/raid1/www/Hosts/bankrupt/TCRAP_Public/140516.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, May 16, 2014, Vol. 17, No. 96
Headlines
A U S T R A L I A
ARTHURIAN INVESTMENTS: Goes Into Liquidation
CONEC2 PTY: Placed in Administration, Meeting Set for May 20
SHARPS MACKAY: Placed Into Voluntary Administration
TAGMA PTY: Clifton Hall Appointed as Liquidator
C H I N A
CHINA FISHERY: 2014 1st Half Year Results Supports Moody's B2 CFR
CHINA HONGGIAO: S&P Affirms 'BB' LT Corp. Credit Rating
YANCOAL INTERNATIONAL: Moody's Rates Sr. Unsecured Bond '(P)Ba1'
ZOOMLION HEAVY: S&P Lowers Corp. Credit Rating to 'BB'
I N D I A
ANITHA TEXCOT: CRISIL Assigns 'B' Rating to INR200MM Cash Credit
BASU & CO: CRISIL Lowers Rating on INR45MM Cash Credit to 'B+'
BHABANI PRINT: ICRA Reaffirms 'D' Rating on INR10.54cr Loans
BHOOMIKA INFRABUILDCON: CRISIL Puts 'B' Rating on INR140MM Loans
CRYSTAL ROADWAYS: CRISIL Lowers Rating on INR100MM Loans to 'D'
DHINGRA JARDINE: ICRA Suspends 'D' Rating on INR42cr Loan
ESBI GLASSES: CRISIL Reaffirms 'B+' Rating on INR81.6MM Loans
ESSAR FERRO: CRISIL Reaffirms 'B+' Rating on INR70MM Loans
HILTON MOTORS: CRISIL Reaffirms 'D' Rating on INR95M Loans
IPL PRODUCTS: ICRA Suspends 'B+' Rating on INR4.70cr Loans
JAGAT GOURI: CRISIL Assigns 'B' Rating to INR138.5MM Loans
JYOTI ENTERPRISE: ICRA Suspends 'B' Rating on INR5cr Loan
KOHINOOR CTNL: ICRA Reaffirms 'D' Rating on INR936cr Term Loan
KOHINOOR HOSPITALS: ICRA Reaffirms 'D' Rating on INR57.41cr Loans
METALLICA INDUSTRIES: ICRA Lowers Rating on INR40cr Loan to 'D'
RADHIKA COTTEX: CRISIL Puts 'B' Rating on INR70.7 Loans
RAMESWAR UDYOG: ICRA Reaffirms 'B+' Rating on INR4.75cr Loan
SAP INDUSTRIES: ICRA Suspends 'B+' Rating on INR3.27cr Loans
SHIVALI UDYOG: CRISIL Cuts Rating on INR315.8MM Loans to 'D'
SMT. KANCHAMREDDY: ICRA Suspends 'B' Rating on INR5cr Loan
SRI VENKATRAMANA: ICRA Reaffirms 'B+' Rating on INR17cr Loans
SURYODAYA COLLEGE: CRISIL Cuts Rating on INR62.5MM Loans to 'D'
TARAPUR TRANSFORMERS: CRISIL Cuts Rating on INR492.5MM Loans to D
U V COTTON: ICRA Raises Rating on INR21.3cr Loans to 'B+'
UMA MAHESWARI: ICRA Reaffirms 'C+' Rating on INR10cr Loan
VENKATESH COTTON: ICRA Suspends 'B' Rating on INR10.15cr Loan
J A P A N
SONY CORP: Posts JPY128.4-Bil. Net Loss for Year Ended March 31
N E W Z E A L A N D
ROSS ASSET: Liquidators Seek to Bankrupt David Ross
S O U T H K O R E A
MAGNACHIP SEMICONDUCTOR: S&P Alters Outlook on 'BB-' CCR to Neg.
X X X X X X X X
* Large Companies with Insolvent Balance Sheets
- - - - -
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A U S T R A L I A
=================
ARTHURIAN INVESTMENTS: Goes Into Liquidation
--------------------------------------------
David Ashley Norman Hurt -- DHurt@wais.com.au -- of WA Insolvency
Solutions Pty Ltd was appointed as liquidator of the Arthurian
Investments Pty Ltd, trading as QV1 Bar One, on April 17, 2014.
Dissolve.com.au says creditors of Bar One, which include the tax
office, trade creditors and the landlord, are owed around
AUD430,000.
CONEC2 PTY: Placed in Administration, Meeting Set for May 20
------------------------------------------------------------
Trajan John Kukulovski -- JohnK@jirschsutherland.com.au -- and
Glenn Anthony Crisp -- GlennC@jirschsutherland.com.au -- of
Jirsch Sutherland were appointed as administrators of Conec2 Pty
Ltd, Telecom X Pty Ltd, The Conec2 Group Pty Ltd, Conec2 Group
Nominees Pty Ltd, and Conec2 Networks Pty Ltd on May 8, 2014.
Dissolve.com.au says the appointment follows the collapse of its
businesses iBoss and One Telecom.
ispONE previously owned One Telecom and iBoss until Conec2
purchased them in August 2013, the report notes.
A first meeting for each of the Companies will be held at CPA
Building, Level 20, 28 Freshwater Place, in Southbank, Victoria,
on May 20, 2014.
SHARPS MACKAY: Placed Into Voluntary Administration
---------------------------------------------------
Cliff Sanderson at dissolve.com.au reports that Sharps Mackay
Heavy Equipment Repairs Pty Ltd has been put into voluntary
administration with Nick Harwood -- nharwood@deloitte.com.au --
and Richard Hughes -- richughes@deloitte.com.au -- of Deloitte
Australia being appointed as joint administrators. Prospective
buyers have shown interest in the business, which has continued
to trade, the report says.
A creditors' meeting held on May 12 updated creditors on the
activities and investigations conducted by the administrators.
The next meeting is set on June 24, 2014, the report notes.
TAGMA PTY: Clifton Hall Appointed as Liquidator
-----------------------------------------------
Timothy Clifton -- tclifton@cliftonhall.net.au -- of Clifton Hall
was appointed Liquidator of Tagma Pty Ltd on May 13, 2014, by
Order of the Supreme Court of South Australia.
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C H I N A
=========
CHINA FISHERY: 2014 1st Half Year Results Supports Moody's B2 CFR
-----------------------------------------------------------------
Moody's Investors Service says China Fishery Group Limited's
1H2014 results are in line with Moody's expectations and support
its B2 corporate family and senior unsecured bond ratings.
Furthermore, its completion of the refinancing of its acquisition
loans for and its privatization of Copeinca ASA are facilitating
the consolidation of its fishmeal businesses in Peru.
The ratings outlook remains stable.
"China Fishery's revenue growth of 20.1% year-on-year in 1H 2014
is the result of changes to its business model," says Lina Choi,
a Moody's Vice President and Senior Analyst.
China Fishery reported a 540% y-o-y increase in revenue from its
Peruvian fishmeal businesses to $203.5 million, reflecting the
consolidation of Copeinca ASA bought in August 2013, higher
fishmeal production, and lower average selling prices.
Moody's considers that the positive result indicates that
Copeinca ASA' operations have remained stable after its
acquisition by China Fishery.
At the same time, the company suffered a 53% decline in revenue
from its Russian supply business to $105.3 million, reflecting
the decision to exit this business.
Moody's expects this trend of decline will continue as the
company completely exits the business, which involves it
purchasing Alaskan Pollock from Russian fishing companies.
Moody's expects the fishmeal operation will eventually replace
the Russian contract supply business to become the core business
of China Fishery.
By end-2014, the fishmeal business will represent more than 65%
of the company's total revenue, and the Russian contract supply
business' contribution will decline to 32%.
"China Fishery has stabilized its funding as it has completed
bank borrowings to refinance its acquisition loans and to offer a
redemption of Copeinca's senior notes," says Choi who is the Lead
Analyst for China Fishery.
Moody's sees this as a significant step towards preparing for the
consolidation of the company's fishmeal businesses and for taking
further action to improve the efficiency of its facilities in
Peru.
"Moody's expects China Fishery's credit metrics will stabilize at
levels appropriate for its B2 ratings, in view of its eventual
withdrawal from the Russian supply business and the debt incurred
for its acquisition of Copeinca," says Choi.
China Fishery's adjusted EBITDA margin declined to 44.4% for the
12 months to March 2014 from 46.2% in 2013. The profitable
Russian contract supply business, which has an EBITDA margin of
45% versus 35% for fishmeal, is now -- as indicated -- a smaller
revenue contributor.
But its EBITDA remained at a stable level of $271 million for the
12 months to March 2014 versus $256 million for 2013.
The company's Adjusted debt/EBITDA ratio was stable at 4.6x for
the 12 months to March 2014 versus 4.7x for 2013. However, its
EBITDA interest coverage dropped to 3.9x from 5.1x six months ago
due to the increased financing costs for Copeinca's senior notes
and new term loans.
Moody's expects China Fishery's credit metrics -- debt/EBITDA of
4.5x-5x and EBITDA/interest of 3x-3.5x -- in the next 12-18
months will continue to support its B2 rating level.
China Fishery's liquidity position remains adequate. As of March
28 2014, it had $51 million in cash. Moody's expects more cash
will be received in coming months as the company traditionally
releases inventories and receivables after its fishing season
which ends in January.
Moreover, China Fishery expects to receive $80 million from its
Russian suppliers in 3Q 2014, which will help it redeem the
outstanding senior notes of Copeinca and repay its short-term
debt.
China Fishery Group Ltd is headquartered in Hong Kong and listed
in Singapore. It is engaged in three business segments: (1) the
Contract Supply Business of Alaska pollock -- a species of cod --
in Russia's northern Pacific area, through agreements with
suppliers; (2) the production of Peruvian fishmeal and fish oil,
and (3) fishing fleet operations. China Fishery is 46.5%
effectively owned by the Pacific Andes group, through Pacific
Andes International Holdings Ltd (PAIH), a Hong Kong-listed
integrated fish and seafood products processor. The Carlyle
Group, a global alternative asset management firm, holds an 11.1%
stake in the company.
CHINA HONGGIAO: S&P Affirms 'BB' LT Corp. Credit Rating
-------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' long-term
corporate credit rating on China-based aluminum producer China
Hongqiao Group Ltd. The outlook is stable. At the same time, S&P
also affirmed its 'cnBBB-' long-term Greater China regional scale
rating on the company.
"We affirmed the ratings because we expect Hongqiao to maintain
its low-cost advantages while operating conditions remain
challenging for China's aluminum industry. We also believe that
the company's leverage is unlikely to increase from the currently
high level," said Standard & Poor's credit analyst Jian Cheng.
"We expect Hongqiao's gross margin to be about 33% in 2014,
compared with around 35% in 2013. The company's profitability is
higher than the industry average, mainly because of its
competitive production costs. Hongqiao has self-owned captive
power plants that significantly reduce input costs, given
that electricity accounts for more than 40% of aluminum
production costs," S&P said.
"We expect Hongqiao's electricity self-supply ratio to improve to
about 75% in 2014 from about 66% in 2013. The company's alumina
self-supply ratio increased to around 62.5% in 2013 at its 3
million-ton installed production facility. We expect the
company's total installed alumina production facility to reach
about 4 million tons by mid-2014. Hongqiao buys electricity and
alumina from Gaoxin Aluminum and Electricity Corp. (not rated) at
favorable rates, although prices are slightly higher than for its
self-produced supplies.
"Our base-case forecast for aluminum prices in 2014 is about
Chinese renminbi (RMB) RMB12,500/ton tax inclusive, compared with
the current level of RMB13,000. Oversupply remains a threat to
aluminum producers throughout China. However an Indonesian ban on
exports of bauxite could raise production costs and force
inefficient Chinese local producers out of market by the end of
2014. This in turn could provide a cushion against price declines
and reduce oversupply.
"Hongqiao's leverage increased significantly more than we
expected over the past year, due to the company's aggressive
expansion to improve its vertical integration and reduce its
reliance on third-party supplies. In our view, the company's
leverage ratio is likely to improve slightly in 2014 as capital
spending slows down. Although Hongqiao's healthy operating cash
flow generation offset part of the capital spending, it still has
to use debt to fund the majority of the spending. We have
therefore reassessed the company's financial risk profile as
"significant" from "intermediate,"" said S&P.
Hongqiao is likely to slow down its debt-funded expansion plans
as most of its large projects have passed their peak investment
phases. The company's working capital requirements are also
likely to reduce over the next 12 months because it still has a
large inventory of bauxite. Before Indonesia banned bauxite
exports in 2014, Hongqiao imported sufficient inventory for about
two years of production needs.
The debt-funded expansion and bauxite purchases have doubled
Hongqiao's total borrowings in the past 12 months. They also
compressed the company's ratio of funds from operations (FFO) to
total debt to about 20% in 2013 from 39% in 2012. Hongqiao's
working capital requirements should improve because of the
pre-purchased bauxite inventory. "We expect the company's ratio
of FFO to total debt to improve to about 26% in 2014 from around
20% in 2013, said S&P.
"We revised our assessment of Hongqiao's liquidity position to
"adequate" from "less than adequate" because the company has
rolled over loans and secured an additional syndicated loan while
lowering its capital expenditure in 2014. We expect the company's
sources of liquidity to cover its uses by 1.2x in 2014.
We estimate that even if projected EBITDA declines by 15%,
Hongqiao's liquidity sources will more than cover liquidity uses,
S&P said.
"The stable outlook on Hongqiao reflects our expectation that the
company will adopt a moderate capital expenditure program over
the next 12-18 months compared with the past two years. We also
anticipate that the company's profitability will remain better
than the industry average," said. Mr. Cheng.
"We may lower the rating if Hongqiao's cost competitiveness
weakens, its profitability declines, and the management's
expansion plan becomes more aggressive than we expect and is
primarily debt-funded. A downgrade trigger could be the ratio of
FFO to total debt dropping to below 20% on a sustainable basis,
said S&P.
"We are unlikely to raise the rating over the next 12 months.
However, we could consider an upgrade if the company improves its
FFO-to-total debt ratio to above 30% and shows its willingness to
maintain such a financial position," according to S&P.
YANCOAL INTERNATIONAL: Moody's Rates Sr. Unsecured Bond '(P)Ba1'
----------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)Ba1
rating to the senior unsecured perpetual bond to be issued by
Yancoal International Trading Co., Ltd. and guaranteed by Yanzhou
Coal Mining Co., Ltd.
The rating is also on review for downgrade, reflecting the review
for downgrade of Yanzhou Coal's Ba1 corporate family rating and
senior unsecured debt rating of Yancoal International Resources
Development Co Ltd.
The proceeds from the bond will be used for repayment of
indebtedness, capital expenditure, working capital as well as for
general corporate purposes.
The provisional status of the rating for the perpetual bond will
be removed upon completion of the issuance and after all
satisfactory terms and conditions have been met.
Ratings Rationale
"The perpetual bond issuance will provide additional funding for
Yanzhou Coal to manage its business in an industry down-cycle,"
says Simon Wong, a Moody's Vice President and Senior Credit
Officer/Manager.
The (P)Ba1 rating assigned to the proposed perpetual bond
reflects the Ba1 rating of Yanzhou Coal as well as the senior
unsecured nature of this obligation.
Moody's observes the securities being offered have specific
hybrid-like features, including cumulatively deferred interest
and dividend stoppers.
However, such features do not alter our view of the rating for
this perpetual bond, which is ranked pari passu to Yanzhou Coal's
all other senior unsecured obligations.
Moody's assesses the likelihood of the issuer deferring the
coupon over the next 12 months as low.
However, the perpetual bond rating could be lowered -- relative
to the company's senior unsecured ratings -- if debt with
deferral features becomes a substantial portion of the capital
structure, or if Moody's come to believe that the company would
likely defer many payments in advance of default.
"The perpetual bond will raise debt leverage -- as measured by
debt/EBITDA -- as the bond will be given 100% debt treatment in
Moody's calculations," says Wong.
Moody's notes that Yanzhou Coal's 1Q 2014 performance was
affected by: (1) the continued deterioration in thermal and
coking coal prices; and (2) the impact of adverse seasonal
factors on coal production and sales.
Yanzhou Coal's credit profile has weakened materially due to its
higher-than-expected debt level at end-2013, and which was the
result of a significantly higher level of total capex, as well as
the ongoing difficult operating environment for the coal sector.
These factors combined are pressuring its ratings and triggered
the review for downgrade.
Moody's review will focus on Yanzhou Coal's: (1) business
strategy and financial policy in managing its growth plans,
against the backdrop of a difficult operating environment; (2)
flexibility in relation to its 2014 capex budget of RMB9.4
billion; (3) recent acquisitions as well as ongoing greenfield
investments; (4) plans to seek bank waivers in respect of certain
financial covenants breach by its Australian operations, and (5)
plans to reduce its subsidiary debt to total assets ratio.
Moody's review will also reassess the company's relationship with
and potential degree of support from the Shandong government and
from its parent, Yankuang Group (unrated).
Moody's also notes that Yanzhou Coal's subsidiary debt to total
assets ratio exceeded 15% in 2012 and 2013, therefore increasing
the risk of structural subordination.
Moody's could downgrade its bond ratings if the company is unable
to lower this ratio below 15% within the next 6-12 months.
The principal methodology used in this rating was the Global
Mining Industry published in May 2009.
Yanzhou Coal Mining Co., Ltd was listed in Shanghai, Hong Kong
and New York in 1998. It is 56.5% directly and indirectly-owned
by the Yankuang Group, a state-owned enterprise that is wholly
owned by the Shandong Provincial State-Owned Assets Supervision
and Administration Commission.
Yanzhou Coal is one of the top coal mining groups in China. It
has 12 operating mines in Shandong Province, Shaanxi Province and
Inner Mongolia. It also has 14 mines in Australia; nine in
production and five in the exploration stage.
ZOOMLION HEAVY: S&P Lowers Corp. Credit Rating to 'BB'
------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Zoomlion Heavy Industry Science and
Technology Co. Ltd. to 'BB' from 'BB+'. "At the same time, we
also lowered the issue ratings on the US$400 million in 6.875%
senior unsecured notes due 2017 and US$600 million in 6.125%
senior unsecured notes due 2022 issued by Zoomlion H.K. SPV Co.
Ltd. to 'BB' from 'BB+'. Zoomlion guarantees the notes. At the
same time, we lowered our long-term Greater China regional
scale rating on Zoomlion and on its guaranteed notes to 'cnBB+'
from 'cnBBB+'," said S&P.
Zoomlion is a China-based machinery manufacturer.
"We downgraded Zoomlion because the company's weakened financial
strength is unlikely to improve over the next 12 months. The
company's 2013 performance was materially weaker than our base-
case expectation because of weak demand, intense competition, and
Zoomlion's increased customer credit risks," said Standard &
Poor's credit analyst Huma Shi.
"We believe Zoomlion's working capital management has
deteriorated even though the company has tightened its customer
credit underwriting and collection policies since the fourth
quarter of 2012," S&P said. Zoomlion's total revenue declined
about 20% in 2013. Credit sales accounted for about 70% of
revenue in 2013, down slightly from about 75% in 2012. However,
the company's accounts receivables rose 40% to Chinese renminbi
(RMB) 25 billion in 2013 and operating cash flow was negative,
after adjusting for changes in working capital. Receivable sales
numbered 232 days in 2013, up 74% from that of 2012. Such
deterioration may continue, in our opinion, because the extent of
potential customer defaults is uncertain, according to Zoomlion.
"We expect Zoomlion's consolidated cash flow and leverage to
weaken over the next two years. In our base case, we estimate the
company's free operating cash flow will likely remain negative
over the next two years, primarily because of volatile working
capital needs and capital expenditure requirements. As a result,
we anticipate debt leverage will remain high. However, we also
anticipate that Zoomlion will maintain a high cash balance,
which will be a source of flexibility to its liquidity," said
S&P.
"We estimate that Zoomlion's total sales and margins will stay
flat to the 2013 level over the next 12-24 months. The company's
debt-to-EBITDA ratio (excluding contingent liability) should be
about 5x (2013: 4.4x) and the ratio of funds from operations to
debt (excluding contingent liability) will likely be about 17%
(2013: 18%). We have therefore revised our assessment of
Zoomlion's financial risk profile to "aggressive" from
"significant,"" said S&P.
Zoomlion has a strong domestic market share and diversified
machinery product offerings, which continue to underpin its
"satisfactory" business risk profile. Sales declined 20% and the
EBITDA margin by 36% in 2013, significantly lower than a year
earlier. The prolonged downturn in China's heavy equipment
industry since 2011 contributed to the deterioration in
Zoomlion's operating performance. Since the start of this year,
the Chinese government has taken tentative steps to restart some
infrastructure investments to maintain economic growth. We
therefore anticipate a modest industry recovery over the next 12
months. However, excess capacity, intense competition, pricing
pressure, and Zoomlion's deteriorating working capital
management will keep profitability and operating cash flow
margins low over the next 12-24 months.
"Zoomlion is likely to continue to expand overseas to reduce its
heavy reliance on the domestic market. However, we do not believe
the company will be able to scale up operations or receive
material contributions from its overseas business in the next 12-
24 months, given its aggressive pricing to enter these
new markets and the capital-intensive nature of the industry.
Overseas revenue represented only 7% of Zoomlion's total annual
sales in 2013, a merely 1% increase from that of last year," said
S&P.
Zoomlion has modest risk management capability and a lack of
sound risk management standards. The company's practices are not
transparent and its ability to control customer credit risks
remains uncertain, in our view. "We therefore assess the
company's management and governance as 'fair.' Our assessment
also reflects our opinion that Zoomlion's strategic goals and its
organizational capabilities and industry conditions have been
inconsistent for the past three years," said S&P.
As of December 2013, Zoomlion was in compliance with its
financial covenants, however with limited headroom at a debt-to-
EBITDA of less than 5x.
"The negative rating outlook reflects our expectation that
Zoomlion's financial strength could further deteriorate over the
next 12 months if operating conditions remain weak and customer
credit risks continue to rise," said Ms. Huma.
"We may lower the rating if Zoomlion's profitability declines
further from the level in 2013, which may be signaled if a
historically strong second quarter performance does not
materialize this year. We may also lower the rating if
Zoomlion's debt rises beyond our expectation, such that EBITDA
interest coverage weakens towards 3x on a sustained basis. This
could happen if the company's operating cash flow remains
negative and working capital management deteriorates further,
such that the number of days of receiveable sales worsens from
232 days in 2013," said S&P.
"We may revise the outlook back to stable if Zoomlion's sales and
profitability increase more than we currently expect and its cash
flow strengthens. This could happen if the company's working
capital stabilizes and customer credit quality improves,"
according to S&P.
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I N D I A
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ANITHA TEXCOT: CRISIL Assigns 'B' Rating to INR200MM Cash Credit
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the bank
facility of Anitha Texcot (India) Private Limited.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 200 CRISIL B/Stable
The rating reflects ATIPL's modest scale of operations in the
intensely competitive cotton trading industry and its below-
average financial risk profile marked by high gearing. These
rating weaknesses are partially offset by the extensive industry
experience of ATIPL's promoters.
Outlook: Stable
CRISIL believes that ATIPL will continue to benefit over the
medium term from its promoters' extensive experience in the
cotton trading industry. The outlook may be revised to 'Positive'
if ATIPL's scale of operations increases significantly, along
with improvement in its financial risk profile on account of
increase in cash accruals or improvement in capital structure.
Conversely, the outlook may be revised to 'Negative' if ATIPL's
financial risk profile deteriorates because of increase in
working capital requirements or lower profitability, leading to
lower cash accruals.
Set up in 1999 as a partnership firm and reconstituted as a
private limited company in 2012, ATIPL trades in cotton yarn and
polyester yarn. Its daily operations are managed by Mr. A
Elangovan and Mr. A Chandrasekharan.
ATIPL reported a net loss of INR6.1 million on net sales of
INR1.28 billion for 2012-13 (refers to financial year, April 1 to
March 31), against a profit after tax of INR5.7 million on net
sales of INR1.32 billion for 2011-12.
BASU & CO: CRISIL Lowers Rating on INR45MM Cash Credit to 'B+'
--------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Basu & Co Road Contractors Pvt Ltd to 'CRISIL B+/Stable/CRISIL
A4' from 'CRISIL BB-/Stable/CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Bank Guarantee 25 CRISIL A4 (Downgraded from
'CRISIL A4+')
Cash Credit 45 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
The rating downgrade reflects the deterioration in BCRCPL's
financial risk profile, particularly its liquidity, because of
its large incremental working capital requirements. The company's
operating income is likely to almost double in 2013-14 (refers to
financial year, April 1 to March 31) compared with the previous
year, and has resulted in significant incremental working capital
requirements owing to its working-capital-intensive operations.
Large working capital requirements along with high dependence on
external debt to fund the same have resulted in stretched
liquidity. This is reflected in near-full utilisation of its bank
limits over the 12 months through February 2014. BCRMPL's
operating income is expected to increase further by 10 to 20 per
cent in 2014-15. CRISIL believes that the expected growth in
operating income along with working-capital-intensive operations
will continue to impact BCRCPL's liquidity over the medium term.
The rating also reflects the company's small scale of operations
in the highly fragmented civil construction industry, and
customer and geographical concentration in its revenue profile.
These rating weaknesses are partially offset by the extensive
experience of BCRCPL's promoters in the road construction
business, BCRCPL's moderate order book providing revenue
visibility over the medium term and its above-average financial
risk profile, marked by low gearing and comfortable debt
protection metrics.
Outlook: Stable
CRISIL believes that BCRCPL will continue to benefit over the
medium term from its promoter's extensive experience in the road
construction business and its moderate order book. The outlook
may be revised to 'Positive' if the company significantly
improves its scale of operations and the customer and
geographical diversity in its revenue profile, or in case of
sustained improvement in its liquidity through better-than-
expected accruals or improved working capital management.
Conversely, lower-than-expected accruals, stretch in its working
capital cycle, or substantial capital expenditure, leading to
deterioration in BCRCPL's liquidity, may lead to a revision in
the outlook to 'Negative'.
BCRCPL was originally established in 1985 as a proprietorship
firm, Basu & Co. The firm was reconstituted as a corporate body
with the current name in 2002. BCRCPL undertakes road
construction, including strengthening and widening of roads for
the Public Works Department in West Bengal. The company's day-to-
day operations are looked after by its promoter-director, Mr.
Pradip Basu.
BHABANI PRINT: ICRA Reaffirms 'D' Rating on INR10.54cr Loans
-------------------------------------------------------------
ICRA has reaffirmed the [ICRA]D rating to the INR4.71 crore term
loans, INR3.83 crore non fund based limits and INR2.0 crores cash
credit facility of Bhabani Print & Publications.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 4.71 [ICRA]D Reaffirmed
Non Fund Based 3.83 [ICRA]D Reaffirmed
Cash Credit 2.00 [ICRA]D Reaffirmed
The rating reaffirmation continues to take into consideration the
recent and regular delays in servicing of debt obligations by
BPAP, cash loss reported during FY13 on account of large
financial costs coupled with limited revenue from renting of
machineries, as the operations remained discontinued, and
liquidity mismatch on account of large debt repayments in the
near future coupled with nominal cash flows from operations. The
rating reaffirmation takes into account the long track record of
the promoters in the printing business.
BPAP was incorporated in February 2006 as a partnership firm with
five partners, having prior experience in the printing business.
The firm used to operate its printing facility based at Guwahati,
Assam. However, the operations have been completely discontinued
from April 2012 because of a dispute between the partners.
Recent Results
BPAP reported a loss of INR7.44 crore during FY13 on an OI of
INR0.85 crore as against a net profit of INR1.85 crore and an OI
of INR26.16 crore during FY12.
BHOOMIKA INFRABUILDCON: CRISIL Puts 'B' Rating on INR140MM Loans
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the bank
facilities of Bhoomika Infrabuildcon Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term 5 CRISIL B/Stable
Bank Loan Facility
Term Loan 135 CRISIL B/Stable
The rating reflects BIPL's susceptibility to funding risks
accentuated by large term debt obligations during the
construction phase of its on-going project and to large
implementation risk as the project is in nascent stage of
construction. The rating also reflects the geographical
concentration in the company's operations and its susceptibility
to cyclicality in the real estate industry. These rating
weaknesses are partially offset by the industry experience of
BIPL's promoters and expected continued funding support from
them.
Outlook: Stable
CRISIL believes that BIPL will benefit from its promoters'
extensive industry experience and funding support over the medium
term. The outlook may be revised to 'Positive' in case of timely
project completion and better-than-expected lease rentals
resulting in improvement in liquidity. Conversely, the outlook
may be revised to 'Negative' in case of time or cost overrun in
the project or delay in finalising tenants, leading to lower-
than-expected cash inflows, or large debt funding of the project,
constraining the company's liquidity.
BIPL was established in 2012 by Mr. Raj Kumar Narang and his
family members. The company is engaged in real estate development
and is developing a commercial project with saleable area of
100,000 square feet spread over 2041 square metres in Noida
(Uttar Pradesh).
CRYSTAL ROADWAYS: CRISIL Lowers Rating on INR100MM Loans to 'D'
---------------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of
Crystal Roadways Pvt Ltd to 'CRISIL D/CRISIL D' from
'CRISIL B-/Stable/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 1.3 CRISIL D (Downgraded from
'CRISIL A4')
Term Loan 98.7 CRISIL D (Downgraded from
'CRISIL B-/Stable')
The rating downgrade reflects the delays by CRPL in servicing its
term loan obligations owing to weak liquidity. The delay in
commencement of commercial operations of the cold storage
facility has resulted in stretched liquidity leading to delays in
payment of term debt obligations.
The ratings also reflect CRPL's exposure to project
implementation risk, to risk related to successful stabilization
and timely ramp up of operations and exposure to high
fragmentation in the cold storage industry. These rating
weaknesses are partially offset by the benefit that CRPL derives
from its promoter's established relations with prospective
customers.
CRPL, incorporated in 1998, is currently setting up of a multi-
purpose cold storage unit in Howrah (West Bengal).The current
cold storage project implementation and day-to 'day operations of
the company are looked after by Mr Naresh Agarwal.
DHINGRA JARDINE: ICRA Suspends 'D' Rating on INR42cr Loan
---------------------------------------------------------
ICRA has revised the long term rating assigned to the INR42.0
crore fund based facility of Dhingra Jardine Infrastructure
Private Limited from '[ICRA]B-' to '[ICRA]D. The rating revision
factors in the delays in debt servicing by the company on account
of liquidity constraints faced by it.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based Limits 42.0 Downgraded to [ICRA]D
from [ICRA]B-; Suspended
Further, ICRA has suspended the ratings assigned to the above
mentioned bank facilities of DJIPL. The suspension follows ICRA's
inability to carry out a rating surveillance in the absence of
the requisite information from the company.
Based in Delhi, Dhingra Jardine Infrastructure Pvt. Ltd is part
of Delhi based Dhingra group and was incorporated in 2006 with
the objective of carrying out real estate development. The
company was originally incorporated under the name of Echo Estate
Private Limited, but subsequently the name was changed to Dhingra
Jardine Infrastructure Pvt. Ltd. Currently operations of the
company are confined to the development of a single residential
project, 'California Country', located in Sector 80 in Faridabad.
ESBI GLASSES: CRISIL Reaffirms 'B+' Rating on INR81.6MM Loans
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of ESBI Glasses Pvt Ltd
continue to reflect ESBI's large working capital requirements and
its small scale of operations. These rating weaknesses are
partially offset by its above-average financial risk profile,
marked by low gearing and a moderate net worth, and the
promoters' extensive experience in manufacturing mirrors and
trading in food grains and other items.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Bank Guarantee 2.5 CRISIL A4 (Reaffirmed)
Cash Credit 50 CRISIL B+/Stable (Reaffirmed)
Letter of Credit 7 CRISIL A4 (Reaffirmed)
Term Loan 31.6 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that ESBI will maintain its market position
backed by its established relationships with customers and the
promoters' extensive industry experience over the medium term.
The outlook may be revised to 'Positive' if the company increases
its revenue substantially, while maintaining its capital
structure. Conversely, the outlook may be revised to 'Negative'
if there is a significant decline in ESBI's operating margin, in
case of a stretch in liquidity due to unfavourable funding
pattern for its proposed capital expenditure (capex). The outlook
may also be revised to 'Negative' if its working capital cycle
lengthens, deteriorating its debt protection metrics.
Update
In 2013-14 (refers to financial year, April 1 to March 31), its
revenue is estimated to have increased by 16 per cent to around
INR240 million backed by increased efficiency post the
commercialisation of its automated insulated glass manufacturing
unit. The operating margin is estimated to have remained at
similar levels as last year at around 10.8 per cent in 2013-14.
ESBI is expected to maintain revenue growth of 10 to 15 per cent
over the medium term, while maintaining operating margin at
around 11 per cent.
ESBI's financial risk profile is maintained as depicted by a
moderate net worth, low gearing levels, and adequate debt
protection metrics. However, the company has capex plans of
INR270 million to 300 million over the medium term for a glass
lamination unit, which currently is in its nascent stages.
Finalisation of these plans and its funding pattern remain key
rating sensitivity factors. The company maintained the liquidity
as depicted by sufficient cash accruals. It is expected to
generate around INR19 million as against repayment obligations of
INR4 million. However, bank limits of the company remained highly
utilised at 98 per cent on average over the past 12 months owing
to working capital intensive operations and incremental working
capital stemming from revenue growth.
Incorporated in 1998, ESBI manufactures mirrors and various types
of glasses in Kolkata. The company also trades in atta, suji,
maida, handloom fabrics, potatoes, chemicals, paint thinners, and
wooden crates. It is expected to commercialise its automated
insulated glass manufacturing unit with a capacity of 120,000
square metres by the end of April 2013.
In 2012-13, the company generated a net profit of INR7.9 million
on net sales of INR200.6 million as against a net profit of
INR7.2 million on net sales of INR163.7 million in 2011-12.
ESSAR FERRO: CRISIL Reaffirms 'B+' Rating on INR70MM Loans
----------------------------------------------------------
CRISIL's rating on the bank facilities of Essar Ferro Alloys
Company continues to reflect EFAC's below-average financial risk
profile, marked by modest net worth and weak debt protection
metrics.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Bank Guarantee 5 CRISIL A4 (Reaffirmed)
Cash Credit 70 CRISIL B+/Stable (Reaffirmed)
The rating also factors in the firm's exposure to risks relating
to the fragmented and competitive nature of the copper wires
industry, and its modest scale of operations. These weaknesses
are partially offset by the benefits that the firm derives from
its promoters' experience in manufacturing cable wires.
Outlook: Stable
CRISIL believes that EFAC will maintain a stable business risk
profile in the cable wires segment backed by the extensive
industry experience of its promoters. The outlook may be revised
to 'Positive' if the firm's net worth improves significantly
backed by higher than expected accruals generated in business
and/or equity infusion. Conversely, the outlook may be revised to
'Negative' if a decline in offtake or reduced profitability
weakens EFAC's financial risk profile, or if the firm's capital
structure deteriorates on account of large, debt-funded capital
expenditure.
Update
EFAC registered year-on-year (y-o-y) growth of 61 per cent with
estimated net sales of around INR250 million in 2013-14 (refers
to financial year, April 1 to March 31) as compared to INR146.8
million a year ago. Though the sales declined in 2012-13 with
EFAC's shift of focus towards manufacturing power cables only,
the firm scaled up its operation in 2013-14 with sales in-line
with 2011-12 levels. CRISIL expects EFAC to register modest sales
growth of 5 per cent over the medium term. EFAC's operating
margin has remained highly volatile with margins of -5.3 per cent
to 13.7 per cent over the past five years; operating margins is
estimated at around 4.8 per cent for 2013-14. EFAC's operating
margin is expected to remain at similar level over medium term.
EFAC's operation continues to remain working capital intensive
with estimated gross current assets (GCAs) of 186 days as on
March 31, 2014 vis-a-vis 249 days a year ago. EFAC has moderate
gearing of around 1.31 times as on March 31, 2014. With no long
term debt availed, EFAC's gearing is driven by its short term
borrowings and its modest net worth. In the absence of any
significant debt-funded capex plan, and no large incremental
working capital requirements, the firm's gearing is expected to
remain around 1.26 times over the medium term. EFAC's debt
protection metrics is weak with estimated interest coverage of
2.1 times and net cash accruals to total debt (NCATD) of 0.08
times in 2013-14. EFAC has weak liquidity, marked by low accruals
and working capital intensive operations; however supported by no
term debt repayment obligation.
EFAC reported a PAT (profit after tax) of INR4.6 million on net
sales of INR146.8 million in 2012-13, vis-a-vis net loss of
INR7.3 million on net sales of INR259.2 million for 2011-12.
EFAC, a partnership firm, was started in 1995 by Mr. Gordhan Das
Aggarwal and his wife Mrs. Sushila Devi Aggarwal. After closure
of its mild-steel ingots business in December 2008, the firm's
management focused on manufacturing enamelled copper wires
(winding wires) and power cables. However, post May 2012, the
firm has discontinued production of winding wires on account of
the product being unviable and has started manufacturing small
cables from 2014-15.
HILTON MOTORS: CRISIL Reaffirms 'D' Rating on INR95M Loans
----------------------------------------------------------
CRISIL's rating on the bank facilities of Hilton Motors continues
to reflect instances of delay by Hilton in servicing its term
debt; the delays have been caused by the firm's weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 7 CRISIL D (Reaffirmed)
Inventory Funding
Facility 80 CRISIL D (Reaffirmed)
Term Loan 8 CRISIL D (Reaffirmed)
Hilton also has a below-average financial risk profile, marked by
a small net worth, a high gearing, and weak debt protection
metrics, and is exposed to intense competition in the automobile
dealership market. However, the firm benefits from its promoter's
extensive experience in the automobile dealership business.
Update
Hilton has been continuously delaying on its term debt
obligations. The delays are on account of the firm's weak
liquidity, as evident from the high bank limit utilisation of
about 103.4 per cent during the 12 months ended December 2013.
The stretch in liquidity is mainly on account of the working
capital intensive nature of operation. Hilton's net cash accruals
are expected to be just sufficient to meet its debt obligations
over the medium term. CRISIL believes that Hilton's liquidity
will remain weak over the medium term on account of its working
capital intensive nature of operations. It revenues are estimated
at INR680 million for 2013-14.
Hilton, a proprietorship concern set up by Mr. Josepherson
Antony, is an automobile dealer for Hyundai Motor India Ltd.
IPL PRODUCTS: ICRA Suspends 'B+' Rating on INR4.70cr Loans
----------------------------------------------------------
ICRA has suspended the [ICRA]B+ rating outstanding on the INR3.00
crore fund based facilities and INR1.70 crore proposed term loan
facilities and also the [ICRA]A4 rating outstanding on the
INR0.80 crore fund based facilities and INR4.5 crore non-fund
based bank facilities of IPL Products. The suspension follows
ICRA's inability to carry out a rating surveillance in the
absence of the requisite information from the firm.
JAGAT GOURI: CRISIL Assigns 'B' Rating to INR138.5MM Loans
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to
the bank facilities of Jagat Gouri Rice Mill.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 31.5 CRISIL B/Stable
Proposed Long Term
Bank Loan Facility 47 CRISIL B/Stable
Bank Guarantee 1.5 CRISIL A4
Cash Credit 60 CRISIL B/Stable
The ratings reflect the firm's large working capital requirements
and limited scale of operations in a fragmented industry. These
rating weaknesses are partially offset by its partners' extensive
experience in the rice-milling business.
Outlook: Stable
CRISIL believes that JGRM will continue to benefit over the
medium term from its partners' extensive experience in the rice
industry. The outlook may be revised to 'Positive' in case of
improvement in the scale of operations and accruals or better
working capital management, leading to improvement in the firm's
financial risk profile. Conversely, the outlook may be revised to
'Negative' if the firm undertakes any larger-than-expected debt-
funded expansion, generates lower-than-expected cash accruals, or
if its working capital cycle is stretched, leading to weak
financial risk profile.
Formed in 2000, JGRM processes parboiled rice. It is a
partnership firm, the partners being Mr. Shyam Sundar Kesh, Mrs.
Alpana Kesh, Mr. Chandrashekar Kesh, and Mr. Rajshekar Kesh. The
firm has its manufacturing facility in Shripalli Burdwan (West
Bengal).
JYOTI ENTERPRISE: ICRA Suspends 'B' Rating on INR5cr Loan
---------------------------------------------------------
ICRA has suspended '[ICRA]B' rating assigned to the INR5.00 crore
long term working capital facilities of Jyoti Enterprise. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
firm.
Established in 2004, Jyoti Enterprise is a partnership firm based
out of Mehsana, owned and managed by Mr. Mihir Patel and other
family members. The firm acts as authorized distributor of
tractors for Escorts Limited in Northern and Western parts of
Gujarat. The partners of the firm are also associated with
'Maruti Enterprise' which acts as an stockist for International
Tractors Limited and HMT Limited.
KOHINOOR CTNL: ICRA Reaffirms 'D' Rating on INR936cr Term Loan
--------------------------------------------------------------
ICRA has reaffirmed the long term rating outstanding on the
INR936 crore Term Loans of Kohinoor CTNL Infrastructure Company
Private Limited at [ICRA]D.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 936 [ICRA]D reaffirmed
The reaffirmation of rating takes into account the weak liquidity
position of the company on account of low sales tie up coupled
with high debt repayment burden thereby leading to continuing
delays in debt servicing. Further, the high investment
requirement for KCICPL along with the start-up nature of the
operations of the group's recent ventures in healthcare,
education and hospitality segment has had a debilitating effect
on the liquidity profile at a group level leading to cash flow
mismatches.
The project had been on hold for the past one year owing to
certain regulatory issues which in turn led to significant time
and cost overruns. The total project cost is expected to increase
to INR3,084 crore from the initial budgeted level of INR2,100
crore. The company, however, has achieved a settlement with
Municipal Corporation of Greater Mumbai (MCGM) in January 2014
and the project execution is expected to resume in the near term.
Further, the company has also secured the approval for converting
a part of the development into residential space. KCICPL is also
in the process of tying up debt for part funding the increase in
the project cost. The rating is also constrained by the high
market risk with 45% of the commercial/retail area and 87% of the
residential area yet to be tied up for sale.
ICRA, however, has favourably taken note of the established track
record of the Kohinoor group in the real estate market of Mumbai,
favourable location of the project and strong backing by IL&FS
Group which has invested ~ INR770 Crore in the project.
Going forward, the company's ability to complete the project with
minimum further cost and time overruns, tie-up the sales in a
timely manner and achieve healthy collections and ensure timely
debt servicing remains critical from a credit perspective.
Incorporated in 2005, KCICPL is a Special Purpose Vehicle (SPV)
promoted by the Mumbai based Kohinoor Group to undertake the
development of a commercial cum retail project in the Dadar area
of Mumbai. At present, the Kohinoor Group holds 60% of the share
capital of KCICPL through two group companies: Kohinoor Planet
Constructions Private Limited (12%) and Kohinoor Projects Pvt Ltd
(48%). The balance 40% is held by the IL&FS Group through IIRF
India Realty VII Ltd (IIRF-7) (39%) and IL&FS Trust Company
Limited (1%). IIRF-7 is a real estate focused fund managed by
IL&FS Investment Managers Limited (IIML). The project is a mixed
use development comprising of high end commercial (~0.91 msf),
retail space (~0.11 msf) and residential space (0.37 msf) on the
erstwhile Kohinoor Mills land in central Mumbai. The construction
for the project commenced in June 2009 and is estimated to be
completed by March 2016.
KOHINOOR HOSPITALS: ICRA Reaffirms 'D' Rating on INR57.41cr Loans
-----------------------------------------------------------------
ICRA has reaffirmed the long term rating outstanding on INR56.41
crore term loans and INR1.00 crore Non Fund Based (Bank
Guarantee) bank limits of Kohinoor Hospitals Private Limited at
[ICRA]D.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 56.41 [ICRA]D reaffirmed
Non Fund Based (BG) 1.00 [ICRA]D reaffirmed
The reaffirmation of rating takes into account the weak liquidity
position at a group level owing to slow sales of commercial
projects as well as start up nature of operations of the group's
recent ventures in healthcare, education and hospitality segment
which has resulted in continuing delays in debt servicing. The
company's financial profile continues to remain weak with the
operations yet to break even, reflecting the start up nature of
the business, thereby leading to an erosion of it's net worth.
Moreover, this has resulted in a high reliance on group support
for debt servicing. The rating also takes into account the
limited track record of the promoter group in the healthcare
business, modest scale of operations of the company and exposure
to concentration risks inherent in single asset companies.
ICRA has also favourably taken note of the fact that all the
facilities are fully operational with no major capital
expenditure expected to be incurred in the near term; the
presence of experienced consultants in the company's panel of
doctors which is likely to have a positive impact on the
occupancy levels of the hospital and the foray in specialized
services which expected to support profitability and well as
improve brand strength.
Going forward, the group's ability to tie up the sales of the
commercial projects in a timely manner, improve its liquidity
position and ensure timely debt servicing remains critical from a
credit perspective. Further, KHPL's ability to increase the
occupancy levels of the hospital through better utilization of
its existing facilities, scale up its operation and achieve a
healthy profitability levels would also be key rating sensitive
factors.
KHPL, promoted by the Mumbai based Kohinoor group, was
incorporated in May 2007. KHPL's board comprises of Mr. Unmesh
Manohar Joshi, Ms. Anagha Manohar Joshi and Ms. Madhavi Unmesh
Joshi. KHPL has set up a 147-bed multi specialty hospital in the
Kurla, suburb of Mumbai. The project is a part of an integrated
township project being undertaken by the group. The hospital has
commenced operations with 71 paid beds that were made fully
operational in July 2010.
For the financial year ending March 2014, KHPL reported an
operating income of INR52.72 crore (prov.) and a net loss of
INR16.96crore as compared to revenues of INR42.79 crore and net
loss of INR14.00 crore in the previous year.
METALLICA INDUSTRIES: ICRA Lowers Rating on INR40cr Loan to 'D'
---------------------------------------------------------------
ICRA has revised the long term rating assigned to the INR40.0
crore fund-based facilities of Metallica Industries Limited to
[ICRA]D from [ICRA]B+.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits 40.0 Revised from [ICRA]B+
to [ICRA]D
The rating revision reflects delays by MIL in meeting its debt
servicing obligation on account of inadequate cash flows
generated by the company from the project.
The Kamla Landmarc Group was promoted in 1974 by Mr. Ramesh Jain
to undertake construction of residential/commercial projects in
Mumbai. Currently the business is managed by Mr. Ramesh Jain, his
two sons Jitendra and Jinendra Jain and his son-in-law Ketan
Shah. The group has undertaken around 45 projects in Mumbai in
the past, with a total constructed area of around 1.95 million
sq. ft. The group entered the commercial real estate space in
2004. The group is currently executing 35 projects- 29
residential projects with a total saleable area of around 5.02
million sq. ft. and 6 commercial projects with a total saleable
area of around 0.87 million sq. ft.
MIL is a part of the Kamla Landmarc Group and has undertaken the
construction of industrial galas / offices under the name Kamla
Industrial Park at Charkop Kandivali West, Mumbai. MIL proposes
to build a industrial complex with ground plus seven floors and a
total saleable area of 2,71,072 square feet, mainly targeted at
small businesses / manufacturing units.
RADHIKA COTTEX: CRISIL Puts 'B' Rating on INR70.7 Loans
-------------------------------------------------------
CRISIL has placed its rating on the bank facilities of Radhika
Cottex Private Limited on 'Notice of Withdrawal' for a period of
180 days, at RCPL's request. The rating will be withdrawn at the
end of the notice period, in line with CRISIL's policy on
withdrawal of rating on bank loans.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 70 CRISIL B/Stable (Notice of
Withdrawal)
Proposed Long Term 0.7 CRISIL B/Stable (Notice of
Bank Loan Facility Withdrawal)
RCPL was incorporated in 2007 by Mr. Nilesh Palsana, his brother,
Mr. Mukesh Palsana, and friends. RCPL is engaged in the business
of cotton ginning and pressing at Amreli in Rajkot (Gujarat).
RAMESWAR UDYOG: ICRA Reaffirms 'B+' Rating on INR4.75cr Loan
------------------------------------------------------------
ICRA has reaffirmed the long term rating of [ICRA]B+ to INR4.75
crore (enhanced from INR2.00 crore) cash credit facility of
Rameswar Udyog Private Limited (sub limit of FDBP/FUDBP). ICRA
has also reaffirmed an [ICRA]A4 rating to INR14.75 crore
(enhanced from INR10.00 crore) short term fund based facilities
of RUPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- Fund
Based-Cash Credit (4.75) [ICRA]B+ reaffirmed
Short Term- Fund
Based-FDBP/FUDBP 14.75 [ICRA]A4 reaffirmed
Short Term- Fund
Based-Export Packing
Credit (14.75) [ICRA]A4 reaffirmed
The ratings continue to remain constrained by company's financial
risk profile marked by thin profitability, stretched capital
structure, and weak coverage indicators during FY14. The ratings
also incorporate the high competitive nature of industry and
risks arising from susceptibility of profitability to the
currency fluctuation risk due to export dominated sales profile;
though the same is mitigated to the extent of hedging undertaken
by the company.
The ratings further factor in the operations of the company
exposed to change in export incentive structure which currently
forms a considerable portion of operating profits as well as the
linkage of demand for company's product to the overall economic
scenario, though legal bindings and increasing attitude towards
safety result in marginal stability of demand.
The ratings however positively considered the experience and long
standing presence of the Nowrangroy Rameswar Group in varied
businesses, locational advantages resulting in ease of procuring
grey cloth and proximity to processing facilities and substantial
increase in revenues during current year owing to diversification
in trading of yarn.
Incorporated in 1996, Rameswar Udyog Pvt. Ltd. is a group company
of Nowrangroy Rameswar Group (NRG). NRG was formed by Late Mr.
Rameswar Ajitsaria in 1920 and is engaged in aluminium trading,
flour milling and export of textiles products. RUPL is engaged in
manufacturing and export of industrial garments. Apart from this
it also manufactures bed sheets. RUPL has its manufacturing
facility located in Ahmedabad with the registered office at
Kolkata.
Recent Results
During FY14, RUPL reported an operating income of INR191.69 crore
and profit after tax of INR1.23 crore as against operating income
of INR13.17 crore and profit after tax of INR0.68 crore during
FY13.
SAP INDUSTRIES: ICRA Suspends 'B+' Rating on INR3.27cr Loans
------------------------------------------------------------
ICRA has suspended the '[ICRA]B+' rating outstanding on the
INR0.77 crore term loan facilities and INR2.50 crore fund based
facilities and also the [ICRA]A4 rating outstanding on the INR1.0
crore fund based facilities and INR4.75 crore non-fund based bank
facilities of SAP Industries.
ICRA has also suspended the [ICRA]B+/[ICRA]A4 ratings outstanding
on the INR0.98 crore proposed bank facilities of the firm. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
firm.
SHIVALI UDYOG: CRISIL Cuts Rating on INR315.8MM Loans to 'D'
------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Shivali Udyog (I) Ltd to 'CRISIL D' from 'CRISIL BB-/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Cash Credit 230 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
Proposed Long Term 85.8 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL BB-/Stable')
The downgrade reflects recent instances of delay by Shivali Udyog
in servicing its bank facilities, marked by non-payment of
interest obligations that have been outstanding for over 30 days.
The delays were because of weak operations primarily on account
of the temporary shutdown of Shivali Udyog's rolling mill unit
since October 2013, which accounted for bulk of its revenue.
CRISIL believes that Shivali Udyog's liquidity will remain tight
over the medium term because of stretched working capital cycle.
Furthermore, CRISIL believes that Shivali Udyog will continue to
face difficulties in servicing its debt over the medium term
given that operational hindrances are expected to continue over
the medium term.
CRISIL will continue to track Shivali Udyog's progress in
resolving interest dues and monitor potential improvement in the
company's operations on resumption of its rolling mill unit.
Shivali Udyog, based in Raipur (Chhattisgarh), was acquired by
its current promoters, Mr. Vinod Agrawal and Mr. Ashok Agrawal,
in March 2002. The promoters have experience of more than three
decades in the iron and steel industry. The company produces mild
steel (MS) wire rods, MS rounds, thermo-mechanically treated
bars, and hard bright (HB) wires. Its facilities have capacity of
41,000 tonnes per annum (tpa) for HB wires and rolling capacity
of 100,000 tpa.
Shivali Udyog reported a profit after tax (PAT) of INR1.6 million
on net sales of INR887.6 million for 2012-13 (refers to financial
year, April 1 to March 31), against a PAT of INR3.1 million on
net sales of INR1027.0 million for 2011-12.
SMT. KANCHAMREDDY: ICRA Suspends 'B' Rating on INR5cr Loan
----------------------------------------------------------
Smt. Kanchamreddy Malleswaramma Memorial Educational Society
ICRA has suspended [ICRA]B rating assigned to the INR5.00 crore
term loan of Smt. Kanchamreddy Malleswaramma Memorial Educational
Society. The suspension follows ICRA's inability to carry out a
rating surveillance in the absence of the requisite information
from the company.
SRI VENKATRAMANA: ICRA Reaffirms 'B+' Rating on INR17cr Loans
-------------------------------------------------------------
ICRA has reaffirmed the long term rating of [ICRA]B+ to the
INR17.0 crore fund based working capital facilities of Sri
Venkatramana Paper Mills Private Limited. ICRA has also
reaffirmed the short term rating of [ICRA]A4 to the INR7.0 crore
non-fund based bank limits of SVPMPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term, Fund 14.50 [ICRA]B+ reaffimed
based facilities
Long term, Proposed 2.50 [ICRA]B+ reaffimed
fund based facilities
Short term, Non fund 7.00 [ICRA]A4 reaffimed
based facilities
The reaffirmation of the ratings considers the company's presence
in the highly fragmented and competitive B-grade paper segment;
and the weak profitability due to the high operating and
financing costs. While the unavailability of continuous power
supply has led to low capacity utilization, the fluctuations in
raw materials costs have resulted in volatility in operating
margins.
The ratings are also impacted by the significant debt-funded
capital expenditure that is being incurred for setting up a gas
based power plant; and the large delays in commissioning which
have resulted in levy of heavy penalties by the gas supplier.
ICRA also notes that the dollar denominated gas price has been
increasing sharply in the recent past due to the sustained rupee
depreciation and coupled with the Government's proposal to
increase the gas price, this would render the power plant
uncompetitive at the current tariff expectations.
The ratings, however, consider the favourable prospects for the
paper industry in India driven by the increasing demand; the
promoters' significant experience in the paper industry and the
established network of dealers for the PWP segment and repeat
orders in the newsprint segment. The ratings further take into
account the expected improvement in the profitability of the
company post commissioning of the power plant provided steady gas
availability and a favourable pricing regime.
Sri Venkatramana Paper Mills Pvt Ltd was incorporated in the year
2008 as a private limited company to manufacture Printing and
Writing Paper (PWP) and newsprint. The operations were started in
2009 by purchasing the demerged paper division of Sam Turbo
Industries Limited, Coimbatore. The assets of the company were
transferred to SVPMPL and production was started in 2010.
Currently, the company produces various types of PWP and
newsprint and has many prominent local daily newspapers as its
customers. The company is part of a three company group set up by
Mr. Sanjeevi. The oldest entity is Sri Balaji Traders. The Group
also owns a spinning mill by the name of Amaravathi Spinning
Mills (Rajapalayam) Private Limited.
SURYODAYA COLLEGE: CRISIL Cuts Rating on INR62.5MM Loans to 'D'
---------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Suryodaya College of Engineering and Technology to 'CRISIL D'
from 'CRISIL B-/Stable' due to delays in payment of term debt
obligations.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 2.5 CRISIL D (Downgraded from
'CRISIL B-/Stable')
Term Loan 60 CRISIL D (Downgraded from
'CRISIL B-/Stable')
SCET also has a weak financial risk profile, marked by weak
liquidity due to inadequate cash accrual generation against term
debt obligations over the medium term, and its exposure to
regulatory risks in the education sector. These weaknesses are
partially offset by the institute's diversified portfolio of
courses and financial support from the promoters.
SCET is a part of the National Rural Development and Research
Trust (NRDRT). NRDRT was set up in 2008 by the Chafle family of
Nagpur (Maharashtra). NRDRT runs SCET in Nagpur. SCET started its
first academic year in 2010-11.
SCET reported an excess of expenditure over income of INR4.7
million on revenue of INR23 million for 2012-13 (refers to
financial year, April 1 to March 31).
TARAPUR TRANSFORMERS: CRISIL Cuts Rating on INR492.5MM Loans to D
-----------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Tarapur Transformers Ltd to 'CRISIL D/CRISIL D' from 'CRISIL BB-
/Stable/CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Bank Guarantee 130 CRISIL D (Downgraded from
'CRISIL A4+')
Cash Credit 120 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
Letter of Credit 50 CRISIL D (Downgraded from
'CRISIL A4+')
Proposed Long Term 142.5 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL BB-/Stable')
Rupee Term Loan 50 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
The downgrade reflects instances of delay by Tarapur in servicing
its term loan. The delays have stemmed from the company's
continuing weak operating performance, marked by an operating
loss for the nine months ended December 31, 2013, which, coupled
with high working capital requirements, has weakened its
liquidity.
The ratings are based only on publicly available information as
Tarapur has not cooperated with CRISIL in its surveillance
process.
Tarapur, incorporated in 1988, repairs and manufactures power and
distribution transformers. The company was a loss-making entity
when Bilpower Ltd (rated 'CRISIL D/CRISIL D') acquired 70 per
cent of its equity shares in 2006, after which it started making
profits. Tarapur made its initial public offering in April 2010,
following which, Bilpower Ltd's equity stake in it reduced to
41.46 per cent. Bilpower Ltd continues to have a controlling
stake in Tarapur. Tarapur's unit in Boisar (Maharashtra)
undertakes repairs, while its second unit in Wada (Maharashtra),
which commenced operations in 2008-09, manufactures transformers.
The company has developed facilities (at an outlay of INR430
million) to manufacture transformers ranging from 1 kilovolt
ampere (kVA) to 5000 kVA.
Tarapur reported, on a provisional basis, a net loss of INR29.9
million on net sales of INR543.5 million for 2012-13; it reported
a net loss of INR77.7 million on net sales of INR315.4 million
for 2011-12.
U V COTTON: ICRA Raises Rating on INR21.3cr Loans to 'B+'
---------------------------------------------------------
ICRA has upgraded the long term rating for INR20.00 crore
(enhanced from INR12.00 crore) cash credit facility and the
INR1.30 crore (reduced from INR2.10 crore) term loan facility of
U V Cotton & Oil Industries from [ICRA]B to [ICRA]B+. ICRA has
also reaffirmed the short term rating at [ICRA]A4 rating to
INR0.20 crore bank guarantee facility of UVCOI2.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 20.00 Upgraded to [ICRA]B+
from [ICRA]B
Term Loan 1.30 Upgraded to [ICRA]B+
from [ICRA]B
Bank Guarantee 0.20 [ICRA]A4 reaffirmed
The ratings revision reflects the stabilization of the operations
in FY14 accompanied with commencement of crushing operations
which has led to robust growth in revenues. The ratings also
favorably take into account the extensive experience of the
partners in cotton ginning industry and strategic location of the
plant in the cotton producing belt of India giving it easy access
to raw cotton. The ratings also positively factor in the
favorable outlook for cotton and cotton seed demand; Gujarat is
also the biggest market for cotton seed oil consumption in India.
The ratings however remain constrained by UVCOI's low operating
margins resulting from limited value addition and highly
competitive & fragmented industry structure due to low entry
barriers. Further, ICRA is cognizant of the fact that the company
continues to remain exposed to adverse movements in raw material
prices, government regulations on MSP and export quota, and low
value additive nature of the work, which keeps the profitability
metrics and cash accruals at modest levels. Also, being a
partnership firm, any substantial withdrawal by the partners
could have an adverse impact on the capital structure of the
firm.
U V Cotton & Oil Industries incorporated in 2011 is promoted by
Mr. Chandubhai Khachar and other family members. The firm is
engaged in cotton ginning & pressing to produce cotton bales and
cotton seed. The firm has installed 24 ginning machines with
installed capacity of producing 250 cotton bales per day and 17
crushing machines having installed capacity to manufacture 25 MT
cotton seeds oil per day.
Recent Results
During FY14 (unaudited provisional financials), the firm reported
an operating income of INR109.75 crore and net profit of INR0.62
crore as against operating income of INR73.97 crore and net
profit of INR0.61 crore in FY13.
UMA MAHESWARI: ICRA Reaffirms 'C+' Rating on INR10cr Loan
---------------------------------------------------------
ICRA has reaffirmed the long term rating of '[ICRA]C+' for
INR10.00 crore fund-based facilities of Uma Maheswari
Constructions Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits 10.00 [ICRA]C+
The rating reaffirmation continues to factor in the stretched
liquidity and cash flows for UMC as reflected in the full
utilization of the working capital limits by the company owing to
zero sales bookings for the ongoing commercial project, also
resulting in high market risks. Approx 95% of the construction is
complete even as no sales bookings have been finalized. Thus
timely debt servicing would directly depend on the level of
booking in the project and/or the timely infusion of funds by the
promoters. The rating however, draws comfort from the established
track record of UMC in the real estate segment largely within
Vishakhapatnam where the company has been involved in development
of housing projects for affiliates of the Andhra Pradesh
Government, VUDA (Vishakhapatnam Urban Development Authority)
etc.
Uma Maheswari Constructions was formed in 1978 as a
proprietorship concern by Mr. P Kasi Viswanadha Raju. It was into
construction of buildings mostly for affiliates of AP government.
The company was converted into private limited in 2005 and has
been doing real estate projects in Bangalore and Vishakhapatnam.
In Vishakhapatnam the company has been involved in mass housing
projects, VUDA (Vishakhapatnam Urban Development Authority)
residential apartments and major corporate buildings. The company
moved from construction to real estate 15 years back.
VENKATESH COTTON: ICRA Suspends 'B' Rating on INR10.15cr Loan
-------------------------------------------------------------
ICRA has suspended the long term rating of [ICRA]B outstanding on
the INR10.15 crore long term fund based facilities of Venkatesh
Cotton Company. The suspension follows ICRA's inability to carry
out a rating surveillance in the absence of the requisite
information from the company.
VCC was incorporated by Mr. Avinash Bihani, Mr. Devanand Dhoot,
Mr. Piyush Binayake and Mr. Ashish Binayake in 2010. The firm has
a manufacturing unit at Bhokar, Nanded with an installed capacity
of 35,000 bales per annum.
=========
J A P A N
=========
SONY CORP: Posts JPY128.4-Bil. Net Loss for Year Ended March 31
---------------------------------------------------------------
Kazuaki Nagata at The Japan Times reports that Sony Corp.
continues to struggle to rebuild its electronics businesses,
reporting on a JPY128.4 billion net loss for the business year
that ended March 31.
Its sales for fiscal 2013 increased to JPY7.7 trillion, up
14.3 percent, thanks to a weaker yen, steady sales of the
PlayStation 4 and smartphones. But operating profit plunged to
JPY26.5 billion, down 88.3 percent, the report discloses.
The Japan Times relates that the drop in operating profit was due
to a JPY91.7 billion loss related to the PC business, which the
firm decided to sell, impairment loss of the battery business and
decreasing profit from selling assets.
The Japan Times says while its movie, music and financial
sections earned around JPY270 billion in operating profit, the
electronics giant posted a JPY95.2 billion operating loss from
the electronics business, which ran a deficit for the third
straight year.
Yet the firm stressed that the profitability of the electronics
arm has improved, with its TV business bleeding less, for
instance, the report notes.
Sony managed to secure a net profit of JPY41.5 billion in fiscal
2012, and initially forecast that it would again turn a profit in
2013. But it subsequently revised the initial forecast downward
three times, while deciding to sell its PC business, cutting
5,000 jobs and spinning off the money-losing TV business into a
separate company.
The outlook for fiscal 2014 still appears grim, as Sony has
forecast a net loss of JPY50 billion.
Based in Japan, Sony Corporation -- http://www.sony.net/--
engages in the operation of imaging products and solution (IP&S),
game, mobile products and communication (MP&C), home
entertainment and sound (HE&S), device, movie, music, financial
and other business. The IP&S segment provides digital imaging
products and professional solutions.
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 29, 2014, Moody's Japan K.K. has downgraded the Issuer
Rating and the long-term senior unsecured bond rating of Sony
Corporation to Ba1 from Baa3. The ratings outlook is stable.
At the same time, Moody's has downgraded the short-term rating of
its supported subsidiary, Sony Global Treasury Services Plc, to
Not Prime from Prime-3.
====================
N E W Z E A L A N D
====================
ROSS ASSET: Liquidators Seek to Bankrupt David Ross
---------------------------------------------------
Hamish Mcnicol at Stuff.co.nz reports that fraudster David Ross
took NZ$3.5 million from his company before it went broke and
liquidators want it back.
Part of the cash will come from Mr. Ross's share of household
goods from his Lower Hutt mansion, due to be auctioned, the
report says.
According to the report, liquidators will seek to bankrupt
Mr. Ross, following the settlement of a NZ$3.5 million debt he
and his wife owed his company, Ross Asset Management.
In November, Mr. Ross was sentenced to jail for 10 years and 10
months for operating a fraudulent scheme in which private
investors lost about NZ$115 million, the report recalls.
Ross Asset Management (Ram) fleeced at least 700 investors
through portfolios in which they thought they had more than
NZ$380 million, the report notes.
Stuff.co.nz relates that Mr. Ross and wife Jillian were jointly
indebted to Ram for NZ$3.49 million, according to new financial
statements just out. But the value of half the sale of the
family's NZ$2.2 million mansion, including half its chattels, as
well as two other properties, were to be paid to investors in
settlement of this debt.
In February, the High Court at Wellington approved the deal,
which would see Jillian Ross take half, to the fury of investors
who felt "very uncomfortable" with the deal.
The home eventually sold for about NZ$1.8 million, nearly
NZ$400,000 below its rating valuation, the report notes.
According to the report, PricewaterhouseCoopers liquidator
John Fisk said that Jillian Ross's debt had been settled with
Ram, but liquidators now wanted to bankrupt her husband.
Two other properties he owned -- a NZ$195,000 section on the
Wairarapa coast, and a NZ$690,000 house in Eastbourne -- were
about to go up for sale, Stuff.co.nz says.
Half of the household chattels were being sold by auction house
Dunbar Sloane, meaning about NZ$1.8 million of the NZ$3.5 million
debt could eventually be settled, the report adds.
As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 8, 2012, the High Court appointed PricewaterhouseCoopers
partners John Fisk and David Bridgman as Receivers and Managers
to Ross Asset Management Limited and nine other associated
entities following application by the Financial Markets
Authority. The associated entities are:
* Bevis Marks Corporation Limited;
* Dagger Nominees Limited;
* McIntosh Asset Management Limited;
* Mercury Asset Management Limited;
* Ross Investment Management Limited;
* Ross Unit Trusts Management Limited;
* United Asset Management Limited;
* Chapman Ross Trust;
* Woburn Ross Trust;
* Ace Investments Limited or Ace Investment Trust Limited or
Ace Investment Trust;
* Vivian Investments Limited; and
* Ross Units Trusts Limited.
The Receivers and Managers have also been appointed to Wellington
investment adviser David Robert Gilmore Ross personally.
Mr. Fisk said they have identified investments of nearly
NZ$450 million held on behalf of more than 900 investors across
1,720 individual accounts.
The High Court in mid-December ordered John Fisk and David
Bridgman be appointed liquidators of these companies:
-- Ross Asset Management Limited (In Receivership);
-- Bevis Marks Corporation Limited (In Receivership);
-- McIntosh Asset Management Limited (In Receivership); and
-- Mercury Asset Management Limited (In Receivership).
====================
S O U T H K O R E A
====================
MAGNACHIP SEMICONDUCTOR: S&P Alters Outlook on 'BB-' CCR to Neg.
----------------------------------------------------------------
Standard & Poor's Ratings Services said it has revised its
outlook on its 'BB-' long-term corporate credit rating on Korea-
based analog and mixed-signal semiconductor manufacturer
MagnaChip Semiconductor Corp. (MagnaChip) to negative. At the
same time, we affirmed our 'BB-' long-term corporate credit and
debt ratings on the company.
"Our revision of the outlook to negative on our ratings on
MagnaChip mainly reflects increasing uncertainties concerning the
outcome of a delay in the company's filing of its financial
statements for fiscal 2013 and its proposed restatement of
previous results, and the likely negative effect on the
company's business and financial conditions," said Hong Kong-
based credit analyst JunHong Park. "On May 12, 2014, the company
announced the process of filing and restating its financial
statements would take several more months despite substantial
progress. On March 11, 2014, the company announced that it
had incorrectly recognized revenue on certain transactions and
would delay disclosure of its 2013 financial results."
"We believe the need to restate its financial results shows
weakness in the company's internal controls. We also believe the
restatement could potentially lead to a substantial deviation in
the company's revenue and profitability-related ratios from our
base-case assumptions. However, we do not expect the error in
revenue recognition to substantially alter the company's cash
flows apart from potential extra interest payments to holders
of US$225 million in its bonds as a result of a covenant breach,"
said Moody's.
"Our base case continues to anticipate the event will have little
negative effect on the company's liquidity, given that it had
cash and equivalents of about $150 million as of the end of 2013
and no scheduled debt repayments in 2014. Nonetheless, despite a
very low likelihood, bond holders could choose to accelerate bond
repayments under the bond indenture if the company fails to
deliver its financial statements by the end of 2014," S&P said.
"We assess the company's business risk profile as "weak,"
reflecting volatility in the semiconductor industry, potential
variability in the company's operating performance, and its
relatively small scale. However, the company's improving business
diversification, mainly from growth in its power solutions
division, should offset the potential variability to some extent,
in our opinion," said S&P.
"We view MagnaChip's financial risk profile as "significant,"
reflecting the company's moderate debt and potential variability
in measures of its financial condition. In our base-case
scenario, we anticipate that MagnaChip will be able to maintain a
ratio of debt to EBITDA of about 2.0x-3.0x while generating
marginal free operating cash flows," said S&P.
The negative outlook reflects uncertainties over the timing and
outcome of the company's financial restatement and the impact on
measures of its credit quality. "We believe the delay in
reporting its financial statements and the need for restatements
demonstrates weakness in the company's internal controls," S&P
said.
"We may lower the ratings if the company does not complete out
its financial reporting and restatements over the next one to two
quarters or if the restatement results in a significantly
negative financial impact on the company and, as a result, we
lower our assessment of the company's management and governance
to "weak" from "fair." We could also lower our ratings if the
company's operating profitability or cash flows weaken
significantly and its debt to EBITDA ratio exceeds 3.0x," said
S&P.
"We may revise the outlook back to stable if the restatement does
not materially change the company's profitability and measures of
its cash flow, leading us to believe the company could maintain a
level of profitability comparable to the average for its industry
and debt to EBITDA below 3x on a sustainable basis," said S&P.
===============
X X X X X X X X
===============
* Large Companies with Insolvent Balance Sheets
-----------------------------------------------
Total
Total Shareholders
Assets Equity
Company Ticker (US$MM) (US$MM)
------- ------ ------ ------------
AUSTRALIA
AAT CORP LTD AAT 32.50 -13.46
ANITTEL GROUP LT AYG 18.43 -0.26
ATLANTIC LTD ATI 490.17 -25.68
AUSTRALIAN ZI-PP AZCCA 77.75 -2.57
AUSTRALIAN ZIRC AZC 77.75 -2.57
BIRON APPAREL LT BIC 19.71 -2.22
BOUNTY MINING LT BNT 10.54 -0.94
CLARITY OSS LTD CYO 33.12 -11.66
CMA CORP LTD CMV 127.41 -51.00
CWH RESOURCES LT CWH 10.71 -3.03
IDM INTERNATIONA IDM 30.99 -23.62
LIONHUB GROUP LT LHB 19.21 -26.52
MIRABELA NICKEL MBN 335.09 -179.03
NATURAL FUEL LTD NFL 19.38 -121.51
PACT GROUP HOLDI PGH 1,120.30 -982.11
PENRICE SODA HOL PSH 122.46 -26.85
RIVERCITY MOTORW RCY 386.88 -809.13
RUBICOR GROUP LT RUB 45.20 -75.31
STERLING PLANTAT SBI 59.08 -6.07
STIRLING RESOURC SRE 16.53 -8.12
STRAITS RESOURCE SRQ 208.51 -29.73
SWAN GOLD MINING SWA 36.43 -9.08
TZ LTD TZL 12.88 -8.73
CHINA
ANHUI GUOTONG-A 600444 79.12 -10.53
CHANG JIANG-A 520 770.91 -176.56
CHINA GREAT LAND CGL 16.52 -19.01
CHINA OILFIELD T COT 22.00 -16.71
FORGAME HOLDINGS 484 83.73 -21.92
HEBEI BAOSHUO -A 600155 114.00 -104.15
HULUDAO ZINC-A 751 507.79 -532.25
HUNAN TIANYI-A 908 59.37 -1.14
JIANGSU ZHONGDA 600074 338.59 -29.88
NANNING CHEMIC-A 600301 391.41 -43.60
QINGDAO YELLOW 600579 122.36 -71.04
QINGHAI SUNSHI-A 600381 394.70 -78.28
SHENZ CHINA BI-A 17 28.50 -283.65
SHENZ CHINA BI-B 200017 28.50 -283.65
SHIJIAZHUANG D-A 958 241.31 -111.50
SHUNFENG PHOTOVO 1165 411.73 -51.06
TAIYUAN TIANLO-A 600234 63.28 -17.71
WUHAN BOILER-B 200770 217.13 -213.03
WUHAN XIANGLON-A 600769 77.45 -103.43
YUNNAN JINGGU FO 600265 84.92 -2.90
HONG KONG
BIRMINGHAM INTER 2309 59.95 -12.80
BUILDMORE INTL 108 17.36 -70.34
CHINA ENVIRONMEN 986 66.65 -0.87
CHINA HEALTHCARE 673 34.76 -0.75
CHINA OCEAN SHIP 651 248.21 -106.72
CNC HOLDINGS 8356 99.16 -9.03
CROSBY CAPITAL 8088 16.40 -20.27
EFORCE HLDGS LTD 943 60.73 -9.56
GRANDE HLDG 186 255.10 -208.18
INNO-TECH HLDGS 8202 84.54 -116.82
LANGHAM -SS 1270 684.55 -86.21
LONG SUCCESS INT 8017 50.05 -7.44
MASCOTTE HLDGS 136 57.51 -81.70
MEGA EXPO HOLDIN 1360 17.00 -0.53
MELCOLOT LTD 8198 13.69 -28.83
NORSTAR FOUNDERS 2339 21.97 -56.33
PALADIN LTD 495 159.65 -9.17
PROVIEW INTL HLD 334 314.87 -294.85
SINO RESOURCES G 223 29.34 -24.77
SURFACE MOUNT SMT 32.88 -10.68
VXL CAPITAL LTD 727 74.79 -0.16
INDONESIA
APAC CITRA CENT MYTX 176.66 -6.99
ARPENI PRATAMA APOL 249.84 -319.77
ASIA PACIFIC POLY 375.58 -815.83
BUMI RESOURCES BUMI 7,027.47 -18.17
ICTSI JASA PRIMA KARW 56.41 -6.12
JAKARTA KYOEI ST JKSW 24.92 -34.90
MATAHARI DEPT LPPF 209.66 -89.74
ONIX CAPITAL TBK OCAP 13.22 -1.03
RENUKA COALINDO SQMI 15.84 -0.48
SUMALINDO LESTAR SULI 95.14 -18.99
UNITEX TBK UNTX 18.83 -18.53
INDIA
ABHISHEK CORPORA ABSC 53.66 -25.51
AGRO DUTCH INDUS ADF 85.09 -22.81
ALPS INDUS LTD ALPI 201.29 -41.70
AMIT SPINNING AMSP 12.85 -7.68
ARTSON ENGR ART 11.81 -10.16
ASHAPURA MINECHE ASMN 161.89 -51.58
ASHIMA LTD ASHM 63.23 -48.94
ATV PROJECTS ATV 48.47 -43.93
BELLARY STEELS BSAL 451.68 -108.50
BENZO PETRO INTL BPI 26.77 -1.05
BHAGHEERATHA ENG BGEL 22.65 -28.20
BLUE BIRD INDIA BIRD 122.02 -59.13
CELEBRITY FASHIO CFLI 24.96 -8.26
CHESLIND TEXTILE CTX 20.51 -0.03
CLASSIC DIAMONDS CLD 66.26 -6.84
COMPUTERSKILL CPS 14.90 -7.56
DCM FINANCIAL SE DCMFS 18.46 -9.46
DFL INFRASTRUCTU DLFI 42.74 -6.49
DIGJAM LTD DGJM 99.41 -22.59
DISH TV INDIA DITV 579.01 -28.55
DISH TV INDI-SLB DITV/S 579.01 -28.55
DUNCANS INDUS DAI 122.76 -227.05
ENSO SECUTRACK ENSO 15.57 -0.46
EURO CERAMICS EUCL 110.62 -6.83
EURO MULTIVISION EURO 36.94 -9.95
FERT & CHEM TRAV FCT 311.92 -35.19
GANESH BENZOPLST GBP 44.05 -15.48
GANGOTRI TEXTILE GNTX 54.67 -14.22
GOKAK TEXTILES L GTEX 46.36 -0.29
GOLDEN TOBACCO GTO 97.40 -18.24
GSL INDIA LTD GSL 29.86 -42.42
GSL NOVA PETROCH GSLN 16.53 -1.31
GUJARAT STATE FI GSF 10.26 -303.64
GUPTA SYNTHETICS GUSYN 44.18 -6.34
HARYANA STEEL HYSA 10.83 -5.91
HEALTHFORE TECHN HTEC 14.74 -46.64
HINDUSTAN ORGAN HOC 74.72 -24.07
HINDUSTAN PHOTO HPHT 49.58 -1,832.65
HMT LTD HMT 108.71 -572.12
ICDS ICDS 13.30 -6.17
INDAGE RESTAURAN IRL 15.11 -2.35
INTEGRAT FINANCE IFC 49.83 -51.32
JCT ELECTRONICS JCTE 80.08 -76.70
JENSON & NIC LTD JN 16.49 -71.70
JET AIRWAYS IND JETIN 3,368.77 -335.45
JET AIRWAYS -SLB JETIN/S 3,368.77 -335.45
JOG ENGINEERING VMJ 45.90 -5.28
KALYANPUR CEMENT KCEM 23.39 -42.66
KERALA AYURVEDA KERL 13.97 -1.69
KIDUJA INDIA KDJ 11.16 -3.43
KINGFISHER AIR KAIR 515.93 -2,371.26
KINGFISHER A-SLB KAIR/S 515.93 -2,371.26
KITPLY INDS LTD KIT 14.77 -58.78
KLG SYSTEL LTD KLGS 40.64 -27.37
LML LTD LML 43.95 -78.18
MADRAS FERTILIZE MDF 167.72 -56.20
MAHA RASHTRA APE MHAC 14.49 -12.96
MAHANAGAR TELE MTNL 4,845.41 -511.72
MAHANAGAR TE-SLB MTNL/S 4,845.41 -511.72
MALWA COTTON MCSM 44.14 -24.79
MILTON PLASTICS MILT 17.67 -51.22
MODERN DAIRIES MRD 38.61 -3.81
MOSER BAER INDIA MBI 727.13 -165.63
MOSER BAER -SLB MBI/S 727.13 -165.63
MTZ POLYFILMS LT TBE 31.94 -2.57
MURLI INDUSTRIES MRLI 262.39 -38.30
MYSORE PAPER MSPM 87.99 -8.12
NATL STAND INDI NTSD 22.09 -0.73
NAVCOM INDUS LTD NOP 10.19 -3.53
NICCO CORP LTD NICC 71.84 -4.91
NICCO UCO ALLIAN NICU 23.25 -83.90
NK INDUS LTD NKI 141.35 -7.71
NRC LTD NTRY 63.70 -53.01
NUCHEM LTD NUC 24.72 -1.60
PANCHMAHAL STEEL PMS 51.02 -0.33
PARAMOUNT COMM PRMC 124.96 -0.52
PARASRAMPUR SYN PPS 99.06 -307.14
PAREKH PLATINUM PKPL 61.08 -88.85
PIONEER DISTILLE PND 53.74 -5.62
PREMIER INDS LTD PRMI 11.61 -6.09
PRIYADARSHINI SP PYSM 20.80 -2.28
QUADRANT TELEVEN QDTV 150.43 -137.48
QUINTEGRA SOLUTI QSL 16.76 -17.45
RAMSARUP INDUSTR RAMI 433.89 -89.28
RATHI ISPAT LTD RTIS 44.56 -3.93
RELIANCE BROADCA RBN 86.97 -0.59
RELIANCE MEDIAWO RMW 425.22 -21.31
RELIANCE MED-SLB RMW/S 425.22 -21.31
RENOWNED AUTO PR RAP 14.12 -1.25
RMG ALLOY STEEL RMG 66.61 -12.99
ROLLATAINERS LTD RLT 22.97 -22.24
ROYAL CUSHION RCVP 14.70 -75.18
SAAG RR INFRA LT SAAG 12.54 -4.93
SADHANA NITRO SNC 16.74 -0.58
SANATHNAGAR ENTE SNEL 49.23 -6.78
SANCIA GLOBAL IN SGIL 78.82 -25.13
SBEC SUGAR LTD SBECS 92.44 -5.61
SCOOTERS INDIA SCTR 19.75 -13.35
SERVALAK PAP LTD SLPL 61.57 -7.63
SHAH ALLOYS LTD SA 168.13 -81.60
SHALIMAR WIRES SWRI 22.79 -27.18
SHAMKEN COTSYN SHC 23.13 -6.17
SHAMKEN MULTIFAB SHM 60.55 -13.26
SHAMKEN SPINNERS SSP 42.18 -16.76
SHREE GANESH FOR SGFO 44.50 -2.89
SHREE KRISHNA SHKP 14.62 -0.92
SHREE RAMA MULTI SRMT 38.90 -4.49
SIDDHARTHA TUBES SDT 75.90 -11.45
SIMBHAOLI SUGAR SBSM 268.76 -54.47
SITI CABLE NETWO SCNL 219.45 -9.68
SPICEJET LTD SJET 563.64 -41.19
SQL STAR INTL SQL 10.58 -3.28
STATE TRADING CO STC 826.29 -276.56
STELCO STRIPS STLS 14.90 -5.27
STI INDIA LTD STIB 21.69 -2.13
STL GLOBAL LTD SHGL 30.73 -5.62
STORE ONE RETAIL SORI 15.48 -59.09
SUPER FORGINGS SFS 14.62 -7.00
SURYA PHARMA SUPH 370.28 -9.97
TAMILNADU JAI TNJB 17.07 -1.00
TATA METALIKS TML 156.70 -5.36
TATA TELESERVICE TTLS 1,311.30 -138.25
TATA TELE-SLB TTLS/S 1,311.30 -138.25
TODAYS WRITING TWPL 18.58 -25.67
TRIUMPH INTL OXIF 58.46 -14.18
TRIVENI GLASS TRSG 19.71 -10.45
TUTICORIN ALKALI TACF 19.86 -19.58
UDAIPUR CEMENT W UCW 11.38 -10.53
UNIFLEX CABLES UFCZ 47.46 -7.49
UNIWORTH LTD WW 149.50 -151.14
UNIWORTH TEXTILE FBW 22.54 -35.03
USHA INDIA LTD USHA 12.06 -54.51
VANASTHALI TEXT VTI 14.59 -5.80
VENUS SUGAR LTD VS 11.06 -1.08
WANBURY LTD WANB 141.86 -3.91
JAPAN
FLIGHT HOLDINGS 3753 10.10 -2.62
GOYO FOODS INDUS 2230 11.79 -1.51
HARAKOSAN CO 8894 186.55 -8.07
IDEA INTERNATION 3140 23.66 -0.08
KANMONKAI CO LTD 3372 42.64 -0.81
KOREA
DVS KOREA CO LTD 46400 17.40 -1.20
ORIENTAL PRECISI 14940 224.92 -79.83
ROCKET ELEC-PFD 425 111.09 -0.42
ROCKET ELECTRIC 420 111.09 -0.42
SHINIL ENG CO 14350 199.04 -2.53
SSANGYONG ENGINE 12650 1,231.13 -119.47
STX OFFSHORE & S 67250 7,627.42 -1,124.38
TEC & CO 8900 139.98 -16.61
TONGYANG NETWORK 30790 311.91 -36.46
WOONGJIN HOLDING 16880 2,197.34 -635.50
MALAYSIA
HAISAN RESOURCES HRB 41.31 -11.54
HIGH-5 CONGLOMER HIGH 41.63 -34.19
HO HUP CONSTR CO HO 59.28 -16.64
PETROL ONE RESOU PORB 51.39 -4.00
SUMATEC RESOURCE SMTC 169.12 -26.18
VTI VINTAGE BHD VTI 17.74 -3.63
NEW ZEALAND
NZF GROUP LTD NZF NZ Equity 11.69 -4.60
PULSE ENERGY LTD PLE NZ Equity 11.29 -3.44
PHILIPPINES
CYBER BAY CORP CYBR 14.14 -21.59
FIL ESTATE CORP FC 40.90 -15.77
FILSYN CORP A FYN 23.11 -11.69
FILSYN CORP. B FYNB 23.11 -11.69
GOTESCO LAND-A GO 21.76 -19.21
GOTESCO LAND-B GOB 21.76 -19.21
LIBERTY TELECOMS LIB 108.53 -19.42
MRC ALLIED INC MRC 27.06 -2.56
PICOP RESOURCES PCP 105.66 -23.33
STENIEL MFG STN 21.07 -11.96
UNIWIDE HOLDINGS UW 50.36 -57.19
SINGAPORE
ADVANCE SCT LTD ASCT 19.68 -22.46
CEFC INTL LTD SUNE 95.25 -0.31
HL GLOBAL ENTERP HLGE 83.11 -4.63
IGG INC 8002 21.53 -55.84
SCIGEN LTD-CUFS SIE 68.70 -42.35
SUNMOON FOOD COM SMOON 20.26 -17.36
TT INTERNATIONAL TTI 298.35 -82.84
UNITED FIBER SYS UFS 65.52 -56.60
THAILAND
ABICO HLDGS-F ABICO/F 15.28 -4.40
ABICO HOLDINGS ABICO 15.28 -4.40
ABICO HOLD-NVDR ABICO-R 15.28 -4.40
ASCON CONSTR-NVD ASCON-R 59.78 -3.37
ASCON CONSTRUCT ASCON 59.78 -3.37
ASCON CONSTRU-FO ASCON/F 59.78 -3.37
BANGKOK RUBBER BRC 77.91 -114.37
BANGKOK RUBBER-F BRC/F 77.91 -114.37
BANGKOK RUB-NVDR BRC-R 77.91 -114.37
CALIFORNIA W-NVD CAWOW-R 28.07 -11.94
CALIFORNIA WO-FO CAWOW/F 28.07 -11.94
CALIFORNIA WOW X CAWOW 28.07 -11.94
CIRCUIT ELEC PCL CIRKIT 16.79 -96.30
CIRCUIT ELEC-FRN CIRKIT/F 16.79 -96.30
CIRCUIT ELE-NVDR CIRKIT-R 16.79 -96.30
DATAMAT PCL DTM 12.69 -6.13
DATAMAT PCL-NVDR DTM-R 12.69 -6.13
DATAMAT PLC-F DTM/F 12.69 -6.13
ITV PCL ITV 36.02 -121.94
ITV PCL-FOREIGN ITV/F 36.02 -121.94
ITV PCL-NVDR ITV-R 36.02 -121.94
K-TECH CONSTRUCT KTECH 38.87 -46.47
K-TECH CONSTRUCT KTECH/F 38.87 -46.47
K-TECH CONTRU-R KTECH-R 38.87 -46.47
KUANG PEI SAN POMPUI 17.70 -12.74
KUANG PEI SAN-F POMPUI/F 17.70 -12.74
KUANG PEI-NVDR POMPUI-R 17.70 -12.74
MANGPONG 1989 PC MPG 11.83 -0.91
MANGPONG 1989 PC MPG/F 11.83 -0.91
MANGPONG 19-NVDR MPG-R 11.83 -0.91
PATKOL PCL PATKL 52.89 -30.64
PATKOL PCL-FORGN PATKL/F 52.89 -30.64
PATKOL PCL-NVDR PATKL-R 52.89 -30.64
PICNIC CORP-NVDR PICNI-R 101.18 -175.61
PICNIC CORPORATI PICNI 101.18 -175.61
PICNIC CORPORATI PICNI/F 101.18 -175.61
SAHAMITR PRESS-F SMPC/F 27.92 -1.48
SAHAMITR PRESSUR SMPC 27.92 -1.48
SAHAMITR PR-NVDR SMPC-R 27.92 -1.48
SHUN THAI RUBBER STHAI 19.89 -0.59
SHUN THAI RUBB-F STHAI/F 19.89 -0.59
SHUN THAI RUBB-N STHAI-R 19.89 -0.59
SUNWOOD INDS PCL SUN 19.86 -13.03
SUNWOOD INDS-F SUN/F 19.86 -13.03
SUNWOOD INDS-NVD SUN-R 19.86 -13.03
TONGKAH HARBOU-F THL/F 62.30 -1.84
TONGKAH HARBOUR THL 62.30 -1.84
TONGKAH HAR-NVDR THL-R 62.30 -1.84
TRANG SEAFOOD TRS 15.18 -6.61
TRANG SEAFOOD-F TRS/F 15.18 -6.61
TRANG SFD-NVDR TRS-R 15.18 -6.61
TT&T PCL TTNT 589.80 -223.22
TT&T PCL-NVDR TTNT-R 589.80 -223.22
TT&T PUBLIC CO-F TTNT/F 589.80 -223.22
WORLD CORP -NVDR WORLD-R 15.72 -10.10
WORLD CORP PCL WORLD 15.72 -10.10
WORLD CORP PLC-F WORLD/F 15.72 -10.10
TAIWAN
BEHAVIOR TECH CO 2341S 30.90 -0.22
BEHAVIOR TECH-EC 2341O 30.90 -0.22
HELIX TECH-EC 2479T 23.39 -24.12
HELIX TECH-EC IS 2479U 23.39 -24.12
HELIX TECHNOL-EC 2479S 23.39 -24.12
POWERCHIP SEM-EC 5346S 2,036.01 -52.74
TAIWAN KOL-E CRT 1606U 507.21 -147.14
TAIWAN KOLIN-EN 1606V 507.21 -147.14
TAIWAN KOLIN-ENT 1606W 507.21 -147.14
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel
Elaine T. Fernandez, Julie Anne L. Toledo, and Peter A. Chapman,
Editors.
Copyright 2014. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000 or Nina Novak at 202-241-8200.
*** End of Transmission ***