/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/140915.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 Monday, September 15, 2014, Vol. 17, No. 182 Headlines A U S T R A L I A MILLER DIAMONDS: Showcase Jewellers Buys Passion8 Brand PROJECT SUNSHINE: Moody's Rates US$400MM Term Loan Facility (P)B2 PROJECT SUNSHINE: S&P Assigns 'B+' Rating to US$400MM Facility SHOALHAVEN COMMERCIAL: Placed in Administration TLC PRINT: Perfectly Bound Buys Firm Out of Administration ULTIMATE CREATIVE: Goes into Administration C H I N A CHINA METALLURGICAL: 1H 2014 Results Supports Baa3 CFR CITIC LTD: S&P Raises LT ICR From 'BB'; Outlook Stable EVERGROWING BANK: Faces $650 Million Default From Shadow Banking FUFENG GROUP: Fitch Affirms BB- IDR; Outlook Stable LDK SOLAR: Files Schemes of Arrangement in Hong Kong WEST CHINA CEMENT: Fitch Rates US$400MM Sr. Unsec. Notes at BB- I N D I A ANGRISH ALLOYS: ICRA Puts B Rating on INR5.44cr Unallocated Loan ANSHUL STEELS: CRISIL Suspends B Rating on INR160MM Cash Credit ANUGRAHA FASHION: CRISIL Suspends D Rating on INR318.6M Term Loan AUTOCREATE WHEELS: ICRA Assigns B Rating to INR16.6cr LT FB Loan BHARATH CEMENT: CRISIL Suspends B+ Rating on INR95MM Cash Credit COIRFOAM (INDIA): ICRA Reaffirms B+ Rating on INR6cr LT FB Loan DADA GANPATI: ICRA Revises Rating on INR16cr LT Loan From B+ DISHA INDUSTRIES: ICRA Suspends B Rating on INR44.83cr FB Limits EXCELLENT POWER: ICRA Suspends B Rating on INR7.5cr FB Limits GUPTAS GOLD: ICRA Assigns 'B+' Rating to INR7cr Fund Based Limits HARIPACK POLYMERS: CRISIL Reaffirms B INR50M Cash Credit Rating HRA PAPER: CRISIL Suspends 'D' Rating on INR160MM Term Loan IMMENSE PACKAGING: ICRA Assigns B- Rating to INR4.25cr Term Loan KG PIPES: CRISIL Suspends D Rating on INR100MM Cash Credit M. P. INTERNATIONAL: ICRA Reaffirms B+ Rating on INR3cr FB Loan MAHABIR POULTRY: CRISIL Suspends B Rating on INR32.8M Cash Credit MALLIKARJUN AGRO: CRISIL Suspends B+ Rating on INR185.3MM Loan MANJU SHREE: ICRA Reaffirms B+ Rating on INR4.90cr FB Loan MARUDHAR FASHIONS: ICRA Ups Rating on INR7.69cr Term Loan to B+ MATA RANI: CRISIL Suspends D Rating on INR120MM Cash Credit MERIDIAN EXTRUSIONS: ICRA Rates INR24cr Proposed Loan at 'B' NAVEEN COTTON: CRISIL Suspends B- Rating on INR150MM Cash Credit NEW PALSANA: ICRA Lowers Rating on INR49cr Term Loan to 'D' PASHANKAR AUTO: CRISIL Suspends B+ Rating on INR160MM Cash Credit POLYLON FABRICS: CRISIL Suspends B- Rating on INR250M Cash Credit POWER CABLE: ICRA Suspends B Rating on INR7.5cr Fund Based Limits RANK SILICON: ICRA Suspends B+ Rating on INR10cr Fund Based Loan S&P STRUCTURALS: ICRA Assigns B+ Rating to INR2cr Cash Credit SHRI BALAJI: ICRA Reaffirms B Rating on INR65cr Fund Based Limit SK OVERSEAS: ICRA Assigns 'B' Rating to INR3.0cr Fund Based Loan SP SUPERFINE: ICRA Upgrades Rating on INR82.12cr Term Loan to 'C' SUKRUTA AGENCIES: CRISIL Suspends INR80M Overdraft Loan B+ Rating TILE ITALIA: ICRA Suspends 'B' Rating on INR7cr Fund Based Loan TRAVANCORE COCHIN: ICRA Rates INR20cr LT Fund Based Loan at 'B' TRIVENI SMELTERS: ICRA Reaffirms B+ Rating on INR7.5cr Cash Loan U.S. AGRAWAL: ICRA Reaffirms B Rating on INR6.5cr Cash Credit VARDHMAN POLYTEX: ICRA Cuts Rating on INR464cr LT FB Loan to D VENKATA NAGA: ICRA Reaffirms B+ Rating on INR9cr Cash Credit VISHWANATH PAPER: ICRA Ups Rating on INR20cr FB Limits to B+ WARM FORGINGS: ICRA Reaffirms B- Rating on INR9.50cr Cash Credit WITTY AUTO: ICRA Cuts Rating on INR5cr Term Loan to 'D' N E W Z E A L A N D BULLET FREIGHT: Still Owes More Than NZ$18MM to Creditors S O U T H K O R E A KB FINANCIAL: FSC to File Complaint With Prosecution vs. Head S R I L A N K A NATIONAL SAVINGS BANK: Fitch Rates 2019 US$ Notes Issue BB- - - - - - ================= A U S T R A L I A ================= MILLER DIAMONDS: Showcase Jewellers Buys Passion8 Brand ------------------------------------------------------- Eloise Keating at SmartCompany reports that the flagship jewellery brand of collapsed company Miller Diamonds has been snapped up by retail group Showcase Jewellers. Diamond wholesaler Miller Diamonds collapsed into administration in July, after the company's main overseas diamond supplier called in its debt. Prior to collapsing, Miller Diamonds was turning over approximately AUD5 million, SmartCompany discloses. SmartCompany, citing Jeweller Magazine, relates that retail group Showcase Jewellers has purchased the intellectual property for the Passion8 brand, which, under Miller Diamonds, included the Passion8 range of diamonds and the Passion8 range of jewellery. Miller Diamonds had been selling Passion8 diamonds since 2001 and Passion8 jewellery since 2011. Miller Diamonds administrator and managing partner of Jirsch Sutherland Sule Arnautovic confirmed to SmartCompany that the Passion8 brand has been sold to a third party, as well as "all other assets of the company", but said he is unable to disclose the purchasers or terms of the sales. SmartCompany says Showcase Jewellers is a network of independent jewellery retailers, which operates as a retail buying group. The network was established in 1981 and according to the Showcase website, has close to 200 members. According to SmartCompany, George Proszkowiec, chairman of Showcase operating company JIMACO, told Jeweller Magazine the company decided to purchase the Passion8 brand because it was already stocked by a large number of Showcase members. But members of the jewellery industry have raised concerns about why widely Passion8 products will be available, given the brand's new home. While Showcase members stocked the brand, other non- member retailers did too, SmartCompany relates. PROJECT SUNSHINE: Moody's Rates US$400MM Term Loan Facility (P)B2 ----------------------------------------------------------------- Moody's Investors Service has assigned a provisional (P)B2 senior secured rating to Project Sunshine IV Pty Ltd's (Project Sunshine) proposed US$400 million Term Loan Facility. The outlook on the rating is stable. Project Sunshine is the 100% owner of Sensis Pty Ltd (Sensis), which is Australia's leading provider of telephone directory services. The proceeds of the issuance will be used to repay the $315 million Term Loan B issued by the company in February 2014 (which was subsequently reduced to around $200 million from operating cash flow), fund a distribution to the equity holders, and pay related fees and expenses. The assignment of definitive senior secured rating is subject to review of final documentation and successful close of the transaction. Ratings Rationale "The ratings primarily reflect the weak operating profile and structural decline of the industry sector in which Sensis operates, namely print and digital directories" says Saranga Ranasinghe, Moody's Analyst. "The ratings also incorporate the intensifying threat from digital alternatives and other rapidly expanding information and social networking sites. Moody's expect Sensis' customer base and revenue to decline materially over the rating horizon, in-line with current rates of decline or slightly faster" adds Ranasinghe. The rating therefore incorporates a degree of uncertainty around the pace of future decline in the industry. Should the acceptance and usage of digital alternatives to print, take place at a faster pace than anticipated, the value of the company could diminish more quickly than Moody's base case. Project Sunshine's ratings are balanced by a good financial profile with low projected financial leverage and adequate levels of free cash flow. Notwithstanding the expected increase in debt following the proposed issuance, Moody's expect the company's leverage as measured by Debt/EBITDA to peak at around 1.2x - 1.4x in FY15 following transaction close, and Moody's anticipate that the company should be able to maintain adequate credit metrics at its rating level over the next 1-2 years with diminishing CAPEX requirements and ability to pay down debt " adds Ranasinghe. The ratings further recognize the adequate liquidity position available to the company given the good cashflow generation available over the term to maturity. As such the ratings incorporate Moody's expectation for the company to have the capacity to fund itself through internally generated cash flow and available cash balances. The outlook on the ratings is stable reflecting Moody's expectation that the company will delever and maintain a good financial profile in order to offset the risks associated with an industry in decline. What could change the rating - Up Upward pressure on the rating is unlikely given the uncertainties and risks associated with the structural decline of the industry sector in which the company principally operates. Nevertheless, the rating could be upgraded in due course in the event that it is able to accelerate its revenue and earnings from digital services on a sustained basis. Indicators that Moody's would look for include digital earnings constituting more than 50% of total earnings and EBIT margins improving to around 20%, also on a sustained basis. What could change the rating - Down The rating could be downgraded in the event that the company's revenue and earnings deteriorate faster than Moody's current expectations, the company fails to de-lever as expected or fails to generate positive free cash flow in any period. The principal methodology used in this rating was Global Publishing Industry published in December 2011. Project Sunshine IV Pty Ltd is the 100% owner of Sensis Pty Ltd (Sensis). Sensis is Australia's leading provider of telephone directory services. PROJECT SUNSHINE: S&P Assigns 'B+' Rating to US$400MM Facility -------------------------------------------------------------- Standard & Poor's Ratings Services said that it had assigned a 'B+' issue rating and recovery rating of '2' to Project Sunshine IV Pty Ltd.'s proposed US$400 million, term loan B facility (guaranteed by Project Sunshine III Pty Ltd. and each of its wholly-owned subsidiaries). The recovery rating reflects S&P's view that lenders under the facility should receive a substantial (70%-90%) level of recovery in the event of a default. At the same time, S&P affirmed the long-term issuer credit rating of 'B' on Project Sunshine III Pty Ltd. The rating incorporates S&P's assessment on Project Sunshine III and its subsidiaries, which include Project Sunshine IV Pty Ltd. and Australian directories publisher, Sensis Pty Ltd. (collectively Project Sunshine group). The outlook on the long-term rating remains stable. "The rating affirmation is based on our assessment that the group remains exposed to the structurally declining print directories market, and strong and growing competition in the online directories market. In addition, the group's ownership by a private-equity company underpins our view that Project Sunshine group has an "aggressive" financial profile," said Standard & Poor's credit analyst Paul Draffin. Given the structural challenges facing the company, S&P expects the group to require ongoing cost restructuring over the next few years to adapt to declining revenues. Accordingly, the group will, in S&P's view, be challenged to manage the execution risks associated with this restructuring without accelerating the structural revenue falls. That said, the group has been making good progress on its cost reduction program during the past few months. S&P's business risk assessment also assumes that the group will apply the majority of free cash flow to debt reduction, rather than investing in new revenue streams. S&P's financial risk assessment of "aggressive" is based primarily on its view of the group's financial sponsor owner, Platinum Equity (Platinum), which owns 70% of Project Sunshine group. Under S&P's financial policy criteria, it has assigned a score of FS-5 (FS: financial sponsor). Mr. Draffin added: "The stable outlook reflects our expectation that Project Sunshine group will apply its strong free cash to reduce debt under the 75% cash flow sweep mechanism of the term loan and maintain adequate covenant headroom. This is despite our expectation of double-digit revenue declines over the next few years." A lowering of the long-term rating could occur if greater-than- expected structural earnings erosion causes Project Sunshine group's covenant headroom to fall below 15%, heightening liquidity pressures on the group. A downgrade could also occur if the company's debt-to-EBITDA ratio is sustained above 2x, lengthening the expected payback period of the debt facilities from internally generated cash flow. An upgrade is considered unlikely, but would be reliant on a material strengthening of the group's business risk profile, evidenced by earnings stabilization and growth, stable-to-growing market shares in its digital businesses, and strengthening free cash flow generation. SHOALHAVEN COMMERCIAL: Placed in Administration ----------------------------------------------- Gavin Moss and Nick Combis of Vincents Chartered Accountants were appointed as administrators of Shoalhaven Commercial Printers Pty Limited on Sept. 10, 2014. A first meeting of the creditors of the Company will be held at Vincents Chartered Accountants, Level 19, MLC Centre, 19-29 Martin Place, in Sydney, on Sept. 22, 2014, at 11:00 a.m. TLC PRINT: Perfectly Bound Buys Firm Out of Administration ---------------------------------------------------------- Nic White at ProPrint reports that the business and some assets of stricken Sydney laminating company TLC Print Finishing has been bought by nearby trade binder Perfectly Bound. ProPrint says TLC had been on the market for almost six months and said it was done in by the collapse of major client Focus Press in April, leaving it more than AUD175,000 out of pocket. With losses mounting, TLC ceased trading last month and was locked out of its Silverwater facility by landlord Goodman Australia when it could not pay the rent, ProPrint relates. The company subsequently entered voluntary administration through Cor Cordis on September 2, according to ProPrint. ProPrint notes that the buyout by Perfectly Bound means trade creditors may get some of their money back and employees will soon be able to get their entitlements from a Fair Entitlement Guarantee claim. ULTIMATE CREATIVE: Goes into Administration ------------------------------------------- Cliff Sanderson at Dissolve.com.au reports that Ultimate Creative Agencies Pty Limited has entered voluntary administration with Jirsch Sutherland's Roderick Sutherland and Daniel Civil being appointed as administrators of the company on September 4. A meeting with creditors is scheduled on September 16, the report says. ========= C H I N A ========= CHINA METALLURGICAL: 1H 2014 Results Supports Baa3 CFR ------------------------------------------------------ Moody's Investors Service says that China Metallurgical Group Corporation's (CMGC) improved 1H 2014 operating results continue to support its Baa3 corporate family rating, and the Ba1 senior unsecured bond rating for its guaranteed subsidiary, MCC Holding (Hong Kong) Corporation Limited. The ratings outlook remains stable. Metallurgical Corporation of China Ltd (MCC, unrated), a key subsidiary of CMGC, and which accounted for about 98% and about 97% of CMGC's total revenues and assets in 2013, announced that its revenue grew 5.5% year-on-year to RMB96 billion in 1H 2014. In addition, its adjusted EBITDA margin increased to 9.2% in 1H 2014 from 8.6% in 1H 2013. "MCC's improved earnings were within Moody's expectations, and were driven by the company's focus on profitable operations and cost controls," says Chenyi Lu, a Moody's Vice President and Senior Analyst. Given MCC's improving profitability, Moody's expects CMGC's adjusted EBITDA margin to improve to about 10% in 2014 from 9.7% in 2013. Moody's also expects CMGC's revenue to increase in the mid-single digits in 2014, because of the robust growth in its non- metallurgical infrastructure and real estate businesses. MCC's adjusted debt grew slightly to RMB141 billion at end-June 2014 from RMB137 billion at end-2013. As a result, Moody's estimates that CMGC's adjusted debt/EBITDA was at 7.3x for the 12 months ended 30 June 2014, which was similar to the 7.4x seen in 2013. Given the expected improvement in earnings and debt reduction stemming from asset sales, Moody's expects CMCG's adjusted debt/EBITDA to fall to about 7.0x over the next 12-18 months. This level of leverage is consistent with its baseline credit assessment of ba3. The principal methodology used in these ratings was Global Construction Methodology published in November 2010. Other methodologies used include the Government-Related Issuers: Methodology Update published in July 2010. China Metallurgical Group Corporation is engaged in the engineering and construction, equipment manufacturing, property development, and resources development businesses. Headquartered in Beijing, it is a central state-owned enterprise and is wholly owned by the State Council of China, and supervised by the State- owned Assets Supervision and Administration Commission. CITIC LTD: S&P Raises LT ICR From 'BB'; Outlook Stable ------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'BBB+' long-term and 'A-2' short-term foreign-currency issuer credit ratings on Chinese state-owned conglomerate CITIC Group Corp. and raised the long-term issuer credit rating on CITIC Ltd. (formerly known as CITIC Pacific Ltd.) to 'BBB+' from 'BB'. The outlook on both long-term ratings is stable. S&P also affirmed its 'cnA+' long-term and 'cnA-1' short-term Greater China regional scale ratings on CITIC Group and raised the long-term Greater China regional scale rating on CITIC Ltd. to 'cnA+' from 'cnBB+'. At the same time, S&P affirmed its 'BBB+' issue rating and 'cnA+' Greater China regional scale rating on CITIC Group's senior unsecured notes, and raised the rating on CITIC Ltd.'s outstanding senior unsecured notes to 'BBB+' from 'BB'. S&P also raised its long-term Greater China regional scale rating on CITIC Ltd.'s notes to 'cnA+' from 'cnBB+'. S&P removed all the ratings from CreditWatch. On April 17, 2014, the ratings on CITIC Group were placed on CreditWatch with developing implications and those on CITIC Ltd. were placed on CreditWatch with positive implications after the acquisition was announced. CITIC Pacific completed its reverse acquisition of 100% of CITIC Corp. from CITIC Group on Aug. 25, 2014. The rating affirmation on CITIC Group reflects the conglomerate's good business profile, its pressured but still adequate financial profile, and S&P's opinion that there remains a "very high" likelihood that the central government of the People's Republic of China would provide timely and sufficient extraordinary support to CITIC Group in the event of financial distress. "On a stand-alone basis, the rating reflects CITIC Group's solid market position in selected businesses, adequate liquidity, and adequate though weakened profitability and capitalization," said Standard & Poor's credit analyst Joseph Leung. "The company's high financial leverage at some of its key nonfinancial operations and volatilities in the financial performances of its cyclical businesses offset these strengths." The rating affirmation also reflects S&P's view that the reverse acquisition has an insignificant financial impact to the wider group. The group's cash position at the parent company level may have a one-off boost from the cash portion of the consideration that CITIC Ltd. raised through its share placement of Chinese renminbi (RMB) 42.3 billion to public investors. However, the group may distribute the proceeds as special dividends. "Even if the money is retained, its significance is diminished by a hefty stock of combined debts at the holding company level of CITIC Group, CITIC Ltd., and CITIC Corp., and possible further borrowings in the next 12 months. We estimate their combined debts at the holding company level to be close to RMB160 billion at the end of August 2014," Mr. Leung said. "The rating upgrade on CITIC Ltd. to equal that on CITIC Group reflects our view that their two credit profiles are indistinguishable, given substantial overlap of their assets and liabilities, management, and governance," said Standard & Poor's credit analyst Mr. Jian Cheng. CITIC Ltd. is now a 77.9%-owned intermediate holding company under CITIC Group, representing 98% of total assets of the wider group. S&P treats CITIC Ltd. as a "core" subsidiary of CITIC Group, in accordance with S&P's group rating methodology. S&P's ratings on CITIC Resources Holdings Ltd. (BB/Stable/--; cnBBB-) and CITIC Securities Co. Ltd. (BBB+/Stable/A-2; cnA+/cnA- 1) were not affected by the completion of the transaction. In S&P's group status assessment, CITIC Resources Holdings remains a "strategically important" subsidiary of CITIC Group. S&P continues to view CITIC Securities as an "insulated subsidiary" to CITIC Group, in accordance with its group rating methodology. The stable outlook on both ratings reflects S&P's view that CITIC Group's adequate business profile could offset its pressured financial profile and underpin the overall credit profile in the next two years. Specifically, S&P expects further improvement in CITIC Group's risk management and added transparency going forward. That said, the group's rapid expansion amid China's economic slowdown is hurting its financial metrics. China's manufacturing oversupply issue could also weigh on CITIC Group's financial performance. The outlook also reflects S&P's expectation that the likelihood of extraordinary government support will remain "very high." S&P believes a rating upgrade is unlikely in the next two years. It would necessitate broad-based improvement in the group's financial metrics, including substantially strengthened capitalization of its banking operations, significantly lower leverage in its nonfinancial operations, and sustained asset quality and earnings. S&P may lower the ratings if: (1) the financial strength of CITIC's banking arm weakens substantially, as denoted by a risk- adjusted capital ratio for CITIC Bank below 5%; or (2) significantly heightened credit losses leading to a weak risk position assessment of the bank; or (3) the combined EBITDA interest coverage ratio of CITIC Ltd. excluding the banking business is below 2X. EVERGROWING BANK: Faces $650 Million Default From Shadow Banking ---------------------------------------------------------------- Bloomberg News reports that a Chinese bank was saddled with $650 million of defaults from an off-balance-sheet lending arrangement that channeled money to one of its shareholders and an affiliate, according to a state media report. Evergrowing Bank Co. in Shandong province repaid CNY3.7 billion ($600 million) of principal and CNY300 million of interest on Aug. 29 as guarantor for the borrowing, the People's Daily said on its website on September 12. Bloomberg says intricate structures for some off-balance-sheet lending by China's banks make it harder for investors to assess risks to the financial system after an explosion in shadow banking. In some cases, banks have channeled money to companies through trusts or brokerages to bypass government limits on lending and requirements relating to provisions and capital, Bloomberg relates. "The regulators have been cracking down on off-balance-sheet lending and the latest credit data today show that that's having an effect," the report quotes Julian Evans-Pritchard, China economist for Capital Economics Ltd. in Singapore, as saying. He cited central-bank data showing net repayments in August for trust loans and bankers' acceptance bills, Bloomberg notes. Bloomberg relates that the People's Daily said Evergrowing Bank set up a "targeted asset-management plan" for shareholder Chengdu Mind Investment Co. and its affiliate to borrow from the Bank of Tianjin's Jinan branch and Tianjin Binhai Rural Commercial Bank using brokerages, trusts and banks as intermediaries. Evergrowing Bank acted as guarantor, agreeing to make repayment if the borrowers defaulted, the report, as cited by Bloomberg, said. United Overseas Bank Ltd., Southeast Asia's third-largest lender, owned 14 percent of Evergrowing Bank as of Dec. 31, Bloomberg discloses citing Evergrowing's annual report. According to Bloomberg, the People's Daily said the repayment obligation was the equivalent of 58 percent of Evergrowing Bank's net income in 2013. The People's Daily said Chengdu Mind Investment holds 3.3 percent of the bank's shares, Bloomberg relays. In May, the Chinese government ordered limits on interbank borrowing as part of checking growth in shadow banking, Bloomberg notes. A commercial bank should restrict such borrowing to less than a third of its liabilities, while its lending to another financial firm shouldn't exceed 50 percent of its Tier 1 capital, regulators said then, notes the report. FUFENG GROUP: Fitch Affirms BB- IDR; Outlook Stable --------------------------------------------------- Fitch Ratings has affirmed China-based food and beverage company Fufeng Group Limited's (Fufeng) Long-Term Issuer Default Rating (IDR) and senior unsecured debt at 'BB-'. The Outlook is Stable. The affirmation reflects Fufeng's stabilising monosodium glutamate (MSG) operation with a higher gross profit margin of 12.9% in 1H14 (9.8% in 1H13), faster deleveraging due to lower capex from 2014 and Fufeng's strong market position as the largest MSG and xanthan gum manufacturer globally. However the weakness of underlying demand for MSG and further margin contraction in the Xanthan gum segment due to new capacity coming on line will continue to challenge Fufeng's sales and margin recovery in the next 12 months. Key Rating Drivers MSG Stabilising but Challenge Remains: With the overcapacity in the MSG industry shrinking, gross profit margins in this segment bottomed out in 1H13 and recovered to the low teens in 1H14. Profitability was also helped by lower input costs in 1H14. However, demand is still not strong enough to support a robust recovery in MSG pricing. Prices in August 2014 reached CNY6,800/tonne from CNY6,115/tonne in 2Q14 because the top MSG producers, including Fufeng, coordinated to raise prices three times since May 2014. Xanthan Gum's Margin to Normalise: The xanthan gum segment's strong performance till 1H14 was mainly due to higher sales stemming from capacity expansion and wider margins as demand surpassed supply. As new supply comes into the market, Fitch expects gross profit margin to normalise to below 40% in 2015 (1H14: 55.6%). Lower Capex Drives Faster Deleveraging: Fufeng has significantly reduced its capex from 2014 and has indicated it does not plan further investments and acquisitions in the MSG and xanthan gum segments under current conditions. With the MSG segment stabilising and capex cut, Fitch expects Fufeng to start generating positive free cash flow (FCF) from 2014 and its FFO adjusted net leverage to fall below 2.0x by 2016 from 2.53x in 2013. Strong Market Position: Fufeng's integrated facilities and close proximity to raw materials (corn kernels and coal) give it cost advantages. It reaps economies of scale from its large capacity; it is the largest MSG and xanthan gum producer in the world in terms of capacity. Its low cost structure would make it resilient when selling prices drop due to market consolidation. No Immediate Liquidity Concern: Fufeng's has unrestricted cash of CNY824m (USD134m) and unutilised bank facilities of CNY1bn at end- June 2014, which is more than enough to cover its capex of CNY100m and repayment of some short-term borrowings in 2H14. Fitch expects Fufeng to be able to roll over the majority of its CNY1.54bn onshore short-term borrowings. Rating Sensitivities Negative: Future developments that may, individually or collectively, lead to negative rating action include: - EBITDA margin sustained below 10% (1H14: 16%) - FFO-adjusted net leverage above 3.0x on a sustained basis - Weakening liquidity profile - Loss of market leadership in the MSG business Positive: Future developments that may, individually or collectively, leads to positive rating action include: - FFO-adjusted net leverage below 2.0x on a sustained basis - EBITDA margin sustained above 15% - Sustained free cash flow generation - Evidence of pricing power in the MSG business LDK SOLAR: Files Schemes of Arrangement in Hong Kong ---------------------------------------------------- LDK Solar Co., Ltd., in provisional liquidation and its Joint Provisional Liquidators, Tammy Fu and Eleanor Fisher, both of Zolfo Cooper (Cayman) Limited, announced that, subsequent to the filing on Aug. 29, 2014, by the Company and its subsidiary, LDK Silicon & Chemical Technology Co., Ltd., of the petition to commence their restructuring proceedings in the Grand Court of the Cayman Islands, the Company, LDK Silicon and LDK Silicon Holding Co., Limited have each applied to file an originating summons to commence their restructuring proceedings in the High Court of Hong Kong. The Company is awaiting confirmation of the date of the first hearing before the Hong Kong Court. At that hearing, the Company, LDK Silicon, LDK Silicon Holding and the JPLs will seek orders to convene meetings of the scheme creditors of the Company, LDK Silicon and LDK Silicon Holding on or around Oct. 17, 2014, Hong Kong time, to consider and approve their respective Hong Kong schemes of arrangement. Similarly, the Company, LDK Silicon and the JPLs will seek orders to convene meetings of the scheme creditors of the Company and LDK Silicon on or around Oct. 16, 2014, Cayman Islands time, to consider and approve their respective Cayman Islands schemes of arrangement. On Sept. 5, 2014, the Company and LDK Silicon filed evidence in support of their application to the Cayman Court for orders convening meetings of their scheme creditors, including the proposed Explanatory Statement relating to the Cayman and Hong Kong schemes of arrangement. The Company also submitted a periodic report on Form 6-K to the U.S. Securities and Exchange Commission on Sept. 8, 2014, containing such Explanatory Statement. In addition, as a result of the resignation by Mr. Xiaofeng Peng, former Chairman of the Company, on Aug. 29, 2014, Mr. Xingxue Tong, current president and chief executive officer of the Company, has since assumed the Interim Chairman position during the transition period before a permanent Chairman is identified and appointed. To enhance the corporate governance of the Company during this interim period, the Board of Directors of the Company, with the consent of the JPLs, has established an interim executive committee, effective Sept. 4, 2014, to supervise and support the work of the Interim Chairman during the provisional liquidation of the Company and to be responsible and to report to the Board, subject to the authority of the JPLs as sanctioned by the Cayman Court. The Board also approved, with the consent of the JPLs, that the Executive Committee be composed of three existing members of the Board: (1) Mr. Zhibin Liu (director of Heng Rui Xin Energy (HK) Co., Limited, a major shareholder of the Company and an affiliate of the Xinyu City government), (2) Mr. Xingxue Tong (current president and chief executive officer of the Company), and (3) Mr. Shi Chen (member of the Board nominated by Fulai Investments Limited, a major shareholder of the Company). The Executive Committee is headed by Mr. Zhibin Liu and is subject to dissolution by the Board when a permanent Chairman of the Board has been identified and appointed. A copy of the proposed Explanatory Statement is available for free at http://is.gd/7KPRhG About LDK Solar LDK Solar Co., Ltd. -- http://www.ldksolar.com-- based in Hi- Tech Industrial Park, Xinyu City, Jiangxi Province, People's Republic of China, is a vertically integrated manufacturer of photovoltaic products, including high-quality and low-cost polysilicon, solar wafers, cells, modules, systems, power projects and solutions. LDK Solar was incorporated in the Cayman Islands on May 1, 2006, by LDK New Energy, a British Virgin Islands company wholly owned by Xiaofeng Peng, LDK's founder, chairman and chief executive officer, to acquire all of the equity interests in Jiangxi LDK Solar from Suzhou Liouxin Industry Co., Ltd., and Liouxin Industrial Limited. LDK Solar Co disclosed a net loss of $1.05 billion on $862.88 million of net sales for the year ended Dec. 31, 2012, as compared with a net loss of $608.95 million on $2.15 billion of net sales for the year ended Dec. 31, 2011. KPMG, in Hong Kong, China, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Group has a net working capital deficit and a deficit in total equity as of Dec. 31, 2012, and is restricted from incurring additional indebtedness as it has not met a financial covenant ratio as defined in the indenture governing the RMB-denominated US$-settled senior notes. These conditions raise substantial doubt about the Group's ability to continue as a going concern. WEST CHINA CEMENT: Fitch Rates US$400MM Sr. Unsec. Notes at BB- --------------------------------------------------------------- Fitch Ratings has assigned West China Cement Limited's (WCC; BB- /Negative) USD400 million 6.5% senior unsecured notes due 2019 a final rating of 'BB-'. The notes are issued by WCC and guaranteed by WCC's existing subsidiaries other than those organised under the laws of China. This final rating follows the receipt of documents conforming to information already received and is in line with the expected rating assigned on 28 August 2014. Key Rating Drivers Refinancing Drives Outlook Revision: WCC has USD400m (CNY2.47bn) of senior notes due January 2016 and CNY800m of onshore medium- term notes (MTN) due March 2016 that remain outstanding. The company intends to use the proceeds of the proposed notes to partly refinance the US dollar notes, which may be redeemed at 101.875% of the principal amount on or after January 25, 2015, or at 103.75% before that. In addition, WCC has another CNY800m of MTN that it can issue before March 2015 from its CNY1.6bn MTN programme that may be used for refinancing purposes. The Negative Outlook on WCC is driven by the refinancing risk the company faces for its outstanding debt. This will be resolved once WCC successfully refinances a majority of the debt due in 2016, and the Outlook may be revised back to Stable, if the company maintains its leverage ratio below 3.0x on a sustained basis. 1H14 Performance in Line: WCC's 1H14 average sales price (ASP) recovered slightly to CNY239/ton from CNY233/ton in 1H13, and drove gross profit up to CNY51/ton in 1H14 from CNY43/ton in 1H13. This has offset the slight drop of cement sales volume (7.98m tonnes in 1H14 from 8.16m tonnes in 1H13), and supports the company's steady cash flow generation. We expect WCC's financial leverage (measured by funds from operations (FFO) adjusted net leverage) to decrease in 2014 from 3.0x at end-2013. WCC's total borrowings at 30 June 2014 was CNY4.058bn (end-2013: CNY4.03bn), while gross margin was 19.3% for 1H14 (1H13: 17.6%). The steady profitability was underpinned by the steady ASP and a 6% drop in the price of thermal coal, which accounted for a major part of production cost. Steady Cash Flow Generation: WCC's steady cash flow generation is supported by stable demand for cement in Shaanxi, its core market, and the company's addition of annual capacity of 3.3m tonnes in Xinjiang and Guizhou, which will start operating in 2H14. Solid cement demand in Shaanxi province is supported by existing and new infrastructure construction projects for railways, water conservation and highways. This has offset the lower demand from housing construction activities during 1H14. Liquidity Not a Concern: At 30 June 2014, WCC had short-term borrowings of CNY744m and unrestricted cash of CNY615m. Fitch does not see liquidity as a concern for WCC, not only because of its cash and available bank facilities at hand, but also because its fixed assets may be used as collateral for further borrowing. Rating Sensitivities Negative: Future developments that may, individually or collectively, lead to negative rating action include: - Free cash flow (after acquisitions) turns negative - FFO adjusted net leverage rising above 3.0x on a sustained basis - Losing its dominant market position in southern Shaanxi province - Failure to secure refinancing for the 2016 debt repayment before maturity Positive: Future developments that may, individually or collectively, leads to positive rating action include: - Successfully refinancing the majority of debt due in 2016 - FFO adjusted net leverage remains below 3.0x on a sustained basis ========= I N D I A ========= ANGRISH ALLOYS: ICRA Puts B Rating on INR5.44cr Unallocated Loan ---------------------------------------------------------------- ICRA has assigned long term rating of [ICRA]B to the INR10.00 crores fund based limits and shot term rating of [ICRA]A4 to the INR1.00 crore non fund based limits (sub-limit within overall CC limit of INR4.00 crore) of Angrish Alloys and Steel Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-Based Limits 4.00 [ICRA]B assigned Cash Credit Term Loan 0.56 [ICRA]B assigned Unallocated 5.44 [ICRA]B assigned Non Fund-Based 1.00 [ICRA]A4 assigned Limits FLC The assigned rating takes into account the small scale operations of the business and the highly competitive nature of the business which has resulted in weak profitability in the past. The rating is also constrained by below average coverage indicators, high gearing levels and stretched liquidity position as evidenced by almost full utilisation of bank limits in the past. However the rating derives comfort from the long working experience of the promoters combined with healthy growth in the operating income in the past. Angrish Alloys and Steel Private Limited was incorporated in the year 1995 and is engaged in the manufacturing of castings of cast iron and the outer body of sewing machine and its parts. The company is promoted by Mr. Gulshan Angrish and Mr. Sandeep Angrish. The manufacturing facility of the company is located in village Ramgarh, Ludhiana in the state of Punjab with an installed capacity of 5500MT per annum. Recent Results In 2012-13 AASPL reported a net profit of INR0.10 crores on an operating income of INR19.92 crores against a net profit of INR0.10 crores on an operating income of INR17.47 crores in 2011- 2012. ANSHUL STEELS: CRISIL Suspends B Rating on INR160MM Cash Credit --------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Anshul Steels Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 10 CRISIL A4 Suspended Cash Credit 160 CRISIL B/Stable Suspended Letter of Credit 100 CRISIL A4 Suspended Proposed Long Term Bank Loan Facility 46 CRISIL B/Stable Suspended Term Loan 53 CRISIL B/Stable Suspended The suspension of ratings is on account of non-cooperation by ASL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, ASL is yet to provide adequate information to enable CRISIL to assess ASL'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' Incorporated in 2005, ASL is a closely held public limited company, engaged in manufacturing of sponge-iron and mild steel (MS) ingots. The Goa-based Mangal family acquired the entire stake in the company from the initial promoters in 2011-12. The Mangal family has been associated with the steel business for more than a decade, through Mangal Iron Pvt Ltd, based in Goa. Mr. Kushal Mangal and Mr. Anand Mangal, the two brothers, along with Mr. Rajiv Jain, a close business associate, look after the overall operations of the company. ANUGRAHA FASHION: CRISIL Suspends D Rating on INR318.6M Term Loan ----------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Anugraha Fashion Mill Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 33 CRISIL D Suspended Foreign Bill Purchase 100 CRISIL D Suspended Long Term Loan 318.6 CRISIL D Suspended Packing Credit 175 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by AFMPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, AFMPL is yet to provide adequate information to enable CRISIL to assess AFMPL'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 as a partnership firm (Fab-N-Fabrics) in 1988, AFMPL was reconstituted as a private limited company in October 2008. AFMPL, based in Tirupur (Tamil Nadu), manufactures and exports knitted garments. The company has vertically-integrated operations, with all processes, including spinning, knitting, processing, and garmenting being undertaken in-house. AUTOCREATE WHEELS: ICRA Assigns B Rating to INR16.6cr LT FB Loan ---------------------------------------------------------------- An [ICRA]B rating has been assigned to the INR16.60 crore long term fund based facilities of Autocreate Wheels Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term fund 16.60 [ICRA]B assigned based facilities The assigned ratings favourably take into account the experience of the promoters in the automobile industry and the healthy relations formed with the automobile manufacturers. The authorised dealership of Maruti Suzuki India Limited further strengthens the ratings. However, the company's operations are currently in the nascent stage with modest revenue turnover. Further, the financial profile is characterised by high debt and negative networth, resulting in a stress capital structure and stretched coverage indicators. The operating margins of the company remain constrained, as inherent in the auto dealer industry. The company is also susceptible to economic slowdown in the passenger vehicle market and overall performance of MSIL. The company ability to scale up revenues will remain a key rating sensitivity in the future. The promoters, Mr. Gurinder Singh Arora and his wife Mrs. Tarvinder Kaur Arora, founded the flagship company Autocreates (India) Pvt Ltd in 1991. The company was primarily engaged in the business of car financing and accessories. Further the company expanded its operations to end to end services for export logistics to Tata Motors, and currently has two authorised workshops for handling export and domestic vehicles in Panvel. In February 2011, the promoters founded Autocreate Wheels Pvt Ltd (AWPL), wholly owned by the promoters, as an authorised dealer of Maruti Suzuki India Limited (MSIL). The company deals in sale of new cars, repair and servicing of cars, sale of spare parts and accessories, and buying-refurbishing and sale of old cars. The company has its showroom, located in Andheri East, Mumbai. Recent Results For the twelve months ending March 31, 2014, AWPL reported a net loss of INR2.5 crore (provisional) on revenues of INR49.4 crore (provisional) as against a net loss of INR1.8 crore on revenues of INR56.5 crore for the twelve months ending March 31, 2013. BHARATH CEMENT: CRISIL Suspends B+ Rating on INR95MM Cash Credit ---------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Bharath Cement Products (RMC Division) (BCP-RMC; part of the Bharat group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit/ 95 CRISIL B+/Stable (Suspended) Overdraft facility Proposed Long Term Bank Loan Facility 5 CRISIL B+/Stable (Suspended) The suspension of ratings is on account of non-cooperation by BCP- RMC with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, BCP-RMC is yet to provide adequate information to enable CRISIL to assess BCP- RMC'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 BCP-RMC, Bharat Blue Metal (BBM), Bharat Cement Products (BCP), and BT Nagaraj Strong Crusher Works (BTN), together referred to as the Bharat group. This is because all these entities have a common management and strong business and financial linkages. BCP-RMC was set up in August 2008 by Mr. B T Nagaraj. The firm manufactures ready-mix concrete (RMC). BCP-RMC is a part of the Bharat group, which comprises other proprietorship firms set up by Mr. B T Nagaraj. These entities are primarily engaged in stone crushing and manufacturing of hollow bricks. COIRFOAM (INDIA): ICRA Reaffirms B+ Rating on INR6cr LT FB Loan --------------------------------------------------------------- ICRA has reaffirmed the long term rating of [ICRA]B+ to the INR6.00 crore long term fund based limits of Coirfoam (India) Pvt. Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Fund 6.00 [ICRA]B+ (reaffirmed) Based Limits The rating action takes into account the intensely competitive and low value additive nature of the mattress mfg. industry which has resulted in modest margins for the company in the past. Furthermore, low profitability coupled with high working capital requirements has resulted in high dependence of debt and moderate debt coverage indicators for the company. Nevertheless, the rating draws comfort from CIPL's experienced management, its long track record in the mattresses industry in India, its extensive distribution network and well-established brand image. Going forward, the company's ability to maintain its profitability in an intensely competitive industry and manage its working capital cycle effectively would form the key rating drivers. CIPL was constituted as a partnership firm in 1977 and was converted into a private limited company in June 1978. The firm, originally promoted by Agarwal family, was taken over by Mr. Inderjeet Khurana and Mr. Sukhdeep Khurana in 1997. CIPL is primarily involved in manufacturing of rubberised coir mattresses and has an installed capacity of 2500 MTPA. In addition, the company is also involved in trading of home products such as pillows, cushions, spring mattresses, blanket, bed sheet towel etc. Recent Results CIPL has reported a net profit (PAT) of INR0.28 crore on an operating income of INR52.42 crore in FY 2012-13 as compared to net profit (PAT) of INR0.71 crore on an operating income of INR50.32 crore in FY 2011-12. DADA GANPATI: ICRA Revises Rating on INR16cr LT Loan From B+ ------------------------------------------------------------ ICRA has upgraded the rating assigned to the INR3.0 Crore term loans and INR16.0 Crore long-term fund-based working capital limits of Dada Ganpati Guar Products Private Limited from [ICRA]B+ to [ICRA]BB-. ICRA has also reaffirmed the rating assigned to the INR1.0 Crore short-term non-fund based limits of DGGPPL at [ICRA]A4. The outlook on the long-term rating is Stable. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-Based limits- 16.0 Revised to [ICRA]BB- (Stable) Long Term scale from [ICRA]B+ Term Loan-Long 3.0 Revised to [ICRA]BB- (Stable) Term scale from [ICRA]B+ Non-Fund based 1.0 Reaffirmed at [ICRA]A4 Limits-Short term scale The rating upgrade reflects the healthy turnover by the company in FY14 post commencement of production from March 2013. The rating continue to be constrained by the high commodity price volatility in guar gum which could result in pressure on margins in the event of significant correction in prices; the low value addition; high fragmentation and high competitive intensity in the guar split manufacturing business resulting in thin profitability and high agro-climatic risks related to guar seed production. The rating, however, continues to favourably factors in the established track record of the firm in the guar gum business; favourable demand prospects for guar gum in the export market mainly for drilling applications in the oil and gas industry and the locational advantage of the company's manufacturing facility in terms of proximity to the main guar seed growing region. The significant fall in profits or high capital withdrawal adversely impacting capital structure and debt protection metrics would be the key rating sensitivities. Dada Ganpati Guar Products Private Ltd was formed in 2012 as private limited company. The company installed a plant in March 2013 for manufacturing of guar gum and by-products with guar gum powder manufacturing capacity of 7500 Tonnes per annum. It is a promoter family-driven entity, with its manufacturing plant located in Sirsa, Haryana. DISHA INDUSTRIES: ICRA Suspends B Rating on INR44.83cr FB Limits ---------------------------------------------------------------- ICRA has suspended [ICRA]B rating assigned to the INR44.83 crore fund based limits of Disha Industries Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. EXCELLENT POWER: ICRA Suspends B Rating on INR7.5cr FB Limits ------------------------------------------------------------- ICRA has suspended [ICRA]B rating assigned to the INR7.50 crore fund based limits of Excellent Power Cable Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. GUPTAS GOLD: ICRA Assigns 'B+' Rating to INR7cr Fund Based Limits ----------------------------------------------------------------- ICRA has assigned a long-term rating of [ICRA]B+ to INR7.00 crore fund based limits of Guptas Gold House. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based limits 7.00 [ICRA]B+ assigned The assigned rating is constrained by the small scale of operations in the jewellery retailing business; weak financial profile as reflected by low profitability, high gearing and modest coverage indicators and working capital intensive nature of the jewellery retailing business owing to high inventory requirement. The rating is also constrained by susceptibility of profitability to adverse movement in gold prices with no defined hedging policy in place and highly fragmented nature of the industry with increasing competition from organized retail players. The rating, however takes into account the long experience of the promoter in the jewellery retailing business; healthy growth in the operating income in the last two years and favorable demand prospect for the jewellery retail industry in India in medium term. Going forward, the firm's ability to scale up revenues while managing its working capital requirements are the key rating sensitivities from credit perspective. Established as a partnership firm in 1995, Guptas Gold house is engaged in retail sale of gold, silver and diamond ornaments. Till FY2013, the firm's store was located in Gandhi Road with a total area of 300 sq ft and in FY2014, the firm moved to a new store with a total area of 2500 sq ft in Ongole town. Mr. Raj Kumar is the managing partner who looks after the day to day operations of the firm. Recent Results The firm reported an operating income and profit of INR35.57 crore and 0.40 crore respectively in FY2014 (unaudited and provisional) as against an operating income and net profit of INR9.42 crore and INR0.06 crore respectively in FY2013. HARIPACK POLYMERS: CRISIL Reaffirms B INR50M Cash Credit Rating --------------------------------------------------------------- CRISIL's ratings on the bank facilities of Haripack Polymers Pvt Ltd (HPPL) continue to reflect HPPL's modest scale of operations in the intensely competitive polymer products trading business, customer concentration in its revenue profile, and its working- capital-intensive operations. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 50 CRISIL B/Stable (Reaffirmed) Letter of Credit 20 CRISIL A4 (Reaffirmed) The ratings also factor in the company's weak financial risk profile, marked by a modest net worth, a high total outside liabilities to tangible net worth ratio, and weak debt protection metrics. These rating weaknesses are partially offset by the extensive industry experience of HPPL's promoters through group entities. Outlook: Stable CRISIL believes that HPPL will continue to benefit over the medium term from its promoters' extensive experience in the polymer products industry. The outlook may be revised to 'Positive' if the company registers a significant and sustained growth in its revenue and margins, while it improves its capital structure. Conversely, the outlook may be revised to 'Negative' if HPPL's revenue and margins decline significantly, or if its working capital cycle lengthens further, leading to further weakening of its financial risk profile. HPPL was set up in 2012 by Mr. Dilip Murarka and his family members; it trades in polymer products such as polyvinyl chloride (PVC). The company imports these products from manufacturers in Saudi Arabia and Taiwan, and sells them to PVC pipes and plastics manufacturers in India. Its registered office is at Nagpur (Maharashtra). The Murarka family has been associated with the polymer products industry for around a decade. HRA PAPER: CRISIL Suspends 'D' Rating on INR160MM Term Loan ----------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of HRA Paper Mills Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 75 CRISIL D Suspended Term Loan 160 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by HRA with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, HRA is yet to provide adequate information to enable CRISIL to assess HRA'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'. HRA was incorporated in 2008 and is engaged in the manufacturing of WPP, newsprint paper and Kraft paper, with a capacity of 70 tonnes per day. The company's commercial production has started from May 2012. HRA was initially promoted by Mr. Ashish Mittal (42.5 per cent of equity) and Mr. Hiramani Aggarwal (57.5 per cent); however, the entire shareholding is currently with Mr. Ashish Mittal and his family. The day-to-day operations are handled by Mr. Ashish Mittal. IMMENSE PACKAGING: ICRA Assigns B- Rating to INR4.25cr Term Loan ---------------------------------------------------------------- ICRA has assigned [ICRA] B- rating to the INR4.25 crore term loan and INR8 crore fund based limits of Immense Packaging Private Limited. ICRA has also assigned [ICRA] B- rating to the INR4 crore provisional long term limits of IPPL. ICRA has assigned ICRA A4 to the INR3.75 crore short term non-fund based facilities of IPPL. The ratings are constrained by the company's small scale of operations, its low net profit margins, its modest debt protection metrics and stretched liquidity owing to delays in collection of receivables. The ratings also takes into account intensely competitive business environment and the risk associated with volatility in revenues in the tender driven business. ICRA however notes that the stringent prequalification norms set by state co- operative dairies limits the competition from new players to an extent and that the inclusion of price variation clauses in the tender contracts for PE film largely mitigates the raw material price risks. The ratings also favorably factor in the stable demand for PE film from the dairy industry, successful track record of the promoters in the PE film packaging business and the company's pre-qualification status with major state milk cooperative societies. Immense Packaging Private Limited (IPPL) was acquired in April 2007 by Mumbai based Mrs Lata Kela & her family members for setting up polyethylene film manufacturing facilities. The promoters have been in the flexi packaging business for the last two decades through their group entities and have developed relationships with several co-operative dairies based in Western, Northern and Southern India. The company set up its production unit at Tiruvallur, Tamil Nadu for manufacturing of multilayer polyethylene (PE) film used in liquid milk packaging. The annual production capacity is around 2400 TPA and it primarily caters to the demand of Tamil Nadu (TN) based state co-operative milk dairies. Prior to setting up the production unit at Tiruvallur, PE films were supplied from the promoters' other unit at Daman, which was closed post implementation of unit in TN. The benefits offered to local units in terms of 10% price preference, non-applicability of central sales tax and savings in freight cost were the key drivers for setting up the unit in TN. Recent Results During the period 2013-14, the company reported profit after tax of INR0.7 crore on a turnover of INR19.8 crore. KG PIPES: CRISIL Suspends D Rating on INR100MM Cash Credit ---------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of KG Pipes Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 10 CRISIL D Suspended Cash Credit 100 CRISIL D Suspended Letter of Credit 20 CRISIL D Suspended Standby Line of Credit 15 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by KGPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, KGPL is yet to provide adequate information to enable CRISIL to assess KGPL'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' KGPL, established in 2005, trades in galvanised pipes, seamless pipes, and hot-rolled coils and sheets. The company's overall operations are managed by Mr. Pradip Kumar Singhal and Mr. Krishna Gupta. M. P. INTERNATIONAL: ICRA Reaffirms B+ Rating on INR3cr FB Loan --------------------------------------------------------------- ICRA has reaffirmed the [ICRA]B+ rating to the INR3.00 crore (enhanced from INR1.50 crore) long-term fund based bank facility of M. P. International Private Limited. ICRA has also reaffirmed the [ICRA]A4 rating to the INR5.00 crore (enhanced from INR4.00 crore) short-term fund based bank facility of the company. Ratings of [ICRA]B+ and/or [ICRA]A4 have been reaffirmed for the INR2.00 crore (reduced from INR4.00 crore) unallocated bank facilities of the company. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term fund 3.00 [ICRA]B+ Reaffirmed based limits Short-term fund 5.00 [ICRA]A4 Reaffirmed based limits Unallocated limits 2.00 [ICRA]B+ and/or [ICRA]A4 Reaffirmed The reaffirmed ratings continue to remain constrained by M. P. International Private Limited's weak financial profile characterized by highly leveraged capital structure and consequently weak coverage indicators and nominal accruals. The ratings are also affected by the small scale operations of the company which prevents scale economies and high capital intensity of its operations, on account of stretched receivables, which adversely impacts liquidity profile. The ratings also factor in the susceptibility of the company's margins to volatility in foreign exchange rates in the absence of a formal hedging mechanism and also the intensely competitive nature of the bearings industry limiting pricing flexibility. The ratings, however, favourably factor in MPIPL's promoters' established experience in the ball bearings industry and the sustained growth in its turnover supported by stable demand and attributed to the wide usage of the ball bearings. Established in 1986, MPIPL is a closely held company engaged in the trading of ball bearings. The company imports as well as locally procures the bearings and supplies them in the domestic market. MPIPL has its registered office in Masjid, Mumbai. Recent Results For the year ended 31st March 2014, MPIPL recorded a net profit of INR0.18 crore on an operating income of INR24.26 crore as per its audited financials. MAHABIR POULTRY: CRISIL Suspends B Rating on INR32.8M Cash Credit ----------------------------------------------------------------- RISIL has suspended its ratings on the bank facilities of Mahabir Poultry & Breeding Farm (MPBF). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 32.8 CRISIL B/Stable Suspended Proposed Long Term 27.2 CRISIL B/Stable Suspended Bank Loan Facility Term Loan 25.2 CRISIL B/Stable Suspended The suspension of ratings is on account of non-cooperation by MPBF with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, MPBF is yet to provide adequate information to enable CRISIL to assess MPBF'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' Established in 1995 by Mr. Balbir Singh, MPBF is a proprietorship firm engaged in the poultry farming business ' in the hatchery and commercial layer chicks segment. The firm is based in Karnal (Haryana) and has parent bird capacity of 70,000 in the hatchery division and layer chick capacity of 75,000. Under the hatchery division, the firm sells day-old-chicks (DOC) to broiler farms, and under the layer chicks division, it sells eggs through dealers. MALLIKARJUN AGRO: CRISIL Suspends B+ Rating on INR185.3MM Loan -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Mallikarjun Agro Plants & Industries Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 110 CRISIL B+/Stable Suspended Long Term Loan 185.3 CRISIL B+/Stable Suspended The suspension of ratings is on account of non-cooperation by Mallikarjun with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, Mallikarjun is yet to provide adequate information to enable CRISIL to assess Mallikarjun'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'. Mallikarjun was established in July 2008 by Mr. Gurupada Sinha and his son Mr. Gautam Sinha. The company has integrated manufacturing facilities for a rice mill, solvent extraction plant and a power generation plant. The facilities are located in Paschim Midnapore, West Bengal. MANJU SHREE: ICRA Reaffirms B+ Rating on INR4.90cr FB Loan ---------------------------------------------------------- ICRA has reaffirmed long term rating assigned to the INR8.12 crore fund based limits of Manju Shree Syntex Private Limited at [ICRA]B+. Further ICRA has also reaffirmed the short term rating assigned to the INR0.75 crore non fund based limits of MSPL at [ICRA]A4. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based limits 4.90 [ICRA]B+ (reaffirmed) Term loans 3.22 [ICRA]B+ stable(reaffirmed) Non fund based limits 0.75 [ICRA]A4 (reaffirmed) The ratings reaffirmation favourably factors in MSPL's improved capital structure (Gearing reduced from 2.17x as on 31st March, 2013 to 1.71x as on 31st March, 2014) on account of equity infusion in FY14 and ongoing term loan repayments. The ratings continue to draw comfort from the extensive experience of the promoters in the textile industry, the favourable location of the weaving facilities lending easy accessibility to raw materials and processing houses. The ratings are however constrained by the slowdown in MSPL's revenue growth pursuant to sale of looms in Q1 FY14 as well as the decline in its profitability and return indicators given the increased dependence on outsourcing. The ratings also take into account the increased working capital intensity (NWC/OI rise from 36% in FY13 to 40% in FY14) owing to reduced credit period being availed from suppliers which has led to increased reliance on working capital borrowings. This apart, the ratings continue to factor in intense competition within the fragmented synthetic fabrics industry which limits the pricing power of the participants. ICRA notes that the company has deferred its capex plans to FY16 nevertheless the impact of such capex on MSPL's financial profile will be a rating sensitive factor. Going forward, MSPL's ability to improve its operating scale, revive profitability and efficiently manage its working capital cycle will be the key rating sensitivities. Recent results As per the audited figures provided by the company, in FY 2014 the company earned an operating income of INR22.2 crore and an OPBDIT of INR2.0 crore translating to an operating margin of 8.9%. The company's net profit in FY14 stood at INR0.2 crore leading to a net margin of 0.7%. As of March 31st 2014, the company had a net worth of INR5.3 crore. Incorporated in 2005 as a private limited company, Manju Shree Syntex Pvt. Ltd. is engaged in manufacturing of grey and finished fabric for suiting at its unit in Bhilwara for direct sales under its brand name "Spectrum" and "Da Vinchi" as well as on job-work basis for its clients. The company started its operations in 2007 by installing 20 Dornier looms. Thereafter, in 2009, the company installed 8 Sulzer double width looms while another 21 Sulzer looms (16 double width and 5 single width) were added in February 2012. In April 2013, the company sold off its 20 Dornier looms and at present it is operating with 29 Sulzer looms (5-single width and 24-double width). MARUDHAR FASHIONS: ICRA Ups Rating on INR7.69cr Term Loan to B+ --------------------------------------------------------------- ICRA has upgraded the long term rating from [ICRA]B to [ICRA]B+ and has reaffirmed the short term rating of [ICRA]A4 to the term loans, post shipment credit limits and untied limits aggregating to INR21.08 crore of Marudhar Fashions. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Term 7.69 [ICRA]B+ upgraded Loan Limits Fund Based Post 10.00 [ICRA]A4 reaffirmed Shipment Credit Limits Untied Limits 3.39 [ICRA]B+ upgraded/ [ICRA]A4 reaffirmed The long-term rating upgrade takes into account the improvement in the profitability indictors along with growth in its operating income in FY14 supported by higher volumes of lower end variety carpets sold. The firm has also diversified its revenue streams through foray into sale of woolen yarn and towels and setup of windmills. The ratings continue to favourably factor in the long standing experience of the partners in the carpet business and benefits derived from its sales and marketing arrangement through the presence of its subsidiary Kaleen, in various parts of the USA. The ratings, however, continue to be constrained by the firm's excessive dependence on sole customer and subsidiary, Kaleen Rugs Inc. (Kaleen), delays in collection from Kaleen has led to a stretched liquidity position for the firm. Further, the firm's operations are vulnerable to the demand prospects in the USA, while the profitability remains vulnerable to forex fluctuations and woolen yarn price fluctuations; however, backward integration through in-house spinning and dyeing activities are likely to provide cost benefits. ICRA notes that while the capital structure is comfortable at present, being a partnership concern, any significant capital withdrawals by the partners from the capital account could have a negative bearing on its gearing levels, going forward. Marudhar Fashions (MF) is a partnership firm established in 1989 and is involved in the manufacturing and export of hand-tufted variety and loom made woolen carpets, woolen yarn, towels and domestic sale of carpets. MF is also engaged in electricity generation operations and has 5 Wind Turbine Generators (WTG) in Dhulia, Sangli (Maharashtra) and Jodhpur, Bhiyan, Akal (Rajasthan). The firm has its registered office at Mumbai and a manufacturing facility at Mirzapur, Uttar Pradesh. The current partners of the firm are Mr. Radhesyam Rathi (20%), R.S. Rathi (HUF) (15%), Shivkishan Rathi Family Trust (35%) and Manmohan Rathi (HUF) (30%). Recent results MF has reported a net profit of INR0.58 crore on an operating income of INR17.91 crore for the year ending March 31, 2013 and a net profit of INR2.73 crore on an operating income of INR37.64 crore for the year ending March 31, 2014 (provisional). MATA RANI: CRISIL Suspends D Rating on INR120MM Cash Credit ----------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Mata Rani Impex Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 120 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by MRIPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, MRIPL is yet to provide adequate information to enable CRISIL to assess MRIPL'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'. MRIPL was set up in 2007 by Mr. Rakesh Kohli. It trades in electro-galvanised iron wire, solar products, and mobile accessories imported from China. MERIDIAN EXTRUSIONS: ICRA Rates INR24cr Proposed Loan at 'B' ------------------------------------------------------------ ICRA has assigned the long-term rating of [ICRA]B to the INR24.00 crore proposed limits of Meridian Extrusions Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Proposed Limits 24.00 [ICRA]B assigned The assigned rating is constrained by the project execution risks that are inherent in a green field project given that project is still at a nascent stage of implementation augmenting the possibilities of cost and time overrun while financial closure for the project is yet to be achieved. The ratings are further factors in the vulnerability of the company's profitability post- commissioning, to the fluctuations in the raw material prices given low bargaining power with supplier. The ratings also take into account the highly competitive woven sack industry with presence of large established organized as well as unorganized players resulting in limited pricing flexibility. The ratings also consider the possible stress on the financial profile given the debt funded nature of the project. The ratings, however, favourably take into account the experience of the promoters in the woven sack industry and positive growth prospects of HDPE and PP woven sacks owing to increased diversification from jute bags packaging across industry segments like food grain, sugar, vegetables, etc. Incorporated in April 2013, Meridian Extrusions Private Limited is in the process of setting up of manufacturing facility for HDPF and PP woven sack fabric and woven sack bags with annual production capacity of 6,500 MTPA. The promoters have been involved in the woven sack industry since many years through trading of woven sack bags and have forayed in manufacturing segment considering the favorable demand prospects for the same in India. NAVEEN COTTON: CRISIL Suspends B- Rating on INR150MM Cash Credit ---------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Naveen Cotton Mills Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 150 CRISIL B-/Stable Suspended Letter of Credit 15 CRISIL A4 Suspended Proposed Cash Credit 8.9 CRISIL B-/Stable Suspended Limit Term Loan 145.8 CRISIL B-/Stable Suspended The suspension of ratings is on account of non-cooperation by Naveen Cotton with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, Naveen Cotton is yet to provide adequate information to enable CRISIL to assess Naveen Cotton'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' Naveen Cotton was set up by Mr. R Anandh in 2005 in Tirupur (Tamil Nadu). The company manufactures low-count cotton yarn of 20s, 25s, and 30s counts. NEW PALSANA: ICRA Lowers Rating on INR49cr Term Loan to 'D' ----------------------------------------------------------- ICRA has revised the long term rating assigned to INR49.00 crore term loan facility of New Palsana Industrial Co-Op Society Ltd from [ICRA]B+ to [ICRA]D. ICRA has also revised the short term rating assigned to NPICSL's INR20.00 crore short term non-fund based facilities from [ICRA]A4 to [ICRA]D. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loan 49.00 Downgraded to [ICRA]D Bank Guarantee 20.00 Downgraded to [ICRA]D The revision in ratings reflects the instances of delays in debt servicing by the company in the last six months, owing to delays in project execution by NPICSL which has constrained the liquidity position of the society to service its debt obligations. Going ahead, timely payments of member's overhead contribution will remain critical, given the uncertainty associated with joining of new members and flexibility of withdrawal for existing memberships. Further, the ratings are constricted on account of its revenues being vulnerable to cyclicality associated with the textile industry and its exposure to changing environmental regulations which could impact liquidity of the society. However, the ratings draw comfort with necessary bank funding & government subsidies in place for the proposed project and financial support to the society in terms of corporate guarantee provided by its current members. The ratings also positively consider the relatively lower operating costs for a CETP as compared to individual treatment plants, which could attract additional members to join the society bringing down the members' overhead costs per unit. New Palsana Industrial Co-Op Society Limited is an organization promoted by the members of New Palsana Industrial Assocaition for the purpose of development of common effluent treatment plant for management of waste water generated by the member units during manufacturing process. Currently, there are 15 members of the society, who are primarily small and medium scale dyeing and printing units located in the vicinity of the plant situated at Baleshwar (Palsana, Gujarat). The proposed plant has a capacity to process 45 million liters of waste water in a day. PASHANKAR AUTO: CRISIL Suspends B+ Rating on INR160MM Cash Credit ----------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Pashankar Auto Wheels Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 160 CRISIL B+/Stable Suspended Term Loan 120 CRISIL B+/Stable Suspended The suspension of ratings is on account of non-cooperation by PAWPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, PAWPL is yet to provide adequate information to enable CRISIL to assess PAWPL'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'. Incorporated in 2004, PAWPL is an authorised dealer for Chevrolet in Pune. PAWPL operates through four showrooms (two owned and two leased). It has, in the recent past, also undertaken a real estate project involving construction of four floors on top of its showroom in Baner (Pune), of which three floors have been sold while the fourth floor has been leased out. In February 2012, the company leased the fourth floor (20,000 square feet) of its building to Alfa Laval for five years at a monthly rental of INR0.68 million. PAWPL also operates three service centres in Pune and Chinchwad (Maharashtra). POLYLON FABRICS: CRISIL Suspends B- Rating on INR250M Cash Credit ----------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Polylon Fabrics Pvt Ltd (PFPL; part of the Polylon Group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 250 CRISIL B-/Stable Suspended Proposed Long Term 15 CRISIL B-/Stable Suspended Bank Loan Facility Term Loan 150 CRISIL B-/Stable Suspended The suspension of ratings is on account of non-cooperation by PFPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, PFPL is yet to provide adequate information to enable CRISIL to assess PFPL'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' PFPL is a private limited company and was incorporated in September 2011, promoted by Mr. Amit Kumar. The company is involved in printing of fabrics and manufacturing of zips. The other two entities in the group are Polylon Industries engaged in the manufacturing and marketing of narrow fabrics and Polylon Textiles which is engaged in manufacturing of Polar fabrics. POWER CABLE: ICRA Suspends B Rating on INR7.5cr Fund Based Limits ----------------------------------------------------------------- ICRA has suspended [ICRA]B rating assigned to the INR7.50 crore fund based limits of M/s Power Cable Industries. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. RANK SILICON: ICRA Suspends B+ Rating on INR10cr Fund Based Loan ---------------------------------------------------------------- ICRA has suspended the [ICRA]B+ rating assigned to the INR10.00 crore fund based limits of Rank Silicon & Industries Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. S&P STRUCTURALS: ICRA Assigns B+ Rating to INR2cr Cash Credit ------------------------------------------------------------- ICRA has assigned a long term rating of [ICRA]B+ to the INR2.00 long term fund based bank facilities of S&P Structurals Private Limited. ICRA has also assigned a rating of [ICRA]B+ and [ICRA]A4 to the INR2.95 crore bank guarantee and INR3.05 crore proposed limits. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Scale- Cash Credit 2.00 [ICRA]B+ assigned Long Term/Short Term Scale-Bank Guarantee 2.95 [ICRA]B+/[ICRA]A4 assigned Long Term/Short 3.05 [ICRA]B+/[ICRA]A4 assigned Term Scale- Unallocated The ratings assigned takes into account the experience of the company and the promoters in the implementation of transmission line and sub-station projects and the established track record of undertaking projects for Karnataka Power Transmission Corporation Limited. The company has pre-qualification status to bid up to 220kV transmission lines and 110kV sub-stations. ICRA also notes the comfortable order book for FY15, which provides visibility on revenues. The ratings are, however, constrained by the high working capital requirements in the business as the billing and payments are milestone based with relatively long project lead times. The delays in project execution due to external factors such as land acquisition issues lead to cost and time over runs and further stretching of working capital cycle. This has impacted the liquidity position of the company as reflected in the consistently high utilization of fund based limits. ICRA also notes that the company's margins are vulnerable to input cost fluctuations; however, this is mitigated by the price variation clauses for certain materials as per the contracts. Going forward the company's ability to manage the working capital requirements and maintain fresh order inflows will be the key rating sensitivity. S&P Structurals Private Limited was incorporated in 2007 with the merger of S&P Constructions and Mahesh Engineering Constructions which were partnership firms in the business of construction and commissioning of high power transmission lines and sub-stations since 1989 and 1995 respectively. The company executes works for Karnataka Power Transmission Corporation Limited and other private companies as turnkey and sub-contractors and has commissioned projects of various voltages ranging from 66kV to 220 kV transmission lines (single, double and multi circuit lines) and 110kV and 220kV sub-stations. SHRI BALAJI: ICRA Reaffirms B Rating on INR65cr Fund Based Limit ---------------------------------------------------------------- ICRA has reaffirmed the long term rating of [ICRA]B to the INR80.00 Crore fund based bank lines (including proposed limit of INR15 crore) of Shri Balaji Sugars and Chemicals Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limit 65.00 [ICRA]B reaffirmed Proposed Fund 15.00 [ICRA]B reaffirmed Based Limit The reaffirmation of the rating factors in the time over run in project implementation on account of delay in receiving cane area allotment, which was received in September 2013 leading to a delay of around 7 months in implementing the project though currently the project is at an advanced stage of completion. The rating also takes into consideration the regulated nature of the sugar sector as evident from cane pricing and export policy and exposure of players to agro climatic risk. ICRA takes note of the high working capital intensity inherent to sugar business and leveraged planned funding of the project with debt repayment starting from September 2015 thus BSCPL's ability to generate cash profits is limited to the upcoming sugar year. Also, company's ability to timely tie up working capital funding would also be critical. However the rating draws comfort from location attractiveness of the project as its command area already has well developed cane area, and from experience and standing of the promoters and key management personnel in the command area of the plant and in commissioning and operating sugar plants. Also, forward integrated nature of BSCPL's operations with cogeneration would provide some support to profitability during sugar downturn. The rating also considers the low project funding risk with debt and equity tie ups in place and the equity tied up has already been infused. Shri Balaji Sugars and Chemicals Private Limited, incorporated in 2011 and is setting up a 3500 TCD sugar plant in Bijapur district in North Karnataka. The manufacturing facility is being set up in two phases; first phase comprising 3500 tcd sugar mill and 18 MW cogeneration plant and the second phase comprising a 45 klpd distillery. While the first phase is expected to be commissioned in November 2014, the second phase is likely to get commissioned in November 2015. SK OVERSEAS: ICRA Assigns 'B' Rating to INR3.0cr Fund Based Loan ---------------------------------------------------------------- ICRA has assigned the rating of [ICRA]B on the long term scale to the INR3.00 crore fund based limits and INR2.50 crore term loan of SK Overseas. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limits 3.00 [ICRA]B assigned Term Loan 2.50 [ICRA]B assigned The assigned rating takes into consideration the firm's limited track record of operations with commercial operation of its facility commencing in January 2014, its working capital intensive nature of operations, and its stretched capital structure owing to debt-funded capex to set up its 3 tons per hour rice milling unit. The rating also factors in the intensely competitive nature of industry which exerts pressure on operating margins and vulnerability of profitability to any adverse change in Government policies towards agro based commodities like rice. The rating, however, derives comfort from the favourable long term demand prospects of the rice industry with India being the second largest producer and consumer of rice in the world, SKO's presence in a rice cultivation area which results in easy access to paddy and the long track record of promoters in the rice trading business. S.K. Overseas (SKO) is a partnership firm engaged in milling and processing of Basmati Rice with an installed capacity of 3 MT per hour (milling and sorting). SKO's milling unit is based out of Karnal, Haryana, in close proximity to the local grain market. The firm was incorporated by Mr. Krishna Chand in 2013 and commenced operations in January, 2014. In FY 2013-14, SK Overseas reported an operating income (OI) of INR8.19 crore and profit after tax (PAT) of INR0.01 crore. SP SUPERFINE: ICRA Upgrades Rating on INR82.12cr Term Loan to 'C' ----------------------------------------------------------------- ICRA has upgraded the long-term rating outstanding on the INR82.12 crore (revised from INR93.58 crore) term loan facilities, INR8.00 crore fund based facilities and INR11.46 crore (revised from nil) proposed facilities of SP Superfine Cotton Mills Private Limited to [ICRA]C from [ICRA]D. ICRA has also upgraded the short-term rating outstanding on the INR1.88 crore non-fund based facilities of the Company to [ICRA]A4 from [ICRA]D. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term: Term loans 82.12 [ICRA]C/upgraded from [ICRA]D Long Term: Fund based 8.00 [ICRA]C/upgraded from Facilities [ICRA]D Long Term: Proposed 11.46 [ICRA]C/upgraded from facilities [ICRA]D Short Term: Non-fund 1.88 [ICRA]A4/upgraded from based facilities [ICRA]D The rating action takes into consideration the regularization in debt servicing by the Company aided by equity infusions by the promoters, easing of debt servicing obligations following the restructuring in January 2013 and marginal improvement in the Company's cash flows. The ratings are, however, constrained by the high repayment obligation of INR7.9 crore in the current fiscal and INR6.0 crore each in the subsequent two fiscals in the context of a modest financial risk profile characterized by net losses over the past three fiscals resulting in accumulated losses and weak debt metrics. The ratings are further constrained by the Company's small scale of operations and limited pricing flexibility. While the management does not plan any significant capital expenditure in the medium term, its ability to successfully arrange for external funding (as is being proposed) to meet its financial needs while improving its accruals from operations will be key sensitivities to the rating. SP Superfine Cotton Mills Private Limited, incorporated in 1995, is located in Attur, Tamil Nadu and is closely held by its directors and family members. The Company is engaged in the production of cotton yarn, in 40s to 80s count range, and started its commercial production with an installed capacity of 14,112 spindles. Over the years, the company has increased its installed capacities in a phased manner and presently has an installed capacity of 28,224 spindles. Recent Results According to the unaudited financials, the Company reported a net loss of INR3.0 crore on an operating income of INR49.2 crore during 2013-14 as against a net loss of INR3.9 crore on an operating income of INR34.5 crore during 2012-13. SUKRUTA AGENCIES: CRISIL Suspends INR80M Overdraft Loan B+ Rating ----------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Sukruta Agencies. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 5 CRISIL A4 Suspended Long Term Loan 20 CRISIL B+/Stable Suspended Overdraft Facility 80 CRISIL B+/Stable Suspended Proposed Long Term 15 CRISIL B+/Stable Suspended Bank Loan Facility The suspension of ratings is on account of non-cooperation by SA with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SA is yet to provide adequate information to enable CRISIL to assess SA'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' Established in 1966, SA is engaged in trading of pumps, valves, water treatment and solar water heaters among others. The firm is managed by Mr. Gopinath and his family. TILE ITALIA: ICRA Suspends 'B' Rating on INR7cr Fund Based Loan --------------------------------------------------------------- ICRA has suspended the long term rating of [ICRA]B assigned to the INR7.00 Crore fund based limits and short-term rating of [ICRA]A4 assigned to the INR6.00 crore non-fund based facilities of Tile Italia Mosaics Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. The company was established in 1981 and was initially engaged into manufacturing of tiles under the name Basant Tiles. From 1996 onwards, the company diversified into imported marbles and since then is catering to the needs of the real estate industry. The company imports marble from many countries and sells the same to wide customer base mainly located in Bangalore and to limited extent in Chennai. The company is an exclusive distributor of Technistone for India, a high performance quartz surface company imported from Europe. TRAVANCORE COCHIN: ICRA Rates INR20cr LT Fund Based Loan at 'B' --------------------------------------------------------------- ICRA has assigned the [ICRA]B rating to INR9.0 crore enhanced long term fund based facilities of The Travancore Cochin Chemicals Limited and [ICRA]A4 rating to INR2.0 crore enhanced short term non fund based facilities of TCC. ICRA also has [ICRA]B rating outstanding on INR11.0 crore long term fund based facilities and [ICRA]A4 rating outstanding on INR1.0 crore short term fund based facilities and the INR7.0 crore short term non fund based facilities of TCC. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term, fund 20.0 [ICRA]B assigned/ outstanding based limits Short-term, fund 1.0 [ICRA]A4 outstanding based limits Short-term, non- 9.0 [ICRA]A4 assigned/ outstanding fund based limits The assignment of the ratings reflects the company's continuing adverse financial position with stressed cash flows leading to continued defaults in state loan repayments, weak profitability, low net worth and significant contingent liabilities. While, ICRA takes note of the revenue growth and margin improvement witnessed during 4m FY15, on the back of improvement in realization and increase in off-take from key customers; the ratings remain constrained by the high cost structure in chlor-alkali operations of the company due to lack of access to cost effective power, the inherent cyclicality in the chlor-alkali industry, vulnerability of profitability to import duty levels and exchange fluctuations. However, the ratings favorably factor the company's established track record in the chlor-alkali business in Kerala as it is the sole caustic soda manufacturer with reputed customer profile and the implicit financial support from GoKL, being a state level PSU. ICRA also takes note of the changes being considered in the restructuring scheme earlier proposed by Government, to settle the Company's outstanding dues against Gov't agencies and additional funds to be provided to TCC for expansion, in the form of grants. The developments on this front will be monitored and clarity on the proposals and implementation of the scheme will be crucial from a credit perspective and is a key rating sensitivity. The Travancore Cochin Chemicals Ltd is a state-level public sector undertaking owned by Government of Kerala (GoKL) and its entities situated at Udyogamandal, Cochin. The company was originally started as Travancore & Mettur Chemical Co (TMCC) in 1949 as a partnership between FACT Limited and Mettur Chemical & Industrial Corporation Limited. In 1960, the Government of Kerala (GoKL) acquired TMCC and it was renamed The Travancore Cochin Chemicals Limited. TCC manufactures basic industrial chemicals viz., Caustic Soda and Chlorine products. The current licensed capacity of TCC is 175 tpd (tons per day) of caustic soda. For FY 2014, the company reported a turnover and PAT of INR163.7 crore and INR-3.6 crore. TRIVENI SMELTERS: ICRA Reaffirms B+ Rating on INR7.5cr Cash Loan ---------------------------------------------------------------- ICRA has reaffirmed the long term rating of [ICRA]B+ assigned to the INR2.84 crore term loan and INR7.50 crore cash credit facilities of Triveni Smelters Private Limited. ICRA has also reaffirmed the [ICRA]A4 rating to the INR3.50 crore non-fund based facility of TSPL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limit- 7.50 [ICRA]B+ reaffirmed Cash Credit Fund Based Limit- 2.84 [ICRA]B+ reaffirmed Term Loan Non Fund Based Limit- 3.50 [ICRA]A4 reaffirmed Letter of Credit The reaffirmation of the ratings factor in TSPL's weak financial profile characterized by low net profit margin and depressed level of coverage indicators. The ratings continue to be impacted by the ongoing weakness and cyclicality inherent in the steel industry, which are likely to keep the company's margins and cash flows volatile, and the highly competitive business environment coupled with lack of vertical integration in its operations that keeps margins under check. While assigning the ratings, ICRA also takes note of the concentrated customer profile of the company with nearly 50% of the company's revenue is derived from its top three customers in 2013-14. The ratings, however, derive comfort from the experience of the promoters in the steel industry and favourable location of the manufacturing unit with close proximity to key raw materials as well as customer's base. ICRA notes that the top-line of the company has consistently increased during the past two years, owing to healthy capacity utilization and repeat orders from top few customers. Incorporated in 2009, TSPL is promoted by the Sharaf family who has been associated with similar business line for more than a decade through other group entities. TSPL is primarily engaged in manufacturing MS ingots with an installed capacity 36,900 TPA (tonnes per annum). The manufacturing facility of the company is located in Fatwah, Bihar. Recent Results For the year ended 31st March 2014, the company has reported an operating income of INR111.56 crore with profit after tax (PAT) of INR0.92 crore as compared to an operating income of INR102.90 crore with a PAT of INR48 crore during 2012-13. U.S. AGRAWAL: ICRA Reaffirms B Rating on INR6.5cr Cash Credit ------------------------------------------------------------- ICRA has re-affirmed the [ICRA]B ratings for the INR6.50 crore, long term bank facilities of U.S. Agrawal & Co. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 6.50 [ICRA]B Re-affirmed The rating reaffirmation takes into account the established track record of U.S. Agrawal & Co. (USAC) of about three decades as a dealer of Hero Moto Corp Limited (HMCL), the largest player in the two wheeler segment in India. The rating also factors in favourably the experience of the promoters in the dealership business and the support provided by them in the form of unsecured loans. The ratings are, however, constrained by the firm's moderate scale of operations, thin operating margin and weak financial risk profile as a result of large working capital borrowings, inherent in the dealership business. The ratings are also constrained owing to weak demand conditions in the domestic markets (attributed to high prevailing interest rates and fuel prices). ICRA also takes note of the high competitive pressure in the two-wheeler business and the firm's low bargaining power with pricing and margins largely determined by HMCL. The same is expected to strain cash accruals in the near term amidst weak demand conditions in the domestic market. The firm's ability to increase scale of operations and improve its financial risk profile will remain key rating sensitivities going forward. USAC was established in 1986 and has been operating as a Hero Motocorp Limited dealership since its inception. The firm started its operations from its outlet located at Sigra in Varanasi. Going on, the firm has gradually increased its market presence and currently operates out of 10 other outlets located in interior regions of Chitaipur, Sindura, Aayer, Ramnagar, Chandauli, Kamalpur, Soipur, Dharsana, Chaubeypur and Bhojopur. All the facilities of the firm are 3S facilities. In addition, the firm has also appointed 10 sub-dealers, which account for 32% of the sales of the firm. The proprietor of the firm Mr U.S. Agrawal has over three decades of experience in the automobile sales and service industry and is assisted by his son, Mr. Kushagra Agrawal in the day to day operations of the dealership. Recent Results The firm reported an operating income of INR56.4 crore in FY14 as against an operating income of INR51.9 crore reported by it in FY13. VARDHMAN POLYTEX: ICRA Cuts Rating on INR464cr LT FB Loan to D -------------------------------------------------------------- ICRA has revised the long term rating from [ICRA]C+ to [ICRA]D for INR464.00 crore (enhanced from INR236 crore) long term fund based limits of Vardhman Polytex Limited. The Rating Committee of ICRA has also revised the short-term rating from [ICRA]A4 to [ICRA]D for INR50.00 crore non-fund based limits of VPL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term fund 464.00 [ICRA]D, Downgraded based facilities Short term non- 50.00 [ICRA]D, Downgraded fund based facilities The ratings revision takes into account irregularity in debt repayments as scheduled in the Corporate Debt Restructuring (CDR) scheme due to delay in cash inflow from sale of land as directed in the scheme. Instead of selling the land, the company has chosen to monetise the land by launching an integrated real estate project on the land, which is likely to result in infusion of long term funds that are higher than what would have been realised by sale of just land. However this has resulted in timing mismatch between the scheduled debt repayment and cash inflow from the project and hence delays in debt servicing. The working capital term loan-1 (WCTL-1) sanctioned as part of CDR was scheduled to be fully repaid by June 30, 2014 from the land sale proceeds, a part of which was outstanding as on August 2014. The ratings are also constrained on account of VPL's relatively large investments in subsidiaries which are in losses and hence depressing return indicators. While the promoters have supported the group companies in the past through equity infusion, however the group will continue to rely on funding support from promoters. Further, ICRA also notes that it will be challenging for the company to maintain the profitability levels in FY2015 compared to FY2014 given the pressure on yarn realisation due to slowdown in export markets, leading to pricing pressures in domestic markets too. The rating continues to remain constrained on account of cotton yarn being a commoditised product and high competitive intensity of spinning industry owing to its fragmented nature, which will continue to remain as key deterrent for sustaining high levels of profitability in long term. The ratings are however supported by promoters experience in line of business, established sales network and track record of high capacity utilisation of VPL's spinning facilities. Going forward, ICRA expects VPL's profitability and cash accruals from operations in FY2015 to be lower than FY2014 levels due to pressure on yarn demand and realisation in the domestic as well as export markets. With scheduled ballooning of loan repayments coupled with large repayment of WCTL-1 in FY15, ability of the company to accelerate the proceeds from land monetisation/arrange new funding tie-ups and timely funding support from promoters will remain critical for regularising debt repayments and compliance with the terms of CDR package and hence will remain key rating sensitivities. VPL, part of the Ludhiana (Punjab) based "Oswal" group is engaged primarily in manufacturing cotton yarn, with installed capacity of 195,024 spindles and a dye house with installed capacity of 15 tons of yarn per day. In the last few years, VPL has made three major investments: Oswal Retail Private Limited (ORPL), Oswal F M Hammerle Textiles Limited (OFMH) (rated [ICRA]D) and a foreign acquisition. VPL suffered huge losses in ORPL & overseas acquisition and subsequently, their operations had to be discontinued. OFMH implemented a Greenfield project for manufacturing yarn dyed shirting fabric but suffered significant cost and time overruns. The project commissioned manufacturing in July 2008 when the economic scenario was not conductive to business growth and term loans had to be rescheduled twice before concluding the corporate debt restructuring exercise during 2010- 11. In the past VPL has written off large part of investments, still there is significant diminution in the value of remaining investments. VENKATA NAGA: ICRA Reaffirms B+ Rating on INR9cr Cash Credit ------------------------------------------------------------ ICRA has reaffirmed the long term rating of [ICRA]B+ assigned to INR11.72 crore fund based limits of Venkata Naga Lakshmi Paper Mills Private Limited. ICRA has also reaffirmed the ratings of [ICRA]B+/[ICRA]A4 assigned to INR13.28 crore unallocated limits of VNLPMPL. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 9.00 [ICRA]B+ reaffirmed Term loan 2.72 [ICRA]B+ reaffirmed Unallocated 13.28 [ICRA]B+/[ICRA]A4 reaffirmed The reaffirmation of ratings factors in the modest financial profile of the company characterized by small scale of operations, high gearing and moderate coverage indicators. This apart, the ratings are also constrained by thin profitability margins of the company which remain exposed to volatility of waste paper prices. The ratings, however, favorably factor in long presence of the promoters in paper and packaging industry, well- established client network and healthy revenue growth(although on a low base) of the company. Going forward, the ability of the company to strengthen its financial profile and efficiently manage its working capital requirements remains the key rating sensitivity. Venkata Naga Lakshmi Paper Mills Private Limited was incorporated by Mr. V. Mangapathi Raju in 2003 and is into manufacturing of Kraft Paper. The company supplies Kraft paper which is used in manufacturing of cartons used for packaging of FMCG products, Eggs, Aqua food etc. The company currently has a manufacturing unit of installed capacity of 60 MTPD in Unguturu, West Godavari District. Recent Results For FY2014 (Unaudited & Provisional), the company reported profit after tax of INR0.47 crore on operating income of INR30.28 crore as against profit after tax of INR0.38 crore on operating income of INR27.00 crore in FY2013(audited). VISHWANATH PAPER: ICRA Ups Rating on INR20cr FB Limits to B+ ------------------------------------------------------------ ICRA has revised the ratings for the INR25.0 crore fund based limits (enhanced from 16.0 crore) of Vishwanath Paper & Boards Limited from [ICRA]B- to [ICRA]B+. ICRA has also reaffirmed the ratings for INR20.0 crore (enhanced from 16.0 crore) non fund based Limits of VPBL at [ICRA]A4. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limits 20.00 [ICRA]B+ (upgraded) Fund Based-Term Loan 5.00 [ICRA]B+ (assigned) Non Fund based limits 20.00 [ICRA]A4 (reaffirmed) The rating action takes into account the continued timely servicing of debt obligations by the company, and improvement in capacity utilization levels which have led to healthy accruals as a result of which gearing of the company has come down from 2.47 times in FY 2012 to 1.75 times in FY2014. However the rating continues to be constrained by the company's presence in a single product segment, i.e. kraft paper (largely used for making cartons and packaging boxes), which is amongst the lower end of the various paper product segments; its modest size of operations and highly fragmented industry structure. Moreover the contribution levels and profitability margins of the company remain exposed to any volatility in waste paper prices. The rating however favourably takes into account strong operational profile of the company marked by a steady growth in operating income and expansion in production capacity of the manufacturing unit. Vishwanath Paper and Boards Ltd established in 2008 is a manufacturer of kraft paper from recyclable waste paper. The company was promoted by Mr Pankaj Gupta. The shares of the company are closely held by promoters and family. VPBL has expanded its production capacity from 50000MTPA to 60000 MT p.a. in July, 2012. The unit is located at Kashipur, Uttarakhand. Recent Results VPBL has reported a net profit (PAT) of INR3.26 crore on an operating income of INR140.27 crore in FY 2013-14 as compared to net profit (PAT) of INR2.73 crore on an operating income of INR129.93 crore in FY 2011-12. WARM FORGINGS: ICRA Reaffirms B- Rating on INR9.50cr Cash Credit ---------------------------------------------------------------- ICRA has reaffirmed the long-term rating of [ICRA]B- to the INR9.70 Crore long term fund based bank facilities of Warm Forgings private Limited. ICRA has also reaffirmed the short term rating of [ICRA]A4 to the INR4.50 Crores non-fund based facilities of WFPL. ICRA has also reaffirmed the [ICRA]B-/[ICRA]A4 rating for INR3.10 crore unallocated limits of Warm Forgings Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loan 0.20 [ICRA]B- reaffirmed Cash Credit 9.50 [ICRA]B- reaffirmed Bank Guarantee 0.50 [ICRA]A4 reaffirmed ILC/FLC(DA/DP) 4.00 [ICRA]A4 reaffirmed Unallocated 3.10 [ICRA]B-/[ICRA]A4 reaffirmed The ratings reaffirmation takes into account the long experience of the promoters in the forgings business and the funding support provided by them in the form of capital and unsecured loans. The ratings however continue to be constrained by the low bargaining power of the company and its vulnerability to raw material price volatility given limited ability to pass on the price increases. The ratings are also constrained by the company's tight liquidity position as reflected by fully utilized bank limits and its moderate financial risk which is likely to weaken due to proposed debt funded capex plans. WFPL's ability to improve its financial risk profile and generate sufficient cash flows to meet its present and future debt servicing obligations would be the key rating sensitivities going forward. Warm Forgings Private Limited (formerly, CNC Automotive Private Limited was incorporated in 1999, and promoted by Mr. Amit Rajput. In 2005, CNC Engineers, a proprietorship firm of Mr. Rajput was merged with WFPL. The company manufactures products related to gears for two-wheelers such as wheel hubs, gear blanks (forged and turned), sliding clutches, rotors and pulleys at its facilities located in Bhiwadi (Rajasthan). The products manufactured are of various sizes and shapes as per the requirement of customers. In order to focus on the four-wheeler market, Mr. Amit Rajput established Warm Gears Private Limited (WGPL), which was incorporated in 2005. However the company commenced its commercial production only in July 2010. WGPL manufactures bevel gears and other gear products for the four- wheeler market. Earlier till the receipt of TS Certificate WGPL was marketing its products through WFPL, however the WGPL had recently received the TS certificate and going forward will be selling its products independently. Its facilities are also located in Bhiwadi (Rajasthan). Recent Results As per the provisional figures for the FY14, WFPL reported a profit after tax (PAT) of INR2.5 crores on net sales of INR113.1 crores as against a PAT of INR1.7 crores on net sales of INR134.9 crores for the complete year FY13. WITTY AUTO: ICRA Cuts Rating on INR5cr Term Loan to 'D' ------------------------------------------------------- ICRA has downgraded the rating for INR8.00 crore bank facilities of Witty Auto Engineering Private Limited to [ICRA]D from [ICRA]B- Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limits 3.00 [ICRA]D downgraded Term Loans 5.00 [ICRA]D downgraded The revision in rating reflects delays in debt servicing by the company owing to tight liquidity conditions due to slow ramp up in capacity utilization and hence revenues. The revenues in FY2014 were much lower than that envisaged at project stage, leading to significantly lower cash generation. This coupled with blockage of funds in working capital has led to full utilization of sanctioned working capital limits with frequent instances of over- utilization. The ratings are also constrained by the company's weak financial profile characterized by a leveraged capital structure and stretched debt coverage indicators, The rating also remains constrained owing to the company's limited track record of operations and intense competition resulting in limited bargaining power and pricing flexibility. Going forward, timely debt servicing and the ability of the company to increase its revenues and add new customers would be the key rating sensitivities. Witty Auto Engineering Private Limited was incorporated in the year 2008 by Mr. Suresh Tyagi, Mr. Vinod Kumar Tyagi and Sunil Kumar Tyagi and its unit is located in Alwar. However, the company started commercial operations in December 2011. WAEPL is engaged in the manufacturing of auto components for ancillaries of established automobile OEMs. WAEPL also carries out job work for these ancillaries. Recent Results For FY2013, the company achieved an operating income of INR2.04 crore and reported a net loss of INR0.89 crore. For FY2014, the company has achieved an operating income of INR3.29 crore as per the provisional results. ==================== N E W Z E A L A N D ==================== BULLET FREIGHT: Still Owes More Than NZ$18MM to Creditors --------------------------------------------------------- Richard Meadows at Stuff.co.nz reports that the 185 former staff of Bullet Freight Systems have been paid out by receivers, but the failed freight firm still owes more than NZ$18 million to its creditors. The nationwide logistics company was placed in receivership on July 4, at the request of company director Paul Elliott. According to Stuff.co.nz, the first receivers report, by PPB Advisory, reveals it first engaged with 61 interested parties in New Zealand and Australia to try to sell the business as a going concern. However, it did not receive any viable offers. That left 185 staff out of a job, with roughly NZ$900,000 of holiday and redundancy pay owing. Stuff.co.nz relates that First Union organiser Rudd Hughes, who attended the July meetings when employees were given the news, said he understood that money had been paid out earlier this month. With a shortage of drivers in the Auckland region, Mr. Hughes said many staff had been able to find new jobs, albeit not always in fulltime positions, Stuff.co.nz relays. "A lot of it's been part-time work and casualised work," the report quotes Mr. Hughes as saying. "You know what today's work force is like." While the receivers confirmed employees had been paid out, many other creditors are unlikely to be paid, Stuff.co.nz notes. The company's bank, ANZ, is owed NZ$15.4 million, while some 412 unsecured creditors are owed NZ$2.6 million, according to Stuff.co.nz. "Given the likely shortfall to the bank, it is unlikely there will be sufficient funds to make a distribution to unsecured creditors," the receivers, as cited by Stuff.co.nz, wrote. The IRD has yet to stake its claim, which will take precedence over others, Stuff.co.nz relays. According to Stuff.co.nz, receivers said they had recovered NZ$3.6 million from the company's debtors, with more likely to come, and had raised NZ$86,000 through plant and equipment sales. A sale-and-purchase agreement has been signed for the company's fleet of roughly 200 vehicles, although the details are confidential, Stuff.co.nz notes. David Webb, John Larner, and Nicholas Martin of PPB NZ Ltd were appointed as receivers of the company on July 5. Bullet Freight is a logistics company. The company has seven branches throughout New Zealand. Bullet Freight Systems had depots in Auckland, Hamilton, Wellington, Nelson, Blenheim, Christchurch and Dunedin. Other companies in the group include Strait Freight and Strait Linehaul, which are also in receivership. ==================== S O U T H K O R E A ==================== KB FINANCIAL: FSC to File Complaint With Prosecution vs. Head ------------------------------------------------------------- Yonhap News reports that South Korea's financial watchdog plans to lodge a complaint with the prosecution against the head of KB Financial Group Inc. this week, citing his management failures, officials said on September 13. According to Yonhap, the Financial Services Commission (FSC) on September 12 suspended Lim Young-rok, the chairman of KB Financial Group, for management lapse, saying that his failure to properly handle internal affairs over the group's selection of a new computer system constitutes an act of negligence. Yonhap relates that the penalty, the second-highest among five tiers that the FSC can hand down to officials of financial institutions, requires three months of suspension, followed by immediate resignation. Mr. Lim refused to step down and pledged to take legal action against the FSC decision, says Yonhap. Yonhap adds that the FSC and its executive body, the Financial Supervisory Service, held an emergency meeting earlier on September 12 to discuss the issue. It later decided to lodge a criminal complaint against Mr. Lim and others allegedly involved in illegal or improper activities in the process of changing a new computer system in its banking unit Kookmin Bank, the news agency adds. ================ S R I L A N K A ================ NATIONAL SAVINGS BANK: Fitch Rates 2019 US$ Notes Issue BB- ----------------------------------------------------------- Fitch Ratings has assigned Sri Lanka-based National Savings Bank's (NSB; BB-/Stable) issue of US dollar-denominated notes due 2019 a final rating of 'BB-'. This follows the receipt of final documents conforming to information previously received. The final rating is at the same level as the expected rating assigned on 2 September 2014. The notes have a maturity of five years and an annual coupon of 5.15% that will be paid on a semi-annual basis. NSB intends to use the proceeds for lending to state-owned entities and government- related projects. Key Rating Drivers The notes are rated at the same level as NSB's Long-Term Foreign- Currency Issuer Default Rating (IDR) of 'BB-' as they constitute unsecured and unsubordinated obligations of the bank. Rating Sensitivities Any change to Sri Lanka's rating ('BB-) or to the perception of state support to NSB could result in a change in NSB's IDRs and hence the rating of the notes. NSB's ratings are: Long-Term Foreign Currency IDR: 'BB-'; Outlook Stable Long-Term Local Currency IDR: 'BB-'; Outlook Stable Short-Term Foreign Currency IDR: 'B' Support Rating: '3' Support Rating Floor: 'BB-' US dollar senior unsecured notes: 'BB-' National Long-Term Rating: 'AAA(lka)'; Outlook Stable ********* 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 ***