to remain
constrained on account of its presence in the highly competitive
and fragmented cotton ginning business with limited value addition
and volatility associated with raw material (cotton) prices.
The ratings, however, continue to take into account the wide
experience of the promoters in the cotton ginning business and
proximity to the cotton-producing region of Gujarat.
SRCPL's ability to move upward in the textile value chain along-
with improvement in profit margins, capital structure and debt
coverage indicators remain the key rating sensitivities.
SRCPL was incorporated in August 2007 by the Selani family based
at Gondal (Gujarat). Mr Anil Selani, managing director, is
actively involved in the business and manages the routine
operations. SRCPL is engaged in cotton ginning and pressing and
has an installed capacity of 12,800 Metric Tonnes Per Annum (MTPA)
for cotton bales and 24,000 MTPA for cotton seeds as on March 31,
2013, at its sole manufacturing facility located at Gondal. The
promoters of SRCPL (ie, Selani family) have also promoted Raghuvir
Cotex Private Limited (RCPL; rated 'CARE B'/'CARE A4') which is
also engaged in the same business.
During FY13, SRCPL reported a TOI of INR102.08 crore and PAT of
INR0.30 crore as against a TOI of INR69.48 crore and PAT of
INR0.08 crore during FY12. During 10MFY14, SRCPL has reported a
TOI of INR72 crore.
SHRI RAM: CARE Reaffirms 'B+' Rating on INR18.75cr Bank Loan
------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Shri Ram Solvex.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank
Facilities 18.75 CARE B+ Reaffirmed
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 facilities of Shri Ram Solvex
continues to remain constrained by its weak financial risk profile
characterized by its thin profitability margins, leveraged capital
structure and weak debt coverage indicators along with working
capital intensive nature of operations. The rating is further
constrained by the inherent risk associated with the seasonal
nature of the agro industry.
The rating, however, continues to draw comfort from the experience
of the partners and location advantage of its manufacturing
facilities. The rating also takes cognizance of the improvement in
total operating income of the firm in FY13 (refers to the period
April 1 to March 31).
Going forward, the effective management of the working capital
along with improvement capital structure shall be key rating
sensitivities. Also, rollover of its lease agreement of one of its
plants shall be a key rating sensitivity.
Punjab-based Shri Ram Solvex is a partnership firm established in
August 2005 and commenced its operations from December 2005. SRS
is engaged in the production of rice bran oil and de-oiled cakes.
The firm has two manufacturing plants, out of which one is owned
and the other on lease. The leased plant is taken from Sukhbir
Agro Energy Ltd (SAEL) (rated, CARE BBB/CARE A3) for a period of
five years (starting from November 2010) on lease rental of
INR0.36 crore per year. The firm has cumulative installed capacity
of 60,000 MTPA (metric tonnes per annum) as on March 31, 2013.
During FY13, the firm earned a total operating income (TOI) of
INR85.09 crore with a profit after tax (PAT) of INR0.11crore. In
FY14 till January 31, 2014, the firm earned a total operating
income (TOI) of INR76 crore.
STRAIGHT EDGE: CARE Reaffirms 'B' Rating on INR10cr Bank Loan
-------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Straight Edge Contracts Pvt Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 10 CARE B Reaffirmed
Facilities
Rating Rationale
The rating of Straight Edge Contracts Pvt Ltd continues to remain
constrained on account of its limited track record of operations,
low revenue visibility, highly leveraged capital structure,
stiff competition from organized as well as unorganized players
and cyclicality of the real estate sector. The rating also factors
in the working capital intensive nature of operations.
The rating, however, does draw comfort from the experience of the
promoters of SECPL.
Going forward, the ability of SECPL to increase its order book and
improvement in the capital structure would be the key rating
sensitivities.
SECPL is a closely held company was incorporated in 2009 by Mr
Rajesh Nagpal (aged 48 years), Mr Sahil Nagpal (aged 20 years) and
Mr Divam Kapoor (aged 22 years) in 2009. Mr Rajesh Nagpal
has experience of more than a decade in the civil construction.
The company is engaged in the civil construction mainly of multi-
storied residential buildings. The company is also engaged in the
real estate business - sale and purchase of residential/
commercial plots. The company operates in the Delhi-NCR region.
The company is currently executing a contract for AGC Realty Pvt
Ltd involving construction of residential flats in Sector 121,
Noida. The project was started in FY10 (refers to the period April
1 to March 31) and is expected to be completed in July, 2014. The
total contract value is INR159.05 crore.
SECPL reported PAT of INR0.58 crore on a total income of INR49.70
crore in FY13 as against the PAT of INR1.23 crore on a total
income of INR55.83 crore in FY12. In 10MFY14 (refers to the period
April 1 to January 31), SECPL has reported a total income of
INR31.72 crore.
SWASTIK STEVEDORES: ICRA Suspends 'B+' Rating on INR4cr Loan
------------------------------------------------------------
ICRA has suspended '[ICRA]B+' rating assigned to the INR4 crore
term loan and cash credit facilities & the '[ICRA]A4' rating
assigned to the INR2 crore bank guarantee of Swastik Stevedores
Private Limited. The suspension follows ICRA's inability to carry
out a rating surveillance.
According to its suspension policy, ICRA may suspend any rating
outstanding if in its opinion there is insufficient information to
assess such rating during the surveillance exercise.
SWEET CERAMIC: CRISIL Assigns 'B+' Rating to INR187.5MM Loans
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Sweet Ceramic Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 60 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 97.5 CRISIL B+/Stable
Bank Guarantee 12.5 CRISIL A4
Cash Credit 30 CRISIL B+/Stable
The ratings reflect SCPL's susceptibility to risks associated with
its ongoing project, and its expected weak capital structure in
the initial stages of its operations. These rating weaknesses are
partially offset by the extensive experience of the company's
promoters in the ceramics industry.
Outlook: Stable
CRISIL believes that SCPL will benefit over the medium term from
its promoters' extensive industry experience. The outlook may be
revised to 'Positive' if SCPL stabilises operations at its
proposed plant in a timely manner and reports higher-than'expected
revenues and profitability. Conversely, the outlook may be revised
to 'Negative' if the company faces significant delays in the
commencement of its operations, or generates lower-than-expected
cash accruals during the initial phase of its operations,
resulting in pressure on its liquidity.
Incorporated in July 2013, SCPL is setting-up a unit to
manufacture 30,000 tonnes per annum of colour digitally printed
wall tiles at Morbi, Rajkot district (Gujarat). The company is
promoted by the Rajkot-based Vadsola and Ghodasara families.
Commercial production is expected to start from April or May 2014.
TRIMURTY SPINNING: CARE Reaffirms B+ Rating on INR17.15cr Loan
--------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Trimurty Spinning Mills Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 17.15 CARE B+ Reaffirmed
Facilities
Short-term Bank 1.25 CARE A4 Reaffirmed
Facilities
Rating Rationale
The ratings continue to be constrained on account of short track
record of operations of Trimurty Spinning Mills Private Limited,
moderately leveraged capital structure, product concentration
risk, presence in a highly competitive cotton spinning sector and
its exposure to volatile raw material prices.
The ratings, however, continue to derive strength on account of
long experience of the promoters in the cotton spinning sector,
attainment of stability of operations, location advantage and good
demand from the user industries.
Ability of the company to utilize its optimum installed capacity
and manage volatility in the raw material prices will remain the
key rating sensitivities.
Trimurty Spinning Mills Pvt Ltd was incorporated on August 1, 2010
by Mr Suryawanshi, Mr Mhetre and Mr Naik, for the manufacturing of
cotton yarn. Located in Ichalkaranji, Maharashtra, TSMPL is
engaged in the manufacturing of long strand cotton yarn, i.e. 40s
combed hosiery compact type yarn. The company has set up 13,056
spindles and has a manufacturing capacity of about 17.57 lakh kgs
of cotton yarn per annum. The company has started its commercial
operations from April 1, 2013.
Key Updates
During FY13 (refers to the period April 01 to March 31), TSMPL
earned a loss of INR0.02 crore on a total operating income of
INR0.02 crore.
TULSIANI CONSTRUCTIONS: ICRA Puts 'B' Rating on INR30cr Loan
------------------------------------------------------------
ICRA has assigned a long term rating of '[ICRA]B' to the INR30.0
crore term loan of Tulsiani Constructions & Developers Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 30.0 [ICRA]B; Assigned
The rating positively factors TCDL's fully paid-up land, low
approval risk, and healthy level of bookings in its on-going
project -- Big Sky Tower (part of Golf View Apartments project).
The rating also takes comfort from the fact that bank financing
for the project has been tied-up. The rating is, however,
constrained by execution risk as the project is under construction
and scale of the project is large compared to earlier projects
executed by the company. Further, the company is executing
multiple other projects, which adds to the execution risks. The
rating also factors in the market risk associated with the project
as about one-third of the project is yet to be booked and low
level of customer advances received so far, which increases the
funding risk as a sizeable part of construction cost is planned to
be met from customer advances. Going forward, the company's
ability to timely execute the on-going project, and improve the
bookings and collections in the project will be the key rating
sensitivity.
Incorporated in 1999, Tulsiani Constructions & Developers Ltd
(TCDL) is Allahabad (Uttar Pradesh) based real estate developer
promoted by Shri Anil Kumar Tulsiani. TCDL has completed multiple
residential and commercial projects in Allahabad.
TCDL is currently developing a residential real estate project
with the name of Golf View Apartment located at Ansal Hi-Tech
Township, Shushant Golf City, Lucknow. Spread over 59844 sq. mts
of land, the project is divided into two blocks Block A or "Big
Sky Tower" and Block B or "Luxuria Tower" each consisting of 3
towers.
The term loan of INR30.0 crore is for Big Sky Tower project. The
total project cost for this project (Big Sky Tower) is estimated
to be INR80.7 crore. The project is scheduled to be completed by
March 2015.
VEDIK ISPAT: CRISIL Lowers Rating on INR250MM Loans to 'B+'
-----------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Vedik Ispat Pvt Ltd to 'CRISIL B+/Stable' from 'CRISIL BB-
/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 100 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
Proposed Working
Capital Facility 50 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
Proposed Cash
Credit Limit 100 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
The rating downgrade reflects VIPL's subdued operational
performance. The company's revenue of INR1.14 billion in 2012-13
(refers to financial year, April 1 to March 31), was in line with
CRISIL's estimates. However, VIPL was unable to commercialise
operations at its re-rolling mill because of interrupted power
supply. Consequently, the company recorded a negative operating
margin. VIPL's operating performance could improve in 2013-14,
following better availability of power and commercialisation of
its re-rolling mill, enabling sales of hot rolled (HR) and cold
rolled (CR) sheets, which yield a high operating margin.
VIPL's business risk profile is supported by its efficient working
capital management, with its gross current assets (GCAs) of 101
days as on March 31, 2013. CRISIL believes that VIPL's business
performance will improve driven by an expected improvement in the
operating margin to around 7 per cent over the medium term, and
consistent efficiency in working capital management.
The ratings reflect VIPL's below-average financial risk profile,
marked by high gearing and weak debt protection metrics, and the
company's modest scale of operations in a highly fragmented steel
industry. These rating weaknesses are partially offset by the
extensive experience of the promoters in the steel product
industry.
Outlook: Stable
CRISIL believes that VIPL will continue to benefit from the
promoters' extensive industry experience over the medium term. The
outlook may be revised to 'Positive' if VIPL reports sizeable
growth in its revenue and profitability margins, supported by
efficient working capital management, thus improving its financial
risk profile. The outlook may be revised to 'Negative' if VIPL's
debt protection metrics weaken, because of low profitability
margins. Any debt-funded capital expenditure programme undertaken
by the company may also result in the outlook being revised to
'Negative'.
VIPL was incorporated in 1992. The company began commercial
operations in January 2012, and manufactures HR and CR rolled
sheets. VIPL's day-to-day operations are managed by the promoters,
Mr. Sharad Bhutara and his family.
VIPL reported net loss of INR36.9 million on net sales of INR1.14
billion for 2012-13 (first full year of operations).
=========
J A P A N
=========
* Japan Government Says Bitcoin Not a Currency
----------------------------------------------
Takashi Mochizuki, writing for The Wall Street Journal, reported
that the Japanese government officially said that bitcoin is not a
currency and will not be regulated as a financial product.
"Bitcoin isn't a currency," according to a document approved by
the cabinet, which was prepared to answer questions by former vice
finance minister Tsutomu Okubo, the Journal related.
Though the government made its stance on the virtual currency
clearer, the government's official characterization of it based on
existing law does not mean Japan will ramp up its efforts to
create a new regulatory framework, the report said. Officials say
such moves must be coordinated with other countries before the
ball can be moved forward.
The growing debate over who should be responsible for overseeing
the crypto-currency has intensified since Tokyo-based major
bitcoin exchange Mt. Gox filed for bankruptcy protection last
week, the report added. Some critics say the exchange's collapse
was partly due to a lack of checks on the operating company amid
the regulatory vacuum.
The written statement concurs with the Financial Services Agency's
view that bitcoin is not a currency and therefore not subject to
regulation by the agency, the report further related. The
financial watchdog is responsible for regulating currency-based
services.
====================
N E W Z E A L A N D
====================
SOLID ENERGY: Losses Set to Continue; Chairman Steps Down
---------------------------------------------------------
Adam Bennett at NZ Herald reports that debt-laden state coal miner
Solid Energy is likely to continue posting losses on its key
coking coal operations for the next 18 months at least, its
executives told MPs on March 6.
Acting chief executive Garry Diack also confirmed the company has
discussed the sale of West Coast mines with the Indian Government,
NZ Herald relates.
According to the report, Mr. Diack along with acting chairwoman
Pip Dunphy and other senior executives were before Parliament's
finance and expenditure committee just days after reporting a $40
million annual loss.
NZ Herald says Ms. Dunphy confirmed chairman Mark Ford, who
replaced John Palmer just a few months ago, has now stepped down
due to ill health. Mr. Ford oversaw sweeping job cuts and a
crucial refinancing deal between the company, its banks, and the
Government, the report relates.
NZ Herald notes that the company was on the brink of collapse
early last year after making risky investments in alternative
energy projects and after failing to anticipate and react to
falling coal prices.
Under questioning from National MP Chris Tremain, chief strategy
officer Bill Luff said the price at which the company's hard
coking coal output was sustainable was US$140 to US$150 a tonne,
according to NZ Herald.
At present the spot price was about US$119 a tonne although
Mr. Diack indicated Solid Energy received somewhat more than that
under its supply contracts. Mr Luff said while the company
expected prices to recover to US$200 a tonne by 2021, there was
"little or no change" expected over the next 12 to 18 months, NZ
Herald relates.
According to the report, Mr. Diack later told reporters that could
derail an expected reduction in debt over the next two years and
also force the company to draw on as yet unused credit facilities
extended by the Government which total NZ$130 million.
NZ Herald relates that responding to questions from Green MP
Catherine Delahunty, Mr. Diack confirmed the company had discussed
selling West Coast mining operations with the visiting Indian
Steel Minister recently.
However he suggested that was not unusual. The company had dealt
with Indian interests for more than 20 years and they had "always"
expressed interest in purchasing coking coal mining assets in this
country, the report says.
NZ Herald adds that Mr. Diack said the company was not still in
discussions about selling mines to Indian interests, but the
matter was a "Government to Government'' issue which was being
handled by ministers. He did not know whether those discussions
were continuing.
As reported in the Troubled Company Reporter-Asia Pacific on
May 22, 2013, The New Zealand Herald said stricken state owned
coal miner Solid Energy's future appears bleak according to a
recently completed report on the company, Prime Minister John Key
had indicated. According to the Herald, Mr. Key said corporate
advisers KordaMentha had just completed their report on the
company which is on the brink of collapse after being crippled by
low coal prices and almost NZ$400 million in debts.
Solid Energy New Zealand Ltd is New Zealand's largest coal mining
company and an investor in research and commercialisation of
sustainable forms of energy that use coal, coal seam gas, biomass,
biodiesel and solar. Solid Energy's core mining business
includes hard coking coal, primarily for export to steel mills
throughout Asia, and thermal coal for the Huntly power station
and other domestic customers in the steel, dairy and cement
industries.
===============
X X X X X X X X
===============
* Large Companies with Insolvent Balance Sheets
-----------------------------------------------
Total
Total Shareholders
Assets Equity
Company Ticker (US$MM) (US$MM)
------- ------ ------ ------------
AUSTRALIA
AAT CORP LTD AAT 32.50 -13.46
ANITTEL GROUP LT AYG 18.43 -0.26
ATLANTIC LTD ATI 490.17 -25.68
AUSTRALIAN ZI-PP AZCCA 77.75 -2.57
AUSTRALIAN ZIRC AZC 77.75 -2.57
BIRON APPAREL LT BIC 19.71 -2.22
BOUNTY MINING LT BNT 10.54 -0.94
CLARITY OSS LTD CYO 33.12 -11.66
CMA CORP LTD CMV 127.41 -51.00
CWH RESOURCES LT CWH 10.71 -3.03
IDM INTERNATIONA IDM 30.99 -23.62
LIONHUB GROUP LT LHB 19.21 -26.52
MIRABELA NICKEL MBN 335.09 -179.03
NATURAL FUEL LTD NFL 19.38 -121.51
PACT GROUP HOLDI PGH 1,120.30 -982.11
PENRICE SODA HOL PSH 122.46 -26.85
RIVERCITY MOTORW RCY 386.88 -809.13
RUBICOR GROUP LT RUB 45.20 -75.31
STERLING PLANTAT SBI 59.08 -6.07
STIRLING RESOURC SRE 16.53 -8.12
STRAITS RESOURCE SRQ 208.51 -29.73
SWAN GOLD MINING SWA 36.43 -9.08
TZ LTD TZL 12.88 -8.73
CHINA
ANHUI GUOTONG-A 600444 79.12 -10.53
CHANG JIANG-A 520 770.91 -176.56
CHINA GREAT LAND CGL 16.52 -19.01
CHINA OILFIELD T COT 22.00 -16.71
FORGAME HOLDINGS 484 83.73 -21.92
HEBEI BAOSHUO -A 600155 114.00 -104.15
HULUDAO ZINC-A 751 507.79 -532.25
HUNAN TIANYI-A 908 59.37 -1.14
JIANGSU ZHONGDA 600074 338.59 -29.88
NANNING CHEMIC-A 600301 391.41 -43.60
QINGDAO YELLOW 600579 122.36 -71.04
QINGHAI SUNSHI-A 600381 394.70 -78.28
SHENZ CHINA BI-A 17 28.50 -283.65
SHENZ CHINA BI-B 200017 28.50 -283.65
SHIJIAZHUANG D-A 958 241.31 -111.50
SHUNFENG PHOTOVO 1165 411.73 -51.06
TAIYUAN TIANLO-A 600234 63.28 -17.71
WUHAN BOILER-B 200770 217.13 -213.03
WUHAN XIANGLON-A 600769 77.45 -103.43
YUNNAN JINGGU FO 600265 84.92 -2.90
HONG KONG
BIRMINGHAM INTER 2309 59.95 -12.80
BUILDMORE INTL 108 17.36 -70.34
CHINA ENVIRONMEN 986 66.65 -0.87
CHINA HEALTHCARE 673 34.76 -0.75
CHINA OCEAN SHIP 651 248.21 -106.72
CNC HOLDINGS 8356 99.16 -9.03
CROSBY CAPITAL 8088 16.40 -20.27
EFORCE HLDGS LTD 943 60.73 -9.56
GRANDE HLDG 186 255.10 -208.18
INNO-TECH HLDGS 8202 84.54 -116.82
LANGHAM -SS 1270 684.55 -86.21
LONG SUCCESS INT 8017 50.05 -7.44
MASCOTTE HLDGS 136 57.51 -81.70
MEGA EXPO HOLDIN 1360 17.00 -0.53
MELCOLOT LTD 8198 13.69 -28.83
NORSTAR FOUNDERS 2339 21.97 -56.33
PALADIN LTD 495 159.65 -9.17
PROVIEW INTL HLD 334 314.87 -294.85
SINO RESOURCES G 223 29.34 -24.77
SURFACE MOUNT SMT 32.88 -10.68
VXL CAPITAL LTD 727 74.79 -0.16
INDONESIA
APAC CITRA CENT MYTX 176.66 -6.99
ARPENI PRATAMA APOL 249.84 -319.77
ASIA PACIFIC POLY 375.58 -815.83
BUMI RESOURCES BUMI 7,027.47 -18.17
ICTSI JASA PRIMA KARW 56.41 -6.12
JAKARTA KYOEI ST JKSW 24.92 -34.90
MATAHARI DEPT LPPF 209.66 -89.74
ONIX CAPITAL TBK OCAP 13.22 -1.03
RENUKA COALINDO SQMI 15.84 -0.48
SUMALINDO LESTAR SULI 95.14 -18.99
UNITEX TBK UNTX 18.83 -18.53
INDIA
ABHISHEK CORPORA ABSC 53.66 -25.51
AGRO DUTCH INDUS ADF 85.09 -22.81
ALPS INDUS LTD ALPI 201.29 -41.70
AMIT SPINNING AMSP 12.85 -7.68
ARTSON ENGR ART 11.81 -10.16
ASHAPURA MINECHE ASMN 161.89 -51.58
ASHIMA LTD ASHM 63.23 -48.94
ATV PROJECTS ATV 48.47 -43.93
BELLARY STEELS BSAL 451.68 -108.50
BENZO PETRO INTL BPI 26.77 -1.05
BHAGHEERATHA ENG BGEL 22.65 -28.20
BLUE BIRD INDIA BIRD 122.02 -59.13
CELEBRITY FASHIO CFLI 24.96 -8.26
CHESLIND TEXTILE CTX 20.51 -0.03
CLASSIC DIAMONDS CLD 66.26 -6.84
COMPUTERSKILL CPS 14.90 -7.56
DCM FINANCIAL SE DCMFS 18.46 -9.46
DFL INFRASTRUCTU DLFI 42.74 -6.49
DIGJAM LTD DGJM 99.41 -22.59
DISH TV INDIA DITV 579.01 -28.55
DISH TV INDI-SLB DITV/S 579.01 -28.55
DUNCANS INDUS DAI 122.76 -227.05
ENSO SECUTRACK ENSO 15.57 -0.46
EURO CERAMICS EUCL 110.62 -6.83
EURO MULTIVISION EURO 36.94 -9.95
FERT & CHEM TRAV FCT 311.92 -35.19
GANESH BENZOPLST GBP 44.05 -15.48
GANGOTRI TEXTILE GNTX 54.67 -14.22
GOKAK TEXTILES L GTEX 46.36 -0.29
GOLDEN TOBACCO GTO 97.40 -18.24
GSL INDIA LTD GSL 29.86 -42.42
GSL NOVA PETROCH GSLN 16.53 -1.31
GUJARAT STATE FI GSF 10.26 -303.64
GUPTA SYNTHETICS GUSYN 44.18 -6.34
HARYANA STEEL HYSA 10.83 -5.91
HEALTHFORE TECHN HTEC 14.74 -46.64
HINDUSTAN ORGAN HOC 74.72 -24.07
HINDUSTAN PHOTO HPHT 49.58 -1,832.65
HMT LTD HMT 108.71 -572.12
ICDS ICDS 13.30 -6.17
INDAGE RESTAURAN IRL 15.11 -2.35
INTEGRAT FINANCE IFC 49.83 -51.32
JCT ELECTRONICS JCTE 80.08 -76.70
JENSON & NIC LTD JN 16.49 -71.70
JET AIRWAYS IND JETIN 3,368.77 -335.45
JET AIRWAYS -SLB JETIN/S 3,368.77 -335.45
JOG ENGINEERING VMJ 45.90 -5.28
KALYANPUR CEMENT KCEM 23.39 -42.66
KERALA AYURVEDA KERL 13.97 -1.69
KIDUJA INDIA KDJ 11.16 -3.43
KINGFISHER AIR KAIR 515.93 -2,371.26
KINGFISHER A-SLB KAIR/S 515.93 -2,371.26
KITPLY INDS LTD KIT 14.77 -58.78
KLG SYSTEL LTD KLGS 40.64 -27.37
LML LTD LML 43.95 -78.18
MADRAS FERTILIZE MDF 167.72 -56.20
MAHA RASHTRA APE MHAC 14.49 -12.96
MAHANAGAR TELE MTNL 4,845.41 -511.72
MAHANAGAR TE-SLB MTNL/S 4,845.41 -511.72
MALWA COTTON MCSM 44.14 -24.79
MILTON PLASTICS MILT 17.67 -51.22
MODERN DAIRIES MRD 38.61 -3.81
MOSER BAER INDIA MBI 727.13 -165.63
MOSER BAER -SLB MBI/S 727.13 -165.63
MTZ POLYFILMS LT TBE 31.94 -2.57
MURLI INDUSTRIES MRLI 262.39 -38.30
MYSORE PAPER MSPM 87.99 -8.12
NATL STAND INDI NTSD 22.09 -0.73
NAVCOM INDUS LTD NOP 10.19 -3.53
NICCO CORP LTD NICC 71.84 -4.91
NICCO UCO ALLIAN NICU 23.25 -83.90
NK INDUS LTD NKI 141.35 -7.71
NRC LTD NTRY 63.70 -53.01
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
PRIYADARSHINI SP PYSM 20.80 -2.28
QUADRANT TELEVEN QDTV 150.43 -137.48
QUINTEGRA SOLUTI QSL 16.76 -17.45
RAMSARUP INDUSTR RAMI 433.89 -89.28
RATHI ISPAT LTD RTIS 44.56 -3.93
RELIANCE BROADCA RBN 86.97 -0.59
RELIANCE MEDIAWO RMW 425.22 -21.31
RELIANCE MED-SLB RMW/S 425.22 -21.31
RENOWNED AUTO PR RAP 14.12 -1.25
RMG ALLOY STEEL RMG 66.61 -12.99
ROLLATAINERS LTD RLT 22.97 -22.24
ROYAL CUSHION RCVP 14.70 -75.18
SAAG RR INFRA LT SAAG 12.54 -4.93
SADHANA NITRO SNC 16.74 -0.58
SANATHNAGAR ENTE SNEL 49.23 -6.78
SANCIA GLOBAL IN SGIL 78.82 -25.13
SBEC SUGAR LTD SBECS 92.44 -5.61
SCOOTERS INDIA SCTR 19.75 -13.35
SERVALAK PAP LTD SLPL 61.57 -7.63
SHAH ALLOYS LTD SA 168.13 -81.60
SHALIMAR WIRES SWRI 22.79 -27.18
SHAMKEN COTSYN SHC 23.13 -6.17
SHAMKEN MULTIFAB SHM 60.55 -13.26
SHAMKEN SPINNERS SSP 42.18 -16.76
SHREE GANESH FOR SGFO 44.50 -2.89
SHREE KRISHNA SHKP 14.62 -0.92
SHREE RAMA MULTI SRMT 38.90 -4.49
SIDDHARTHA TUBES SDT 75.90 -11.45
SIMBHAOLI SUGAR SBSM 268.76 -54.47
SITI CABLE NETWO SCNL 219.45 -9.68
SPICEJET LTD SJET 563.64 -41.19
SQL STAR INTL SQL 10.58 -3.28
STATE TRADING CO STC 826.29 -276.56
STELCO STRIPS STLS 14.90 -5.27
STI INDIA LTD STIB 21.69 -2.13
STL GLOBAL LTD SHGL 30.73 -5.62
STORE ONE RETAIL SORI 15.48 -59.09
SUPER FORGINGS SFS 14.62 -7.00
SURYA PHARMA SUPH 370.28 -9.97
TAMILNADU JAI TNJB 17.07 -1.00
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 18.58 -25.67
TRIUMPH INTL OXIF 58.46 -14.18
TRIVENI GLASS TRSG 19.71 -10.45
TUTICORIN ALKALI TACF 19.86 -19.58
UDAIPUR CEMENT W UCW 11.38 -10.53
UNIFLEX CABLES UFCZ 47.46 -7.49
UNIWORTH LTD WW 149.50 -151.14
UNIWORTH TEXTILE FBW 22.54 -35.03
USHA INDIA LTD USHA 12.06 -54.51
VANASTHALI TEXT VTI 14.59 -5.80
VENUS SUGAR LTD VS 11.06 -1.08
WANBURY LTD WANB 141.86 -3.91
JAPAN
FLIGHT HOLDINGS 3753 10.10 -2.62
GOYO FOODS INDUS 2230 11.79 -1.51
HARAKOSAN CO 8894 186.55 -8.07
IDEA INTERNATION 3140 23.66 -0.08
KANMONKAI CO LTD 3372 42.64 -0.81
KOREA
DVS KOREA CO LTD 46400 17.40 -1.20
ORIENTAL PRECISI 14940 224.92 -79.83
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
STX OFFSHORE & S 67250 7,627.42 -1,124.38
TEC & CO 8900 139.98 -16.61
TONGYANG NETWORK 30790 311.91 -36.46
WOONGJIN HOLDING 16880 2,197.34 -635.50
MALAYSIA
HAISAN RESOURCES HRB 41.31 -11.54
HIGH-5 CONGLOMER HIGH 41.63 -34.19
HO HUP CONSTR CO HO 59.28 -16.64
PETROL ONE RESOU PORB 51.39 -4.00
SUMATEC RESOURCE SMTC 169.12 -26.18
VTI VINTAGE BHD VTI 17.74 -3.63
NEW ZEALAND
NZF GROUP LTD NZF NZ Equity 11.69 -4.60
PULSE ENERGY LTD PLE NZ Equity 11.29 -3.44
PHILIPPINES
CYBER BAY CORP CYBR 14.14 -21.59
FIL ESTATE CORP FC 40.90 -15.77
FILSYN CORP A FYN 23.11 -11.69
FILSYN CORP. B FYNB 23.11 -11.69
GOTESCO LAND-A GO 21.76 -19.21
GOTESCO LAND-B GOB 21.76 -19.21
LIBERTY TELECOMS LIB 108.53 -19.42
MRC ALLIED INC MRC 27.06 -2.56
PICOP RESOURCES PCP 105.66 -23.33
STENIEL MFG STN 21.07 -11.96
UNIWIDE HOLDINGS UW 50.36 -57.19
SINGAPORE
ADVANCE SCT LTD ASCT 19.68 -22.46
CEFC INTL LTD SUNE 95.25 -0.31
HL GLOBAL ENTERP HLGE 83.11 -4.63
IGG INC 8002 21.53 -55.84
SCIGEN LTD-CUFS SIE 68.70 -42.35
SUNMOON FOOD COM SMOON 20.26 -17.36
TT INTERNATIONAL TTI 298.35 -82.84
UNITED FIBER SYS UFS 65.52 -56.60
THAILAND
ABICO HLDGS-F ABICO/F 15.28 -4.40
ABICO HOLDINGS ABICO 15.28 -4.40
ABICO HOLD-NVDR ABICO-R 15.28 -4.40
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
BANGKOK RUBBER BRC 77.91 -114.37
BANGKOK RUBBER-F BRC/F 77.91 -114.37
BANGKOK RUB-NVDR BRC-R 77.91 -114.37
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
CIRCUIT ELEC PCL CIRKIT 16.79 -96.30
CIRCUIT ELEC-FRN CIRKIT/F 16.79 -96.30
CIRCUIT ELE-NVDR CIRKIT-R 16.79 -96.30
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
ITV PCL ITV 36.02 -121.94
ITV PCL-FOREIGN ITV/F 36.02 -121.94
ITV PCL-NVDR ITV-R 36.02 -121.94
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
KUANG PEI SAN POMPUI 17.70 -12.74
KUANG PEI SAN-F POMPUI/F 17.70 -12.74
KUANG PEI-NVDR POMPUI-R 17.70 -12.74
MANGPONG 1989 PC MPG 11.83 -0.91
MANGPONG 1989 PC MPG/F 11.83 -0.91
MANGPONG 19-NVDR MPG-R 11.83 -0.91
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
SAHAMITR PRESS-F SMPC/F 27.92 -1.48
SAHAMITR PRESSUR SMPC 27.92 -1.48
SAHAMITR PR-NVDR SMPC-R 27.92 -1.48
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
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
TRANG SEAFOOD TRS 15.18 -6.61
TRANG SEAFOOD-F TRS/F 15.18 -6.61
TRANG SFD-NVDR TRS-R 15.18 -6.61
TT&T PCL TTNT 589.80 -223.22
TT&T PCL-NVDR TTNT-R 589.80 -223.22
TT&T PUBLIC CO-F TTNT/F 589.80 -223.22
WORLD CORP -NVDR WORLD-R 15.72 -10.10
WORLD CORP PCL WORLD 15.72 -10.10
WORLD CORP PLC-F WORLD/F 15.72 -10.10
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
POWERCHIP SEM-EC 5346S 2,036.01 -52.74
TAIWAN KOL-E CRT 1606U 507.21 -147.14
TAIWAN KOLIN-EN 1606V 507.21 -147.14
TAIWAN KOLIN-ENT 1606W 507.21 -147.14
*********
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 ***