/raid1/www/Hosts/bankrupt/TCRAP_Public/140806.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
Wednesday, August 6, 2014, Vol. 17, No. 154
Headlines
A U S T R A L I A
BLUESTONE GLOBAL: Administrators Seek to Find Jobs for Workers
DSG HOLDINGS: Jan Cameron Settles Insolvent Trading Claims
SOLAR GUYS: Owners Blames Collapses on Product Recalls
I N D I A
ABF FREIGHT: ICRA Suspends 'C+' Rating on INR5.15cr Loans
ADARSH SHIKSHAN: CARE Ups Rating on INR9.95cr Bank Loan From 'D'
AERCON INDIA: ICRA Suspends B+ Rating on INR6.50cr Loan
ANNUR SATYA: ICRA Reaffirms 'B-' Rating on INR11.23cr Loans
AUTO PROFILES: CRISIL Raises Rating on INR785MM Loans to 'B'
AXIS GARMENT: ICRA Assigns 'B' Rating to INR6.50cr Loans
CAPITAL ELECTRICALS: CRISIL Suspends B+ Rating on INR120MM Loan
CONSOLIDATED CROP: CARE Rates INR35cr Bank Loan at 'D'
ESSIX BIOSCIENCES: CARE Assigns 'D' Rating to INR38.94cr Loans
GLOBAL ART: ICRA Assigns 'B+' Rating to INR13cr Loans
GOENKA SHIKSHA: CRISIL Suspends 'D' Rating on INR66.9MM Loan
GRAMPUS LABORATORIES: CARE Assigns 'B+' Rating to INR4.11cr Loan
HALCO ALUMINIUM: CRISIL Assigns 'D' Rating to INR95MM Loans
JAYALAXMI POLY: ICRA Assigns 'B' Rating to INR4.32cr Loan
JMC CONSTRUCTIONS: ICRA Cuts LT Issuer Rating to 'Ir D'
MM ENGINEERS: CRISIL Assigns 'B+' Rating to INR30MM Loans
MODERN ACADEMY: CRISIL Suspends 'D' Rating on INR86MM Loans
MUSKAN OVERSEAS: CRISIL Suspends 'D' Rating on INR140MM Loans
PALAK FERRO: ICRA Assigns 'B+' Rating to INR6.20cr Loans
POPAWALA CHEMICALS: CARE Reaffirms 'B+' Rating on INR18.75cr Loan
RAJURI STEEL: CARE Assigns 'B' Rating to INR22.40cr Bank Loan
RIZON LAMINATES: ICRA Revises Rating on INR13.45cr Loans to B-
SADASAT CORN: ICRA Assigns 'B+' Rating to INR5.50cr Loan
SNS STARCH: CARE Upgrades Rating on INR52.29cr Bank Loan to 'B-'
SRI RAMESH: CARE Assigns 'B' Rating to INR5.47cr Bank Loan
SUMMER INDIA: ICRA Suspends 'D' Rating on INR232.4cr Loan
SUMMER INDIA WEAVING: ICRA Suspends 'D' rating on INR21cr Loan
TECHNO INDIA: CRISIL Suspends 'D' Rating on INR610MM Loans
I N D O N E S I A
BANK NEGARA: Moody's Raises Bank Financial Strength Rating to D+
BARITO PACIFIC: Posts US$2.64MM Net Loss in 1H 2014
M A L A Y S I A
BEST RE: S&P Withdraws Upgraded 'BB-' Counterparty Credit Rating
N E W Z E A L A N D
SOUTH CANTERBURY: Directors Turned Blind Eye, Court Hears
S O U T H K O R E A
DONGBU GROUP: Samtan Picked as Preferred Bidder For Power Unit
T H A I L A N D
TRUE MOVE: S&P Keeps then Withdraws 'B' CCR on CreditWatch Pos.
- - - - -
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A U S T R A L I A
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BLUESTONE GLOBAL: Administrators Seek to Find Jobs for Workers
--------------------------------------------------------------
Administrators of Bluestone Global Limited have begun efforts to
arrange new jobs for 3,500 workers and 180 staff retrenched.
Craig Shepard -- cshepard@kordamentha.com -- and Mark Uebergang --
muebergang@kordamentha.com -- of KordaMentha Restructuring were
appointed Voluntary Administrators of Bluestone Global Limited and
Liquidators of the majority of its Australian subsidiary companies
on August 4.
Mr. Shepard of KordaMentha Restructuring said that every step was
being taken to facilitate the transfer of the on-hire labour force
to other labour hire companies or to clients. "We are hopeful that
the majority of the on-hire workers will be engaged by other
labour suppliers over coming days," he said.
Because of the nature of their on-hire employment contracts, the
Bluestone workforce should find it easier to be re-engaged to do
the same work, Mr. Shepard said.
KordaMentha Restructuring is working to arrange the payment of all
employees' entitlements, including unpaid wages and statutory
severance entitlements under the Commonwealth Fair Entitlements
Guarantee Scheme. "Our objective is to have all statutory employee
entitlement claims lodged as a priority. The immediate Liquidation
of the subsidiary companies will enable immediate access to the
Fair Entitlements Guarantee Scheme," Mr. Shepard said.
The appointment of Liquidators and Administrators follows the
failure of the Company's proposed Rights Issue in May 2014. Since
then, Bluestone has been actively seeking merger opportunities
with the objective of improving the profitability of the business
through increased scale, and seeking to attract additional
investor funds to repair its balance sheet. These efforts have not
been successful and the Board was left with no option but to
appoint external administrators.
Bluestone, based in Melbourne, was an Australian-owned global
company specialising in labour hire, mining services and
professional recruitment. Bluestone's ResCo subsidiaries are a
major provider of mining services in the Hunter Valley.
DSG HOLDINGS: Jan Cameron Settles Insolvent Trading Claims
----------------------------------------------------------
Eloise Keating at SmartCompany reports that former BRW Rich Lister
Jan Cameron has agreed to hand over AUD13.84 million to the
previous administrators of her embattled discount retail chain
Retail Adventures, after reaching a settlement over claims the
company traded while insolvent in 2012.
SmartCompany relates that Deloitte partner Vaughan Strawbridge --
vastrawbridge@deloitte.com.au -- announced the settlement on
August 4, putting a stop to a public hearing into Deloitte's
claims of insolvent trading, preference payments and invalid
loans.
According to the report, the blow to the founder of retailer
Kathmandu comes on the same day current receivers KordaMentha
revealed a sale of most of the Retail Adventures chain is
"extremely unlikely".
Since the appointment of KordaMentha as receivers of backing
company DSG Holdings on July 1, 109 Crazy Clark's and Sam's
Warehouse stores have been earmarked for closure as the receivers
attempt to recover the AUD10 million owed to staff, the report
notes.
The report says the Deloitte claims relate to Retail Adventures'
activities in 2012, when the chain collapsed into administration
with debts worth AUD200 million.
SmartCompany notes that Ms. Cameron, who had bought the chain out
of receivership in 2009 for AUD85 million, bought the business
back in 2013 after striking a AUD5.5 million deal with creditors
and saving the company from liquidation.
However, Deloitte was unimpressed at the time, arguing creditors
had more to gain from rejecting the offer and making allegations
to ASIC that Cameron's company had traded while insolvent,
according to the report.
SmartCompany says the settlement includes AUD12.5 million in
relation to the insolvent trading claim and a further
AUD1.34 million in relation to preference claims.
According to SmartCompany, Deloitte said in a statement the
settlement brings the total amount recovered from the liquidation
process to AUD19.9 million.
Mr. Strawbridge said he expects to pay the settlement out as an
interim dividend as soon as possible, and assuming creditor claims
of approximately AUD88 million, the dividend will be around 15
cents in the dollar, SmartCompany relays.
SmartCompany relates that Mr. Strawbridge said Deloitte was in the
process of commencing legal action against directors of Retail
Adventures, but he decided to pursue a settlement after taking
into account the time it would take to reach a successful outcome
in the courts and the ability of Cameron and other directors to
pay, as well as the "risks inherent in any litigation".
Mr. Strawbridge said the settlement "resolves all claims" against
Cameron and other directors, all of whom have agreed not to
receive any payments from the liquidation process, the report
adds.
DSG Holdings Australia Pty Limited operates retailers Crazy Clarks
and Sam's Warehouse. It employs approximately 2,500 people across
143 retail outlets, has a distribution centre in Queensland and a
head office at North Ryde.
David Winterbottom and Rahul Goyal of KordaMentha Restructuring
have been appointed Receivers and Managers of DSG Holdings
Australia Pty Limited. This follows the appointment of Steve
Nicols of Nicols + Brien as Voluntary Administrator of DSG.
SOLAR GUYS: Owner Blames Collapses on Product Recalls
-----------------------------------------------------
Cara Waters at SmartCompany reports that the owner of collapsed
business The Solar Guys claims a spate of collapses in the solar
industry is being driven by government product recalls.
Dane Muldoon was the part-owner of family business The Solar Guys
before it collapsed into liquidation in June, the report says.
SmartCompany notes that the collapse follows the earlier
liquidation of electrical company Advancetech.
According to the report, Mr. Muldoon said the collapse was driven
by the Queensland government's recall of Avanco DC solar power
isolators.
The report says the switches, which are commonly used in solar
power installations, were one of five different recalls of
isolators.
SmartCompany relates that Mr. Muldoon claims there has been a
"systematic failure" by the standards and product compliance
industry that five different switches have been allowed to be sold
on the Australian market only for them to later be recalled.
Mr. Muldoon said the introduction by the Clean Energy Council of
mandatory DC isolators instead of DC miniature circuit breakers in
late 2011 has led to "massive problems" and "an enormous
destruction of capital in the solar industry," the report relays.
"[It's] a financial and goodwill burden to the solar industry that
they take absolutely no responsibility for," the report quotes Mr.
Muldoon as saying. "Someone has to pay for every single isolator
replacement, be it the manufacturer, supplier, retailer or the end
customer in the case that everyone else has gone out of business.
Millions of dollars have been erased from the industry to fix this
horrendous mess."
Mr. Muldoon said the problems with the Avanco isolators only
manifested themselves after 18 months, notes the report.
"Is the Clean Energy Council saying that it is each solar
company's (most of which are small businesses) responsibility to
field test components for at least two years before introducing
them to the market?" Mr. Muldoon said, adds SmartCompany.
But Laura Szekfy, spokesperson for the Clean Energy Council, told
SmartCompany the introduction of mandatory DC isolators was a
change implemented by Standards Australia not the Clean Energy
Council.
"This change was raised by the state electrical regulators,"
SmartCompany quotes Ms. Szekfy as saying. "Some businesses did go
into administration after the recall but there are a couple of
businesses which are managing the recall."
Adam Stingemore, spokesperson for Standards Australia, said the
body did not issue product recalls and said the Queensland Office
of Electrical Safety was responsible, the report adds.
The Solar Guys was a Queensland-based solar panel installation
business founded by John Muldoon in 1982.
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I N D I A
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ABF FREIGHT: ICRA Suspends 'C+' Rating on INR5.15cr Loans
---------------------------------------------------------
ICRA has suspended [ICRA]C+ rating assigned to the INR5.15 crore
long term limits and [ICRA]A4 rating assigned to the INR1.00 crore
short term limits of M/s ABF Freight International Private
Limited.
The suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
ADARSH SHIKSHAN: CARE Ups Rating on INR9.95cr Bank Loan From 'D'
----------------------------------------------------------------
CARE revised the rating assigned to the bank facilities of
Adarsh Shikshan Sansthan.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 9.95 CARE B- Revised
from CARE D
Rating Rationale
The revision in the rating of Adarsh Shikshan Sansthan factors in
the improvement in the debt servicing track record coupled with an
improvement in its financial risk profile marked by significant
growth in the total operating income and
improvement in profitability margins. The rating also draws
comfort from the management's experience in the field of education
with an increase in the number of enrolled students and healthy
prospects of the K-12 segment in India.
The rating continues to remain constrained by small scale of
operations with leveraged capital structure & weak debt
service coverage indicators, competition from the existing well-
established schools located in the nearby areas and the
evolving regulatory environment in the educational sector.
Going forward, the ability of ASS to attract and enroll students
as envisaged in a competitive scenario, improvement in the capital
structure while supporting the future expansions plans shall be
the key rating sensitivity.
Adarsh Shikshan Sansthan incorporated in April 2000, by Mr Ajit
Prasad Jain and Mr Jeevan Kumar Jain, had been set-up as a non-
profit education. ASS started its first play way school at Anand
Vihar, New Delhi, in 2003 under the name of 'Sapphire
International School' for the age group of 2 to 5 years. In FY10
(refers to the period April 1 to March 31), ASS also started a new
school (up to 8th class) under the name of 'Sapphire International
School' in Sector 70, Noida (UP) with the first academic session
starting in June 2010. At present ASS has around 1,420 students in
its both schools.
For FY14 (based on the provisional results), ASS achieved a total
operating income of INR13.08 crore with a surplus of INR2.96 crore
as against a total operating income of INR9.57 crore with surplus
of INR0.63 crore in FY13.
AERCON INDIA: ICRA Suspends B+ Rating on INR6.50cr Loan
-------------------------------------------------------
ICRA has suspended the '[ICRA]B+' rating assigned to the INR6.50
crore long term fund based facilities of Aercon India. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
Aercon India is a partnership firm incorporated in 2012 and
currently is in the process of setting up a AAC (Autoclaved
Aerated Concrete) blocks manufacturing plant with installed
capacity of 50,000 mtr3 in the Rajkot city of Gujarat. The
partners have more than five years of experience in the civil
construction of commercial building in the Rajkot region and have
executed project with a total salebale area measuring 2000 sq mtr.
ANNUR SATYA: ICRA Reaffirms 'B-' Rating on INR11.23cr Loans
-----------------------------------------------------------
ICRA has reaffirmed the long-term rating outstanding on the
INR4.23 crore term loan facilities, the INR4.50 crore fund based
facilities, and the INR2.50 crore non-fund based facilities of
Annur Satya Textile Limited at [ICRA]B-. ICRA has also reaffirmed
the short-term rating of [ICRA]A4 outstanding on the INR0.75 crore
non-fund based (sub-limit) facilities of ASTL. ICRA has also
reaffirmed the [ICRA]B-/[ICRA]A4 ratings to the INR3.76 crore
proposed facilities of ASTL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term loans facilities 4.23 [ICRA]B- Reaffirmed
Fund based facilities 4.50 [ICRA]B- Reaffirmed
Non-fund based 2.50 [ICRA]B- Reaffirmed
Facilities
Non-fund based (sub- (0.75) [ICRA]A4 Reaffirmed
limit) facilities
Proposed long-term/ 3.76 [ICRA]B-/[ICRA]A4
short-term limits Reaffirmed
The reaffirmation of ratings factors in the weak financial profile
characterised by a highly geared capital structure and stretched
coverage indicators. ASTL's gearing level continues to remain due
to high dependence on working capital borrowings against lower net
worth owing to losses incurred during troughs in the business
cycle. While the yarn demand witnessed some revival in 2013-14,
ASTL's operating margins was impacted by higher power costs due to
reliance on diesel power, induced by acute power shortage in the
region. The ratings are also constrained by intense competition in
the highly commoditized industry, which limits pricing flexibility
the company's. ASTL has tied-up with third party power providers,
this likely to mitigate the impact of any power shortages;
however, the improvement in operating margins will be contingent
upon favourable demand environment.
ASTL is primarily engaged in producing blended (polyester-cotton)
yarn. Incorporated in July 1991, the Company has an installed
capacity of 22,080 spindles at its manufacturing facility in Annur
(near Coimbatore, Tamil Nadu). Promoters and their relatives
closely hold the Company. ASTL currently produces blended yarns in
counts ranging from 30's to 70's with focus on 30's to 40's count
range. Its customer profile largely comprises yarn processors and
traders in the domestic market.
Recent Results (Provisional)
For the three months ended June 30, 2014, ASTL had a net profit of
INR0.1 crore on operating income of INR12.2 crore.
AUTO PROFILES: CRISIL Raises Rating on INR785MM Loans to 'B'
------------------------------------------------------------
CRISIL has upgraded its rating on the long term bank facilities of
Auto Profiles Limited (APL) to 'CRISIL B/Stable' from
'CRISIL D', and assigned rating of 'CRISIL A4' on the short term
bank facilities.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 15 CRISIL A4 (Assigned)
Cash Credit 204 CRISIL B/Stable (Upgraded
from 'CRISIL D')
Proposed Long Term 274.9 CRISIL B/Stable (Upgraded
Bank Loan Facility from 'CRISIL D')
Working Capital 20 CRISIL B/Stable (Upgraded
Term Loan from 'CRISIL D')
Term Loan 286.1 CRISIL B/Stable (Upgraded
from 'CRISIL D')
The rating upgrade reflects the improvement in APL's liquidity
profile, characterized by timely servicing of debt for past six
months ended June 2014. The improvement can be primarily
attributed to the equity infusion from the promoters of around
INR39.5 million in 2013-14, and INR10 million in three months
ended June 2014.
While APL's liquidity is expected to continue to remain weak on
account of tightly matched net cash accruals against term debt
repayments, the liquidity is expected to be supported by timely
need based support from the promoters to meet term debt
repayments. Promoters are expected to infuse further INR20 million
in the remainder of 2014-15.
The ratings reflect susceptibility to APL's revenues to
cyclicality of commercial vehicle industry, high customer and
segment concentration in revenues, and susceptibility of operating
margins to increase in raw material prices, and inability to pass
on input cost increases to original equipment manufacturers
(OEMs). These rating strengths are partially offset by established
track record and extensive experience of promoters in auto
ancillary industry, and moderate financial risk profile marked by
moderate net worth, and gearing, partially constrained by weak
debt protection metrics.
Outlook: Stable
CRISIL believes that APL will continue to benefit from promoter's
extensive experience in auto ancillary industry. The outlook may
be revised to 'Positive' if APL generates substantial growth in
revenues and profits, resulting in more-than-expected net cash
accruals, thereby improving its liquidity. Conversely, the outlook
may be revised to 'Negative' if APL registers lower-than-expected
revenues and profitability, further weakening its liquidity or if
it undertakes large debt-funded capex resulting in deterioration
in company's financial risk profile, or in case of elongation in
its working capital cycle, leading to a deterioration in its debt
protection metrics.
Based out of Jamshedpur and promoted in 1991 by Mr. Bikash
Mukherjee and family, APL is engaged in manufacturing of auto
components for commercial vehicle industry. APL manufactures
various auto parts/sheet metal components for light commercial
vehicles (LCV) and MHCVs.
AXIS GARMENT: ICRA Assigns 'B' Rating to INR6.50cr Loans
--------------------------------------------------------
ICRA has assigned a long term rating of [ICRA]B to the INR6.50
crore long-term bank facilities of Axis Garment Designer.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term, fund-based 4.00 [ICRA]B assigned
facilities-Cash Credit
Long-term, fund-based 2.50 [ICRA]B assigned
Facilities-Term Loan
The assigned rating takes into account promoters' experience and
operating track record of almost 12 years in the textiles
industry. The rating also factors in the locational advantage due
to proximity to raw material sources and processing units. The
rating is however constrained by the limited track record of the
firm since the manufacturing facility has been operational only
for the last seven months. The rating is also constrained by the
relatively small scale of operations and exposure to intense
competition in the domestic market due to fragmented nature of the
industry. Tie-up of additional working capital borrowings would be
critical to meet its funding requirements during the growth phase
since liquidity is expected to remain tight.
Axis Garment Designer (AGD) is a partnership firm established in
2012. The firm is promoted by Mr. Avinash Gaikwad, Ms. Rashmi
Gupta and Mr. Rajendra Manjrekar. The promoters have been part of
the textiles industry since the last 12 years. Earlier, the
promoters were engaged in manufacturing of garments on job work
basis, through a separate entity. AGD is primarily engaged in
manufacturing of texturised yarn (60% of total production) and
fabric manufacturing (30% of total production). It also
manufactures readymade garments (RMG), primarily ladies wear and
children wear, although on a small scale (10%).
Recent results:
As per its unaudited results for the three months ended
March 2014, Axis Garment Designer (AGD) reported a marginal profit
after tax (PAT) of INR19,317 on an operating income of INR4.48
crore.
As per its unaudited results for the three months ended
June 2014, Axis Garment Designer (AGD) reported profit after tax
(PAT) of INR0.80 crore on an operating income of INR5.90 crore.
CAPITAL ELECTRICALS: CRISIL Suspends B+ Rating on INR120MM Loan
---------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Capital
Electricals Ltd (CEL; part of the Capital group).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 200 CRISIL A4 Suspended
Cash Credit 120 CRISIL B+/Stable Suspended
Letter of Credit 50 CRISIL A4 Suspended
Proposed Short Term
Bank Loan Facility 50 CRISIL A4 Suspended
The suspension of ratings is on account of non-cooperation by CEL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, CEL is yet to
provide adequate information to enable CRISIL to assess CEL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
CRISIL has combined the business and financial risk profiles of
CEL and Capital Meters Ltd, together referred to as the Capital
group. This is because these companies have operational linkages,
common management and marketing network.
Incorporated in 1992 by Mr. Pawan Kumar Bansal, CEL (Formerly
known as Mayur Electrical Industries Pvt Ltd) is engaged in the
manufacture of electric wires and cables. The company's plant is
situated in Noida, Uttar Pradesh.
CONSOLIDATED CROP: CARE Rates INR35cr Bank Loan at 'D'
------------------------------------------------------
CARE assigns 'CARE D' rating to the bank facilities of
Consolidated Crop Protection Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 35 CARE D Assigned
Rating Rationale
The rating assigned to the bank facilities of Consolidated Crop
Protection Pvt. Ltd. takes into account the stressed liquidity
position resulting in delays in servicing of its debt obligations
in the recent past.
The ability of CCPPL to service the debt obligations in the timely
manner would be critical from the credit perspective.
Consolidated Crop Protection Pvt. Ltd. is the subsidiary of
Conwood Realty Pvt). CRPL is headed by Mr Yashvardhan Goenka,
grandson of Mr Krishna Murari Goenka. Mr Krishna Murari Goenka is
the promoter of Conwood group, which has business interests across
diverse segments from Real estate, Hospitality, Granite and
Marble, Dairy, Medical, Education and Jewelry. CRPL took over
CCPPL by taking over 91% shares from the existing shareholders on
November 24, 2010. CRPL is constructing a commercial building,
Conwood Paragon in Goregaon, Mumbai. Currently, approvals for the
project are in place and with CCPPL planning to launch the project
for sales in Q2FY15, the liquidity stress is expected to ease. As
on May 31, 2014, CCPPL has incurred INR49 crore or 43% of the
total project cost of INR114 crore.
ESSIX BIOSCIENCES: CARE Assigns 'D' Rating to INR38.94cr Loans
--------------------------------------------------------------
CARE assigns 'CARE D' rating to the bank facilities of Essix
Biosciences Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 28.94 CARE D Assigned
Short term Bank Facilities 10.00 CARE D Assigned
Rating Rationale
The rating assigned to the bank facilities of Essix Biosciences
Ltd factors in the frequent instances of delays in debt
servicing due to stressed liquidity position.
Originally incorporated as Essix Financial Services Ltd as a
private limited company on Sept. 24, 1993, the company was renamed
as Essix Biosciences Ltd on Oct. 17, 2004. EBL was promoted by Dr
Gopal Munjal (chairman of EBL since its formation) and his
associates, who are also the promoters of other group companies,
ie, Ind-Swift Ltd (ISL) and Ind-Swift Laboratories Ltd.
Till 2007, EBL derived all its revenue from research & analysis,
which was done for its group company, ie, ISLL. Since 2008,
the company has started manufacturing Active Pharmaceutical
Ingredients (API) Intermediates which it supplies to ISLL, a
manufacturer of APIs. The stages involved in the manufacturing of
API Intermediates at EBL do not call for following strict
FDA guidelines which helps in cost rationalisation for the group
as a whole. EBL has provided the corporate guarantee to
the bank facilities of ISLL to the tune of INR1,171.82 crore.
Essix Biosciences Ltd registered a total operating income of
INR95.92 crore during FY13 (refers to the period April 1 to
March 31) with a PBILDT of INR10.88 crore and net losses of
INR0.34 crore.
GLOBAL ART: ICRA Assigns 'B+' Rating to INR13cr Loans
-----------------------------------------------------
ICRA has assigned a long term rating of '[ICRA]B+' for INR7.7
crore term loans, INR3.0 crore fund based facilities and INR2.3
unallocated limits of Global Art Exports.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits 3.0 [ICRA]B+ (Assigned)
Term Loans 7.7 [ICRA]B+ (Assigned)
Unallocated 2.3 [ICRA]B+ (Assigned)
The assigned rating takes into account the long standing presence
of GAE's promoters in the handicraft's export business, firm's
diverse customer base and its established relationships with
reputed clients like Debenhams UK and Mercer Furniture.
The rating also derives strength from the comfortable gearing
levels as on 31st March, 2014, moderate debt protection
indicators, healthy profitability and accruals of GAE.
The rating is however constrained by the modest scale of
operations of the firm, relatively high working capital intensity
of business, intensely competitive nature of industry given the
low capital requirements and low entry barriers and vulnerability
of GAE's profitability to adverse movement in foreign exchange
rates given the sizeable portion of export income. Further the
rating also takes into consideration the expected increase in
gearing levels on account of the debt funded capex being
undertaken by the company for setting up another manufacturing
unit with veneer coating facility. The rating also remains
constrained by the risks inherent in proprietorship nature of the
firm like limited ability to raise capital, risk of dissolution
upon death of the proprietor, withdrawal of capital, etc.
Global Art Exports is a sole proprietorship firm incorporated in
the year 2000 by Mrs Ranjana Johari. The firm is managed by her
husband Mr Ramakant Johari and has its manufacturing facilities
based out of Sitapura Industrial Area in Jaipur. The firm
manufactures and exports various wooden handicraft products like
tables, chairs, cabinets and doors.
Recent Results
The firm reported a net profit after tax of INR0.88 crore on an
operating income of INR12.92 crore in FY2014 (provisional) as
against a net profit after tax of INR0.51 crore on an operating
income of INR16.80 crore in FY2013.
GOENKA SHIKSHA: CRISIL Suspends 'D' Rating on INR66.9MM Loan
------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Goenka
Shiksha Avam Shodh Sansthan.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 66.9 CRISIL D Suspended
The suspension of ratings is on account of non-cooperation by
GSASS with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, GSASS is yet to
provide adequate information to enable CRISIL to assess GSASS's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
Set up in 1995 by Mr. S S Goenka, GSASS is a charitable and non-
profit trust that operates four educational institutions: Mohini
Devi Mahila Mahavidyala, Goenka Public School, Goenka College of
Pharmacy, and Mohini Devi Goenka Girls B.Ed College. All these
institutes are in Sikar (Rajasthan).
GRAMPUS LABORATORIES: CARE Assigns 'B+' Rating to INR4.11cr Loan
----------------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank
facilities of Grampus Laboratories.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 4.11 CARE B+ Assigned
Long term Bank Facilities 1.00 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Grampus
Laboratories are constrained by GPL's relatively small scale of
operations with low net worth base, weak financial risk profile
marked by declining profitability margins, leveraged capital
structure, elongated collection period and weak liquidity
indicators. The ratings are further constrained by high degree of
competition due to the fragmented nature of the industry,
stringent regulations in pharmaceutical industry and constitution
of the entity as a partnership firm.
The rating, however, continues to favourably take into account the
reasonable experience of the promoters and location advantage of
the manufacturing facility.
The ability of the firm to increase the scale of operations while
improving profitability margin, improve its capital structure
while managing the working capital requirements would be the key
rating sensitivities.
Grampus Laboratories is a partnership firm established in
June 2005. The firm is currently having two partners, i.e.
Mr. P.K. Maini & Mr Manav Maini (S/o Mr. P.K. Maini) having 3:1
share in profit and loss in the entity. The firm is engaged in
manufacturing of veterinary medicines and external medicines
(which find application in killing of germs and parasites
in wool) from its manufacturing facility located in Sirmour,
Himachal Pradesh. The firm gets orders through tendering and
bidding process and mainly undertakes contracts for Animal
Husbandry Department and wool manufacturing companies.
The main raw material is chemicals and compounds like copper
sulphate, cobalt and albendozol which are procured from
traders and manufacturers from different states like Maharashtra,
Bangalore and Rajasthan. The firm has necessary certifications and
approvals including WHO GMP certification, product registration
certifications from the Drug Control Authority of India.
For FY13 (refers to the period April 1 to March 31), GPL reported
a total income of INR9.64 crore with PBILDT and PAT of INR0.89
crore and INR0.28 crore respectively. Furthermore, for FY14
(provisional), the firm has achieved a total operating income
INR20.12 crore with PBILDT and PAT of INR1.14 crore and INR0.22
crore.
HALCO ALUMINIUM: CRISIL Assigns 'D' Rating to INR95MM Loans
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the bank facilities
of Halco Aluminium Extrusions.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 65 CRISIL D
Cash Credit 28.5 CRISIL D
Proposed Long Term
Bank Loan Facility 1.5 CRISIL D
The rating reflects HAE's delays in payment of interest on term
loan on account of the company's weak liquidity and nascent stage
of operation.
HAE also has limited track record and is exposed to competition
from large and established players in the industry. These rating
weaknesses are partially offset by the benefits that the company
derives from its promoters' extensive entrepreneurial experience.
Established in 2012, HAE manufactures aluminium extrusions. It
stared commercial production in January 2014. HAE's product
portfolio includes aluminium profiles used in various sectors such
as construction, electrical, electronic, and automobile
components. Its manufacturing facilities at Sarutari in Kamrup
(Assam) has an installed capacity of 2100 tonnes per annum.
JAYALAXMI POLY: ICRA Assigns 'B' Rating to INR4.32cr Loan
---------------------------------------------------------
ICRA has assigned the long-term rating of [ICRA]B to the INR4.32
crore long-term fund based facilities of Jayalaxmi Poly Packs
Private Limited. ICRA has also assigned the short term rating of
[ICRA]A4 to the INR3.00 crore short-term non- fund based
facilities of the firm.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Fund 4.32 [ICRA]B/Assigned
Based Facilities
Short Term Non 3.00 [ICRA]A4/Assigned
Fund Based Facilities
The assigned rating factors in the promoters' long standing
experience in the plastic business and its established
relationships with suppliers and dealers in Southern India. The
Company's revenue stream is diversified across stretch film and
bubble film thereby lending business stability to an extent. JPPPL
has seen steady growth in revenues and margins since its
incorporation, and its financial profile remains characterized by
moderate gearing and coverage indicators. The ratings are however
constrained by the lack of product differentiation in the
company's product profile which reduces its competitive advantage,
and the absence of its direct dealings with OEMs which adversely
affects profitability. The rating also takes into account the
vulnerability of the company's margins to price fluctuations in
primary raw materials LDPE (Low density Polyethylene) & LLDPE
(Linear Low density Polyethylene),which are in turn pegged to
crude oil prices. Further, JPPPL's relatively small scale of
operations limits its financial flexibility and restricts scale
benefits to an extent. ICRA notes that the company has near term
plans to introduce more value added products and start the
manufacture of a specialty in-house developed product, which is
likely to provide a fillip to revenues and profitability going
forward. However, the company's near term rapid expansion plans,
to be funded largely through debt, are likely to exert pressure on
its debt metrics. Going forward, the company's ability to expand
its scale of operations whilst maintaining a healthy financial
profile and improving profitability, would remain key rating
sensitivities.
Incorporated in January 2010, Jayalaxmi Poly Packs Private Limited
is engaged in the manufacture of specialty plastic films and
packaging products like Plastic Stretch Film and Plastic Bubble
Film with variations like Manual Wrap, Machine Wrap, Pre Stretch
Film Wrap, UV Inhibitor Film, Anti Corrosion Inhibitor Film and
Anti Static Wrap films under Plastic Stretch Film and Plain, Anti-
Static, UVI-Air and Foam varieties under Bubble Film. JPPPL was
started by Mr.V Srinivasa, and was a result of him identifying a
gap in the area of plastic packaging while conducting research for
his earlier business venture, Jayalaxmi Polychem, which was
engaged in the manufacture of polythene bags from 2007-2010. The
company is currently in the process of acquiring requisite
machinery and expanding its product offering to include PE Blown
Film varieties like PE Shrink Film and PE VCI Film, apart from a
unique "air cushion film" developed by the company's in house
team. JPPPL operates out of Bangalore and its areas of operation
primarily include South India viz. Karnataka, Andhra Pradesh,
Kerala and Tamil Nadu.
Recent results
For 2013-14, the company reported an operating income of INR13.4
crore with a profit after tax of INR0.3 crore as against an
operating income of INR6.0 crore with a net loss of INR0.004 crore
during 2012-13
JMC CONSTRUCTIONS: ICRA Cuts LT Issuer Rating to 'Ir D'
-------------------------------------------------------
ICRA has downgraded the long-term issuer rating of JMC
Constructions Private Limited (JMCPL) to Ir D from [Ir] C-.
The rating revision to [Ir] D factors in overutilizations in the
cash credit facility for more than 30 days in the recent months on
account of stretched liquidity profile. JMCPL has outstanding
receivables of ~INR16 crore largely pertaining to retention money
for the works completed. Further, the inventory days have gone up
from 58 days on 31st March 2013 to 119 days on 31st March 2014 due
to delays in getting the completed works certified in road
projects in Andhra Pradesh given the strikes pertaining to
bifurcation of the state in FY14.
The company has an outstanding orderbook of INR149 crore as on
31st May 2014, constituting of road widening, strengthening works
and maintenance of State/National highways. The order book is
geographically concentrated in the state of Andhra Pradesh,
accounting for ~59% of the outstanding orderbook as on 31st May
2014. In FY14, there has been little progress in most of these
orders; consequently there was a 49% drop in turnover from INR164
crore in FY13 to INR83 crore in FY14. ICRA however notes that the
promoters have experience of over 3 decades in the construction
industry and completed road contracts worth INR268 crore in the
past 3-4 years.
Mr. A Srinivasulu started taking contracts in his individual
capacity since 1979. In 1999, partnership firm JMC Constructions
was formed. In 2008, the partnership firm was converted into
Private Limited Company. JMCPL is based out of Chittoor and has
executed road works for Government of Andhra Pradesh and National
Highway Authority of India. In FY14, JMCPL had an operating income
of Rs, 83.04 crore and PAT of INR1.68 crore.
MM ENGINEERS: CRISIL Assigns 'B+' Rating to INR30MM Loans
---------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of MM Engineers Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 1.7 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 13.3 CRISIL B+/Stable
Letter of Credit 25 CRISIL A4
Bank Guarantee 25 CRISIL A4
Cash Credit 15 CRISIL B+/Stable
The ratings reflect MMEPL's large working capital requirements,
and its moderate scale of operations in the intensely competitive
heavy engineering segment. These rating weaknesses are partially
offset by the extensive industry experience of the company's
promoters, and its above-average financial risk profile, marked by
healthy gearing and debt protection metrics.
Outlook: Stable
CRISIL believes that MMEPL will continue to benefit over the
medium term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the company's revenue and
operating profitability improve significantly while it maintains
its capital structure, resulting in an improvement in its
liquidity. Conversely, the outlook may be revised to 'Negative' if
MMEPL generates lower-than-expected cash accruals, or undertakes a
debt-funded capital expenditure programme, or if its working
capital management deteriorates, resulting in weakening of its
financial risk profile.
MMEPL was established in Coimbatore (Tamil Nadu) in 1978. The
company manufactures different types of cranes and hoists. It is
promoted and managed by Mr. Harish Vagadia, Mr. M Durairajan, and
Mr. G Kaleeswaran.
MMEPL reported, on a provisional basis, a profit after tax (PAT)
of INR6.7 million on an operating income of INR268.8 million for
2013-14 (refers to financial year, April 1 to March 31); it had
reported a PAT of INR5.8 million on an operating income of INR306
million for 2012-13.
MODERN ACADEMY: CRISIL Suspends 'D' Rating on INR86MM Loans
-----------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Modern
Academy.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long Term Loan 78.5 CRISIL D Suspended
Overdraft Facility 7.5 CRISIL D Suspended
The suspension of ratings is on account of non-cooperation by MA
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, MA is yet to
provide adequate information to enable CRISIL to assess MA's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
MA was formed in 1999 as a society by Mr. Mr. C L Dhingra, Mr. R C
Monga, Mr. Narendra Kumar, Mr. Sanjay Dhingra, and Ms. Nilam
Dhingra. The society promoted its first institute, Amrapali
Institute of Applied Science, in Haldwani (Uttarakhand) in 1999.
MA currently operates four institutes and one school in
Uttarakhand. The institutes offer courses in the fields of
technology, information technology, management and hotel
management.
MUSKAN OVERSEAS: CRISIL Suspends 'D' Rating on INR140MM Loans
-------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Muskan
Overseas Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 10 CRISIL D Suspended
Cash Credit 10 CRISIL D Suspended
Packing Credit 120 CRISIL D Suspended
The suspension of ratings is on account of non-cooperation by MOPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, MOPL is yet to
provide adequate information to enable CRISIL to assess MOPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.
MOPL was set up in 1999 as a partnership firm by Mr. Manish Gupta
and his brother, Mr. Dinesh Gupta. It was reconstituted as a
private limited company in April 2010. MOPL is engaged in the
milling, processing, and export of basmati rice. MOPL mainly
processes the 1121 variety of basmati rice, which it sells in the
overseas markets, and its by-products, such as broken rice, husk,
and bran, which it sells in the domestic market.
PALAK FERRO: ICRA Assigns 'B+' Rating to INR6.20cr Loans
--------------------------------------------------------
ICRA has assigned an [ICRA]B+ rating to the INR6.1 crore long term
fund bank facility and INR0.1 crore term loan of M/s. Palak Ferro
Alloys. ICRA has also assigned an [ICRA]B+/[ICRA]A4 rating to the
INR13.80 crore unallocated line of credit of PFA.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term fund- 6.10 [ICRA]B+ assigned
based limits
Term Loan 0.10 [ICRA]B+ assigned
Unallocated line 13.80 [ICRA]B+/[ICRA]A4 assigned
of credit
The assigned ratings take into account the weak financial profile
of the firm characterized by nominal accruals, aggressive capital
structure and depressed coverage indicators; high working capital
requirements of its operations, which has an adverse impact on the
firm's liquidity profile and business requirement of maintaining
high inventory levels which exposes the firm to price risks. The
ratings are also constrained by the small scale of operations at
present; high customer concentration risk as sales to top 10
customers accounted for 77% of its total revenue in 2013-14;
exposure to forex risk given the firm's dependence on imports
coupled with absence of formal hedging mechanism and risks
associated with the entity's status as a proprietorship firm
including the risk of capital withdrawals by the proprietor.
The assigned ratings, nevertheless, draw comfort from the
experience of the proprietor in the ferro alloy industry;
financial support provided by the proprietor through regular
capital infusions and interest free unsecured loans; proximity of
the firm's manufacturing facility to key raw material sources and
customers, which increases the firm's competitiveness and
diversified product portfolio with presence in steel and
fertilizer industry.
Established in 2008 as a proprietorship firm by Mr. Rahul Parwani,
PFA is engaged in the manufacturing of ferro alloys and manganese
oxides. The firm has its manufacturing facility located at Nagpur,
Maharashtra. PFA has an installed capacity of 1500 MTPA for
manufacturing ferro alloys such as medium carbon (MC) ferro
manganese, low carbon (LC) ferro manganese and silico manganese,
and 1500 MT for manufacturing manganese oxides. Ferro alloys find
application in the steel industry whereas manganese oxides are
used in the fertilizer industry.
Recent Results
In 2012-13, PFPL reported a net profit of INR0.17 crore on the
back of net sales of INR11.15 crore. As per the provisional
results for 2013-14, the company reported a net profit of INR0.18
crore on the back of net sales of INR15.95 crore.
POPAWALA CHEMICALS: CARE Reaffirms 'B+' Rating on INR18.75cr Loan
-----------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Popawala Chemicals Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long/Short-term Bank 18.75 CARE B+ Reaffirmed
Facilities
Rating Rationale
The ratings assigned to the bank facilities of Popawala Chemicals
Private Limited continue to be constrained by the moderate scale
of operations, low profitability margins and leveraged capital
structure. The ratings are further continue to be constrained by
susceptibility of profitability margins to foreign exchange
fluctuation risk and operations in the highly competitive and
fragmented industry.
The ratings however, continue to derive strength from the long and
established track record of the promoters in the
business along with established relationship with reputed
suppliers.
The ability of PCPL to increase its overall scale of operations
along with an improvement in profitability margins and
capital structure are the key rating sensitivity.
Incorporated in 1964, Popawala Chemicals Private Limited is a
distributor and indenting agent engaged in trading of industrial
chemicals, specialty chemicals, polymers and pharma intermediaries
which find application in pharmaceutical, paints, plastic,
synthetic fibres, inks, paper, personal care, cosmetics and other
related industries. During FY14 (refers to the period April 1 to
March 31), approximately 70% of the sales were contributed by the
paints and plastic industry. PCPL earns majority of its revenue
from the domestic market against approximately 95% imports mainly
from China, Korea and Taiwan during FY14. PCPL is agent of around
25 chemical manufacturers worldwide. The warehouse of the company
is located in Mumbai, Ahmedabad, Chennai & Kolkata.
RAJURI STEEL: CARE Assigns 'B' Rating to INR22.40cr Bank Loan
-------------------------------------------------------------
CARE assigns 'CARE B' rating to the bank facilities of Rajuri
Steel & Alloys Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 22.40 CARE B Assigned
Rating Rationale
The rating assigned to the bank facilities of Rajuri Steel &
Alloys Private Limited is constrained on account of its
short track record and working capital intensive nature of
operations, strained financial risk profile characterized by
leveraged capital structure, weak debt coverage indicators,
stressed liquidity profile and susceptibility of profit margins to
volatile coal prices.
The rating, however, derives comfort on account of the long
experience of the promoters in the steel sector, operational
and financial synergies with group companies, locational advantage
and cost optimization measures adopted by the company.
The ability of the company to commence its full capacity
operations without any cost and time overruns coupled with
improvement in liquidity profile remain the key rating
sensitivities.
RSPL is a part of the Rajuri group of companies, based in Jalna,
Maharashtra and has been in the steel business for about
two decades. RSPL was incorporated in 2010 and is engaged in the
manufacturing of sponge iron at its facility located in
the Chandrapur district of Maharashtra. Having commenced
commercial operations from January 2013, the company caters
predominantly to the requirement of its group companies. Raw
material required for manufacturing includes iron ore and coal,
which is procured from adjoining states of Madhya Pradesh,
Chhattisgarh and Orissa. RSPL has an installed capacity of 60,000
Metric Tonnes Per Annum (MTPA), of which 30,000 MTPA has been made
operational till June 2014.
During FY14 (provisional), RSPL earned PBILDT of INR4.84 crore on
a total operating income of INR35.61 against PBILDT of INR1.01
crore on a total operating income of INR5.99 crore in FY13.
RIZON LAMINATES: ICRA Revises Rating on INR13.45cr Loans to B-
--------------------------------------------------------------
ICRA has revised the long term rating assigned to the INR6.00
crore cash credit limits and INR7.45 crore term loans of
Rizon Laminates Private Limited to [ICRA]B- from [ICRA]B.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit Facility 6.00 Revised to [ICRA]B-
from [ICRA]B
Term Loan 7.45 Revised to [ICRA]B-
from [ICRA]B
The revision in rating takes into account RLPL's start up nature
of operations and lower than expected ramp up of revenues
resulting in a weak financial profile characterized by operating
losses, high gearing levels and inadequate debt protection metrics
during FY14; and the anticipated stress on the company's liquidity
position given the delay in buildup of cash flows and the high
debt repayment obligations in the near term. The rating continues
to be constrained by the high competitive intensity in the
laminates business which limits pricing flexibility and
profitability; and vulnerability of profitability to adverse
fluctuations in the prices of the key raw material.
The rating, however, takes comfort from the experience of RLPL's
promoters and their long association with related business; and
the favourable long term demand outlook for decorative laminates
due to the large scale of real estate development and rising
urbanization in the country.
Incorporated in 2012, Rizon Laminates Private Limited is engaged
in manufacturing decorative laminates sheets of 0.8 mm and 1.0 mm
thickness. The manufacturing unit is located at Morbi, (District
Rajkot) in Gujarat and has a production capacity of 1,150,000
sheets per annum. The company is promoted by Mr. Dharamsingh Boda
and Mr. Savji Boda who have more than two decades of experience in
the industry by virtue of other group company Shri Ram Hardware
Mart engaged in trading of hardware materials and furnishing items
since 1987.
SADASAT CORN: ICRA Assigns 'B+' Rating to INR5.50cr Loan
--------------------------------------------------------
ICRA has assigned a long-term rating of [ICRA]B+ to the INR5.50
crore fund-based bank facilities of Sadasat Corn Products Private
Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-Term Fund 5.50 [ICRA]B+ Assigned
Based Facilities
The assigned rating is constrained by the company's modest
operational profile which has resulted in weak profitability and
accruals. Weak accruals along with leveraged capital structure,
which is on account of debt funded setting up of the green-field
facility, and scheduled debt repayments has kept the debt coverage
and liquidity position modest. The green-field facility for starch
manufacturing was set-up in FY-13, the utilisation of which
although improved from 58% in FY-14 to ~70% in Q1'FY-15, remains
at sub-optimal levels. This has resulted in modest scale of
operations and also cash accruals for company, given the high
capital related expenses (interest and depreciation). The
operations of the company are working capital intensive in nature
which along with weak accruals and scheduled debt payments results
in high dependence upon borrowings to fund working capital
requirements, stretching the liquidity positions as reflected in
consistent high utilisation of working capital limits. The
assigned rating also takes into account the risks inherent in agro
based industry such as climatic conditions which could affect the
crop harvest and thereby its availability and prices, which would
in turn impact the sales and profitability of the company, given
the fragmented industry. Notwithstanding the above concerns, the
rating factors in the experience of the promoters in the agro
processing industry and advantages arising from location of
manufacturing facility, which is in proximity to maize cultivating
regions and also starch consuming industries.
Going forward, the ability of the company to improve utilisation
of installed capacity and also the profitability would be critical
to generate sufficient accruals for debt servicing which along
with prudent management of working capital cycle and maintaining
adequate liquidity position would be the key rating sensitivities.
Sadasat Corn Products Private Limited is engaged in wet milling of
maize for manufacturing of starch. The company's manufacturing
facility is located in Kurukshetra (Haryana), having milling
capacity of 100 metric tonnes per day (MTPD) on three shift basis;
however given initial period of operations, the facility is
currently running on a single shift. The company mainly supplies
starch to the industrial customers across various sectors; which
include textiles, adhesives, papers, etc. The company is promoted
by Goyal family, which has a long track record in agro processing
business through group company Goya Agro Products Private Limited
which is engaged in manufacturing of rice bran solvent oil, rice
bran de-oiled cake, liquid glucose, high protein supplement for
animal feed; etc.
SNS STARCH: CARE Upgrades Rating on INR52.29cr Bank Loan to 'B-'
----------------------------------------------------------------
CARE revises and reaffirms the rating assigned to bank facilities
of SNS Starch Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 52.29 CARE B- Revised
from CARE C
Short term Bank Facilities 3.80 CARE A4 Re-affirmed
Rating Rationale
The revision in the ratings takes into account improvement in the
liquidity profile with stabilization of the operations of the
plant during FY14 (refers to the period April 1 to March 31). The
ratings, however, continue to remain constrained by the highly
leveraged capital structure, high working capital intensive nature
of business, volatility in prices and availability of raw
materials and stiff competition from other small scale and
unorganized players in the industry. The ratings also take into
account the experience of the promoters in other businesses,
strategic location of the plant, backward integration through
presence of captive power plant and multiple applications of maize
starch product.
Incorporated in December 2008, SNS Starch Limited is promoted by
Mr Sanjay Jalan (Managing Director). The company has set up a
grain-based starch plant with capacity of 300 tons/day and a 4 MW
biomass-based Captive Power Plant (CPP) at Konderu Village,
Mahaboobnagar District,Telangana. The starch plant has achieved
COD in June 2012, while the CPP achieved its COD in July 2012. Mr
Sanjay Jalan is the Managing Director of SSL.
The promoters have also promoted SNJ Synthetics Limited (SSL,
rated CARE BB-/CARE A4) incorporated in April 1998 and engaged in
the manufacturing of Poly Ethylene Terephthalate (PET) performs,
Poly Propylene (PP) and High Density Poly Ethylene (HDPE).
During FY14 (as per the provisional financials), SSL reported a
total income of INR69.68 crore (INR31.58 crore in FY13) and
a net loss of INR4.44 crore (net loss of INR10.35 crore in FY13).
SRI RAMESH: CARE Assigns 'B' Rating to INR5.47cr Bank Loan
----------------------------------------------------------
CARE assigned 'CARE B' ratings to bank facilities of Sri Ramesh
Rice Industry.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 5.47 CARE B Assigned
The rating assigned by CARE is based on the capital deployed by
the partners and the financial strength of the firm at present.
The rating may undergo a change in case of a withdrawal of the
capital or the unsecured loans brought in by the partners in
addition to the financial performance and other relevant factors.
Rating Rationale
The rating assigned to the bank facilities of Sri Ramesh Rice
Industry (SRRI) is primarily constrained by its relatively small
scale of operations, weak financial risk profile marked by
relatively high gearing, low profitability and high working
capital intensity of operations.
The rating is further constrained by its presence in a highly
fragmented and competitive industry with seasonal availability of
paddy and policy risks in terms of Minimum Support Price (MSP) for
raw material and procurement of rice by the Food Corporation of
India (FCI as 45% of production should be sent to FCI which
affects the profitability of the firm) and risks arising from
partnership nature of the firm.
The rating, however, derives strength from the long track record
of the partners in the rice mill business, ease in paddy
procurement due to location of the facility in a major paddy-
cultivating region of the country and favorable demand prospects
of the industry.
The ability of the firm to increase its scale of operations,
improve its capital structure while managing its working capital
effectively and withstand market competition is the key rating
sensitivities.
SRRI was established in the year 2001 as a partnership firm by Mr
M Narasimhulu and Mrs M Adilaxmi. SRRI is engaged in milling and
processing of rice at its rice milling unit located at
Vaviletipadu, Nellore District; Andhra Pradesh with an installed
capacity to process 16,000 metric tons per annum of rice. Apart
from manufacturing, the firm is also engaged in selling of
byproducts (broken rice and bran) and trading of rice. The main
raw material; paddy, is procured from the local farmers directly
located at Nellore, Andhra Pradesh. The firm generates its revenue
by selling rice, broken rice and bran in Andhra Pradesh, Kerala,
Tamil Nadu (55% of revenue) through dealers and Food Corporation
of India (45% of revenue).
During the last three fiscals ending FY14 (refers to the period
April 1 to March 31), the firm has generated 90% of its
revenue from its manufacturing activity and the rest 10% from
trading activity.
SUMMER INDIA: ICRA Suspends 'D' Rating on INR232.4cr Loan
---------------------------------------------------------
ICRA has suspended the long-term rating of [ICRA]D assigned to the
INR142.96 crore term loan facilities and the INR10.00 crore fund
based (sub-limit) facilities and the short-term rating of [ICRA]D
assigned to the INR54.00 crore fund based facilities, the INR11.50
crore non-fund based facilities and the INR13.94 crore proposed
facilities of Summer India Textile Mills Private Limited. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
Company.
Established in 1972 as partnership firm by Mr. K.S. Rangasamy,
SITMPL was incorporated as a private limited company in 1997. The
Company is primarily engaged in production and export of table
tops, napkins, bed linen and kitchen towels. SITMPL caters mainly
to hospitality and retail chains in the United States and Europe.
The Company's manufacturing facility is located in Tiruchengode
(Tamil Nadu) which operates with 85 looms and 235 stitching
machines. The facility also houses a weaving preparatory unit and
a fully fledged fabric processing unit having capacity for
bleaching 80,000 meters per day and dyeing 20,000 meters of fabric
per day.
SITMPL's group company, Summer India Weaving and Processing Mills
Private Limited is engaged in production of fabric with 40 looms
and 80 stitching machines. SIWPMPL primarily cater to the
requirement for fabric from SITMPL. SIWPMPL is also closely held,
with the same promoter group holding the stake.
SUMMER INDIA WEAVING: ICRA Suspends 'D' rating on INR21cr Loan
--------------------------------------------------------------
ICRA has suspended the long-term rating of [ICRA]D assigned to the
INR21.00 crore term loan facilities of Summer India Weaving and
Processing Mills Private Limited. The suspension follows ICRA's
inability to carry out a rating surveillance in the absence of the
requisite information from the Company.
SIWPMPL, incorporated in 2005 by Mr.A.R. Aasaithambhee, is
primarily engaged in production of fabric from cotton yarn. The
Company sources yarn from domestic manufacturers and cater mainly
to the fabric requirements of SITMPL. The Company's manufacturing
facility is located in Tiruchengode (Tamil Nadu) which operates
with 40 looms and 80 stitching machines.
Its group company, Summer India Textile Mills Private Limited
(SITMPL), is primarily engaged in production and export of table
tops, napkins, bed linen and kitchen towels with 85 looms and 235
stitching machines. SITMPL has a weaving preparatory unit and a
fully fledged fabric processing unit. SITMPL is also closely held,
with the same promoter group holding the stake.
TECHNO INDIA: CRISIL Suspends 'D' Rating on INR610MM Loans
----------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Techno
India.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Overdraft Facility 431 CRISIL D Suspended
Proposed Long Term
Bank Loan Facility 58.6 CRISIL D Suspended
Term Loan 120.4 CRISIL D Suspended
The suspension of ratings is on account of non-cooperation by TI
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, TI is yet to
provide adequate information to enable CRISIL to assess TI's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.
TI operates an engineering-cum-management college (Techno India
College), one engineering college (Techno Global, Balurghat), two
degree colleges (Techno India, Kolkata and Hooghly), and seven
schools. Of the seven schools, two (named Techno Model School)
provide higher secondary education, while five (named Techno India
Group Public School) provide pre-primary, primary, and secondary
education.
=================
I N D O N E S I A
=================
BANK NEGARA: Moody's Raises Bank Financial Strength Rating to D+
----------------------------------------------------------------
Moody's Investors Service has affirmed the Baa3 local and foreign
currency deposit ratings of Bank Negara Indonesia (BNI).
At the same time, Moody's has raised by one notch the bank
financial strength rating (BFSR) of BNI to D+ from D. The new BFSR
now maps to a baseline credit assessment (BCA) of ba1.
The bank's foreign currency senior unsecured rating of Baa3 and
short-term rating of Prime-3 are affirmed.
The outlook on all ratings is stable.
Ratings Rationale
The higher BFSR and BCA for BNI reflect improvement in the bank's
asset quality metrics, which used to be the key weak spot in the
bank's credit profile. BNI's asset quality metrics are now
comparable with other banks at a BFSR/BCA of D+/ba1 globally as
well as within Indonesia. On the other credit metrics as well,
such as capital, profitability and liquidity levels, BNI compares
very well with ba1 rated peers.
Moody's expects a weakening operating environment in Indonesia in
the next 12-18 months, driven by a tight monetary policy as the
central bank prioritizes stability over growth. This will lead to
a deterioration in asset quality at Indonesian banks including at
BNI. However, the extent of such deterioration should be
relatively mild, and the bank should continue to rank well
compared to other banks at a BFSR/BCA of D+/ba1 on this parameter.
Moody's see the expected deterioration in asset quality as only
being a normalization of asset quality trends rather than it being
an indicator of any structural issues at the bank.
Moreover, BNI has strong buffers in place in terms of high loan
loss coverage, high capital levels, and strong earning-generation
capability to withstand any incremental asset quality stress.
The Indonesian banking system has been seeing pressure on its net
interest margin (NIM), driving by tight liquidity and high
competition for deposits. However, superior funding franchises of
the big four banks (including BNI) have enabled them to maintain
stable NIMs in contrast to the sharp decline seen at the smaller
banks. While Moody's expect NIMs at BNI to contract over the next
12-18 months, the extent of contraction should be much lower than
what has been seen at the smaller banks in Indonesia.
Profitability should remain a credit strength for the bank.
Moody's rating of the bank assumes that the current governance
structures at state-owned banks, including BNI, would remain
broadly unchanged under the new incoming government.
What Could Move The Ratings Up/Down
Moody's would consider upgrading the bank's BCA if it demonstrates
further sustained improvements in asset quality. Specifically
Moody's would look for the adjusted non-performing loan (NPL)
ratio - which includes restructured loans as performing loans -
staying below 3.5% for an extended period (4.6% at end-March
2014). In addition, an upgrade of the sovereign rating of the
Government of Indonesia (Baa3 stable) would result in an upgrade
of the bank's deposit and issuer ratings.
Moody's would consider lowering the BFSR/BCA if:
- The bank's market share of deposits substantially erodes.
- Credit quality declines sharply such that its adjusted NPL ratio
exceeds 6.0% for an extended period (4.6% at end-March 2014).
- Loss-absorbing buffer deteriorates considerably, with the Tier 1
ratio dipping below 11% (14.7% at end-March 2014).
- A decline in profitability, with the net income/risk weighted
assets ratio coming down to below 2.4% (3.1% at end 2013).
A downgrade of the sovereign rating would result in a downgrade of
the bank's deposit and issuer ratings.
The principal methodology used in this rating was Global Banks
published in July 2014.
BNI, headquartered in Jakarta, had assets of IDR407.82 trillion
(USD34.1 billion) at end-June 2014. The bank is ranked fourth in
Indonesia in terms of assets, loans and deposits.
BARITO PACIFIC: Posts US$2.64MM Net Loss in 1H 2014
---------------------------------------------------
The Jakarta Post reports that PT Barito Pacific (BRPT) announced
on August 4 that it continued to book profit losses in the first
half of this year, but by slimmer margins, aided by an increase in
revenue amid price challenges.
Barito recorded a US$2.64 million net loss at the end of June this
year as compared to US$11.53 million in losses in June of 2013,
The Jakarta Post discloses citing a financial report submitted to
the Indonesia Stock Exchange (IDX).
The Jakarta Post relates that the company's director, Henky
Susanto, said previously that losses continued because the company
was still heavily reliant on its petrochemical industry,
especially from subsidiary Chandra Asri Petrochemical's (TPIA)
operations.
Ongoing volatility in the petrochemical industry frequently
affects Chandra Asri, as raw material prices spiral in line with
oil prices, according to the report.
Even so, demand still appears strong, as Barito posted a slight
6.5 percent increase in revenues during the first six months of
the year, reaching US$1.3 billion year-on-year, supported by
increases in some of its business lines, the report discloses. The
company targets an overall US$2.7 billion in revenues this year,
an 8 percent increase from 2013.
The Jakarta Post says the first half performances was a small
improvement from what Barito achieved during the same period in
2013, when its revenue climbed 5 percent on a yearly basis.
PT Barito Pacific, controlled by Indonesian tycoon Prajogo
Pangestu, currently runs several business operations, including
petrochemicals, wood processing, plantation and property.
===============
M A L A Y S I A
===============
BEST RE: S&P Withdraws Upgraded 'BB-' Counterparty Credit Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services raised to 'BB-' from 'B+' its
counterparty credit and insurer financial strength ratings on the
Malaysia-based Best Re reinsurance subgroup, which comprises BEST
RE (L) Ltd. and BEST RE Family (L) Ltd.
S&P subsequently withdrew the ratings at Best Re's request. The
outlook was stable at the time of withdrawal.
The Best Re subgroup comprises Malaysia-based reinsurers Best
Re(L) Ltd. (non-life reinsurance) and Best Re Family (L) Ltd.
(life reassurance), both of which are wholly owned by Dubai-based
parent Salama/Islamic Arab Insurance Co. (P.S.C.)(Salama/IAIC).
The upgrade reflected S&P's view that there is much less
uncertainty regarding the ultimate amount of losses incurred by
Best Re in relation both to 2011 Thai flood claims and to the
disputed loss-of-handset claims made against it by a South Korean
insurer. S&P understands that Best Re has now reached a final,
out-of-court settlement with the South Korean insurer and that all
legal proceedings in this respect have now ceased. At the same
time, in respect of its remaining liabilities from the 2011 Thai
floods, S&P also understands that Best Re has reached final
agreement to settle claims with most cedants; there are a only a
few to settle, subject to negotiation. However, given the
magnitude of Best Re's losses and the damage that the consequent
uncertainties have done to its brand and reputation, management
has virtually ceased writing new business in the subgroup.
At the time of withdrawal, the ratings on the Best Re subgroup
reflected S&P's view of the two reinsurance entities (non-life and
life) combined, and of the subgroup as nonstrategic to its parent,
Salama/IAIC. Consequently, the Best Re ratings mirrored the
subgroup's stand-alone credit profile (SACP) of 'bb-', which S&P
derives from the subgroup's vulnerable business risk profile and
weak financial risk profile. The vulnerable business risk profile
reflected an intermediate industry and country risk assessment and
a weak competitive position. The subgroup saw a substantial
decrease in the volume of non-life business it wrote in 2013, and
it has written almost no new business in 2014.
Best Re's weak financial risk profile principally reflected S&P's
belief that although its risk position has improved marginally--to
high risk from very high risk--its financial flexibility was weak
at the time of the withdrawal. Its access to new capital was
constrained because the company has almost stopped writing new
business. S&P viewed capital adequacy as moderately strong, which
it believed was sufficient to support the orderly run-off of the
liabilities.
"Under our base-case scenario, and setting aside the impact of the
settlements, we expected the bottom line to be close to breakeven
in 2014-2016. Prospective capital and earnings appeared likely to
stabilize at a moderately strong level, particularly given the
subgroup's now very limited exposure to new business risk. We
assessed the risk position as high because some uncertainty could
remain relating to retrocession recoveries in respect of settled
claims. In addition, although the subgroup maintains a large
proportion of its assets in cash, it also carries material
exposure to what we consider high-risk assets, such as equities,
real estate, and cash holdings with banks rated 'BB+' or below.
Unsettled liabilities relating to the Thai floods of 2011 appeared
to us to be stabilizing, and to be adequately covered by
reserves," S&P said.
====================
N E W Z E A L A N D
====================
SOUTH CANTERBURY: Directors Turned Blind Eye, Court Hears
---------------------------------------------------------
Emma Bailey at The Timaru Herald reports that the three men
accused of New Zealand's largest fraud ignored regulations and
turned a blind eye to their chairman's activities, a court has
heard.
The report relates that the Crown started presenting its closing
arguments in the South Canterbury Finance (SCF) trial in the High
Court in Timaru on August 5.
The Timaru Herald says the trial, which began on March 12, has
entered its final phase with this week set aside for the Crown's
closing arguments, followed by the defence next week.
Former SCF directors Ed Sullivan and Robert White, and former
chief executive Lachie McLeod, face 18 charges brought by the
Serious Fraud Office following SCF's NZ$1.58 billion collapse, the
report notes. The trial is being heard by Justice Paul Heath
alone.
According to the report, Crown counsel Colin Carruthers QC said
the "defendants ignored or overrode the controls that should have
regulated how South Canterbury [Finance] operated".
"That remains the essence of the Crown position," the report
quotes Mr. Carruthers as saying. "The major shareholder and
chairman [the late Allan Hubbard] had little interest in the
various accounting and legal regulations upon him. Mr Hubbard's
attitude was memorably described in evidence as 'trust me I know
what I'm doing'."
Mr. Hubbard was described as "window dressing" the accounts, the
report notes.
"He had a disdain for disclosing related-party transactions, a
peculiar view of what constituted one, a penchant for swapping
cheques to cleanse the accounts and took assets off the balance
sheet if they were impaired," Mr. Carruthers, as cited by The
Timaru Herald, said.
The evidence was also that the defendants "well knew that", he
said, the report says.
"On July 25, 2007 the directors even went so far as to write to Mr
Hubbard expressing their concerns. That is an extraordinary
document, setting out a long list of issues directly relevant to
these charges, from related-party advances, the single-entity
exposures limit, advances made without security, loan and drawdown
authorisation and so on.
"But critically nothing changed. And more importantly, these
defendants did not just turn a blind eye. This case is about the
affirmative statements they made and affirmative actions they
took."
It was not a case of simply failing to act, Mr. Carruthers said,
the report relays.
"These three men affirmatively facilitated the improper way the
company was run, by saying that the true position was what it was
in the company's prospectuses or accounts, and personally
approving transactions that breached the Trust Deed or Crown
Guarantee. In doing so, the Crown says they broke the law."
The hearing continues, the Timaru Herald adds.
Based in New Zealand, South Canterbury Finance Limited
(NZE:SCFHA) -- http://www.scf.co.nz/-- was engaged in the
provision of financial services. The Company's principal
activities were borrowing funds from public and institutional
investors and on lending those funds to the business, plant and
equipment, property, rural and consumer sectors. It typically
advanced funds by means of hire purchase, floor plans, leasing of
plant, vehicles and equipment, personal loans, business term
loans and revolving credit facilities, mortgages against
property, and other financial instruments, including consumer
loan insurance.
On Aug. 31, 2010, Trustees Executors Limited, as trustee for
South Canterbury Finance charging group, appointed Kerryn Downey
and William Black of McGrathNicol as receivers of the charging
group's secured assets.
"As Trustee, we have had South Canterbury Finance under
heightened surveillance since 2008. As part of that, SCF was
granted a Trustee waiver in February 2010 to allow it time to
recapitalize. Unfortunately, the Company's Directors have
advised us that they have not been successful with respect to a
recapitalization and requested us to appoint a receiver. At this
point we, as Trustee, agree that it is the best interests of
debenture, deposit and bond holders to do that," said Yogesh
Mody, Southern Regional Manager for Trustees Executors Limited.
The New Zealand government repaid South Canterbury's 35,000
depositors and stockholders NZ$1.6 billion under the Crown
retail deposit guarantee scheme.
====================
S O U T H K O R E A
====================
DONGBU GROUP: Samtan Picked as Preferred Bidder For Power Unit
--------------------------------------------------------------
Yonhap News Agency reports that Samtan Co., a South Korean energy
and coal mining company, was picked as the preferred bidder for a
60 percent stake in Dongbu Power Dangjin Corp., the operator of a
coal-fired thermal power plant in South Chungcheong Province,
Dongbu Corporation said August 5.
Yonhap relates that Dongbu Corporation, a construction affiliate
of Dongbu Group, made the announcement in a regulatory filing
after accepting bids a day earlier from Samtan and SK Gas, SK
Group's energy unit. Detailed terms of the bid were not disclosed,
the report says.
According to the news agency, the deal is expected to help Samtan
diversify its energy portfolio as it has been expanding to the LPG
and biodiesel sectors by establishing an energy enterprise in
Indonesia.
Yonhap notes that cash-starved Dongbu Group, the nation's 18th-
largest conglomerate, put up Dongbu Dangjin for sale to raise
money to help ease its worsening financial status under growing
pressure from creditors.
POSCO, South Korea's top steelmaker, had initially sought to buy
Dongbu Dangjin along with money-losing Dongbu Steel, but the
drawn-out negotiations fell through in June, the report says.
Yonhap notes that six local companies expressed their interest in
acquiring the thermal plant, which is set to start operation in
2018 in Dangjin, about 123 kilometers south of Seoul, but only
Samtan and SK Gas took part in the official bid.
According to the report, company officials said once the plant is
sold, the cash-strapped Dongbu Group will use the money to pay
part of the KRW424 billion in corporate bonds that are due in the
second half of this year.
Dongbu is a South Korean conglomerate corporation which operates
through seven business segments with 42 subsidiaries and 35,000
employees. The Group produces industry, chemical, shipping,
insurance and financial products.
===============
T H A I L A N D
===============
TRUE MOVE: S&P Keeps then Withdraws 'B' CCR on CreditWatch Pos.
---------------------------------------------------------------
Standard & Poor's Ratings Services kept its 'B' long-term
corporate credit rating and 'axBB-' long-term ASEAN regional scale
rating on Thailand-based wireless communication service provider
True Move Co. Ltd. on CreditWatch with positive implications. S&P
then withdrew the ratings at True Move's request, following the
company's repayment of its US$225 million bond on Aug. 1, 2014.
S&P kept the ratings on CreditWatch because the leverage of True
Move's parent True Corp. Public Co. Ltd. was likely to improve
following its proposed rights issue, which will be raised between
Aug. 22 and Sept. 2, 2014. True Corp.'s shareholders approved the
rights issue on July 25, 2014.
S&P believed the execution risk in the capital increase would be
manageable. This is because Thailand-based conglomerate Charoen
Pokphand Group will underwrite the unsubscribed portion of the
Thai baht (THB) 36.4 billion public offering, while True Corp.
will raise THB28.6 billion through a private placement to
telecommunications service provider China Mobile Ltd. After the
capital increase, True Corp.'s group credit profile would likely
improve to 'b+' at least, given that the company has earmarked 80%
of the rights issue proceeds to repay bank debt. S&P forecasts
that True Corp.'s ratio of funds from operations to debt would be
comfortably in line with an "aggressive" financial risk profile in
2014.
S&P believed that True Move was core to True Corp.'s strategy of
remaining an integrated telecommunications player in Thailand's
fixed-line, wireless, and pay-TV sectors. Under S&P's criteria,
it notched up the company's 'b-' stand-alone credit profile to
equalize the ratings with the group credit profile.
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel
Elaine T. Fernandez, Julie Anne L. Toledo, and Peter A. Chapman,
Editors.
Copyright 2014. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
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TCR-AP subscription rate is US$775 for 6 months delivered via e-
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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 ***