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T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, April 23, 2014, Vol. 17, No. 79
Headlines
A U S T R A L I A
MERCURY CONSULTING: Farnsworth Shepard Appointed as Administrator
RADAR GROUP: Farnsworth Shepard Appointed as Administrator
I N D I A
ANDHRA GINNING: CRISIL Cuts Rating on INR110MM Loans to 'D'
ATR CARS: ICRA Lowers Rating on INR31.2cr Loans to 'B'
BIHAR RAFFIA: CRISIL Cuts Rating on INR251.5MM Loans to 'B+'
C.C.CONSTRUCTION: CRISIL Ups Rating on INR50MM Loans From 'C'
EAST INDIA: CRISIL Reaffirms 'B+' Rating on INR160MM Loans
ELLJAY TEXTILES: CARE Reaffirms 'B' Rating on INR7.03cr Bank Loan
FN INFRASTRUCTURE: CRISIL Reaffirms 'B' Rating on INR100MM Loans
GLOBAL ENERGYFOOD: CARE Reaffirms 'B' Rating on INR22.52cr Loan
HARSH EDUCATIONAL: ICRA Suspends 'B+' Rating on INR6cr Loan
HILLS CEMENT: ICRA Reaffirms 'D' Rating on INR129cr Loans
IQRA EDUCATIONAL: CARE Downgrades Rating on INR9.75cr Loan to 'D'
JAGMOHAN LAL: ICRA Suspends 'D' Rating on INR41cr Loan
JC GRAPHICS: ICRA Upgrades Rating on INR12cr Loans to 'B-'
KINGFISHER AIRLINES: Asked to Pay Outstanding Salaries to Pilots
MAGNUM CLOTHING: CRISIL Reaffirms 'B-' Rating on INR8.2MM Loans
NEO TEX: ICRA Assigns 'B+' Rating to INR3.50cr Cash Credit
PEARL PORTS: ICRA Assigns 'B+' Rating to INR15cr Term Loan
PLATINUM CERAMIC: CRISIL Assigns 'B' Rating to INR111.5MM Loans
PRAYAS STEELS: CRISIL Lowers Rating on INR50MM Loan to 'B'
RAVICAB CABLES: ICRA Lowers Rating on INR7.31cr Loans to 'D'
SANJAY RICE: ICRA Assigns 'B-' Rating to INR8.22cr Loans
SANSKARA CONBUILD: ICRA Places 'B+' Rating on INR30cr Loan
SARANYA ELECTRONICS: CRISIL Cuts Rating on INR70MM Loans to 'D'
SHINDE DEVELOPERS: CRISIL Reaffirms 'D' Rating on INR711.6M Loans
SITARAM MAHARAJ: CARE Reaffirms 'B' Rating on INR72.87cr Loan
SREE SELVAVINAAYAGA: CARE Reaffirms 'D' Rating on INR6.95cr Loan
SRI LAKSHMI: ICRA Assigns 'B+' Rating to INR12.92cr Loans
SUMANGAL PETROCHEMICALS: CARE Reaffirms B+ Rating on INR5cr Loan
SUMANGAL POLYMERS: CARE Reaffirms B+ Rating on INR20cr Bank Loan
SUPRAN EXIM: CRISIL Reaffirms 'B+' Rating on INR165MM Loans
SURAJ PULSES: CRISIL Reaffirms 'B' Rating on INR250MM Loans
ULTRA TRUST: CRISIL Reaffirms 'D' Rating on INR50MM Term Loan
UM KHONA: ICRA Suspends 'B+' Rating on INR7cr Loans
VAHINI POULTRIES: CRISIL Assigns 'B+' Rating to INR150MM Loans
VAMSADHARA RICE: ICRA Assigns 'B+' Rating to INR10cr Loans
VENKTASHWAR ENTERPRISES: CRISIL Cuts Rating on INR120M Loan to B-
N E W Z E A L A N D
AOTEAROA DISTILLERS: Buyers Line Up For 'Schnapps' Brand
FUND MANAGERS: Trustee Sues Ex-Managers of Failed Fund
- - - - -
=================
A U S T R A L I A
=================
MERCURY CONSULTING: Farnsworth Shepard Appointed as Administrator
-----------------------------------------------------------------
Adam Shepard of Farnsworth Shepard was appointed as administrator
of Mercury Consulting Solutions Pty Ltd on April 17, 2014.
A first meeting of the creditors of the Company will be held at
Farnsworth Shepard, Level 5, 2 Barrack Street, in Sydney on
May 2, 2014, at 10:30 a.m.
RADAR GROUP: Farnsworth Shepard Appointed as Administrator
----------------------------------------------------------
Adam Shepard of Farnsworth Shepard was appointed as administrator
of Radar Group Pty Ltd on April 17, 2014.
A first meeting of the creditors of the Company will be held at
Farnsworth Shepard, Level 5, 2 Barrack Street, in Sydney on
May 2, 2014, at 10:00 a.m.
=========
I N D I A
=========
ANDHRA GINNING: CRISIL Cuts Rating on INR110MM Loans to 'D'
-----------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Andhra Ginning Lane Private Limited to 'CRISIL D' from 'CRISIL
B/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 60 CRISIL D (Downgraded from
'CRISIL B/Stable')
Term Loan 50 CRISIL D (Downgraded from
'CRISIL B/Stable')
The rating downgrade reflects instances of delay by AGLPL in
servicing its debt; the delays have been caused by the company's
weak liquidity resulting from its large working capital
requirements.
AGLPL's profitability margins are susceptible to volatility in
cotton prices, and the company is exposed to changes in government
regulations and intense competition in the cotton ginning
industry. However, the company benefits from the extensive
experience of its promoters in the cotton industry.
AGLPL was established in 2008 by Mr. Kunkalaguntla Gopi Krishna
and Mrs. Kunkalaguntla Pallavi. The company is primarily engaged
in ginning and pressing of raw cotton. The company also trades in
cotton.
ATR CARS: ICRA Lowers Rating on INR31.2cr Loans to 'B'
------------------------------------------------------
ICRA has revised the long term rating assigned to INR31.20 crore
bank limits of ATR Cars Private Limited from [ICRA]B+ to [ICRA]B.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based limits 15.66 Revised to [ICRA]B
from [ICRA]B+
Non fund based 13.50 Revised to [ICRA]B
Limits from [ICRA]B+
Unallocated limits 2.04 Revised to [ICRA]B
from [ICRA]B+
The rating revision takes into account significant deterioration
in the financial profile of ATRCPL as reflected by dip in
operating profitability and cash losses during the year owing to
39% dip in operating income in FY13, which have eroded the net
worth of the company. The rating continues to be constrained by
the high competitive intensity amongst dealers of all OEMs
(Original Equipment Manufacturers) in the automobile dealership
business and the high working capital intensity of operations on
account of high inventory requirements of the dealership business.
The rating however favourably factors in the company's position as
an exclusive dealer in passenger cars of Volkswagen India Limited
in Coastal Andhra Pradesh (ATRCPL currently operates in 4
districts) and long track record of the promoters in the
automobile dealership business.
ICRA notes that the subdued demand outlook for passenger vehicles
could further exert pressure on the ability of ATRCPL to ramp up
revenues and improve profitability going forward.
ATRCPL, incorporated in 2009 by Mr. A.T Rayudu with ATR
Warehousing Private Limited as a majority stakeholder, is an
authorized dealer of VW in passenger cars. ATRCPL is engaged in
sales and service of vehicles along with sale of spare parts, has
showrooms and service centers at Visakhapatnam, Vijayawada,
Nellore and Rajmundhry. ATRCPL has exclusive dealership in
vehicles of VW in the coastal districts of Andhra Pradesh upto the
year 2015.
Recent Results
As per the audited results of FY2013, ATRCPL reported an operating
income and net loss of INR77.83 crore and INR5.97 crore
respectively as against an operating income and net loss of
INR128.08 crore and INR0.49 crore respectively in FY2012.
BIHAR RAFFIA: CRISIL Cuts Rating on INR251.5MM Loans to 'B+'
------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Bihar
Raffia Industries Ltd to 'CRISIL B+/Stable/CRISIL A4' from 'CRISIL
BB/Stable/CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 220 CRISIL B+/Stable (Downgraded
from 'CRISIL BB/Stable')
Letter of Credit 183 CRISIL A4 (Downgraded from
'CRISIL A4+')
Term Loan 31.5 CRISIL B+/Stable (Downgraded
from 'CRISIL BB/Stable')
The rating downgrade reflects CRISIL's belief that BRIL's
liquidity will remain weak over the medium term because of its
large incremental working capital requirements and debt-funded
capital expenditure (capex) plans. CRISIL also believes that the
company's profitability will remain under pressure over this
period, owing to adverse movements in raw material prices, thereby
impacting its cash accruals.
The company's working capital cycle has deteriorated in 2012-13
(refers to financial year, April 1 to March 31) with gross current
assets at 433 days as on March 31, 2013, against 331 days as on
March 31, 2011, mainly driven by stretched receivables and large
inventory. This has resulted in full utilisation of its working
capital limits. BRIL is also expected to have a capital
expenditure (capex) of INR40.0 million in 2014-15, which is likely
to be funded by a term loan of INR25.0 million and the balance by
internal accruals and unsecured loans from promoters.
Moreover, BRIL continues to provide a corporate guarantee of
INR695.8 million to the bank against the debt availed by its
associate companies. Hence, any adverse changes in the business
risk profiles of these companies may impact the credit risk
profile, including the liquidity, of BRIL over the medium term.
The ratings reflect BRIL's large working capital requirements, and
the susceptibility of its operating margin to volatility in raw
material prices and to intense competition in the manufacturing of
high-density polyethylene (HDPE) and polypropylene (PP) bags
industry. These rating weakness are partially offset by the
company's moderate business risk profile, backed by the extensive
experience of its promoters in the packaging industry and its
established customer base.
Outlook: Stable
CRISIL believes that BRIL will continue to benefit over the medium
term from its promoters' extensive industry experience and
established customer base. The outlook may be revised to
'Positive' if the company significantly scales up its operations
while maintaining its profitability, and improves its working
capital management. Conversely, the outlook may be revised to
'Negative' if BRIL's working capital cycle weakens or if it
undertakes any large debt-funded capex programme, leading to
deterioration in its financial risk profile.
BRIL, incorporated in 1998, manufactures bulk packaging materials
made of PP and HDPE. The company has two units, one each in
Jamshedpur (Jharkhand) and Satna (Madhya Pradesh), with a combined
capacity of 7500 tonnes per annum.
C.C.CONSTRUCTION: CRISIL Ups Rating on INR50MM Loans From 'C'
-------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
C.C.Construction 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 50 CRISIL A4 (Reaffirmed)
Cash Credit 35 CRISIL B-/Stable (Upgraded
from 'CRISIL C')
Proposed Long Term
Bank Loan Facility 15 CRISIL B-/Stable (Upgraded
from 'CRISIL C')
The rating upgrade reflects CCC's improved business risk profile
and its moderate financial risk profile. The firm's sales are
estimated to have almost doubled to INR130 million in 2013-14
(refers to financial year, April 1 to March 31) from INR66.3
million in 2012-13. Its revenue is estimated at INR129 million for
the 11 months through February 2014. CCC has recently bagged new
projects and currently has an order book of around INR350 million,
which will be executed over the next 12 to 18 months, giving it
revenue visibility over the medium term.
CRISIL also believes that CCC will maintain its moderate financial
risk profile over the medium term. The firm's gearing is estimated
to have remained low at 0.70 times as on March 31, 2014, and is
likely to remain at similar levels over the medium term on account
of the absence of any major debt-funded capital expenditure
(capex) plans. Its debt protection metrics remained above-average
with net cash accruals to total debt and interest coverage ratios
estimated at 24 per cent and 2.4 times, respectively, for 2013-14.
However the firm's financial flexibility continues to be stretched
reflected in almost full utilisation of its bank limits over the
12 months through February 2014 to support its working-capital-
intensive operations
The ratings reflect CCC's working-capital-intensive operations and
geographical and customer concentration in its revenue profile.
These rating weaknesses are partially offset by the firm's
moderate financial risk profile, marked by low gearing and
moderate debt protection metrics, though constrained by a small
net worth. The ratings also factor in the extensive experience of
CCC's partners in the civil construction industry.
Outlook: Stable
CRISIL believes that CCC will continue to benefit over the medium
term from the extensive industry experience of its partners. The
outlook may be revised to 'Positive' in case of substantial and
sustained improvement in the firm's revenues, while it maintains
its profitability margins. Conversely, the outlook may be revised
to 'Negative' if CCC's liquidity weakens, most likely because of
less-than-expected cash accruals, or substantial working capital
requirements, or any significant debt-funded capex.
CCC was set up as a partnership firm in 1982 by Mr. S N Choudhary
and his relatives. Currently, the firm's second-generation
promoters are actively involved in the business. Since its
inception, CCC has been engaged in civil construction activities
in north-eastern India, involving earth cutting, earth filling,
and bridgework for North East Frontier Railway (NEFR). Till date,
CCC has executed work orders only for NEFR.
CCC reported a profit after tax (PAT) of INR4.4 million on net
sales of INR66.3 million for 2012-13, against a PAT of INR6.0
million on net sales of INR94.4 million for 2011-12.
EAST INDIA: CRISIL Reaffirms 'B+' Rating on INR160MM Loans
----------------------------------------------------------
CRISIL's ratings on the bank facilities of East India Holdings Pvt
Ltd continue to reflect EIHPL's vulnerability of its margins to
volatility in raw material prices, large working capital
requirements and average financial risk profile, marked by
moderate net worth and gearing, however constrained by weak debt
protection metrics and liquidity. These rating weaknesses are
partially mitigated by extensive experience of its promoters in
the steel industry.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 100 CRISIL B+/Stable (Reaffirmed)
Letter of Credit 40 CRISIL A4 (Reaffirmed)
Proposed Long Term
Bank Loan Facility 60 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that EIHPL will continue to get funding support
from its promoters, but the capacity utilisation of its plant will
remain low because of shortage of power, over the medium term. The
outlook may be revised to 'Positive' if EIHPL increases its scale
of operations with improvement in its profitability, resulting in
more-than-expected cash accruals from operations, and if it
achieves better working capital management, resulting in better
liquidity. Conversely, the outlook may be revised to 'Negative' in
case of a stretch in the company's working capital cycle or lower-
than-expected accruals, resulting in further weakening of its
liquidity.
EIHPL, incorporated in 1999 and promoted by Mr. O P Agarwal,
manufactures mild steel ingots. The company has 39 tpd of
installed capacity.
EIHPL reported a net loss of INR25 million on net sales of INR1.71
billion for 2012-13, against a PAT of INR 11 million on net sales
of INR1.23 billion for 2011-12.
ELLJAY TEXTILES: CARE Reaffirms 'B' Rating on INR7.03cr Bank Loan
-----------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Elljay Textiles Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 7.03 CARE B Reaffirmed
Short-term Bank Facilities 2.00 CARE A4 Reaffirmed
Rating Rationale
The ratings continue to be constrained by the modest scale of
operations of Elljay Textiles Private Limited in the fragmented
cotton yarn industry, customer concentration risk, continuing net
losses and the weak debt protection metrics of the company.
The ratings do factor in the experience of the promoter in the
textile industry and the established track record of operations of
the company. The ratings further take note of the growth in income
in FY13 (refers to the period April 1 to March 31) and the
improvement in the company's operating cycle.
Going forward, the ability of ETPL to increase its scale of
operations and return to profits, while managing the raw material
fluctuation risk and broadening its customer base would be the key
rating sensitivities.
Elljay Textiles Private Limited was incorporated in 1995 by Mr
Jaganath and his son Mr J Thulsidharan with the objective of
manufacturing cotton yarn. Its manufacturing facilities are
located at Singampuri in the Sivagangai district of Tamil Nadu.
ETPL is engaged in the manufacture of cotton yarn of 84 and 92
counts finding application in hosiery, jari yarn, synthetic
fabric and in handloom and power looms. The company had installed
capacity of 25,552 spindles as on January 31, 2014.
ETPL incurred a net loss of INR0.27 crore on a total operating
income of INR27.13 crore in FY13 as compared with a net loss of
INR1.24 crore on a total operating income of INR16.96 crore in
FY12.
FN INFRASTRUCTURE: CRISIL Reaffirms 'B' Rating on INR100MM Loans
----------------------------------------------------------------
CRISIL's rating continues to reflect FN Infrastructure Pvt Ltd's
exposure to risks associated with execution, funding and
saleability of projects, and the company's weak financial risk
profile, marked by small net worth, high gearing, and weak debt
protection metrics; the rating also factors in FNIPL's
vulnerability to inherent risks and cyclicality in the Indian real
estate industry. These rating weaknesses are partially offset by
the experience of FNIPL's promoters in the real estate industry,
the funding support that it receives from them, and expected
timely reschedulement of term loan.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Project Loan 32 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 50 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 18 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that FNIPL will continue to benefit over the
medium term from the promoters' experience in the real estate
business in Mysore. The outlook may be revised to 'Positive' if
the company witnesses better-than-expected booking of units and
receipt of customer advances, leading to higher-than-expected cash
inflows. Conversely, the outlook may be revised to 'Negative' in
case FNIPL's liquidity deteriorates, most likely because of delays
in receipt of customer advances or time or cost overruns on
larger-than-expected prospective projects.
FNIPL was set up in June 2011 by Mr. M S Muralidharan, Mr.
Ravindra Bhatt, Mr. U M Gurushantappa, Mr. A V Shridhar, and Mr. S
R Swami. The company develops residential real estate in Mysore.
GLOBAL ENERGYFOOD: CARE Reaffirms 'B' Rating on INR22.52cr Loan
---------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Global Energyfood Industries Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 22.52 CARE B Reaffirmed
Short-term Bank Facilities 22.00 CARE A4 Reaffirmed
Rating Rationale
The ratings assigned to the bank facilities of Global Energyfood
Industries Private Limited continue to be constrained by the
company's relatively small scale of operations and weak financial
risk profile characterized by low net-worth, leveraged capital
structure, weak debt coverage indicators and elongated working
capital cycle.
The ratings continue to derive strength from the promoters'
experience in the confectionery manufacturing business.
GEIPL's ability to improve the liquidity profile and efficient
management of working capital cycle are the key rating
sensitivities.
Incorporated in the year 2011, Global Energyfood Industries Pvt
Ltd took over the business of M/s Global Energy Food Industries
established in the year 2005], a 100% exportoriented unit,
promoted by Mr Sureshkumar Bherwani and Universal Hotels Pvt Ltd,
engaged in the manufacturing and exporting of biscuits & other
confectionery items like candies, lollipops, etc, catering to
overseas markets primarily Dubai, West Africa, Hongkong, Ghana and
Sharjah.
During FY13 (refers to the period April 01 to March 31), GEIPL
posted a total operating income of INR62.32 crore (vis-a-vis
INR64.05 crore in FY12) and loss of INR0.26 crore (vis-a-vis
INR5.99 crore in FY12). Furthermore, the company has posted total
operating income of INR50.06 crore and PAT of INR2.19 crore during
9MFY14.
HARSH EDUCATIONAL: ICRA Suspends 'B+' Rating on INR6cr Loan
-----------------------------------------------------------
ICRA has suspended '[ICRA]B+' rating assigned to the INR6.00
crore, long term loans and unallocated facilities of Harsh
Educational Society. The suspension follows ICRA's inability to
carry out a rating surveillance in the absence of the requisite
information from the company.
According to its suspension policy, ICRA may suspend any rating
outstanding if in its opinion there is insufficient information to
assess such rating during the surveillance exercise.
HILLS CEMENT: ICRA Reaffirms 'D' Rating on INR129cr Loans
---------------------------------------------------------
ICRA has reaffirmed the '[ICRA]D' rating to the INR79 crore term
loans (revised from INR87.52 crore) and INR47 crore fund based
bank limits (revised from INR37 crore) of Hills Cement Company
Limited. ICRA has also reaffirmed the [ICRA]D rating to the INR3
crore non fund based bank limits of HCCL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 79 [ICRA]D reaffirmed
Fund Based Limits-
Cash Credit 47 [ICRA]D reaffirmed
Non-Fund Based
Limits 3 [ICRA]D reaffirmed
The reaffirmation of rating primarily takes into account HCCL's
continuous delays in timely servicing of debt obligations. The
rating also takes into consideration HCCL's low capacity
utilisation of its facility in FY13 because of delays in
stabilisation of the plant, which also led the company to approach
for debt structuring.
The rating takes note of HCCL's weak financial profile as
reflected by losses from operations and high working capital
intensity of the business. Given the scheduled commencement of
debt repayments from Q3FY15, the liquidity position of the company
is likely to remain stretched. ICRA, however, notes that the
company is eligible for a capital subsidy to the tune of around
INR40 crore as per the North East Industrial And Investment
Promotion Policy, 2007, out of which INR6 crore has already been
received in March'14. The timely receipt of the balance amount
would support the liquidity position of the company going forward.
The rating also takes note of HCCL's integrated operations with
its captive limestone and shale mines. In ICRA's opinion, ability
of the company to timely service its debt obligations would remain
a key rating sensitivity going forward.
Incorporated in 2003, Hills Cement Company Limited is engaged in
manufacturing of clinker and cement. The manufacturing facility of
the company is located in Jaintia Hills of Meghalaya, with 3.5
lakh tonnes per annum (TPA) clinker and 4 lakh TPA cement
manufacturing capacities. The company is also engaged in trading
of iron ore.
Recent Results
During FY13, HCCL had registered a net loss of INR28.24 crore on
the back of an operating income (OI) of INR66.71 crore as against
a PAT and OI of INR1.07 crore and INR147.52 crore respectively
during FY12.
IQRA EDUCATIONAL: CARE Downgrades Rating on INR9.75cr Loan to 'D'
-----------------------------------------------------------------
CARE revises the ratings assigned to the bank facilities of Iqra
Educational and Charitable Trust.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank 8.75 CARE D Revised
Facilities from CARE B+
Short-term Bank 1.00 CARE D Revised
Facilities from CARE A4
Rating Rationale
The revision in the ratings follows the delays in debt servicing
by IQRA Educational & Charitable Trust (IQRA) owing to strained
liquidity position as a result of cash deficit incurred by the
trust and ongoing debt funded capex.
IQRA Educational & Charitable Trust (IQRA) was founded in November
2008 under Indian Trust Act by Mr KS Hamza, with the main
objective of offering quality education. The trust manages an
engineering college in the name of Malabar College of Engineering
and Technology (MCET) at Thrissur, Kerala. The trust is affiliated
to the University of Calicut, Kerala, and has been approved by
AICTE, New Delhi. IQRA's trustees comprise close family members of
Mr KS Hamza. The total student strength is 1080 as of March 25,
2014. MCET provides BTech courses that include Civil Engineering
(CE), Computer Science & Engineering (CSE), Mechanical Engineering
(ME), Electronics & Communication Engineering (ECE) and MTech
courses that include Thermal Engineering and Computer Science
Engineering. From the academic year 2012-13, MCET has started
offering Automobile Engineering (AE).
IQRA has reported deficit of INR2.9 crore on a total operating
income of INR8.6 crore during FY13 (refers to the period April 01
to March 31) as compared with a deficit of INR1.6 crore on a total
operating income of INR6.4 crore during FY12.
JAGMOHAN LAL: ICRA Suspends 'D' Rating on INR41cr Loan
------------------------------------------------------
ICRA has suspended the '[ICRA]D' rating assigned to the INR41
crore bank facilities of Jagmohan Lal Gupta Estates Pvt Ltd. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
According to its suspension policy, ICRA may suspend any rating
outstanding if in its opinion there is insufficient information to
assess such rating during the surveillance exercise.
JC GRAPHICS: ICRA Upgrades Rating on INR12cr Loans to 'B-'
----------------------------------------------------------
ICRA has upgraded the long term rating assigned to INR12.00 crore
bank limits of JC Graphics Private Limited from [ICRA]D to
[ICRA]B-.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 2.53 Upgraded to [ICRA]B-
from [ICRA]D
Cash credit 9.00 Upgraded to [ICRA]B-
from [ICRA]D
Unallocated limits 0.47 Upgraded to [ICRA]B-
from [ICRA]D
The revision in rating factors in the timely debt servicing record
of JCPL over the last 12 months on the back of funds infused by
the promoters towards managing the liquidity of the company.
The rating continues to factor in the long track record of the
management in the packaging industry and established relationships
with a reputed clientele comprising VST Industries Limited,
Manaksia Limited and Godrej group of companies.
The rating however continues to be constrained by JCPL's modest
scale of operations (INR29.88 crore operating income during
9MFY14) in the business of manufacturing packaging products
(Cigarette shells); vulnerability of profits to fluctuation in raw
material prices (primarily white paper board) and competition from
other players in the fragmented paper & packaging industry.
The rating is also constrained by the high working capital
intensity of the business on account of high inventory holding,
which has resulted in full utilisation of bank limits (working
capital). Moderate profitability and working capital intensive
nature of operations has resulted in a leveraged capital structure
gearing of 2.22 times as on Dec. 31, 2013.
ICRA notes that with the company importing machinery with
capabilities to print on laminated boards, the operational scale
and profitability could witness growth going forward. The capital
structure will however remain stretched with additional debt of
~INR10.5 crore on the books of the company. The debt repayments
will commence after 2 years moratorium period. Timely
commissioning of the machinery, achieving healthy capacity
utilisation levels and managing of increased working capital
requirements will remain key sensitivities from a credit
perspective.
Incorporated in 1990, J C Graphics Private Limited in engaged in
printing and packaging of mosquito coil boxes, cigarette shells,
carton boxes etc. The company has its manufacturing facility at
Vijayawada and the plant has the capacity to manufacture 3.60
crore sheets/cartons annually.
Recent Results
JCG reported an operating income and net profit of INR37.71 crore
and INR0.16 crore respectively in FY2013 as against an operating
income and net profit of INR36.38 crore and INR0.19 crore
respectively in FY2012.
KINGFISHER AIRLINES: Asked to Pay Outstanding Salaries to Pilots
----------------------------------------------------------------
The Times of India reports that the Delhi high court has directed
the grounded Kingfisher Airlines to pay the outstanding salaries
of three of its ex-pilots who had moved the court over non-payment
of salaries.
Justice Rajiv Sahai Endlaw disposed off the case while asking the
company to pay the salaries with 10% interest till the month
salaries are due, the report says.
TOI relates that Captain Sanjeev Kumar Ahuja had filed the case
against Kingfisher Airlines seeking recovery of around INR26 lakh,
his outstanding salary for five months from the airline.
Moving the court through advocate MK Ghosh, Mr. Ahuja said that
because of the insecure financial environment, he had to undergo a
lot of hardships and liquidate all his assets to support his
family, according to the report.
The private airline has been grounded since October 2012.
Justice Endlaw asked Kingfisher Airlines to pay INR25,37,500 to
Ahuja with 10% interest. Along with Ahuja, the court also allowed
the plea of Captain Aaditya Jugal Garg and Captain Amar Bhatia to
get their outstanding salaries.
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).
MAGNUM CLOTHING: CRISIL Reaffirms 'B-' Rating on INR8.2MM Loans
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Magnum Clothing Pvt Ltd
continue to reflect MCPL's below-average financial risk profile
marked by high gearing and weak debt protection metrics,
vulnerability to volatility in raw material prices, and exposure
to intense competition in the garments export markets. These
rating weaknesses are partially offset by the benefits that MCPL
derives from its established relationship with key customers and
its promoters' extensive experience in the garments export
business.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Bill Purchase-
Discounting Facility 100 CRISIL A4 (Reaffirmed)
Letter of Credit 30 CRISIL A4 (Reaffirmed)
Long Term Loan 8.2 CRISIL B-/Stable (Reaffirmed)
Packing Credit 30 CRISIL A4 (Reaffirmed)
Post Shipment Credit 5 CRISIL A4 (Reaffirmed)
Outlook: Stable
CRISIL believes that MCPL will continue to benefit over the medium
term from its promoters' extensive experience in the garments
export business. The outlook may be revised to 'Positive' if the
company registers significant improvement in its capital structure
and working capital management, thereby improving its liquidity.
Conversely, the outlook may be revised to 'Negative' if the
company generates lower-than-expected cash accruals or undertakes
a large debt-funded capital expenditure (capex) programme,
adversely affecting its debt servicing ability.
Update
MCPL registered operating income of INR537.9 million for the nine
months ended December 31, 2013. It is likely to post moderate
revenue growth of more than 5 per cent in 2013-14 (refers to
financial year, April 1 to March 31) supported by healthy demand
from customers. The company's operating margin is expected to
remain at 4.5 to 5.5 per cent over the medium term. The operating
margin is constrained by intense competition in the export
markets.
MCPL's financial risk profile remains weak, marked by weak capital
structure and average debt protection metrics. The capital
structure is marked by net worth of INR76.5 million and gearing of
3.6 times as on March 31, 2013. The company plans moderate debt-
funded capex of around INR18 million over the medium term for
expanding its manufacturing facility. The capex will be funded
through term loan of around INR15 million and through internal
accruals. The gearing is expected to remain high over the medium
term because of large working capital requirements, which are
funded primarily through debt.
MCPL's liquidity is stretched, as reflected in high bank limit
utilisation, averaging 91.8 per cent over the 12 months through
February 2014. However, it is likely to generate annual cash
accruals of around INR20 million over the medium term, which will
be adequate to meet its term loan obligations.
MCPL was set up in 1987 by Mr. Chandra Prakash Singhee. It
manufactures and exports garments for women and children. The
company is based in Chennai (Tamil Nadu).
NEO TEX: ICRA Assigns 'B+' Rating to INR3.50cr Cash Credit
----------------------------------------------------------
A rating of [ICRA]B+ has been assigned to the INR3.50 crore* cash
credit facility of Neo Tex Yarns Private Limited. A rating of
[ICRA]A4 has also been assigned to the INR3.50 crore short term
fund based facility of NTPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 3.50 [ICRA]B+ assigned
Bill Discounting 3.50 [ICRA]A4 assigned
Rating Rationale
The assigned rating is constrained by the weak financial risk
profile of the company characterized by thin profit margins given
the trading nature of the company's operations, very high gearing
levels and modest coverage indicators. The assigned ratings are
further constrained by the intense competitive pressures,
vulnerability of profitability to volatility in yarn price
movements and government regulations as well as to adverse foreign
exchange fluctuations with respect to exports; though exposure to
the latter is largely mitigated to the extent of hedging
undertaken by the company. ICRA, however, favorably factors in the
long standing experience of the promoters of more than a decade in
the textile industry and healthy growth in scale of operations in
the current fiscal owing to strong demand for cotton yarns in
China.
Neo Tex Yarns Private Limited (earlier known as Nexus Neo System
Exim Pvt. Ltd.), incorporated in 2003, is a closely held company
and is currently managed by Mr. Vijay Kumar Patel. The Company is
into merchant exports of textile products (primarily cotton yarn)
from India to various countries in the Far East, Middle East,
Europe, China and Latin America. NTPL sources cotton yarns from
various mills in South India, Maharashtra, etc.
Recent Results
During FY2013, NTPL reported an operating income of INR30.32 crore
(as against INR18.84 crore during FY 2012) and profit after tax of
INR0.16 crore (as against INR0.15 crore during FY 2012). During
FY14 (unaudited provisional financials), the company reported
operating income of INR99.52 crore and profit before depreciation
& tax (PBDT) of INR1.87 crore.
PEARL PORTS: ICRA Assigns 'B+' Rating to INR15cr Term Loan
----------------------------------------------------------
ICRA has assigned a long term rating of [ICRA]B+ to the INR15.00
Cr term loan and reaffirmed the short term rating of [ICRA]A4 for
the INR6.25 crore (reduced from INR11 crores)non fund based limits
of Pearl Ports & Warehousing Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits- 15.00 [ICRA]B+ (assigned)
Term Loan
Non Fund Based
Limits 6.25 [ICRA]A4 (reaffirmed)
The rating action takes into account PPWPL's moderate scale of
operations with operating income of INR21.54 Cr and the company's
low net worth which limits its financial flexibility. The rating
is also tempered by the low transaction volumes handled by the
company which coupled with high variable and fixed charges paid to
Central Warehousing Corporation (CWC) has resulted in moderate
profitability of the company over the years. The rating also
factors in the stiff competition from Concor and other ICDs in
Bangalore which in turn limits revenue growth and pricing
flexibility of PPWPL.
However, the ratings draw comfort from the company's experienced
promoters with significant experience in the industry, a strategic
alliance with CWC which allows the company to market and sell
various services to clients as well as a diversified and reputed
customer base of the company.
The company was incorporated as Darshan Overseas Pvt Ltd in 1996
and was involved in trading of imported carpets. Later in 2006,
the management ventured into the business of running an Inland
Container Depot (ICD) and the name of the company was changed to
Pearl Ports and Warehousing Private Limited (PP&WPL). The company
is managed by Mr. Ramil P.Shah and family. The company had also
ventured into trading of Transfer of Development Rights (TDR)
certificates in FY 2011 to improve its operating margins but has
now largely exited the business and is concentrating on the core
business of running ICDs.
Recent Results
The company recorded an operating income of INR21.54 Cr and net
profit of INR0.44 Cr in FY 2013 as opposed to an operating income
of INR24.18 Cr and net profit of INR0.10 Cr in FY2012.
PLATINUM CERAMIC: CRISIL Assigns 'B' Rating to INR111.5MM Loans
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Platinum Ceramic Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Term Loan 71.5 CRISIL B/Stable
Bank Guarantee 14 CRISIL A4
Cash Credit 40 CRISIL B/Stable
The ratings reflect PCPL's susceptibility to risks associated with
its ongoing project and its expected weak capital structure during
the initial stage of operations. These rating weaknesses are
partially offset by its promoters' extensive experience in the
ceramic tiles industry.
Outlook: Stable
CRISIL believes that PCPL will benefit over the medium term from
its promoters' extensive industry experience. The outlook may be
revised to 'Positive' if PCPL stabilises operations at its
proposed plant on time and reports significant revenue and
profitability. Conversely, the outlook may be revised to
'Negative' if the company faces significant delay in commencement
of operations, generates lower-than-expected cash accruals during
the initial phase of operations, or witnesses substantial increase
in working capital requirements resulting in weak liquidity.
Incorporated in July 2013, PCPL is setting up a 31,500-tonnes-per-
annum ceramic wall glazed tiles plant at Morbi in Rajkot
(Gujarat). The company is promoted by Rajkot-based Kundaria and
Ransaria families. Its plant is expected to commence commercial
production in May 2014.
PRAYAS STEELS: CRISIL Lowers Rating on INR50MM Loan to 'B'
----------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Prayas Steels Pvt Ltd to 'CRISIL B/Stable' from CRISIL
B+/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 50 CRISIL B/Stable (Downgraded
from 'CRISIL B+/Stable')
The downgrade reflects CRISIL's belief that continued sluggish
demand in end-user sectors such as construction, automotive, and
consumer durables will lead to stretched payments from customers
and significant pressure on PSPL's business risk profile. The
expected weak demand, intense competition, and decline in customer
base because of reduced sales to customers who tend to stretch
payments will keep the company's topline muted over the medium
term. During the first 10 months of 2013-14 (refers to financial
year, April 1 to March 31), the company achieved turnover of about
INR510.8 million. CRISIL believes that unrelenting slowdown in
demand and decline in customer base will continue to constrain
PSPL's growth and profitability over the medium term. The sluggish
demand has also led to inventory build-up resulting in higher
dependence on bank borrowings and a moderate total outside
liabilities to tangible net worth (TOLTNW) ratio of 2.26 times as
on March 31, 2014. CRISIL believes that higher reliance on debt
and weak profitability may weaken PSPL's financial risk profile by
putting pressure on its interest coverage and TOLTNW ratios over
the medium term.
The rating reflects PSPL's average financial risk profile marked
by leveraged capital structure and weak debt protection metrics,
and modest scale of operations in the intensely competitive steel
trading business leading to low profitability. These rating
weaknesses are partially offset by the extensive experience of
PSPL's promoters in the steel trading business and the company's
efficient working capital management.
Outlook: Stable
CRISIL believes that PSPL will continue to benefit over the medium
term from its promoters' extensive experience in the steel
industry. The outlook may be revised to 'Positive' if the company
registers more-than-expected growth in revenue and profitability,
leading to improvement in its financial risk profile. Conversely,
the outlook may be revised to 'Negative' if PSPL's financial risk
profile weakens because of lengthening in working capital cycle or
if the company registers low revenue and profitability margins.
Set up in 2005, PSPL is promoted by Mr. Dev Dutt and his family
members. The company trades in iron and steel products. It sells
its products mainly to clients manufacturing automotive
components.
PSPL reported a profit after tax (PAT) of INR0.8 million on net
sales of INR1113 million for 2012-13, against a PAT of INR1.0
million on net sales of INR1506 million for 2011-12.
RAVICAB CABLES: ICRA Lowers Rating on INR7.31cr Loans to 'D'
------------------------------------------------------------
ICRA has revised the long term rating assigned to the INR7.31
crore (revised from INR9.92 crore) fund based bank facilities of
Ravicab Cables Private Ltd from [ICRA]B to [ICRA]D.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits- 3.31 [ICRA]D; Revised from
Term Loan [ICRA]B
Fund Based Limits- 4.00 [ICRA]D; Revised from
Cash Credit [ICRA]B
The rating revision factors in the stretched liquidity position of
the company, as evidenced by instances of delays in term loan
principal repayment as well as servicing of interest component.
ICRA notes that the management is undertaking various measures to
improve sales and profitability and plug any leakages in
operational performance, reduce its receivables and improve its
working capital cycle-the success of these steps is a key
sensitivity factor for an improved liquidity profile.
Ravicab Cables Private Limited (RCPL), was floated in the year
1999 in Bangalore for manufacturing electrical wires and cables
used for domestic and industrial applications for electrical and
other wiring works. The promoters have set up a new manufacturing
unit at Bidadi Industrial Area in FY2013 to increase the
production capacity. Major user segments include Railway
Signalling Cables, Industrial Cables and Building Wires.
Recent Results
RCPL reported an operating income of INR10.39 crore and a loss of
INR1.13 crore for 2012-13 as compared to an operating income of
INR7.74 crore and a loss of INR0.28 crore for 2011-12.
SANJAY RICE: ICRA Assigns 'B-' Rating to INR8.22cr Loans
--------------------------------------------------------
ICRA has assigned an [ICRA]B- rating to the INR4.20 crore term
loan and INR4.02 crore (including an untied amount of INR1.27
crore) cash credit facilities of Sanjay Rice Mills Pvt. Ltd. ICRA
has also assigned an [ICRA]A4 rating to the INR0.28 crore untied
non fund based limit of SRMPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limit- 4.20 [ICRA]B- assigned
Term Loan
Fund Based Limit- 2.75 [ICRA]B- assigned
Cash Credit
Fund Based Limit- 1.27 [ICRA]B- assigned
Cash Credit (Untied)
Non-Fund Based 0.28 [ICRA]A4 assigned
Limit-Bank Guarantee
(Untied)
The ratings take into account the risks related to execution of
the ongoing project within the budgeted cost and scheduled time
frame, the risks in relation to stabilisation of the plant as per
the expected operational parameters post commissioning, and the
low entry barriers and highly fragmented nature of the rice
milling industry characterized by intense competition among a
large number of players which keeps profitability under check.
ICRA also takes note of the company's exposure to the inherent
risks in agro based business, such as change in government
policies and agro climatic conditions affecting the harvest of
paddy, which in turn impacts raw material availability. However,
the ratings favourably take into account the limited funding risks
of the project due to achievement of debt tie-up and disbursement
of a significant portion of the term loan, the experience of the
promoters in the rice milling business through another group
entity and its proximity to raw material sources as the proposed
plant site is favourably located amidst a major paddy growing
area.
SRMPL is currently in the process of setting up a rice milling
unit, with a proposed de-husking capacity of 6MT/ hour. The
project site is located at Cooch Behar in West Bengal. It was
initially incorporated as a proprietorship firm 'Sanjay
Industries' in 2000. However, subsequently the constitution of the
entity was changed to 'private limited' and it was renamed to
Sanjay Rice Mills Pvt. Ltd. in 2011.
SANSKARA CONBUILD: ICRA Places 'B+' Rating on INR30cr Loan
----------------------------------------------------------
The rating of '[ICRA]B+' has been assigned to the INR30 crore
proposed term loans of Sanskara Conbuild Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 30.00 [ICRA]B+ assigned
Rating Rationale
The assigned rating is constrained by the significant execution
risk for the company with the project 'Kalpvan Phase 1' being in
early stages of construction with completion targeted for October
2015 ; the high funding risk with the debt requirements for the
project yet to be tied-up; and the low current booking status
translating into high marketing risk for the project. The rating
is further constrained by the geographical concentration risks
arising from SCPL's dependence on the projects located in Rajkot
(Gujarat); exposure to the cyclicality inherent in the real estate
sector and vulnerability of profitability to steel and cement
price variations.
The rating, however, favourably factors in the long experience and
established track record of the promoters in real estate industry
and significant land bank holdings of the promoters in Rajkot and
nearby places.
Sanskara Conbuild Private Limited was established in November 2011
and is engaged in the construction of residential and commercial
spaces in Rajkot, Gujarat. The company is promoted by Mr, Pravin
Pipaliya, Mr. Hitesh Sakhiya and Mr. Kishor Sakhiya. The promoters
have an experience of over a decade in the real estate industry
and belong to three Rajkot based reputed real estate groups namely
Kelviper Reality Pvt. Ltd. (Formerly known as Copper Group); J K
Realty Group and D&I Group.
SARANYA ELECTRONICS: CRISIL Cuts Rating on INR70MM Loans to 'D'
---------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Saranya Electronics Pvt Ltd to 'CRISIL D/CRISIL D' from 'CRISIL
B+/Stable/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Bank Guarantee 10 CRISIL D (Downgraded from
'CRISIL A4')
Cash Credit 60 CRISIL D (Downgraded from
'CRISIL B+/Stable')
The rating downgrade reflects SEPL's overdrawn cash credit
facility for more than 30 days; the irregularities have been
caused by the company's weak liquidity.
SEPL has a weak financial risk profile marked by its small net
worth, high gearing and weak debt protection metrics, and has
large working capital requirements. However, the company benefits
from its promoters' extensive experience in the electronic and
telecommunication equipment industry.
SEPL was incorporated in 2003 by Mrs. C Sailaja and Mrs. K Radhika
to take over the business of the partnership firm - Sri
Communications, which was established in 1998. SEPL develops
electronic and telecommunication equipments mainly for the Indian
Railways. The company is based in Hyderabad, Andhra Pradesh.
SHINDE DEVELOPERS: CRISIL Reaffirms 'D' Rating on INR711.6M Loans
-----------------------------------------------------------------
CRISIL ratings on the bank facilities of Shinde Developers Pvt Ltd
continue to reflect instances of delay by SDPL in servicing its
debt; the delays have been caused by the company's weak liquidity
arising out of tightly matched cash accruals with debt repayments
and significant stretch in its working capital cycle especially
its receivables.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Bank Guarantee 450 CRISIL D (Reaffirmed)
Cash Credit 150 CRISIL D (Reaffirmed)
Term Loan 61.6 CRISIL D (Reaffirmed)
Working Capital
Demand Loan 50 CRISIL D (Reaffirmed)
SDPL also has a below-average financial risk profile, marked by
its modest net worth and a high gearing, modest small scale of
operations with geographical concentration. The company, however,
benefits from the extensive industry experience of SDPL's
promoters in the civil construction and infrastructure development
industry.
CRISIL had assigned its 'CRISIL D/ CRISIL D' ratings to the bank
facilities of SDPL as on Feb. 11, 2014.
SDPL was established in 1997 by Mr. Sunil Shinde. The company
undertakes civil construction activates such as irrigation
projects, road development, highway maintenance and storm water
drainage for the Maharashtra state government as well as private
players in Maharashtra. The company is also engaged in providing
logistic services.
SITARAM MAHARAJ: CARE Reaffirms 'B' Rating on INR72.87cr Loan
-------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Sitaram Maharaj Sakhar Karkhana Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 72.87 CARE B Reaffirmed
Rating Rationale
The ratings continue to be constrained by the relatively small
scale of operations coupled with partially integrated nature of
the sugar plant of Sitaram Maharaj Sakhar Karkhana (Khardi)
Limited, financial risk profile marked by the highly leveraged
capital structure and re-schedulement of term loans on account of
delay in commencing commercial operations. The rating also factors
in the cyclical and seasonal nature of the sugar industry and
associated agroclimatic risks.
The rating, however, derives strength from the experience of the
promoters in the sugar industry, and strategic location of SMSKL's
sugar plant.
The ability of SMSKL to stabilize its operations going forward
with the procurement of the envisaged volume of sugarcane at
envisaged price and improvement in the debt protection metrics
are the key rating sensitivities.
Sitaram Maharaj Sakhar Karkhana (Khardi) Ltd was incorporated by
Mr Baban Sonawale, Chairman under the guidance of chief promoter
Mr Kalyanrao Kale in May 1999 to undertake sugar and sugar-related
production at Khardi village, in Pandhrapur District, Solapur
Maharashtra. Post fund tie-ups and receiving all the necessary
approvals, over the period FY10 (refers to the period April 1 to
March 31) to FY12, SMSKL set up a partially integrated sugar
manufacturing facility with the installed capacity of 2,500 tonnes
of cane crushed per day (TCD) and bagasse based co-generation
plant with an installed capacity of 10 mega-watts (MW). SMSKL
commenced commercial operations from the sugar season (SS) 2012-
2013 and crushed about 80,000 metric tonnes (MT) of sugar cane in
the first crushing season. The co-generation unit commenced
commericial operations from the sugar season (SS) 2013-14. During
SS 2013-2014 SMSKL crushed about 1.21 lakh MT of sugar cane.
During FY13, SMSKL has not made any sugar sales. During 11MFY14
(refers to the period April 1 to February 28) the company has
registered a total revenue of INR42.73 crore from sugar sales.
SREE SELVAVINAAYAGA: CARE Reaffirms 'D' Rating on INR6.95cr Loan
----------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Sree Selvavinaayaga Charitable And Educational Trust.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 6.95 CARE D Reaffirmed
Rating Rationale
The rating continues to be constrained by the on-going delays and
irregularities in debt servicing by Sree Selvavinaayaga Charitable
and Educational Trust due to stressed liquidity position of the
trust and delays in fee collection.
Sree Selvavinaayaga Charitable and Educational Trust was
established in the year 2001 by Mr S Chockalingam Pillai, Managing
Trustee and his family, in Vellore district, Tamil Nadu. The
trust operates two schools namely Nag Matriculation Higher
Secondary School (NMHSS) and Nag Vidhyashram School (NVS) (CBSE).
NMHSS was started in the year 2007 and is affiliated to the
Directorate of Matriculation Schools. NVS commenced classes in
2008 and is affiliated to the CBSE Department, New Delhi.
NMHSS and NVS provide education from kindergarten to high school.
The activities of the SSCET are managed by Mr S Chockalingam
Pillai, who has 7 years of experience in the education sector.
Mr S Chockalingam Pillai also has interests in leather business
with two companies engaged in the manufacture of finished leather
and shoe uppers.
SSCET has registered a PAT of INR0.04 crore on a total operating
income of INR4.40 crore in FY12 (refers to the period April 1 to
March 31) as compared to a PAT of INR0.24 crore on a total
operating income of INR5.5 crore in FY11.
SRI LAKSHMI: ICRA Assigns 'B+' Rating to INR12.92cr Loans
---------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]B+' to INR12.92
crore fund based limits of Sri Lakshmi Egg Farming Private
Limited. ICRA has also assigned ratings of [ICRA]B+/[ICRA]A4 to
INR7.08 crore unallocated limits of SLEFPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based limits 12.92 [ICRA]B+ assigned
Unallocated limits 7.08 [ICRA]B+/[ICRA]A4 assigned
The assigned ratings is constrained by the moderate scale of
operations in the poultry farming business; weak financial profile
as reflected by high gearing and weak coverage indicators and
cyclicality associated with the Indian poultry industry &
resultant volatility in prices of eggs.
The rating is also constrained by high sensitivity of company's
profitability to fluctuations in feed costs (mainly maize and soya
prices); vulnerability of revenues to disease outbreak which has
impacted the revenues in FY2014 and the high competitive pressure
which adds to the volatility in the business. ICRA however
positively factors in the experience of the management in layer
poultry farming and the healthy demand outlook for the layer
segment of the industry on account of increasing acceptance of
eggs as a daily meal component.
Going forward, company's ability to scale up operations by
managing its working capital requirement would be the key rating
sensitivity from the credit perspective.
Sri Lakshmi Egg Farming Private Limited was formed as a
partnership firm in 1989 and subsequently incorporated as a
private limited company in 2012. The firm is engaged in the
business of commercial layer poultry farming for the sale of table
eggs with a total installed capacity of 613,200 layer birds. The
firm has various sheds at 6 locations in East Godavari District of
Andhra Pradesh.
Recent Results
The company reported profit after tax of INR0.18 crore on an
operating income of INR40.60 crore during FY2013 as against profit
after tax of INR0.13 crore on an operating income of INR33.61
crore during FY2012.
SUMANGAL PETROCHEMICALS: CARE Reaffirms B+ Rating on INR5cr Loan
----------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Sumangal Petrochemicals Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 5 CARE B+ Reaffirmed
Short-term Bank Facilities 10 CARE A4 Reaffirmed
Rating Rationale
The ratings assigned to the bank facilities of Sumangal
Petrochemicals Private Limited continues to be constrained by weak
financial risk profile characterized by low profitability
margins, moderate capital structure, weak debt coverage indicators
and working capital intensive nature of operations. The ratings
further continue to be constrained by the supplier concentration
risk and operations in a highly competitive and fragmented
industry.
The aforesaid constraints continue to far outweigh the strengths
derived from experienced promoters and financial support.
The ability of SPPL to improve its profitability margins along
with efficient management of the operating cycle, is the key
rating sensitivity.
Sumangal Petrochemicals Private Limited was incorporated in 2005
(though it commenced operations by absorbing the business of M/s
Sumangal Petrochemicals, a proprietorship firm in January 2013).
SPPL is engaged in trading and distribution of plastic raw
material mainly Polyethylene and Polypropylene, produced by
multinational and domestic companies. The company procures
primarily from Haldia Petrochemicals Limited and the rest is
imported from UK & Middle East. SPPL has its storage facility at
Bhiwandi and Vasai.
Another group company of SPPL, Sumangal Polymers (rated CARE B+),
is also engaged in similar activity and has been in the business
since 2009. While considering the operational data of SPPL in
FY13, CARE have considered the combined financials of M/s Sumangal
Petrochemicals, proprietorship firm along with the private limited
company financials. However, for the balance sheet data CARE have
considered the position of the Pvt. Ltd. company as on March 31,
2013, as the proprietorship firm ceases to exist.
Moreover, for past financials/operational details CARE have
considered financials only of the proprietorship firm as the
private limited company had negligible operation therein.
During FY13, SPPL reported an operating income of INR145.96 crore
(vis-a-vis INR120.02 crore in FY12) and PAT of INR0.36 crore (vis-
a-vis INR0.35 crore in FY12). During 9MFY14, the company has
posted a total income of INR105.44 crore.
SUMANGAL POLYMERS: CARE Reaffirms B+ Rating on INR20cr Bank Loan
----------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Sumangal Polymers.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 20 CARE B+ Reaffirmed
The rating assigned by CARE is based on the capital deployed by
the proprietor and the financial strength of the entity at
present. The rating may undergo change in case of withdrawal of
the capital or the unsecured loans brought in by the proprietor in
addition to the financial performance and other relevant factors.
Rating Rationale
The rating assigned to the bank facilities of Sumangal Polymers
(SP) continues to be constrained by weak financial profile
characterized by low profitability, moderate capital structure,
weak debt coverage indicators and working capital intensive nature
of operations. The rating further continues to be constrained by
supplier concentration risk, proprietorship nature of the entity
and operations in a highly competitive and fragmented industry.
The aforesaid constraints continue to far outweigh the strengths
derived from experienced promoters and demonstrated support
through infusion of funds.
The ability of SP to improving the overall scale of operations
along with efficient management of the working capital cycle are
the key rating sensitivity.
Sumangal Polymers (SP) was established in 2009, by Mr Yogesh
Parekh as a proprietorship firm. SP is engaged in trading and
distribution of plastic raw material mainly PVC & Resin produced
by multinational and domestic companies. The firm procures more
than 95% of its materials domestically from Chemplast Sanmar
Limited and the rest is imported from UK & Middle East. SP
has its storage facility in Silvassa, Daman & Vapi.
Another group company of SP, Sumangal Petrochemicals Private
Limited (CARE B+/A4), is also engaged in similar activity and has
been in the business since 2005.
During FY13 (refers to the period April 1 to March 31), SP
reported operating income of INR249.54 crore (up from INR209 crore
in FY12) and PAT of INR0.60 crore (up from INR0.46 crore in FY12).
During 9MFY14, the entity has posted total income of INR318.14
crore.
SUPRAN EXIM: CRISIL Reaffirms 'B+' Rating on INR165MM Loans
-----------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Supran Exim
Pvt Ltd continues to reflect SEPL's large working capital
requirements, and its below-average financial risk profile, marked
by a small net worth, high gearing, and average debt protection
metrics. The rating also factors in the company's exposure to
regulatory changes and intense competition in the seafood
processing industry, and the susceptibility of its profitability
margins to volatility in raw material prices and foreign exchange
rates. These rating weaknesses are partially offset by the
extensive experience of SEPL's promoters in the seafood industry.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 10 CRISIL B+/Stable (Reaffirmed)
Export Packing Credit 150 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 5 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that SEPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if there is a sustained
improvement in the company's working capital management, or if it
substantially improves its capital structure supported by equity
infusion by its promoters. Conversely, the outlook may be revised
to 'Negative' in case of a steep decline in SEPL's profitability
margins, or significant deterioration in its capital structure
caused most likely because of a stretch in its working capital
cycle or large debt-funded capital expenditure.
SEPL, an export-oriented unit, was promoted in December 2012 by
Mr. Rama Rao. The company processes and exports shrimps.
SURAJ PULSES: CRISIL Reaffirms 'B' Rating on INR250MM Loans
-----------------------------------------------------------
CRISIL has reaffirmed its rating on the long-term bank facilities
of Suraj Pulses at 'CRISIL B/Stable' while reassigning its rating
on the firm's short-term bank facilities at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Bank Guarantee 10 CRISIL A4 (Reassigned)
Cash Credit 130 CRISIL B/Stable (Reaffirmed)
Cash Credit 120 CRISIL B/Stable (Reaffirmed)
The ratings continue to reflect the firm's weak financial risk
profile marked by high gearing and weak debt protection metrics,
and its exposure to intense competition in the agricultural
commodities industry. These rating weaknesses are partially offset
by the extensive industry experience of the firm's promoters.
Outlook: Stable
CRISIL believes that Suraj Pulses will continue to benefit over
the medium term from its promoters' experience in the agricultural
commodities industry. The outlook may be revised to 'Positive' if
Suraj Pulses reports significant cash accruals, driven by
improvement in profitability, or if its promoters infuse
significant capital leading to improvement in its financial risk
profile. Conversely, the outlook may be revised to 'Negative' in
case of deterioration in the firm's financial risk profile,
particularly its liquidity, driven by low cash accruals, or
lengthening in working capital cycle, or capital withdrawal by
promoters.
Update
Suraj Pulses' revenue increased to an estimated INR1.8 billion in
2013-14 (refers to financial year, April 1 to March 31) from
INR536.2 million in 2011-12, registering an estimated compound
annual growth rate of about 80 per cent. The robust revenue growth
was on account of increased tenders from government, particularly
under the Public Distribution System (PDS). Currently, the firm is
operating at full capacity and is likely to register a modest
revenue growth of 10 per cent in 2014-15. Its operating
profitability remains constrained and is expected at 2.0 to 2.2
per cent over the medium term.
The firm's financial risk profile remains weak, marked by high
gearing and weak debt protection metrics. The gearing was at 10.34
times as on March 31, 2013. Its net cash accruals to total debt
(NCATD) ratio was 0.01 time and interest coverage ratio was 1.1
time for 2012-13. Despite high revenue growth, the NCATD ratio
remains weak because of low cash accruals as the promoters
withdrew 75 per cent of the firm's net profits during the year. In
the absence of any significant capital infusion, CRISIL believes
that Suraj Pulses' financial risk profile will remain weak,
constrained by large working capital borrowings. The firm's
liquidity remains stretched, but is supported by nil term debt
obligations and no debt-funded capital expenditure plan.
Formed in 2002 as a partnership concern, Suraj Pulses is promoted
by Raipur (Chhattisgarh)-based Mr. Rohit Goyal and six other
partners. It processes various agricultural commodities such as
moong dal, chana dal, rahar dal, urad dal, mutter dal, and masoor
dal.
For 2012-13, the firm reported a book profit of INR2.15 million on
net sales of INR1310 million, against a book profit of INR2.7
million on net sales of INR536.2 million for 2011-12. The firm, on
a provisional basis, registered turnover of INR1.8 billion for
2013-14.
ULTRA TRUST: CRISIL Reaffirms 'D' Rating on INR50MM Term Loan
-------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Ultra Trust
continues to reflect instances of delay by UT in servicing its
debt; the delays have been caused by UT's weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Term Loan 50 CRISIL D(Reaffirmed)
Also, UT has a small scale of operations, faces geographical
concentration risk, and is susceptible to regulatory changes and
intense competition in the education sector. However, the firm
benefits from its promoter's extensive experience in the education
sector.
UT, located in Madurai (Tamil Nadu), was set up in 1981 by
Professor K R Arumugam. It offers undergraduate, post-graduate,
and diploma courses in pharmacy, nursing, physiotherapy, and
engineering.
In 2012-13 (refers to financial year, April 1 to March 31), UT
reported a surplus (excess of income over expenditure) of INR28.8
million on income of INR224 million, against a surplus of INR63
million on income of INR197 million in 2011-12.
UM KHONA: ICRA Suspends 'B+' Rating on INR7cr Loans
---------------------------------------------------
ICRA has suspended '[ICRA]B+' rating to INR5.76 crore fund based
(cash credit) and INR1.24 crore proposed bank facilities and
[ICRA]A4 assigned to the INR1.24 crore proposed bank facilities of
UM Khona & Company. The suspension follows ICRA's inability to
carry out a rating surveillance in the absence of the requisite
information from the firm.
VAHINI POULTRIES: CRISIL Assigns 'B+' Rating to INR150MM Loans
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' ratings to the bank
facilities of Vahini Poultries Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 50 CRISIL B+/Stable
Long Term Loan 100 CRISIL B+/Stable
The rating reflects VPPL's working capital intensive nature of
operations and to inherent risks associated with the poultry
industry. The rating also factors VPPL's weak financial profile
marked by small networth, high gearing and weak debt protection
metrics. These rating weaknesses are partially offset by the
benefits that VPPL derives from its promoters' extensive
experience in the poultry business.
Outlook: Stable
CRISIL believes that VPPL will benefit from promoter's extensive
experience in the poultry industry. The outlook may be revised to
'Positive' if the company increases its scale of operations and
operating profitability on a sustained basis or if there is
significant equity infusion by the promoters improving the capital
structure and financial risk profile. Conversely the outlook may
be revised to 'Negative' in case of lower than expected revenues
and profitability or if the company undertakes a debt funded
capital expenditure programme resulting in weakening of its
financial risk profile.
Established in 2010 by Dr. Vidyasagar Reddy and his associates,
VPPL is engaged in the production of commercial eggs. The poultry
farm is located near Mehbubnagar in Andhra Pradesh.
During 2012-13 (refers to financial year, April 1 to March 31),
VPPL reported a net loss of INR6 million on net sales of INR23.4
million.
VAMSADHARA RICE: ICRA Assigns 'B+' Rating to INR10cr Loans
----------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]B+' to INR5.60
crore fund based limits and INR4.40 crore unallocated limits of
Vamsadhara Rice Industries.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based Limits 5.60 [ICRA]B+ assigned
Unallocated Limits 4.40 [ICRA]B+ assigned
The assigned rating is constrained by intensely competitive nature
of rice industry with presence of several small-scale players
which further increases the pressure on the operating margins;
weak financial risk profile of the firm characterized by dip in
revenues owing to decrease in volume of sales, high gearing
levels, low profitability & coverage indicators; and risks
inherent in a partnership nature of the firm. This apart, the
rating is also constrained by the susceptibility of profitability
& revenues to agro-climatic risks which impact the availability of
the paddy in adverse weather conditions. The rating however takes
comfort from the long track record of the promoters in the rice
mill business and favorable demand prospects for rice with India
being the second largest producer and consumer of rice
internationally.
Founded in the year 2005 as a partnership firm Vamsadhara Rice
Industries (VRI) is engaged in the trading & milling of paddy and
produces raw rice and boiled rice. The rice mill is located at
Janapadu village of Guntur district, Andhra Pradesh. The installed
production capacity of the rice mill is 4 tons per hour. The firm
also has cinema hall, 'Ganga Mahal' in piduguralla village of
Guntur district, Andhra Pradesh.
Recent Results
For FY2013, the firm reported an operating income of INR11.85
crore and operating profits of INR1.27 crore as against an
operating income of INR22.47 crore and operating profits of
INR1.19 crore in FY2012.
VENKTASHWAR ENTERPRISES: CRISIL Cuts Rating on INR120M Loan to B-
-----------------------------------------------------------------
CRISIL has downgraded the rating on the long-term bank facilities
of Venktashwar Enterprises to 'CRISIL B-/Stable' from 'CRISIL
B/Stable' while reaffirming the short-term ratings at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Bank Guarantee 20 CRISIL A4 (Reaffirmed)
Term Loan 120 CRISIL B-/Stable (Downgraded
from 'CRISIL B/Stable')
The downgrade reflects significantly lower-than-expected growth in
revenue due to continued muted demand, which resulted in the firm
registering net sales of INR42 million in 2012-13 (refers to
financial year, April 1 to March 31). The firm incurred net loss
of INR16 million in 2012-13 which eroded the net worth completely.
Due to significant losses, coupled with continued muted demand,
the financial risk profile of the firm is expected to weaken
further as reflected in expected negative net worth of about INR31
million as on March 31, 2014.
The downgrade also reflects the higher-than-expected working
capital requirements of the firm as reflected in gross current
assets (GCAs) of around 460 days as on March 31, 2013, which is
expected to remain in the range of 450 to 500 days over the medium
term. The GCAs are high owing to inventory of around 357 days and
receivables cycle of around 94 days.
The ratings reflect VE's nascent stage of operations, large
working capital requirements, weak financial risk profile, and its
exposure to risks related to the highly competitive and fragmented
granites industry. These rating weaknesses are partially offset by
the extensive experience of VE's promoters.
Outlook: Stable
CRISIL believes that VE will continue to benefit from the
extensive industry experience of its promoters, over the medium
term. The outlook may be revised to 'Positive' if the firm scales
up its operations leading to significantly higher-the-expected
cash accruals, resulting in improved financial risk profile or if
there is improvement in its working capital cycle. Conversely, the
outlook may be revised to 'Negative' if the firm is unable to
stabilise its operations and increase its revenue and
profitability, or if there is further deterioration in its capital
structure on account of larger-than-expected working capital
requirements or large debt-funded capex, thereby weakening its
financial risk profile.
VE is a partnership firm promoted by Mr. Ashish Agarwal and his
wife Mrs. Sheetal Agarwal. The Udaipur (Rajasthan)-based firm is
engaged in open-cast mining of granite blocks from a leased mine
located in the Barmer district of Rajasthan.
====================
N E W Z E A L A N D
====================
AOTEAROA DISTILLERS: Buyers Line Up For 'Schnapps' Brand
--------------------------------------------------------
Hamish Fletcher at NZ Herald reports that purchases are lining up
to buy Aotearoa Distillers, an award-winning New Zealand schnapps
brand, and more than ten possible buyers have made enquiries with
the liquidator looking to sell it.
Aotearoa Distillers, established in 2008, made the Zumwohl brand
of schnapps out of Upper Hutt and was this month put into
liquidation after a petition from a Christchurch-based company,
the Herald says.
According to the report, the firm's liquidator, Robert Walker,
said there had been a surge of people getting in touch who were
interested in purchasing the Zumwohl brand, recipe and the
remaining bottles of schnapps.
While two parties had originally expressed interest in buying the
Zumwohl, following reports of the liquidation more than ten had
approached the liquidators about the brand, the Herald relates.
The Herald notes that Zumwohl was distilled at a plant owned by a
company connected to Aotearoa Distillers and Mr. Walker was now
investigating to see if the facility could be sold alongside the
brand and remaining stock.
Mr. Walker told the Herald last week there had been a breakdown
among the shareholders and directors of Aotearoa Distillers before
the liquidation
"What's happened here, and hopefully I'm not going to embarrass
these people, but there's been a breakdown amongst shareholders
[and] directors and when you get that kind [of] thing the company
kind of falls by the wayside and they neglect it a bit," the
report quoted Mr. Walker as saying. "The biggest creditors by
miles, by a significant margin, are them. They've ploughed in
hundreds of thousands of dollars . . . probably near a million
unfortunately."
Mr. Walker estimated other external creditors were owed about
NZ$220,000, according to the Herald.
"Looking at what I'm going to get for the assets, there's not
going to be a lot to spread around the external trade creditors,"
Mr. Walker, as cited by NZ Herald, said. "There'll be something.
If they [external creditors] get 10c in the dollar I'll be
surprised."
FUND MANAGERS: Trustee Sues Ex-Managers of Failed Fund
------------------------------------------------------
Marta Steeman at Fairfax NZ News reports that Trustees Executors
is suing the former Canterbury managers of a failed $250 million
mortgage fund which lent for property investment and development.
Fairfax NZ News relates that the legal action by the trustee of
the mortgage fund comes almost six years after the NZ$250 million
fund was frozen following a run on funds.
It results from a probe into loans where the fund lost more than
10 per cent of the loan, the report says.
Among the borrowers were developers David Henderson and Terry
Serepisos, although the fund was promoted as being a conservative
lender, Fairfax NZ News discloses.
According to the report, Trustees Executors is not revealing the
size of the claim against the management company Fund Managers
Canterbury (FMC), which ran the Canterbury Mortgage Trust Fund.
FMC is owned by lawyers from firms in Christchurch and Dunedin
including Anderson Lloyd, Wynn Williams, and MDS Law, the report
notes.
Fairfax NZ News relates that the trustee told the fund's investors
in a letter late last month it had filed a statement of claim in
the High Court against FMC "and others".
It declined to provide any more detail in the letter about its
claim, although there were nine loans still to sort out and they
were "difficult and complex," says Fairfax NZ News.
Fairfax NZ News adds that the trustee said in the letter it would
be unlikely to make more repayments to investors before the court
action was resolved.
Investors have been repaid 83 cents in the dollar since the fund
was frozen in mid-2008. In early 2009 the fund was placed in
liquidation, the report notes.
Formed in 1999 and with NZ$266 million of funds under
management, Canterbury Mortgage Trust offered an alternative
fixed interest investment. The Trust provided managed mortgage
investments and mortgage finance throughout New Zealand.
*********
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
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TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
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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 ***