/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/140612.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, June 12, 2014, Vol. 17, No. 115 Headlines A U S T R A L I A FLEXI ABS 2012-1: Fitch Affirms 'BB+sf' Rating on Class E Notes GONZ CIRCUS: Deposits Kept Flowing to Collapse Catering Business RETAIL ADVENTURES: Jan Cameron Closing 50 More Stores I N D I A ACG HOSPITALITY: ICRA Upgrades Rating on INR13cr Loan to 'B-' AMBER DISTILLERIES: CRISIL Reaffirms 'B' Rating on INR80MM Loans ARCHANA HOSPITALS: ICRA Suspends B+ Rating on INR7.8cr Loan BANSAL DIAMONDS: ICRA Suspends 'B+' Rating on INR200cr Loan BRISTOL TOURIST: CRISIL Reaffirms 'B' Rating on INR500MM Loan CALL EXPRESS: CRISIL Reaffirms 'B' Rating on INR550MM Term Loan D.V. STEEL: CRISIL Reaffirms 'D' Rating on INR73MM Loans JANPATH ESTATES: ICRA Withdraws 'B' Rating on INR14.5cr Loan JC BIOTECH: CARE Revises Rating on INR19.44cr Loan to 'B+' K S R GRANITE: CRISIL Reaffirms 'B-' Rating on INR290MM Loans KASAVU KADA: CRISIL Reaffirms 'B' Rating on INR80MM Loans KRISHAN KUMAR: CRISIL Assigns 'B+' Rating to INR200MM Loan LAKSHAY ORNAMENTS: CRISIL Assigns 'B+' Rating to INR85MM Loan MAHALUXMI COTTON: ICRA Reaffirms 'B+' Rating on INR6cr Loan MAHAVIR GLASS: ICRA Suspends 'B+' Rating on INR6.34cr Loan MB SYSTEMS: ICRA Reaffirms 'B+' Rating on INR15cr Cash Credit MID INDIA: CRISIL Assigns 'B+' Rating to INR200MM Loans POONAM POLYMERS: ICRA Suspends 'B' Rating on INR6cr Loan SAPALA ORGANICS: CRISIL Reaffirms 'B+' Rating on INR52MM Loans SHREE CERAMIC: CRISIL Reaffirms 'B' Rating on INR85MM Loans SONA CHANDI: CRISIL Raises Rating on INR447.9MM Loan to 'B' SPM MARBLES: CARE Reaffirms 'B+' Rating on INR7cr Bank Loan SREE LALITHA: ICRA Suspend 'B' Rating on INR47.5cr Loans SRI BALMUKUND: CRISIL Cuts Rating on INR149.5MM Loans to 'B+' SUNNY STAR: CRISIL Assigns 'B' Rating to INR149.8MM Term Loan SUPER AGRO: ICRA Reaffirms 'B+' Rating on INR8cr Loan THAKAR DASS: ICRA Reaffirms 'B+' Rating on INR13cr Loans UDAYANATH EDUCATIONAL: ICRA Suspends 'D' Rating on INR6.48cr Loan UNION ENTERPRISES: ICRA Cuts Rating on INR20.18cr Loans to C VERSATILE ALUCAST: ICRA Assigns 'D' Rating to INR11.10cr Loans J A P A N * JAPAN: Corporate Bankruptcies Down 20.2% in May N E W Z E A L A N D CENTURY CITY: Receivers Put IBM House Up for Sale GEOOP LIMITED: Annual Loss Widens to NZ$4.6MM ROSS ASSET: David Ross Appeals Fraud Sentence to Victim Outrage - - - - - ================= A U S T R A L I A ================= FLEXI ABS 2012-1: Fitch Affirms 'BB+sf' Rating on Class E Notes --------------------------------------------------------------- Fitch Ratings has upgraded two classes of Flexi ABS Trust 2013-2 and affirmed a total of thirteen from Flexi ABS Trust 2012-1, Flexi ABS Trust 2013-1 and Flexi ABS Trust 2013-2, as shown at the end of this commentary. Flexi ABS Trust 2012-1 and Flexi ABS Trust 2013-2 are securitisations backed by small balance consumer loan receivables. Flexi ABS Trust 2013-1 is backed by unsecured commercial lease receivables. The notes were issued by Perpetual Corporate Trust Limited in its capacity as trustee of the three transactions. KEY RATING DRIVERS Both the class B and C notes from Flexi ABS Trust 2013-2 have been upgraded by one notch as the transaction is performing better than Fitch's expectations. The remaining classes have been affirmed as the transactions have performed within Fitch's initial expectations since closing. Total net losses have been well below Fitch's base cases to date and excess spread has been more than sufficient to cover any losses incurred. Flexi ABS Trust 2012-1: At 30 April 2014, the 30+days and 90+ day delinquency rates were 2.8% and 0.5% of the collateral pool, respectively. Cumulative losses since closing have been low, totalling AUD3.6 million, below Fitch's expected losses of AUD5.6 million. Flexi ABS Trust 2013-1: At 30 April 2014, the 30+days and 90+ day delinquency rates were 9.9% and 0.8% of the collateral pool, respectively. The high level of 30+days arrears is due to a technical readjustment of payments. This is expected to be reversed in the coming months. Cumulative losses since closing have been low, totalling AUD2.3 million, below Fitch's expected losses of AUD4.1m. Flexi ABS Trust 2013-2: At April 30, 2014, the 30+days and 90+ day delinquency rates were 2.0% and 0.3% of the collateral pool, respectively. Cumulative losses since closing have been low, totalling AUD1.7 million, below Fitch's expected losses of AUD3.1 million. RATING SENSITIVITIES The prospect for downgrades is considered remote, given the current performance of the pools, as well as adequate excess spread and subordination. The loans in the collateral pools are vulnerable to a drastic downturn in the Australian economy. The prospect for upgrades is remote, but may be considered if the transactions perform significantly better than expected. The rating actions are listed below: Flexi ABS Trust 2012-1 AUD21.1m Class A2 notes (ISIN AU3FN0016218): affirmed at 'AAAsf'; Outlook Stable AUD6.1m Class B notes (ISIN AU3FN0016226): affirmed at 'AAAsf'; Outlook Stable AUD2.5m Class C notes (ISIN AU3FN0016234): affirmed at 'AAsf'; Outlook Stable AUD1.4m Class D notes (ISIN AU3FN0016242): affirmed at 'BBB+sf'; Outlook Stable AUD1.1m Class E notes (ISIN AU3FN0016259): affirmed at 'BB+sf'; Outlook Stable Flexi ABS Trust 2013-1 AUD85.9m Class A notes (ISIN AU3FN0019444): affirmed at 'AAAsf'; Outlook Stable AUD9.1m Class B notes (ISIN AU3FN0019451): affirmed at 'AAsf'; Outlook Stable AUD13.2m Class C notes (ISIN AU3FN0019469): affirmed at 'Asf'; Outlook Stable AUD6.6m Class D notes (ISIN AU3FN0019477): affirmed at 'BBBsf'; Outlook Stable AUD5.0m Class E notes (ISIN AU3FN0019485): affirmed at 'BBsf'; Outlook Stable Flexi ABS Trust 2013-2 AUD95.6m Class A2 notes (ISIN AU3FN0020129): affirmed at 'AAAsf'; Outlook Stable AUD20.7m Class B notes (ISIN AU3FN0020137): upgraded to 'AA+sf' from 'AAsf'; Outlook Stable AUD9.2m Class C notes (ISIN AU3FN0020145): upgraded to 'A+sf' from 'Asf'; Outlook Stable AUD6.9m Class D notes (ISIN AU3FN0020160): affirmed at 'BBBsf'; Outlook Stable AUD4.6m Class E notes (ISIN AU3FN0020228): affirmed at 'BBsf'; Outlook Stable Class A1 notes were paid in full in February 2014. A comparison of the transactions' representations, warranties and enforcement mechanisms (RW&Es) to those of typical RW&Es for this asset class is available by accessing the reports and/or links given under Related Research below. GONZ CIRCUS: Deposits Kept Flowing to Collapse Catering Business ---------------------------------------------------------------- Merryn Porter at The St George & Sutherland Shire Leader reports that couples continued to pay large deposits to Belinda Franks Catering for their weddings even after Gonz Circus Group Pty Ltd was placed in the hands of external administrators. The Leader relates that the NSW National Parks and Wildlife Service has confirmed it leased The Audley Room and The Weir Cafe at Audley to Audley Weir Pty Ltd, which is under administration. Belinda Franks Catering and Toast Food were part of the Toast Group stable, according to its website, the report relays. According to The Leader, Australian Securities and Investments Commission (ASIC) records show Paul Lockrey is director of Audley Weir Pty Ltd and Gonz Circus Group Pty Ltd which is under administration. The Leader says Mr. Lockrey also owns numerous other companies and businesses, including another which is in the process of being liquidated, Toast Food Pty Ltd. The report relates that ASIC advertised an insolvency notice on August 20, 2013, stating it would deregister Gonz Circus Group Limited two months from that date, after the company was placed under external administration. An insolvency alert advising that the company would be wound up was published January 7, 2014, the report discloses. Toast Food Pty Ltd was placed under external administration last year. An application for the winding up of Toast Food Pty Ltd was started by Workers Compensation Nominal Insurer on January 17, 2013, The Leader notes. Meanwhile, The Leader reports, the liquidator acting for Gonz Circus Group Pty Ltd has urged couples who paid thousands of dollars for their weddings to contact the corporate regulator, ASIC, and NSW Fair Trading. The Leader relates that Stephen Hathway -- stephen.hathway@svp.com.au -- of insolvency firm SV Partners is liquidating Gonz Circus Group Pty Ltd, trading as Belinda Franks Catering. Mr. Hathway confirmed there would be no money left to pay unsecured creditors, the report relates. According to the report, Mr. Hathway said his firm was appointed liquidator in February after the company was wound up by the Federal Court following an application by the Australian Taxation Office. The Leader relates that Mr. Hathway said his firm had no option but to lock the doors of Belinda Franks Catering in Alexandria in April to stop possible clients from paying. The report adds Mr. Hathway said he had interviewed Mr. Lockrey about his business dealings and would be preparing a report for ASIC. But he said neither ASIC nor NSW Fair Trading had the funds to investigate cases unless there were sufficient complaints, hence his urging for those affected to go to authorities, The Leader reports. "If there are enough people complaining about a particular person [then they might act]," the report quotes Mr. Hathway as saying. An ASIC spokeswoman said she was unable to comment on specific cases, but confirmed that ASIC could prevent someone from managing corporations, The Leader adds. RETAIL ADVENTURES: Jan Cameron Closing 50 More Stores ----------------------------------------------------- Colin Kruger at the Sydney Morning Herald reports that Kathmandu founder Jan Cameron is closing another 50 stores this month from her struggling discount retail chain, Retail Adventures, as she prepares to sell the business she bought back from administrators just last year. SMH relates that closing down sales have commenced at Sam's Warehouse and Crazy Clark's outlets across Australia and company insiders have confirmed 50 stores across the group are expected to close. Documents seen by Fairfax Media indicate that Ms. Cameron is negotiating a third party investment in the business, or, outright sale, the report says. A spokesman for Ms. Cameron did not return calls, the report notes. According to the report, the store closures, which could involve breaking leases signed barely six months ago, are expected to facilitate a sale of the business by its current owner -- Ms. Cameron's DSG. Late last month, the report recalls, the manager of Warrnambool's Bayside City Plaza, David Turner, said he had not been officially notified of the plans to close the local Sam's Warehouse store. SMH relates that Mr. Turner said DSG has four years remaining on the lease for the 2400-square-metre store. "It's a legally binding contract, you can't just make decisions to pull out," the report quotes Mr. Turner as saying. "They have four years to run and we expect them to honour those commitments." SMH says Ms. Cameron, who made her fortune with the sale of adventurewear group Kathmandu, has been dealing with other retail calamities. Her fortunes took another hit last week with the collapse of New Zealand retailer Postie Plus, SMH relates. She was the largest shareholder in the 104-year-old clothing chain, which went into administration on June 3. She had a 19 per cent holding in the company. According to SMH, Retail Adventures has proven to be a millstone for Ms Cameron since she first brought the failed business from administrators in 2009 for AUD70 million. SMH says the 350 store chain cost her another AUD80 million in funding before the significant losses, and uneconomic structure, forced her to appoint administrators in 2012. Around 700 employees lost their jobs and unsecured creditors were owed AUD165 million. A controversial deal lead to Ms. Cameron's DSG Group operating the business on behalf of the administrators at that time, the report recalls. She then acquired the restructured business, numbering 200 stores, back from the administrators using AUD59 million worth of secured loans she had previously made to Retail Adventures, relates SMH. Liquidators appointed earlier this year to the old Retail Adventures group are targeting Ms. Cameron entities for up to AUD100 million in claims over the group's collapse in 2012, the report says. The liquidators have said their investigations have revealed "compelling evidence the company traded while insolvent," the report adds. About Retail Adventures Retail Adventures Pty Ltd is an Australia-based discount variety retailer and operates nationally under brand names Chickenfeed, Go-Lo, Crazy Clark's, and Sam's Warehouse. The company operates around 270 stores across the four brands. Deloitte Restructuring Services Partners Vaughan Strawbridge, David Lombe and John Greig were appointed Joint Voluntary Administrators of Retail Adventures Pty Limited, effective Oct. 26, 2012. Ms. Cameron, the sole shareholder and only secured creditor, bought back 210 Sam's Warehouse and Crazy Clarks stores and two distribution centres for AUD59 million from the administrators, Deloitte, in February 2013. ========= I N D I A ========= ACG HOSPITALITY: ICRA Upgrades Rating on INR13cr Loan to 'B-' ------------------------------------------------------------- ICRA has upgraded the long term rating for the INR13.00 crore bank facilities of ACG Hospitality Private Limited to [ICRA]B- from [ICRA]D. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loans 13.00 Upgraded to [ICRA]B- from [ICRA]D The rating revision takes into account regularization of debt servicing by AHPL during the last three months as per details provided by management. It also takes into view the absence of any repayment obligations till September 2014. The assigned rating takes in account the more than three decades of experience of promoters in the hospitality industry. Further, the hotel is able to attract both tourists as well as business executive on account of the proximity of tourist attractions and commercial areas as well. Additionally, ICRA also noted that the hotel's restaurant has developed a local patronage which is a source of stable cash inflows every month. Further, the hotel has tied up with various companies for repeat hiring of rooms, which is expected to generate repeat cash inflows in the future. The ratings, however, are constrained by the weak financial profile of the company reflected by continued net losses and weak net worth of the company. Further, ICRA views that the room tariffs and occupancy levels of the hotel will remain under pressure on account of the high competition in the three star hotel market of Delhi. Going forward, the company's ability to improve it room rent and occupancy to boost its profit in future remains the key rating sensitivity. ACG Hospitality Private Limited was incorporated in 2007 to construct and operate a hotel in Hari Nagar, Delhi. The only property of the company, a three star hotel, was launched in late 2010 under the name of 'Signature Grand'. The hotel has a total of 36 rooms, two banquet halls, a conference hall and a bar (Glassi- Junction). Additionally, the hotel also has a restaurant and is being managed under the well known brand name - 'Park Balluchi'. The main promoter of the hotel is Gujral Tours & Travels, a tour operator and a member of IATA and TAAI since 1994. The other promoters include Adarsh Fruit, Universal Products and Jagtaran Developers and Hospitality. The managing director of Gujral Tours & Travels, Mr. Gurdeep Singh Gujral, is also the managing director of AHPL. AMBER DISTILLERIES: CRISIL Reaffirms 'B' Rating on INR80MM Loans ---------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Amber Distilleries Ltd continues to reflect ADL's below-average financial risk profile, marked by a small net worth and weak debt protection metrics, and its working-capital-intensive operations, resulting in stretched liquidity. These rating weaknesses are partially offset by the extensive experience of the company's promoters in the alcohol industry, its established customer relationships, and its increasing scale of operations backed by higher exports. Amount Facilities (INR Mln) Ratings ---------- -------- ------- Cash Credit 50 CRISIL B/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 23.5 CRISIL B/Stable (Reaffirmed) Term Loan 6.5 CRISIL B/Stable (Reaffirmed) Outlook: Stable CRISIL believes that ADL will continue to benefit over the medium term from its promoters' extensive industry experience and its established customer relationships. The outlook may be revised to 'Positive' if ADL registers a higher-than-expected growth in revenue, while substantially improving its profitability, leading to an improved financial risk profile. Conversely, the outlook may be revised to 'Negative' if the company's profitability declines, resulting in lower-than-expected cash accruals, thereby weakening its financial risk profile, or a substantial stretch in working capital cycle. Update For 2013-14 (refers to financial year, April 1 to March 31), ADL recorded net revenue of about INR150.4 million as against INR94.0 million for the previous year. The company is expected to achieve further revenue growth backed by its increasing exports to African and European countries. Its operating margin, however, declined to 7.2 per cent in 2013-14 from 12.8 per cent in 2012-13. CRISIL believes that ADL's operating margin will improve over the near term as a result of the increased share of exports in its total sales and the upgrading of its facilities to fully automatic lines from semi-automatic lines. ADL's financial risk profile continues to be weak, marked by an average gearing and weak debt protection metrics. ADL had a moderate gearing of 1.85 times as on March 31, 2014, while its interest coverage and net cash accruals to total debt ratios were 1.54 times and 6 per cent, respectively, for 2013-14. ADL's liquidity was stretched, marked by extensive bank limit utilisation and low cash accruals. The company had net cash accruals of INR3.2 million, which was just sufficient to meet its term debt obligations, in 2013-14; it is expected to generate low net cash accruals over the medium term as well. Furthermore, ADL's bank limits were utilised at an average of 96 per cent through 2013-14. Its unencumbered cash balance was low at INR5.0 million, as was its current ratio at 1.15 times, as on March 31, 2014. ADL was established in 1985 by Kesar Enterprises Ltd, and was later taken over by Mr. Pratap Talwar and his family members in 2006. The company manufactures Indian-made foreign liquor (IMFL) under its own brands and sells it in the domestic and international markets. It has a distillery unit near Thane (Maharashtra). ARCHANA HOSPITALS: ICRA Suspends B+ Rating on INR7.8cr Loan ----------------------------------------------------------- ICRA has suspended the rating of '[ICRA]B+' assigned to the INR7.80 crore fund based limits of Archana Hospitals Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. BANSAL DIAMONDS: ICRA Suspends 'B+' Rating on INR200cr Loan ----------------------------------------------------------- ICRA has suspended the [ICRA]B+ rating assigned to the INR200 crore fund based facility of Bansal Diamonds Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limit 200.0 [ICRA]B+; Suspended Based in Delhi, Bansal Diamonds Private Limited was incorporated in 2007. Mr. Surender Bansal and his wife Mrs. Shefali Bansal serve as the directors of the company. The company took over the assets and liabilities of M/s Bansal Diamonds, a proprietorship concern of Mr. Surender Bansal. The promoters have been involved in the field of gold and diamond business for more than two decades. The company is engaged in wholesale trading of gold and diamond jewellery. The company operates out of a single showroom in Karol Bagh. BDPL serves as a distributor for well known and reputed jewellery manufacturers like Emerald Jewels India Ltd, Derewala Jewellery Industires Ltd, etc. Recent Results For FY12, the company reported operating income of INR872 crore and net profit of INR7.39 crore. As per provisional results for FY13, the company reported operating income of INR1051.2 crore and net profit of INR6.2 crore. BRISTOL TOURIST: CRISIL Reaffirms 'B' Rating on INR500MM Loan ------------------------------------------------------------- CRISIL's rating on the long-term facilities of Bristol Tourist Complex continues to reflect BTC's susceptibility to project demand risk, and its weak financial risk profile due to large debt-funded capital expenditure (capex) programme that adversely impacts its liquidity. These rating weaknesses are partially offset by the extensive industry experience of BTC's partners and the funding support that they extend to the firm. Amount Facilities (INR Mln) Ratings ---------- -------- ------- Term Loan 500 CRISIL B/Stable (Reaffirmed) Outlook: Stable CRISIL believes that BTC will continue to benefit over the medium term from the extensive industry experience of its partners in the hospitality industry. The outlook may be revised to 'Positive' if the firm generates more-than-expected cash accruals during the initial phase of operations. Conversely, the outlook may be revised to 'Negative' in case of lower-than-anticipated ramp-up in the hotel's operations, resulting in weak cash accruals. Update BTC undertook the construction of a 5-star hotel in Zirakpur, a satellite town of Chandigarh, and completed the same by September 2013. Park Plaza is the operations and maintenance partner for the hotel. The repayment for the term loan contracted for the hotel has started in December 2013; and though the company is making the repayment in a timely manner, the cash accruals are tightly matched against the debt repayment. CRISIL believes BTC's cash accruals will remain tightly matched against the debt obligations due to nascent stage of operations, constraining its liquidity. In 2012-13 (refers to financial year, April 1 to March 31), BTC reported net sales of INR1.7 million. CRISIL believes that though BTC's sales will increase due to newly constructed hotel, it will remain low due to nascent stage of operations. The firm had a moderate gearing of 2 times as on March 31, 2013; however, CRISIL believes that the gearing will increase over the medium term because of the large quantum of debt contracted to fund the hotel project. Also, BTC's debt protection metrics are expected to remain weak due to high debt levels and low operating profit during the initial stage of operations. Established by Mr. Gurpreet Singh and his mother, Mrs. Sharanjit Kaur, BTC is operating a five-star hotel in Zirakpur, a satellite town in Chandigarh. The partners have been in the hospitality industry for about 15 years. The firm has tied up with Park Plaza to manage the hotel's day-to-day operations. CALL EXPRESS: CRISIL Reaffirms 'B' Rating on INR550MM Term Loan --------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Call Express Construction (India) Pvt Ltd continues to reflect the funding and implementation-related risks associated with its ongoing real estate residential project in Chennai (Tamil Nadu) and vulnerability to economic cycles. These rating weaknesses are partially offset by the industry experience of CECPL's promoters. Amount Facilities (INR Mln) Ratings ---------- -------- ------- Proposed Term Loan 550 CRISIL B/Stable (Reaffirmed) Outlook: Stable CRISIL believes that CECPL will continue to benefit over the medium term from its promoters' experience in real estate development in Chennai. The outlook may be revised to 'Positive' if the company reports strong growth in cash flows, most likely because of earlier-than-expected completion of projects and receipt of advances, and more-than-expected sales realisations from the ongoing residential properties. Conversely, the outlook may be revised to 'Negative' if there are significant delays in the completion of the ongoing projects or receipt of payments from customers, or if the company undertakes a larger-than-expected debt-funded capital expenditure programme leading to deterioration in its financial risk profile. Set up in 2006, CECPL is currently developing a residential real estate project at Chennai. The company is promoted by Mr. Ramesh and Mr. Ravindranathan. D.V. STEEL: CRISIL Reaffirms 'D' Rating on INR73MM Loans -------------------------------------------------------- CRISIL's ratings on the bank facilities of D.V. Steel Industries Pvt Ltd continue to reflect instances of delays in servicing debt because of weak liquidity. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 23 CRISIL D (Reaffirmed) Cash Credit 50 CRISIL D (Reaffirmed) DV also has a below-average financial risk profile, with a small net worth and weak debt protection metrics, and a small scale of operations in a fragmented industry. However, the company benefits from the extensive industry experience of its promoters. Update: DV continues to delay servicing its debt, because of weak liquidity, driven by its working-capital-intensive operations, which have also resulted in its bank limit utilisation at over 100 per cent on average in the recent past. The company's small scale of operations and its consequently limited bargaining power led to large receivables of over four months. Slow off-take by customers and delays in order execution resulted in a large inventory pile- up, adding to DV's significant funding requirements. Weak liquidity also constrains the company's ability to undertake new orders exacerbating the stress on DV's cash flows. CRISIL believes that DV's liquidity will remain weak over the medium term, because of its working-capital-intensive operations. DV was set up as a partnership firm in 1989 at Raurkela (Odisha) and was reconstituted as a private limited company in 1994. The company derives its revenue from four businesses: steel processing, equipment manufacturing, fabrication of steel products, and contracting for civil, mechanical, and electrical works. DV is promoted by the Jain family, which has over 75 years of experience in the steel industry. Currently, the fourth generation oversees the steel business, with brothers, Mr. Rakesh Chand Jain and Mr. Dinesh Chand Jain, serving as its directors. JANPATH ESTATES: ICRA Withdraws 'B' Rating on INR14.5cr Loan ------------------------------------------------------------ ICRA has withdrawn the [ICRA]B rating assigned to the INR14.5 crore bank facilities of Janpath Estates Private Limited, as there is no amount outstanding against the rated instrument. JC BIOTECH: CARE Revises Rating on INR19.44cr Loan to 'B+' ---------------------------------------------------------- CARE revises/reaffirms the ratings assigned to the bank facilities of JC Biotech Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 19.44 CARE B+ Revised from CARE B- Short-term Bank Facilities 1.60 CARE A4 Reaffirmed Rating Rationale The revision in the rating takes into consideration improvement in financial performance of the company during FY14 (provisional, refers to the period April 1 to March 31) with healthy growth in revenue, infusion of funds by the promoters, improvement in the overall gearing and realisation of long outstanding receivables. The ratings also factor in the strong promoter group with established track record in the specialty chemicals industry and recognized research and development facilities. However, the ratings are constrained by the relatively small scale of operations, limited track record, high client and revenue concentration with dependence on Serratiopeptidase, the product in anti-inflammatory segment and absence of any long-term agreements with customers. The ability of the company to effectively scale up the operations, enter into long-term agreements to improve revenue visibility, diversify product & client portfolio and raise required resources in a timely manner to support growth are the key rating sensitivities. Incorporated in 2004, JBPL is promoted by Mr S Chandrasekhar under the guidance of the late Mr S Koteswara Rao, the founder of Bhagiradha Chemicals and Industries Ltd, Hyderabad. JBPL is primarily engaged in the manufacturing of biochemicals and bio- pharmaceutical products at its manufacturing unit located in Andhra Pradesh Industrial Infrastructure Corporation growth centre near Ongole. The main products of the company are "Serratiopeptidase" in anti-inflammatory segment, "B0 Pneumocandin" in the anti-fungal segment and Docosahexaenoic acid, an omega-3 fatty acid which is a primary structural component of the human body. During FY14 (provisional), JBPL reported a profit after tax of INR0.38 crore (FY13: INR0.12 crore) on a total income of INR24.08 crore (FY13: INR17.17 crore). K S R GRANITE: CRISIL Reaffirms 'B-' Rating on INR290MM Loans -------------------------------------------------------------- CRISIL's rating on the long term bank facilities of K S R Granite Private Limited continues to reflect its exposure to implementation-related risks associated with its ongoing project. These rating weaknesses are partially offset by the extensive experience of KSR's promoter in the granite industry. Amount Facilities (INR Mln) Ratings ---------- -------- ------- Cash Credit 140 CRISIL B-/Stable (Reaffirmed) Long Term Loan 125 CRISIL B-/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 25 CRISIL B-/Stable (Reaffirmed) Outlook: Stable CRISIL believes that KSR will continue to benefit over the medium term from its promoter's extensive experience in the granite industry. The outlook may be revised to 'Positive' if the company records more-than-expected revenues and profitability, resulting in improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if KSR faces significant cost or time overrun in its project, or if it records lower-than- expected cash accruals, resulting in deterioration in its financial risk profile. KSR, incorporated in 1995, operates quarries and supplies rough granite blocks. The company is promoted by Mr. Subba Reddy, who has been in the granite processing industry for more than two decades. KASAVU KADA: CRISIL Reaffirms 'B' Rating on INR80MM Loans --------------------------------------------------------- CRISIL has reaffirmed its 'CRISIL B/Stable' rating to the long term bank facilities of Kasavu Kada. Amount Facilities (INR Mln) Ratings ---------- -------- ------- Cash Credit 66 CRISIL B/Stable (Reaffirmed) Long Term Loan 14 CRISIL B/Stable (Reaffirmed) The rating continues to reflect KK's modest scale of operations in the intensely competitive apparel retail industry and its below- average financial risk profile, marked by a highly leveraged capital structure and weak debt protection metrics. These rating weaknesses are partially offset by the extensive industry experience of its promoters. Outlook: Stable CRISIL believes that KK will continue to benefit over the medium term from its extensive industry experience of its promoters. The outlook may be revised to 'Positive' if KK significantly increases its scale of operations and operating margin, resulting in improvement in its cash accruals and debt protection metrics, or in case of substantial equity infusion. Conversely, the outlook may be revised to 'Negative' if KK's financial risk profile, particularly its liquidity, deteriorates, most likely because of larger-than-expected working capital requirements, lower-than- anticipated cash accruals, or substantial debt-funded capital expenditure. Set up in 1993, KK is a sole proprietorship firm manufacturing traditional Kerala handloom textiles and selling them through its own showrooms. Its daily operations are managed by Mr. Suseelan. KK reported a profit after tax (PAT) of INR2.1 million on net sales of INR489.7 million for 2012-13 (refers to financial year, April 1 to March 31), as against a PAT of INR1.5 million on net sales of INR485.6 million for 2011-12. KRISHAN KUMAR: CRISIL Assigns 'B+' Rating to INR200MM Loan ---------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facilities of Krishan Kumar & Co. - Kaithal. Amount Facilities (INR Mln) Ratings ---------- -------- ------- Cash Credit 200 CRISIL B+/Stable The rating reflects KKC's modest scale of operations in the highly fragmented basmati rice industry and its below-average financial risk profile marked by modest net worth, high gearing, and weak debt protection metrics. These rating weaknesses are partially offset by the extensive experience of KKC's proprietor in the basmati rice industry. Outlook: Stable CRISIL believes that KKC will continue to benefit over the medium term from its proprietor's extensive industry experience. The outlook may be revised to 'Positive' in case of significantly higher-than-expected cash accruals or substantial capital infusion, along with efficient working capital management. Conversely, the outlook may be revised to 'Negative' in case of lower-than-expected cash accruals, large working capital requirements, or any large debt-funded capital expenditure, exerting further pressure on the firm's liquidity. Established in 2013 and based in Kaithal (Haryana), KKC is a proprietorship firm owned and managed by Mr. Krishan Miglani. The firm processes basmati rice, primarily for the export market. It commenced operations in March 2014. LAKSHAY ORNAMENTS: CRISIL Assigns 'B+' Rating to INR85MM Loan ------------------------------------------------------------- CRISIL has revoked the suspension of its rating on the bank facilities of Lakshay Ornaments Pvt Ltd, and has assigned its 'CRISIL B+/Stable' rating to the company's long-term bank facilities. CRISIL had, on December 11, 2013, suspended the rating as LOPL had not provided the necessary information required for a rating review. The company has now shared the requisite information, enabling CRISIL to assign a rating to its bank facilities. Amount Facilities (INR Mln) Ratings ---------- -------- ------- Cash Credit 85 CRISIL B+/Stable (Assigned; Suspension Revoked) The rating reflects geographical concentration in LOPL's revenue profile, the company's exposure to intense competition, its weak financial risk profile and its large working capital requirements. These rating weaknesses are partially offset by the extensive experience of LOPL's promoters in the jewellery industry and its moderate liquidity driven by nil long-term debt obligations. Outlook: Stable CRISIL believes that LOPL will continue to benefit over the medium term from its promoters' extensive experience in the jewellery business. The outlook may be revised to 'Positive' in case of improvement in the company's profitability margins along with sustained revenue growth, or substantial improvement in its capital structure on account of equity infusion by the promoters. Conversely, the outlook may be revised to 'Negative' if the company's financial risk profile deteriorates either on account of low profitability or large working capital requirements. LOPL was set up in 2005 by Mr. Ashwini Singla as Harison Impex for exporting diamond and gold jewellery, and was reconstituted as a private limited company with the current name. LOPL gets diamond and gold jewellery manufactured on jobwork basis and sells to showrooms and jewellers in and around Delhi. LOPL's profit after tax (PAT) and net sales are estimated at INR1.8 million and INR873 million, respectively, for 2013-14 (refers to financial year, April 1 to March 31); the company reported a PAT of INR1.2 million on net sales of INR600 million for 2012-13. MAHALUXMI COTTON: ICRA Reaffirms 'B+' Rating on INR6cr Loan ----------------------------------------------------------- ICRA has reaffirmed '[ICRA]B+' rating for INR6 crore fund based limits (including INR0.25 crore unallocated limits) of Mahaluxmi Cotton and General Mills. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based Limits 6.00 [ICRA]B+ Reaffirmed ICRA has taken a consolidated view on the three group firms (Thakar Dass Nand Gopal, Mahaluxmi Cotton and General Mills, and Super Agro Industry) which have similar operational profile. The rating continues to be constrained by low value addition in the business which, coupled with high competitive intensity owing to presence of several unorganized players in the market, results in poor profitability and weak debt protection indicators. The rating also factors in the high working capital requirement during the cotton procurement season which impacts its liquidity position and TDNG's vulnerability towards changes in Government regulations and fluctuations in cotton prices which causes volatility in its accruals. The rating, however, continues to derive comfort from long experience of the promoters in cotton industry, its established relationship with clients, and proximity of the firm to the cotton producing belt (Gujarat). While assigning the rating, ICRA has also taken note of the risks inherent in a partnership firm, such as limited ability to raise equity capital, risk of dissolution due to death/retirement/insolvency of partners etc. Going forward, firm's ability to improve its profitability will be the key rating sensitive factor. Mahaluxmi Cotton and General Mills is part of Sirsa (Haryana) based Thakar Dass Group promoted by late Shri Nand Gopalji Gupta, and is engaged in the business of cotton ginning. The promoters have been into this business since 1956. The group has four cotton ginning units and one trading unit. Under MCGM, the group has one ginning and pressing mill in Jind (Haryana). The flagship firm of the group, Thakar Dass Nand Gopal, has three operating units: trading unit in Fatehabad (Haryana), and Ginning and pressing units each in Sanosara(Gujarat) and Kothara(Gujarat). The other entity of the group, Super Agro Industry, has a ginning and pressing unit in Sirsa (Haryana). In FY13, MCGM reported a profit before tax (PBT) of INR0.15 crore (previous year INR0.11 crore) on an operating income of INR52.63 crore (previous year INR38.31 crore). MAHAVIR GLASS: ICRA Suspends 'B+' Rating on INR6.34cr Loan ---------------------------------------------------------- ICRA has suspended [ICRA]B+ rating assigned to the INR6.34 crore long term loans & working capital facilities of Mahavir Glass 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 2008, Mahavir Glass Enterprise is a partnership firm engaged in processing of float glass to produce tempered and insulated glasses, and trading of laminated glass. The firm is owned and managed by Mr. Rajesh Shah and Mr. Sandip Shah along with other family members. The promoters have been in the glass industry since 1940 through other group concerns 'Indian Picture House' and 'Mahavir Creation'. MGE's manufacturing facility is located at Kheda (Gujarat) with current installed capacity of 1.27 lac sq. mtrs. per annum. MB SYSTEMS: ICRA Reaffirms 'B+' Rating on INR15cr Cash Credit ------------------------------------------------------------- ICRA has reaffirmed the long term rating of '[ICRA]B+' to the cash credit limits of MB Systems aggregating to INR15.00 crore. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-Term Cash 15.00 [ICRA]B+ reaffirmed Credit facility The reaffirmation of rating takes into account the weak financial profile of the firm characterised by low profitability levels, weak debt protection metrics and stretched liquidity position. The rating is further constrained by the low visibility on rental income from the firm-owned premises, following the termination of the existing contract with the lessee, and vulnerability of the firm's profitability to adverse fluctuations in prices of greige fabric and cyclicality inherent in the textile industry. ICRA further notes that MBS being a partnership concern, the amount of withdrawals from the capital account by the partners would adversely affect the capital structure of the firm and hence remains a key rating sensitivity. The rating, however, continues to draw comfort from the established experience of the firm's management in the textile industry through the group entities engaged in various activities across the textile value chain, locational advantages by virtue of its proximity to both suppliers and clients, and the healthy increase in scale of operations, post commissioning of operations in December 2011. MB Systems was established in September 2011 in Surat (Gujarat) as a partnership entity, and is promoted by Mr. Ramesh Bhadani and Mr. Jayesh Mistry, who have a 50% stake each in the firm. MBS commenced operations in December 2011, and is engaged in the trading of greige fabric. Recent Results In FY 2014, MBS reported a profit before tax (PBT) of INR0.34 crore on operating income of INR103.26 crore (provisional). In FY2013, the firm reported a PBT of INR1.04 crore on operating income of INR80.57 crore. MID INDIA: CRISIL Assigns 'B+' Rating to INR200MM Loans ------------------------------------------------------- CRISIL has revoked the suspension of its rating on the bank facilities of Mid India Enterprises Pvt Ltd (Mid India; part of the Mnm group), and has assigned its 'CRISIL B+/Stable' rating to these facilities. The rating had been suspended by CRISIL as per its rating rationale dated December 24, 2013, as Mid India had not provided the necessary information required for reviewing the ratings. Mid India has now shared the requisite information, thereby enabling CRISIL to assign ratings to the bank facilities. Amount Facilities (INR Mln) Ratings ---------- -------- ------- Cash Credit 60 CRISIL B+/Stable (Assigned; Suspension revoked) Proposed Cash 50 CRISIL B+/Stable (Assigned; Credit Limit Suspension revoked) Working Capital 40 CRISIL B+/Stable (Assigned; Facility Suspension revoked) Proposed Working 30 CRISIL B+/Stable (Assigned; Capital Facility Suspension revoked) Proposed Long Term 20 CRISIL B+/Stable (Assigned; Bank Loan Facility Suspension revoked) These rating reflects the Mnm group's large working capital requirements leading to its below average financial risk profile, high geographical concentration, and exposure to competition in the apparel retailing space. These rating weaknesses partially offset by Mnm group's promoters' extensive experience in the business of retailing of apparel and other consumer discretionary goods and its established regional market position. For arriving at its rating, CRISIL has combined the business and financial risk profiles of Mnm Marketing Pvt Ltd and Mid India. The entities are together referred to as the Mnm group. This is because the two entities are in similar lines of business, have a common management with centrally managed operations and have significant financial linkages with each other. Outlook: Stable CRISIL believes that the Mnm group will maintain its established regional market position in the apparel and accessories retailing space. The outlook may be revised to 'Positive' if the group improves its capital structure significantly and diversifies into other geographical regions, while maintaining its scale of operations, profitability and financial risk profile. Conversely, the outlook may be revised to 'Negative' if the group undertakes larger-than-expected debt-funded capital expenditure (capex) programme towards setting up new stores or if its working capital requirements increase significantly, leading to weakening in its financial risk profile. The Mnm group is based in Vijayawada (Andhra Pradesh [AP]). Mid India is into organised retailing of readymade garments (RMGs), saris and accessories. It operates its stores under the M&M brand and is being promoted by Mr Harikishan.A. POONAM POLYMERS: ICRA Suspends 'B' Rating on INR6cr Loan -------------------------------------------------------- ICRA has suspended [ICRA]B rating assigned to the INR6.00 crore long term working capital facilities and the [ICRA]A4 rating assigned to the INR1.6 crore short term, non fund based bank facilities of Poonam Polymers Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. SAPALA ORGANICS: CRISIL Reaffirms 'B+' Rating on INR52MM Loans -------------------------------------------------------------- CRISIL's rating on the bank facilities of Sapala Organics Pvt Ltd continues to reflect SOPL's small scale of operations in the intensely competitive contract research segment, its small net- worth limiting its financial flexibility, and susceptibility of its profitability margins to fluctuations in foreign exchange rates. These rating weaknesses are partially offset by its promoters' extensive experience in the contract research business, and the company's above-average financial risk profile marked by its low gearing and robust debt protection metrics. Amount Facilities (INR Mln) Ratings ---------- -------- ------- Cash Credit 20 CRISIL B+/Stable (Reaffirmed) Long Term Loan 32 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes that SOPL will continue to benefit over the medium term from its promoters' extensive experience in the contract research industry. The outlook may be revised to 'Positive' if there is a substantial and sustained improvement in SOPL's scale of operations, while maintaining its profitability margins, or there is a substantial increase in its net-worth on the back of sizeable equity infusion from promoters. Conversely, the outlook may be revised to 'Negative' in case of a steep decline in SOPL's profitability margins, or significant deterioration in its capital structure caused most likely because of a large debt-funded capital expenditure programme or a stretch in its working capital cycle. SOPL was incorporated in 2005 by Dr. Masami Nakane and Dr. P Yella Reddy. The company is a contract research organisation specializing in custom synthesis of various organic compounds. The company is based out of Hyderabad, Andhra Pradesh. SHREE CERAMIC: CRISIL Reaffirms 'B' Rating on INR85MM Loans ----------------------------------------------------------- CRISIL's ratings on the bank facilities of Shree Ceramic Fibers Pvt Ltd continue to reflect SCFPL's small scale of operations because of its start-up phase of operations and limited capacity, its below-average financial risk profile on account of debt-funded capital expenditure (capex) for setting up facilities, and large working capital requirements. These rating weaknesses are partially offset by the benefits that SCFPL derives from its promoters' extensive experience in the insulation industry and favorable demand prospects for its products because of use in multiple end-user industries. Amount Facilities (INR Mln) Ratings ---------- -------- ------- Bank Guarantee 2.5 CRISIL A4 (Reaffirmed) Letter of Credit 12.5 CRISIL A4 (Reaffirmed) Cash Credit 10 CRISIL B/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 19.1 CRISIL B/Stable (Reaffirmed) Term Loan 55.9 CRISIL B/Stable (Reaffirmed) Outlook: Stable CRISIL believes that SCFPL will benefit from its promoters' extensive experience in the insulation industry and favourable demand prospects for its products. The outlook may be revised to 'Positive' in case of better-than-expected ramp-up in sales resulting in higher cash accruals and improvement in liquidity. Conversely, the outlook may be revised to 'Negative' in case of deterioration in the company's financial risk profile, particularly its liquidity, most likely because of lower-than- expected ramp-up in sales and cash accruals or large working capital requirements. Update On the back of steady demand from the replacement market, SCEPL's revenue increased to INR95 million in 2013-14 (refers to financial year, April 1 to March 31). However, large overheads because of large initial power requirements to stabilise the plant resulted in cash loss of INR13.8 million for the year. SCFPL reported a net loss of INR6 million on net sales of INR22.8 million for 2012-13. With stabilisation of operations, the company's profitability is expected to improve significantly over the medium term. SCFPL's financial risk profile remains below average, marked by small net worth of INR37 million and high gearing of 3.9 times as on March 31, 2014. Debt-funding of cash losses, capex, and incremental working capital requirements led to high gearing. The interest coverage and net cash accruals to total debt ratios are expected to be moderate, at 2.4 times and 0.09 times, respectively over medium term. Infusion of substantial capital by promoters for correction in capital structure will remain a key rating sensitivity factor. SCFPL's liquidity remains stretched because of low annual cash accruals of about INR15 million that are just sufficient to meet debt obligations, and high bank limit utilisation, but is supported by financial assistance from promoters. The company's bank limits of INR10 million were utilised at an average of 82 per cent over the nine months through March 2014. Infusion of INR7.2 million by the promoters in April 2014 and outstanding subsidy of INR4.5 million that is expected to be realised in 2014-15 will support the company's liquidity over the medium term. Incorporated in August 2011, SCFPL is promoted by Mr. Anadkumar Tiwari and his two sons Mr. Amit Tiwari and Mr. Anupam Tiwari. SCFPL has set up a unit in Indore (Madhya Pradesh) for manufacturing insulating materials such as ceramic fibres. The unit commenced commercial operations in January 2013. SONA CHANDI: CRISIL Raises Rating on INR447.9MM Loan to 'B' ----------------------------------------------------------- CRISIL has upgraded its rating on the long-term bank loan facilities of Sona Chandi Agro Processors to 'CRISIL B/Stable' from 'CRISIL B-/Stable', and has reaffirmed its rating on the firm's short-term bank loan facilities at 'CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- -------- ------- Cash Credit 447.9 CRISIL B/Stable (Upgraded from 'CRISIL B-/Stable') Packing Credit 2.1 CRISIL A4 (Reaffirmed) The rating upgrade reflects CRISIL's belief that SCAP's liquidity will improve over the medium term, marked by expected cash accruals of around INR15 million against nil debt obligations in 2014-15 (refers to financial year, April 1 to March 31). The improvement in cash accruals is driven by increase in capacity utilisation to 80 per cent from 65 per cent. The upgrade also reflects the SCAP management's stated posture of not taking up any capital expenditure (capex) over the next 12 to 15 months and retaining the entire profits in the business; the firm receives support from its promoters in the form of unsecured loans to fund large working capital requirements. The ratings reflect SCAP's weak financial risk profile marked by small net worth, high gearing, and weak debt protection metrics. The ratings also factor in the firm's large working capital requirements and susceptibility to volatility in raw material prices and to regulatory changes. These rating weaknesses are partially offset by the extensive experience of SCAP's promoters in the rice processing industry and the healthy growth prospects for the rice industry. Outlook: Stable CRISIL believes that SCAP will continue to benefit over the medium term from its promoters' extensive industry experience and the healthy growth prospects for the rice industry. The outlook may be revised to 'Positive' in case of significant improvement in SCAP's capital structure, most likely driven by large equity infusion or significant cash accruals. Conversely, the outlook may be revised to 'Negative' in case of significant pressure on SCAP's liquidity, most likely because of large debt-funded capex or working capital requirements. SCAP mills and processes par-boiled basmati rice (Pusa 1121 quality). It has a processing unit at Tarn Taran in Amritsar (Punjab) with milling capacity of 8 tonnes per hour. SCAP is promoted by the Arora family, which has been engaged in rice milling since 1985. SCAP commenced commercial production in October 2004. SCAP is likely to report a profit after tax (PAT) of INR12.2 million on net sales of INR1.23 billion for 2013-14, against a PAT of INR0.3 million on net sales of INR1.0 billion for 2012-13. SPM MARBLES: CARE Reaffirms 'B+' Rating on INR7cr Bank Loan ----------------------------------------------------------- CARE reaffirms rating assigned to bank facilities of SPM Marbles Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 7.00 CARE B+ Reaffirmed Rating Rational The rating continues to remain constrained on account of the modest scale of operations of SPM Marbles Private Limited in a highly competitive marble industry and its weak financial risk profile marked by thin profitability margins, high overall gearing and high working capital intensity of operations. The rating is further constrained due to linkage of marble industry to the cyclical real estate sector. The rating, however, continues to favourably factor in the wide experience of the promoters in the marble industry and location advantage due to its presence in the marble belt of India. Going forward, the company's ability to scale up its operations while improving its profitability levels as well as capital structure would be the key rating sensitivity. Kishangarh-based (Rajasthan) SMPL, incorporated in 2002, was promoted by Mr Ashish Bakliwal, Mr Sanjay Kawad and Mr Bhagwan Das Biyani along with his son, Mr Abhishek Biyani. SMPL is engaged in the business of processing of marble blocks as well as trading of finished marble slabs and tiles. The processing plant of the company is located in the marble belt of India at Kishangarh with an installed capacity to process 2.04 Lakh Square Meter Per Annuam (LSMPA) of marble slabs and tiles. Being located in marble belt in India, SMPL has easy access to raw material. The company procures marble blocks and finished marble slabs and tiles from the local market. SPML's income from trading of finished marble slabs and tiles have been in the range of 85-90% of its total operating income (TOI) in the last three fiscals ended FY14 (refers to the period April 01 to March 31). The remaining income was generated through processing and sale of marble slabs and tiles. The promoters have also promoted SPM Granites (India) Private Limited (commenced operations from September 2012) which is based at Madurai (Tamil Nadu) and is involved in the processing and sale of granite tiles. During FY14 (As per the provisional results), SMPL reported a total income of INR36.28 crore (FY13: INR33.01 crore) with a PAT of INR0.24 crore (FY13: INR0.20 crore). SREE LALITHA: ICRA Suspend 'B' Rating on INR47.5cr Loans -------------------------------------------------------- ICRA has suspended the long term rating of '[ICRA]B' assigned to the INR29.28 crore term loans, INR15.00 crore fund based facilities and the INR3.22 crore proposed long term limits of Sree Lalitha Parameswari Spinning Mills Private Limited. ICRA has also suspended the short term rating of [ICRA]A4 for the INR1.75 crore fund based facilities and INR2.76 crore non-fund based facilities of SLPS. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of requisite information from the company. SRI BALMUKUND: CRISIL Cuts Rating on INR149.5MM Loans to 'B+' ------------------------------------------------------------- CRISIL has downgraded its ratings on the bank facilities of Sri Balmukund Polypack Pvt Ltd to 'CRISIL B+/Stable/CRISIL A4' from 'CRISIL BB-/Stable/CRISIL A4+'. Amount Facilities (INR Mln) Ratings ---------- -------- ------- Bank Guarantee 5 CRISIL A4 (Downgraded from 'CRISIL A4+') Cash Credit 60 CRISIL B+/Stable (Downgraded from 'CRISIL BB-/Stable') Proposed Long Term 19.5 CRISIL B+/Stable(Downgraded Bank Loan Facility from 'CRISIL BB-/Stable') Proposed Long Term Loan 70 CRISIL B+/Stable (Downgraded from 'CRISIL BB-/Stable') The ratings downgrade reflect the deterioration in SBBPL's debt protection metrics, driven by its declining profitability margins coupled with almost stagnant revenue. The company's profitability and cash accruals were adversely affected by increasing raw material prices and its inability to pass on the same due to intense competition in the packaging industry. The ratings reflect SBBPL's small scale of operations, exposure to volatility in raw material prices, and its vulnerability to risks relating to the highly fragmented nature of the industry, restricting its pricing flexibility. These rating weaknesses are partially offset by the experience of the company's promoters in the packaging industry, and its moderate gearing. Outlook: Stable CRISIL believes that SBBPL will continue to benefit over the medium term from its promoters' industry experience and its established relationships with customers and suppliers. The outlook may be revised to 'Positive' if the company significantly scales up its operations, backed by optimum utilisation of its enhanced capacities, while it maintains its profitability and capital structure. Conversely, the outlook may be revised to 'Negative' if SBBPL undertakes a large debt-funded capital expenditure programme, faces suboptimal utilisation of its enhanced capacities, or extends substantial financial assistance to its group entities. SBBPL, incorporated in December 2007, manufactures high-density polyethylene and polypropylene fabrics and bags. Its facility at the industrial area in Tendua, Raipur (Chhattisgarh) has a capacity of 9600 tonnes per annum. It manufactures bags for cement, fertiliser, petrochemicals, leno, sugar, tea, food grain, and other commodities. SBBPL reported a profit after tax (PAT) of INR1.37 million on net sales of INR329 million for 2012-13 (refers to financial year, April 1 to March 31), against a PAT of INR2 million on net sales of INR340 million for the previous year. SUNNY STAR: CRISIL Assigns 'B' Rating to INR149.8MM Term Loan ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term bank facility of Sunny Star Hotels Pvt Ltd. The rating reflects SSHPL's start-up nature of operations in the highly fragmented and competitive hotel industry. This rating weakness is partially offset by the entrepreneurial experience of the company's promoters and their funding support. Amount Facilities (INR Mln) Ratings ---------- -------- ------- Term Loan 149.8 CRISIL B/Stable Outlook: Stable CRISIL believes that SSHPL will continue to benefit over the medium term from its promoters' funding support. The outlook may be revised to 'Positive' if there is substantial and sustained improvement in the company's scale of operations and profitability, leading to a better financial risk profile. Conversely, the outlook may be revised to 'Negative' if SSHPL undertakes a larger-than-expected debt-funded capital expenditure programme, or if its revenue and profitability decline substantially, weakening its financial risk profile. Established by Mr. Dilip Kumar and his family in 2013, SSHPL runs a hotel under the name The Panache in Patna (Bihar). SUPER AGRO: ICRA Reaffirms 'B+' Rating on INR8cr Loan ----------------------------------------------------- ICRA has reaffirmed '[ICRA]B+' rating for INR8 crore fund based limits of Super Agro Industry. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based Limits 8.00 [ICRA]B+ Reaffirmed ICRA has taken a consolidated view on the three group firms (Super Agro Industry, Thakar Dass Nand Gopal, and Mahaluxmi Cotton and General Mills) which have similar operational profile. The rating continues to be constrained by low value addition in the business which, coupled with high competitive intensity owing to presence of several unorganized players in the market, results in poor profitability and weak debt protection indicators. The rating also factors in the high working capital requirement during the cotton procurement season which impacts its liquidity position and TDNG's vulnerability towards changes in Government regulations and fluctuations in cotton prices which causes volatility in its accruals. The rating, however, continues to derive comfort from long experience of the promoters in cotton industry, its established relationship with clients, and proximity of the firm to the cotton producing belt (Gujarat). While assigning the rating, ICRA has also taken note of the risks inherent in a partnership firm, such as limited ability to raise equity capital, risk of dissolution due to death/retirement/insolvency of partners etc. Going forward, firm's ability to improve its profitability will be the key rating sensitive factor. Super Agro Industry (SAI) is part of Sirsa (Haryana) based Thakar Dass Group promoted by late Shri Nand Gopalji Gupta, and is engaged in the business of cotton ginning. The promoters have been into this business since 1956. The group has four cotton ginning units and one trading unit. Under Super Agro Industry there is a ginning and pressing unit in Sirsa (Haryana). The flagship firm of the group Thakar Dass Nand Gopal has three operating units: trading unit in Fatehabad (Haryana), and Ginning and pressing units each in Sanosara(Gujarat) and Kothara(Gujarat). The other entity of the group, Mahaluxmi Cotton & General Mills has a ginning and pressing unit in Jind (Haryana). In FY13, SAI reported profit before tax (PBT) of INR0.29 crore (previous year INR0.15 crore) on an operating income of INR55.15 crore (previous year INR42.4 crore). THAKAR DASS: ICRA Reaffirms 'B+' Rating on INR13cr Loans -------------------------------------------------------- ICRA has reaffirmed [ICRA]B+ rating for INR2.10 crore term loans and INR10.90 crore fund based limits (including INR0.30 crore unallocated limits) of Thakar Dass Nand Gopal. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loans 2.10 [ICRA]B+ Reaffirmed Fund-based Limits 10.90 [ICRA]B+ Reaffirmed ICRA has taken a consolidated view on the three group firms (Thakar Dass Nand Gopal, Mahaluxmi Cotton and General Mills, and Super Agro Industry) which have similar operational profile. The rating continues to be constrained by low value addition in the business which, coupled with high competitive intensity owing to presence of several unorganized players in the market, results in poor profitability and weak debt protection indicators. The rating also factors in the high working capital requirement during the cotton procurement season which impacts its liquidity position and TDNG's vulnerability towards changes in Government regulations and fluctuations in cotton prices which causes volatility in its accruals. The rating, however, continues to derive comfort from long experience of the promoters in cotton industry, its established relationship with clients, and proximity of the firm to the cotton producing belt (Gujarat). While assigning the rating, ICRA has also taken note of the risks inherent in a partnership firm, such as limited ability to raise equity capital, risk of dissolution due to death/retirement/insolvency of partners etc. Going forward, firm's ability to improve its profitability will be the key rating sensitive factor. Thakar Dass Nand Gopal is part of Sirsa (Haryana) based Thakar Dass Group promoted by late Shri Nand Gopalji Gupta, and is engaged in the business of cotton ginning/trading. The promoters have been into this business since 1956. The group has four cotton ginning units and one trading unit. Under TDNG, there are three operating units located in Fatehabad (Haryana), Sanosara (Gujarat), and Kothara (Gujarat). Fatehabad unit is a sole trading unit while the firm has a Ginning and pressing unit each in Sanosara and Kothara. The other two entities of the group, Super Agro Industry and Mahaluxmi Cotton & General Mills have a ginning and pressing unit in Sirsa (Haryana) and Jind (Haryana) respectively. In FY13, TDNG reported a profit before tax (PBT) of INR0.44 crore (previous year, INR0.3 crore) on operating income of INR160.62 crore (previous year 96.88 crore). UDAYANATH EDUCATIONAL: ICRA Suspends 'D' Rating on INR6.48cr Loan ----------------------------------------------------------------- ICRA has suspended the '[ICRA]D' rating assigned to the INR6.48 crore term loan of Udayanath Educational & Charitable Trust. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the entity. UNION ENTERPRISES: ICRA Cuts Rating on INR20.18cr Loans to C ------------------------------------------------------------ ICRA has revised downward the long term rating assigned to the Rs 18.18 crore fund based bank limits and the Rs 2 crore non fund based bank limits of Union Enterprises (Sachdev Steel Works Private Limited) from [ICRA]B- to [ICRA]C. The Rs 2 crore non fund based limit has also been rated on the short term scale, for which ICRA has re-affirmed the short term rating at [ICRA]A4. ICRA has also assigned an [ICRA]C /[ICRA]A4 rating to the Rs 2.71 crore unallocated bank lines of UE. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limits- 6.40 Revised downwards to Cash Credit [ICRA]C from [ICRA]B- Fund Based Limits- 11.78 Revised downwards to Term Loan [ICRA]C from [ICRA]B- Non Fund Based Limits 2.00 Revised downwards to Letter of Guarantee [ICRA]C from [ICRA]B-/ Re-affirmed at [ICRA]A4 Unallocated 2.71 [ICRA]C/[ICRA]A4 assigned The rating action takes into consideration the significant deterioration in the financial profile of UE due to the continuous losses posted over the last three years due to stagnating demand and high raw-material cost. The losses have eroded a significant portion of the net-worth of the company and severely impacted its capital structure. The ratings also factor in the small scale of the current operations due to the low capacity utilization of the rolling mills and weak financial profile of the company as characterized by negative returns from business over the last three years which keeps the debt protection indicators depressed. While assigning the rating ICRA has taken into consideration that the automated rolling mill installed during FY12, which was primarily debt funded and currently being underutilized, is likely to keep the coverage indicators under pressure. The ratings also factor in the high working capital intensity of the business due to the company's high receivable and inventory position and the cyclical nature of the steel industry, which is going through a difficult phase at present. The failure of the coal gasification plant to achieve the expected process parameters has led to an increase in the power costs. The ratings take into account the experience of the promoters (more than three and a half decades) in operating rolling units and the flexibility of the company to roll products of various specifications in accordance with market demand due to the availability of both rebar mill and structural mill. Union Enterprises (UE) has been in the business of manufacturing TMT bar and rod since 1975. The production facility is located in the Adityapur Industrial Area in Jamshedpur, Jharkhand. UE currently produces TMT bars where billets/pencil ingots are used as the major raw material. The company has recently installed a fully automated structural mill with a capacity of 57,600 tpa. This is in addition to the existing 14,400 tpa rebar mill. VERSATILE ALUCAST: ICRA Assigns 'D' Rating to INR11.10cr Loans -------------------------------------------------------------- ICRA has assigned the '[ICRA]D' rating to INR11.10 crore (enhanced from INR11.00 crore) long term bank facilities of Versatile Alucast Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term, Fund 8.00 [ICRA]D (Outstanding) based limits- Term Loan Long Term, Fund 3.10 [ICRA]D (assigned/Outstanding) based limits-Cash Credit The assigned rating reflects recent delays by the company in servicing its debt obligations owing to tight liquidity conditions and strained cash flows. Due to elongated approval cycle from OEMs, the company has been operating at suboptimal capacity resulting in operating losses and weak debt coverage indicators. Also, on account of losses, the net-worth has eroded which has resulted in adverse capital structure. ICRA has taken a note of established track record of promoters in auto component industry with an experience of over four decades in auto component manufacturing business. VAPL's ability to regularise its debt repayment obligations along with improvement in capacity utilization and profitability remains key rating sensitivities. Incorporated in 2011, VAPL has been formed to manufacture and supply aluminium die casting. The promoters have setup Greenfield aluminium casting facility (pressure die casting) in Kolhapur with an installed capacity of 1,300 MTPA. The company also has in-house machining facility. Total cost of the project is Rs 13.25 crore, which was funded through term loan of INR8.00 crore, equity of INR1.50 crore and rest through unsecured loan. ========= J A P A N ========= * JAPAN: Corporate Bankruptcies Down 20.2% in May ------------------------------------------------- Kyodo News reports that the number of corporate bankruptcies fell 20.2 percent in May from a year earlier to 834, slipping below 900 in the month for the first time in 23 years, a credit research agency said. The plunge was attributed to monetary support by government and private institutions for cash-strapped small and medium-size companies, Kyodo discloses citing a survey by Tokyo Shoko Research covering business failures with debts of JPY10 million or more. Kyodo relates that total liabilities left by bankrupt companies in May declined 0.4 percent to JPY172.64 billion as the failures were mostly small in scale with debts of less than JPY100 million. In the retail sector, Kyodo notes, the number of corporate bankruptcies declined for the first time in two months, despite the consumption tax hike in April, but the figure increased among retailers of clothing for women and children as well as books and stationery. Construction sector failures fell 32.6 percent from a year earlier to 169, the 27th monthly decline thanks to increased public works projects, Kyodo relays. In the manufacturing sector, the number of bankruptcies fell for the 10th straight month, to 131, the report adds. ==================== N E W Z E A L A N D ==================== CENTURY CITY: Receivers Put IBM House Up for Sale ------------------------------------------------- Cliff Sanderson at dissolve.com.au reports that the eight-storey IBM House is up for sale under instructions from receiver David Ruscoe -- david.ruscoe@nz.gt.com -- of Grant Thornton. dissolve.com.au says the eight-storey Petone waterfront office block faced financial troubles before its completion in 2009 by Century City Ventures as only three floors had been occupied by tenants. Mr. Ruscoe was named receiver of Century City Ventures in September 2011, the report says. He has been trying to secure other tenants in order to maximise the value of the property on behalf of the company's creditors, dissolve.com.au notes. GEOOP LIMITED: Annual Loss Widens to NZ$4.6MM --------------------------------------------- BusinessDesk reports that GeoOp Limited widened its annual loss as it pressed on with investing for growth. The report says the Auckland-based company posted a NZ$4.6 million loss in the year ended March 31, including NZ$600,000 of costs relating to its 2013 capital raising and listing. That compares with an annual loss of NZ$312,000 in the 2013 year. The company's loss per share narrowed to 23.9 cents a share from 294 cents a share the year earlier as it increased the number of shares on issue, the report discloses. BusinessDesk relates that GeoOp, which listed on the New Zealand stock exchange NZAX market for smaller companies in October, said revenue surged almost fourfold to NZ$488,000 in the past year as it increased paying users to 8,006 from 2,300, added new product features for the services and trades sectors and appointed key executives in sales and technology. The number of paying users increased further to 9,047 at May 31, it said. "In the seven months since GeoOp listed, the company has shown pleasing progress in the key areas of customer acquisition, product development and has significantly added its capability in its senior leadership team," the report quotes Chairman Mark Weldon as saying. "The board confidently expects momentum in customer acquisition to accelerate over the next 12 months." GeoOp has NZ$7.7 million of cash and investments to fund its growth, up from NZ$80,000 a year earlier, the report relates. It didn't pay a dividend. GeoOP Limited (NZX:GEO) -- http://geoop.com/-- offers mobile applications or use on smartphones and tablets. It develops mobile work flow business management applications for managing the creating, assigning, scheduling, carrying out, invoicing and payments of jobs. ROSS ASSET: David Ross Appeals Fraud Sentence to Victim Outrage ---------------------------------------------------------------- Hamish Fletcher at The New Zealand Herald reports that the length of David Ross' minimum non-parole period is "crushing" said his lawyer, who applied to the Court of Appeal for it to be reduced. Anger from Mr. Ross' out-of-pocket victims is still very raw as one of the country's biggest fraudsters appealed against the minimum sentence he must serve in jail before becoming eligible for parole, the Herald says. The report notes Mr. Ross, Wellington financier and former head of the Ross Asset Management (RAM), was sentenced at the Wellington District Court last year to 10 years 10 months' jail. The Herald relates that the 63-year-old's elaborate fraud, spanning 12 years, cost hundreds of investors their life savings and retirement funds. In total, NZ$115.5 million of investments is estimated to have been lost in the group, which folded last November. Prior to its collapse, Mr. Ross had led investors to believe they had NZ$351.5m in client portfolios, the report states. A minimum non-parole sentence of five years and five months was imposed by the sentencing judge, says the Herald. According to the Herald, Mr. Ross on June 11 appealed against that minimum non-parole sentence in Wellington. Mr. Ross lawyer, Gary Turkington, told the Herald he submitted that the minimum non-parole term should go down to 4 years. This was on the grounds that the original term was manifestly excessive, the report states. "I referred to sections in the Sentencing Act that provides that sentence should be the least restrictive possible and that rehabilitation is a cornerstone of sentencing," Mr. Turkington told the Herald. "And that the personal circumstances of Mr Ross were that at age 64, 5 year 5 months' minimum period before he's eligible for parole is crushing," he said. Justices Christine French, Jillian Mallon and Geoffrey Venning reserved their decision, Mr. Ross' lawyer said, the Herald relates. The Herald reports that a spokesman for Ross Asset Management Investors Group, Bruce Tichbon, said he had received e-mails expressing anger that victims could not counter appeal for a longer sentence. The investor group have received messages from those angry at Mr. Ross' lawyer "having the cheek to appeal," the report says. There was frustration that "Ross in many ways seems to get better treatment than his victims." "Cruelly the victims cannot be a party to this appeal," the report quotes Mr. Tichbon as saying. Mr. Ross' original sentence was the longest given out in a Serious Fraud Office case, the Herald notes. ********* 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 ***