/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/140918.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, September 18, 2014, Vol. 17, No. 185 Headlines A U S T R A L I A APN NEWS: S&P Withdraws 'B+' Rating on Proposed Sr. Unsec. Notes GOOD PUB: In Administration; First Meeting Set Sept. 26 MUSWELLBROOK FAIR: Receivers Sell Two Shopping Centers PUBLISHERS AUSTRALIA: Moore Stephens Appointed as Administrators SOUTHERN BARRAMUNDI: Farm Put Up for Sale VAN EYK: Questions Abound Over Cast Of Shareholder Characters C H I N A CIFI HOLDINGS: Fitch Raises IDR From 'B+'; Outlook Stable GEELY AUTOMOBILE: S&P Assigns 'BB+' LT Corp. Credit Rating WUZHOU INTERNATIONAL: Fitch Affirms 'B' IDR; Outlook Stable I N D I A AGRASHA ALLOYS: CRISIL Suspends B- Rating on INR54MM Bank Loan AIRFLOW EQUIPMENTS: CRISIL Suspends D Rating on INR121MM Loan ANJANEYA JEWELLERY: CRISIL Assigns B+ Rating to INR150MM Loan B.R. INDUSTRIES: ICRA Suspends B Rating on INR8.5cr Bank Limits BENITO CERAMIC: CRISIL Assigns B- Rating to INR50MM Term Loan BHUWANESHWAR REFINERIES: CRISIL Suspends B+ Rating on INR35M Loan CAIRO INT'L: ICRA Reaffirms B/A4 Rating on INR21.35cr Loan CHAMUNDI DISTILLERIES: CRISIL Rates INR120MM Cash Credit at 'D' CHAWLA INT'L: CRISIL Puts B+ Rating on INR45MM Bill Discounting CREATIVE LOOMS: CRISIL Reaffirms B Rating on INR115MM Term Loan ELTUS COMMODITIES: CARE Reaffirms B Rating on INR15cr Bank Loan FINFOOT LIFESTYLE: CARE Assigns B+ Rating to INR12.75cr Bank Loan G. S. PROMOTERS: CRISIL Suspends B Rating on INR200MM Loan G V GOD: CRISIL Reaffirms B+ Rating on INR50MM Cash Credit GUJU ADS: CRISIL Suspends B- Rating on INR137.2MM Term Loan HANUMANT FOUNDATION: ICRA Suspends B+ Rating on INR59.5cr LT Loan HORIZON POLYMERS: CRISIL Cuts Rating on INR120MM Cash Credit to B JAIN UDHAY: CRISIL Cuts Rating on INR116.1MM Term Loan to 'D' JAYSHREE CHEMICALS: ICRA Cuts Rating on INR83.8cr Term Loan to D KAMAL CED: CRISIL Suspends B+ Rating on INR45MM Term Loan KHANDELWAL AGENCIES: CRISIL Suspends B Rating on INR85MM Loan KHOKAN MOTORS: CRISIL Suspends B+ Rating on INR50MM Channel Loan KRIDHAN INFRA: CRISIL Suspends B- Rating on INR20MM Cash Credit MADHAV COTTON: CARE Revises Rating on INR7.33cr Bank Loan to 'B+' MULTIPLAST POLYMER: CRISIL Suspends D Rating on INR65MM Term Loan MUTHOOT AUTO: CRISIL Cuts Rating on INR50MM Funding Loan to B+ POWER MAX: CRISIL Ups Rating on INR130MM Cash Credit to 'C' PRECISION ENGINEERING: CRISIL Reaffirms B- Rating on INR110M Loan PRIME URBAN: CRISIL Reaffirms B Rating on INR250M Export Bill ROADLINES CORP: CRISIL Suspends C Rating on INR98M Overdraft Loan SANRAA MEDIA: CRISIL Suspends D Rating on INR150MM Overdraft Loan SHRI VISHNU: CRISIL Suspends D Rating on INR300MM Cash Credit SLV SPINNING: CRISIL Reaffirms B Rating on INR172MM Term Loan SMILAX LABORATORIES: CARE Ups Rating on INR68.2cr Loan From B SRI CHANDRA: CRISIL Reaffirms B+ Rating on INR100MM Cash Credit SRI KAILASANADHA: CRISIL Assigns B+ Rating to INR90.4MM Term Loan SYNERGY GREEN: CRISIL Reaffirms D Rating on INR110MM Cash Credit T.C. SPINNERS: ICRA Assigns B+ Rating to INR24.03cr LT Loan TRADEWEL CONSTRUCTION: ICRA Withdraws 'D' Rating on INR7cr Loan USHA SPINNERS: CRISIL Ups Rating on INR70MM Cash Credit to B+ UTTORON ENGINEERING: ICRA Puts B+ Rating on INR3.4cr Cash Credit VIRAJ STEEL: CRISIL Suspends D Rating on INR1.23BB Term Loan YEGNA MANOJAVAM: CRISIL Cuts Rating on INR210MM Cash Credit to D J A P A N SHARP CORP: S&P Revises Outlook on 'B+' LT CCR to Stable M A L A Y S I A MALAYSIA AIRLINES: MH17 Families Denied Full Compensation N E W Z E A L A N D BRIDGECORP LTD: Receivers Squeezed Out NZ$4MM For Investors NEW ZEALAND POST: S&P Cuts Rating on NZ$200MM Sub. Notes to BB+ S I N G A P O R E VIVA INDUSTRIAL: S&P Revises Outlook to Neg. and Affirms BB+ CCR S R I L A N K A AMW CAPITAL: Fitch Affirms 'BB-(lka)' Rating; Outlook Stable PEOPLE'S LEASING: Fitch Affirms 'B+' IDRs; Outlook Stable - - - - - ================= A U S T R A L I A ================= APN NEWS: S&P Withdraws 'B+' Rating on Proposed Sr. Unsec. Notes ---------------------------------------------------------------- Standard & Poor's Ratings Services had withdrawn its 'B+' issue rating on APN News & Media Ltd.'s (APN) proposed senior unsecured notes, which were to be issued by its wholly-owned subsidiary Biffin Pty Ltd. At the same time, S&P lowered the ratings on APN's senior secured bank facilities to 'BB' from 'BB+' and the recovery rating to '4' from '2'. The borrowers are Biffin Pty Ltd and other subsidiaries, which are wholly-owned and are guaranteed by APN. The rating actions follow APN's decision that it will not proceed with the proposed bond issuance. The recovery rating of '4' and long-term rating of 'BB' on APN's senior secured bank facilities now reflect the full bank loan amount of AUD630 million. Previously, S&P had expected that all of the proceeds from the issue would be used to repay APN's outstanding debt and to cancel certain commitments under the senior secured bank facility. GOOD PUB: In Administration; First Meeting Set Sept. 26 ------------------------------------------------------- Daniel Ivan Cvitanovic of DCW Insolvency Management was appointed as administrator of The Good Pub Australia Pty Limited, trading as The Sly Fox Hotel, on Sept. 16, 2014. A first meeting of the creditors of the Company will be held at DCW Insolvency Management, Suite 1, 151 Tongarra Road, in Albion Park, New South Wales, on Sept. 26, 2014, at 10:00 a.m. MUSWELLBROOK FAIR: Receivers Sell Two Shopping Centers ------------------------------------------------------ Cliff Sanderson at Dissolve.com.au reports that shopping centres Scone Village and Muswellbrook Fair Shopping Centre in NSW's upper Hunter Valley are being sold separately or together by receivers PPB Advisory. Dissolve.com.au says Coles anchors the Muswellbrook Centre which is leased until 2027. The centre's other tenants include Best and Less, the Reject Shop and Harvey Norman. Meanwhile, Scone Village is the town's primary shopping centre which has 405 sqm of lettable area. It is anchored by ANZ, Coles, Icebox liquoro and Discount Drug Store, the report relates. According to the report, the centres were under the control of PPB Advisory eleven months ago due to a loan to value covenant issue. On October 15, expressions of interest will close and PPB is hoping a buyer can be sought by Christmas, the report notes. PUBLISHERS AUSTRALIA: Moore Stephens Appointed as Administrators ---------------------------------------------------------------- Michael Charles Hird -- mhird@moorestephens.com.au -- of Moore Stephens Sydney was appointed as administrator of Publishers Australia on Sept. 15, 2014. A first meeting of the creditors of the Company will be held at the offices of Moore Stephens Sydney, Level 15, 135 King Street, in Sydney, New South Wales, on Sept. 25, 2014, at 3:00 p.m. SOUTHERN BARRAMUNDI: Farm Put Up for Sale ----------------------------------------- Cliff Sanderson at Dissolve.com.au reports that receivers of Southern Barramundi have put the barramundi farm up for sale. The farm entered receivership in August under Ferrier Hodgson, the report says. The farm was founded in 1991. Farmer Steve Mawer acquired it 2003 with a partner producing 1.5 tonnes of fish every week. The farm includes 5 aquaculture sheds that range from 270 sqm to 310 sqm, storage facilities and offices as well as water and aquaculture licences. Colliers International's Jesse Manuel -- jesse.manuel@colliers.com -- and Tim Altschwager -- tim.altschwager@colliers.com -- are selling the property, the report notes. VAN EYK: Questions Abound Over Cast Of Shareholder Characters ------------------------------------------------------------- The Australian reports that investors, an administrator and a number of regulators were on September 16 poring over the wreckage of Van Eyk Research, which collapsed on September 15, taking what had been about AUD20 million worth of shareholders' funds with it. The Australian relates that the group, which started life as a Sydney-based research house then made an ill-fated move into funds management about five years ago, was brought down by one specific AUD31 million investment in Britain, but questions are now being asked about several other unusual circumstances surrounding the group, including finding out exactly who some of the shareholders are. Van Eyk is 36 per cent owned by listed group Australasian Wealth Investors, but AWI's attempts to get to 50 per cent were stymied when about eight months ago two investor groups bought a total of almost 29 per cent from interests associated with George Kerr, the Kiwi investor whose Pyne Gould group owned Van Eyk from 2010 to early 2013, according to The Australian. The Australian says Mr. Kerr had owned a convertible note, which he exercised and then sold the shares variously to Fleming SG Capital, a Perth-based investor, which took up 4.8 per cent of the company's capital, and TAA Melbourne, which took up 5.5 million shares or 24 per cent of Van Eyk's capital. It is not clear who was behind the purchases or where the money came from. No illegality is alleged, the report notes. On August 6, Van Eyk was forced to admit to investors that one of the Van Eyk funds, the Blueprint International Shares Fund, was illiquid and the group subsequently collapsed because of an AUD800 million run on the various Van Eyk Blueprint funds, The Australian recalls. However, on August 18, Ben Heap, the chief executive of AWI, sent a letter to Van Eyk chief executive Mark Thomas, which he also circulated to the other 35 shareholders in Van Eyk, asking among other things whether any fund managed by Van Eyk had invested "directly or indirectly" in Van Eyk, "or provided funding to any entity or individual for the purposes of an investment" in Van Eyk, The Australian relates. Companies are not allowed to use their own money to buy shares in themselves except in specific cases such as share buybacks, notes The Australian. The Australian relates that Mr. Thomas responded to three of the four questions posed but not to that one, although no subsequent questioning on that issue has come to light. The initial Van Eyk whodunit, finding out what happened to the AUD31 million investment by the Van Eyk Blueprint International Shares Fund in mid-2012, has at least been significantly unravelled by the man who until 2013 controlled Van Eyk, London based Kiwi investor Mr. Kerr, who told The Australian on September 15 that the AUD31 million had effectively been divided into two parcels by Artefact Group, a hedge fund owned and run by fellow Kiwi Richard Boon. One was used to buy a string of 110 newspapers in Britain called Local World, while the other parcel of roughly equal size was invested in a George Kerr deal in Australia and NZ, which involved buying debt at a discounted price from embattled financier Bank of Scotland International, says The Australian. Neither investment was going to be easy to liquidate, as Van Eyk has said it had stipulated, while Mr Kerr said it had been a simple matter of Van Eyk investing in a hedge fund, Artefact Partners. "There was no mandate," he told The Australian from London. According to the report, the effect of the AUD31 million investment was effectively to paralyse the Van Eyk International Shares Fund, which had had about AUD130m in it when the investment was made, but which by the end of 2013 had, for unrelated reasons, dropped in size to below AUD100m. By the end of last week, Macquarie Investment Management, the funds' responsible entity, had repaid investors almost all the AUD800m they had put into 13 of the funds, the only exception being the AUD31m Artefact parcel, The Australian notes. The Australian relates that Mr. Kerr said contrary to some suggestions, the parcel invested in the southern hemisphere was not used to pay off a loan he'd arranged from a New Zealand company he controlled, Perpetual, and which in March 2012 had attracted the interest of the Financial Market Authority in New Zealand because it was a less than arm's length transaction. That loan was used to help his company, Torchlight, buy a AUD200m line of debt owed by a cash-strapped Australian listed company, RCL, to Bank of Scotland International, which had been caught out by the GFC, the report relays. The Australian notes that Torchlight was able to repay a AUD28m loan to Perpetual on July 25, 2012, which was shortly after Van Eyk had sent the AUD31m investment over to Artefact in London. Mr. Kerr told The Australian Artefact had not invested the money directly in repaying the Perpetual loan. He said the repayment had been made "pretty much directly from real estate sales inside RCL", which Mr. Kerr had forced into administration in February 2012 because Torchlight was a priority creditor, The Australian relates. He conceded that what he called the co-investors' funds, which The Australian understands to include some AUD15m of the AUD31m Artefact parcel, "were either used to complete the acquisition from Bank of Scotland International or inject working capital to replace funds used to repay Perpetual". As reported in the Troubled Company Reporter-Asia Pacific on Sept. 17, 2014, SmartCompany said that an Australian investment research, advice and funds management company founded in 1989 has collapsed. van Eyk Research called in voluntary administrator Trent Hancock of Moore Stephens Sydney Corporate Recovery Group on September 15. According to the report, van Eyk Research has four business arms -- investment research through van Eyk Research, consulting through van Eyk Consulting, financial advisory through van Eyk Advice and funds management through van Eyk Blueprint Series -- and the administrators said in a statement it entered administration because of the "recent and sudden closure of the Blueprint Series of managed funds". ========= C H I N A ========= CIFI HOLDINGS: Fitch Raises IDR From 'B+'; Outlook Stable --------------------------------------------------------- Fitch Ratings has upgraded Chinese property developer CIFI Holdings (Group) Co. Ltd.'s (CIFI) Long-Term Foreign-Currency Issuer Default Rating (IDR) and senior unsecured rating to 'BB-' from 'B+'. The Outlook is Stable. The upgrade reflects CIFI's strong sales performance and turnover in 1H14, and the developer's ability to maintain its scale and profitability under difficult market conditions. The Stable Outlook is a reflection that its leverage is likely to stay healthy at end-2014 following a mild increase in mid-2014. KEY RATING DRIVERS Sustainability of Scale: Fitch estimates CIFI's attributable contracted sales rose 21% y-o-y in 1H14 to more than CNY8.5bn despite China's property market downturn. The company also maintained healthy sales turnover at 1.1x of last twelve months (LTM) contracted sales/total debt or 0.8x of LTM contracted sales/adjusted inventory. The sales efficiency reflects the company's greater resilience in different market conditions compared with lower-rated peers. Stabilising Leverage: CIFI's net debt/adjusted inventory increased to around 42% at mid-2014 from 33% at end-2013, mainly due to a CNY3.5bn payment of committed land premium. However, its leverage is likely to be below 40% at end-2014, largely because of the relatively small committed land premium payment of CNY1.9bn and higher cash collection from contracted sales for the rest of the year. Improved EBITDA Margin: CIFI's high asset turnover and product types kept its EBITDA margin at the low end among its peers. However, Fitch expects a gradual increase in contracted average selling price (ASP) to CNY12,000/sqm in 1H14 from below CNY10,000/sqm two years ago and a bigger share for office sales in its product mix, which may improve the EBITDA margin to around 20% in the next 12 months. Focus on Higher-Tier Cities: CIFI has a diversified presence in the Yangtze River Delta, Bohai Economic Rim, and Central Western Region, reducing its exposure to uncertainties inherent in local policies and local economies while providing room to scale up. With around 90% of attributable land bank in first- and second- tier cities at mid-2014, the company is less exposed to housing oversupply in lower-tier cities. Substantial JV: CIFI has 9.5m sqm of gross floor area (GFA) of total land bank, but only around 80% of the GFA is attributable to the company as many of the acquisitions were made through joint ventures. Fitch believes the company will continue to form joint ventures with other developers in the next 24 months to avoid competition that could inflate land prices and to reduce the burden of having to pay land premiums. RATING SENSITIVITIES Positive: Future developments that may, individually or collectively, lead to positive rating action include: -- Annual attributable contracted sales rising above CNY30bn with a healthy financial profile and the current product mix -- Maintaining the current strategy of high cash-flow turnover, such that contracted sales/total debt is sustained at over 1.3x -- EBITDA margin over 20% on a sustained basis Negative: Future developments that may, individually or collectively, lead to negative rating action include: -- Substantial decrease in scale from 2014, or contracted sales/ total debt falling below 1x on a sustained basis -- EBITDA margin declining to 15% or lower -- Net debt to adjusted net inventory rising towards 45% on a sustained basis -- Deviation from the current fast churn-out and high cash- flow turnover business model GEELY AUTOMOBILE: S&P Assigns 'BB+' LT Corp. Credit Rating ---------------------------------------------------------- Standard & Poor's Ratings Services said it had assigned its 'BB+' long-term corporate credit rating to Geely Automobile Holdings Ltd. (Geely Auto). The outlook is stable. "At the same time, we assigned our 'cnBBB+' long-term Greater China regional scale rating to the company. We also assigned our 'BB+' long-term issue rating and 'cnBBB+' Greater China regional scale issue rating to the company's proposed U.S.-dollar-denominated senior unsecured notes," said S&P. The rating on Geely Auto reflects the 'bb+' group credit profile of its parent Zhejiang Geely Holding Group Co. Ltd. (Geely Holding, the group). S&P considers Geely Auto to be a "core" subsidiary of the group. The company plays a critical role in the group's growth strategy, and benefits from its operational integration and name association with its parent. "Geely Holding's group credit profile reflects its weak market share relative to global peers and a somewhat narrow product line," said Standard & Poor's credit analyst Sangyun Han. In addition, another of the group's key subsidiaries Geely Sweden AB (Volvo Cars) has weaker profitability than the industry average. The group's moderate debt leverage and good cost controls temper these weaknesses, in S&P's view. "We expect Geely Holding's market position to remain weak over the next two years. Nevertheless, operational integration and technology sharing within the group should improve its cost position and product competitiveness, in our view," S&P related. S&P added, "Growing competition from larger international peers could pressure Geely Holding's market share, despite the group's cost efficiency and improving product competitiveness. "We expect Geely Holding to maintain leverage at a moderate level over the next two years. The group's improving profitability should more than offset increased capital expenditure and product developments. The group's cash flow and leverage are likely to be highly volatile over the next two years, given the industry's high cyclicality and the group's small market share. "We assess Geely Auto's business risk profile as "fair" to reflect our view that the company can maintain its profitability through good cost-management capability and anticipated efficiency gains from its brand-consolidation plan. This is despite the plan's negative impact on the company's sales in 2014. Our assessment of Geely Auto's financial risk profile as "modest" reflects the company's conservative financial policy and a track record of conservative leverage management." "The stable outlook on Geely Auto reflects the stable group profile of Geely Holding," said Mr. Han. "We expect Geely Holding to steadily improve its profitability and maintain leverage at a moderate level, but its market position should remain limited over the next 12 months." The stable outlook is despite S&P's expectation that the group will increase its investments in research and development and capacity expansion to strengthen its product competitiveness. "We also expect Geely Auto's linkages with Geely Holding to strengthen over the next two to three years, given rising strategic and operational integration," said S&P. S&P further said, "We may lower the rating on Geely Auto if Geely Holding's credit profile deteriorates. This could happen if its market share and cost competitiveness deteriorate substantially because of factors such as the poor execution of its integration and technology development or increasing competition, which erode profitability. A substantial decrease in the group's global market share below 2.5% on an extended period or a failure to improve its EBITDA margin to above 6% could indicate such deterioration. "We may also lower the rating if Geely Holding's debt-to-EBITDA ratio stays above 2x over the next 12 months. Such a scenario could materialize if the group's profitability is much weaker than we expected due to a severe industry downturn or significant cost overruns from its expansion and technology development projects, or if the company makes aggressive debt-funded acquisitions. We may lower the ratings on Geely Auto if the company's strategic importance to the group deteriorates significantly and we lower the SACP. Such a scenario is very unlikely, in our view. "We see limited potential for an upgrade over the next 12 months. Still, we may raise the rating on Geely Auto if Geely Holding's credit profile improves. This could happen if the execution of ongoing manufacturing and technology integration within the group improves Geely Holding's competitiveness and cost position. Such an improvement would be shown in Volvo Cars and Geely Auto achieving a combined market share of over 5% of China's auto market or an EBITDA margin of more than 10%. "We may also raise the rating if we believe that Geely Holding can keep its ratio of debt to EBITDA below 1.5x through business cycles. The likely scenarios that could result in such an outcome are if profitability is stronger than we expected or Geely Holding adopts a more conservative financial policy and lowers its capital expenditure without hurting its competitiveness or market share." WUZHOU INTERNATIONAL: Fitch Affirms 'B' IDR; Outlook Stable ----------------------------------------------------------- Fitch Ratings has affirmed China-based Wuzhou International Holdings Limited's (Wuzhou) Long-Term Issuer Default Rating (IDR) at 'B'. The Outlook is Stable. Fitch has also affirmed Wuzhou's senior unsecured rating at 'B', and Recovery Rating at 'RR4'. The affirmation is due to the commercial property developer's ability to increase its contracted sales in the past 12 months and diversify outside Jiangsu province. Wuzhou has improved its debt structure by lengthening its debt maturity profile and reducing its reliance on secured debt and trust borrowings. Wuzhou's lower EBITDA margin is likely to be permanent in view of more sales in third-tier cities. While its leverage (net debt/adjusted inventory) may continue to increase, Fitch expects it will stay within 40%. KEY RATING DRIVERS Diversifying Outside Jiangsu Province: Contracted sales from Jiangsu province fell to 54% of total sales in 2013 from 72% in 2012, following the launch of projects in other provinces such as Zhejiang, Henan, Yunnan and Hubei. This was supported by a 33% year-on-year rise in contracted sales in 1H14 to 46% of Wuzhou's full-year target of CNY6.5bn. Fitch expects the geographical diversification to continue as Wuzhou's projects are spread across more provinces than a year ago. Improved Debt Structure: Wuzhou has improved its capital structure after two offshore bond issuances totalling USD200m in September 2013 and January 2014. It will improve further with an upcoming USD100m convertible bond issue. The bond issuances will help Wuzhou lengthen its debt maturity profile and reduce its reliance on secured debt. At end-June 2014, 26% of its debt was unsecured, compared with nil a year earlier. Wuzhou also relied less on trust borrowings, which constituted 17% of total debt at end-2013, down from 28% at end-2012. Lower Margin to be Sustained: Wuzhou's gross profit margin peaked at 53% in 2012 and fell to 44% in 2013. It further decreased to 41% in 1H14. Fitch believes it is caused by more project deliveries in third-tier cities. Fitch expects the decline to be permanent with margin hovering around the current level. Wuzhou's EBITDA margin was also affected by high sales, general and administrative (SG&A) expenses related to expansion into new cities. Fitch believes Wuzhou can only trim its SG&A expenses meaningfully after it slows down its expansion. Leverage Rising: Wuzhou doubled its contracted sales in 2013 by developing projects outside Wuxi. The expansion was partly funded by its IPO in the middle of 2013, and its leverage remained steady at 30% at end-2013. Leverage rose to 33% in mid-2014 due to a lower cash collection rate and continued construction capex. Fitch expects its leverage to further increase, but in a controlled manner. Leverage will only exceed the 40% level at which Fitch would consider negative rating action if cash collection continues to be weaker than our expectation or Wuzhou acquires land aggressively. Partners Raise Wuzhou's Profile: Fitch believes that Wuzhou's agreements to cooperate with Ping An Real Estate and Global Logistics Properties (GLP; BBB+/Stable) separately in providing financial services to Wuzhou's SME clients and co-developing wholesale centres and logistics facilities may enhance the competitiveness of Wuzhou's projects. Wuzhou can tap GLP's expertise in logistics and storage facilities and raise capital from Ping An for project development. Since the cooperation agreements are still at the preliminary stage, the earnings and capex requirements will be minimal. RATING SENSITIVITIES Positive: Future developments that may collectively lead to positive rating actions include: -- Annual contracted sales being sustained above CNY8bn while maintaining current margins and credit metrics, and -- Increase in geographical diversification by establishing its presence in a greater number of provinces, and -- Satisfactory operating conditions for completed projects, in particular for those that have been open for more than three years Negative: Factors that may, individually or collectively, lead to negative rating action include: -- A significant reduction in annual contracted sales -- Deviation from the current fast churn-out business model -- Net debt/adjusted inventory being sustained above 40% (end- June 2014: 33%) -- EBITDA margin staying below 20% on a sustained basis (1H14: 25%) -- Contracted sales/ total debt staying below 1.0x on a sustained basis (end-June 2014: 1.2x). ========= I N D I A ========= AGRASHA ALLOYS: CRISIL Suspends B- Rating on INR54MM Bank Loan -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Agrasha Alloys Trading Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Letter of Credit 26 CRISIL A4 Suspended Proposed Letter of Credit 120 CRISIL A4 Suspended Proposed Long Term Bank Loan Facility 54 CRISIL B-/Stable Suspended The suspension of ratings is on account of non-cooperation by AATPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, AATPL is yet to provide adequate information to enable CRISIL to assess AATPL'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' Agrasha Alloys Trading Private Limited (AATPL) was incorporated in 1998, by Mr. Madhukant Agarwal along with his business acquaintances Mr. Jay Shah. The company is engaged in trading of metal scrap including heavy melting scrap and shredded steel scrap, which serve as raw material for steel based products. The company has its registered office at Masjid Bunder, Mumbai. AIRFLOW EQUIPMENTS: CRISIL Suspends D Rating on INR121MM Loan ------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of AirFlow Equipments (India) Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 50 CRISIL D Suspended Long Term Loan 121 CRISIL D Suspended Proposed Cash Credit Limit 14 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by AEPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, AEPL is yet to provide adequate information to enable CRISIL to assess AEPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings' Set up in 1983 as Bala Industries by Mr. G Dakshinamurthy, the firm was reconstituted as a private limited company and renamed AEPL in 1999. AEPL manufactures various products for interiors of railway compartments, as well as heating, ventilating, and air- conditioning components. ANJANEYA JEWELLERY: CRISIL Assigns B+ Rating to INR150MM Loan ------------------------------------------------------------- RISIL has assigned its 'CRISIL B+/Stable' rating to the long term bank facilities of Anjaneya Jewellery (AJ). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 150 CRISIL B+/Stable The rating reflects the company's weak financial risk profile, marked by high gearing and low net worth and its susceptibility to intense competition in the fragmented gold jewellery retailing industry. These rating weaknesses are partially offset by its promoters' extensive experience in the jewellery business. Outlook: Stable CRISIL believes that AJ will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if there is substantial and sustained improvement in the company's scale of operations and profitability, leading to improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if AJ undertakes aggressive debt-funded expansions, or if its revenue and profitability decline substantially, weakening its financial risk profile. Incorporated in the 2005, AJ is engaged in the retailing of gold and diamond jewellery. The company operates a single jewellery showroom in Labbipet in Vijayawada in Andhra Pradesh. The company is promoted by Mr.Venkat Rao and his family. AJ, reported a provisional profit after tax (PAT) of INR17 million on net sales of INR141million for 2013-14 (refers to financial year April 1 to March 31), against a PAT of INR16 million on net sales of INR121 million for 2012-13. B.R. INDUSTRIES: ICRA Suspends B Rating on INR8.5cr Bank Limits --------------------------------------------------------------- ICRA has suspended [ICRA]B rating assigned to the INR8.50 crore bank limits of B.R. Industries. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. BENITO CERAMIC: CRISIL Assigns B- Rating to INR50MM Term Loan ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B-/Stable' rating to the bank facilities of Benito Ceramic Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 50 CRISIL B-/Stable Cash Credit 20 CRISIL B-/Stable Proposed Long Term Bank Loan Facility 30 CRISIL B-/Stable The ratings reflect BCPL's modest scale of operations in the highly competitive ceramics industry, below-average financial risk profile, marked by high gearing and weak debt protection metrics and its large working capital requirements. These rating weaknesses are partially offset by the extensive industry experience of the company's promoters, and the proximity of its manufacturing facilities to raw material and labour resources. Outlook: Stable CRISIL believes that BCPL will benefit over the medium term from its promoters' experience in the ceramics industry. The outlook may be revised to 'Positive' if BCPL improves its scale of operations while maintaining its profitability, leading to larger- than-expected cash accruals, or if it improves its working capital management. Conversely, the outlook maybe revised to 'Negative' if the company's accruals are lower than expectations because of reduced order flow or profitability, or if it's financial risk profile deteriorates, most likely because of a stretch in its working capital cycle or substantial debt-funded capital expenditure. BCPL was incorporated in 2011 and is promoted by the Morbi (Gujarat)-based Mr. Bharatbhai Rajkotia, and Mr.Pravinbhai Rangparia. BCPL manufactures ceramic wall tiles; and its production facilities are located at Morbi (Gujarat). BCPL reported a net loss ofINR20.4 million on net sales of INR43 million for 2013-14 (refers to financial year, April 1 to March 31). BHUWANESHWAR REFINERIES: CRISIL Suspends B+ Rating on INR35M Loan ----------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Bhuwaneshwar Refineries Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 25 CRISIL A4 Suspended Cash Credit 35 CRISIL B+/Stable Suspended Letter of Credit 50 CRISIL A4 Suspended Proposed Long Term Bank Loan Facility 32 CRISIL B+/Stable Suspended Term Loan 8 CRISIL B+/Stable Suspended The suspension of ratings is on account of non-cooperation by BRPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, BRPL is yet to provide adequate information to enable CRISIL to assess BRPL'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 1998 and promoted by Mr. Chandrabhan Dembla, BRPL refines crude edible oil and trades crude and refined edible oils such as soya bean, cotton oil, rice bran and sunflower oil. CAIRO INT'L: ICRA Reaffirms B/A4 Rating on INR21.35cr Loan ---------------------------------------------------------- ICRA has reaffirmed the long-term rating of [ICRA]B and short-term rating of [ICRA]A4 assigned earlier to the INR21.35 crore (enhanced from INR19.35 crore) fund-based bank facilities of Cairo International (long-term limits are interchangeable with short- term limits to the extent of INR12.00 crore such that the total rated amount shall not exceed INR21.35 crore). Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term fund-based 21.35 [ICRA]B/ [ICRA]A4; bank facilities reaffirmed The rating reaffirmation takes into account the steady financial profile of the firm characterized by a leveraged capital structure owing to working capital intensive operations and low capital base, as well as modest profitability margins which in turn translate into stretched debt-coverage indicators. Though the firm has been able to maintain high capacity utilization, the scale of operations is modest in a highly fragmented apparel market which limits the pricing ability of the firm resulting in low operating profit margins, which are further constrained by high proportion of trade sales (>25%) in the revenue mix. Low profitability coupled with high working capital cycle of the firm on account of high receivable turnover period and long production cycle, has resulted in high dependence on bank borrowings for incremental working capital requirements. The working capital intensity increased further during FY14 resulting in stretched liquidity as also reflected in full utilization of sanctioned working capital bank facility despite enhancement in the limits. Further, the ratings continue to be constrained on account of high client concentration risk as the exports are largely limited to two clients, as also witnessed in a decline in export sales during the past two years. ICRA also takes note of CI's constitution as a partnership firm, which limits the financial flexibility and could impact the financial profile of the firm in case of withdrawal of capital by the partners. The rating, however, continues to derive comfort from significant experience of the partners of over two decades in the garmenting industry and their active involvement in the business operations, and the firm's presence in domestic as well as export markets (which accounted for 25% of the sales in FY14). Going forward, the firm's ability to prudently manage its working capital cycle and strengthen its capital structure by improving its profit margins and maintaining partners' capital would be the key rating sensitivities. Further, change in constitution of the entity to a private limited company can also contribute to improved financial flexibility. Formed in December 2003 by Mr. Lalit Agarwal and his wife Mrs. Rekha Agarwal, Cairo International is a partnership firm engaged in manufacturing of readymade garments such as shirts, trousers and T-shirts mostly for men. In addition, the firm is also engaged in trading of woven fabric. The readymade garments are retailed in the domestic markets mostly under the firm's brands - Dash and Cairo; while the exports sales include garments manufactured for other international brands as well. Key export markets of the firm are Saudi Arabia and United Arab Emirates. The firm's manufacturing unit is located in Mundka, Delhi which has a capacity of manufacturing 6.5 lac garment pieces per annum. The firm reported an Operating Income (OI) of INR56.00 crore and Profit before Tax (PBT) of INR0.85 crore in FY14 (provisional estimates) as compared to an OI of INR54.34 crore and PBT of INR0.97 crore in FY13. CHAMUNDI DISTILLERIES: CRISIL Rates INR120MM Cash Credit at 'D' --------------------------------------------------------------- CRISIL has assigned its 'CRISIL D' rating to the bank facilities of Chamundi Distilleries Private Limited (CDPL). The rating reflects instances of delay by CDPL in servicing its debt; the delays have been caused by the company's weak liquidity. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 120 CRISIL D CDPL also has large working capital requirements and its profitability margins and scale of operations remain vulnerable to fluctuations in raw material prices. These rating weaknesses are partially offset by the industry experience of promoters and association of CDPL with the SPR Group which has a long established presence in the business of manufacturing alcoholic beverages in the state of Karnataka. CDPL was incorporated as a private limited company in 1979, and is being promoted by Mr. Thimme Gowda and Mr Suresh Gowda. The company undertakes manufacturing of extra neutral alcohol and is based out of Bangalore, Karnataka. CDPL's reported a net loss at INR25.2 million on net sales of INR42.4 million for 2013-14 (refers to financial year, April 1 to March 31) on a provisional basis, against a net loss of INR8.0 million on net sales of INR177.8 million for 2012-13. CHAWLA INT'L: CRISIL Puts B+ Rating on INR45MM Bill Discounting --------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank loan facilities of Chawla International. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Short Term 22.5 CRISIL A4 Bank Loan Facility Packing Credit 27.5 CRISIL A4 Bill Discounting 45 CRISIL B+/Stable Cash Credit 5 CRISIL B+/Stable The ratings reflect CI's modest scale of operations in a highly fragmented industry and its low operating profitability. These rating weaknesses are partially offset by the experience of CI's partners in the business of trading in coal, food grains, and cotton. Outlook: Stable CRISIL believes that CI will continue to benefit over the medium term from its partners' extensive industry experience. The outlook may be revised to 'Positive' in case of large accruals and better working capital management leading to improvement in the firm's financial risk profile, particularly its liquidity. Conversely, the outlook may be revised to 'Negative' in case of deterioration in the firm's financial risk profile, particularly liquidity, on account of stretch in working capital cycle or pressure on profitability margins or any significant debt-funded capital expenditure. CI exports domestic coal and foods grain to Bangladesh and Bhutan. Its partners are Mr. Jasbir Singh Chawla, Mr. Baljinder Singh Chawla, Mr. Hardip Singh Chawla, and Mr. Sarabjit Singh Chawla. CREATIVE LOOMS: CRISIL Reaffirms B Rating on INR115MM Term Loan --------------------------------------------------------------- CRISIL's rating on the bank loan facilities of Creative Looms and Crafts Pvt Ltd (CLCPL) continues to reflect its below-average financial risk profile, marked by high gearing, weak debt protection metrics, and a small net worth. The rating also factors in the company's small scale of operations. These rating weaknesses are partially offset by the promoters' extensive experience in the handicraft and furniture trading segments. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 15 CRISIL B/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 20 CRISIL B/Stable (Reaffirmed) Term Loan 115 CRISIL B/Stable (Reaffirmed) Outlook: Stable CRISIL believes that CLCPL's financial risk profile will remain constrained by its small net worth, over the medium term. The outlook may be revised to 'Positive' if the company generates sizeable cash flows. Conversely, the outlook may be revised to 'Negative' if CLCPL's financial risk profile or liquidity deteriorates because of significantly low operating cash flows or offtake from the ongoing capital expenditure (capex), respectively. Update CLCPL registered 7.5 per cent year-on-year growth in its revenue, to around INR69 million for 2013-14 (refers to financial year, April 1 to March 31), mainly driven by increasing demand from retail customers. However, the operating margin remained stable at around 4.8 per cent during the year. The company implemented capex of around INR208 million to construct a five-storey building in Sector 44, Gurgaon; the project is in the final stage of completion. CLCPL's topline is likely to grow at a healthy rate over the medium term, given its enhanced revenue visibility, with a new showroom commencing operations in November 2014. The showroom, based in Gurgaon, will be around 5 times the size of its existing operational showrooms. Additionally, the company is expected to generate stable rental income, over the medium term by leasing four of the five floors of the building to various multinational corporations (MNCs). CLCPL's fixed rental income and an expected increase in the scale of operations, will comfortably meet its fixed overheads, thereby significantly improving the company's operating margin. CLCPL has moderate working capital requirements, as indicated by its gross current assets (GCAs) of around 142 days, as on March 31, 2014. The company's GCAs have historically been at similar levels. These GCA days emanate from CLCPL's inventory levels of around 116 days, Consequently, CLCPL's bank limit utilisation was high at around 98 per cent on average, over the 12 months ended June 30, 2014. The company's net worth remained small at around INR6.5 million as on March 31, 2014. The company has high total indebtedness towards funding its working capital requirements; this, coupled with its small net worth has resulted in high total outside liabilities to tangible net worth ratio of around 1.55 times as on March 31, 2014. CLCPL was incorporated in in 1983. The company, promoted by Mr. Rishabh Singh and Mrs. Geeta Singh, trades in handicrafts and furniture. CLCPL operates through two retail outlets in New Delhi (one each in Dwarka and Sultanpur). CLCPL is constructing a five-storey building in Sector 44, Gurgaon. The company intends to set up a showroom on one floor, and lease out the rest to various MNCs. ELTUS COMMODITIES: CARE Reaffirms B Rating on INR15cr Bank Loan --------------------------------------------------------------- CARE reaffirms the rating aasigned to the long-term bank facilities of Eltus Commodities Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 15 CARE B Reaffirmed Rating Rationale The rating assigned to bank facilities of Eltus Commodities Private Limited (ECPL) continues to be constrained by the relatively small scale of operations, low capitalization, low profitability margin and working capital intensive nature of operation leading to a leveraged capital structure and weak debt coverage indicators. The rating further continues to be constrained by presence in a highly fragmented industry and customer concentration risk. The above constraints are partially offset by strengths derived from experienced promoters, their financial support and diversified product portfolio. The ability of the entity to improve its scale of operations and profitability margins amidst intense competition along with efficient management of the working capital cycle are the key rating sensitivities. Incorporated in August 2011, Eltus Commodities Private Limited (ECPL) is engaged in the trading of herbs and construction material. ECPL trades in herbs (such as phudina, wax, liquid paraphin wax & others used for the manufacturing of ayuervedic drugs) and construction material (such as sand, aggregates, steel and others). ECPL sources these commodities locally (Mumbai) and revenues are also generated domestically. The company has its warehouse located at Bhiwandi. As per the provisional results for FY14 (refers to the period April 1 to March 31), ECPL posted a total income of INR67.65 crore (vis-a-vis INR56.43 crore in FY13) and earned PAT of INR0.70 crore (vis-a-vis INR0.33 crore in FY13). During Q1FY15, the company has posted a total income of INR19 crore. FINFOOT LIFESTYLE: CARE Assigns B+ Rating to INR12.75cr Bank Loan ----------------------------------------------------------------- CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank facilities of Finfoot Lifestyle Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 12.75 CARE B+ Assigned Short term Bank Facilities 0.20 CARE A4 Assigned Rating Rationale The ratings assigned to the bank facilities of Finfoot Lifestyle Private Limited (FLPL) are constrained on account of significant project execution risk associated with its green-field project, high funding risk as project debt tieup is pending along-with significant marketing risk associated given its presence in a highly fragmented textile industry. The ratings, however, derive strength from experienced and professional management team and favourable industry outlook. The ability of the company to complete the ongoing capex without any time and cost overrun and stabilization of operations thereof remains the key rating sensitivity. Promoted by the Pathak family, Finfoot Lifestyle Private Limited is setting up a power loom weaving unit at village Yadrav, district Kolhapur. The total cost of project amounts to INR15.70 crore funded through term loan of INR10.50 crore and promoters' contribution of INR5.20 crore. The proposed plant would have 24 new modern shuttle-less air jet looms with a combined installed capacity of manufacturing 10,000 meter of fabric per day. The commercial production is expected to start from May 2015. The project is eligible for subsidy benefit under Textile Upgradation Fund scheme, Maharashtra Industrial Policy 2013 and Maharashtra Textile Policy. CLR Facility Services Private Limited (CFPL) is the group company of FLPL which offers facility management services across eight states including Maharashtra, Karnataka, Goa, Gujarat, Andhra Pradesh, Delhi, Madhya Pradesh and Tamil Nadu. G. S. PROMOTERS: CRISIL Suspends B Rating on INR200MM Loan ---------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of G. S. Promoters & Developers. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term 200 CRISIL B/Stable Suspended Bank Loan Facility The suspension of ratings is on account of non-cooperation by GSPD with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, GSPD is yet to provide adequate information to enable CRISIL to assess GSPD'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'. GSPD was established in 2006 as a partnership firm by Mr Birbhan Goel, Mr Jagdish Goel, Mr Manoj Mittal, Mr Om Prakash, Mr Suresh Singla, and Mr Vijay Dhawan, for carrying out real estate development in and around Mohali. The firm has finished executing one residential project, Panchkula Heights, and is presently engaged in the execution of a commercial project, Tricity Trade Tower. GSPD is a part of the APS group which has been involved in commercial/residential real estate development in Mohali for over a decade. G V GOD: CRISIL Reaffirms B+ Rating on INR50MM Cash Credit ---------------------------------------------------------- CRISIL's ratings on the bank facilities of G V (God Vishnu) Rice Unit (GVRNU) continue to reflect its high gearing, large working capital requirements, and moderate scale of operations in the intensively competitive rice processing segment. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 50 CRISIL B+/Stable (Reaffirmed) Packing Credit 370 CRISIL A4 (Reaffirmed) Proposed Short Term Bank Loan Facility 80 CRISIL A4 (Reaffirmed) The ratings also factor in the firm's exposure to risks related to changes in regulatory policies, and to volatility in raw material prices, because of high dependence on the monsoons. These rating weaknesses are partially offset by GVRNU's increasing scale of operations, the extensive industry experience of the promoters, and healthy growth prospects for the basmati rice industry. Outlook: Stable CRISIL believes that GVRNU will maintain its established presence in the rice industry over the medium term, on the back of its promoters' extensive experience. The outlook may be revised to 'Positive' if the firm records a substantial and sustained improvement in its profitability margins, and maintains healthy revenue growth; or a sizeable increase in its net worth supported by the promoters' equity infusion. Conversely, the outlook may be revised to 'Negative' if GVRNU's profitability margin or capital structure weakens with substantial working capital requirements or debt-funded capital expenditure (capex). Update GVRNU's revenue increased at around 90 per cent growth in 2013-14 (refers to financial year, April 1 to March 31), to around INR2480 million, with an increase in the proportion of rice trading to the total revenue, and an improvement in capacity utilization. The topline could increase at a compound annual growth rate (CAGR) of 5 to 10 per cent over the medium term, supported by healthy growth prospects for the basmati rice industry. However, the profitability will remain at around 4 per cent, because of the low value-additive and competitive nature of the rice industry. The firm's operations are working capital intensive, with gross current assets (GCAs) expected to be around 185 days as on March 31, 2015, as in the recent past, because of an increase in the inventory holding period. However, an increase in the proportion of trading in rice resulted in bank limit utilization of around 19.4 per cent on average, for the 12 months ended June 30, 2014. GVRNU's net worth was moderate at around INR110-120 million, as on March 31, 2014, vis-a-vis debt of INR288 million; the majority of the firm's revenue in 2013-14 comprised trading in rice, resulting in moderate gearing of around 2.69 times as on March 31, 2014. The firm's debt could increase with its intention to reduce trading in rice and increase its focus on milling over the medium term. Along with moderate net worth, these factors will result in high gearing, over the medium term. GVRNU is a partnership firm set up by the Bansal family in Karnal (Haryana) in 1987. The Bansal family has been active in the rice industry for three generations; the father of the late Mr. Som Prakash Bansal set up a processing unit in the 1940s. Currently, Mr. Som Prakash Bansal's wife, Mrs. Nirmala Devi and their sons, Mr. Sureinder Bansal, Mr. Promod Bansal, and Mr. Vinit Bansal, control GVRNU with a share of 25 per cent each. GVRNU mills, processes, and sells rice in the export and domestic markets. The firm focuses on exporting basmati rice to the Middle East and Iran; both regions have high demand for rice. Exports exceed 90 per cent of the firm's revenue, as on date. GVRNU also trades in rice; the firm procures unsorted rice from small mills, sorts and subsequently exports the same. The firm has one rice milling, grading, and sorting unit in Karnal (Haryana) with capacities of 7 tonnes per hour (tph) for milling and 9 tph for sorting. GUJU ADS: CRISIL Suspends B- Rating on INR137.2MM Term Loan ----------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Guju Ads Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 25 CRISIL B-/Stable Suspended Proposed Term Loan 137.2 CRISIL B-/Stable Suspended Term Loan 37.8 CRISIL B-/Stable Suspended The suspension of ratings is on account of non-cooperation by GAPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, GAPL is yet to provide adequate information to enable CRISIL to assess GAPL'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'. GAPL, promoted by Mr. Bhavesh Bhinde, his mother Mrs. Jayaben Bhinde and his wife Mrs. Jigna Bhinde, was initially established in 1994 as a proprietorship firm by Mr. Bhinde, whose business was taken over by GAPL in 1998. It is the flagship company of the Guju group. GAPL is engaged in out-of-home (OOH) advertising solutions. It has hoarding rights for central railway stations in Mumbai like Mulund, Ghatkopar, Vidhyavihar, and Kurla as well as for other public and private places. HANUMANT FOUNDATION: ICRA Suspends B+ Rating on INR59.5cr LT Loan ----------------------------------------------------------------- ICRA has suspended [ICRA]B+ rating assigned to the INR59.50 crore, long term loans and working capital facilities of Hanumant Foundation. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. HORIZON POLYMERS: CRISIL Cuts Rating on INR120MM Cash Credit to B ----------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Horizon Polymers to 'CRISIL B/Stable' from 'CRISIL B+/Stable', and has reaffirmed its rating on the company's short-term facilities at 'CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 120 CRISIL B/Stable (Downgraded from 'CRISIL B+/Stable') Letter of Credit 30 CRISIL A4 (Reaffirmed) Proposed Long Term 20 CRISIL B/Stable (Downgraded Bank Loan Facility from 'CRISIL B+/Stable') Term Loan 30 CRISIL B/Stable (Downgraded from 'CRISIL B+/Stable') The rating downgrade reflects the increase in HP's working capital requirements over the past two years, as reflected in the increase in its gross current assets to around 310 days as on March 31, 2014, from 264 days as on March 31, 2012. Over this period, the firm has generated cash accruals of INR4.8 million, against incremental working capital requirements of INR68.3 million, which led to high utilisation of its bank lines. HP's liquidity was strained further because of capital withdrawal of around INR8.84 million by its partners over this period, in spite of its insufficient cash accruals to fund working capital requirements and term debt repayment obligations INR18.7 million. The ratings reflect HP's weak financial risk profile marked by high gearing, and its large working capital requirements. The ratings also factor in high end-user industry concentration in the firm's revenue profile, and the susceptibility of its margins to volatility in raw material prices. These rating weaknesses are partially offset by HP's established regional market position, supported by its diversified product profile and its promoters' extensive experience in the pipe-manufacturing industry. Outlook: Stable CRISIL believes that HP will continue to benefit over the medium term from its promoters' extensive industry experience and its established market position in northern India. The outlook may be revised to 'Positive' if the firm generates more-than-expected cash accruals or its partners infuse fresh equity, leading to improvement in its capital structure and liquidity, and if it shortens its working capital cycle. Conversely, the outlook may be revised to 'Negative' if HP's profitability is lower than expected, its partners withdraw more capital, it undertakes a large debt-funded capital expenditure programme, or its working capital cycle is stretched, further weakening its financial risk profile. Set up in 2003 as a partnership firm in Jalandhar (Punjab) by Mr. Subhash Aggarwal and his son, Mr. Deepak Aggarwal, HP manufactures polyvinyl chloride pipes, polypropylene random pipes, and high- density polyethylene pipes along with pipe fittings. JAIN UDHAY: CRISIL Cuts Rating on INR116.1MM Term Loan to 'D' ------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Jain Udhay Apparels Pvt Ltd (JUA) to 'CRISIL D/CRISIL D' from 'CRISIL C/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 40 CRISIL D (Downgraded from 'CRISIL C') Letter of Credit 20 CRISIL D (Downgraded from 'CRISIL A4') Term Loan 116.1 CRISIL D (Downgraded from 'CRISIL C') The rating downgrade reflects instances of delay by JUA in servicing its term loans owing to weak liquidity, which, in turn, is due to the company's low cash accruals, large repayment obligation, and delay in funding support from promoters. The company also has working-capital-intensive operations, low cash accruals, weak financial risk profile marked by a high gearing and weak debt protection metrics, and small scale of operations. However, the company benefits from the extensive experience of its promoters in the textile industry. Incorporated in 1984, JUA is managed by Mr. Amit Kumar Jain and Mr. Arvind Kumar Jain. The company, based in Ludhiana (Punjab), manufactures ready-made garments. It sells the garments under the Coffler and JUS brands. JAYSHREE CHEMICALS: ICRA Cuts Rating on INR83.8cr Term Loan to D ---------------------------------------------------------------- ICRA has revised downwards the rating of the INR83.80 crore term loan and INR9.50 crore fund based working capital limits of Jayshree Chemicals Limited from [ICRA]BB- to [ICRA]D. ICRA has also revised the short term rating assigned to the INR12.54 crore non-fund based bank limits of JCL from [ICRA]A4 to [ICRA]D. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loan 83.80 Downgraded to [ICRA]D Fund Based limits 9.50 Downgraded to [ICRA]D Non-Fund Based limits 12.54 Downgraded to [ICRA]D The revision in the ratings takes into account the consistent overutilization of the working capital facilities indicating liquidity pressure arising out of losses suffered by the company during the financial year (FY) 2014 and the first quarter of the current financial year (FY2015). While revising the ratings ICRA has also noted the proposed sale of the chlor-alkali division of the company in Orissa to Aditya Birla Chemicals India Ltd. Jayshree Chemicals Limited (JCL) is engaged in the manufacturing of caustic soda, liquid chlorine and hydrochloric Acid at Ganjam district, Orissa. It expanded its caustic soda production capacity from 22,500 MTPA to 53,200 MTPA by replacing to membrane cell technology from mercury cell technology in April 2011. In addition to that, the company also operates one Wind Mill near Coimbatore in Tamilnadu. Recent Results During the period April to June 2014, JCL recorded a loss before tax of INR2.38 crore on net income from operations of INR33.73 crore as against a loss before tax of INR1.78 crore on net income from operations of INR33.73 crore in the corresponding period of the previous year. During FY14, JCL recorded a loss after tax of INR18.06 crore on operating income of INR121.92 crore as against a profit after tax of INR0.87 crore on operating income of INR133.51 crore in the previous year. KAMAL CED: CRISIL Suspends B+ Rating on INR45MM Term Loan --------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Kamal CED Solutions LLP. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 20 CRISIL B+/Stable Suspended Term Loan 45 CRISIL B+/Stable Suspended The suspension of ratings is on account of non-cooperation by KCSLLP with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, KCSLLP is yet to provide adequate information to enable CRISIL to assess KCSLLP'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' KCSLLP was incorporated in 2010 by Mr. R.S. Punia to provide the Cathodic Electro Deposited (CED) coating on automotive parts. The company is engaged in CED coating, top coating and Magni coating for various automotive components. It has two plants located at Manesar (Gurgaon) and Mr. Rajeev Joshi, partner and executive director of the firm, looks after the day to day operations. KHANDELWAL AGENCIES: CRISIL Suspends B Rating on INR85MM Loan ------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Khandelwal Agencies Private Limited (KAPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 85 CRISIL B/Stable Suspended The suspension of ratings is on account of non-cooperation by KAPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, KAPL is yet to provide adequate information to enable CRISIL to assess KAPL'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'. KAPL, incorporated in the year 1983 by the Indore based Khandelwal family, is engaged in trading of various steel pipes, fittings, floor/wall tiles, CP fittings and sanitary ware. Mr. Santosh Khandelwal along with his brother Mr. Suresh Khandelwal manage the overall operations of the company. KHOKAN MOTORS: CRISIL Suspends B+ Rating on INR50MM Channel Loan ---------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Khokan Motors Works Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 20 CRISIL B+/Stable Suspended Channel Financing 50 CRISIL B+/Stable Suspended The suspension of ratings is on account of non-cooperation by KMWPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, KMWPL is yet to provide adequate information to enable CRISIL to assess KMWPL'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 proprietorship company in 1964, KMWPL was reconstituted as a private limited company in 2006. The company located in Siliguri, West Bengal is an authorized dealer for sales and service of complete range of vehicles of M&M. KRIDHAN INFRA: CRISIL Suspends B- Rating on INR20MM Cash Credit --------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Kridhan Infra Solutions Pvt Ltd (KISPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 20 CRISIL B-/Stable Suspended Letter of Credit 50 CRISIL A4 Suspended The suspension of ratings is on account of non-cooperation by KISPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, KISPL is yet to provide adequate information to enable CRISIL to assess KISPL'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 2011, KISPL trades in couplers and TMT bars. The company is based in Mumbai (Maharashtra) and is promoted by Mr Anil Agrawal and his mother Mrs. Krishnadevi Agrawal. MADHAV COTTON: CARE Revises Rating on INR7.33cr Bank Loan to 'B+' ----------------------------------------------------------------- CARE revises the rating assigned to the bank facilities of Madhav Cotton Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 7.33 CARE B+ Revised from CARE B Rating Rationale The revision in the rating assigned to the bank facilities of Madhav Cotton Private Limited (MCPL) is primarily on account of stabilization of operations coupled with an improvement in the financial risk profile marked by an improvement in the capital structure and debt coverage indicators during FY14 (refers to the period April 1 to March 31). The rating, however, continues to remain constrained on account of thin profit margins, its presence in the lowest segment of the textile value chain with limited value addition in the cotton ginning business and seasonality associated with the procurement of raw material, resulting into working-capital intensive nature of operations and susceptibility to the change in government policies. The rating continues to draw strength from the wide experience of the promoters' in the cotton industry and locational advantage in terms of proximity to the cotton-growing regions in Maharashtra. The ability of MCPL to increase its scale of operations and move up in the cotton value chain thereby improving its profitability, capital structure and managing working capital requirements efficiently remains the key rating sensitivities. MCPL was incorporated in June 2011 by Mr Kailashchand Mittal and Mrs Savita Mittal as a private limited company. MCPL is engaged into the business of cotton ginning and pressing. MCPL deals in 'Mech-1' type of cotton which is being sourced through the local farmers from Maharashtra. MCPL operates from its sole manufacturing plant located at Beed (Maharashtra) which has an installed capacity to process cotton bales of 56,000 quintals per annum and for cotton seeds of 1,04,000 quintals per annum as on March 31, 2014. FY14 was the first full year of operation of MCPL as started commercial production from January 2013. During FY14, MCPL reported a TOI of INR32.79 crore and PAT of INR0.19 crore as against TOI of INR7.96 crore and net loss of INR0.11 crore during FY13. Furthermore, during Q1FY15, MCPL reported TOI of INR8.33 crore. MULTIPLAST POLYMER: CRISIL Suspends D Rating on INR65MM Term Loan ----------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Multiplast Polymer Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------ Cash Credit 30 CRISIL D Suspended Proposed Long Term Bank Loan Facility 5 CRISIL D Suspended Term Loan 65 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by MPPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, MPPL is yet to provide adequate information to enable CRISIL to assess MPPL'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'. MPPL was incorporated in 2008, to take over the business of Multiplast, a partnership firm, promoted by Mr. Vishanji Gada, alongwith his sons Mr. Manoj Gada and Mr. Devendra Gada in 1996. Multiplast's operations were taken over by MPPL on January 1, 2011. The present directors of MPPL are Mr. Vishanji Gada, Mr. Manoj Gada, and Mrs. Manisha Gada (wife of Mr. Manoj Gada). MUTHOOT AUTO: CRISIL Cuts Rating on INR50MM Funding Loan to B+ -------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Muthoot Automobile Solutions Pvt Ltd to 'CRISIL B+/Stable' from 'CRISIL BB-/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 5 CRISIL B+/Stable (Downgraded from 'CRISIL BB-/Stable') Inventory Funding 50 CRISIL B+/Stable (Downgraded Facility from 'CRISIL BB-/Stable') Term Loan 30 CRISIL B+/Stable (Downgraded from 'CRISIL BB-/Stable') The rating downgrade reflects CRISIL belief that MASPL's business risk profile will remain constrained over the medium term due to delay in stabilisation of its showroom. The company had reported cash losses in 2013-14 (refers to financial year, April 1 to March 31) and its cash accruals are expected to remain lower than CRISIL's earlier expectation over the medium term. CRISIL, however, believes that MASPL will derive fund support from promoters and group companies to support business operations and debt servicing until its operations stabilise. The rating reflects MASPL's early stage of operation and its exposure to intense competition in the automobile dealership business. The rating weakness is partially offset by the extensive industry experience of MASPL's promoters and the financial support that the company is likely to receive from the Muthoot Pappachan group. Outlook: Stable CRISIL believes that MASPL will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the company records higher-than-expected revenue and cash accruals, leading to improvement in financial risk profile. Conversely, the outlook may be revised to 'Negative' if the company undertakes a large debt- funded capital expenditure programme or faces delays in stabilizing its operations resulting in further deterioration in its financial risk profile. Incorporated in 2010, MASPL is engaged in dealership of passenger cars manufactured by Ford India Pvt Ltd (Ford). The company's business operations are managed by Mrs. Remy Thomas Muthoot. MASPL is a part of the Muthoot Pappachan group which has interests in diverse fields such as non-banking financial business, power generation, automobile dealership, and real estate and infrastructure development. POWER MAX: CRISIL Ups Rating on INR130MM Cash Credit to 'C' ----------------------------------------------------------- CRISIL has upgraded its rating on the bank facilities of Power Max (India) Pvt Ltd to 'CRISIL C' from 'CRISIL D'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 130 CRISIL C (Upgraded from 'CRISIL D') Working Capital Demand Loan 70 CRISIL C (Upgraded from 'CRISIL D') The rating upgrade reflects the regularisation of Power Max's rated debt over the last three months ended August 2014. However, there are delays by the company in servicing its equipment loans (not rated by CRISIL) on account of its weak liquidity. The rating continues to reflect Power Max's below-average financial risk profile marked by its modest networth, high gearing, and below-average debt protection metrics. The ratings of the company are also constrained on account of its large working capital requirements, and its modest scale of operations in the intensely competitive engineering-procurement-construction (EPC) industry. These rating weaknesses are partially offset by the extensive experience of the company's promoters in the EPC industry, and the company's established relations with clients. Power Max was established in 1977 by Mr. Dilip Kumar Bose. The company undertakes erection, commissioning, testing, and maintenance of structural works and electrical equipments. The company primarily caters to the power and metal industries. PRECISION ENGINEERING: CRISIL Reaffirms B- Rating on INR110M Loan ----------------------------------------------------------------- CRISIL's ratings on the bank facilities of Precision Engineering Corporation (PEC) continue to reflect PEC's modest scale of operations in the intensely competitive capital goods and engineering sector, and the susceptibility of its margins to volatility in input prices and to off-take by key customers. The ratings are also constrained by the firm's working-capital- intensive operations and below-average financial risk profile, marked by a modest net worth and high gearing. These rating weaknesses are partially offset by the extensive industry experience of PEC's partners. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 70 CRISIL A4 (Reaffirmed) Cash Credit 110 CRISIL B-/Stable (Reaffirmed) Letter of Credit 20 CRISIL A4 (Reaffirmed) Outlook: Stable CRISIL believes that PEC will continue to benefit over the medium term from its partners' extensive experience in the capital goods and engineering sector. The outlook may be revised to 'Positive' if the firm records significant and sustained improvement in its revenue and capital structure while maintaining its margins. Conversely, the outlook may be revised to 'Negative' if there is a decline in PEC's revenue or margins, or a stretch in its working capital cycle, leading to pressure on its liquidity and weakening its financial risk profile. Update PEC's operating income registered an 8.5 per cent year-on-year decline to around INR249.2 million in 2013-14 (refers to financial year, April 1 to March 31); the decline was due to inspection and clearance delays from Vishakhapatnam Steel Plant, Chhattisgarh State Electricity Board, and KCP (Chennai). However, the firm's operating margin has increased significantly to 23 per cent from 14.8 per cent due to the significant increase in job-work income. PEC is expected to register revenue of INR300 million to INR350 million while its operating margin is expected to remain in line with historical trends of 14 to 15 per cent, over the medium term. PEC's operations are highly working capital intensive as reflected in its gross current assets (GCAs) of 455 days as on March 31, 2014; the GCAs were higher than in the past because of debtors of around 309 days due to retention money held by Rashtriya Ispat Nigam Ltd, and inventory of around 226 days. The firm's bank limits have been utilised at an average of around 101 per cent during the 12 months through March 2014. PEC's net worth was small at around INR82.7 million, as on March 31, 2014. The firm has large debt contracted for funding its substantial working capital requirements; this, coupled with its small net worth, has resulted in high gearing of around 1.96 times as on March 31, 2014. PEC was originally set up as a proprietorship concern by Mr. H D Gupta in 1982, as an ancillary to Bhilai Steel Plant; it gradually added other customers. In 2010, it was reconstituted as a partnership firm after his son Mr. Vaibhav Gupta joined the business. PEC manufactures heat exchanger coils used in boilers in power plants. The firm has its manufacturing facility and office in Bhilai (Chhattisgarh). PRIME URBAN: CRISIL Reaffirms B Rating on INR250M Export Bill ------------------------------------------------------------- CRISIL's ratings on the bank facilities of Prime Urban Development India Ltd (PUDIL) continue to reflect PUDIL's modest scale of operations in the textile trading business and susceptibility of PUDIL's near term credit profile to the success of its ongoing real estate projects being undertaken in its associate entities. These rating weaknesses are partially offset by extensive experience of promoters in the textile industry and financial flexibility from its surplus land bank. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Export Bill Negotiation 250 CRISIL B/Stable (Reaffirmed) Packing Credit 50 CRISIL A4 (Reaffirmed) Outlook: Stable CRISIL believes that PUDIL will continue to benefit over the medium term from the promoters long standing presence in the industry. The outlook may be revised to 'Positive' in case PUDIL reports significantly higher-than-expected growth in cash flow from operations, thereby translating into an improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if the company faces a stretch in its working capital cycle, or if the cash flow from operations in respect of its real estate segment is significantly below expectations. PUDIL was incorporated in 1936 by the Patodia family, headed by Late Mr. Madanlal Patodia. The operations of the company are currently managed by the third generation of the Patodia family - Mr. Manoj Patodia and Mr. Anuj Patodia. The company is engaged in trading of cotton yarn. The company is also engaged in real estate development through three partnership firms, in which the company is a partner. These firms are - Prime New line AOP, Prime Developers and Prime Mall Developers. PUDIL is listed on the Bombay Stock Exchange. PUDIL reported net loss of INR 6.9 million on net sales of INR598.4 million for 2013-14 (refers to financial year, April 1 to March 31); the company reported a net loss of INR17.5 million on net sales of INR228.6 million for 2012-13. ROADLINES CORP: CRISIL Suspends C Rating on INR98M Overdraft Loan ----------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Roadlines Corporation Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Overdraft Facility 98 CRISIL C Suspended The suspension of ratings is on account of non-cooperation by RCPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, RCPL is yet to provide adequate information to enable CRISIL to assess RCPL'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' RCPL, incorporated in 1994, provides road freight transportation services; it caters mainly to the power and capital goods industry. The company's day-to-day operations are managed by Mr. Yatendra Kumar Arya and Yogendra Kumar Arya. SANRAA MEDIA: CRISIL Suspends D Rating on INR150MM Overdraft Loan ----------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Sanraa Media Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 68.5 CRISIL D Suspended Overdraft Facility 150 CRISIL D Suspended Proposed Term Loan 1.5 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by SML with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SMLO is yet to provide adequate information to enable CRISIL to assess SML'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' SML, established in 1995, develops animated content. The day-to- day operations of the trust are managed by its chairman, Mr. Sundaresan. SHRI VISHNU: CRISIL Suspends D Rating on INR300MM Cash Credit ------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Shri Vishnu Overseas Pvt Ltd (SVOL; part of the Shri Vishnu group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 300 CRISIL D Suspended Foreign Bill Purchase 250 CRISIL D Suspended Term Loan 153 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by SVOL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SVOL is yet to provide adequate information to enable CRISIL to assess SVOL'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 SVOL and Shri Vishnu Eatables (India) Limited (SVEL), here in referred to as Shri Vishnu group. This is primarily because both the entities are controlled by the same management and are engaged in the same businesses- processing of rice. The entities also derive considerable operational and business synergies from each other. SVOL was incorporated in 1995 by Mr. Banarasi Lal Mittal and his sons. Company is in the milling of rice as well as wheat. The processing unit of the company is located in Kaithal, Haryana. SLV SPINNING: CRISIL Reaffirms B Rating on INR172MM Term Loan ------------------------------------------------------------- CRISIL's ratings on the bank facilities SLV Spinning Mills Ltd continue to reflect its below-average financial risk profile, marked by stretched liquidity, small net worth, high gearing, and weak debt protection metrics. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 4.5 CRISIL A4 (Reaffirmed) Cash Credit 150 CRISIL B/Stable (Reaffirmed) Long Term Loan 172 CRISIL B/Stable (Reaffirmed) Term Loan 0.5 CRISIL B/Stable (Reaffirmed) Working Capital Term Loan 50.0 CRISIL B/Stable (Reaffirmed) Working Capital Term Loan 50.0 CRISIL B/Stable (Reaffirmed) The ratings also factor in the susceptibility of the company's business risk profile to geographical concentration in revenue, volatility in cotton prices, and to any adverse impact of regulatory changes. These rating weaknesses are partially offset by the promoters' extensive experience in the cotton yarn industry. Outlook: Stable CRISIL believes that SLV's liquidity will remain stretched over the medium term due to its significant debt obligations and stretched working capital cycle. The outlook may be revised to 'Positive' if the company improves its liquidity, with sizeable cash accruals or equity from the promoters. Conversely, the outlook may be revised to 'Negative' if SLV's debt-servicing ability is impacted by a stretched working capital cycle or delayed fund support from the promoters. Update For 2013-14 (refers to financial year, April 1 to March 31), SLV's revenue at around INR535 million, on a provisional basis, grew by 23 per cent year-on-year, from 2012-13, on the back of new customers in its areas of operations ' Maharashtra and Karnataka. Additionally, the company sustained its healthy operating margin at around 17 per cent, supported by efficient inventory management. CRISIL believes that SLV can maintain the momentum in its topline over the medium term, with steady demand from its existing customers and increasing offtake from its new customers. SLV's financial risk profile is marked by aggressive gearing, estimated at 1.57 times as on March 31, 2014; the company's debt protection metrics are moderate, with interest coverage and net cash accruals to total debt (NCATD) ratios of 2.3 times and 0.15 times, respectively, for 2013-14. SLV's liquidity is stretched because of its working-capital-intensive operations, with almost full utilisation of its bank lines, over the 12 months through August 2014. Moreover, the company's expected cash accruals of INR50 million for 2014-15, will tightly match its debt obligations over the period. CRISIL believes that timely financial support from the promoters in the event of a cash flow mismatch, will remain a key rating sensitivity factor. Incorporated in 2003, SLV, based in Bellary (Karnataka), was founded by Mr. T Shivarama Prasad. The company manufactures cotton yarn of 40s and 60s count. SLV has a manufacturing unit in Nagari (Andhra Pradesh), and has an installed capacity of 33,000 spindles. For 2012-13, SLV reported a profit after tax (PAT) of INR9.3 million on net sales of INR434 million; the company reported a PAT of INR7.9 million on net sales of INR385.6 million for 2011-12. SMILAX LABORATORIES: CARE Ups Rating on INR68.2cr Loan From B ------------------------------------------------------------- CARE revises the ratings assigned to the bank facilities of Smilax Laboratories Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 68.20 CARE BB+ Revised from CARE B Long-term/Short-term Bank 5 CARE BB+/CARE A4+ Facilities Revised from CARE B/CARE A4 Short-term Bank Facilities 18.80 CARE A4+ Revised from CARE A4 Rating Rationale The revision in the ratings takes into account significant improvement in the liquidity position & financial risk profile of the company and consistent revenue growth with moderate profitability during FY14 (refers to the period April 1 to March 31) and 5MFY14 (refers to period April 1 to August 31). The ratings also factors in satisfactory experience of the promoter group with financial support being extended by the group, comfortable order book position and robust industry growth prospects. The ratings, however, continue to remain constrained by the working capital intensive nature of operation with high work in process inventory, relatively high debt repayment obligation in the medium term, client concentration risk and intense competition from regional players. The ability of the company to further expand the scale of operation while maintaining the operating profit margin and manage the working capital requirement efficiently are the key rating sensitivities. Smilax Laboratories Ltd (SLL), incorporated in the year December 2004, belongs to Hyderabad-based Ramky group of companies. SLL is a pharmaceutical company engaged in the manufacturing of advanced Intermediates, Active Pharmaceutical Ingredients (APIs) and Pellets at its manufacturing facilities located at Jeedimetla, Telangana and Vishakhapatnam, Andhra Pradesh. The company also undertakes contract manufacturing and contract research activities, besides sale of own API/Intermediates. The facilities and products of SLL are approved by WHO-GMP, Slovenian Regulatory agency JAZMP and European approval CEP for Omeprozole. During FY14, SLL posted a PBILDT of INR36.13 crore (FY13 - INR33.86 crore) and PAT (after deferred tax) of INR1.26 crore (FY13 - INR1.25 crore) on a total income of INR167.48 crore (FY13 - INR149.50 crore). As per unaudited financials for 5MFY15, SLL has registered net sales and PBT of INR63.2 crore and INR1.14 crore respectively. SRI CHANDRA: CRISIL Reaffirms B+ Rating on INR100MM Cash Credit --------------------------------------------------------------- CRISIL's ratings on Sri Chandra Moulishvar Spinning Mills Private Limited (SCMSM) continue to reflect SCMSM's below-average financial risk profile, marked by high gearing and a small net worth. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 0.9 CRISIL A4 (Reaffirmed) Cash Credit 100.0 CRISIL B+/Stable (Reaffirmed) Long Term Loan 77.5 CRISIL B+/Stable (Reaffirmed) The ratings also factor in the company's small scale of operations and its susceptibility to fluctuations in input costs. These rating weaknesses are partially offset by the extensive experience of SCMSM's promoter in the cotton textile yarn industry. Outlook: Stable CRISIL believes that SCMSM will continue to benefit over the medium term from its promoter's extensive industry experience. The outlook may be revised to 'Positive' if the company's financial risk profile improves, driven by larger-than-expected cash accruals. Conversely, the outlook may be revised to 'Negative' if SCMSM undertakes a large debt-funded capital expenditure programme, or if its operating margin deteriorates, thereby weakening its financial risk profile. SCMSM was set up in September 2004 by Mr. M Ravichandran. The company manufactures hosiery yarn in Tirupur (Tamil Nadu). SRI KAILASANADHA: CRISIL Assigns B+ Rating to INR90.4MM Term Loan ----------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank facilities of Sri Kailasanadha Textiles Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60 CRISIL B+/Stable Long Term Loan 90.4 CRISIL B+/Stable The rating reflects SKTPL's modest scale of operations in the intensely competitive cotton-ginning industry and its weak financial risk profile, marked by high gearing and weak debt protection metrics. The rating weaknesses are partially offset by the benefits derived from its promoters' extensive industry experience and established customer relationships. Outlook: Stable CRISIL believes that SKTPL will continue to benefit over the medium term from the extensive industry experience of its promoters. The outlook may be revised to 'Positive' if there is significant increase in the company's scale of operations while improving its profitability margin and capital structure. Conversely, the outlook may be revised to 'Negative' in case of significant decline in its revenue or profitability or if its capital structure deteriorates on account of high working capital requirements or a large debt-funded capital expenditure. Established in 2013, SKTPL is engaged in ginning and pressing of raw cotton and sells cotton lint and cotton seeds. SKTPL is promoted by Mr. Tulabandula Paripurna Krishna Rao and Mr. Tolupuluri Muralidhar Rao. SYNERGY GREEN: CRISIL Reaffirms D Rating on INR110MM Cash Credit ---------------------------------------------------------------- CRISIL's ratings on the bank facilities of Synergy Green Industries Private Limited continue to constrain on account of delays by Synergy in servicing interest payments towards its term loan. The delays were driven by its weak liquidity, because of slow offtake in revenues, partly due to the currently challenging business environment in the casting and forging industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 10 CRISIL D (Reaffirmed) Cash Credit 110 CRISIL D (Reaffirmed) Letter of Credit 40 CRISIL D (Reaffirmed) Proposed Long Term Bank Loan Facility 13.3 CRISIL D (Reaffirmed) Synergy remains exposed to offtake risks inherent to the domestic casting and forging market, due to its nascent stage of operations and highly leveraged capital structure. The weakness is offset by the extensive experience of Synergy's promoters in the castings and forgings industry. Synergy is a subsidiary of S.B. Reshellers Pvt Ltd (SBR), which was incorporated in 1978. CRISIL has not consolidated the financials of Synergy with SBR for the rating analysis because of there is no intercompany sales or transaction between the entities and each one operate independently with transaction being arms length. Update In FY 2014 the company new plant located in Kagal (Maharashtra) has become operational. Further the company during FY 2014 derive a revenue of around 80 per cent from sale of windmill casting and 20 per cent through machine tool, pumps and valves. The company intend to focus on wind turbine generators as their core products. It is to be noted that the government has restored key tax incentives recently in July 2014 to producer of power from wind energy. CRISIL believes that the development would enable the company to gain traction in utilization of installed capacity as demand for turbines increases. Synergy operating margins are under strain due to increase competition from Chinese manufacturer of turbine, which the team expects will remain. However, operating profitability is expected to increase gradually as the company scales up operations and achieves better economies of scale. The company's operation has remained working capital intensive attributed to high inventory holding and high debtor levels of the company resulted in the high GCA of the company. Synergy was established in August 2010 in Kolhapur, Maharahtra. The company manufactures iron castings for wind turbines, machine tool, pumps and valves. Synergy began commercial production in June 2012. The company is managed by Mr. Sachin Shirgaokar, Mr. Sohan Shirgaokar and Mr. V. Srinivas Reddy. T.C. SPINNERS: ICRA Assigns B+ Rating to INR24.03cr LT Loan ----------------------------------------------------------- ICRA has assigned a long-term rating of [ICRA]B+ to the INR24.03 crore fund-based facilities and short-term rating of [ICRA]A4 to the INR3.00 crore non-fund based facilities of T.C. Spinners Private Limited. ICRA also has ratings of [ICRA]B+/[ICRA]A4 outstanding for the INR65.00 crore bank facilities of T.C. Spinners Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-Term Fund Based Facilities 24.03 [ICRA]B+ Assigned Short-Term Non- Fund Based Facilities 3.00 [ICRA]A4 Assigned The assigned rating continues to take into account the modest financial profile of the company owing to high leverage and resultant debt coverage indicators based on profitability and cash accrual levels. While the operating profitability of the company remained stable at ~9.5% during 9M'FY-14, which on increased scale of operations would result in higher cash accruals; however the debt servicing capability of the company remained weak owing to increase in schedule repayments for long term debt as the company undertook debt funded capital expenditure (capex) during the last year. Given modest profitability (NPM at ~3.5%) and cash accruals along with scheduled repayments, the company would require timely funding support from the promoters for debt servicing in case the scale of operations and profitability doesn't improves in FY-15. The rating is also constrained on account of working capital intensive nature of operations due to the requirement to stock cotton during the cotton season for use during the later period, which depending upon the levels of stocking undertaken, results in exposure to fluctuation in the yarn prices, and could adversely impact the profit margins. As a result of high working capital intensity along with revenue growth and modest accruals, the liquidity of the company remained stretched. The rating also takes note of the susceptibility of the Indian spinning industry to the policy change in China with respect to cotton stocking and yarn/cotton import. Nevertheless, the assigned rating continues to factor in the considerable experience of the promoters in the textiles industry and proximity of the cotton spinning plant to a major agricultural belt of the country which ensures easy and timely availability of raw-material. Going forward, the ability of the company to increase the scale of operations with better profitability and reduce working capital cycle to improve liquidity in light of increasing scale of operations are critical for debt servicing, else the company will need to secure timely funding support from the promoters and hence will be the key rating sensitivities. T.C. Spinners Private Limited (TCSPL) was incorporated in FY-08 with the acquisition of cotton spinning facility of Euro Cotspin Limited from Punjab National Bank under SARFAESI Act. TCSPL is engaged in the production of cotton yarn, polyester yarn and spun sewing thread at its facility in Lalru (Punjab) located on main Chandigarh-Ambala Highway (NH-22). The cotton spinning facility is having an installed capacity of 30,432 spindles and it can manufacture 10,328 MT of yarn at an average count of 30s annually. TCSPL is promoted by Dr. Ajay Satia and his family members with other companies in the group include - Satia Industries Limited, rated at [ICRA]BB / [ICRA]A4 and Bhandari Export Industries Limited. The company reported Operating Income (OI) of INR131.5 crore and Profit After Tax (PAT) of INR5.2 crore as compared to OI of INR105.7 crore and net loss of INR1.6 crore for FY-2013. Recent Results As per the provisional results, the company reported an Operating Income (OI) of INR173.6 crore for FY-2014 as compared to INR131.49 crore for FY-2013. TRADEWEL CONSTRUCTION: ICRA Withdraws 'D' Rating on INR7cr Loan --------------------------------------------------------------- ICRA has withdrawn the [ICRA]D rating assigned to the INR7 crore fund based limits of Tradewel Construction Corporation Private Limited. The rating has been withdrawn at the request of the company as the rated limits have been fully closed. There is no amount outstanding against the rated instrument. USHA SPINNERS: CRISIL Ups Rating on INR70MM Cash Credit to B+ ------------------------------------------------------------- CRISIL has upgraded its rating on the long-term bank facilities of Usha Spinners to 'CRISIL B+/ Stable' from 'CRISIL B/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 70 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') The rating upgrade is driven by the improvement in Usha's financial risk profile, as reflected in its total outside liabilities to tangible net worth (TOLTNW) ratio of 2.33 times as on March 31, 2014 as against 4.38 times as on March 31, 2013. This was primarily on account of infusion of INR21 million by promoters. The revenue has also improved to around INR451 million for 2013-14 (refers to financial year, April 1 to March 31), on account of healthy demand from customers. Consequently, its net cash accruals improved to INR3.4 million in 2013-14. The rating continues to reflect Usha's below-average financial risk profile, marked by high gearing and weak debt protection metrics, and modest scale of operations in a fragmented industry. These rating weaknesses are partially offset by its promoters' extensive experience in the textile industry. Outlook: Stable CRISIL believes Usha will maintain its business risk profile over the medium term on the back of its proprietor's extensive experience in the textile industry. The outlook may be revised to 'Positive' if the firm reports healthy growth in the scale of operations and profitability leading to better debt protection metrics, or its capital structure improves due to infusion of substantial equity by promoters. Conversely, the outlook may be revised to 'Negative' if Usha's operating margin declines further or its financial risk profile deteriorates owing to a stretch in working capital cycle. Set up in 1998, Usha is a Ludhiana-based proprietorship concern that trades in cotton, polyester yarn and cloth. The operations of the firm is being looked after by Mr. Gautam Thapar. UTTORON ENGINEERING: ICRA Puts B+ Rating on INR3.4cr Cash Credit ---------------------------------------------------------------- ICRA has assigned an [ICRA]B+ rating to the INR0.54 crore term loan and INR3.40 crore cash credit facilities of Uttoron Engineering Private Limited. An untied limit of INR11.05 crore has also been rated by ICRA at [ICRA]B+ and [ICRA]A4 on long term and short term scale respectively. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limit- Term Loan 0.54 [ICRA]B+ assigned Fund Based Limit- Cash Credit 3.40 [ICRA]B+ assigned Fund Based/Non Fund Based Limit- Untied limit 11.05 [ICRA]B+/[ICRA]A4 assigned The assigned ratings take into account UEPL's small scale of current operations, leading to nominal profits and cash accruals at an absolute level and weak financial profile characterized by high gearing and depressed level of coverage indicators. The ratings are also constrained by the highly fragmented nature of the industry characterized by intense competition from both organized and unorganized players and high product concentration risks as safety shoes constituted more than 90% of the company's turnover in 2013-14. ICRA notes that the liquidity profile of the company has remained stretched in view of optimum utilization of its working capital limits. The ratings, however, derive comfort from the strategic location of UEPL's shoes manufacturing unit at Kanpur, which provides easy access to key raw material (i.e. leather) and availability of skilled/semi-skilled labour, and a favourable demand outlook of personal protective equipment (PPE) industry, which along with company's plan to foray into export of safety gloves are likely to boost revenue growth in the future. Incorporated in 2009, UEPL is engaged in manufacturing of personal protective equipments like safety shoes, safety helmets, safety belts/harness, etc. The company commenced its commercial operations in August 2011. UEPL currently operates through its two manufacturing units situated at Howrah, West Bengal (Unit-I) and Kanpur, Uttar Pradesh (Unit-II). In Unit-I, the company manufactures safety helmets and safety belts/harness; whereas in Unit-II, the company manufactures only safety shoes. The products of the company are sold under the brand name of "UEHMPL". Recent Results The company has reported a net profit of INR0.31 crore (provisional) on an operating income of INR17.28 crore (provisional) during 2013-14; as compared to a net profit of INR0.34 crore on an operating income of INR16.32 crore during 2012-13. VIRAJ STEEL: CRISIL Suspends D Rating on INR1.23BB Term Loan ------------------------------------------------------------ CRISIL has suspended its ratings on the bank facilities of Viraj Steel and Energy Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 15 CRISIL D Suspended Cash Credit 250 CRISIL D Suspended Letter of Credit 60 CRISIL D Suspended Proposed Long Term Bank Loan Facility 4 CRISIL D Suspended Term Loan 1,230 CRISIL D Suspended Working Capital Demand Loan 150 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by VSEL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, VSEL is yet to provide adequate information to enable CRISIL to assess VSEL'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' VSEL, incorporated in 2004, commenced commercial production in 2006. The company is owned and operated by Mr. Kamal Lalwani, Mr. Jitender Lalwani, Mr. Shashikant Chaursisa, and Mr. R D Rai. VSEL manufactures sponge iron and mild steel billets. The company also has a waste-heat-recovery-based power plant of 16-megawatt (MW) and another 14-MW power plant based on atmospheric fluidised bed combustion. YEGNA MANOJAVAM: CRISIL Cuts Rating on INR210MM Cash Credit to D ---------------------------------------------------------------- CRISIL has downgraded its ratings on the bank facilities of Yegna Manojavam Drugs & Chemicals Ltd to 'CRISIL D/CRISIL D' from 'CRISIL B-/Stable/Stable A4'. The rating downgrade reflects instances of delay by YMDC in servicing its term debt; the delays have been caused by the company's weak liquidity. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 40 CRISIL D (Downgraded from 'CRISIL B-/Stable') Cash Credit 210 CRISIL D (Downgraded from 'CRISIL B-/Stable') Funded Interest 114.2 CRISIL D (Downgraded from Term Loan 'CRISIL B-/Stable') Letter of Credit 40 CRISIL D (Downgraded from 'CRISIL B-/Stable') Long Term Loan 195.6 CRISIL D (Downgraded from 'CRISIL B-/Stable') Working Capital 242.6 CRISIL D (Downgraded from Term Loan 'CRISIL B-/Stable') The rating also reflects YMDC's weak financial risk profile marked by a weak capital structure and debt protection metrics and its high working capital requirements. However the company benefits from the extensive industry experience of its promoters. Incorporated in 2003 and based out of Hyderabad, YMDC is involved in the manufacturing of bulk drugs and intermediaries. The company is promoted by Mr. R.L.Y.P Shastry and Mr.Y.V. Ramana. During 2012-13 (refers to financial year April 1 to March 31), YMDCL reported a net loss of INR272.8 million on net sales of INR478.9 million as against a profit after tax (PAT) of INR27.3 million on net sales of INR1.02 billion during 2011-12. ========= J A P A N ========= SHARP CORP: S&P Revises Outlook on 'B+' LT CCR to Stable -------------------------------------------------------- Standard & Poor's Ratings Services said that it had revised to stable from negative the outlook on its 'B+' long-term corporate credit rating on Sharp Corp. and its overseas subsidiary, Sharp International Finance (U.K.) PLC. At the same time, S&P affirmed its long-term corporate credit rating on Sharp at 'B+', its long-term senior unsecured debt rating at 'B', and its short- term corporate credit rating and rating on the company's commercial paper program at 'B'. S&P also affirmed all the ratings on Sharp International Finance (U.K.) PLC. "The outlook revision reflects our view that the company's operating performance will continue to recover moderately thanks to significant cost reductions and a shift of its product mix toward small-to-midsize liquid crystal displays (LCD). The revision also incorporates our expectation that improving operating performance is likely to support the company's stable banking relationships and reduce liquidity risk for the company over the next 12 months, despite our view that the company will continue to depend heavily on short-term borrowings," S&P said. The rating affirmations reflect S&P's view that intense competition, particularly in the LCD industry, and rapid demand and technology changes in other products will continue to constrain Sharp's competitiveness and profitability. The affirmation also reflects S&P's view that the company's heavy dependence on short-term borrowings and our assessment of its liquidity as "less than adequate" will continue in the next 12 months, and constrain Sharp's creditworthiness. S&P continues to assess Sharp's business risk profile as "fair." Sharp's operating performance has been recovering gradually, supported by significant reductions in fixed costs in the past two years. In S&P's view, the company's operating performance will continue to recover moderately, thanks to efforts to shift its product mix towards more stable small-to-midsize panels and lower its exposure to more competitive large-size panels in its LCD business. "We view the company's good technology strength as having supported the transition of its product mix and that this will help the company maintain its leading market share in small- to-midsize LCDs. In addition, a more diversified customer base, including rapidly growing Chinese smartphone makers, will also help the company reduce its business volatility going forward, in our view. However, we believe that inherent volatility in the company's LCD business will remain high, given intense competition and strong pricing pressure, volatile demand from end smartphone and TV markets, and likely oversupply resulting from aggressive capacity expansion for large LCDs in China over the next two to three years. Sharp's concentration in the volatile LCD industry constrains our assessment of the company's business risk profile," said S&P. S&P continues to assess Sharp's financial risk profile as "aggressive," reflecting the company's close relationships with its creditor banks. S&P believes that stronger EBITDA interest coverage could enhance Sharp's financial risk profile. "On the other hand, we acknowledge that the company's core ratios, such as debt to EBITDA at around 5x, are weak for the "aggressive" category. This is because we still partially incorporate Sharp's historical large ratio swings under the company's LCD business strategy; for example, debt to EBITDA in fiscal 2012 (ended March 31, 2013) stood at 16.3x. Nonetheless, the ratio has improved and we expect it to remain slightly below 4x in fiscals 2014 to 2015 in our base case, due to the gradual recovery in EBITDA, as well as reductions in debt," said S&P. S&P's base-case scenario for the next 24 months assumes that: 1) Shipments of small-to-midsize LCD panels will increase in line with increasing orders, despite fierce competition. Although prices of small-to-midsize LCD panels will continue to fall, the increase in shipments will make up for the price drop. As a result, operating profits of Sharp's LCD business will increase gradually in line with revenue growth; 2) Although earnings of LCD TVs made by a joint venture will stabilize, the proportion to consolidated operating profits is small; 3) Sharp's solar cell business will see its profits decline substantially due to setbacks in demand and intensifying competition; 4) Its home appliances and copy machine businesses continue to generate solid earnings. "Based on these assumptions, we expect the company's EBITDA margin to hover around 8%." Given the base-case assumptions, S&P expects that: 1) Sharp will continue to generate free operating cash flow of around 30 billion or more annually, backed by a gradual recovery in operating performance, continual asset sales and selective capital investments; 2) Its debt to EBITDA ratio will be around 4x, compared to 3.94x as of March 31, 2014. In addition, Sharp has limited the use of capital and cash that it raised through a public offering aimed at spurring growth through capital investments. Therefore, S&P does not include funds from the increased capital in our calculation of surplus cash, which is an adjustment item under debt. S&P assesses Sharp's liquidity as "less than adequate." "We expect sources of liquidity to be below 1.2x uses for the next 12 months. This is because our calculation of sources of liquidity does not include Sharp's uncommitted credit facilities. However, we believe the likelihood Sharp will be able to roll over its debt under the uncommitted credit facilities is high assuming that banks are willing to provide Sharp with financial support. We incorporate into the principal liquidity sources about JPY350 billion in cash and deposits, about JPY130 billion a year in funds from operations, and proceeds from continual asset sales that are definite or extremely close to definite. We also incorporate into the principal liquidity uses about JPY700 billion in annual debt repayments and JPY50 billion a year in capital expenditures," said S&P. S&P said, "Our issue rating on Sharp's debt is one notch below the issuer credit rating, reflecting a ratio of priority liabilities to total assets in excess of 15% (the one-notch threshold). The ratio stands at 23% based on our assessment, so we do not expect this degree of notching to change for some time to come. "The outlook is stable. In our view, despite the intense competition, Sharp's operating performance is likely to recover gradually in the next 12 months, underpinned by Sharp's efforts to maintain or even enhance its LCD business' competitiveness. We expect the company's core financial measures to stay at the current levels partly because Sharp continues to implement cash management. In addition, we expect that liquidity risk has fallen, as stabilizing operating performance and improving leverage will help to sustain support from its lender banks on its liquidity. "We may downgrade Sharp if its operating performance shows signs of significant deterioration, potentially due to a loss of technological advantage or competitiveness in the LCD panel business, and, as a result, key lender banks' supportive stance changes and pressures Sharp's liquidity. "We believe that Sharp's dependence on short-term borrowings is likely to remain high and that its liquidity status including rollovers under uncommitted credit facilities is unlikely to change over the next 12 months. Based on this, we see the likelihood of an upgrade as remote in the near future." =============== M A L A Y S I A =============== MALAYSIA AIRLINES: MH17 Families Denied Full Compensation --------------------------------------------------------- Nick Miller at The Sydney Morning Herald reports that bereaved families still grieving from the loss of their loved ones on flight MH17 are being denied the compensation they are owed by Malaysia Airlines, their lawyers said. However the airline strongly rejects their claim, saying the families will receive the full amount they are owed, as soon as normal legal processes have been gone through, SMH relates. "[Malaysia Airlines] is acutely conscious of its moral and legal obligations to those affected by the terrible tragedy which befell our flight MH17 and has never sought to avoid paying full compensation in accordance with the law," the airline told Fairfax Media, relays SMH. According to SMH, LHD Lawyers of Sydney told Fairfax Media that at least two families -- and probably more -- have been offered barely a quarter of the money they are legally entitled to under international treaties known as the Montreal Convention. And their efforts to find out why they have not been offered the full amount met with what the lawyers said was "nonsense," the report relates. "[Malaysia Airlines] is being completely disingenuous, they are not giving families all the information they need," said one lawyer with LHD Lawyers, Sydney, according to SMH. SMH says LHD are representing 24-year-old Cassandra Gibson from Perth who lost her mother, Liliane Derden, on MH17. SMH relates that Ms. Gibson, the mother of a nine-month-old daughter, said the early days after the loss of Liliane were "a blur". She remembers the airline first contacted her sister, Chelsea, who met a representative from Malaysia Airlines who travelled to her Canberra house, SMH relays. "[But] now MA only contact us by letter to provide information, not to inquire how we are coping," the report quotes Ms. Gibson as saying. According to SMH, the family were initially given a cheque for $5000, described as a no-strings-attached "compassionate payment" to deal with immediate costs. They were also handed a letter offering them $US50,000 (AU$55,300) as an "advanced compensation payment" -- as long as they signed a release form, SMH reports. However, leading aviation lawyers said this is nowhere near the full amount the families are owed, SMH relates. Jerry Skinner, a co-associate with LHD, is an expert in the law around aviation disasters -- he has worked on cases such as PanAm flight 103, known as the Lockerbie bombing, SMH discloses. "But this [MH17] is on the top of the list," Mr. Skinner, as cited by SMH, said. SMH relates that Mr. Skinner said countries including Malaysia and Australia have signed and passed into law international treaties to simplify who bears responsibility for compensating the victims of air tragedies. Under that law Malaysia Airlines is liable, regardless of whether or not they are responsible for the death or injury, to pay compensation to the families of the deceased, the report notes. "If a passenger is killed while on your airline, you are strictly liable, which means you have to pay . . . about US$183,000," the report quotes Mr. Skinner as saying. Malaysia Airlines has not yet paid the money to the families of those lost on MH370 nor MH17, he said, SMH relays. * * * As reported by the Troubled Company Reporter - Asia Pacific on September 1 2014, The Associated Press said Malaysia Airlines will cut 6,000 workers as part of a $1.9 billion overhaul announced on August 29 to revive its damaged brand after being hit by double passenger jet disasters. Investigators continue to scour the southern Indian Ocean for Malaysia Airlines Flight 370, which veered far off course while en route from Kuala Lumpur to Beijing on March 8 with 239 people on board, said the report. In July, 298 people were killed when Flight 17 was blasted out of the sky as it flew over an area of eastern Ukraine controlled by pro-Russian separatists. These tragedies have scarred the airline's brand, once associated with high-quality service, AP added. Headquartered in Selangor, Malaysia, state-owned Malaysia Airlines -- http://www.malaysiaairlines.com/-- engages in the business of air transportation and the provision of related services. Last year, Malaysia Airlines reported a net loss of MYR1.17 billion ($359 million), its third consecutive year of net losses, according to The Wall Street Journal. In the three months that ended June 30, its net loss widened to MYR307 million from MYR176 million in the year-earlier period, the Journal disclosed. ==================== N E W Z E A L A N D ==================== BRIDGECORP LTD: Receivers Squeezed Out NZ$4MM For Investors ----------------------------------------------------------- APNZ reports that the receivers of failed lender Bridgecorp Ltd have eked out another NZ$4 million in their seven-year administration after cutting a deal over a loan on which it held an insurance policy. According to APNZ, receiver Colin McCloy of PwC has been in talks with insurers and other parties over the level and acceptance of claims for policies on 19 loans, and last month negotiated a settlement with one of those parties on certain loans, he said in his latest report on the administration, without identifying the party. Earlier this year the Bridgecorp receiver lost a bid to pursue a NZ$20 million claim against Lloyd's of London in the New Zealand courts, meaning it would have to sue the underwriter in England, where it's located, APNZ recalls. Lloyd's was dragged into the failed finance company's orbit as a result of underwriting Herbert Insurance Group, which Bridgecorp procured to cover loans it made on property developments, the report notes. When Herbert Insurance was placed in liquidation in March 2011, which prompted a Serious Fraud Office investigation into the insurer, Bridgecorp's receivers then sought the NZ$20 million directly from Lloyd's, APNZ relates. According to APNZ, Mr. McCloy is still pursuing potential action against third parties "in respect of their conduct prior to receivership" but can't accurately predict a time frame for resolution. APNZ says the latest settlement comes after the receiver reached an NZ$18.9 million deal with the former directors, their insurers and the Financial Markets Authority, over a civil claim against the directors that they had breached their duties under the Companies Act. As at July 1, the receivers had realised 32 loans representing more than 85 per cent of Bridgecorp's New Zealand loan book for a gross NZ$164 million. Of that, just NZ$22.13 million was available for the receivers after higher ranking interests. A further NZ$8.87 million had been recovered that wasn't subject to prior ranking securities, generating NZ$31 million from Bridgecorp's New Zealand loans, APNZ discloses. When Bridgecorp collapsed in 2007 it owed some 14,400 investors about NZ$459 million. Since the collapse, the receivers have achieved total receipts of NZ$109 million as at July 1 of the NZ$595.3 million book value ascribed to Bridgecorp in June 2007, including intercompany loans, according to APNZ. APNZ notes that the Momi Resort development in Fiji created a big hole for the receivers, with no realisations achieved from the NZ$106.6 million advances. Some NZ$54.8 million has been distributed to secured debenture holders, totalling 12 cents in the dollar, and any future payments will depend on insurance and legal matters, APNZ relays citing Mr. McCloy's report. Bridgecorp's former managing director Rod Petricevic and chief financial officer Rob Roest received lengthy jail terms for misleading investors and making false statements, with an extra time added over charges brought by the Serious Fraud Office. Among the other directors, Peter Steigrad and Bruce Davidson received home detention and Gary Urwin was sentenced to two years' jail. Based in New Zealand, Bridgecorp Ltd. was a property development and finance company. The company was placed in receivership on July 2, 2007, after failing to pay principal due to debenture holders. John Waller and Colin McCloy, partners at PricewaterhouseCoopers, were appointed as receivers. Bridgecorp owes around 14,500 investors, which liquidators estimate to approximate NZ$500 million. Bridgecorp's nine Australian companies were also placed into voluntary administration, owing about 100 investors about AUD24 million (NZ$27 million). NEW ZEALAND POST: S&P Cuts Rating on NZ$200MM Sub. Notes to BB+ --------------------------------------------------------------- Standard & Poor's Ratings Services said that it had affirmed its 'A+/A-1' issuer credit and related debt issue ratings on New Zealand Post Ltd. (NZ Post). The outlook on the long term rating remains negative. At the same time, Standard & Poor's lowered its issue rating on NZ Post's NZ$200 million subordinated hybrid notes to 'BB+' from 'A-'. The affirmation of the issuer credit ratings on NZ Post reflects S&P's assessment of the group's stand-alone credit profile (SACP) at 'bbb', together with our expectation that NZ Post will benefit from a "very high" level of extraordinary support from the New Zealand government in times of financial stress. "The downgrade on the hybrid notes reflects our expectation that extraordinary government support will not be extended for this subordinated issue. In this regard, we now rate the hybrid issue rating two notches below NZ Post's stand-alone credit profile," Standard & Poor's credit analyst Paul Draffin said. "Previously, our rating on this instrument was two notches below the issuer credit rating based on the expectation of extraordinary government support." NZ Post is planning to remarket the hybrid ahead of the first reset date in November 2014. If the instrument is successfully remarketed and all other terms and conditions of the instrument remain unchanged (other than to reset the interest rate and extend key dates for a further five years), we will maintain the 'BB+' rating and "intermediate" equity credit content on the instrument. Underpinning NZ Post's business risk profile are: its position as the New Zealand sovereign's designated postal operator, its strong market shares in parcel and courier delivery, and meaningful operating diversity. Tempering these strengths are the group's exposure to structurally declining letter volumes, a high fixed cost base, and execution risks associated with the proposed restructuring under the group's revised Deed of Understanding (DoU). These factors support our "satisfactory" business risk profile assessment on the company. Mr. Draffin said: "The core postal operations continue to face significant ongoing structural declines in traditional mail volumes, against a large and predominantly fixed cost base. Accordingly, we consider the successful execution of the proposed cost restructuring initiatives under the revised DoU as essential to supporting the profitability of the postal operations." Key elements of the restructuring include a reduction in delivery days and an extensive rationalization of the retail postal network. These initiatives should, if well executed, reduce costs and introduce greater variability of the group's costs to better accommodate declining revenue trends. Nonetheless, these initiatives incorporate material execution risk and will be implemented over the next two years, with the full benefit not expected until at least fiscal 2016. Accordingly, S&P expects near-term profitability of the postal operations to remain weak. Mr. Draffin added: "The negative outlook reflects 1) the weak profitability of the postal operations that is highly reliant on effective cost restructuring to offset structurally declining revenue trends, and 2) rising economic imbalances in New Zealand that could affect the credit standing of NZ Post's subsidiary, Kiwibank Ltd." S&P could lower the ratings on NZ Post if: The letter-delivery business experiences material losses; There is a material deterioration in the competitive position or operating performance of any of the group's key businesses; Heightened economic imbalances in New Zealand erode the credit- standing of Kiwibank; or The ratio of funds from operations-to-debt (excluding the banking operations) is sustained at less than 25%, due to persisting weak operating performance, debt-funded acquisitions, or debt-funded distributions. Downward pressure on the ratings could also arise if S&P considered there to be a reduced likelihood that the New Zealand government would provide timely and sufficient extraordinary support to NZ Post. S&P could revise its outlook back to stable if: It formed a view that uncertainties around New Zealand's economic risks affecting Kiwibank have abated; NZ Post maintains and improves the profitability of its letter delivery business, underpinned by effective execution of its cost reduction strategies under the revised Deed of Understanding; and NZ Post maintains its FFO-to-debt (excluding the banking operations) of more than 25%. ================= S I N G A P O R E ================= VIVA INDUSTRIAL: S&P Revises Outlook to Neg. and Affirms BB+ CCR ---------------------------------------------------------------- Standard & Poor's Ratings Services revised the rating outlook on Singapore-based Viva Industrial REIT to negative from stable. "At the same time, we affirmed our 'BB+' long-term corporate credit rating on Viva and our 'BBB-' long-term issue rating on the medium-term notes (MTN) program that the REIT guarantees. In line with the outlook revision, we lowered our long-term ASEAN regional scale rating on Viva to 'axBBB' from 'axBBB+'," S&P said. "We also assigned our 'BBB-' long-term issue rating and 'axBBB+' ASEAN regional scale rating to the trust's proposed drawdown of Singapore dollar (S$) 100 million senior unsecured notes from the MTN program," S&P added. "The outlook revision reflects our view of Viva's increased risk appetite and potentially higher leverage following the trust's proposed acquisition of two Singapore-based properties for S$111.5 million," said Standard & Poor's credit analyst Yuehao Wu. Viva will use the proceeds from the MTN drawdown to fund the acquisition, which it is likely to complete within the year. "We estimate Viva's leverage, as measured by a ratio of debt to assets, at 45%-46% after the acquisition. This leverage is substantially higher than the 40% that was our previous maximum base-case expectation for the rating. It also reduces the cushion in our base-case forecast of a ratio of funds from operations (FFO) to debt of about 10%-11%. Any future additional debt-funded acquisitions could therefore lead to a breach of our downgrade trigger of a ratio of FFO to debt of 9%," S&P said. "We affirmed the rating because we expect the proposed acquisition to only moderately improve the trust's business risk profile. However, the acquisition will marginally lower Viva's asset concentration risk, given that the two assets will represent only about 13% of the REIT's portfolio value after the acquisition," Ms. Wu said. The rating on the MTN program and the notes is higher than the corporate credit rating to reflect S&P's view of the program's substantial recovery prospects because of over-collateralization of the trust's secured debt. The negative outlook reflects S&P's view that Viva's tolerance for leverage will remain higher than its previous expectation over the next 12 months. It also reflects uncertainty about Viva's adherence to its financial policy and a diminished cushion for leverage under the REIT's financial risk profile, which S&P assesses as "intermediate." "We could lower the rating if Viva's leverage stays close to 45% or the REIT's FFO-to-debt ratio falls below 9% for a sustained period. This could materialize if Viva does not issue equity to deleverage to below 40%, makes further debt-funded acquisitions, or faces significant challenges in leasing unoccupied space that would heighten the risk of expiring rental support," S&P said. "We could revise the outlook to stable if: (1) Viva reduces its leverage to below 40% over the next 12 months, consistent with its financial policy of keeping leverage at 40%-45%; and (2) the trust keeps its FFO-to-debt ratio above 9% while enhancing its portfolio. Portfolio enhancement can come from an enlarged and more diversified asset base as well as better occupancy rates and profitability on a stand-alone basis i.e., without rental support. ================ S R I L A N K A ================ AMW CAPITAL: Fitch Affirms 'BB-(lka)' Rating; Outlook Stable ------------------------------------------------------------ Fitch Ratings Lanka has affirmed Sri Lanka-based AMW Capital Leasing and Finance PLC's (AMCL) National Long-Term Rating at 'BB- (lka)'. The Outlook is Stable. KEY RATING DRIVERS The rating reflects AMCL's relatively weak deposit franchise among finance companies, modest capitalization and better asset quality metrics. AMCL's rating is a reflection of its stand-alone financial strength, and as such already factors in ordinary support from parent Associated Motorways Limited (AMW). Fitch believes that AMCL may be under pressure to increase its asset base by 27% to LKR8bn from an asset base of LKR6.3bn as at end-June 2014 before the end of this year. This is in line with the government's master plan to consolidate the financial system, according to which the consolidation in the non-bank financial institution segment is based on the asset and capital bases of the players. A rush to expand amid a weak economy could raise AMCL's credit risk profile. The company's assets rose 14% in 1H14 from LKR5.5bn as at end-2013 (2013: 15% and 2012: 31%). AMCL continues to have access to local wholesale funding, and it has unutilised credit lines that are sufficient to cover gaps arising from the mismatches in the maturities of its assets and liabilities. AMCL's external borrowings and borrowings channelled through its parent accounted for 64% and 10% respectively of total assets at end-1H14.(end-2013: 37% and 33%). The high proportion of borrowings could lead to liquidity pressure in the event AMCL is unable to source such funding directly or through the parent. Fitch's view is that liquidity can erode rapidly in times of stress. AMCL's deposit base of LKR657m accounted only for 14% of its total funding at end-1H14 (end-2013: 6.5%; end-2012: 0.1%) and has a relatively high deposit concentration. Fitch does not expect the share of deposit funding to increase given AMCL's management intends to continue to rely on wholesale funding. AMCL's reported regulatory gross NPL ratio stood at 2.1% at end- 2013, better than the industry average of 6.7%. However, Fitch expects the NPL ratio to increase due to the challenging operating environment and as the loan book seasons. The company has been shifting towards providing financing for more non-AMW brand vehicles as it seeks to expand its loan book while increasing its market share of AMW products. AMW brand vehicles remain a significant part of its loan portfolio as at Dec. 2013. Fitch expects AMCL's capitalization to continue to decline due to its expanding operations but to remain at a satisfactory level for its current rating. RATING SENSITIVITIES Fitch may take positive rating action if AMCL develops its franchise, both in funding and lending, while maintaining its financial profile relative to higher-rated peers. Deterioration in the company's liquidity profile, asset quality, or capitalization to levels below its peers would place downward pressure on AMCL's rating. PEOPLE'S LEASING: Fitch Affirms 'B+' IDRs; Outlook Stable --------------------------------------------------------- Fitch Ratings has affirmed Sri Lanka-based People's Leasing & Finance Company PLC's (PLC) Long-Term Foreign and Local Currency Issuer Default Ratings (IDR) at 'B+'. The agency has also affirmed PLC's National Long-Term Rating at 'AA-(lka)'. The Outlook on the ratings is Stable. KEY RATING DRIVERS - IDRs, NATIONAL RATING AND DEBT PLC's IDRs and National Long-Term Rating reflects Fitch's view that PLC's parent, the state-owned and systemically important People's Bank (AA+(lka)/Stable), has a high propensity but limited ability to provide extraordinary support to PLC if required. This is because PLC is strategically important to People's Bank; People's Bank owns 75% of PLC and has board representation; the two entities share a common brand; and PLC is associated with People's Bank's franchise. In 2013, PLC accounted for about 11% of the People's Bank group assets, and contributed about 37% of its post-tax profits. Apart from its own branches, PLC also operates 109 window offices within branches of People's Bank. It is likely that state support will flow to PLC through People's Bank due to their strong linkages. PLC's association with the People's Bank brand and therefore with the state, and the consequent reputational risk to the state should PLC fail, also supports Fitch's view. People's Bank's limited ability to provide support to PLC stems from its own 'AA+(lka)' rating, which is driven by the government of Sri Lanka's (BB-/Stable) high propensity but moderate ability to provide support to the bank under extraordinary situations. The two-notch differential between the National Long-Term Ratings of PLC and People's Bank reflects Fitch's view that timely support from the state may be constrained by regulatory restrictions between the entities (such as maximum exposure limits) or administrative delays usually seen in layered support structures. PLC's Sri Lanka rupee-denominated senior unsecured debentures are rated at the same level as PLC's National Long-Term Rating of 'AA- (lka)' as they constitute unsecured and unsubordinated obligations of the company. In a trend seen across the sector, PLC's asset quality has declined, although its asset quality indicators remain stronger than its domestic peers'. After PLC's conversion to a finance company in Nov. 2012 and its merger with former subsidiary People's Finance PLC in April 2013, deposits increased to almost half of funding. Fitch believes that as PLC's deposit base expands, its reliance on wholesale funds and therefore its refinancing risk should reduce. PLC is the largest non-bank financial institution (NBFI) in Sri Lanka in terms of assets, with a 16% share of sector assets at end-2013. Fitch believes that some rationalization of NBFIs within the People's Bank group, is possible in line with the government's master plan to consolidate the financial system. RATING SENSITIVITIES - IDRs, NATIONAL RATING AND DEBT PLC's ratings may be downgraded if People's Bank is no longer a majority shareholder in PLC, or if People's Bank's ability to provide support weakens, or if PLC's strategic importance to its parent diminishes over time. Fitch does not expect PLC's ratings to be upgraded, unless People's Bank's ratings are upgraded. A full list of rating actions follows: Long-Term Foreign-Currency IDR: affirmed at 'B+'; Outlook Stable Long-Term Local-Currency IDR: affirmed at 'B+'; Outlook Stable National Long-Term Rating: affirmed at 'AA-(lka)'; Outlook Stable Sri Lanka rupee-denominated senior unsecured debentures: affirmed at 'AA-(lka)' ********* 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 ***