/raid1/www/Hosts/bankrupt/TCRAP_Public/140410.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
Thursday, April 10, 2014, Vol. 17, No. 71
Headlines
A U S T R A L I A
LLPG RESOURCES: First Creditors' Meeting Set For April 17
NU-TECH GROUP: Enters Into Voluntary Administration
RELUX COMMERCIAL: SV Partners Appointed as Administrators
SHOWBIZ INTERNATIONAL: Ticket Firm Placed in Administration
URBAN CONTRACTORS: In Liquidation, Owes More Than AUD940,00
WESTERN DIESEL: Meertens Appointed as Administrators
* Misconduct Claims Against Liquidators Fall, ASIC Report Shows
C H I N A
BAOXIN AUTO: Improved 2013 Results Supports Moody's Ba3 CFR
SHANGHAI CHAORI: Bondholder Seeks to Force Bankruptcy
ZHEJIANG HUATESI: Files For Bankruptcy Protection
H O N G K O N G
NORD ANGLIA: S&P Raises CCR to 'B+' & Removes Rating from Watch
I N D I A
A.N.E. INDUSTRIES: CRISIL Ups Rating on INR200MM Loan to 'B'
AAHELI HEALTHCARE: CRISIL Reaffirms B- Rating on INR300MM Loans
AKT INTERNATIONAL: CRISIL Reaffirms 'B' Rating on INR330MM Loans
ANIL STEELS: CRISIL Reaffirms 'B+' Rating on INR150MM Loan
ANTARCTICA PROPERTIES: ICRA Revises Rating on INR74.4cr Loans
AVNASH AUTOMOBILES: ICRA Suspends 'B' Rating on INR7cr Loan
BINDU FOOD: CRISIL Downgrades Rating on INR54MM Loans to 'D'
CASIL INDUSTRIES: ICRA Reaffirms 'B' Rating on INR26.63cr Loans
DAZARO ECO: ICRA Assigns 'B+' Rating to INR11.86cr Loans
EXPRESS INFOCOM: CRISIL Reaffirms 'B-' Rating on INR295MM Loans
FACOR STEELS: ICRA Assigns 'D' Rating to INR64.26cr Loans
GIRISH ENTERPRISES: CRISIL Reaffirms B- Rating on INR46MM Loan
GRAFFITI LAMINATES: CRISIL Assigns 'B+' Rating on INR200MM Loans
JYOTI POLYVINYL: CRISIL Assigns 'B+' Rating to INR10MM Loan
K N INTERNATIONAL: CRISIL Reaffirms 'B-' Rating on INR10MM Loan
KALINGA ENTERPRISES: CRISIL Reaffirms B+ Rating on INR90MM Loan
KHUSHI EXIM: CRISIL Lowers Rating on INR140MM Loan to 'B+'
KINGFISHER AIRLINES: Nine Trademarks Put Up For Sale
KINJAL CONSTRUCTION: CRISIL Reaffirms B+ Rating on INR250M Loans
KRAFT LAND: ICRA Assigns 'B+' Rating to INR11cr Loans
MBM ENGINEERING: ICRA Assigns 'B+' Rating to INR16.75cr Loans
MIDLAND DIESEL: CRISIL Reaffirms 'B-' Rating on INR60MM Loans
NAYAAGARH SUGAR: CRISIL Reaffirms D Rating on INR192.7MM Loans
NEW DIAMOND: ICRA Reaffirms 'B+' Rating on INR44cr Loans
NORTHERN INDIA: CRISIL Reaffirms 'B+' Rating on INR212MM Loans
P.K. FOUNDATION: CRISIL Reaffirms 'D' Rating on INR117.5MM Loans
PLAZA COMPUTERS: ICRA Suspends 'B+' Rating on INR7cr Loan
SAGAR INDUSTRIES: ICRA Assigns 'B+' Rating to INR14.97cr Loans
SHREENATHJI DWELLINGS: ICRA Puts 'B' Rating on INR20cr Term Loan
SMT MACHINES: CRISIL Cuts Rating on INR131.5MM Loans to 'B-'
SOUNDARYA DECORATORS: ICRA Suspends D Rating on INR50.10cr Loans
SSZ COMMODITIES: CRISIL Reaffirms 'B+' Rating on INR300MM Loan
SURYA INDUSTRIES: CRISIL Reaffirms 'D' Rating on INR210MM Loans
SUSHITEX INDUSTRIES: CRISIL Reaffirms B Rating on INR305MM Loans
YASH ENTERPRISES: CRISIL Reaffirms 'B' Rating on INR60MM Loan
J A P A N
MT. GOX: Australians Join Class Action to Recover Lost Bitcoin
P H I L I P P I N E S
GULF BANK: Placed Under PDIC Receivership
S R I L A N K A
SRI LANKA: S&P Assigns 'B+' Rating to US$500MM Global Bond Issue
T A I W A N
WAN HAI: Debt Position & Profit Margin Support Moody's Ba3 Rating
- - - - -
=================
A U S T R A L I A
=================
LLPG RESOURCES: First Creditors' Meeting Set For April 17
---------------------------------------------------------
Shane Leslie Deane -- shane@dyeco.com.au -- and Roger Darren Grant
-- roger@dyeco.com.au -- at Dye & Co. Pty Ltd were appointed as
administrators of LLPG Resources Pty Ltd on April 8, 2014.
A first meeting of the creditors of the Company will be held at
165 Camberwell Road, Hawthorn East 3123, on April 17, 2014, at
10:00 a.m.
NU-TECH GROUP: Enters Into Voluntary Administration
---------------------------------------------------
Melinda Oliver at SmartCompany reports that Nu-Tech Group has
entered voluntary administration following challenging times in
the construction sector.
The business, which has done work for Coles, Aldi and Woolworths,
appointed administrator Ian Purchas -- ian.purchas@svp.com.au --
from SV Partners, on April 2, with the first meeting of creditors
due to be held on April 14, SmartCompany discloses.
Mr. Purchas told SmartCompany he and the management team of Nu-
Tech were confident the business could get back on track.
"I was appointed late last Wednesday [April 2] and we are still
assessing the level of debt and focusing on getting on top of the
finances," the report quotes Mr. Purchas as saying.
SmartCompany relates that Mr. Purchas declined to reveal the
amount of debt at this stage but says the company has turnover of
over AUD20 million. He says the business "has not collapsed", and
it is still trading and all 50 staff are still employed, the
report notes.
Mr. Purchas told SmartCompany at this stage there is no
consideration of ceasing trading and the expectation is the
company will continue.
New South Wales-based Nu-Tech Group supplies air conditioning,
electrical services, coolrooms, and design and installation
services.
RELUX COMMERCIAL: SV Partners Appointed as Administrators
---------------------------------------------------------
Peter Gountzos -- peter.gountzos@svp.com.au -- Michael Carrafa --
michael.carrafa@svp.com.au -- and David Lofthouse --
david.lofthouse@svp.com.au -- at SV Partners were appointed as
administrators of Relux Commercial Pty Ltd and Relux Commercial
Assets Pty Ltd on April 7, 2014.
A first meeting for each of the Companies will be held at the
offices of SV Partners, Level 17, 200 Queen Street, in Melbourne,
on April 17, 2014, at 9:30 a.m. and 11:00 a.m., respectively.
SHOWBIZ INTERNATIONAL: Ticket Firm Placed in Administration
-----------------------------------------------------------
Cliff Sanderson at dissolve.com.au reports that administrators
have been called in to events ticketing company Showbiz
International Pty Ltd on April 3.
According to dissolve.com.au, the company and its assets are
currently under the control of administrators John Vouris and
Bradley Tonks from PFK Lawler. The assets include cash holdings
from ticket sales, the report notes.
dissolve.com.au says trading at the company will continue while
under the control of administrators.
Michael Buble Concert Tickets Guaranteed
Meanwhile, The Sydney Morning Herald reports that thousands of
music fans who purchased premium packages for Michael Buble's
upcoming concert tour from the ticketing agency will have their
tickets honoured despite the company going into voluntary
administration.
SMH relates that the executive director of venue operator AEG
Ogden, Rod Pilbeam, gave the guarantee as the troubled company's
administrator said he was still working through the details of
upcoming shows.
According to SMH, Mr. Pilbeam said he could reassure Showbiz
customers that "there will be no issue with them exercising their
entitlements to see Mr. Buble's performances".
"All package components will also be received by purchasers of the
various offerings that have been sold by Showbiz," the report
quotes Mr. Pilben as saying.
Michael Buble's tour begins in Perth on April 26 and includes
concerts at Melbourne's Rod Laver Arena on April 30 and May 1 and
Sydney's Allphones Arena on May 9 and 10, SMH reports. Showbiz's
Ultimate Encore VIP Package for Michael Buble, which is priced
from $406.85, includes premium seating, entry to a pre-show party
and merchandise, SMH adds.
Showbiz International Pty Ltd is a premium and specialty ticketing
agency for concerts and events, providing packages including
premium seats, hospitality and merchandise for the Vivid festival.
URBAN CONTRACTORS: In Liquidation, Owes More Than AUD940,00
-----------------------------------------------------------
The Canberra Times reports that Canberra firm Urban Contractors
has been placed into liquidation with debts of more than
AUD940,000, just months after resolving a lengthy dispute over
construction of ASIO's new headquarters.
Liquidators Kazar Slaven were appointed to the firm on April 1 and
all staff have had their employment terminated, according to
Canberra Times.
The landscaping and earthworks company first went into
administration in October 2012 during a legal battle with Lend
Lease over the AUD700 million ASIO building, the report notes.
At that time the company had up to AUD6 million in debts to local
builders and 73 staff, and was believed to have traded while
insolvent, owing the ACT government AUD400,000 for the dumping of
asbestos-contaminated soil from the site, the report recalls.
The report notes that one subcontractor who asked not to be named
said the ACT government should have done more to monitor the
firm's activities.
After emerging from the previous administration process in October
2013, Urban Contractors general Manager Petar Johnson said parties
to the dispute had reached an amicable settlement, the report
discloses.
Predicting growth for the firm, Mr. Johnson said Urban's most
significant challenge had been restrictions on government
contracts due to the ACT government's pre-qualification
requirement for tenders, the report says.
"There are employees owed about AUD150,000 and the ordinary
unsecured creditors are owed about AUD790,000. We're assessing
the company's ability to continue with any works on hand with the
view of minimizing any disruption to those works," the report
quoted liquidator Henry Kazar as saying.
Mr. Kazar, the report notes, said the firm's involvement on the
ASIO site had been the genesis of its impaired financial situation
and it had recently suffered from a lack of work in Canberra.
Mr. Kazar said employees would be lodging claims with a government
scheme, which guarantees employment entitlement, the report adds.
A meeting for stakeholders will take place on or around April 16.
WESTERN DIESEL: Meertens Appointed as Administrators
----------------------------------------------------
Austin Taylor -- ataylor@meertens.com.au -- and Stuart Reid --
sreid@meertens.com.au -- at Meertens were appointed as
administrators of Western Diesel Group Pty Ltd on April 3, 2014.
A first meeting of the creditors of the Company will be held at
Hilton, 2 Mitchell Street, in Darwin, on April 15, 2014, at
2:30 p.m.
* Misconduct Claims Against Liquidators Fall, ASIC Report Shows
---------------------------------------------------------------
SmartCompany reports that the number of misconduct claims made
against Australian liquidators has fallen, a report published on
April 8 by the corporate watchdog has revealed.
SmartCompany says the Australian Securities and Investments
Commission's annual report into the supervision of registered
liquidators found reports of alleged misconduct about registered
liquidators has dropped from 539 in 2011 to 446 in 2013, showing a
positive downward trend.
According to SmartCompany, the ASIC report found 61% of reports of
alleged misconduct against registered liquidators resulted in
educative outcomes for those making the report.
ASIC completed more than 250 reviews covering practitioner
independence, competence and remuneration. This is up from close
to 200 reviews in 2012, SmartCompany relates.
More than 70% of all independence declarations reviewed by the
watchdog in 2013 were adequate, compared to less than 50% in 2012,
SmartCompany relays.
According to SmartCompany, ASIC commissioner John Price said the
regulator will take strong action against liquidators who neglect
their responsibilities and obligations.
"Liquidators who did not adhere to their obligations have been
removed from the industry," SmartCompany quotes Mr. Price as
saying.
=========
C H I N A
=========
BAOXIN AUTO: Improved 2013 Results Supports Moody's Ba3 CFR
-----------------------------------------------------------
Moody's Investors Service says that Baoxin Auto Group Limited's
2013 results are in line with Moody's expectations, and support
its Ba3 corporate family rating as well as the stable rating
outlook.
"The successful integration of the NCGA Holdings Limited (NCGA,
not rated) acquisition and more traction from its after-sales
services contributed to a strong year-on-year revenue growth of
66.3% in 2013", says Chenyi Lu, a Moody's Vice President and
Senior Analyst.
Moody's expects Baoxin's revenue to grow about 15% year-on-year
over the next 1-2 years, driven by the ramp-up of net newly built
stores -- 20 in 2012 and 7 in 2013 -- and a greater revenue
contribution from its after-sales services, given that its
existing stores are maturing.
"A greater revenue contribution from its after-sales services --
with a stronger gross margin -- led to an improvement in gross
margin to 9.7% in 2013 from 8.7% in 2012. However, higher
operating expenses from the NCGA acquisition kept its adjusted
EBITDA margin at 7.3%, similar to the level for 2012" says Lu,
also the Lead Analyst for Baoxin.
Moody's expects the company to improve its adjusted EBITDA margin
slightly over the next 12-18 months, driven by the expected higher
revenue contribution from after-sales services.
Baoxin improved leverage in 2013 with the full-year earnings
contribution from NCGA. Adjusted debt grew modestly to RMB9.7
billion at end-2013 from RMB8.9 billion at end-2012, while
adjusted EBITDA grew 65.0% year-on-year in 2013. As a result, its
adjusted debt/EBITDA fell to 4.4x in 2013 from 6.7x in 2012.
Moody's expects Baoxin's adjusted debt/EBITDA to decline to 3.5-
4.0x over the next 12-18 months, which will be in line with its
Ba3 rating. Moody's also expects the company to pursue a prudent
expansion strategy, adding 10 new stores in 2014, and limiting
debt increases over the next two years.
Baoxin's liquidity position is weak, given its heavy reliance on
short-term debt to finance its operations. Its unrestricted cash
of RMB2.1 billion at end-2013, pledged bank deposits of RMB2.8
billion, and expected cash flows from operations of around RMB0.8
billion in the next 12 months are not enough to cover its
projected maintenance capex of RMB50 million, bills payables of
RMB4.2 billion, and short-term maturing debt of RMB5.9 billion.
However, given its profitable operations and strong market
position in China, Moody's expects Baoxin to rollover its short-
term borrowings from domestic banks.
The principal methodology used in this rating was the Global
Retail Industry published in June 2011.
Founded in 1999, Baoxin Auto Group Limited is one of the top
players in the luxury car dealership market in China, operating 82
stores at end-2013. Baoxin listed on the Hong Kong Stock Exchange
in December 2011.
SHANGHAI CHAORI: Bondholder Seeks to Force Bankruptcy
-----------------------------------------------------
Bloomberg News reports that Shanghai Chaori Solar Energy Science &
Technology Co., the first Chinese company to default on corporate
bonds onshore, said a bondholder is seeking to force it into
bankruptcy restructuring.
The manufacturer received a letter on April 3 from Shanghai Yihua
Metal Materials Ltd. saying the creditor had submitted a petition
to Shanghai No. 1 Intermediate People's Court, Bloomberg relates
citing a filing by Chaori to the Shenzhen Stock Exchange on
April 3. Bloomberg relates that Chaori said it doesn't know
whether the court will accept the case and whether the
restructuring will proceed.
According to Bloomberg, the company said the solar-cell maker paid
only CNY4 million ($644,000) of an CNY89.8 million coupon payment
due on March 7 on its 2017 bonds. Bloomberg says the partial
payment signals China's government may back off its previous
practice of bailing out companies after promising to give markets
a decisive role in the allocation of resources.
That said, Xuzhou Zhongsen Tonghao New Board Co., a building-
materials maker that would have been the second onshore defaulter,
will avoid missing payments after its guarantor said it would step
in to help, the China Securities Regulatory Commission said on
April 3, Bloomberg says.
Bloomberg relates that Chaori said it has undergone a "complete
loss of credibility, so it may not be able to guarantee its plan
to repay debt." Chaori shareholder Ni Kailu failed to secure deals
with several parties to improve the company's liquidity, Chaori
said.
Trading in Chaori's shares, which was halted Feb. 19, will resume
April 8, according to a statement cited by Bloomberg. Chaori said
trading may stop again if the court accepts Yihua's application or
if audited 2013 earnings show a net loss, Bloomberg relates. The
company, which had two consecutive years of net losses, is
scheduled to publish audited accounts on
April 28, the report notes.
Bloomberg adds that Chaori said its shares may be delisted if the
restructuring fails should the court accepts the bankruptcy
application.
Headquartered in Shanghai, China, Shanghai Chaori Solar Energy
Science & Technology Co., Ltd. engages in the research,
development, and manufacture of solar solutions in the People's
Republic of China, rest of Asia, Europe, North America, and
Oceania. The company offers crystalline modules, such as mono
modules, poly modules, black pearls, and T-modules; crystalline
silicon solar cells; wafers; ingots and chunks; and solar lamps.
ZHEJIANG HUATESI: Files For Bankruptcy Protection
-------------------------------------------------
Reuters reports that Zhejiang Huatesi Polymer Technical Co Ltd has
declared bankruptcy, threatening its ability to meet an interest
payment on a high-yield bond due in July.
Reuters says Zhejiang Huatesi asked a local court for bankruptcy
protection in early March, according to an announcement on the
website of the Anji County People's Court.
The firm sold CNY60 million ($9.7 million) in bonds in a private
placement in January 2013 at an interest rate of 11 percent. The
next interest payment is due on July 23, while the bond matures in
January next year, Reuters recalls.
Reuters notes that a string of credit defaults in recent weeks has
highlighted rising credit risks in China, partly fuelled by signs
that the economy is slowing down.
The news agency says China's domestic bond market experienced its
first-ever default early last month when Shanghai Chaori Solar
Energy Science and Technology Co Ltd missed an interest payment.
That bond carried no guarantee, and it remains unclear if
investors will be repaid.
A technical default late last month by a small construction
materials firm, Xuzhou Zhongsen Tonghao New Board Co Ltd, was the
first in China's high-yield bond market, Reuters recalls. The
guarantor of that bond eventually agreed to fund the required
interest payment.
Reuters notes that Chaori's default was seen as a landmark for
Chinese markets, turning on its head a long-held assumption that
even high-yielding debt carried an implicit state guarantee.
Reflecting the government's new attitude towards default, the
China Securities Regulatory Commission (CSRC) described the Xuzhou
Zhongsen default as a commonplace event, according to the report.
"(The Xuzhou Zhongsen bond) was issued to investors according to
regulations, and the default is an isolated risk event. The
commission will abide by market-based principles and handle the
case according to law," CSRC spokesman Deng Ge said at the
agency's weekly press conference on April 4, notes Reuters.
China-based Zhejiang Huatesi Polymer Technical Co Ltd manufactures
polyester yarn.
================
H O N G K O N G
================
NORD ANGLIA: S&P Raises CCR to 'B+' & Removes Rating from Watch
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it has raised its
long-term corporate credit rating on Hong Kong-domiciled education
services provider Nord Anglia Education (UK) Holdings PLC (Nord
Anglia Education) to 'B+' from 'B'. At the same time, S&P removed
the rating from CreditWatch, where it had placed it with positive
implications on March 7, 2014.
In addition, S&P affirmed its 'B+' issue ratings on the $515
million senior secured term loan B (TLB) due 2021 and on the $75
million revolving credit facility (RCF) due 2019, both borrowed by
Nord Anglia Education Finance LLC, a direct subsidiary of Nord
Anglia Education Inc. The loans have a recovery rating of '3',
indicating S&P's expectation of meaningful (50%-70%) recovery in
the event of a payment default.
S&P is also withdrawing its 'B' issue rating on the repaid $490
million 10.25% senior secured notes due 2017 issued by Nord Anglia
Education and its 'CCC+' issue rating on the repaid $150 million
payment-in-kind (PIK) toggle notes.
The upgrade follows Nord Anglia Education's successful IPO and
subsequent debt reduction. The company raised about $350 million
from the IPO (including the overallotment option) and an
additional $515 million from the issuance of a term loan B. It
used the proceeds to repay its $490 million 10.25% senior secured
notes due 2017, the $150 million PIK toggle notes due 2018, as
well as $62 million of preference shares, and to finance costs
associated with the IPO and the refinancing. As part of the
transaction, the group converted all of the remaining preference
shares into ordinary shares.
S&P's rating on Nord Anglia Education takes into account the
company's "highly leveraged" financial risk profile, reflective of
its expectation of adjusted debt to EBITDA of about 5.6x for the
year ending Aug. 31, 2014 (fiscal 2014). S&P understands that
financial sponsor Baring Asia Private Equity continues to hold
about 80% of Nord Anglia Education's share capital and voting
rights. S&P therefore continues to apply its financial sponsor
criteria.
While Nord Anglia Education's adjusted leverage remains high, S&P
recognizes that adjusted EDITDA interest cover of about 3.0x is
healthy. Therefore, S&P applies an upward adjustment of one notch
for comparable rating analysis, whereby it reviews an issuer's
credit characteristics in aggregate.
S&P continues to assess the group's business risk profile as
"fair."
The stable outlook reflects S&P's view that the company's revenues
and profitability will continue to grow, enabling it to at least
sustain the recent enhancement in its financial metrics. Growth
is supported by positive dynamics for private schools in the
premium segment in general and continued strong demand for private
schools, particularly in the Middle East, South East Asia, and
China. Moreover, S&P forecasts that the company will sustain
positive free operating cash flow, even in a less benign economic
environment.
S&P might lower the ratings if large acquisitions or unexpected
operating setbacks caused earnings to decline to the extent that
adjusted EBITDA interest coverage fell sustainably below 2.5x.
S&P could also lower the ratings if adjusted debt to EBITDA were
to increase sustainably above 6x.
S&P could raise the ratings if Nord Anglia Education's credit
measures improved further, with debt to EBITDA of sustainably less
than 5x. That said, any further rating upside depends on a clear
commitment by the company to a moderate financial policy
commensurate with an aggressive financial risk profile.
=========
I N D I A
=========
A.N.E. INDUSTRIES: CRISIL Ups Rating on INR200MM Loan to 'B'
------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
A.N.E. Industries Pvt Ltd to 'CRISIL B/Stable' from 'CRISIL C',
and has reaffirmed its rating on the company's short-term
facilities at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Bank Guarantee 400 CRISIL A4 (Reaffirmed)
Cash Credit 200 CRISIL B/Stable (Upgraded from
'CRISIL C')
Proposed Short Term
Bank Loan Facility 5 CRISIL A4 (Reaffirmed)
The rating upgrade reflects ANE's timely servicing of its
equipment loans, following the improvement in its liquidity. The
improvement was driven by an increase in the company's cash credit
limit and higher cash accruals due to its improved scale of
operations and healthy margins. CRISIL believes that ANE's
liquidity will improve further over the medium term with the
expected improvement in its cash accruals, leading to an increase
in the cushion between its debt repayment obligations and cash
accruals; the two were tightly matched in 2013-14 (refers to
financial year, April 1 to March 31).
The ratings also reflect the high customer and geographic
concentration in ANE's revenue profile. These rating weaknesses
are partially offset by the extensive experience of the company's
promoters in the mineral excavation and removal of overburden
business, and its moderate financial risk profile, marked by
healthy gearing and debt protection metrics.
Outlook: Stable
CRISIL believes that ANE will continue benefit over the medium
term from its increasing scale of operations and healthy margins.
The outlook may be revised to 'Positive' in case of substantial
improvement in the company's cash accruals due to higher-than-
expected revenues and profitability, or in case of fresh equity
infusion, thereby further improving its liquidity. Conversely the
outlook may be revised to 'Negative' if ANE's liquidity
deteriorates, most likely because of lower-than-expected cash
accruals, a stretch in its working capital management, or
substantial debt-funded capital expenditure.
ANE was set up in 2003 at Nawansahar, Punjab by Mr. Soham Singh.
The company executes open cast mining contracts involving removal
of over burden and mineral excavation.
ANE reported a profit after tax (PAT) of INR84.9 million on net
sales of INR1.2 billion for 2012-13, as against a PAT of INR76.9
million on net sales of INR875.4 million for 2011-12.
AAHELI HEALTHCARE: CRISIL Reaffirms B- Rating on INR300MM Loans
---------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Aaheli
Healthcare Pvt Ltd continues to reflect its exposure to project
implementation risks.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 10 CRISIL B-/Stable (Reaffirmed)
Term Loan 139 CRISIL B-/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 151 CRISIL B-/Stable (Reaffirmed)
The rating also factors in the company's below-average financial
risk profile, marked by its small net worth, high gearing and weak
debt protection metrics. These rating weaknesses are mitigated by
the entrepreneurial experience of the promoters and qualified
professionals.
Outlook: Stable
CRISIL believes that AHPL's liquidity will be supported by equity
infusion in the near term and expects the liquidity to improve as
the operations become cash accretive. The outlook may be revised
to 'Positive' if the company's liquidity improves with an
incremental infusion of long-term funds by the promoters.
Conversely, the outlook may be revised to 'Negative' if time or
cost overruns in project implementation constrain AHPL's liquidity
and capital structure.
AHPL was founded in 2010 by Mr. Razak Pathan. The company will
manufacture generic pharmaceutical formulations in Tasawade MIDC,
Karad (Maharashtra). Company is likely to commence its operations
in the second quarter of 2014-15.
AKT INTERNATIONAL: CRISIL Reaffirms 'B' Rating on INR330MM Loans
----------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of AKT
International Pvt Ltd continues to reflect AKT's small scale and
short track record of operations in the intensely competitive gold
jewellery retailing market, and its below-average financial risk
profile, marked by high debt and low networth. These rating
weaknesses are partially offset by the benefits that the company
derives from the strong brand value of Tanishq, a jewellery brand
of Titan Company Ltd (Titan; rated 'CRISIL AA+/Stable/CRISIL A1+)
with which it has a franchise agreement.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Adhoc Limit 50 CRISIL B/Stable (Reaffirmed)
Cash Credit 25 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 30 CRISIL B/Stable (Reaffirmed)
Electronic Dealer
Financing Scheme
(e-DFS) 225 CRISIL B/Stable (Reaffirmed)
CRISIL had assigned its 'CRISIL B/Stable' rating to the bank
facilities of AKT International Pvt Ltd (AKT) on February 04,
2014.
Outlook: Stable
CRISIL believes that AKT will continue to benefit over the medium
term from the strong market position of the Tanishq brand in the
gold jewellery business. The outlook may be revised to 'Positive'
if the company achieves a significant and sustained increase in
its revenue and operating margin, resulting in an improvement in
its capital structure and debt-protection metrics. Conversely, the
outlook may be revised to 'Negative' in case of lower-than-
expected growth in AKT's revenue and operating margin, a stretch
in its working capital cycle, or large debt-funded capital
expenditure, leading to deterioration of its financial risk
profile.
Incorporated in 2012 and promoted by Mr. Ashok Kumar Tiwari and
his son Mr. Akash Tiwari, AKT is engaged in retailing of branded
gold and diamond jewellery under the Tanishq brand, through a
franchise agreement with Titan. The company has showrooms in
Bareilly (Uttar Pradesh) and Haldwani (Uttarakhand).
ANIL STEELS: CRISIL Reaffirms 'B+' Rating on INR150MM Loan
----------------------------------------------------------
CRISIL's ratings on the bank facilities of Anil Steels Pvt Ltd
continue to reflect ASPL's small scale of operations in the highly
fragmented steel industry, and its weak financial risk profile,
marked by a small net worth and driven by large working capital
requirements. These rating weaknesses are partially offset by the
company's moderate order book, leading to healthy revenue
visibility over the near term.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Bank Guarantee 110 CRISIL A4 (Reaffirmed)
Cash Credit 150 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that ASPL's financial risk profile will remain
weak over the medium term because of its small net worth and large
working capital requirements. The outlook may be revised to
'Positive' in case of improvement in the company's financial risk
profile, most likely because of equity infusion or larger-than-
expected cash accruals. Conversely, the outlook may be revised to
'Negative' if ASPL's revenue or operating margin declines
significantly, or if its capital structure deteriorates on account
of substantial debt-funded capital expenditure or large working
capital requirements.
Mr. Nitin Agrawal took over ASPL's operations in 2004; the company
had been a sick unit since 1991. It mainly undertakes fabrication
and galvanisation of steel primarily for the solar power and
telecommunication industries.
ANTARCTICA PROPERTIES: ICRA Revises Rating on INR74.4cr Loans
-------------------------------------------------------------
ICRA has revised long term rating to '[ICRA]D' from [ICRA]C for
INR49.00 crore term loan (earlier INR65.0 crore; outstanding
balance as on date stands at INR25.64 crore) and INR25.40 crore
(earlier INR9.40 crore) unallocated facilities of Antarctica
Properties Company Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 49.00 Revised to [ICRA]D
Unallocated Facilities 25.40 Revised to [ICRA]D
The rating revision factors in the delays in debt servicing (both
principal and interest) by the company for last few months. The
installment due on December 31, 2013 has been paid in March 2014.
Earlier the rating was revised to [ICRA]C as the company had
regularized its repayment of principal and payment of interest
from the INR36 crore of funds raised through issue of Non
Convertible Debentures (NCDs) in June 2013. The cash flows of the
company are stretched owing to limited sales achieved so far in
its project (service apartments and commercial/retail space), amid
the market characterized by weak demand, high interest rates,
slowdown in economic activity and increased supply in the short
term. Going forward company's ability to achieve healthy bookings
and collections along with timely debt servicing would be the key
rating sensitivity factors.
APCL is the Indian arm of Tricone Development Singapore Pte.
Limited and is involved in the real estate development in
Hospitality segment. APCL is developing commercial
residences/serviced apartments at Mayur Vihar, Phase I, Delhi on a
freehold plot allotted by Delhi Development Authority (DDA). The
project comprises of 32 serviced apartments and commercial/retail
space. The project is being developed at a total project cost of
around INR205 crore and is largely complete except for some
internal finishing work. Apart from equity and customer advance,
the project funding initially comprised term loan of INR49 crore
(outstanding as on date INR25.64 crore). Thereafter the company
raised additional INR36 crore through NCDs to meet debt repayment
and the pending execution requirement.
AVNASH AUTOMOBILES: ICRA Suspends 'B' Rating on INR7cr Loan
-----------------------------------------------------------
ICRA has suspended [ICRA]B rating assigned to the INR7.00 crore
long term fund based facilities of Avnash Automobiles Private
Limited. The suspension follows ICRA's inability to carry out a
rating surveillance in the absence of the requisite information
from the company.
BINDU FOOD: CRISIL Downgrades Rating on INR54MM Loans to 'D'
------------------------------------------------------------
CRISIL has downgraded its ratings on the long term bank facilities
of Bindu Food Processors Pvt Ltd to 'CRISIL D from 'CRISIL B-
/Stable'. The rating downgrade reflects delays by BFFPL in
servicing its term debt and its seasonal cash credit facility; the
delays have been caused by the company's weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 11.8 CRISIL D (Downgraded from
'CRISIL B-/Stable')
Long Term Loan 32.5 CRISIL D (Downgraded from
'CRISIL B-/Stable')
Working Capital 9.7 CRISIL D (Downgraded from
Loan 'CRISIL B-/Stable')
BFPPL also has a below-average financial risk profile, marked by a
small net worth, high gearing, and average debt protection
metrics. However, the company benefits from the extensive
experience of its promoters in the cold-storage business.
BFPPL was established in 1998 by Mr. Inder Raj Agarwal and his
cousins, Mr. Hanuman Sahay Agarwal and Mr. Anil Agarwal. The
company operates a 21,000-tonne cold-storage unit (primarily for
storing potatoes) at Paschim Medinipur (West Bengal). It also
provides funding to farmers against the potatoes stored, which is
in turn re-financed by banks. BFPPL sometimes trades in potatoes
to ensure optimum capacity utilisation of its cold-storage unit.
CASIL INDUSTRIES: ICRA Reaffirms 'B' Rating on INR26.63cr Loans
---------------------------------------------------------------
ICRA has reaffirmed '[ICRA]B' rating to the INR21.63 crore
(reduced from INR27.42 crore) term loans and INR5 crore fund based
bank limits of Casil Industries Limited. ICRA has also reaffirmed
[ICRA]A4 rating to the INR3.1 crore non fund based limits.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term, term
loans 21.63 [ICRA]B reaffirmed
Long-term, fund-
based facilities 5.00 [ICRA]B reaffirmed
Short-term, non
fund-based
facilities 3.10 [ICRA]A4 Reaffirmed
The ratings reflect the strong business and financial support (in
terms of fund infusion for servicing debt repayments) by Cadila
Pharmaceuticals Limited. Additionally, ICRA also takes note of the
company's established network, experience of the promoters in the
pharmaceutical industry and the induction of professional
management since last fiscal which is likely to have a positive
impact on its overall business operations going forward. The
ratings however continue to be constrained by CIL's net losses
thus resulting in negative networth in FY13, adverse capital
structure arising from high debt funded capex undertaken in the
past and weak coverage indicators. ICRA notes CIL's merger plans
with Omnicare Pharmaceuticals Limited (OPL) which was floated by
the promoters, i.e., the Cadila group for paying off the existing
public shareholders in CIL so as to make it a 100% group owned
company. The merger process is likely to get concluded by Sep 2014
and ICRA will evaluate its impact on the company's credit profile
once the merger takes place.
Casil Industries Ltd. was promoted as a Public Venture in the year
1988 with an aim to support an established pharmaceutical company
of the group in the allied hospital supplies. CIL provides a range
of pharmaceutical and health products. The company is one the
established suppliers of allied hospital supplies primarily
surgical, orthopedic, wound care, disinfectants etc. Among other
products the company also supplies Plaster of Paris Bandages,
Adhesive Surgical Tapes, Non-woven Dressings, Disinfectant,
Dietary/Multivitamin/Mineral supplements in the form of Soft
Gelatin Capsules. CIL also manufactures Sulfolene, a solvent used
in refinery and lot of synthesis process in Pharmaceutical
Industry.
Recent results:
As per the provisional numbers, for the nine months ended December
2013, the company reported a Net Loss of INR0.6 crore on a gross
sales of INR27.6 crore.
DAZARO ECO: ICRA Assigns 'B+' Rating to INR11.86cr Loans
--------------------------------------------------------
The rating of [ICRA]B+ has been assigned to the INR8.86 crore term
loan facility and INR3.00 crore cash credit facility of DAZARO ECO
GREEN Private Limited. The rating of [ICRA]A4 has also been
assigned to the INR0.75 crore short term non fund based bank
guarantee of (DEGPL).
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 3.00 [ICRA]B+ assigned
Term Loan 8.86 [ICRA]B+ assigned
Bank Guarantee 0.75 [ICRA]A4 assigned
The assigned rating is constrained by the project execution risks
that are inherent in a green field project given that project is
still at a nascent stage of implementation augmenting the
possibilities of cost and time overrun. The rating further
incorporates absence of the promoter's experience in the AAC block
manufacturing and the sensitivity of the company's cash flows to
the capacity utilization as well as its pricing power as compared
to established players in this space. The ratings are further
constrained by the low entry barriers in the business, which could
lead to increased competitive pressures going forward, which
coupled with the ease of availability of cheaper established
substitute in the form of clay bricks, may affect the
profitability.
The ratings however take comfort from the advantages that AAC
blocks offer over its substitutes, lower off take risks since the
group concerns are engaged in construction activities and
locational benefits arising from its proximity to raw material
sources.
DEGPL is a closely held company incorporated in 2013 and currently
is in the process of setting up a AAC (Autoclaved Aerated
Concrete) blocks manufacturing plant with installed capacity of
1,50,000 mtr3 in Pratij, Gujarat. The company is owned and managed
by Mr. Prakash Tated and Mr. Bhushan Thakkar and Mr.Girdhar Patek
along with other family members. The promoters are engaged in
various businesses through other entities involved in
construction, ceramics etc.
EXPRESS INFOCOM: CRISIL Reaffirms 'B-' Rating on INR295MM Loans
---------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Express
Infocom Pvt Ltd continues to reflect EIPL's low occupancy level
and operating profitability, its weak financial risk profile,
marked by high gearing and a small net worth, and high geographic
concentration in its revenue profile. These rating weaknesses are
partially offset by the extensive experience of the company's
promoters in the real estate industry, the favourable location of
its hotel, and the benefits it derives from its association with
the Sarovar group.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Overdraft Facility 21.5 CRISIL B-/Stable(Reaffirmed)
Proposed Long Term
Bank Loan Facility 53.5 CRISIL B-/Stable(Reaffirmed)
Term Loan 220 CRISIL B-/Stable(Reaffirmed)
Outlook: Stable
CRISIL's believes that EIPL's credit risk profile will remain
sensitive to the timely infusion of funds by its promoters to
service its debt, given its low cash accruals due to its initial
years of operations. The outlook may be revised to 'Positive' if
EIPL achieves higher-than-expected average room rent and occupancy
rates in its initial phase of operations, resulting in comfortable
accruals and thus improving its financial risk profile.
Conversely, the outlook may be revised to 'Negative' in case of
any delay in funding support from the promoters to meet its term
debt obligations.
Incorporated in 2006 and based in Delhi, EIPL runs the Express
Sarovar Portico hotel at Surajkund, Faridabad (Haryana). The hotel
has 70 rooms along with amenities such as a banquet hall,
restaurant, and conference halls. The hotel has been operational
since June 2010 and has an operation and maintenance agreement
with Sarovar Group.
EIPL reported a net loss of INR32.02 million on net sales of
INR64.09 million for 2012-13 (refers to financial year, April 1 to
March 31), against a net loss of INR27.79 million on net sales of
INR62.99 million for 2011-12.
FACOR STEELS: ICRA Assigns 'D' Rating to INR64.26cr Loans
---------------------------------------------------------
ICRA has assigned the long term rating of '[ICRA]D' to the
INR40.62 crore Fund Based facilities of FACOR Steels Limited. ICRA
has also assigned a short term rating of [ICRA]D to the INR23.64
crore non-fund based limits of the FSL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Facilities 40.62 [ICRA]D (Assigned)
Non-Fund Based
Facilities 23.64 [ICRA]D (Assigned)
ICRA has a long term rating of [ICRA]D outstanding for INR35.78
crore Fund Based facilities FSL and a short term rating of [ICRA]D
outstanding for INR42.36 crore non-fund based limits of FSL.
The assigned rating reflects delays by FSL in servicing of its
debt obligation. ICRA notes that due to significant losses during
FY13, the company had applied for Corporate Debt Restructuring
(CDR) in January 2013 and the same got approved in April 2013 by
its bankers. Post that, the manufacturing operations have
restarted in August 2013. Going forward, FSL's ability to service
the debt obligation in time, improving its profitability and
capital structure will be amongst the key rating sensitivity
factors.
Facor Steels Limited was incorporated in May 2004, as a part of a
restructuring scheme sanctioned to Ferro Alloys Corporation
Limited (FACOR). FACOR was incorporated in 1957 by Mr. Uma Shankar
Agarwal & the Saraf family. As a part of the restructuring
exercise initiated in April 2004, the company was trifurcated into
three separate companies namely FACOR, FSL and Facor Alloys
Limited (FAL) based on division of operations and manufacturing
facilities. FSL is a company involved in manufacturing steel
products from its unit located in Nagpur (Maharashtra). The
company manufactures stainless steel as well as alloy/carbon steel
products, which largely caters to the requirement of automobile
component-makers, forgers and Bright bar exporters.
Recent Results:
In FY12, the company reported a net loss of INR8.63 crore on a
turnover of INR308.60 crore. Further, in FY13, FSL reported a net
loss of INR24.73 crore on a turnover of INR246.06 crore.
GIRISH ENTERPRISES: CRISIL Reaffirms B- Rating on INR46MM Loan
--------------------------------------------------------------
CRISIL ratings on the bank facilities of Girish Enterprises Pvt
Ltd continue to reflect the company's below-average financial risk
profile marked by small net worth, high gearing driven by large
capital withdrawal at the time its reconstitution as a private
limited company, and stretched liquidity because of working-
capital-intensive operations.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Bank Guarantee 30 CRISIL A4 (Reaffirmed)
Cash Credit 46 CRISIL B-/Stable (Reaffirmed)
The ratings also factor in GEPL's exposure to risks related to its
tender-based business and small scale of operations in the highly
competitive civil construction industry. These rating weaknesses
are partially offset by the extensive industry experience of
GEPL's promoter in the construction industry and its moderate
order book that provides it with near-term revenue visibility.
Outlook: Stable
CRISIL believes that GEPL will continue to benefit over the medium
term from its promoter's extensive experience in the construction
industry. The outlook may be revised to 'Positive' in case of
significant improvement in the company's scale of operations and
capital structure, most likely because of fresh equity infusion.
Conversely, the outlook may be revised to 'Negative' in case of
deterioration in the company's financial risk profile, especially
liquidity, because of larger-than-expected working capital
requirements or debt-funded capital expenditure.
Update
In 2012-13 (refers to financial year, April 1 to March 31), GEPL's
operating revenue increased by 13 per cent to INR131 million from
INR116 million the preceding year, driven by increase in orders
from major customer City and Industrial Development Corporation
(CIDCO), Navi Mumbai. GEPL booked operating revenue of INR99
million for the nine months ended December 31, 2013. GEPL's
operating margin was around 15 per cent in 2012-13.
GEPL's financial risk profile remains weak, with high gearing of
around 66.1 times as on March 31, 2013, largely on account of
capital withdrawal during its reconstitution as a private limited
company. GEPL's debt protection metrics remain moderate, with net
cash accruals to total debt and interest coverage ratios at 0.16
times and 2.13 times, respectively, for 2012-13.
GEPL's liquidity remains weak, driven by working-capital-intensive
operations. The company had gross current assets (GCAs) of around
132 days as on March 31, 2013, largely on account of large
receivables of around 94 days; the receivables ranged from 94 to
184 days over the past three years. Large working capital
requirements led to high bank limit utilisation, at an average of
95.63 per cent, over the seven months through December 2013. The
company's liquidity is supported by cash accruals of around
INR9.52 million in 2012-13 against annual debt obligations of
around 6.35 million over the medium term.
GEPL was promoted in 2011 by Mr. Girish Khandagale to take over
the assets and liabilities of proprietorship firm Girish
Enterprises. GEPL took over the business of Girish Enterprises
with effect from April 2011. GEPL undertakes infrastructure
development works such as roads, buildings, sewage treatment
plants, and reclamation works. GEPL obtains contracts mainly from
government departments, such as City and Development Corporation
and Maharashtra Industrial Development Corporation.
GRAFFITI LAMINATES: CRISIL Assigns 'B+' Rating on INR200MM Loans
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank
facilities of Graffiti Laminates Pvt Ltd. The rating reflects
GLPL's exposure to offtake related risks, working capital
intensive nature of its operations and below-average financial
risk profile marked by high gearing and modest debt protection
measures. These rating weaknesses are partially offset by its
promoters' extensive experience in the building material industry.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Term Loan 49 CRISIL B+/Stable
Cash Credit 30 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 121 CRISIL B+/Stable
Outlook: Stable
CRISIL believes GLPL will maintain its business risk profile
backed by its promoters' extensive experience in the building
material industry. The outlook may be revised to 'Positive' if the
firm stabilises its operations earlier than expected, leading to
healthy cash accruals and better financial risk profile.
Conversely, the outlook may be revised to 'Negative', if GLPL's
operating margin is lower than expected, the company undertakes
any large debt-funded expansion programme or its working capital
management deteriorates significantly, constraining its financial
profile.
Incorporated in 2013, GLPL is promoted by Mr. Kevinkumar Arvind
Bhuva, Mr. Raj Girish Khant and Mr. Sanjay Govind Vachchani. It is
expected to start commercial production of laminates from April
2014. The company is based in Morbi (Gujarat).
JYOTI POLYVINYL: CRISIL Assigns 'B+' Rating to INR10MM Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Jyoti Polyvinyl Ltd (JVPL; part of the
Jyoti group).
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Packing Credit 25 CRISIL A4
Inland/Import Letter
of Credit 25 CRISIL A4
Bank Guarantee 5 CRISIL A4
Cash Credit 10 CRISIL B+/Stable
The ratings reflect the Jyoti group's modest scale of operations
in the fragmented polyvinyl chloride (PVC) pipe manufacturing
industry, its working-capital-intensive nature of operations, and
the susceptibility of its operating margin to volatility in raw
material prices. These rating weaknesses are partially offset by
the extensive industry experience of the group's promoters, and
its healthy capital structure though on a modest net worth.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of JVPL and Jyoti Vinyl Ltd (JVL). This is
because the two companies, together referred to as the Jyoti
group, have a common management, business synergies, and fungible
funds. Also, they have provided cross corporate guarantees to each
other.
Outlook: Stable
CRISIL believes that the Jyoti group will continue to benefit over
the medium term from its promoters' extensive industry experience.
The outlook may be revised to 'Positive' if the group's scale of
operations increases significantly while it sustains its
profitability and comfortable capital structure. Conversely, the
outlook may be revised to 'Negative' if the Jyoti group's
financial risk profile deteriorates, most likely because of lower-
than-expected profitability, substantial working capital
requirements, or a large debt-funded capital expenditure.
Incorporated in 1992, JVL manufactures PVC pipes and sheets. JVPL,
incorporated in the same year, manufactures PVC profiles and
sheets. The group is promoted by the Jain family and has its
manufacturing facility at Vadodara (Gujarat).
JVPL, on a standalone basis, reported net profit of INR0.6 million
on net sales of INR85 million for 2012-13 (refers to financial
year, April 1 to March 31), against a net profit of INR1.8 million
on net sales of INR79 million for 2011-12.
K N INTERNATIONAL: CRISIL Reaffirms 'B-' Rating on INR10MM Loan
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of K N International Ltd
continue to reflect KNIL's small scale of operations and large
working capital requirements. These rating weaknesses are
partially offset by the benefits that KNIL derives from its
reputed clientele, healthy order book, and low gearing.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Bank Guarantee 180 CRISIL A4 (Reaffirmed)
Overdraft Facility 10 CRISIL B-/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that KNIL will continue to benefit over the medium
term from its established market position. The outlook may be
revised to 'Positive' if the company's liquidity improves further,
driven by increase in operating income, profitability, and net
cash accruals. Conversely, the outlook may be revised to
'Negative' if increase in working capital requirements
significantly weakens KNIL's liquidity, or if the company's scale
of operations and profitability decline.
Update
KNIL's revenue is expected to register a 2 to 3 per cent year-on-
year growth to around INR1.20 billion in 2013-14 (refers to
financial year, April 1 to March 31); and is also expected to
register moderate growth backed by a healthy order book of around
INR2.5 billion, to be executed in the next 24 months Over the past
two years, the company has shifted its focus from road
construction to construction of ash dykes and ponds mainly due to
higher margin and better revenue visibility. KNIL's operating
profitability is expected to remain moderate in the range of 8 to
9 per cent over the medium term.
The company's operations are relatively working-capital-intensive,
as reflected in its estimated gross current assets (GCAs) of
around 178 days as on March 31, 2013; the GCAs have been at
similar levels in the past. These GCAs emanate from the company's
inventory of 35 to 40 days and receivables of 50 to 60 days.
Furthermore, earnest money and fixed deposits have comprised of
over 33 to 40 per cent of the company's total assets (excluding
fixed assets) between 2008-09 and 2013-14. This is why majority of
the cash which the company generates from its business gets
utilised in aforementioned advances, and its bank limit remains
highly utilised.
KNIL's net worth is also expected to remain moderate at around
INR260.76 million, as on March 31, 2014. The company has low debt
levels towards funding its working capital requirements as it
requires non-fund based limits such as bank guarantees to execute
its projects; these, along with a moderate net worth, are expected
to result in low gearing of around .30 times as on March 31, 2014.
KNIL, promoted by Mr. Narendra Singh Yadav, began operations in
1988. The company has its facility in Sonebhadra (Uttar Pradesh)
and undertakes construction of roads and ash dyke plants. Its
clientele comprises leading companies such as National Thermal
Power Corporation Ltd, Reliance Infrastructure Ltd, and Hindalco
Industries Ltd (for ash dyke plants); and government bodies (for
roads construction).
KALINGA ENTERPRISES: CRISIL Reaffirms B+ Rating on INR90MM Loan
---------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Kalinga
Enterprises Pvt Ltd continues to reflect KEPL's small scale of
operations, and below-average financial risk profile, marked by
weak debt protection metrics, average total outside liabilities to
tangible net worth ratio, and modest net worth. These rating
weaknesses are partially offset by the extensive experience of
KEPL's promoters in the iron ore and steel products trading
business.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 90 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes KEPL will continue to benefit over the medium term
from its promoters' extensive experience in iron ore and steel
products trading. The outlook may be revised to 'Positive' if the
company improves its scale of operations and its profitability,
leading to higher-than-expected cash accruals. Conversely, the
outlook may be revised to 'Negative' if KEPL's financial risk
profile deteriorates, most likely because of lower-than-expected
profitability, large debt-funded capital expenditure, stretch in
working capital cycle, or significant financial support to group
entities.
Update
KEPL's revenues declined by around 15 per cent to INR369 million
in 2012-13 (refers to financial year, April 1 to March 31) from
INR437 million in 2011-12, driven by a slowdown in demand in the
industry. Moreover, the company reported an operating loss of
around INR8.4 million during the year on account of a loss of
INR9.1 million on sale of shares in Narbheram Power & Steel Pvt
Ltd. However, in 2013-14, the company has already recorded a
turnover of around INR680 million till February 28, 2013, and
could almost double its turnover over the previous year. CRISIL
believes that KEPL's operating margin will remain low at between 2
and 3 per cent over the medium term, because of its limited value
addition, low product differentiation and limited bargaining power
with suppliers and customers. However, CRISIL derives comfort from
the management's stance that it does not intend to make any
further investment in group companies and will only use funds to
grow its trading business, which are its core operations.
KEPL's financial risk profile is expected to be below-average,
marked by high total outside liabilities to tangible net worth
ratio of 2.75 times and small net worth of INR8 million as on
March 31, 2014. The company's debt protection metrics continue at
weak levels with the interest coverage and net cash accruals to
total debt ratios expected at 1.7 times and 0.05 times,
respectively, for 2013-14. The company is expected to maintain its
moderate debt protection metrics in the near term. KEPL has
moderate working capital requirements as indicated by average
utilisation of its bank lines at 54 per cent over the six months
through February 2014.
KEPL was originally incorporated in 2006 as Srinathji Iron Pvt
Ltd; the name was changed in May 2009. Since 2010-11, KEPL trades
in iron ore and steel products and also provides transportation
services to its customers on a case-to-case basis. Its operations
are managed by its current directors'Mr. Amit Gupta and Mr. Arup
Gupta.
KHUSHI EXIM: CRISIL Lowers Rating on INR140MM Loan to 'B+'
----------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Khushi Exim Pvt Ltd to 'CRISIL B+/Stable' from 'CRISIL BB-
/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Proposed Cash 140 CRISIL B+/Stable (Downgraded
Credit Limit from 'CRISIL BB-/Stable')
The rating downgrade reflects the deterioration in KEPL's business
risk profile, as reflected in the decline in the operating income
to INR0.71 billion in 2012-13 (refers to financial year, April 1
to March 31) from INR1.25 billion in 2011-12. The decline was
because of the company's venture into retail sales while
continuing its wholesale operations. In 2013-14, KEPL registered
operating revenue of around INR0.8 billion until February 2014,
largely comprising of retail sales. As a result of the shift in
the business model, the company's working capital requirements
also increased as reflected in its inventory of 74 days as on
March 31, 2013, as against 22 days a year earlier. Its receivables
as on March 31, 2013, were also high at 83 days.
The rating also reflects KEPL's weak financial risk profile,
marked by weak debt protection metrics and a modest net worth, its
low profitability margins, and its exposure to increasing
competition because of high market fragmentation. These rating
weaknesses are partially offset by the extensive experience of the
company's promoters in the jewellery industry.
Outlook: Stable
CRISIL believes KEPL will continue to benefit over the medium term
from its promoters' extensive industry experience. The outlook may
be revised to 'Positive' if KEPL's cash accruals are more than
expected, leading to improvement in its liquidity and debt
protection metrics. Conversely, the outlook may be revised to
'Negative' if the company's liquidity deteriorates, most likely
due to a substantial increase in its working capital requirements
or low cash accruals.
KEPL was established in 2003 by Mr. Hiralal Jalan and his son, Mr.
Vikash Jalan, in Kolkata (West Bengal). The company is engaged in
wholesaling and retailing of gold jewellery, silver articles, and
diamond- and kundan-studded jewellery. It sells to retail
showrooms in Raipur (Chhattisgarh), Nagpur (Maharashtra), Indore
(Madhya Pradesh), Jamshedpur (Jharkhand), Ranchi (Jharkhand), and
a few other locations. It also has two retail outlets in Kolkata,
one for silver articles, which was started in October 2011, and
the other for gold jewellery and diamond- and kundan- studded
jewellery, which was started in June 2012.
KAPL reported a profit after tax (PAT) and net sales of INR1.9
million and INR0.71 billion, respectively, for 2012-13, against a
PAT of INR1.9 million on net sales of INR1.25 billion for 2011-12.
KINGFISHER AIRLINES: Nine Trademarks Put Up For Sale
----------------------------------------------------
The Times of India reports that Kingfisher Airlines lenders on
April 7 put on block nine trademarks of the grounded carrier to
recover dues running into crores of rupees.
TOI says the trademarks put on the block include Fly Kingfisher
and Fly Kingfisher (Label), both registered with KFA and each
having a validity of up to Jan. 10, 2017. Flying Models registered
with United Breweries (airline promoter) and valid up to Aug. 6,
2014 is also put up on sale, the report relates.
The others are Fly the Good Times and the Funliner (registered
with KFA and valid up to Aug. 6, 2014); the Kingfisher (Label)
registered with UB and valid up to Nov. 1, 2014; and the Flying
Bird Device, registered with UB and valid up to Nov. 5, 2014, SBI
Caps Trustees said in a public notice, TOI reports.
According to the report, SBI Caps has been tasked by a 17-member
consortium of lenders, led by SBI, to recover their dues running
into over Rs 7,500 crore in principal alone from Kingfisher
Airlines, promoted by Vjay Mallya.
"A notice has been issued under Rule 5 of the Security Interest
(Enforcement) Rules of 2002, for estimation of the market value of
trademarks pertaining to Kingfisher Airlines and for identifying
interested parties," it said, TOI reports.
TOI notes that the crippled carrier's other debt includes over Rs
13,000 crore in accumulated losses and unpaid salaries, taxes, and
vendor dues.
As part of the second loan restructuring in November, 2010, the
lenders forced Mallya to pledge brand Kingfisher for around Rs
4,500 crore, the report adds.
Headquartered in Mumbai, India, Kingfisher Airlines --
http://www.flykingfisher.com/-- formerly known as Deccan
Aviation Ltd., served about 35 domestic destinations with a fleet
of more than 40 aircraft, including Airbus jets and ATR 72
turboprops. It maintained bases in major cities such as Delhi and
Mumbai.
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 15, 2014, Bloomberg News said Kingfisher has grounded planes
since October 2012. The airline lost its operating license in
January last year after failing to convince authorities it
has enough funds to restart flights.
The airline defaulted on payments to lessors, creditors and
airports as losses widened amid rising fuel costs and competition.
Bloomberg said Mr. Mirpuri said in an e-mail on January 13 the
airline continues its efforts to recapitalize and restart
services.
As reported in the TCR-AP on Jan. 27, 2014, CRISIL's ratings on
bank loan facilities of Kingfisher Airlines Ltd continue to
reflect delays by KFAL in servicing its debt; the delays have been
caused by the company's weak liquidity and continued losses at the
operating level. Losses in the past six years have resulted in a
complete erosion of KFAL's net worth, leading to its weak
financial risk profile.
For 2012-13 (refers to financial year, April 1 to March 31),
KFAL reported a net loss of INR83.5 billion (INR23.3 billion for
2011-12) on net sales of INR5 billion (INR54.85 billion). For the
six months ended September 30, 2013, it reported a net loss of
INR18.72 billion (INR14.04 billion for the corresponding period
of 2012-13) on net revenues of INR0.0 (INR5.01 billion).
KINJAL CONSTRUCTION: CRISIL Reaffirms B+ Rating on INR250M Loans
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Kinjal Construction Co
continue to reflect the firm's exposure to risks related to its
tender-based activities and the susceptibility of its operating
margin to volatility in input prices. These rating weaknesses are
partially offset by the extensive experience of KCC's proprietor
in the civil construction business and the firm's moderate
financial flexibility because of support from group entities.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Bank Guarantee 50 CRISIL A4 (Reaffirmed)
Cash Credit 200 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 4.5 CRISIL B+/Stable (Reaffirmed)
Term Loan 45.5 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that KCC will benefit over the medium term from
the extensive industry experience of its proprietor and support
from its group entities. The outlook may be revised to 'Positive'
if KCC reports a significant and sustainable improvement in its
scale of operations while improving its financial risk profile.
Conversely, the outlook may be revised to 'Negative' in case of
substantial deterioration in the firm's financial risk profile
because of lengthening of working capital cycle or decline in
revenue or margins.
KCC was established as a proprietorship concern in 1994 by Mr.
Heeralal Doshi, and undertakes construction, repair, and
maintenance of buildings for various state government agencies,
such as the Public Works Department of Maharashtra. The firm also
undertakes road construction and maintenance for the Municipal
Corporation of Greater Mumbai and the Thane Municipal Corporation.
KRAFT LAND: ICRA Assigns 'B+' Rating to INR11cr Loans
-----------------------------------------------------
ICRA has assigned a long-term rating of [ICRA]B+ to INR9 crore
fund based limits and INR2 crore unallocated limits of Kraft Land
(India). ICRA has also assigned short term rating of [ICRA]A4 to
INR1 crore non fund based limits of KLI.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits 9.00 [ICRA]B+ assigned
Unallocated 2.00 [ICRA]B+ assigned
Non Fund Based Limits 1.00 [ICRA]A4 assigned
The assigned ratings factor in limited scale of operations of the
firm in its core business of international trading, resulting in
modest economies of scale, which coupled with the highly
competitive nature of the industry has resulted in modest
profitability indicators. Given the nature of the business in
which the company is operating, ICRA does not expect any
significant improvement in profitability indicators in the medium
term. Moreover, the ratings also factors in high customer
concentration risk as majority of the revenue is generated from
single customer. However, the assigned ratings favourably factor
in long experience of the promoter in trading business and
established relationship with key customer which results in repeat
order.
Going forward, the ability of the firm to scale up its revenues
while maintaining adequate margins and a prudent capital structure
will remain the key rating sensitivities.
Incorporated in the year 1987, Kraft Land (India) is a partnership
firm promoted by Mr. Dilbagh Singh Sachdeva. The firm is engaged
in trading of various products mainly steel utensils and derives
over 90 per cent of its revenues from exports to Ukraine. KLI has
its trading office located at Wazirpur Industrial Area, Delhi.
Recent Results
The firm reported a net profit after tax of INR0.48 crore on an
operating income of INR26.71 crore in FY2013 as against net profit
of INR0.39 crore on an operating income of INR24.01 crore in
FY2012.
MBM ENGINEERING: ICRA Assigns 'B+' Rating to INR16.75cr Loans
-------------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]B+' to the INR9.25
crore term loan facilities and the INR7.50 crore fund based
facility of MBM Engineering Infotech Limited. ICRA has also
assigned a short-term rating of [ICRA]A4 to the INR3.25 crore non-
fund based facilities of MEIL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan facilities 9.25 [ICRA]B+ assigned
Fund based facility 7.50 [ICRA]B+ assigned
Non-fund based
Facilities 3.25 [ICRA]A4 assigned
The assigned ratings consider the experience of the promoters in
the business of bearing component manufacture for more than three
decades; the steady improvement in MEIL's capital structure and
its well-diversified client base. The ratings also consider the
adverse impact of weak operating environment on the revenues and
profitability of MEIL during 2012-13 and in the current year, and
the likelihood of its revenue growth and accruals remaining
subdued in the near to medium term. The ratings also take into
account MEIL's high working capital intensity, with stretched
receivable position; its modest scale of operations, restricting
its bargaining power with customers and suppliers; and the fact
that a significant portion of MEIL's capital is employed in non-
operational assets, thereby impacting returns. The ratings however
positively consider the revenues from wind power generation, which
offers certain stability to the accruals.
MEIL is primarily engaged in manufacturing of bearing components
used in capital goods. Its facility is located near Chennai. It
caters to industrial segments such as paper, cement, windmills,
textiles, sugar, steel, and thermal power. The entity has been in
operation since 1974, when it was promoted by Mr. V.M.S Midha as a
proprietorship concern; the entity was converted to a public
limited concern in 2000.
Recent results
According to unaudited results, MEIL reported profit before
depreciation and taxes of INR0.3 crore on an operating income of
INR13.1 crore during the period April to December 2013. It
reported a net profit of INR1.7 crore on an operating income of
INR20.4 crore during 2012-13.
MIDLAND DIESEL: CRISIL Reaffirms 'B-' Rating on INR60MM Loans
-------------------------------------------------------------
CRISIL's ratings on the bank facilities of Midland Diesel Services
Pvt Ltd continue to reflect MDSPL's weak financial risk profile,
marked by a modest net worth, high total outside liabilities to
tangible net worth ratio, and inadequate debt protection metrics,
and its stretched liquidity with large working capital
requirements. These rating weaknesses are partially offset by the
extensive experience of the company's promoters in the diesel
generator industry, and its long-standing relationship with its
principal, Cummins India Ltd (Cummins).
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Bank Guarantee 20 CRISIL A4 (Reaffirmed)
Cash Credit 40 CRISIL B-/Stable (Reaffirmed)
Channel Financing 20 CRISIL B-/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that MDSPL's liquidity will remain constrained
over the medium term due to its working-capital-intensive
operations and large debt repayment obligations. The outlook may
be revised to 'Positive' if the company reports significantly
higher-than-expected accruals or there is sizeable equity
infusion, improving its overall financial risk profile.
Conversely, the outlook may be revised to 'Negative' in case of
deterioration in MDSPL's liquidity, most likely due to lengthening
of its working capital cycle.
Established in 1984, MDSPL is an authorised dealer and service
provider for Cummins diesel engines and generator sets and their
spares, for 8 districts in Vidharbha (Maharashtra) and 11
districts in Madhya Pradesh. MDSPL is based in Nagpur
(Maharashtra) and is promoted by Mr. S R Dixit and Mr. P R Dixit,
along with their family members.
For 2012-13 (refers to financial year, April 1 to March 31), MDSPL
reported a net profit of INR1.3 million on net sales of INR261.8
million, vis-a-vis a net profit of INR2.1 million on net sales of
INR265.9 million for 2011-12.
NAYAAGARH SUGAR: CRISIL Reaffirms D Rating on INR192.7MM Loans
--------------------------------------------------------------
CRISIL's rating on the bank facilities of Nayaagarh Sugar Complex
Ltd continues to reflect instances of delays by NSCL in servicing
its term debt. The company's bank facilities were restructured in
December 2013; despite the restructuring, there have been
instances of delays by the company in servicing its Funded
Interest Term Loan (FITL) because of its weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 108.6 CRISIL D (Reaffirmed)
Proposed Long Term
Bank Loan Facility 54.1 CRISIL D (Reaffirmed)
Term Loan 30 CRISIL D (Reaffirmed)
NSCL also has weak debt protection metrics and its operations are
susceptible to the risk of shortage of sugarcane. However, the
company benefits from its promoters' experience in the sugar
industry.
Update
NSCL reported profit after tax (PAT) of INR0.68 million on net
sales of INR198.3 million for 2012-13 (refers to financial year,
April 1 to March 31) the company reported PAT of INR12.4 million
on net sales of INR340.9 million for 2011-12. The decline in
operating revenue was largely on account of low capacity
utilisation; the company undertook crushing operations only for 67
days in 2012-13 against 89 days in the preceding year. In 2013-14,
the company booked revenue of around INR56.2 million for the nine
months through December 2013. NSCL had moderate net worth of
INR230.4 million, which along with low dependence on bank
facilities to fund working capital requirements, led to low
gearing of 0.86 times as on March 31, 2013. The company's debt
protection metrics remain below average, with net cash accruals to
total debt and interest coverage ratios of 5 per cent and 1.32
times, respectively, for 2012-13. The company's financial risk
profile is marked by weak liquidity. The company generated cash
accruals of INR9.1 million in 2012-13 against INR19.8 million in
2011-12. Though its bank facilities were restructured in December
2013 allowing moratorium of 12 months till March 2015 for
repayment of term loan, the restructuring terms require the
company to pay interest obligations from January 2015. NSCL has
delayed the interest obligations for the past two months.
NSCL was set up by the promoters of ECP Industries, an Odisha-
based industrial house, through the acquisition of a sick sugar
unit in 2004. NSCL has an installed crushing capacity of 1250
tonnes of sugarcane per day. The ECP group has business interests
in the valve, pressure regulator, and domestic liquefied petroleum
gas cylinder segments.
NEW DIAMOND: ICRA Reaffirms 'B+' Rating on INR44cr Loans
--------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B+ assigned to
the INR37.50 crore term loan facilities and INR6.50 crore fund
based limits of New Diamond Era.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 37.50 [ICRA]B+ reaffirmed
Fund based limits 6.50 [ICRA]B+ reaffirmed
The reaffirmation of the rating reflects the significant time and
cost overruns in completion of the ongoing project, with part of
the capacity yet to be commissioned. The rating is also
constrained on account of the highly leveraged capital structure
given the debt-funded nature of the project, the vulnerability of
the firm's profitability to foreign exchange fluctuations, and the
risks associated with being a partnership firm as significant
capital withdrawals could adversely impact the firm's capital
structure. ICRA notes that the repayment of debt has commenced
from April 2013, and therefore funding support from promoter group
remains important in the near term as the entire capacity is yet
to be commissioned; subsequent scaling up of operations remain
critical to achieve healthy profitability and coverage indicators.
The rating, however, favorably takes into account the favorable
demand prospects of synthetic diamonds and the healthy capacity
utilization of the installed capacities.
Established in 2011, New Diamond Era (NDE) is engaged in
production of CVD (Chemical Vapor Deposition) Carbon Stones (i.e.
synthetic diamonds). They could be used for cutting tools, as
semiconductors, as high-power transistors and in the jewellery
industry. The firm is part of the Bhatvari Group in Surat. The
promoters are engaged in varied businesses like restaurants,
textile manufacturing and diamond manufacturing. The firm has set
up a manufacturing facility at Sachin SEZ in Surat, Gujarat with
an installed capacity of 28,800 carat of synthetic diamond per
annum. It has partly commissioned the facility with an installed
capacity of 19,200 carat per annum operational as on December 2013
(of a total of 48 machines, the firm has installed and commenced
production on 32 machines).
NORTHERN INDIA: CRISIL Reaffirms 'B+' Rating on INR212MM Loans
--------------------------------------------------------------
CRISIL's ratings on the bank loan facilities of Northern India
Leather Cloth Manufacturing Company Pvt Ltd continue to reflect
NILCO's weak financial risk profile, marked by a modest net worth
and high gearing, its small scale of operations, and its
susceptibility to intense competition in the synthetic leather
industry. These rating weaknesses are partially offset by the
extensive industry experience of the company's promoters and its
established customer base marked by diversified end-user
industries.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 10 CRISIL B+/Stable (Reaffirmed)
Letter of Credit 40 CRISIL A4 (Reaffirmed)
Overdraft Facility 120 CRISIL B+/Stable (Reaffirmed)
Term Loan 58.4 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 23.6 CRISIL B+/Stable (Reaffirmed)
For arriving at its ratings, CRISIL has treated the unsecured
loans of INR22 million extended by NILCO's promoters as neither
debt nor equity. This is because these loans carry a lower
interest rate than the bank rate and are likely to be retained in
the business over the medium term.
Outlook: Stable
CRISIL believes that NILCO will continue to benefit over the
medium term from its established customer base, especially in
North India. The outlook may be revised to 'Positive' if NILCO
achieves substantial accruals while reducing its working capital
requirements, leading to an overall improvement in its financial
risk profile. Conversely, the outlook may be revised to 'Negative'
if the company's revenue or profitability declines significantly,
or if its working capital requirements increase considerably,
thereby adversely affecting its financial risk profile.
Update
NILCO's operating revenue improved in 2012-13 (refers to financial
year, April 1 to March 31) to around INR654 million from INR626
million in the previous year, driven by healthy demand and repeat
orders from its customers. In 2013-14, the company has registered
revenue of around INR412 million until December 2013. Its
operating profitability remained stable at 8.0 to 8.5 per cent.
NILCO's operations remained working capital intensive, reflected
in its gross current assets of 250 days as on March 31, 2013. The
working capital requirements were high as the company offered
substantial credit of over 90 days to its customers. The inventory
level also remained high because of the large variety of products
it manufactures. As a result, its average bank limit utilisation
over the 12 months through December 2013 was around 96 per cent.
NILCO has a below-average financial risk profile, marked by a
modest net worth of around INR100 million and high gearing of
around 2.9 times, as on March 31, 2013. The gearing has remained
over 2 times in the past three years. The company's debt
protection metrics were moderate, with interest coverage and net
cash accruals to total debt ratios at 1.40 times and 0.04 times,
respectively, for 2012-13.
Incorporated in 1980, NILCO manufactures polyvinyl chloride-coated
fabric, also known as synthetic leather, used in footwear,
furnishing, and sports goods, at its plant in Faridabad (Haryana).
P.K. FOUNDATION: CRISIL Reaffirms 'D' Rating on INR117.5MM Loans
---------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of P.K.
Foundation continues to reflect instances of delay by PKF in
servicing its debt; the delays have been caused by the trust's
weak liquidity. PKF has weak liquidity because of its low cash
accruals, which are a result of its nascent stage of operations
and slow ramp-up in admissions.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Term Loan 117.5 CRISIL D (Reaffirmed)
PKF also has a below-average financial risk profile, marked by a
small net worth, high gearing, and weak debt protection metrics.
However, PKF benefits from its trustees' extensive experience and
the healthy growth prospects of the education industry over the
medium term.
Update
PKF reported operating losses of INR6 million in 2012-13 (refers
to financial year, April 1 to March 31), against losses of about
INR5.6 million in the previous year, because of trust's nascent
stage of operations. PKF's financial risk profile remains below
average, marked by depressed net worth resulting from losses over
the short time span of operations and minimal addition to corpus
funds. This, along with high debt levels to fund its capex plans,
has translated into high gearing and weak debt protection metrics.
Due to substantial term loan obligations and low cash accruals,
the trust's liquidity is expected to remain under pressure over
the medium term.
For 2012-13, PKF reported a net loss of INR39 million on net sales
of INR27 million, against a net loss of INR15 million on net sales
of INR9.3 million for 2011-12.
About the Trust
PKF, an educational trust, was established in February 2009 by Mr.
Pratap Khandebharad. The trust offers courses in management,
computer applications, engineering, and architecture. It started
its first school for specially-abled children in June 2009 and a
Central Board of Secondary Education (CBSE) school in June 2010.
PKF commenced the first batch of its master of business
administration programme and its master of computer application
programme in June 2011, and the first batch of its engineering and
architecture programmes in June 2012. In 2013-14, the trust added
a CBSE-affiliated junior college admitting students at plus two
level. The institute is approved by All India Council for
Technical Education and is affiliated to University of Pune
(Maharashtra).
PLAZA COMPUTERS: ICRA Suspends 'B+' Rating on INR7cr Loan
---------------------------------------------------------
ICRA has suspended [ICRA]B+/[ICRA]A4 rating assigned to the INR7.0
Crore fund based and INR0.8 crore non-fund based facilities of M/s
Plaza Computers. The suspension follows ICRA's inability to carry
out a rating surveillance in the absence of the requisite
information from the company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit Facilities 7.00 [ICRA]B+ suspended
Non Fund Based
Facilities 0.80 [ICRA]A4 suspended
According to its suspension policy, ICRA may suspend any rating
outstanding if in its opinion there is insufficient information to
assess such rating during the surveillance exercise.
Plaza Computers was set up as a sole proprietorship firm by
Mr.Sudip Ranjan Goel in the year 1996. The firm has its production
unit in Delhi and is engaged in the manufacturing and export of
readymade garments for women viz; skirts, dresses, tops etc. The
firm's products are exported to USA and European countries
including Spain, France, Denmark, Sweden etc. In 2003, the
proprietor also started a company by the name PC Global
Merchandising Private Limited (PCGM) with its production unit at
Noida. PCGM is also in the business of manufacture and export of
garments.
SAGAR INDUSTRIES: ICRA Assigns 'B+' Rating to INR14.97cr Loans
--------------------------------------------------------------
A rating of [ICRA]B+ has been assigned to the INR14.70 crore fund-
based cash credit facility and INR0.27 crore fund-based term loan
facility of Sagar Industries.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 14.70 [ICRA]B+ assigned
Term Loan 0.27 [ICRA]B+ assigned
The assigned rating is constrained by the Sagar Industries' (SI)
weak financial profile characterized by weak coverage indicators
and thin profitability margins on account of limited value
addition in the business operations. The rating is further
constrained by the susceptibility of cotton prices to seasonality
and government regulations on MSP and export quota which together
with high competitive industry environment further exerts pressure
on margins. Further, being a partnership firm, any substantial
withdrawal from the capital account can have an adverse impact on
the capital structure of the firm.
The assigned rating however, favorably factors in the long
experience of partners in the cotton ginning industry and the
advantages arising from the firm's proximity to raw material
sources which ensures easy availability of raw cotton.
Incorporated in 2012, Sagar Industries. is engaged in ginning and
pressing operations. The firm is promoted and managed by Mr.
Piyush Shah, Mr Sevanti Shah along with other family members with
experience in the cotton ginning industry. The firm's
manufacturing facility is located at Bhavnagar in Gujarat and has
thirty eight ginning machine.
SHREENATHJI DWELLINGS: ICRA Puts 'B' Rating on INR20cr Term Loan
-----------------------------------------------------------------
ICRA has assigned an '[ICRA]B' rating to INR20.00 crore term loan
facility of Shreenathji Dwellings Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 20.00 [ICRA]B assigned
The assigned rating favourably factors in attractive location of
the project which has proximity to key city and commercial areas.
The rating also derives comfort from ability of the promoters to
provide support in case of short term fund mismatch and presence
of escrow mechanism with bank increasing transparency. The rating
is however constrained by project execution risks as the project
construction work is at initial stages, significant reliance on
customer advances for funding the project cost while majority of
the project area yet to be booked and considerable marketing risks
owing to the large size of project and slow pace of bookings post
official project launch. ICRA also notes the current slowdown in
the real estate market muting the near term booking prospects
which might impact profitability and competition from other
similar projects in the vicinity remain concerns for the project.
Going forward, timely completion of project without any major cost
overruns, accelerating sales bookings at adequate rates and
maintaining healthy collection efficiency will remain key rating
sensitivities.
Established in Nov 2004, SDPL is involved in real estate
development and currently developing a residential real estate
project in Varanasi, Uttar Pradesh. The company is a part of a
group which has several entities engaged in real estate
development in Varanasi. The group has executed a redevelopment
real estate project in Mumbai as well. The group also has
interests and various other entities engaged in fabric exports,
hotels etc.
SMT MACHINES: CRISIL Cuts Rating on INR131.5MM Loans to 'B-'
------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of SMT Machines India Ltd to 'CRISIL B-/Stable' from 'CRISIL
B/Stable', while reaffirming its rating on the company's short-
term facilities at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 130 CRISIL B-/Stable (Downgraded
from 'CRISIL B/Stable')
Letter of Credit 7.5 CRISIL A4 (Reaffirmed)
Term Loan 1.5 CRISIL B-/Stable (Downgraded
from 'CRISIL B/Stable')
The rating downgrade reflects the stretch in SMT's working capital
cycle because of inventory pile-up and delays in payments by
customers. Due to muted demand and delayed offtake from customers,
the company's inventory increased to 134 days as on March 31,
2013, from 89 days a year earlier. Moreover, delays in payments by
customers led to a further stretch in its working capital
requirements and SMT's debtors increased to 116 days as on March
31, 2013, from 83 days a year earlier.
The downgrade also reflects deterioration in the company's
financial risk profile on account of large debt contracted to fund
the incremental working capital requirements, which led to higher
interest outgo. As a result, SMT's interest coverage ratio
declined to 1.12 times in 2012-13 (refers to financial year, April
1 to March 31) from 1.84 times in 2011-12, while gearing increased
to 2.38 times as on March 31, 2013, from 2.0 times a year earlier.
The ratings reflect SMT's weak operating profitability owing to
increasing competition, end-user industry concentration, large
working capital requirements, and weak financial risk profile.
These rating weaknesses are partially offset by SMT's established
market position.
Outlook: Stable
CRISIL believes that SMT's credit risk profile will be supported
over the medium term by its promoters' extensive industry
experience. The outlook may be revised to 'Positive' in case of
improvement in the company's profitability and working capital
management, leading to improvement in its business and financial
risk profiles. Conversely, the outlook may be revised to
'Negative' in case of larger-than-expected increase in working
capital requirements, with further decline in financial risk
profile.
Set up in 1992, SMT is promoted by Mr. Surinder Kumar Mittal and
his family. It designs and manufactures steel rolling mill plants.
The company was originally incorporated under the name, Aman
Multilateral Pvt Ltd. It got its current name in the late 1990s.
It has an established customer base in the domestic as well as
overseas markets.
SOUNDARYA DECORATORS: ICRA Suspends D Rating on INR50.10cr Loans
----------------------------------------------------------------
ICRA has suspended the [ICRA]D rating outstanding on the INR0.10
crore term loans, the INR12.00 crore long term fund based
facilities, the INR30.00 crore long term non fund based facilities
and the INR8.00 crore long term non fund based facilities (sub
limit) of Soundarya Decorators Private Limited. ICRA has also
suspended the [ICRA]D rating outstanding on the INR8.00 crore
short term fund based facilities of SDPL.
SSZ COMMODITIES: CRISIL Reaffirms 'B+' Rating on INR300MM Loan
--------------------------------------------------------------
CRISIL's ratings on the bank facilities of SSZ Commodities Pvt Ltd
continue to reflect SSZ's established presence in the steel
trading business and its promoters' extensive experience. These
rating strengths are partially offset by its weak financial risk
profile, modest scale of operations in an intensely competitive
steel trading industry and vulnerability of margins to
fluctuations in foreign exchange (forex) rate and raw material
prices.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Import Letter of 300 CRISIL B+/Stable (Reaffirmed)
Credit Limit
Outlook: Stable
CRISIL believes that SSZ's business and financial risk profiles
will remain constrained over the medium term; however, it will
continue to benefit from its promoters' extensive industry
experience and diversified customer base. The outlook may be
revised to 'Positive' if the company reports significantly better-
than-expected growth in its revenues along with healthy operating
margin and cash accruals, leading to an improvement in its risk
coverage metrics, or its capital structure improves driven by
infusion of substantial capital. Conversely, the outlook may be
revised to 'Negative' if SSZ's cash accruals decline driven by a
dip in operating margin or forex losses, or its liquidity weakens
owing to a stretch in working capital cycle.
Update
The company's net sales declined by 37 per cent to around INR1.10
billion in 2012-13 (refers to financial year, April 1 to
March 31) on account of slowdown in demand for steel products in
the end user sectors such as infrastructure, automobile and
engineering/ fabrication, and high competition; however, its
revenue recovered in 2013-14 and is expected to grow by 12 to 15
per cent over the medium term driven by increased orders. The
company's operating margin is vulnerable to fluctuations in forex
rates and steel prices and has been volatile at 1.3 to 4.3 per
cent over the past three years through 2012-13. In 2012-13, its
margin has been at around 4.4 per cent; it is expected to remain
in the range of 4.0 to 4.5 per cent over the medium term.
The company's operations are moderately working capital intensive
as reflected in its estimated gross current asset (GCA) of 170
days as on March 31, 2013; the GCA days have been at similar
levels in the past. These GCA days emanates from the company's
inventory levels of around 80 days and receivables cycle of 40
days. As a result, the company's average bank limit utilisation
has been high at 70 per cent for the 12 months ended December
2013.
SSZ's net worth is also estimated to be small at INR12.0 million
to INR12.5 million, as on March 31, 2014 thereby limiting its
financial flexibility to meet any exigency. The company has high
debt towards funding its working capital requirements; this,
coupled with small net worth is estimated to result in high total
outside liabilities to tangible net worth ratio of around 2 times
as on March 31, 2014.
SSZ was incorporated in Mumbai in November 2009. It is promoted by
Mr. Sanjay Gupta, Mr. Zaheer Lokhandwala and Mr. Mohanlal Jatia.
The company is trading in steel plates and coils.
SURYA INDUSTRIES: CRISIL Reaffirms 'D' Rating on INR210MM Loans
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Surya Industries (SI;
part of the Guru Kirpa group) reflect delays by the group in
servicing its term debt, due to weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Bank Guarantee .2 CRISIL D (Reaffirmed)
Cash Credit 140 CRISIL D (Reaffirmed)
Proposed Long Term
Bank Loan Facility 50 CRISIL D (Reaffirmed)
Term Loan 19.8 CRISIL D (Reaffirmed)
The Guru Kirpa group also has a weak financial risk profile,
marked by high gearing and weak debt protection metrics, along
with working-capital-intensive operations. Moreover, the group
operates on a small scale in the intensely competitive rice
industry, and is susceptible to volatility in raw material prices.
However, the group benefits from the promoters' extensive industry
experience.
For arriving at its ratings, CRISIL has consolidated the business
and financial risk profiles of SI and its group company, Guru
Kirpa Foods Pvt Ltd. This is because both entities, together
referred to as the Guru Kirpa group, operate in the same line of
business, have operational linkages, and common promoters and
management.
The Guru Kirpa group, through its subsidiaries, is engaged in
hulling and milling of paddy and processing basmati rice. GKFPL
was founded by Mr. Subhash Chander in Vill Ghubaya in Jalalabad
(Punjab) in 2000. SI, a partnership firm, established in 2000 by a
group of locals in Jalalabad, was acquired by the Guru Kirpa group
in 2009.
The group, on a consolidated basis, reported a profit after tax
(PAT) of INR3.8 million on net sales of INR1400 million for 2012-
13 (refers to financial year, April 1 to March 31), against a PAT
of INR5.4 million on net sales of INR900 million for 2011-12.
SUSHITEX INDUSTRIES: CRISIL Reaffirms B Rating on INR305MM Loans
----------------------------------------------------------------
CRISIL's ratings on bank facilities of Sushitex Industries Private
Limited (SIPL; part of the Sushitex group) continue to reflect the
Sushitex group's below-average financial risk profile, marked by a
modest net worth, high gearing, and moderate debt protection
metrics. The ratings also factor in the group's modest scale of
operations in the highly fragmented textile industry, and the
working capital intensity of its operations. These rating
weaknesses are partially offset by the extensive experience of the
group's promoters in the textile industry and its established
relationships with customers.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Bank Guarantee 10 CRISIL A4 (Reaffirmed)
Cash Credit 100 CRISIL B/Stable (Reaffirmed)
Supplier Line of
Credit 25 CRISIL A4 (Reaffirmed)
Term Loan 205 CRISIL B/Stable (Reaffirmed)
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of SIPL and Sushitex International (SI),
together referred to as the Sushitex group. This is because of
significant operational and financial linkages between the two
entities.
Furthermore, CRISIL has treated unsecured loans of INR69.8 million
on the companies' books as on March 31, 2013, extended by the
promoters as neither debt nor equity, as these loans are likely to
remain in the business over medium term and the interest rate on
them is lower than that on the bank facilities.
Outlook: Stable
CRISIL believes that the Sushitex group will continue to benefit
over the medium term from the extensive experience of its
promoters in the textile industry. The outlook may be revised to
'Positive' if there is a substantial and sustained improvement in
the group's revenues and profitability, while it improves its
working capital cycle and debt protection metrics. Conversely, the
outlook may be revised to 'Negative' if the Sushitex group's
financial risk profile, particularly its liquidity, deteriorates,
most likely due to decline in its revenues or profitability, or
higher-than-expected capital expenditure, or a stretch in its
operating cycle.
Update
The Sushitex group's operating revenues improved to around INR710
million in 2012-13 (refers to financial year, April 1 to
March 31) from around INR629 million in 2011-12, registering a
healthy growth of around 13 per cent. The growth was due to better
capacity utilisation and healthy order flow from customers. The
group's operating margin, however, declined to 16.21 per cent in
2012-13 from 17.28 per cent in 2011-12.
The Sushitex group's operations remain working-capital-intensive,
as reflected in its gross current assets of around 234 days as on
March 31, 2013. The group has to maintain sizeable stock of raw
material and finished goods, which has resulted in a high
inventory level of 158 days as on March 31, 2013. The payables
have remained at 74 days as on March 31, 2013, as against 69 days
as on March 31, 2012. The debtors have increased to 76 days from
42 days over this period. On account of its working capital
requirements, the average utilisation of the Sushitex group's bank
limits has been high, at around 97 per cent for the 12 months
through October 2013.
The Sushitex group's financial risk profile remained below
average, marked by a high gearing of 2.76 times as on March 31,
2013. The group's debt protection metrics have remained moderate,
with interest coverage and net cash accruals to total debt ratios
at 1.86 times and 8 per cent, respectively, in 2012-13. The group
also had a small net worth of around INR184 million as on March
31, 2013. Sushitex
For 2012-13, the Sushitex group reported a profit after tax (PAT)
of INR22.9 million on an operating income of INR710 million,
against a PAT of INR23.1 million on net sales of INR628.9 million
for 2011-12.
SI, established in 1980, is a partnership firm engaged in
manufacturing fabrics used for shirting. SIPL, incorporated in
2011, undertakes similar activities. The Sushitex group's
manufacturing facilities are at Tarapur (Maharashtra). Its day-to-
day operations are managed by Mr. Harish Arya along with his
family members.
YASH ENTERPRISES: CRISIL Reaffirms 'B' Rating on INR60MM Loan
-------------------------------------------------------------
CRISIL's rating on the bank facilities of Yash Enterprises
continues to reflect the firm's below-average financial risk
profile marked by a small net worth, high gearing, and weak debt
protection metrics. The rating also factors in the firm's
geographical concentration and small scale of operations in a
fragmented industry. These rating weaknesses are partially offset
by its moderate order book and the promoters' extensive experience
in the civil construction industry.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Bank Guarantee 27 CRISIL A4 (Reaffirmed)
Cash Credit 60 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that YE will continue to benefit from its moderate
order book and its promoters' extensive industry experience over
the medium term. The outlook may be revised to 'Positive' if the
firm registers substantial growth in its scale of operations and
cash accruals, and improves its working capital management.
Conversely, the outlook may be revised to 'Negative' if YE's cash
accruals, financial risk profile and liquidity weaken with a
significant decline in its revenue or profitability.
Update
YE's operating income of INR100.9 million in 2012-13 (refers to
financial year, April 1 to March 31) was lower than CRISIL's
expectation due to delayed commencement of work for one of its
projects. However, the firm's operating profitability of 17.5 per
cent was better-than-expected, resulting in cash accruals in line
with CRISIL's expectation. YE's revenue could improve to around
INR160 million for 2013-14, backed by its moderate order book
position.
YE's financial risk profile continues to be below-average, marked
by a small net worth of INR29 million, high gearing of 5.65 times
as on March 31, 2013 and weak debt protection metrics with
interest coverage and net cash accruals to total debt ratios at
1.8 times and 0.02 times, respectively, for 2012-13. The firm's
financial risk profile is expected to remain below-average over
the medium term, constrained by its expected low cash accruals and
large working capital requirements.
YE's liquidity remains stretched, with low cash accruals and large
working capital requirements, which are partially support by the
promoters' funds.
YE was established as a proprietorship firm in Borivali, Mumbai
(Maharashtra) in 1999 by Mr. Vipul C Shah. In 2009, the firm was
reconstituted as a partnership concern, with Mr. Vipul C Shah and
Mrs. Chandrika Vipul Shah as partners. YE undertakes civil
construction and interior works for the Maharashtra government,
and solely operates in Mumbai.
YE reported, on a provisional basis, a profit after tax (PAT) of
INR4.0 million on a net operating income of INR100.9 million in
2012-13 (refers to financial year, April 1 to March 31); and a PAT
of INR2.8 million on a net operating income of INR147.8 million in
2011-12.
=========
J A P A N
=========
MT. GOX: Australians Join Class Action to Recover Lost Bitcoin
--------------------------------------------------------------
Chris Griffith at The Australian reports that Australians are
among angry bitcoin users taking legal action to recover millions
of dollars in cash and virtual currency lost when Japan's Mt Gox
exchange crashed in February.
The Australian says at least two Australians are part of a class
action being prepared by London legal firm Selachii aimed at
recovering lost money and bitcoin. Australians also are among
those who have lost hundreds of bitcoins.
According to the report, Coffs Harbour-based Pantelis Roussakis
said he had lost 222 bitcoins. They cost him about AUD50,000-
AUD60,000 to buy and in December, when he sought to convert them
back to Australian dollars through Mt Gox, they were valued at
more than AUD$260,000.
After the crash, the exchange's chief executive, Frenchman Mark
Karpeles, announced in Tokyo that Mt Gox had filed for bankruptcy
protection, having lost up to 750,000 customers' bitcoins. The
exchange also lost 100,000 of its own bitcoins. In cash terms
US$474 million (AUD510m) was missing with a net liability of
US$63.6m. That figure was revised last month when Mt Gox
reportedly found 200,000 missing bitcoins in an offline digital
wallet.
Currently the Japan entity Mt Gox KK is protected from lawsuits
under bankruptcy law and Mr Karpeles is seeking similar immunity
under US Chapter 15 bankruptcy law for himself, the US arm of Mt
Gox and KK Tibanne, which operated the Mt Gox exchange. Read more,
The Australian notes.
About Mt. Gox
Bitcoin exchange MtGox Co., Ltd., filed a petition under Chapter
15 of the U.S. Bankruptcy Code on March 9, 2014, days after the
company sought bankruptcy protection in Japan. The bankruptcy in
Japan came after the bitcoin exchange lost 850,000 bitcoins valued
at about $475 million "disappeared."
The Japanese bitcoin exchange that halted trading in February
2014. It filed for bankruptcy protection in the U.S. to prevent
customers from targeting the cash it holds in U.S. bank accounts.
The Chapter 15 case is In re MtGox Co., Ltd., Case No. 14-31229
(Bankr. N.D. Tex.). The Chapter 15 Petitioner is Robert Marie
Mark Karpeles, the company's chief executive officer. Mr.
Karpeles is represented by John E. Mitchell, Esq., and David
William Parham, Esq., at BAKER & MCCKENZIE LLP, in Dallas, Texas.
The company said it has estimated assets of $10 million to $50
million and debts of $50 million to $100 million.
=====================
P H I L I P P I N E S
=====================
GULF BANK: Placed Under PDIC Receivership
-----------------------------------------
The Monetary Board (MB) placed the Gulf Bank (Rural Bank of
Lingayen, Inc.) under the receivership of the Philippine Deposit
Insurance Corporation (PDIC) by virtue of MB Resolution No. 543
dated April 3, 2014. As Receiver, PDIC took over the bank on April
4, 2014.
Gulf Bank is a five-unit rural bank with Head Office located at
No. 3 Avenida Rizal East St., Lingayen, Pangasinan. Its branches
are located in Alaminos, Dagupan City and Mangatarem in
Pangasinan; and in Baguio City. Latest available records show that
as of December 31, 2013, Gulf Bank had 12,991 accounts with total
deposit liabilities of PHP364.39 million. A total of 12,929
deposit accounts or 99.52% of the accounts have balances of
PHP500,000 or less and are fully covered by deposit insurance.
Total insured deposits amounts to PHP355.07 million or 97.44% of
total deposits.
PDIC said that upon takeover, all bank records shall be gathered,
verified and validated. The state deposit insurer assured
depositors that all valid deposits shall be paid up to the maximum
deposit insurance coverage of PHP500,000.00.
The PDIC also announced that it will conduct Depositors-Borrowers
Forums on April 9 and 10, 2014 to inform depositors of the
requirements and procedures for filing deposit insurance claims.
Claim forms will be distributed during the Forum. The schedules
and venues of the Forums will be posted on the bank premises and
in the PDIC website, www.pdic.gov.ph. The claim forms and the
requirements and procedures for filing are likewise available for
downloading from the PDIC website.
Depositors may update their addresses with the PDIC
representatives at the bank premises or during the Forums using
the Mailing Address Update Forms to be furnished by PDIC
representatives. Duly accomplished Mailing Address Update Forms
should be submitted to PDIC representatives accompanied by a
photo-bearing ID with signature of the depositor. Depositors may
update their addresses until April 10, 2014.
Depositors with valid deposit accounts with balances of
PHP50,000.00 and below need not file deposit insurance claims. But
depositors who have outstanding obligations with the Gulf Bank
including co-makers of the obligations, and have incomplete and/or
have not updated their addresses with the bank, regardless of
amount, should file deposit insurance claims.
For depositors that do not need to file deposit insurance claims,
PDIC will start sending payments by mail to their addresses based
on bank records by third week of April 2014.
For depositors that are required to file deposit insurance claims,
the PDIC will start claims settlement operations for these
accounts by fourth week of April. The schedule of the claims
settlement operations will be announced through notices to be
posted in the bank premises and other public places as well as
through the PDIC website, www.pdic.gov.ph.
According to the latest Bank Information Sheet (BIS) as of
December 31, 2013 filed by the Gulf Bank with the PDIC, the bank
is owned by Myrna C. Lopez (27.37%), Vanessa L. Dapul (26.55%),
Margarita C. Lopez (20.71%), Patricia C. Lopez-Torres (15.67%),
Joseph T. Li (4.33%) and Claro A. Calaguio (3.63%). Its Chairman
and President is Myrna C. Lopez.
================
S R I L A N K A
================
SRI LANKA: S&P Assigns 'B+' Rating to US$500MM Global Bond Issue
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' senior
unsecured debt rating to the US$500 million U.S.-dollar-
denominated global bond issue by the Democratic Socialist Republic
of Sri Lanka (B+/Stable/B).
The bonds mature in April 2019. They constitute direct,
unconditional, unsubordinated, and unsecured general obligations
of the issuer, and payments are backed by the full faith and
credit of Sri Lanka.
The sovereign credit ratings on Sri Lanka take into account the
country's relatively weak external liquidity, moderately high and
increasing external debt, and a high government debt and interest
burden. In addition, some of the country's political institutions
lack extensive checks and balances.
If Sri Lanka sustains its recent improvements in external
indicators, including a reduction in the current account deficit,
these rating constraints could ease.
The rating constraints are balanced against Sri Lanka's robust
growth prospects. Growth drivers include government measures to
reconstruct the northern districts, improve the finances of public
enterprises, and limit inflation to single digits.
===========
T A I W A N
===========
WAN HAI: Debt Position & Profit Margin Support Moody's Ba3 Rating
-----------------------------------------------------------------
Moody's Investors Service says that Wan Hai Lines Ltd's improved
debt position and profit margin in 2013 support its Ba3 rating and
B1 senior unsecured bond rating.
The senior unsecured bonds are issued by Wan Hai Lines (Singapore)
Pte Ltd and guaranteed by Wan Hai Lines Ltd.
The ratings outlook remains stable.
"Wan Hai's revenue declined by 5.2% year-on-year, given the
challenging operating environment in the shipping industry and
service rationalization undertaken by the company," says Chenyi
Lu, a Moody's Vice President and Senior Analyst.
Moody's expects Wan Hai's revenue to grow in the low- to mid-
single digits annually over the next 1-2 years, driven by the slow
recovery of the global economy as well as the company's continued
focus on the Intra-Asia market.
"Wan Hai's cost improvement measures resulted in an improvement in
its adjusted EBITDA margin to 17.0% in 2013 from 14.3% in 2011 and
16.4% in 2012," says Lu.
The company completed its new-build program in Q2 2013, where it
took deliveries of 14 new vessels to rejuvenate its fleet. Wan Hai
is therefore not facing any capital expenditure pressure.
Wan Hai has maintained prudent financial management. Despite
taking delivery of new vessels, which consumed its cash resources,
it used cash to pay down its debt.
Its unadjusted book debt declined to NT35.8 billion in 2013 from
NT37.4 billion in 2012.
Moody's uses 2012 charter-hire payments to estimate the company's
adjusted debt for 2013, and believes that its adjusted net
debt/EBITDA of around 3.6x is still in line with its Ba3 rating
level.
Moody's expects Wan Hai's adjusted net debt/EBITDA to decline to
3.0x-3.5x over the next 12-18 months as the new vessels generate
stronger EBITDA on improving demand for container services in
Asia.
Wan Hai's liquidity profile remains adequate. It had cash and cash
equivalents of NT$20.3 billion at end-2013, well above its short-
term maturing debt of NT$4.1 billion.
The principal methodology used in this rating was the Global
Shipping Industry published in February 2014.
Established in Taiwan in February 1965 as a lumber-transport
company, Wan Hai operates a fleet of 81 container vessels; it had
72 self-owned and nine chartered container vessels as of end-
September 2013. Its service network extends across Asia, including
major ports in Taiwan, Japan, China, Korea and ASEAN countries.
Wan Hai's shares were listed on the Taiwan Stock Exchange in May
1996.
*********
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 ***