/raid1/www/Hosts/bankrupt/TCRAP_Public/141107.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, November 7, 2014, Vol. 17, No. 221
Headlines
A U S T R A L I A
NEXUS ENERGY: Seven Group Extends AUD165MM Loan for 2 Weeks
R K & M EQUIPMENT: First Creditors' Meeting Set For Nov. 13
WISE WASTE: First Creditors' Meeting Set For November 12
* Senator Pushes for Creditors' Powers to Sack Dodgy Liquidators
C H I N A
NVC LIGHTING: Founder Under Probe For Embezzlement
I N D I A
ACCURATE TRANSFORMERS: CARE Revises Rating on INR109cr Loan to B+
ARVIND REMEDIES: ICRA Lowers Rating on INR277cr Term Loan to 'D'
DELTA PAPER: CRISIL Reaffirms D Rating on INR210MM Cash Credit
DHRUV EPC: ICRA Suspends B- Rating on INR5.42cr LT FB Loan
DIVINE ALLOYS: ICRA Lowers Rating on INR216.99cr Term Loan to D
GARG ISPAT: CRISIL Ups Rating on INR70MM Cash Credit to 'B'
GOLF CERAMICS: CRISIL Ups Rating on INR100MM Cash Credit to B+
HINDUSTAN GUNNY: CRISIL Assigns B+ Rating to INR100MM Cash Credit
J.K. CERAMICS: CARE Reaffirms B+ Rating on INR47.12cr Bank Loan
JAI BHARAT: CRISIL Reaffirms B Rating on INR250MM Cash Credit
JUHI ALLOYS: CARE Reaffirms B+ Rating on INR35cr LT Bank Loan
KINETA GLOBAL: CRISIL Reaffirms B+ Rating on INR550MM Bank Loan
LANCO SOLAR: ICRA Lowers Rating on INR425cr Non FB Loan to 'D'
LEARNING LINKS: CRISIL Reaffirms B+ Rating on INR65MM Cash Loan
MATANGI COTTON: CARE Revises Rating on INR0.59cr Bank Loan to B+
ME ENERGY: ICRA Suspends B+ Rating on INR6.0cr Cash Credit
NAGARJUNA STEEL: CRISIL Cuts Rating on INR140MM Cash Loan to B
NIKKA MAL: CARE Reaffirms B+ Rating on INR11cr LT Bank Loan
NORTHERN EMPIRE: CARE Assigns B- Rating to INR12.96cr Bank Loan
OSL AUTOCAR: ICRA Suspends B+ Rating on INR3.75cr Capital Loan
PALLAVARED GRANITE: CRISIL Reassigns 'C' Rating to INR50MM Loan
PCM TEA: CARE Assigns B+ Rating to INR5.61cr LT Bank Loan
PEE GEE: CRISIL Assigns 'B' Rating to INR60MM Cash Credit
PRITHIVRAJ SPINNING: CRISIL Assigns B Rating to INR153.1M LT Loan
QVC EXPORTS: CRISIL Cuts Rating on INR20MM Cash Credit to 'B+'
RAMESHWAR GINNING: CARE Assigns B+ Rating to INR5.29cr Bank Loan
S. KHODAY: CRISIL Assigns 'B-' Rating to INR90MM Cash Credit
SATYAM COMPUTER: Verdict Date Set For December 23
SEKO BEC: CRISIL Reaffirms B- Rating on INR40MM Cash Credit
SHIV SHAKTI: CARE Reaffirms B+ Rating on INR25cr LT Bank Loan
SHREE REFRIGERATIONS: CRISIL Reaffirms B+ Rating on INR55MM Loan
SIMBHAOLI SUGARS: CRISIL Reaffirms D Rating on INR3.08BB Loan
SNEHAL ENTERPRISES: CRISIL Ups Rating on INR190MM Cash Loan to B+
SPB DEVELOPERS: CRISIL Cuts Rating on INR1.91BB Term Loan to D
SUPER CONSTRUCTION: CRISIL Rates INR140MM Term Loan at 'B+'
SURYAAMBA SPINNING: CRISIL Ups Rating on INR150MM Cash Loan to B-
TAJ LEATHER: CRISIL Reaffirms D Rating on INR25MM Shipment Loan
TIRUMALA COTTON: CRISIL Assigns B Rating to INR50MM Cash Credit
VIMIT METALS: CARE Reaffirms B+ Rating on INR4.77cr Bank Loan
VINOD H: ICRA Assigns B+ Rating to INR4.25cr Cash Credit
VIRAAT FASHION: CARE Reaffirms B+ Rating on INR5.36cr Bank Loan
I N D O N E S I A
DUTA ANGGADA: Fitch Assigns 'B' LT IDR; Outlook Stable
DUTA ANGGADA: Moody's Assigns (P)B1 Corporate Family Rating
JAPFA COMFEED: S&P Revises Outlook to Neg. & Affirms 'BB-' CCR
M A L A Y S I A
KINSTEEL BHD: Gets Suspension Notice From Bursa Malaysia
N E W Z E A L A N D
INVENTIS LIMITED: Restructures Ailing New Zealand Unit
S O U T H K O R E A
S. KOREA: Banks to Lose KRW14.5T if 3 Business Group Go Insolvent
V I E T N A M
VIETNAM BANK: Fitch Ups LT IDR to 'B+', Outlook Revised to Stable
X X X X X X X X
* Large Companies with Insolvent Balance Sheets
- - - - -
=================
A U S T R A L I A
=================
NEXUS ENERGY: Seven Group Extends AUD165MM Loan for 2 Weeks
-----------------------------------------------------------
Angela Macdonald-Smith at The Sydney Morning Herald reports that
Seven Group Holdings has extended a AUD165 million loan to Nexus
Energy for two weeks as it continues to seek regulatory approval
for the troubled takeover of the debt-laden oil and gas explorer.
The extension comes as the completion date of a deed of company
arrangement for the takeover is also extended to the same date,
November 14, SMH relates. The date was originally October 31.
According to SMH, the takeover has been mired in controversy from
the start, partly because Seven Group chief executive Don Voelte
was previously the chairman of Nexus. Also troubling Nexus
shareholders is the near-zero value Seven has placed on Nexus
shares. An initial 2 cents per share offer for the equity was
blocked by shareholders, causing Nexus to be placed in
administration, and Seven has now agreed with administrators
McGrath Nicol on a takeover that places zero value on the shares,
according to SMH.
But the takeover arrangements have yet to be approved by the
Australian Securities and Investments Commission, the report
notes.
SMH says several shareholders, including the Nexus Battle group of
shareholders representing about 14 per cent of the register, have
complained to the securities regulator that the takeover is
unfair. They argue that Nexus's assets, including its stake in the
Crux gas venture led by Shell, are being undervalued by Seven, the
report relays.
However, a new independent valuation of Nexus released by McGrath
Nicol on October 31 finds that the transfer of Nexus shares to
Seven in exchange for no value to shareholders "does not unfairly
prejudice shareholders," SMH states.
The report notes that the valuation by Lonergan Edwards considers
two scenarios for its valuation of Nexus. In the scenario which
McGrath Nicol said was more relevant, which takes into account
Nexus's funding difficulties and risks, the expert values Nexus
shares at between negative 14.5 cents and negative 9.5 cents, with
a mid-point at negative 12 cents.
Even in the scenario where ongoing funding for Nexus is assumed to
be available, the mid-point valuation range for Nexus is negative
1.8 cents per share, with a high end range of 2 cents per share,
the price of Seven Group's initial offer for Nexus's equity, SMH
says.
Under the deed of company arrangement, noteholders in Nexus would
be paid 74.5 per cent of the amount owed to them. Drilling rig
owner Sedco Forex International would receive AUD30 million as
settlement for an outstanding matter with Nexus, while other
creditor claims should be paid in full, according to SMH.
ASIC has asked Nexus Battle to give feedback on the independent
expert's report by November 5, as it continues to consider whether
the deed of company arrangement can take effect.
Nexus Energy Limited (ASX:NXS) is a Melbourne-based, Australian
Stock Exchange listed oil and gas company. In 2009, Nexus
transitioned from explorer to producer with the start up of the
Longtom gas project. The company holds interests in eight permits
located offshore Australia. Operations are focused on the
Gippsland Basin, offshore Victoria and the Browse Basin, offshore
Western Australia.
McGrathNicol announced on June 12, 2014, that partners
Matthew Caddy, Tony McGrath, and Jason Preston have been appointed
joint and several Voluntary Administrators to Nexus Energy
Limited.
R K & M EQUIPMENT: First Creditors' Meeting Set For Nov. 13
-----------------------------------------------------------
Kelly-Anne Trenfield -- kelly.trenfield@fticonsulting.com -- and
John Park -- john.park@fticonsulting.com -- of FTI Consulting were
appointed as administrators of R K & M Equipment Hire Pty Ltd on
Nov. 4, 2014.
A first meeting of the creditors of the Company will be held at
The Colmslie Hotel, Corner Wynnum and Junction Roads, in
Morningside, Queensland, on Nov. 13, 2014, at 2:00 p.m.
WISE WASTE: First Creditors' Meeting Set For November 12
--------------------------------------------------------
John Cunningham -- john.cunningham@worrells.net.au -- &
Paul Nogueira -- paul.nogueira@worrells.net.au -- of Worrells
Solvency + Forensic Accountants were appointed as administrators
of Wise Waste Solutions Pty Ltd on Oct. 31, 2014.
A first meeting of the creditors of the Company will be held at
Worrells Solvency + Forensic Accountants, Suite 4, Level 3, 26
Duporth Avenue, in Maroochydore, Queensland, on Nov. 12, 2014, at
10:30 a.m.
* Senator Pushes for Creditors' Powers to Sack Dodgy Liquidators
----------------------------------------------------------------
Kirsten Robb at SmartCompany reports that creditors would have
broader powers to sack dodgy liquidators, if changes being pushed
by Nationals senator John Williams get through federal cabinet.
SmartCompany says the Australian Securities and Investments
Commission previously said it would crack down on the industry
after it received hundreds of reports of alleged misconduct
concerning registered liquidators in 2011, but the move by Senator
Williams would see creditor frustration turned into legislation.
According to SmartCompany, Fairfax reported that the senator is on
a mission to shake up the insolvency industry and has gained
support from assistant Treasurer Mathias Cormann, who has assured
him the reforms will soon go through cabinet.
The report relates that the proposed measures include:
* an increased power for creditors to sack or remove
liquidators through a creditor's resolution;
* the power to suspend or ban a liquidator; and
* the placing of onus on insurance companies to notify
ASIC if a liquidator's professional indemnity insurance
has expired.
The liquidator would have the right to appeal the decisions
through the Administration Appeals Tribunal, SmartCompany adds.
SmartCompany says Senator Williams is also calling for a hike in
the cost of a liquidator's licence, potentially charging
liquidators thousands of dollars a year. The user-pays model will
see the money directed back into ASIC, according to Fairfax,
raising revenue of AUD10 million a year, SmartCompany relays.
However, Jarrod Sierocki -- jarrod@insolvencyguardian.com.au --
director of consultancy firm Insolvency Guardian, told
SmartCompany these proposed reforms don't get to the core of the
problems in the industry.
According to SmartCompany, Mr. Sierocki said liquidators are
already required to pay a fee to register and creditors have an
existing ability to sack liquidators they are unhappy with.
"Creditors can sack them now, at the first meeting of the
voluntary administration or liquidation," SmartCompany quotes
Mr. Sierocki as saying. "The only time it can't is in court
appointed liquidation."
SmartCompany adds that Mr. Sierocki said the real problem which
needs to be addressed is the exorbitant fees administrators charge
during a period of voluntary administration and liquidation.
He said administrators usually add AUD25,000 to AUD50,000 to the
cost of the administration, further crippling an insolvent
business and the creditor's ability to be repaid, SmartCompany
relates.
"They are an essential part of the process, but liquidators and
administrators fees are just far too high. We need to look at the
fee structure itself," Mr. Sierocki, as cited by SmartCompany,
said.
=========
C H I N A
=========
NVC LIGHTING: Founder Under Probe For Embezzlement
--------------------------------------------------
Toh Han Shih at the South China Morning Post reports that Wu
Changjiang, the founder of NVC Lighting Holding, is being
investigated for embezzlement in Huizhou, Guangdong.
Mr. Wu, locked in a power struggle with chairman Wang Donglei, was
voted out of the board of the nation's largest lighting
manufacturer at an extraordinary shareholders' meeting in August,
the report recalls.
According to SCMP, the company's Weibo microblog showed an image
of what appeared to be a document of Huizhou police announcing
they were investigating Mr. Wu for embezzling funds.
"We firmly believe the law is just," the post, as cited SCMP,
said.
SCMP relates that news website Southcn.com reported it had
obtained confirmation from police concerning the investigation.
Asked about the investigation, NVC's chief financial officer
Anthony Tan Ying told the South China Morning Post in Putonghua:
"I am not clear about this."
SCMP relates that NVC on November 3 announced it regained physical
control of its former headquarters in Chongqing on October 22. NVC
had on August 20 shifted its headquarters to Huizhou, where it
also has a factory.
Production at the Chongqing factory has remained suspended since
August 8. Mr. Wang said at the time Mr. Wu was running the
Chongqing operations, SCMP relates.
=========
I N D I A
=========
ACCURATE TRANSFORMERS: CARE Revises Rating on INR109cr Loan to B+
-----------------------------------------------------------------
CARE revises the ratings assigned to the bank facilities of
Accurate Transformers Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 109 CARE B+ Suspension
revoked and rating
revised from
CARE BB
Short-term Bank Facilities 154 CARE A4 Suspension
revoked and rating
reaffirmed
Rating Rationale
The revision in ATL's ratings takes into consideration the weak
liquidity position of the company attributable to the increasing
working capital intensity of the business as reflected by
elongation in the operating cycle with high average collection
period. The ratings also factor in the deteriorated financial risk
profile of the company characterised by high overall gearing and
weak debt coverage indicators.
The ratings continue to be constrained by its moderate scale of
operations, concentrated customer profile with work orders limited
to state power utilities. The ratings also take cognizance of the
competitive and fragmented nature of the transformer industry and
ATL's exposure to raw material price volatility, though limited
due to price-escalation clause in the contracts.
The ratings, however, continue to take comfort from the experience
of the promoters in the transformer industry and healthy order
book position.
Going forward, the ability of the company to achieve the envisaged
revenue and profitability while effectively managing its working
capital cycle shall be the key rating sensitivities.
ATL, promoted by Mr CL Sharma, was incorporated as a private
limited company on April 18, 1988, to manufacture transformers. In
1994, ATL was converted into a public limited company. ATL is
engaged in the manufacturing of power & distribution transformers
up to 160 MVA. Its manufacturing facilities are located at
Ghaziabad, Surajpur, Sikandrabadin, Uttar Pradesh and Haridwar,
Dehradun in Uttarakhand.
These transformers are mainly supplied to various state power
utilities including those of Uttar Pradesh, Maharashtra,
Rajasthan, Punjab, etc, on a made-to-order basis. The company also
undertakes various turnkey contracts for setting up
electrification infrastructure in villages under the Restructured
Accelerated Power Development and Reforms Programm (R-APDRP)
scheme of the government.
ATL during FY14 (provisional) (refers to the period April 1 to
March 31), reported a total operating income of INR225 crore
during with a PBILDT and PAT of INR31.29 crore and INR1.37crore,
respectively.
ARVIND REMEDIES: ICRA Lowers Rating on INR277cr Term Loan to 'D'
----------------------------------------------------------------
ICRA has revised the long term rating outstanding on the INR277.0
crore term loan facilities and the INR216.00 crore fund based bank
facilities of Arvind Remedies Limited from [ICRA]BB+ to [ICRA]D.
ICRA has also revised the short term rating outstanding on the
INR67.00 crore short term non fund based facilities of ARL from
[ICRA]A4+ to [ICRA]D.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term loans 277.0 [ICRA]D/revised from
[ICRA]BB+
Fund Based limits 216.0 [ICRA]D/revised from
[ICRA]BB+
Non Fund Based limits 67.0 [ICRA]D/revised from
[ICRA]A4+
The revision in ratings reflects the delays in debt servicing by
the company.
ARL's liquidity position has been constrained by the deterioration
in working capital position of the company, despite the steady
growth in revenues and stable margins. Further, lower than
expected utilization levels at the recently expanded capacities,
delays in proposed equity infusion, additional capital expenditure
incurred and increasing repayment obligations have resulted in
tight cash flows and subsequent delays. The gearing levels of ARL
remains high owing to the large capital investments made during
the past few fiscals and high working capital intensity in the
business.
ARL has a long standing presence in the domestic formulation
segment with a diversified product base and wide market reach. The
company enjoys an established position in the domestic
institutional market segment and improving presence in the branded
ethical market. Going forward, the ability of the company to
enhance utilization levels of its expanded capacity amidst intense
competition, manage its working capital position better and also
the timeliness of the proposed equity infusion would be critical
factors to improve its credit profile.
ARL was incorporated in the year 1988 by Mr. Arvind Shah, who has
more than two decades of experience in the Pharmaceutical
industry. ARL is engaged in the manufacturing of pharmaceutical
formulations such as tablets, capsules (including soft gels),
ointments and liquids. ARL markets its products in the
institutional (primarily government organizations) and ethical
segments, with institutional segment contributing to about 70% of
the total revenues. ARL has products in both the Allopathic and
Ayurvedic segments, with contribution from Ayurvedic segment being
minimal at present. ARL currently has three manufacturing
facilities located near Chennai, Tamil Nadu. ARL holds 63.75%
stake in Coronet Labs Private Limited (CLPL), which has a
formulation unit at Roorkee (Uttarakhand ) and is in the process
of establishing an unit in Irrungattukottai, Tamil Nadu.
ARL has reported net profit of INR26.1 crore on an operating
income of INR258.6 crore during the first quarter ended June 30,
2014, as against net profit of INR16.5 crore on an operating
income of INR183.8 crore during the corresponding period in the
previous fiscal. For the fiscal 2013-14, ARL reported net profit
of INR58.9 crore on an operating income of INR911.1 crore.
DELTA PAPER: CRISIL Reaffirms D Rating on INR210MM Cash Credit
--------------------------------------------------------------
CRISIL's ratings on the bank facilities of Delta Paper Mills Ltd.
continue to reflect instances of delay by DPML in servicing its
debt; the delays have been caused by the company's weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 80 CRISIL D (Reaffirmed)
Cash Credit 210 CRISIL D (Reaffirmed)
Letter of Credit 160 CRISIL D (Reaffirmed)
Long Term Loan 190 CRISIL D (Reaffirmed)
Overdraft Facility 50 CRISIL D (Reaffirmed)
DPML has a below-average financial risk profile marked by modest
net worth, high gearing, and average debt protection measures. The
company has large working capital requirements, is exposed to
intense competition in the paper manufacturing industry, and its
profitability margins are susceptible to volatility in raw
material prices. However, DPML benefits from its established
presence in the paper industry.
DPML manufactures writing and printing paper, including creamwove,
white printing, offset, and maplitho paper. The company has
installed capacity to manufacture 51,000 tonnes of paper per
annum. The company also has a 9.9-megawatt power generation plant
and a plant for recovery of caustic soda from black liquor.
DPML is a part of the Laila group of companies, which is engaged
in diverse businesses including sugar, paper, nutraceuticals, and
education.
DHRUV EPC: ICRA Suspends B- Rating on INR5.42cr LT FB Loan
----------------------------------------------------------
ICRA has suspended the '[ICRA]B-' rating assigned to the INR5.42
crore long term fund based facilities and [ICRA]A4 rating assigned
to the INR3.50 crore short term non fund based facilities of Dhruv
EPC Solutions Pvt Limited. The suspension follows ICRA's inability
to carry out a rating surveillance in the absence of the requisite
information from the company.
Incorporated in January 2011, Dhruv EPC Solution Private Limited
(DESPL) is an engineering company engaged in the fabrication of
process equipments catering to the Power, Chemical, Fertilizer,
Pharmaceutical and other associated industries. The major products
manufactured by the company include pressure vessels, storage
tanks, flanges, valves and other fabricated process equipment. The
company has its fabrication facilities at Baroda, Gujarat. DESPL
is promoted by Mr. Rajesh Dhruv, who has also promoted Precise
Engineers (established in 1994), which is involved in
manufacturing of bellows, expansion joints and dismantling joints.
DIVINE ALLOYS: ICRA Lowers Rating on INR216.99cr Term Loan to D
---------------------------------------------------------------
ICRA has revised downwards the long term rating assigned to the
INR216.99 crore term loan of Divine Alloys & Power Co. Limited
from [ICRA]C to [ICRA]D.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits 216.99 [ICRA]D downgraded
(Term Loan)
The rating action takes into account the recent delays made by the
company in meeting its debt service obligations.
Incorporated in 2004, DAPCL is engaged in the manufacturing of
mild steel ingot (90,000 MTPA) and pig iron (21,000 MTPA). The
manufacturing facilities of the company are located at
Kaushalgarh, Jharkhand. The company has also set up an integrated
steel plant with a capacity of 350,000 metric tonne per annum
(MTPA) of mild steel structural items in 2013-14.
GARG ISPAT: CRISIL Ups Rating on INR70MM Cash Credit to 'B'
-----------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Garg Ispat Udyog Ltd 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 70 CRISIL B/Stable (Upgraded
from 'CRISIL B-/Stable')
Letter of Credit 30 CRISIL A4 (Reaffirmed)
Proposed Long Term 20 CRISIL B/Stable (Upgraded
Bank Loan Facility from 'CRISIL B-/Stable')
The rating upgrade reflects the improvement in GIUL's business
risk profile, driven by the diversification in its product
portfolio and enhanced profitability margins. The company has
diversified into products such as cable drums, scaffolding,
conveyor belts, mixer tubs, and engineering crans. Despite a
decline in operating income, the operating margin improved to 6.9
per cent in 2013-14 (refers to financial year, April 1 to
March 31) from 4.3 per cent in 2012-13, because of the company's
initiatives to undertake high-margin projects. GIUL's financial
risk profile has improved because of its enhanced liquidity, with
prepayment of the term loan in May 2014. The company's liquidity
is supported by equity infusion of INR9 million in 2014-15 by its
promoters.
The ratings reflect GIUL's fluctuating operating profitability and
revenue, and modest financial risk profile. The ratings also
factor in the company's modest scale of operations and exposure to
intense competition. These rating weaknesses are partially offset
by the extensive industry experience of GIUL's promoters.
Outlook: Stable
CRISIL believes that GIUL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the company significantly
improves its operating profitability, thus enhancing its debt
protection metrics. Conversely, the outlook may be revised to
'Negative' if GIUL's financial risk profile deteriorates because
of decline in profitability or sizeable debt-funded capital
expenditure.
GIUL was established in 1987 by the Gupta family. The key
promoters are Mr. J D Gupta and Mr. Manish Gupta. GIUL
manufactures steel and iron tubes, pipes, mild steel electric
resistance welding black and galvanised pipes, steel tubes and
pipes, scaffolding and galvanised iron pipes, jet pumps, and drum
cables at its unit in Bhiwadi (Rajasthan).
GOLF CERAMICS: CRISIL Ups Rating on INR100MM Cash Credit to B+
--------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Golf Ceramics Ltd (GCL) 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
---------- --------- -------
Bank Guarantee 15 CRISIL A4 (Reaffirmed)
Cash Credit 100 CRISIL B+/Stable (Upgraded
from 'CRISIL B-/Stable')
Proposed Bank 11.5 CRISIL B+/Stable (Upgraded
Guarantee from 'CRISIL B-/Stable')
The rating upgrade reflects CRISIL's belief that GCL's liquidity
will continue to improve over the medium term following the
stabilisation of its operations. The company is expected to
generate net cash accruals of around INR40 million against
repayment obligations of around INR2 million in 2014-15 (refers to
financial year, April 1 to March 31). Its average bank limit
utilisation was 88 per cent during the 12 months through September
2014. With no major debt-funded capital expenditure (capex) plan
over medium term, the accruals are expected to support the
company's working capital requirements and, hence, the utilisation
of bank limits is expected to remain moderate. GCL recently
acquired Balaji Electrical Insulators Pvt Ltd (Balaji) and had
around INR60 million of advances extended to it as on March 31,
2014. The funding support to Balaji is, however, not expected to
increase further and any larger than expected support will remain
a rating sensitivity factor.
The ratings continue to reflect the susceptibility of GCL's
margins to volatility in raw material prices, and its working-
capital-intensive operations. These rating weaknesses are
partially offset by the extensive experience of the company's
promoters in the sanitaryware industry.
Outlook: Stable
CRISIL believes that GCL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the company's financial
risk profile improves significantly, backed by substantial
accruals and/or equity infusion. Conversely, the outlook may be
revised to 'Negative' if GCL's liquidity deteriorates on account
of funding support provided to Balaji, a considerable increase in
its working capital requirements, or large debt-funded capex.
Established in 2006, GCL manufactures vitreous sanitaryware such
as basins and closets. The company commenced commercial operations
in April 2008 after completing the construction of its plant.
Before it commenced the manufacturing operations, GCL traded in
tiles and sanitaryware.
GCL, on a provisional basis, reported profit after tax (PAT) of
INR21.8 million on net sales of INR539.8 million for 2013-14; it
had reported PAT of INR19.5 million on net sales of INR478.8
million for 2012-13.
HINDUSTAN GUNNY: CRISIL Assigns B+ Rating to INR100MM Cash Credit
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Hindustan Gunny Bags and Allied Suppliers.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 100 CRISIL B+/Stable
The rating reflects HGBAS's large working capital requirements and
modest scale of operations. These rating weaknesses are partially
offset by the extensive experience of the firm's promoters in the
packaging industry, its established customer linkages, and its
above-average financial risk profile, marked by moderate capital
structure and debt protection metrics.
Outlook: Stable
CRISIL believes that HGBAS will continue to benefit over the
medium term from the extensive industry experience of its
promoters and its established clientele. The outlook may be
revised to 'Positive' if the firm improves its scale of operations
on a sustainable basis, backed by efficient working capital
management, leading to better liquidity. Conversely, the outlook
may be revised to 'Negative' in case of deterioration in HGBAS's
liquidity, most likely due to low cash accruals or a stretch in
its working capital cycle.
HGBAS, established in 1984, is partnership firm promoted by the
Bafna family. The firm sells poly propylene bags, which are
expected to contribute around 95 per cent of its revenue in 2014-
15 (refers to financial year, April 1 to March 31), and gunny
bags, which will contribute the rest; it mainly caters to the
sugar industry. The firm's day-to-day operations are managed by
its partners, Mr. Bhushan Bafna and Mr. Sudarshan Bafna.
J.K. CERAMICS: CARE Reaffirms B+ Rating on INR47.12cr Bank Loan
---------------------------------------------------------------
CARE reaffirms rating assigned to bank facilities of J.K. Ceramics
Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 47.12 CARE B+ Reaffirmed
Rating Rationale
The rating of J.K. Ceramics Private Limited (JKCPL) continues to
remain constrained on account its small scale of operation
in a highly fragmented and competitive guar gum industry with low
profitability and moderately leveraged capital structure. The
rating is further continued to remain constrained on account of
susceptibility of its profitability to fluctuation in agro-based
raw material prices and foreign exchange rate fluctuation and
seasonality associated with the availability of agro commodities.
The rating, however, favourably takes into account the vast
experience of the promoters in the agro processing industry
and its proximity to guar producing region of Rajasthan.
Improvement in the overall scale of operations and profitability
margins in light of volatile raw material prices along with
improvement in capital structure is the key rating sensitivity.
Bikaner (Rajasthan) based JKCPL, incorporated in 1984, is promoted
by Mr Shreeram Agarwal along with his two sons, Mr Dinesh Kumar
Goyal and Mr Satish Kumar Agarwal. JKCPL was originally
incorporated in the name of Ramkali Oil Industries Private Limited
(ROIPL) and was renamed to JKCPL in 1996. Initially, the company
was into the business of manufacturing of glazed titles which was
discontinued in 1999. Thereafter, from 1999 onwards, it entered
into the business of processing of guar refined dall, churi korma,
edible oil and oil cake of mustard and groundnut. Besides, the
company also does trading of chana dall, groundnut refined oil and
mustard seeds.
In FY12 (refers to period from April 1 to March 31), the company
entered into manufacturing of industrial guar gum powder by
setting up a Strategic Business Unit (SBU), Jugal Hydrocoloids
(JHD), within the company. The plant has installed capacity of 50
Tonnes Per Day (TPD) for guar gum dall, 32 TPD for guar gum powder
and 5000 Quintals Per Annum (QPA) for oil unit as on
March 31, 2014.
The promoter family of JKCPL has also promoted, Jugal Kishore
Vanaspati Products Private Limited (JKVP; incorporated in
1987, rated: CARE B+ in March, 2014) which is engaged in the
business of manufacturing of refined groundnut oil and oil
cakes and sells groundnut oil under the brand name of "Chandi
Sikka".
During FY14 (A) (refers to the period April 1 to March 31), JKCPL
has reported a total operating income of INR57.70 crore
as against INR99.33 crore during FY13 (A) and PAT of INR0.98 crore
during FY14 as against INR 0.90 crore during FY13 (A).
JAI BHARAT: CRISIL Reaffirms B Rating on INR250MM Cash Credit
-------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Jai Bharat
Rice Mills (Partnership) continues to reflect JBRM's weak
financial risk profile, marked by a high gearing and below-average
debt protection metrics, driven by large working capital
requirements.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 250 CRISIL B/Stable (Reaffirmed)
Proposed Long Term 110 CRISIL B/Stable (Reaffirmed)
Bank Loan Facility
The rating also reflects the firm's modest scale of operations in
a highly fragmented industry. These rating weaknesses are
partially offset by the extensive experience of JBRM's promoters
in the rice milling business.
Outlook: Stable
CRISIL believes that JBRM will continue to benefit over the medium
term from its promoters' extensive experience in the rice milling
business. The outlook may be revised to 'Positive' if JBRM's sales
and profitability are better than expected, leading to substantial
cash accruals, or in case of capital infusion into the firm by its
partners, leading to improvement in its financial risk profile.
Conversely, the outlook may be revised to 'Negative' in the event
of decline in JBRM's revenue or profitability, or any capital
withdrawal from the firm by its partners, or if JBRM undertakes
substantial debt-funded expansions, leading to deterioration in
its financial risk profile, especially in its liquidity.
JBRM processes and sells basmati rice. It has a milling facility
in Fazilka (Punjab). It is currently managed by Mr. Surinder Pal
and Mr. Sukhwinder Singh.
JBRM reported, on a provisional basis, a book profit of INR5.0
million on net sales of INR785 million for 2013-14 (refers to
financial year, April 1 to March 31), against a book profit of
INR4.7 million on net sales of INR503 million for 2012-13.
JUHI ALLOYS: CARE Reaffirms B+ Rating on INR35cr LT Bank Loan
-------------------------------------------------------------
CARE reaffirms the ratings assigned to the lt bank facilities of
Juhi Alloys Limited & withdraws the rating of ST bank facilities.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 35 CARE B+ Reaffirmed
Rating Rationale
The rating is constrained by the elevated financial risk profile
characterized by low profitability margins, high working capital
intensive operations and volatility in sales in the recent years.
The highly fragmented nature of the industry and inherent cyclical
nature of the steel industry further impacts the company's
financials. The rating also takes into account the significant
exposure of Juhi Alloys Limited (JAL) to group companies.
However, the rating derives strength from the experienced
promoters and established track record in the steel industry
and established operations with regionally known brand name
"Rimjhim".
The ability of the company to consistently scale up the operations
with improvement in the profitability margins and effective
working capital management remain the key rating sensitivities.
Incorporated on July 12, 1990, Juhi Alloys Ltd is a part of Kanpur
based Rimjhim group of companies managed by Shri Yogesh Agarwal &
family relatives. JAL is engaged in manufacturing and sale of
variety of Thermo mechanically Treated (TMT) Bars, SS Flats and
Rounds products along with dealing in trading of billets, ingots
etc. The products of the company find application mainly in
construction activities. The company markets its products through
mix of direct sales to builders and sales through traders.
The manufacturing facilities of the company are located in the
Hamirpur district of Uttar Pradesh (UP) with an installed capacity
of 90,000 (three shift of 30,000) MTPA as on March 31, 2014.
Presently, the company operates in two shifts.
During FY14 (refers to the period April 1 to March 31), total
operating revenues of the company increased to INR144.80 crore
against INR133.23 crore in FY13. PAT increased to INR0.65 crore in
FY14 from INR0.54 crore in FY13.
KINETA GLOBAL: CRISIL Reaffirms B+ Rating on INR550MM Bank Loan
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Kineta Global Limited
(KGL; part of the Kineta group) continue to reflect the KGL
group's limited financial flexibility on account of substantial
amount of loans and advances extended by it to its affiliates and
the group's large working capital requirements. The ratings of the
group are also constrained on account of its below-average debt
protection metrics, the susceptibility of its operations to
changes in government regulations, and the susceptibility of its
profit margins to volatility in iron ore prices. These rating
weaknesses are partially offset by the benefits that the group
derives from its promoters' extensive industry experience.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 250 CRISIL B+/Stable (Reaffirmed)
Export Packing 400 CRISIL A4 (Reaffirmed)
Credit
Proposed Long Term 550 CRISIL B+/Stable (Reaffirmed)
Bank Loan Facility
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of KGL and its wholly owned subsidiary -
Kineta International Pte Ltd (KIPL). These two companies are
together referred to as the Kineta group.
Outlook: Stable
CRISIL believes that the Kineta group will continue to benefit
over the medium term from its promoters extensive industry
experience. The outlook may be revised to 'Positive' if the group
realises a substantial portion of its loans and advances given to
its affiliates, or there is a sustained improvement in its working
capital management. Conversely, the outlook may be revised to
'Negative' in case of steep decline in the group's profitability
margin, or a further increase in its funding support to its
affiliates.
KGL (earlier known as Kineta Minerals and Metals Ltd), was
established by Mr. V Balashowry in 2006. The company trades in
iron ore, and is based in Hyderabad.
KIPL was set up in 2008 as a wholly-owned subsidiary of KGL. KIPL
also trades in iron ore, and is based in Singapore.
LANCO SOLAR: ICRA Lowers Rating on INR425cr Non FB Loan to 'D'
--------------------------------------------------------------
ICRA has downgraded the long-term rating assigned to the INR150
Crore of fund based facilities of Lanco Solar Energy Private
Limited from [ICRA]C to [ICRA]D. ICRA has also downgraded the
short term rating assigned to the INR425 Crore of non-fund based
facilities LSEPL from [ICRA]A4 to [ICRA] D.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits 150.00 [ICRA]D Downgraded from
[ICRA]C
Non Fund Based Limits 425.00 [ICRA]D Downgraded from
[ICRA]A4
ICRA's rating action factors in the delays in receipt of payment
from one of its key customers Maharashtra State Power Generation
Company (Mahagenco) which has resulted in stretched liquidity
position of the company as reflected by LC devolvement and
overutilization of funds based limits. Further, the financial
performance of the company has deteriorated significantly in FY14
due to delays in execution of two large orders (of 100 MW) which
coupled with fixed operating costs and interest charges resulted
in significant net loss of INR96.15 crore in FY 2014. The high
levels of outside liabilities comprising interest bearing-customer
advances and buyer's credit coupled with large losses have
resulted in weakening of capitalization and coverage indicators of
the company in FY 2014.
Further, the present order book of LSEPL is heavily dependent on
two large projects which increases concentration risk and concerns
on the future revenue visibility. Both these projects continue to
face design related issues and problems in availability of heat
transfer fluid (a key component in solar thermal plant), resulting
in high execution risks in these projects. These projects have
sought an extension from the central government and a revision in
tariff on grounds of lower than estimated DNI (Direct Normal
Irradiance). The rating also factors in the weak financial health
and significant funding commitments of the promoter company, Lanco
Infratech Limited (LITL) which has weakened the funding support to
LSEPL in case of any funding gaps.
Nevertheless, ICRA takes note of LSEPL's established position in
the solar EPC space and sourcing of equipments from reputed global
suppliers with back to back warranties that mitigates contingency
risks.
Going forward timely recovery of payment from Mahagenco and
LSEPL's ability to execute the current order book without
incurring time & cost overruns while protecting its profit margins
and enforcing a stricter payment collection mechanism would be key
sensitivities.
Lanco Solar Energy Private Limited is a 100% subsidiary of Lanco
Infratech Limited. LSEPL was established in June 2009 and is
engaged in providing design & engineering, procurement of
equipments and complete construction of solar power projects. The
company has so far executed turnkey EPC contracts for ~250.0 MW
solar power projects located majorly in Rajasthan, Gujarat and
Maharashtra. The company presently has an order book of around 250
MW which comprises mainly 200 MW of two solar thermal projects
(100 MW each) being developed for a Lanco group company and a
Lanco group associate company in Rajasthan.
In FY 2014 the company reported an operating income of INR259.49
Crore and net loss of INR96.15 Crore against an operating income
of INR1024.52 Crore and PAT of INR14.63 Crore in FY 2013.
LEARNING LINKS: CRISIL Reaffirms B+ Rating on INR65MM Cash Loan
---------------------------------------------------------------
CRISIL has reaffirmed its ratings on the bank facilities of
Learning Links Publishing House Private Limited at 'CRISIL
B+/Stable' while assigning the short term rating at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 65 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 30 CRISIL B+/Stable
Letter of Credit 5 CRISIL A4
CRISIL's ratings on the bank facilities of Learning Links
Publishing House Pvt Ltd (LLPL) continue to reflect LLPL's highly
working-capital-intensive and small scale of operations. These
rating weaknesses are partially offset by the extensive experience
of LLPL's promoters in the publishing industry, and its moderate
financial risk profile, marked by moderate gearing and moderate
debt protection metrics.
Outlook: Stable
CRISIL believes that LLPL 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 increase in the company's revenue while it maintains its
operating margin, or if its working capital management improves.
Conversely, the outlook may be revised to 'Negative' if LLPL's
capital structure deteriorates, most likely due to lower-than-
expected margins or a substantial increase in its working capital
requirements.
Update
LLPL registered an 18 per cent year-on-year growth in its revenue
to around INR177 million in 2013-14 (refers to financial year,
April 1 to March 31); the revenue growth was driven by the
addition of new book sellers. The company's operating margin has
remained largely within 10 to 11 per cent in the past three years
due to intense competition in a highly fragmented industry.
LLPL's operations are highly working capital intensive as
reflected in its estimated gross current assets (GCAs) of 384 days
as on March 31, 2014; the GCA days have been at similar levels in
the past. The high GCA days are driven by the company's large
inventory of around 121 days and receivables cycle of 267 days.
Its average bank limit utilisation has been high at around 94 per
cent during the 12 months ended August 31, 2014.
LLPL's net worth is estimated to have remained small at around
INR35.6 million as on March 31, 2014. The company has contracted
large debt for funding its working capital requirements; this,
coupled with a small net worth, resulted in high gearing of around
2.24 times as on March 31, 2014.
LLPL reported a profit after tax (PAT) of INR4.7 million on net
sales of INR177.6 million for 2013-14, as against a PAT of INR4.0
million on net sales of INR150.6 million for 2012-13.
LLPL was incorporated in 2008. The company publishes education
text books for the Central Board of Secondary Education (CBSE),
the Indian Certificate of Secondary Education (ICSE), and various
state boards. It is promoted by Mr. R N Malhotra and his wife Mrs.
Suman Malhotra.
MATANGI COTTON: CARE Revises Rating on INR0.59cr Bank Loan to B+
----------------------------------------------------------------
CARE revises/reaffirms ratings assigned to the bank facilities of
Matangi Cotton Industries.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 0.59 CARE B+ Revised from
CARE B
Long-term/Short-term Bank 14.00 CARE B+/CARE A4
Facilities Revised from
CARE B/CARE A4
Rating Rationale
The revision in the long-term rating assigned to the bank
facilities of Matangi Cotton Industries is primarily on
account of healthy growth in the total operating income (TOI),
stable profit margins during FY14 (refers to the period April
1 to March 31) along with an improvement in the capital structure
and debt coverage indicators as on March 31, 2014.
The ratings further continue to be constrained by 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.
The ratings, however, continues to draw strength from the wide
experience of the partners in cotton ginning and pressing
business with location advantage in terms of proximity to the
cotton seed growing regions in Gujarat.
The ability of MCI to improve its profit margins, capital
structure and better working capital management in light of the
competitive nature of the industry remain the key rating
sensitivities.
Bhavnagar-based (Gujarat) MCI is a partnership firm established in
2008. MCI currently has six partners with an unequal profit and
loss sharing agreement among them. MCI is primarily engaged in
cotton ginning & pressing activities with an installed capacity of
250 cotton bales per day and 80 MT per day of cotton seeds as on
March 31, 2014 and operates from its sole manufacturing facility
located at Amreli (Gujarat). MCI deals in Shankar- 6 cotton which
is being sourced through local farmers from Gujarat.
During FY14, MCI reported a TOI of INR76.95 crore and PAT of
INR0.04 crore as against TOI of INR58.63 crore and PAT of
INR0.04 crore during FY13. Furthermore during H1FY15, MCI has
reported a TOI of INR55 crore.
ME ENERGY: ICRA Suspends B+ Rating on INR6.0cr Cash Credit
----------------------------------------------------------
ICRA has suspended [ICRA]B+ rating assigned to the INR6.00 crore,
long term fund based facilities & [ICRA]B+/[ICRA]A4 rating to the
INR6.50 crore, long term/short term, non fund based facilities of
ME Energy Private Limited. The suspension follows ICRA's inability
to carry out a rating surveillance in the absence of the requisite
information from the company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term, fund based 6.00 [ICRA]B+ Suspended
limits - Cash credit
Long term/short term, 6.50 [ICRA]B+/[ICRA]A4
non fund based limits Suspended
Incorporated in 1998, MEPL started its operations as "Maxheat
Engineering Private Limited". MEPL is in the field of Design,
Manufacture and Installation of Energy Saving Projects, Heating
and Cooling Systems and Equipment. The company provides customized
solution as per customer's requirement wherein design is developed
by in-house engineers. MEPL is approved by reputed customers like
Nuclear Power Corporation of India (NPCIL), Uhde India and others
for supplying energy saving systems. In FY13, Helix Investment
acquired 36.36% stake in the company, via issue of fresh shares.
Mr. Vijayshankar Kartha, the founder promoter is the chairman and
managing director of the company. The board of director includes
Mr. Kartha, Mr. Bahirgonde and Mr. David Danziger (nominated by
Helix Investments). All three directors are engineering by
qualification and have substantial experience in the power
industry.
NAGARJUNA STEEL: CRISIL Cuts Rating on INR140MM Cash Loan to B
--------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Nagarjuna Steel Pvt Ltd (NSPL; formerly, Nagarjuna Ispat Pvt
Ltd) to 'CRISIL B/Stable' from 'CRISIL B+/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 140 CRISIL B/Stable (Downgraded
from 'CRISIL B+/Stable')
The rating downgrade reflects the deterioration in NSPL's
financial risk profile, driven by its large working capital
requirements. During 2013-14 (refers to financial year, April 1 to
March 31), the company extensively relied on bank borrowings to
fund its incremental working capital requirements. Hence, its
total outside liabilities to tangible net worth ratio and debt
protection metrics deteriorated. However, NSPL's financial risk
profile could improve over the medium term, with the promoter's
proposed equity infusion.
The ratings reflect NSPL's weak financial risk profile and the
geographic concentration in its revenue profile. These rating
weaknesses are partially offset by the extensive experience of the
company's promoter in the construction material trading segment.
Outlook: Stable
CRISIL believes that NSPL 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 improves its
capital structure with sizeable cash accruals or equity infusion.
Conversely, the outlook may be revised to 'Negative' if NSPL's
financial risk profile deteriorates, most likely because of a
decline in its revenue and profitability, or large debt-funded
capital expenditure.
NSPL, incorporated in 2009, trades in steel and cement of JSW
brand. Based out of Hyderabad, the company is promoted by Mr.
Mahender Reddy.
NSPL reported a net loss of INR3652 on net sales of INR1017.5
million for 2013-14, as against a profit after tax of INR0.5
million on net sales of INR582.4 million, for 2012-13.
NIKKA MAL: CARE Reaffirms B+ Rating on INR11cr LT Bank Loan
-----------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Nikka Mal Pyare Lal Jain.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 11.00 CARE B+ Reaffirmed
Short-term Bank Facilities 3.00 CARE A4 Reaffirmed
Rating Rationale
The ratings of the bank facilities of Nikka Mal Pyare Lal Jain
(NMP) continue to be constrained by its short track record of
operations, low profitability margins, leveraged capital
structure, weak coverage indicators and elongated operating
cycle. The ratings are further constrained by the constitution of
the entity as a partnership firm and its presence in a highly
fragmented industry.
The ratings, however, continue to take comfort from the experience
of the partners and positive outlook of gems and jewellery
industry.
Going forward, the ability of NMP to increase its scale of
operations while improving its profitability margin and capital
structure will be the key rating sensitivities.
Nikka Mal Pyare Lal Jain, a partnership concern, was established
in April 2010. However, NMP commenced its operations from June
2011. The firm is engaged in wholesale and retail trading of gold
and diamond jewellery. NMP has its retail outlet/showroom located
at Ludhiana, Punjab. The firm procures gold and diamond jewellery
from wholesalers and manufacturers in Mumbai, Delhi, Surat and
local market.
NORTHERN EMPIRE: CARE Assigns B- Rating to INR12.96cr Bank Loan
---------------------------------------------------------------
CARE assigns 'CARE B-' rating to the bank facilities of Northern
Empire.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 12.96 CARE B- Assigned
Rating Rationale
The rating is primarily constrained by the short track record and
small scale of operations of M/s Northern Empire, weak debt
coverage indicators as on March 31, 2014 (provisional; refers to
the period April 01 to March 31), withdrawal of the proprietor
capital and unsecured loans infused by the friends & family in
FY14 (provisional) and working capital intensive nature of
operations with instances of overutilization of the cash credit
limit. The rating is further constrained by high competition from
the organized & unorganized players in the industry, geographical
concentration risk arising from a single showroom location and
constitution of the entity as a proprietorship concern. The
rating, however, derives strength from the significant revenue
growth in the past, long track record of the group in the same
business and high brand recall enjoyed by the group in Chandigarh
and near-by areas.
The ability of the firm to profitably scale up its operations
while maintaining its capital structure and managing the
working capital requirement going forward shall remain the key
rating sensitivities.
M/s Northern Empire is a proprietorship firm established in the
year 2009 by Mr Varun Gupta. The firm is engaged in the
business of selling of furniture and allied products at its
showroom (by the name 'Glass Palace') on the Chandigarh-Ambala
Highway. Mr Ajay Gupta (father of Mr Varun Gupta) and his brother
Mr Subhash Gupta have been engaged in the business of furniture
trading for around five decades. They have two showrooms (one in
Chandigarh and the other in New Delhi) both by the name 'Glass
Palace' (managed as two different entities) which are engaged in
the similar line of business.
In FY14 (Provisional) NE reported a PAT of INR0.62 crore on a
total income of INR31.51 crore as against PAT of INR0.50
crore on a total income of INR21.17 crore in FY13.
OSL AUTOCAR: ICRA Suspends B+ Rating on INR3.75cr Capital Loan
--------------------------------------------------------------
ICRA has suspended the [ICRA]B+ rating assigned to the INR2.25
crore term loan & INR3.75 crore fund based working capital
facilities of OSL Autocar Private Limited. The suspension follows
ICRA's inability to carry out a rating surveillance in the absence
of the requisite information from the company.
PALLAVARED GRANITE: CRISIL Reassigns 'C' Rating to INR50MM Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL C' rating to the long-term bank
facilities of PallavaRED Granite Pvt Ltd (PGPL; part of the
Pallava group); these facilities were earlier short-term
facilities, which were rated 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 30 CRISIL C (Reassigned)
Bill Discounting 50 CRISIL C (Reassigned)
Letter of Credit 5 CRISIL C (Reassigned)
Export Packing Credit 50 CRISIL C (Reassigned)
The rating continues to reflect the Pallava group's exposure to
revenue concentration risk and susceptibility of the group's
operating profitability to adverse movement in foreign exchange
rates. These rating weaknesses are partially offset by the Pallava
group's moderate financial risk profile, marked by healthy capital
structure, and its promoter's extensive experience in the granite
industry.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of PGPL, Pallava Granite Industries India
Pvt Ltd (PGIPL), and Pallava Granite Industries Chennai Pvt Ltd,
collectively referred to as the Pallava group. This is because all
these entities are in a similar line of business, are managed by
the same promoter, and have fungible cash flows among them.
The Pallava group is engaged in granite exports and its day-to-day
operations are managed Mr. Subba Reddy. PGPL and PGICPL were set
up in 1983 and PGIPL was set up in 1989. The group is based in
Chennai (Tamil Nadu).
For 2012-13 (refers to financial year, April 1 to March 31), the
Pallava group reported a profit after tax (PAT) of INR 80 million
on an operating income of INR1 billion, as against a PAT of INR47
million on an operating income of INR1 billion for 2011-12.
PCM TEA: CARE Assigns B+ Rating to INR5.61cr LT Bank Loan
---------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' rating to the bank facilities
of PCM Tea Processing Pvt Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 5.61 CARE B+ Assigned
Short-term Bank Facilities 0.50 CARE A4 Assigned
Rating Rationale
The aforesaid ratings take into account the weak financial profile
of the PCM group; PTPPL's small scale of current operations and
its entire dependence on purchased leaves primarily from the
market, which increases the risks related to availability and
pricing of quality green leaves. The ratings are further
constrained by susceptible to vagaries of the nature, operating in
a highly competitive market, working capital intensive nature of
operation and low operating margins which exerts pressure on the
cash flows of the company. The ratings, however, factors in the
experience of the promoters in the tea industry, mixed sales
stream and the favourable outlook for the domestic tea industry.
Ability of the company to gradually improve its profitability and
increase its scale of operation would remain the key rating
sensitivity.
PCM Tea Processing Pvt Ltd was established in 1999 for the
manufacturing of CTC variety of tea at Sahudangi, Jalpaiguri, West
Bengal. The plant has an annual capacity of around 3.5 million
kgs. The company does not have its own plantation facilities and
it depends entirely on bought leaf for its production. The company
procures green leaf from the small growers located in the nearby
area of its production facilities. PCM Group of Industries is in
diverse areas of business including engineering, information and
communication, manufacturing, service, energy, media, steel and
consumer products with a combined turnover of around INR250.0
crore in FY13.
The company achieved an operating income of INR23.3 crore and a
PAT of INR0.4 crore in FY13. As per the provisional results
submitted by the company, PTPPL has achieved net sales of INR20.2
crore and a PAT of INR0.2 crore in FY14.
PEE GEE: CRISIL Assigns 'B' Rating to INR60MM Cash Credit
---------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the bank
facilities of Pee Gee International (Delhi). The rating reflects
PGI's weak financial risk profile and small scale of operations in
highly fragmented industry. These rating weaknesses are partially
offset by promoter's extensive experience in the industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 60 CRISIL B/Stable
Proposed Long Term 20 CRISIL B/Stable
Bank Loan Facility
Outlook: Stable
CRISIL believes that PGI will maintain its business risk profile
backed by promoters' extensive experience in the industry. The
outlook may be revised to 'Positive' in case the firm generates
higher than expected sales along with healthy profitability or in
case of any capital infusion by promoter leading to improvement in
firm's financial risk profile. Conversely, the outlook may be
revised to 'Negative' in case of increase in working capital
requirement and/or any withdrawal by promoters leading to further
deterioration in financial risk profile.
PGI is a proprietorship firm started by Mr. Gauri Shankar in 2002.
It is a Delhi based firm and is into the trading of aluminium
scrap.
PRITHIVRAJ SPINNING: CRISIL Assigns B Rating to INR153.1M LT Loan
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long term
bank facilities of Prithivraj Spinning Mill Pvt Ltd. The rating
reflects PSMPL's exposure to funding and implementation risks
associated with its ongoing project. This rating weakness is
partially offset by the extensive entrepreneurial experience of
the company's promoters.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 35 CRISIL B/Stable
Long Term Loan 153.1 CRISIL B/Stable
Outlook: Stable
CRISIL believes that PSMPL will continue to benefit over the
medium term from its promoters' extensive entrepreneurial
experience. The outlook may be revised to 'Positive' if the
company stabilises operations at its manufacturing unit earlier
than expected, resulting in an improvement in its cash accruals
and financial risk profile. Conversely, the outlook may be revised
to 'Negative' in case of a time or cost overrun in PSMPL project,
or delays in stabilising its operations, leading to weakening of
its financial risk profile.
PSMPL, incorporated in 2014, is setting up a spinning unit in
Annur (Tamil Nadu), to manufacture cotton yarn. The company is
being promoted by Mr. M. Shanmugham and his family.
QVC EXPORTS: CRISIL Cuts Rating on INR20MM Cash Credit to 'B+'
--------------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of
QVC Exports Pvt Ltd to 'CRISIL B+/Stable/CRISIL A4' from 'CRISIL
BB-/Stable/CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 10 CRISIL A4 (Downgraded from
'CRISIL A4+')
Cash Credit 20 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
Export Packing Credit 120 CRISIL A4 (Downgraded from
'CRISIL A4+')
Letter of Credit 100 CRISIL A4 (Downgraded from
'CRISIL A4+')
Proposed Short Term 10 CRISIL A4 (Downgraded from
Bank Loan Facility 'CRISIL A4+')
Standby Line of Credit 10 CRISIL A4 (Downgraded from
'CRISIL A4+')
The rating downgrade is driven by deterioration in QVC's credit
risk profile owing to stretched working capital cycle. The
company's gross current asset (GCA) days have deteriorated to
about 134 days as on March 31, 2014 from about 100 days
historically led by increase deterioration in both, receivables
and stock holding period. To fund its increased requirements, the
company is stretching its creditors besides utilising bank lines
fully, owing to which total outside liability upon tangible net
worth (TOLTNW) ratio has deteriorated sharply to about 4 times as
on march 31, 2014 from about 2 times in the preceding year. With
higher debt levels and weak operating profitability of about 1.5
percent, the company's debt protection metrics too have witnessed
deterioration. CRISIL believes the continued stretch in working
capital cycle will continue to constrain QVC's credit profile.
CRISIL's ratings on the bank facilities of QVC also reflect the
company's moderate scale of operations, modest profitability
margins, and its weak financial risk profile marked by modest net
worth, high TOLTNW and inadequate debt protection metrics. The
rating weakness is partially offset by extensive experience of
QVC's promoter in the metals and minerals trading industry.
Outlook: Stable
CRISIL believes that QVC will continue to benefit over the medium
term from its established position in the metals and minerals
trading industry, its promoter's extensive industry experience,
and its established relationships with customers. The outlook may
be revised to 'Positive' if the company is able to improve its
working capital cycle along with substantial improvement in
profitability. Conversely, the outlook may be revised to
'Negative' in case of revenue decline, or further weakening in
its capital structure, most likely because of further
deterioration in working capital cycle.
QVC, set up in 2005 by Mr. Nilesh Sharma, trades in a variety of
metals and minerals, such as iron, steel, ferroalloys, copper,
nickel, aluminium, manganese ore, coal, and coke.
For 2013-14 (refers to financial year, April 1 to March 31), QVC
on provisional basis reported a profit after tax (PAT) of INR6.2
million on net sales of INR1,382 million, against a PAT of INR4.8
million on net sales of INR952 million for 2012-13.
RAMESHWAR GINNING: CARE Assigns B+ Rating to INR5.29cr Bank Loan
----------------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of Rameshwar
Ginning Factory.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 5.29 CARE B+ Assigned
Rating Rationale
The rating assigned to the bank facilities of Rameshwar Ginning
Factory (RGF) is primarily constrained on account of its weak
financial risk profile marked by fluctuating income, thin
profitability, high leverage, weak debt coverage and moderate
liquidity indicators. The rating is further constrained on account
of its low networth base, constitution as a partnership firm,
operations in the highly fragmented and competitive cotton ginning
industry, susceptibility of operating margins to the raw material
price fluctuation, seasonality associated with the cotton industry
and susceptibility to the change in the government policies.
However, the rating derives strength from the promoters'
experience, well-established operations with established client
base and presence in the cotton-growing region of Gujarat.
The ability of RGF to increase its scale of operations alongwith
improvement in its profitability and solvency position with
better working capital management are the key rating
sensitivities.
RGF was formed as a partnership firm in the year 1997 by Mr
Rameshkumar Thakkar and Mr Rohit Gosai to take up the
manufacturing of cotton bales in Harij (Gujarat). Later in the
year 2007, both the partners were joined by Mr Jayesh Thakkar and
Mr Jayendra Gosai respectively.
During FY14 (provisional; refers to the period April 1 to
March 31), RGF reported a PAT of INR0.02 crore on a total
operating income (TOI) of INR25.91 crore as against a PAT of
INR0.02 crore on a TOI of INR31.99 crore in FY13.
S. KHODAY: CRISIL Assigns 'B-' Rating to INR90MM Cash Credit
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to
the bank facilities of S. Khoday Silk Twisting Factory (SKSTF).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term 5 CRISIL B-/Stable
Bank Loan Facility
Cash Credit 90 CRISIL B-/Stable
Foreign Letter of 25 CRISIL A4
Credit
The ratings reflect SKSTF's modest scale of operations and below-
average financial risk profile marked by weak debt protection
metrics. These rating weaknesses are partially offset by the
extensive experience of SKSTF's promoters in the home furnishings
industry.
Outlook: Stable
CRISIL believes that SKSTF will continue to benefit over the
medium term from its promoters' industry experience. The outlook
may be revised to 'Positive' if the firm records significant
increase in its net cash accruals through improvement in
profitability, resulting in an improvement in its financial risk
profile. Conversely, the outlook may be revised to 'Negative' in
case of considerable decline in SKSTF's accruals or deterioration
in its working capital management, or if its promoters withdraw
substantial capital, resulting in weakening of its financial risk
profile.
Set up in 1993, SKSTF manufactures silk home furnishings. The
firm's manufacturing facility is in Bengaluru. Its day-to-day
operations are managed by Mr. Srinivas Khoday and Mr. Suresh
Khoday.
On a provisional basis, SKSTF reported profit after tax (PAT) of
INR2.5 million on revenue of INR500 million for 2013-14 (refers to
financial year, April 1 to March 31); the firm reported PAT of
INR2.3 million on revenue of INR487 million for 2012-13.
SATYAM COMPUTER: Verdict Date Set For December 23
-------------------------------------------------
The Times of India reports that BVLN Chakravarthy, the 21st
additional chief metropolitan magistrate of Hyderabad, who heard
the Satyam scam case for nearly six years, finally declared on
October 30 that he would pronounce his judgment in the sensational
corporate fraud case on December 23.
However the judge added a rider saying that if he is unable to
complete the task by that day, he may take a few more days to
pronounce the verdict in view of the voluminous records involved,
the report relates.
With the court reserving its judgment, the trial in the case,
billed as the biggest corporate fraud in the country, can be said
to have been completed despite some last minute submissions by the
accused, urging the court to obtain authentication certificates
from authorities for all electronic documents filed by CBI,
according to TOI.
In response, special public prosecutor K Surender told the court
that the probe agency took all precautions and has already filed
such certificates in the court wherever it relied on electronic
documents, the report relates.
B Ramalinga Raju, the disgraced chairman of Satyam Computer
Services Private Ltd (SCSL); his brother and MD of the company B
Rama Raju; another brother Suryanarayana Raju; company CFO
Vadlamani Srinivas; debarred PriceWaterHouseCoopers auditors S
Gopalakrishnan and Talluri Srinivas; Satyam finance wing employees
G Ramakrishna, D Venkatpathi Raju and Ch Srisailam and the
company's former internal auditor V S Prabhakar Gupta were present
in the court when the judge reserved his orders, according to TOI.
All of them were directed to be present in the court on December
23, the report notes.
The report says the scam became public on Jan. 7, 2009, with the
alleged confession of Ramalinga Raju about falsification of
company accounts to present a rosy picture to the world. Raju was
arrested by the Crime Investigation Department of Andhra Pradesh
police two days later along with his brother Rama Raju.
Though initially the CID registered a case and arrested the
accused, the case was transferred to CBI within days thereafter.
After completing its probe, the CBI made out a case that Raju
cheated investors to an extent of INR14, 000 crore and personally
profited by more than INR2,000 crore through his kin and certain
front companies by selling his shares through certain deceitful
means. In its chargesheet, the investigating agency said Raju's
business turnover and profits were all fictitious, TOI relays.
The trial in the Satyam fraud case had concluded in June this year
with the trial court examining 216 witnesses during the course of
the hearing. In all, the CBI filed three chargesheets (on April 7,
2009, Nov. 24, 2009 and Jan. 7, 2010), which were later clubbed
into one, TOI discloses.
Headquartered in Secunderabad, India, Mahindra Satyam, formerly
known as Satyam Computer Services Limited, is an information,
communications and technology (ICT) company providing business
consulting, information technology and communication services.
The Company is powered by a pool of information technology (IT)
and consulting professionals across enterprise solutions, client
relationship management, business intelligence, business process
quality, operations management, engineering solutions, digital
convergence, product lifecycle management, and infrastructure
management services. The Company is a part of the Mahindra Group,
a global industrial conglomerate in India.
SEKO BEC: CRISIL Reaffirms B- Rating on INR40MM Cash Credit
-----------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Seko Bec
Private Limited (SBPL; formerly known as Borewell Equipment Co
Private Limited) continues to reflect SBPL's below-average
financial risk profile marked by its small net-worth, high gearing
and average debt protection metrics.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 15 CRISIL A4 (Reaffirmed)
Cash Credit 40 CRISIL B-/Stable (Reaffirmed)
Letter of Credi 30 CRISIL A4 (Reaffirmed)
Proposed Cash 5 CRISIL B-/Stable (Reaffirmed)
Credit Limit
The ratings of the company are also constrained on account of its
modest scale of operations in the intensely competitive drilling
equipment industry, and the company's large working capital
requirements. These rating weaknesses are partially offset by the
extensive experience of SBPL's promoters in the drilling equipment
manufacturing business.
Outlook: Stable
CRISIL believes that SBPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' there is a substantial and
sustained increase in the company's scale of operations, while it
maintains its profitability margins, or there is a sustained
improvement in its working capital cycle. Conversely, the outlook
may be revised to 'Negative' in case of a steep decline in the
company's profitability margins, or significant deterioration in
its capital structure caused most likely by a stretch in its
working capital cycle.
SBPL was promoted in 1979 by Mr. Kesava Rao, Mr. Ramachandra Rao,
and their family members. The company manufactures drilling
equipment used for construction, quarrying, mining, and wells. The
company is based in Hyderabad, Telangana.
SHIV SHAKTI: CARE Reaffirms B+ Rating on INR25cr LT Bank Loan
-------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Shiv Shakti Ginning and Pressing Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 25 CARE B+ Reaffirmed
Rating Rationale
The rating of Shiv Shakti Ginning and Pressing Private Limited
continues to remain constrained on account of high leverage, thin
profitability and modest debt protection indicators. The rating is
further constrained by the susceptibility of its operating margins
to the volatile cotton prices, its presence in a highly fragmented
and working capital intensive cotton ginning industry and sales
concentration risk.
The rating, however, continues to derive strength from the vast
experience of the promoters in the cotton ginning business and
SSGPL's favourable location in the cotton-growing belt of Gujarat.
The ability of SSGPL to significantly increase its scale of
operations and improve its profitability by moving up the cotton
value chain along with an improvement in its capital structure
would be the key rating sensitivities.
SSGPL was incorporated in 2007, and the commercial production
started in December 2008. It has a composite cotton ginning and
pressing unit at Anjar in the Kutch district of Gujarat. SSGPL is
promoted by Mr Nilesh V. Thacker and had an installed production
capacity of 97,440 cotton bales per annum as on March 31, 2014.
SSGPL also trades agricultural commodities such as cotton, cotton
seeds, ground nut oil, sugar and palmoline oil.
As per the audited results for FY14, SSGPL reported a total
operating income of INR313.26 crore (FY13: INR262.08 crore)
with a PAT of INR0.56 crore (FY13: INR0.26 crore).
SHREE REFRIGERATIONS: CRISIL Reaffirms B+ Rating on INR55MM Loan
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Shree Refrigerations
Pvt Ltd continue to reflect SRPL's working-capital-intensive
operations and average financial risk profile marked by modest net
worth and high gearing. These rating weaknesses are partially
offset by the extensive experience of SRPL's promoter in the
refrigeration and condensing industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 15 CRISIL A4 (Reaffirmed)
Bill Discounting 10 CRISIL A4 (Reaffirmed)
Cash Credit 55 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 0.8 CRISIL B+/Stable (Reaffirmed)
Proposed Rupee
Term Loan 30 CRISIL B+/Stable (Reaffirmed)
Term Loan 25.7 CRISIL B+/Stable (Reaffirmed)
Letter of credit &
Bank Guarantee 10 CRISIL A4 (Reaffirmed)
Outlook: Stable
CRISIL believes that SRPL will continue to benefit over the medium
term from its promoter's extensive industry experience. The
outlook may be revised to 'Positive' in case of substantial
improvement in the company's liquidity, most likely because of
material increase in its cash accruals along with stable working
capital cycle. Conversely, the outlook may be revised to
'Negative' in case of steep decline in SRPL's operating margin or
large debt-funded capital expenditure, weakening its financial
risk profile, particularly its liquidity.
Update
SRPL achieved provisional net sales of INR195.4 million and
operating margin of 10.92 per cent for 2013-14 (refers to
financial year, April 1 to March 31), in line with historical
levels. In 2014-15, the company registered net sales of about
INR110 million and comfortable operating margin of 15 per cent
till August 31, 2014. CRISIL believe that SRPL will register net
sales of around INR230 million for 2014-15 backed by moderate
demand from the milk, food, and marine industries.
However, SRPL's liquidity is stretched, marked by low cash
accruals and large working capital requirements with gross current
assets at 250 days as on March 31, 2014. The company relies on
bank limits to fund its working capital requirements, and
consequently, has high gearing. SRPL's financial risk profile is
constrained by its modest net worth of around INR39 million and
high gearing of 2.2 times as on March 31, 2014. While the gearing
has improved from around 5 times as on March 31 2011, because of
equity infusion of around INR24 million, it remains aggressive.
SRPL's interest coverage and net cash accruals to total debt
ratios are weak, at 1.8 times and 0.12 times, respectively, for
2013-14, compared to historical levels of 2.2 times and 0.3 times,
respectively. CRISIL believes that SRPL will generate net cash
accruals of around INR14 million for 2014-15, which will be
tightly matched with its debt obligations during the year.
However, the company has sufficient buffer in its cash credit
limit.
SRPL, incorporated in 1990 and promoted by Mr. Ravalnath Shende,
manufactures condensers, chillers, spray dampening systems,
compressors, and appliance-testing machines. Its manufacturing
facility is in Karad (Maharashtra).
On provisional basis, for 2013-14, SRPL reported a profit after
tax (PAT) of INR1.8 million on net sales of INR195.4 million,
against a PAT of INR1.3 million on net sales of INR167.5 million
for 2012-13.
SIMBHAOLI SUGARS: CRISIL Reaffirms D Rating on INR3.08BB Loan
-------------------------------------------------------------
CRISIL's ratings on the bank facilities of Simbhaoli Sugars Ltd
(SSL) continue to reflect instances of delay by SSL in meeting its
debt obligations; the delays were caused by the company's weak
liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 3,087.5 CRISIL D (Reaffirmed)
Letter of credit
& Bank Guarantee 835 CRISIL D (Reaffirmed)
Proposed Long Term 1,293.2 CRISIL D (Reaffirmed)
Bank Loan Facility
Term Loan 2,220.6 CRISIL D (Reaffirmed)
Working Capital 499.9 CRISIL D (Reaffirmed)
Term Loan
CRISIL had, on October 10, 2014, downgraded its ratings on SSL's
bank facilities to 'CRISIL D/CRISIL D' from 'CRISIL B-
/Stable/CRISIL A4', following the delays by SSL in servicing its
debt. The company's operations are in Uttar Pradesh (UP) where
state-administered prices for sugarcane are high and costs of
production are not adequately covered by sugar prices. As a
result, it incurred losses over the past three years, which led to
accumulation of high cane arrears towards farmers. In 2014-15
(refers to financial year, April 1 to March 31), the High Court of
Allahabad directed sugar companies to pay outstanding cane dues,
which led to stretched liquidity for SSL.
SSL's financial risk profile is weak, marked by a highly leveraged
capital structure and weak debt protection metrics. Also, the
company is exposed to regulatory risks and cyclicality in the
sugar industry. However, it benefits from its established market
position.
SSL (formerly, The Simbhaoli Sugar Mills Ltd) was originally
established as a partnership firm in 1933 in Simbhaoli (UP); the
firm was reconstituted as a private limited company in 1936 and
then as a public limited company with the current name in 1989. In
1992, SSL acquired a distillery and transformed its Simbhaoli
sugar plant into a sugar complex. The company now has an
integrated sugar unit and operates under the sugar-alcohol-power
business model. It is among the top 10 integrated sugar companies
in India.
SSL has three sugar plants, one each in Simbhaoli and Brijnathpur
in western UP, and in Chilwaria in eastern UP; the company has a
combined crushing capacity of 20,100 tonnes of sugarcane per day.
It produces a range of sugar products, such as white crystal
refined sugar, pharmaceutical-grade sugar, superfine sugar, sugar
cubes, icing sugar, table sugar, candy sugar, and sugar sachets.
SSL hived off its power and alcohol divisions into two wholly
owned subsidiaries, Simbhaoli Power Ltd and Simbhaoli Spirits Ltd.
On a standalone basis, SSL reported a net loss of INR1722.3
million on net sales of INR8.3 billion for 2013-14, as against a
net loss of INR394.7 million on net sales of INR8.8 billion for
2012-13. For the three months ended June 30, 2014, the company
reported a net loss of INR315.2 million on net sales of INR2060.8
million, as against a net loss of INR425.5 million on net sales of
INR2742.5 million for the corresponding period of the previous
year.
SNEHAL ENTERPRISES: CRISIL Ups Rating on INR190MM Cash Loan to B+
-----------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Snehal Enterprises (SE) to 'CRISIL B+/Stable' from 'CRISIL
B/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 190 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Warehouse Financing 150 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
The rating upgrade reflects the improvement in SE's liquidity
driven by unsecured loans (CRISIL has treated unsecured loans as
neither debt nor equity) of INR106 million extended by the firm's
partners in 2013-14, in addition to INR54.7 million of unsecured
loan extended in 2012-13. Extending unsecured loan has resulted in
lower dependence of SE on external debt to fund its incremental
working capital requirement arising out of substantial increase in
operating income to INR1.17 billion in 2013-14 from INR225.4
million in 2012-13.
The rating reflects SE's weak financial risk profile, marked by
its weak capital structure, and working-capital-intensive
operations. These rating weaknesses are partially offset by the
extensive experience of SE's promoters in the rice industry.
Outlook: Stable
CRISIL believes that SE will maintain its credit risk profile,
though constrained by its weak financial risk profile, owing to
the experience of its promoters in the rice industry. The outlook
may be revised to 'Positive' with sustained increase in the firm's
scale of operations with improvement in working capital
management. Conversely, the outlook may be revised to 'Negative'
in case of further deterioration in SE's working capital
management, leading to weaker business risk profile, or in case of
lower-than-expected profitability or if the firm undertakes a
larger-than-expected debt-funded capital expenditure programme,
resulting in deterioration in financial risk profile, particularly
its liquidity.
Set up in 2007, SE is an HUF, owned and managed by Mr. Nitin Jain.
The firm trades in various agricultural commodities that include
rice, paddy, and bardana in the local markets of Punjab and Delhi.
The firm is based in Amritsar (Punjab).
For 2013-14, SE reported, on provisional basis, a book profit of
INR7.2 million on net sales of INR1.17 billion; the firm reported
a book profit of INR7.2 million on net sales of INR225.4 million
for 2012-13.
SPB DEVELOPERS: CRISIL Cuts Rating on INR1.91BB Term Loan to D
---------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
SPB Developers Pvt Ltd to 'CRISIL D/CRISIL D' from 'CRISIL
BB+/Stable/CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 175 CRISIL D (Downgraded from
'CRISIL A4+')
Term Loan 1,910 CRISIL D (Downgraded from
'CRISIL BB+/Stable')
The rating downgrade reflects instances of delay by SPB in
servicing its debt. The delays have been caused by weakening of
the company's liquidity on account of delays in its ongoing four-
laning project, and its inability to start partial tolling as
envisaged. According to the concession agreement, SPB is allowed
to undertake phased tolling in part of the road stretches;
however, right-of-way issues in the land pockets at the planned
toll plazas have prevented the company from undertaking the same.
SPB remains exposed to risks related to the implementation of its
project. However, the company benefits from the operational
support that SPB receives from its promoter - IVRCL Ltd, and the
fixed-price nature of its engineering, procurement, and
construction contract for the project.
SPB was incorporated in 2009 as a special purpose vehicle for
converting stretches on the two-lane state highways connecting
Shirwal' Phaltan-Baramati (all in Maharashtra) into four lanes, on
a build, operate, and transfer basis. The project is expected to
start commercial operations by June 2015.
SUPER CONSTRUCTION: CRISIL Rates INR140MM Term Loan at 'B+'
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Super Construction Co - Mumbai (SCC).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 140 CRISIL B+/Stable
The rating reflects SCC's exposure to risks associated with the
completion, funding and saleability of its ongoing projects, which
is accentuated by the fact that most of the projects are in the
initial phase of execution. The rating also reflects the firm's
susceptibility to inherent risks and cyclicality in the Indian
real estate industry. These rating weaknesses are partially offset
by SCC's established position in the real estate industry in
Mumbai, and the funding support that the firm receives from its
promoters.
Outlook: Stable
CRISIL believes that SCC will continue to benefit over the medium
term from its promoters' extensive experience in the real estate
industry, and their funding support. The outlook may be revised to
'Positive' in case of higher-than-expected bookings and timeliness
in receipt of customer advances, leading to higher-than-expected
cash inflows. Conversely, the outlook may be revised to 'Negative'
in case of deterioration in SCC's liquidity, most likely because
of slow bookings or delays in receipt of customer advances, or if
the firm contracts substantial debt to fund its projects.
SCC, set up in 1981, undertakes real estate development in and
around Mumbai. The firm is owned and managed by Mr. Haribansh
Singh and his family. The firm's office is in Navi Mumbai.
Currently, SCC is developing a residential real estate project in
Kharghar, and two slum rehabilitation projects (one each in Bandra
and Wadala in Mumbai). In addition, the firm is also setting up a
hotel in Panvel.
SURYAAMBA SPINNING: CRISIL Ups Rating on INR150MM Cash Loan to B-
-----------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of
Suryaamba Spinning Mills Ltd to 'CRISIL B-/Stable/CRISIL A4' from
'CRISIL D/CRISIL D'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 2.5 CRISIL A4 (Upgraded from
'CRISIL D')
Cash Credit 150.0 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Letter of Credit 10.0 CRISIL A4 (Upgraded from
'CRISIL D')
Long Term Loan 138.2 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
The rating upgrade factors in the timely servicing of debt by
Suryaamba during the six months through September 2014. CRISIL
believes that the company will continue servicing its debt on
time, supported by the management's initiatives to ensure timely
payment and sufficient liquidity. Its liquidity is supported by
expectations of adequate cash accruals over the medium term
against annual term debt repayment obligations of about INR17
million each in 2014-15 (refers to financial year, April 1 to
March 31) and 2015-16. Continued funding support from promoters is
expected to help the company in alleviating any liquidity pressure
over the medium term. With adequate liquidity, CRISIL expects
Suryaamba's operational performance to be supported by increasing
sales of value-added yarns and recycled fibre over this period.
CRISIL expects the company's annual sales to be over INR1.6
billion, with a stable operating margin of 6.5 to 7.0 per cent,
over the medium term.
The ratings reflect Suryaamba's average financial risk profile,
marked by a modest net worth, high gearing, and average debt
protection metrics, and its limited ability to pass on any
increase in raw material prices. These rating weaknesses are
partially offset by the extensive experience of the company's
promoters in the yarn manufacturing business.
Outlook: Stable
CRISIL believes that Suryaamba will continue to benefit over the
medium term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the company reports a
significant increase in its sales with a stable operating margin,
while efficiently managing its working capital requirements,
leading to improvement in its financial risk profile. Conversely,
the outlook may be revised to 'Negative' if Suryaamba's working
capital cycle is stretched, or if it undertakes a large debt-
funded capital expenditure programme, further weakening its
financial risk profile.
Suryaamba was formed through the demerger of Suryalata Spinning
Mills Ltd's unit in Nayakund (Maharashtra) in June 2007. Suryaamba
manufactures polyester yarn and polyester/viscose blended yarn in
the 20s to 45s count range. The company's manufacturing unit at
Nayakund has 31,104 spindles.
Suryaamba reported a profit after tax (PAT) of INR21 million on
net sales of INR1.6 billion for 2013-14, against a PAT of INR21
million on net sales of INR1.4 billion for 2012-13.
TAJ LEATHER: CRISIL Reaffirms D Rating on INR25MM Shipment Loan
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Taj Leather Works (TLW)
continue to reflect instances of delay by TLW in servicing its
debt; the delays have been caused by the firm's weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 4 CRISIL D (Reaffirmed)
Packing Credit 18 CRISIL D (Reaffirmed)
Post Shipment Credit 25 CRISIL D (Reaffirmed)
Proposed Long Term
Bank Loan Facility 15 CRISIL D (Reaffirmed)
Working Capital 21 CRISIL D (Reaffirmed)
Term Loan
TLW also has a modest scale of operations and large working
capital requirements. The firm, however, benefits from the
extensive experience of its promoters in the leather goods
industry.
TLW is a partnership concern formed in 1974 in Kolkata. It has
four partners: Mr. Shafique Abedin, Mr. Javed Abedin, Mr. Md.
Masroor Alam, and Mr. Md. Nezamuddin. The firm is engaged in
manufacturing and export of industrial leather gloves. It also
sells finished leather in the domestic market.
TIRUMALA COTTON: CRISIL Assigns B Rating to INR50MM Cash Credit
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Tirumala Cotton Syndicate (TC).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL B/Stable
Proposed Long Term
Bank Loan Facility 20 CRISIL B/Stable
The rating reflects TC's moderate scale of operations in the
intensely competitive and highly fragmented cotton trading
industry, and its below-average financial risk profile, marked by
high total outside liabilities to tangible net worth (TOLTNW)
ratio and weak debt protection metrics. These rating weaknesses
are partially offset by the extensive experience of TC's partners
in the cotton trading industry.
Outlook: Stable
CRISIL believes that TC will continue to benefit over the medium
term from its promoters' extensive experience in the cotton
trading industry. The outlook may be revised to 'Positive' if the
firm reports a significant improvement in financial risk profile
on account of higher-than-expected profitability or significant
equity infusion. Conversely, the outlook may be revised to
'Negative' if TC generates lower-than-expected cash accruals or
undertakes a large debt-funded capital expenditure programme,
resulting in further weakening of financial risk profile.
Set up in 2001, TC is engaged in trading of raw cotton and cotton
lint. Based out of Guntur, the partners of the firm are Mr.
G.V.Appa Rao and his son Mr.G.Poorna Chandra Rao.
For 2013-14 (refers to financial year, April 1 to March 31), TC on
a provisional basis, reported a profit after tax (PAT) of INR1.9
million on an operating income of INR804 million, against a PAT of
INR1.2 million on operating income of INR324 million for 2012-13.
VIMIT METALS: CARE Reaffirms B+ Rating on INR4.77cr Bank Loan
-------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Vimit Metals And Infrastructure Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 4.77 CARE B+ Reaffirmed
Rating Rationale
The rating assigned to the bank facilities of Vimit Metals and
Infrastructure Private Limited (VMIPL) continues to remain
constrained on account of its short track record and modest scale
of operations in a highly competitive industry as well as
vulnerability of margins to fluctuations in the raw material
prices. The rating, further, remains constrained due to its
financial risk profile marked by moderate profitability, weak
solvency and liquidity position.
The rating, however, derives strength from experience of the
management and successful completion of the capacity expansion
project.
VMIPL's ability to increase its scale of operations with efficient
management of working capital and improvement in profitability &
capital structure are the key rating sensitivities.
Jaipur-based (Rajasthan) VMIPL, incorporated in May 2008 and was
promoted by Mr Arun Sharma along with his son, Mr Amit Sharma.
VMIPL is engaged in the business of manufacturing of Polyvinyl
chloride (PVC), Soil, Waste & Rain Water (SWR), Unplasticized Poly
Vinyl Chloride (uPVC) pipes and fittings that find their end user
applications in the irrigation, water management, and drainage and
sewerage systems. Initially, the company was engaged in the
trading of PVC resins. However, it discontinued its trading
activities after completion of the green-field project for
production of pipes and pipe fittings in November 2009. The
installed capacity of the unit is 2,664 Metric Tonnes Per Annum
(MTPA) as on March 31, 2014and the unit is ISO 9001:2008
certified. It markets its products under the brand name of 'Vimit
Pipes'.
During FY14 (refers to the period April 01 to March 31), VMIPL
reported a Total operating income of INR9.33 crore (FY13: 6.85
crore) with a PAT of INR0.08 crore (FY13: 0.06 crore). During
H1FY15, VMIPL has reported a total operating income of INR3.49
crore.
VINOD H: ICRA Assigns B+ Rating to INR4.25cr Cash Credit
--------------------------------------------------------
ICRA has assigned the rating of [ICRA]B+ to INR4.25 crore long
term fund based cash credit of Vinod H Patel. ICRA has also
assigned the rating of [ICRA]A4 to the INR2.00 crore short term
fund based facilities of VHP.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 4.25 [ICRA]B+ assigned
Bank Guarantee 2.00 [ICRA]A4 assigned
The assigned ratings are constrained by the modest scale of firm's
operations; high competitive intensity in the civil construction
space resulting in pressure on margins as well as vulnerability of
profitability to fluctuation in input prices with absence of price
escalation clause in most of the firm's contracts. The ratings
also take into account the concentration of the firm's operations
in the Gujarat state which exposes the company to economic and
political risks of a single state as well as sectoral
concentration risk arising from its dependence largely on civil
construction work for Gujarat Water Supply Sewerage Board and
Gujarat Elementary Education Council. ICRA also notes that VHP is
a proprietorship concern and any substantial withdrawal from
capital account would impact the credit profile of the firm.
The ratings, however, favorably factor in the long experience of
the promoters in the civil construction industry; limited
counterparty risk with customers mainly comprising government,
semi government bodies, and private enterprises. The ratings also
take into account the stable outlook for construction companies
given a number of projects expected to be announced by the Gujarat
Water Supply Sewerage Board over the medium to long term.
Vinod H Patel (VHP) was established in the year 1998 and is
engaged in civil construction & engineering services related to
sewerage, laying of pipelines, water tank construction and
building construction. VHP is promoted by Mr. Vinod Patel, who has
an experience of ~24 years in the civil construction industry. VHP
is registered under "AA" class and Special Category-II (building
construction) with the Government of Gujarat. The firm has an in-
house team of civil engineers and supervisors to look after the
project execution. VHP has executed various projects in the past
for government and semi-government bodies of Gujarat government
and reputed private players.
Recent Results
During FY 2014 (as per unaudited financials), Vinod H Patel
reported an operating income of INR24.56 crore and profit after
tax of Rs 0.61 crore as against operating income INR25.74 crore
and profit after tax of INR0.64 crore in FY 2013.
VIRAAT FASHION: CARE Reaffirms B+ Rating on INR5.36cr Bank Loan
---------------------------------------------------------------
CARE reaffirms rating and assigns short-term rating to the bank
facilities of Viraat Fashion.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long -term Bank Facilities 5.36 CARE B+ Reaffirmed
Long-term/Short-term Bank 4.00 CARE B+/CARE A4
Facilities Reaffirmed/Assigned
Rating Rationale
The ratings assigned to the bank facilities of Viraat Fashion (VF)
continue to remain constrained on account of its short track
record of operations with modest scale in the highly fragmented
and competitive textile industry, susceptibility to volatile raw
material prices and foreign exchange fluctuation risk. The ratings
are also constrained on account of its weak financial risk profile
marked by operating losses, leveraged capital structure, weak debt
coverage indicators and stressed liquidity situation.
The above-mentioned constraints far offset the benefits derived
from the vast experience of the promoters in the textile industry.
The ability of VF to increase the scale of operations along with
improvement in profitability and capital structure along with
better working capital management are the key rating
sensitivities.
VF was established in the year 2012 by five partners, led by Mr
Dipesh Shah, who have more than two decades of experience through
its various group entities, namely, Vishal Fashion Private Limited
and Sidhant Tradecomm Private Limited engaged in the textile
business. In December 2013, VF set-up plant for manufacturing of
linen fabric for suiting, shirting and furnishing with an
installed capacity of 1,080,000 meters per annum (MPA) at
Khadodra, Surat (Gujarat). VF has commenced commercial operations
from December 2013.
As per the audited results for FY14, VF reported a net loss of
INR0.98 crore on a total operating income (TOI) of INR4.79
crore. As per the provisional results for 6MFY15, VF registered a
turnover of INR13.50 crore.
=================
I N D O N E S I A
=================
DUTA ANGGADA: Fitch Assigns 'B' LT IDR; Outlook Stable
------------------------------------------------------
Fitch Ratings has assigned Indonesia-based PT Duta Anggada Realty
Tbk (Duta) a Long-Term Issuer Default Rating of 'B' with a Stable
Outlook. At the same time the agency has also assigned the
company a senior unsecured rating of 'B' and assigned its proposed
senior unsecured notes due in 2019 a 'B(EXP)' expected rating with
a Recovery Rating of 'RR4'.
The notes will be issued by a wholly owned subsidiary and
guaranteed by Duta and certain subsidiaries. The notes are rated
at the same level as Duta's senior unsecured debt rating as they
represent direct, unconditional, unsecured and unsubordinated
obligations of the company.
KEY RATING DRIVERS
Small Scale: Duta is a small development company that has limited
project diversification compared with higher rated international
peers. Over the short to medium term more than 60% presales will
be driven by the Icon Towers project in Jakarta. Duta's limited
scale and project concentration constrain its business profile as
these factors raise the risk of earnings and cash flow volatility.
The company's financial profile is especially vulnerable in light
of increasing debt-funded investments with long payback period.
High Development Risk: As Duta is primarily focused on cyclical
commercial and industrial projects, which heighten the development
risk profile. Icon Towers' strategic location in Jakarta's
central business district and Duta's flexibility to phase out
construction at its industrial estate are important mitigating
factors for this risk.
Although the company has a pipeline of projects under development,
the company has limited land bank, particularly in comparison with
its international peers. Consequently, Fitch believes that the
company will need additional capex or working capital for land
acquisition.
Sufficient Recurring Income: Fitch expects Duta to be able to
maintain a ratio of recurring EBITDA to interest expense of about
0.5x that is sufficient for its rating on a sustained basis. This
is mainly supported by prime assets with high occupancy rates that
produce stable recurring revenue. Fitch also expects the
recurring revenue base to increase as Duta successfully executes
its hotel projects in a timely manner. While Duta has little
experience in the hospitality sector, the assets are in good
locations and the company has teamed up experienced franchises
that have strong hotel brands.
Comfortable Liquidity Profile: The rating also reflects Duta's
comfortable liquidity profile, which is supported by pre-sales
from the Sinarmas MSIG Tower office project in Jakarta, the
availability of assets for sale, and stable recurring cash flows
derived from high occupancy rates in its investment assets.
Liquidity is further supported by a well-distributed debt maturity
schedule that allows the company to accumulate cash buffers.
Manageable Currency Risk: Fitch believes currency mismatch is
manageable given Duta's high development margins and a fair
proportion of US dollar-denominated cash flows from presales at
Icon Towers.
Debt Restructuring History: Duta's debt restructuring history may
limit its funding flexibility considering the cyclical nature of
the property development business. However these concerns have
reduced as Duta established its track record in the debt capital
markets and maintained a diversified banking relationship.
RATING SENSITIVITIES
Negative: Future developments that may, individually or
collectively, lead to negative rating action include:
-- Decline in presales/ gross debt to below 75% on a sustained
basis
-- Decline in reccuring EBITDA/ interest expense to below 0.5x
on a sustained basis
-- Pressure on liquidity, such as cash balances failing to
cover short-term obligations
Positive: Positive rating action is not expected in the next 12
months due to its small scale and project concentration. An
upgrade may be considered if the company successfully executes its
current development pipeline so that it has more business
diversification and a stronger base of recurring revenue.
DUTA ANGGADA: Moody's Assigns (P)B1 Corporate Family Rating
-----------------------------------------------------------
Moody's Investors Service has assigned a provisional corporate
family rating of (P)B1 to PT Duta Anggada Realty Tbk.
Moody's also assigned a provisional senior unsecured bond rating
of (P)B1 to the proposed senior unsecured notes to be issued by
Primary Assets Pte Ltd - an entity wholly owned by Duta Anggada -
and guaranteed by Duta Anggada and its subsidiaries.
The ratings outlook is stable.
Proceeds from the USD150 million bond will be used to finance
current development projects, land acquisition, retirement of
existing debt, and other related fees and expenses.
Moody's will remove the provisional rating status on the ratings
after completing a satisfactory review of the final bond
documentation.
Ratings Rationale
The (P)B1 ratings reflect the company's potential strong growth
from its properties and its well-balanced portfolio of investment
and development properties, thus supplementing more speculative
development revenues with a good flow of recurring revenues.
"We expect the company's revenue to increase by 15% in 2015 and
more significantly, by over 100% in 2016, as it benefits from its
five on-going projects, and new project acquisitions," says
Jacintha Poh, a Moody's Assistant Vice-President and Analyst.
The five on-going projects comprise residential, serviced
apartments, hotel, retail and office blocks in Jakarta and Bali.
"However, we are cautious regarding the high execution risks from
these projects, in particular those of Icon Towers. This is
because Icon Towers is expected to be the largest revenue
contributor over the next three years to the company," adds Poh,
who is also the Lead Analyst for Duta Anggada and other companies
in the Indonesian property sector.
As of 30 September 2014, the company's investment portfolio
consisted of six commercial properties in Jakarta; Citywalk
Sudiriman, Plaza Chase, Plaza Bapindo, Plaza Great River, STIE
Panjaitan and PGJ Jatinegara, with over 210,000 square meters of
net leasable area.
Going forward, the existing properties combined with ongoing
projects will constitute a well-balanced portfolio for Duta
Anggada, whereby the investment properties provide stable
recurring income, cushioning against the business and execution
risks associated with its property development segment and
mitigating against normally volatile development cash flow.
For the nine months ended September 2014, the company generated
revenue of IDR992 billion, of which 31.6% derived from its leasing
business and the rest from sales of strata titles.
The ratings are constrained by Duta Anggada's small scale with
lack of geographical diversity.
As of 30 September 2014, the company's asset size of IDR5.0
trillion is small compared to its local and global peers. Duta
Anggada's properties are largely concentrated in Jakarta as only
one property is elsewhere; the Hilton Garden Inn on Bali.
In addition, its bulky lease expiry profile of around 55% of total
net leasable area and 57% of revenue expiring in 2016 constrains
its ratings as this exposes the company to high leasing risk over
the medium-term.
"Nonetheless, Moody's expect the company to successfully renew its
expiring leases due to the high-quality of its strategically
located properties. The company has also proven its ability to
retain tenants, with longstanding relationships with some major
tenants that exceed 15 years," says Poh.
The rating outlook is stable, reflecting Moody's expectation that
Duta Anggada will continue to generate recurring income from its
investment properties, successfully achieve its sales and leasing
targets, and maintain financial discipline when pursuing growth.
An upgrade is currently unlikely and Moody's expect Duta Anggada
to successfully implement its expansion projects, in particular
Icon Towers, leading to significant improvements in sales and cash
flow generation. Moody's also expect the company to grow its
recurring income base, while maintaining solid liquidity in the
form of cash balances and committed facilities. These developments
will strengthen its position at its current rating level of (P)B1.
However, Duta Anggada's rating could face downward pressure if:
(1) the company fails to implement its business plans; (2) the
company is unable to renew/replace its leases at its investment
properties, leading to higher vacancy levels and declining
operating cash flows; and/or (3) there is a deterioration in the
property market, leading to protracted weakness in its operations
and credit profile.
Moody's considers adjusted EBITDA/interest coverage below 3.0x-
3.5x, adjusted debt/EBITDA above 3.5x and recurring
EBITDA/Interest below 1.0x on a sustained basis as indications
that a downgrade may be necessary.
The principal methodology used in these ratings was the Global
Homebuilding Industry Methodology published in March 2009.
Established on 30 December 1983, PT Duta Anggada Realty Tbk is a
property developer engaged in the development, management and
operation of office buildings, retail space, hotels and
condominium towers in Indonesia. All its assets are in the Greater
Jakarta area except for one building on Bali. It was listed on the
Jakarta Stock Exchange on 8 May 1990 and is controlled by the
Angkosubroto family, with a shareholding of approximately 45% as
at 30 September 2014.
JAPFA COMFEED: S&P Revises Outlook to Neg. & Affirms 'BB-' CCR
--------------------------------------------------------------
Standard & Poor's Ratings Services revised the rating outlook on
Indonesia-based poultry feed and commercial farming company PT
Japfa Comfeed Indonesia Tbk. (Japfa) to negative from stable. At
the same time, S&P affirmed its 'BB-' long-term corporate credit
rating on Japfa and its 'BB-' rating on the senior unsecured notes
issued by Comfeed Finance B.V. that the company guarantees. In
line with the outlook revision, S&P is lowering its long-term
ASEAN regional scale rating on Japfa to 'axBB' from 'axBB+'.
The outlook revision reflects S&P's expectations that Japfa's cash
flow adequacy ratios could weaken beyond S&P's downgrade rating
triggers over the next 12 months because of tougher industry
conditions and the prospect of its capital spending remaining
elevated.
S&P believes Japfa's debt-to-EBITDA ratio could reach about 4.5x
in 2014 and remain above 4.0x over the next 12 months as subdued
demand and persisting overcapacity in day-old chicks and
commercial farming compress its operating margins. The company's
funds from operations (FFO)-to-debt ratio could be close to 12% in
2014 and stay below 15% over the next 12 months. S&P has lowered
its EBITDA forecast for 2014 to Indonesian rupiah (IDR) 1.70
trillion-IDR1.8 trillion, compared with S&P's earlier expectation
of about IDR2.1 trillion and a debt-to-EBITDA ratio of 3.7x-3.9x.
S&P has revised its financial risk profile to "aggressive," from
"significant," as a result.
"Japfa's cash flow adequacy ratios are very sensitive to operating
margins, and a material margin improvement in 2015 remains
unlikely, said Standard & Poor's credit analyst Xavier Jean.
Industry participants aggressively expanded over the past 12
months. That translated into pockets of overcapacity in day-old
chicks and commercial farming, which led to poor pricing. At the
same time, S&P do not expect improvements in consumer sentiment
and disposable income soon unless Indonesia's GDP growth momentum
picks up.
If capital spending at Japfa remains elevated, it could compound
the subdued margin environment and slow the recovery in the
company's cash flows in 2015. In the nine months ended Sept. 30,
2014, Japfa had already spent about IDR1.4 trillion, which was
S&P's full-year forecast for 2014.
"We believe Japfa has the flexibility to lower capital spending
materially if the market environment remains weak. But the
company has not demonstrated a willingness to do so as it may seek
to maintain its market share in a still-competitive environment,"
Mr. Jean said.
S&P affirmed the rating because it views Japfa's competitive
advantage as intact and its market share as sustainable. Although
market conditions will likely remain subdued for more than one to
two quarters S&P observed in previous cycles, it believes the
operators will cut capacity eventually, starting with the smaller
ones that are weaker financially.
The negative outlook on Japfa reflects a one-in-three likelihood
of a rating downgrade over the next 12 months if operating
conditions remain subdued and the company maintains its high
capital spending.
S&P could lower the rating by one notch if the company's debt-to-
EBITDA ratio remains above 4.0x or its FFO-to-debt ratios stays
below 15% for more than 12 months with no prospect of recovery in
the second half of 2015. S&P believes this could materialize if
EBITDA margin stays below 8.0% while the company maintains its
steady capital spending. S&P could also downgrade Japfa if: (1)
S&P believes the market position of its poultry feed and breeding
operations declines, either because of significant additional
capacity or an erosion of its cost advantage; or (2) S&P assess
Japfa's group credit profile to have weakened, because of higher
consolidated debt or increased debt at the holding company.
S&P could revise the outlook to stable if the company's cash flow
stabilizes such that its debt-to-EBITDA ratio sustainably improves
below 4.0x or its FFO-to-debt ratio rises above 15%. S&P believes
this will likely require a combination of (1) sustainably better
operating conditions; and (2) a prudent approach to capital
spending.
===============
M A L A Y S I A
===============
KINSTEEL BHD: Gets Suspension Notice From Bursa Malaysia
--------------------------------------------------------
The Star reports that Kinsteel Bhd and Perwaja Holdings Bhd have
been notified that trading in their shares would be suspended from
November 10 if they do not submit their outstanding annual audited
financial statements this week.
The Star, citing a filing with Bursa Malaysia, says that if
Kinsteel and Perwaja were unable to submit their audited financial
statement for the year ended June 30, on or before
Today, November 7, the trading in the companies' shares would be
suspended from the next trading day until further notice.
Loss-making Kinsteel and its associate company Perwaja had missed
the deadline of October 31, to submit their annual audited
accounts to Bursa Malaysia Securities Bhd for public release,
according to The Star.
The Star notes that Kinsteel and Perwaja in their separate filings
said Bursa had informed them that the stock market regulator was
unable to consider the companies' application for an extension of
time to release their annual audited financial statements until
November 14. This was because the applications by the two
companies were submitted after the due date for submission of the
annual audited financial statements.
According to The Star, Kinsteel and Perwaja had on October 31
announced that the release of their audited financial statements
was delayed as the companies were in the midst of finalising some
audit issues with the auditors.
The steel makers have been bleeding red ink for some time and are
saddled with large debts, The Star notes.
For its 18-month period ended June 30, Kinsteel's unaudited
financial statements revealed that it had short-term debt of
MYR1.84 billion. Together with its long-term debt, its total
borrowings were MYR1.95 billion, The Star discloses.
Perwaja, on the other hand, had short-term debt amounting to
MYR1.1 billion as of June 30, based on its unaudited financial
statement. Together with its long-term borrowings, its total debt
stood at MYR1.37 billion, relays The Star.
The indebtedness was compounded by the losses that both companies
posted for the end of their respective financial periods, the
report notes. Kinsteel announced a net loss of MYR421.5 million
for its financial period ended June 30, while Perwaja's 18-month
financial period to that date revealed an unaudited net loss of
MYR921.6 million, The Star discloses.
====================
N E W Z E A L A N D
====================
INVENTIS LIMITED: Restructures Ailing New Zealand Unit
-----------------------------------------------------
Suze Metherell at NBR Online reports that Inventis Limited has
restructured its unprofitable New Zealand unit, after talks to
sell the business to the local management and another external
buyer fell through.
NBR Online relates Philip Downie will be acting chief executive
for the Auckland-based Damba and Gregory Commercial Furniture NZ
business, replacing managing director Bruce Roberts who resigned
effective November 1, the Sydney-based company said in an
announcement to the ASX. Mr. Roberts joined Inventis's local unit
in October last year, with the goal "to rejuvenate the Damba brand
and to develop this within the New Zealand marketplace," according
to his LinkedIn profile.
Inventis reported a loss of AUD1.82 million in the year ended June
30, from a profit of AUD2.95 million a year earlier, NBR Online
discloses citing the company's annual report. Sales fell 18
percent to AUD16.8 million while its furniture division, which
includes the kiwi operations, reported an earnings before
interest, tax, depreciation and amortisation loss of AUD1.2
million, widening from an Ebitda-loss of AUD600,000 a year
earlier.
Sales in New Zealand, which make up 16 percent of all total
revenue, fell 3.3 percent to AUD2.84 million, while Australian
sales fell 21 percent to AUD14 million in the year, NBR relays.
According to NBR, the company attributed its annual loss,
excluding one off restructuring costs in Australia, "entirely to
the poor performance of our New Zealand subsidiary". It has since
restructured the business after failing to flog it off in to an
undisclosed potential buyer, and then to Roberts in a management
buyout, NBR adds.
Inventis Limited (ASX:IVT) -- http://www.inventis.com.au/-- is
engaged in the design, manufacture and supply of ergonomic
commercial furniture, health and aged care products, electronic
controllers and ruggedised computer solutions.
====================
S O U T H K O R E A
====================
S. KOREA: Banks to Lose KRW14.5T if 3 Business Group Go Insolvent
-----------------------------------------------------------------
Korea Bizwire reports that a central bank study said the combined
loss of banks would be in the range of KRW14.5 trillion if three
top "most exposed" business groups were gone insolvent at the same
time. According to a report on insolvency risk stress test on
major conglomerates published by the Bank of Korea on October 30,
the total exposure of top-ten high-risk business groups to the
banking sector was KRW44.8 trillion as of the end of August this
year, the report says.
According to Korea Bizwire, the Bank of Korea selected high-risk
groups out of 63 groups with more than KRW5 trillion assets which
are subject to the government's cross-shareholding regulation. It
then defined the high-risk ones as those with both the interest
coverage ratio and the liquidity coverage ratio at less than
100 percent.
The total exposure of these groups to commercial banks was
KRW34.7 trillion while that for non-banking financial institutions
was KRW10.1 trillion, the report discloses. The exposure to
special-purpose banks such as Korea Development Bank was KRW21.0
trillion, accounting for two-thirds of the commercial bank
exposure.
Korea Bizwire adds that under a scenario in which one business
group goes insolvent, the financial sector-wide loss would be in
the range of KRW600 billion to KRW6.4 trillion. Of this, the loss
of commercial banks was estimated at KRW200 billion to
KRW4.8 trillion, of which that for special-purpose banks accounts
for about a half.
In case where three business groups go insolvent concurrently, the
financial sector-wide loss would be KRW14.5 trillion, Korea
Bizwire notes. Commercial banks are expected to lose
KRW11.0 trillion (share of special-purpose banks estimated at
KRW6.2 trillion) while non-banking financial institutions would
lose KRW3.5 trillion. Among non-banking financial institutions,
insurance companies would be the ones that will lose most at
KRW1 trillion, Korea Bizwire reports.
=============
V I E T N A M
=============
VIETNAM BANK: Fitch Ups LT IDR to 'B+', Outlook Revised to Stable
-----------------------------------------------------------------
Fitch Ratings has upgraded the Long-Term Issuer Default Ratings
(IDRs) and Support Rating Floors (SRFs) of two Vietnamese
government-owned banks -- Vietnam Bank for Agriculture and Rural
Development (Agribank) and Vietnam Joint Stock Commercial Bank for
Industry and Trade (Vietinbank) - to 'B+' from 'B'.
The upgrade of the banks' ratings follows the upgrade on Vietnam's
sovereign rating. The Outlook has been revised to Stable from
Positive, reflecting a similar revision to the sovereign's
Outlook.
KEY RATING DRIVERS - IDRs, Support Ratings and SRFs of Agribank
and Vietinbank
The upgrade on both banks' IDRs reflects Fitch's view that the
sovereign's ability to provide extraordinary support, if needed,
has improved. It follows an upgrade in Vietnam's ratings to 'BB-'
from 'B+' on Nov. 3, 2014, which takes into account the
improvement in macroeconomic stability and favorable external
finances, despite large contingent risk due to the weak banking
sector.
The Long-Term IDRs of Agribank and Vietinbank are driven by state
support. Their Support Ratings (SRs) and SRFs reflect Fitch's
expectation of likely extraordinary state support as both banks
are majority-owned by the government and they are among the most
systemically important banks with quasi-policy functions in the
domestic economy. Agribank, and Vietinbank are the largest and
second-largest banks by asset size in Vietnam with dominant
domestic franchises.
The banks' ratings are notched one down from the sovereign rating
to take into consideration the government's finances, which may
limit the timeliness of its extraordinary support to the banks.
The Stable Outlook of Agribank and Vietinbank reflect the Stable
Outlook on Vietnam's sovereign rating.
RATING SENSITIVITIES - IDRs, SRs and SRFs of Agribank and
Vietinbank
The state-support driven ratings are sensitive to changes in the
sovereign's ratings, and maybe hurt by any perceived weakening in
the government's propensity to support the banks. However, either
prospect is remote, considering the recent sovereign rating
upgrade and strong linkage with the government.
The current one-notch differential could be closed by equalising
the bank's ratings with that of the sovereign if the sovereign's
financial ability to provide support improves substantially and
there is a clear indication of the government's strong propensity
to provide timely support.
KEY RATING DRIVERS AND RATING SENSITIVITIES - Senior Debt of
Vietinbank
Vietinbank's senior notes are rated at the same level as its Long-
Term IDR. This is because the notes constitute direct,
unsubordinated and senior unsecured obligations of the bank, and
rank equally with all its other unsecured and unsubordinated
obligations. In line with Fitch's criteria, Recovery Ratings are
assigned to entities with an IDR of 'B+' or below. Vietinbank's
senior debt will likely be impacted by changes to the bank's IDR.
The rating actions are:
Agribank
-- Long-Term IDR upgraded to 'B+' from 'B'; Outlook revised to
Stable from Positive
-- Short-Term IDR affirmed at 'B'
-- Support Rating Floor revised to 'B+' from 'B'
-- Support Rating affirmed at '4'
Vietinbank
-- Long-Term IDR upgraded to 'B+' from 'B'; Outlook revised to
Stable from Positive
-- Short-Term IDR affirmed at 'B'
-- Viability Rating unaffected at 'b-'
-- Support Rating Floor revised to 'B+' from 'B'
-- Support Rating affirmed at '4'
-- USD250m 8% notes due 2017 upgraded to 'B+' from 'B';
Recovery Rating affirmed at 'RR4'
===============
X X X X X X X X
===============
* Large Companies with Insolvent Balance Sheets
-----------------------------------------------
Total
Total Shareholders
Assets Equity
Company Ticker (US$MM) (US$MM)
------- ------ ------ ------------
AUSTRALIA
360 CAPITAL OFFI TOF 88.94 -33.19
AAT CORP LTD AAT 32.50 -13.46
AAT CORP LTD AAT 32.50 -13.46
ATLANTIC LTD ATI 64.03 -517.87
AUSTRALIAN ZI-PP AZCCA 14.89 -65.04
AUSTRALIAN ZIRC AZC 14.89 -65.04
BESRA GOLD -CDI BEZ 67.38 -22.27
BIRON APPAREL LT BIC 19.71 -2.22
BLUESTONE GLOBAL BUE 46.32 -2.40
CLARITY OSS LTD CYO 13.99 -15.57
KASBAH RESOURCES KAS 18.24 -0.85
KASBAH RESOUR-NS KASN 18.24 -0.85
LEGEND MINING LEG 20.24 -0.66
MACQUARIE ATLAS MQA 1,643.30 -1,018.14
MIRABELA NICKEL MBN 158.54 -375.82
NATURAL FUEL LTD NFL 19.38 -121.51
QUICKFLIX LTD QFX 12.12 -4.38
QUICKFLIX LTD-N QFXN 12.12 -4.38
RIVERCITY MOTORW RCY 386.88 -809.13
SAVCOR GRP LTD SAV 25.90 -10.32
STERLING PLANTAT SBI 55.20 -11.32
STONE RESOURCES SHK 21.01 -5.58
STRAITS RESOURCE SRQ 185.04 -65.47
TZ LTD TZL 12.45 -10.10
VDM GROUP LTD VMG 17.70 -2.10
CHINA
ANHUI GUOTONG-A 600444 75.69 -6.25
BAIOO 2100 88.34 -3.21
CHANG JIANG-A 520 85.63 -803.28
HUNAN TIANYI-A 908 56.58 -1.61
JIANGXI CHANG-A 600228 110.07 -9.15
LUOYANG GLASS-A 600876 203.45 -2.05
LUOYANG GLASS-H 1108 203.45 -2.05
NANNING CHEMIC-A 600301 344.15 -9.59
SHAANXI QINLIN-A 600217 349.25 -14.52
SHANG BROAD-A 600608 35.87 -0.22
SHANGHAI CHAOR-A 2506 577.79 -465.36
TIANGE 1980 139.51 -13.82
WUHAN BOILER-B 200770 203.68 -218.32
HONG KONG
BEIJINGWEST INDU 2339 28.39 -57.06
BIRMINGHAM INTER 2309 59.86 -21.91
C FOOD&BEV GP 8272 50.10 -4.36
CHINA E-LEARNING 8055 13.33 -4.07
CHINA HEALTHCARE 673 27.19 -12.96
CHINA OCEAN SHIP 651 315.16 -76.51
CNC HOLDINGS 8356 42.92 -52.59
CROWN INTERNATIO 727 64.61 -5.12
EFORCE HLDGS LTD 943 55.72 -17.55
GR PROPERTIES LT 108 17.83 -52.36
GRANDE HLDG 186 205.00 -295.25
HARMONIC STR 33 32.93 -2.03
MASCOTTE HLDGS 136 18.90 -12.88
MEGA EXPO HOLDIN 1360 17.00 -0.53
PALADIN LTD 495 148.01 -14.35
PROVIEW INTL HLD 334 314.87 -294.85
SINO DISTILLERY 39 72.30 -7.54
SINO RESOURCES G 223 30.65 -17.93
SURFACE MOUNT SMT 41.44 -9.21
TITAN PETROCHEMI 1192 422.49 -1,073.54
INDONESIA
APAC CITRA CENT MYTX 172.86 -12.52
ARPENI PRATAMA APOL 182.55 -333.91
ASIA PACIFIC POLY 330.86 -853.09
BAKRIE & BROTHER BNBR 956.98 -156.77
BAKRIE TELECOM BTEL 748.76 -111.71
BERLIAN LAJU TAN BLTA 1,074.01 -1,177.97
BERLIAN LAJU TAN BLTA 1,074.01 -1,177.97
BUMI RESOURCES BUMI 6,764.90 -242.51
ICTSI JASA PRIMA KARW 54.93 -6.88
JAKARTA KYOEI ST JKSW 23.75 -35.86
MATAHARI DEPT LPPF 282.58 -74.21
ONIX CAPITAL TBK OCAP 11.39 -1.66
PRIMARINDO ASIA BIMA 11.89 -16.86
RENUKA COALINDO SQMI 17.04 -0.33
SUMALINDO LESTAR SULI 77.74 -33.80
UNITEX TBK UNTX 18.83 -18.53
INDIA
ABHISHEK CORPORA ABSC 53.66 -25.51
AGRO DUTCH INDUS ADF 85.09 -22.81
ALPS INDUS LTD ALPI 201.29 -41.70
AMIT SPINNING AMSP 12.85 -7.68
ARTSON ENGR ART 11.64 -10.64
ASHAPURA MINECHE ASMN 162.39 -16.64
ASHIMA LTD ASHM 63.23 -48.94
ATV PROJECTS ATV 48.47 -43.93
BELLARY STEELS BSAL 451.68 -108.50
BENZO PETRO INTL BPI 26.77 -1.05
BHAGHEERATHA ENG BGEL 22.65 -28.20
BINANI INDUS LTD BZL 1,163.38 -38.79
BLUE BIRD INDIA BIRD 122.02 -59.13
CELEBRITY FASHIO CFLI 24.96 -8.26
CHESLIND TEXTILE CTX 20.51 -0.03
CLASSIC DIAMONDS CLD 66.26 -6.84
COMPUTERSKILL CPS 14.90 -7.56
DCM FINANCIAL SE DCMFS 18.46 -9.46
DFL INFRASTRUCTU DLFI 42.74 -6.49
DIGJAM LTD DGJM 99.41 -22.59
DISH TV INDIA DITV 462.53 -52.19
DISH TV INDI-SLB DITV/S 462.53 -52.19
DUNCANS INDUS DAI 122.76 -227.05
ENSO SECUTRACK ENSO 15.57 -0.46
EURO CERAMICS EUCL 110.62 -6.83
EURO MULTIVISION EURO 36.94 -9.95
FERT & CHEM TRAV FCT 314.24 -76.26
GANESH BENZOPLST GBP 44.05 -15.48
GANGOTRI TEXTILE GNTX 54.67 -14.22
GOKAK TEXTILES L GTEX 46.36 -0.29
GOLDEN TOBACCO GTO 97.40 -18.24
GSL INDIA LTD GSL 29.86 -42.42
GSL NOVA PETROCH GSLN 16.53 -1.31
GUJARAT STATE FI GSF 15.26 -304.68
GUPTA SYNTHETICS GUSYN 44.18 -6.34
HARYANA STEEL HYSA 10.83 -5.91
HEALTHFORE TECHN HTEC 14.74 -46.64
HINDUSTAN ORGAN HOC 57.24 -51.76
HINDUSTAN PHOTO HPHT 49.58 -1,832.65
HIRAN ORGOCHEM HO 14.56 -4.59
HMT LTD HMT 106.62 -454.42
ICDS ICDS 13.30 -6.17
INDAGE RESTAURAN IRL 15.11 -2.35
INDOSOLAR LTD ISLR 193.78 -6.91
INTEGRAT FINANCE IFC 49.83 -51.32
JCT ELECTRONICS JCTE 80.08 -76.70
JENSON & NIC LTD JN 16.49 -71.70
JET AIRWAYS IND JETIN 2,856.84 -697.07
JET AIRWAYS -SLB JETIN/S 2,856.84 -697.07
JOG ENGINEERING VMJ 45.90 -5.28
KALYANPUR CEMENT KCEM 23.39 -42.66
KERALA AYURVEDA KERL 13.97 -1.69
KIDUJA INDIA KDJ 11.16 -3.43
KINGFISHER AIR KAIR 515.93 -2,371.26
KINGFISHER A-SLB KAIR/S 515.93 -2,371.26
KITPLY INDS LTD KIT 14.77 -58.78
KLG SYSTEL LTD KLGS 40.64 -27.37
KM SUGAR MILLS KMSM 19.14 -0.47
KSL AND INDUSTRI KSLRI 269.42 -14.19
LML LTD LML 43.95 -78.18
MADHUCON PROJECT MDHPJ 1,226.74 -21.90
MADRAS FERTILIZE MDF 289.78 -34.43
MAHA RASHTRA APE MHAC 14.49 -12.96
MALWA COTTON MCSM 44.14 -24.79
MAWANA SUGAR MWNS 142.07 -32.88
MILTON PLASTICS MILT 17.67 -51.22
MODERN DAIRIES MRD 38.61 -3.81
MOSER BAER INDIA MBI 727.13 -165.63
MOSER BAER -SLB MBI/S 727.13 -165.63
MTZ POLYFILMS LT TBE 31.94 -2.57
MURLI INDUSTRIES MRLI 262.39 -38.30
MYSORE PAPER MSPM 87.99 -8.12
NATL STAND INDI NTSD 22.09 -0.73
NAVCOM INDUS LTD NOP 10.19 -3.53
NICCO CORP LTD NICC 71.84 -4.91
NICCO UCO ALLIAN NICU 23.25 -83.90
NK INDUS LTD NKI 141.35 -7.71
NRC LTD NTRY 63.70 -53.01
NUCHEM LTD NUC 24.72 -1.60
PANCHMAHAL STEEL PMS 51.02 -0.33
PARAMOUNT COMM PRMC 124.96 -0.52
PARASRAMPUR SYN PPS 99.06 -307.14
PAREKH PLATINUM PKPL 61.08 -88.85
PIONEER DISTILLE PND 53.74 -5.62
PREMIER INDS LTD PRMI 11.61 -6.09
PRIYADARSHINI SP PYSM 20.80 -2.28
QUADRANT TELEVEN QDTV 127.72 -153.54
QUINTEGRA SOLUTI QSL 16.76 -17.45
RAMSARUP INDUSTR RAMI 433.89 -89.28
RATHI ISPAT LTD RTIS 44.56 -3.93
RELIANCE MED-SLB RMW/S 276.99 -88.49
RENOWNED AUTO PR RAP 14.12 -1.25
RMG ALLOY STEEL RMG 66.61 -12.99
ROYAL CUSHION RCVP 14.70 -75.18
SAAG RR INFRA LT SAAG 12.54 -4.93
SADHANA NITRO SNC 16.74 -0.58
SANATHNAGAR ENTE SNEL 49.23 -6.78
SANCIA GLOBAL IN SGIL 53.12 -30.47
SBEC SUGAR LTD SBECS 92.44 -5.61
SERVALAK PAP LTD SLPL 61.57 -7.63
SHAH ALLOYS LTD SA 168.13 -81.60
SHALIMAR WIRES SWRI 21.39 -24.28
SHAMKEN COTSYN SHC 23.13 -6.17
SHAMKEN MULTIFAB SHM 60.55 -13.26
SHAMKEN SPINNERS SSP 42.18 -16.76
SHREE GANESH FOR SGFO 44.50 -2.89
SHREE KRISHNA SHKP 14.62 -0.92
SHREE RAMA MULTI SRMT 38.90 -4.49
SHREE RENUKA SUG SHRS 2,162.34 -82.52
SHREE RENUKA-SLB SHRS/S 2,162.34 -82.52
SIDDHARTHA TUBES SDT 44.95 -15.37
SIMBHAOLI SUGAR SBSM 268.76 -54.47
SPICEJET LTD SJET 489.96 -170.22
SQL STAR INTL SQL 10.58 -3.28
STATE TRADING CO STC 556.35 -392.74
STELCO STRIPS STLS 14.90 -5.27
STI INDIA LTD STIB 21.69 -2.13
STL GLOBAL LTD SHGL 30.73 -5.62
STORE ONE RETAIL SORI 15.48 -59.09
SUPER FORGINGS SFS 14.62 -7.00
SURYA PHARMA SUPH 370.28 -9.97
SUZLON ENERG-SLB SUEL/S 5,061.62 -53.02
SUZLON ENERGY SUEL 5,061.62 -53.02
TAMILNADU JAI TNJB 17.07 -1.00
TATA METALIKS TML 122.76 -3.30
TATA TELESERVICE TTLS 1,311.30 -138.25
TATA TELE-SLB TTLS/S 1,311.30 -138.25
TODAYS WRITING TWPL 18.58 -25.67
TRIUMPH INTL OXIF 58.46 -14.18
TRIVENI GLASS TRSG 19.71 -10.45
TUTICORIN ALKALI TACF 19.86 -19.58
UDAIPUR CEMENT W UCW 11.38 -10.53
UNIFLEX CABLES UFCZ 47.46 -7.49
UNIWORTH LTD WW 149.50 -151.14
UNIWORTH TEXTILE FBW 22.54 -35.03
USHA INDIA LTD USHA 12.06 -54.51
VANASTHALI TEXT VTI 14.59 -5.80
VENUS SUGAR LTD VS 11.06 -1.08
WANBURY LTD WANB 141.86 -3.91
WEBSOL ENERGY SY WESL 105.10 -23.79
JAPAN
GOYO FOODS INDUS 2230 11.93 -1.86
LCA HOLDINGS COR 4798 19.37 -7.17
OPTROM INC 7824 17.71 -2.66
PIXELA CORP 6731 15.08 -1.63
KOREA
HYUNDAI CEMENT 6390 454.92 -262.92
SHINIL ENG CO 14350 199.04 -2.53
STX CORPORATION 11810 1,275.13 -484.08
STX ENGINE CO LT 77970 1,170.67 -62.72
TEC & CO 8900 139.98 -16.61
TONGYANG INC 1520 1,068.15 -452.52
TONGYANG INC-2PF 1527 1,068.15 -452.52
TONGYANG INC-3RD 1529 1,068.15 -452.52
TONGYANG INC-PFD 1525 1,068.15 -452.52
VERITAS INVESTME 19660 16.04 -0.09
MALAYSIA
DING HE MINING 705 75.97 -26.38
HAISAN RESOURCES HRB 39.97 -11.83
HIGH-5 CONGLOMER HIGH 34.30 -46.85
ML GLOBAL BHD MLG 17.74 -3.63
PERWAJA HOLDINGS PERH 632.62 -7.46
PETROL ONE RESOU PORB 51.39 -4.00
PHILIPPINES
CYBER BAY CORP CYBR 13.72 -23.36
DFNN INC DFNN 13.15 -2.31
FILSYN CORP A FYN 23.11 -11.69
FILSYN CORP. B FYNB 23.11 -11.69
GOTESCO LAND-A GO 21.76 -19.21
GOTESCO LAND-B GOB 21.76 -19.21
LIBERTY TELECOMS LIB 91.11 -40.80
METRO GLOBAL HOL FC 40.90 -15.77
PICOP RESOURCES PCP 105.66 -23.33
STENIEL MFG STN 21.07 -11.96
UNIWIDE HOLDINGS UW 50.36 -57.19
SINGAPORE
ADVANCE SCT LTD ASCT 19.68 -22.46
CHINA GREAT LAND CGL 16.52 -19.01
HL GLOBAL ENTERP HLGE 83.11 -4.63
OCEANUS GROUP LT OCNUS 85.03 -5.53
QT VASCULAR LTD QTVC 10.21 -25.76
SCIGEN LTD-CUFS SIE 46.71 -55.42
SINGAPORE EDEVEL SGE 20.68 -9.36
TERRATECH GROUP TEGP 13.55 -5.24
TT INTERNATIONAL TTI 399.33 -11.36
UNITED FIBER SYS UFS 51.61 -76.05
THAILAND
ABICO HLDGS-F ABICO/F 15.28 -4.40
ABICO HOLDINGS ABICO 15.28 -4.40
ABICO HOLD-NVDR ABICO-R 15.28 -4.40
ASCON CONSTR-NVD ASCON-R 59.78 -3.37
ASCON CONSTRUCT ASCON 59.78 -3.37
ASCON CONSTRU-FO ASCON/F 59.78 -3.37
BANGKOK RUBBER BRC 77.91 -114.37
BANGKOK RUBBER-F BRC/F 77.91 -114.37
BANGKOK RUB-NVDR BRC-R 77.91 -114.37
BIG CAMERA COP-F BIG/F 19.86 -13.03
BIG CAMERA CORP BIG 19.86 -13.03
BIG CAMERA -NVDR BIG-R 19.86 -13.03
CIRCUIT ELEC PCL CIRKIT 16.79 -96.30
CIRCUIT ELEC-FRN CIRKIT/F 16.79 -96.30
CIRCUIT ELE-NVDR CIRKIT-R 16.79 -96.30
ITV PCL-NVDR ITV-R 36.02 -121.94
K-TECH CONSTRUCT KTECH 38.87 -46.47
K-TECH CONSTRUCT KTECH/F 38.87 -46.47
K-TECH CONTRU-R KTECH-R 38.87 -46.47
KUANG PEI SAN POMPUI 17.70 -12.74
KUANG PEI SAN-F POMPUI/F 17.70 -12.74
KUANG PEI-NVDR POMPUI-R 17.70 -12.74
PATKOL PCL PATKL 52.89 -30.64
PATKOL PCL-FORGN PATKL/F 52.89 -30.64
PATKOL PCL-NVDR PATKL-R 52.89 -30.64
PICNIC CORP-NVDR PICNI-R 101.18 -175.61
PICNIC CORPORATI PICNI 101.18 -175.61
PICNIC CORPORATI PICNI/F 101.18 -175.61
SHUN THAI RUBBER STHAI 19.89 -0.59
SHUN THAI RUBB-F STHAI/F 19.89 -0.59
SHUN THAI RUBB-N STHAI-R 19.89 -0.59
TONGKAH HARBOU-F THL/F 62.30 -1.84
TONGKAH HARBOUR THL 62.30 -1.84
TONGKAH HAR-NVDR THL-R 62.30 -1.84
TRANG SEAFOOD TRS 15.18 -6.61
TRANG SEAFOOD-F TRS/F 15.18 -6.61
TRANG SFD-NVDR TRS-R 15.18 -6.61
TT&T PCL TTNT 589.80 -223.22
TT&T PCL-NVDR TTNT-R 589.80 -223.22
TT&T PUBLIC CO-F TTNT/F 589.80 -223.22
WORLD CORP -NVDR WORLD-R 15.72 -10.10
WORLD CORP PCL WORLD 15.72 -10.10
WORLD CORP PLC-F WORLD/F 15.72 -10.10
TAIWAN
BEHAVIOR TECH CO 2341S 34.54 -2.57
BEHAVIOR TECH-EC 2341O 34.54 -2.57
HELIX TECH-EC 2479T 23.39 -24.12
HELIX TECH-EC IS 2479U 23.39 -24.12
HELIX TECHNOL-EC 2479S 23.39 -24.12
POWERCHIP SEM-EC 5346S 1,761.34 -296.10
TAIWAN KOL-E CRT 1606U 507.21 -147.14
TAIWAN KOLIN-EN 1606V 507.21 -147.14
TAIWAN KOLIN-ENT 1606W 507.21 -147.14
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel
Elaine T. Fernandez, Julie Anne L. Toledo, and Peter A. Chapman,
Editors.
Copyright 2014. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000 or Nina Novak at 202-362-8552.
*** End of Transmission ***