/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/150129.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, January 29, 2015, Vol. 18, No. 020 Headlines A U S T R A L I A CANBERRA EYE: First Creditors' Meeting Set For Feb. 6 KEEFORCE GROUP: Ferrier Hodgson Appointed as Administrators LEADING EDGE: Five Stores in Doubt as Parent Files Liquidation LIMITED EDITION: First Creditors' Meeting Slated For Feb. 5 LYNAS CORP: Shareholders Facing Wipe-Out, UBS Warns C H I N A CAR INC: Tie-Up With UCAR to Enhance Business Profile, Fitch Says CHINA BAK: Crowe Horwath (HK) Expresses Going Concern Doubt KAISA GROUP: Bonds Rallied Amid Shenzhen-Led Takeover Plans KAISA GROUP: Fails to Unblock Sales During Talks With Shenzhen KAISA GROUP: Home Buyers Protest, Demand Government Protection I N D I A A.C.P. EDUCATIONAL: CRISIL Suspends D Rating on INR850MM Loan AADARSH EXTRUSION: CARE Rates INR6.45cr LT Bank Loan at B+ ADILAXMI INDUSTRIES: CARE Reaffirms B+ Rating on INR13.18cr Loan AKSHATA POLYMERS: ICRA Suspends B/A4 Rating on INR5.70cr Loan AMBARWADIKAR INDUSTRIES: ICRA Rates INR100.50cr Cash Credit at B+ ANNAI APPLIANCES: CRISIL Suspends B Rating on INR50MM Cash Loan ASCENT HOTELS: CARE Reaffirms C Rating on INR5cr LT Bank Loan BIOTECH INT'L: CRISIL Cuts Rating on INR115MM Cash Loan to B C DOCTOR: CARE Reaffirms B/A4 Rating on INR20.20cr Bank Loan CHANDRA AUTOWHEELS: CARE Revises Rating on INR5cr LT Bank Loan CHAWLA SONS: ICRA Suspends B+ Rating on INR7cr Cash Credit D.B. MACHINE: ICRA Reaffirms B+ Rating on INR5.50cr Loan DHARTI COTTON: CARE Revises Rating on INR12cr LT Bank Loan to B+ DILISO CERAMIC: CRISIL Rates INR72.5MM LT Loan at 'B+' EN EN ELECTRICAL: CARE Assigns B+ Rating to INR9.80cr LT Loan FAST FLOW: CRISIL Suspends B+ Rating on INR110MM Term Loan G.D. INDUSTRIES: ICRA Suspends B+ Rating on INR15cr LT Loan GARG AND COMPANY: CARE Reaffirms B+ Rating on INR11.69cr LT Loan IDEA SALES: CARE Reaffirms B Rating on INR13cr LT Bank Loan IENERGIZER LTD: S&P Affirms 'B' CCR; Outlook Stable IONISATION FILTRATION: CRISIL Suspends B Rating on INR60MM Loan JAI HIND: CRISIL Cuts Rating on INR70MM Cash Credit to 'D' JSS BUILDCON: CRISIL Suspends B Rating on INR500MM Bank Loan KAILASH MOTORS: ICRA Reaffirms B Rating on INR15.71cr Cash Loan KANKAI PIPES: CARE Reaffirms 'B' Rating on INR3.83cr LT Loan KAVERI GINNING: CARE Assigns B Rating to INR21cr LT Bank Loan M.D.J. TEXCO: CRISIL Assigns B+ Rating to INR60MM Cash Credit MADHAV COTTON: CARE Revises Rating on INR24cr LT Bank Loan to D MADHAV GINNING: CARE Revises Rating on INR20cr Loan to 'B+/A4' MALWA AUTOMOBILES: ICRA Reaffirms B+ Rating on INR17cr Loan MARUTI DEVELOPERS: CARE Assigns B+ Rating to INR8cr LT Bank Loan METCAST METALS: CRISIL Suspends D Rating on INR60MM Term Loan NARESH SINGHAL: CARE Assigns B+ Rating to INR2.50cr LT Loan NEW LAXMI: ICRA Cuts Rating on INR11cr Cash Credit to B+ PACIFIC PAPER: CARE Cuts Rating on INR9.74cr LT Loan to 'D' PANDIT AUTOMOBILES: ICRA Reaffirms B+ Rating on INR8cr Loan PARAS MOTOR: CRISIL Suspends B+ Rating on INR25MM Bank Loan PREMIER CONVEYORS: ICRA Withdraws C+ Rating on INR4.10cr Loan R K ELECTRICAL: ICRA Suspends D Rating on INR24cr Fund Based Loan RACHANA SEEDS: CARE Reaffirms B+ Rating on INR10.05cr LT Loan RAMA NEWSPRINT: ICRA Withdraws C Rating on INR94.16cr LT Loan RAMESHWAR INDUSTRIES: ICRA Reaffirms B Rating on INR7cr LT Loan REDSTONE GRANITO: CARE Assigns B+ Rating to INR14cr LT Loan SABAR FLEX: CARE Lowers Rating on INR8cr LT Bank Loan to D SAKET PROMOTERS: CRISIL Suspends B+ Rating on INR450MM Bank Loan SHUBHKAMNA BUILDTECH: CRISIL Suspends B Rating on INR1.3BB Loan SJS MOTORS: ICRA Reaffirms B Rating on INR8.75cr Cash Credit SMART CARD: CARE Assigns B+ Rating to INR46cr LT Bank Loan SOLACE ENGINEERS: CRISIL Reaffirms B+ Rating on INR50MM Loan TECPRO ENGINEERS: CRISIL Suspends B+ Rating on INR200MM Loan TECPRO INFRA-PROJECTS: CRISIL Suspends B+ Rating on INR100MM Loan TIRUPATI COTEX: ICRA Reaffirms B- Rating on INR6cr Cash Credit TRANSAFE SERVICES: ICRA Withdraws B Rating on INR295cr Bank Loan UNITECH AUOTMOBILES: CARE Reaffirms B Rating on INR60cr LT Loan VIKROMAITIC STEELS: CRISIL Cuts Rating on INR60MM Cash Loan to D N E W Z E A L A N D B'ON FINANCIAL: Investors Paid Before Bust Face Claw Back Case P H I L I P P I N E S SECURITY BANK: S&P Assigns 'BB+' Rating on Sr. Unsecured Notes T A I W A N SEMILEDS CORP: Posts $4.37-Mil. Net Loss for Third Quarter - - - - - ================= A U S T R A L I A ================= CANBERRA EYE: First Creditors' Meeting Set For Feb. 6 ----------------------------------------------------- Jamieson Louttit of Jamieson Louttit & Associates was appointed as administrator of Canberra Eye Hospital Pty Limited on Jan. 27, 2015. A first meeting of the creditors of the Company will be held at Jamieson Louttit & Associates, Penfold House, Suite 73, Level 15, 88 Pitt Street, in Sydney, on Feb. 6, 2015, at 10:00 a.m. KEEFORCE GROUP: Ferrier Hodgson Appointed as Administrators ----------------------------------------------------------- Ferrier Hodgson's Brendan Richards, Will Colwell, and Tim Michael have been appointed Voluntary Administrators of Brisbane-based linehaul carriers, Keeforce Group and Fresh Produce Logistics (FPL). Keeforce is one of Queensland's largest express linehaul carriers servicing the East Coast and Darwin on behalf of a number of major transport providers. It has additional locations in Melbourne and Sydney and operates a very modern transport fleet. Fresh Produce Logistics is a refrigerated freight business located in Bundaberg and also operates a modern fleet. The business has additional, strategically located operating premises including a dry warehouse, cold storage and hand stand facilities. The Group was established in 2002 and turnover is approximately $75 million. "The decision to enter voluntary administration has been made in the best interests of protecting the considerable assets of the company and maximizing the opportunity for it to continue as a going concern under new ownership. In the short-term Keeforce Group and Fresh Produce Logistics will continue to trade while arrangements are made to protect the interests of the employees, suppliers, and creditors," Ferrier said in a statement. Mr. Richards, Head of Ferrier Hodgson Logistics practice, said he was sad to see another family owned, Australian, transport business fail. "This is further evidence of the competitive pressures the Australian transport industry has to contend with and how hard it is to successfully manage the task of juggling low margins with a huge capital investment. In making an early call to go in to voluntary administration the Directors have provided the best possible chance of achieving a going concern sale. A timely response is critical to making the best of a bad situation," said Mr. Richards. Ferrier Hodgson will be seeking expressions of interest for both the business and assets of Keeforce Group and Fresh Produce Logistics with a resolution expected within 1-2 weeks. LEADING EDGE: Five Stores in Doubt as Parent Files Liquidation -------------------------------------------------------------- William Maher at CRN Australia reports that the fate of five Leading Edge Telecoms stores in Queensland is in doubt after parent company Cap Coast Telecoms Pty Ltd filed for liquidation. A decision was made to voluntarily wind up Cap Coast Telecoms on Jan. 20 with liquidator Mark Hutchins from advisory firm Cor Cordis appointed, according to CRN. Six business names are registered under Cap Coast Telcoms, according to an ABN search. They include Leading Edge Telecoms in Yeppoon, Rockhampton, Gracemere, Gladstone City and Emerald. Leading Edge Telecoms general manager Eugene De Francesco confirmed to CRN that these five businesses had gone into liquidation. A Telstra spokesperson also confirmed that the Yeppoon, Rockhampton, Gracemere, Gladstone City and Emerald Leading Edge Telecoms businesses had gone into liquidation, CRN says. Leading Edge Telecoms is one of Australia's largest Telstra dealers, with over 85 members, according to its web site. Leading Edge Telecoms businesses are independently owned; Cap Coast Telecoms is a member of the Leading Edge Telecoms buying group. "Customers affected by this sudden and unexpected closure are encouraged to contact our friendly and helpful Telstra store teams in Rockhampton, Gladstone, Emerald and Yeppoon," Telstra said in a statement cited by CRN. "Our teams will work closely with affected customers to ensure minimal disruption and inconvenience and the fulfilment of any outstanding repair orders." According to CRN, Local newspaper The Morning Bulletin reported on Jan. 20, that the stores had closed, with some employees reportedly receiving text messages at 2am telling them they were out of a job. Also registered under Cap Coast Telecoms is Leading Edge Telecoms Ipswich, which CRN was told was not previously operating. LIMITED EDITION: First Creditors' Meeting Slated For Feb. 5 ----------------------------------------------------------- Richard Albarran, Brent Kijurina and Cameron Shaw of Hall Chadwick were appointed as administrators of Limited Edition Luxury Homes Pty Ltd on Jan. 23, 2015. A first meeting of the creditors of the Company will be held at Hall Chadwick, Level 11, 16 St Georges Terrace, in Perth, on Feb. 5, 2015, at 10:30 a.m. LYNAS CORP: Shareholders Facing Wipe-Out, UBS Warns --------------------------------------------------- Brian Robins at The Sydney Morning Herald reports that shareholders in troubled rare earths producer Lynas Corp might be wiped out unless it boosts its weak cashflow before a heavy round of loan repayments in the year ahead, UBS has warned. According to SMH, shares in Lynas Corp dived 19 per cent on Jan. 27 after the company warned that the improvement in cash flow evident in the December quarter would not be sustained. It blamed renewed weakness in market prices stemming from mixed signals emerging from China and ongoing production glitches. In trading on Jan. 28, the shares were flat at 5c, the report notes. SMH relates that weighing on sentiment is the fact that revenue in the December quarter totalled AUD45.1 million, which failed to cover the operational and administrative costs of AUD48.3 million booked in the quarter. At the same time, Lynas has begun ramping up production at its phase two processing unit, which is also a drag on costs, while restricting revenue, says SMH. According to the report, Lynas is in a scramble to lift cash flow before it must pay US$80 million in loan repayments in the year ahead. "While production has shown signs of improvement, our concern is that it may be too late for equity holders, as the forecast free cash flow remains weak," UBS told its clients on Jan. 27, SMH relays. "However, Lynas's debt holders, namely [Japan's] JOGMEC, have shown a particular willingness to give Lynas further chances to cut costs and lift volume by extending debt repayment terms. "The next 12 months could see Lynas scrape by if further improvements are made, but still falling short of meeting principal repayments and therefore leading Lynas to potentially refinance, again." SMH notes that the bugbear is weak cash flow, with UBS estimating Lynas had negative free cash flow of about AUD9 million in the December quarter. According to the report, the company is forecasting cash flow to weaken in the March quarter, while uncertainty over Chinese government policy towards rare earths production there is weighing on product prices globally. Lynas Corporation Limited (ASX:LYC) -- http://www.lynascorp.com/ -- is a mineral exploration company operating mainly in Australia. The Company's activities are focused primarily on the exploration and development of rare earths deposits and exploration for other mineral resources. Lynas Corporation Limited is also engaged in the planning, design and construction of a concentration plant and advanced materials processing plant. The Company's subsidiaries include Lynas Malaysia Sdn Bhd, Lynas Transales Pty Ltd, Mt Weld Niobium Pty Ltd, Mt Weld Holdings Pty Ltd, Mt Weld Rare Earths Pty Ltd, Lynas Chemet Australia Pty Ltd and Mt Weld Mining Pty Ltd. * * * The company incurred three consecutive annual net losses of AUD102.61 million, AUD143.55 million and AUD345.48 million for the years ended June 30, 2012, 2013 and 2014. ========= C H I N A ========= CAR INC: Tie-Up With UCAR to Enhance Business Profile, Fitch Says ----------------------------------------------------------------- Fitch Ratings said that CAR Inc.'s (CAR: BB+/Stable) entry into the chauffeured car service market via a business collaboration with UCAR, an independent third-party service provider, is credit positive for CAR in the long term, but it has no significant impact in the short term. Under the agreement, UCAR will rent cars from CAR on both long- term and short-term bases and be responsible of hiring drivers and other tasks. The chauffeured car service will be cobranded, allowing UCAR to leverage CAR's strong brand awareness, fleet size and geographic coverage to compete with other players. Fitch sees huge market potential for the chauffeured car service industry in China, with growth driven by demand for premium and differentiated transportation from high-end customers. However, the healthy development of the industry is highly dependent on related regulations. On Jan. 9, 2015, China's Ministry of Transport announced a nationwide policy on taxi-hailing apps that expressed support for the chauffeured car industry while banning apps like Uber, Didi and Kuaidi from using unlicensed private cars and drivers. This move encourages the use of rental cars, however, there is still a lot of regulatory uncertainty in the chauffeured car industry. Fitch believes CAR, as the leading car rental company in China, would play an important role in standardising and promoting industry best practices. The collaboration with UCAR would also enhance CAR's financial profile. A long-term rental customer would help CAR reduce its cash inflow volatility and increase the long-term rental margin. At the same time, the short-term rental contract with UCAR would optimize CAR's fleet utilization. Fitch expects long-term rental to have contributed to less than 15% of CAR's total gross profit and its gross margin to have been 27% in 2014, which is much lower than that of short-term rental margins of above 40%. The bulk purchase and allotment of cars to UCAR rather than tailored contracts with individual long-term rental customers would give CAR more bargaining power when it buys vehicles from car manufacturers, which would expand the segment's margins. At the same time, CAR would optimise the utilisation of its short-term rental fleet by deploying idling vehicles to UCAR for short-term chauffeured service. CHINA BAK: Crowe Horwath (HK) Expresses Going Concern Doubt ----------------------------------------------------------- China BAK Battery, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K for the fiscal year ended Sept. 30, 2014. Crowe Horwath (HK) CPA Limited expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company has net liabilities, a working capital deficiency, accumulated deficit from recurring net losses and significant short-term debt obligations maturing in less than one year as of Sept. 30, 2014. The Company reported net income of US$37.8 million on US$123 million of net revenues for the fiscal year ended Sept. 30, 2014, compared with a net loss of US$116 million on US$186 million of net revenues in the prior year. The Company's balance sheet at Sept. 30, 2014, showed US$44.0 million in total assets, US$48.3 million in total liabilities, and a stockholders' deficit of US$4.33 million. A copy of the Form 10-K is available at: http://is.gd/z4KOgf China BAK Battery conducted business through BAK International Limited and its subsidiaries that produced prismatic cells, cylindrical cells, lithium polymer cells and high power lithium batters. The BAK International business was foreclosed on June 30, 2014. Consequently, China BAK is looking to develop, manufacture and sell energy high power lithium batteries primarily for electric vehicles when its Dalian, China manufacturing facilities start to operate in the first quarter of 2015. KAISA GROUP: Bonds Rallied Amid Shenzhen-Led Takeover Plans ----------------------------------------------------------- Bloomberg News reports that bonds of Kaisa Group Holdings Ltd. rallied for a fourth day on speculation the local government is seeking buyers for the homebuilder after it missed a coupon payment. The company's 8.875 percent notes due 2018 jumped 4.91 cents to 61.59 cents on the dollar as of 3:41 p.m. [Jan. 27] in Hong Kong, according to Bloomberg-compiled prices. Its 10.25 percent debt due 2020 advanced 5.30 cents to 61.56 cents on the dollar. The securities fell to record lows below 30 cents on Jan. 7. Bloomberg says the rebound follows reports the Shenzhen local government is seeking new investors to take over the developer based in the southern Chinese city after founder and ex-chairman Kwok Ying Shing quit on Dec. 31. Bloomberg, citing two people familiar with the matter, relates that Kaisa is being probed over alleged links to Jiang Zunyu, the former security chief of Shenzhen taken into custody in a graft probe. "The Kaisa situation took a major turn to the positive, with the expected government-orchestrated investment finally appearing to be in motion," Bloomberg quotes Owen Gallimore, a Singapore-based credit analyst at Australia & New Zealand Banking Group Ltd., as saying in a note to clients on Jan. 27. "The large cities, and Shenzhen in particular, are currently seeing strong demand for land and the developers such as Kaisa clearly have valuable assets." About Kaisa Group China-based Kaisa Group Holdings Ltd. (HKG:1638) -- http://www.kaisagroup.com/english/-- is an investment holding company, and its subsidiaries are engaged in property development, property investment and property management. As reported in the Troubled Company Reporter-Asia Pacific on Jan. 7, 2015, Standard & Poor's Ratings Services said that it had lowered its long-term corporate credit rating on China-based real estate developer Kaisa Group Holdings Ltd. to 'SD' from 'BB-'. At the same time, S&P lowered its long-term Greater China regional scale rating on Kaisa to 'SD' from 'cnBB+'. S&P also lowered its issue rating on the company's senior unsecured notes to 'CC' from 'BB-' and the Greater China regional scale rating to 'cnCC' from 'cnBB+'. S&P removed all the ratings from CreditWatch, where they were placed with negative implications on Dec. 23, 2014. "We downgraded Kaisa because the company has defaulted on a Hong Kong dollar (HK$) 400 million offshore term loan," said Standard & Poor's credit analyst Dennis Lee. "This is an event of default and could cause an acceleration of debt repayment on all its other debt. Kaisa's other debt instruments have cross-default clauses." The missed repayment on the loan puts Kaisa in "selective default" as the company has not yet defaulted on its other debt obligations. The company failed to repay its HK$400 million offshore loan from HSBC on Dec. 31, 2014, when the resignation of Kaisa's chairman, Mr. Kwok Ying Shing, triggered a mandatory repayment. KAISA GROUP: Fails to Unblock Sales During Talks With Shenzhen -------------------------------------------------------------- James Pomfret at Reuters reports that Kaisa Group failed to remove a local government block on sales at its Shenzhen projects during talks with public officials on Jan. 26, a company source familiar with the discussions said. Kaisa's top executives held a high-level meeting with senior Shenzhen government officials on Jan. 26 in the Longgang district in northern Shenzhen, where two of Kaisa's new projects are blocked, according to the source, Reuters relays. "There was no progress at all in the meeting," the report quotes a Kaisa executive as saying. A Shenzhen official told homeowners that the government "needs some time to resolve this incident" as the Kaisa case was linked to China's crackdown on corruption, according to the pro-Beijing Wen Wei Po newspaper on Jan. 26, citing a deputy director of a government bureau that deals with public complaints, reports Reuters. The Kaisa source told Reuters he wasn't at the meeting in person but was briefed on the discussions by those who were. Negotiations are continuing, Reuters notes. According to Reuters, a Kaisa spokeswoman said she wasn't aware of the talks. Shenzhen's Urban Planning, Land and Resources Commission was not available for comment, the report notes. Kaisa is struggling after a string of senior executives left unexpectedly and authorities blocked sales at some of its projects in Shenzhen late last year. The company failed earlier this month to make a $26 million interest payment on its bonds due to mature in 2020, and now has until Feb 9 to pay that coupon or else become the first Chinese real estate firm to default on its offshore debt, Reuters notes. According to Reuters, the source dismissed a report in the Apple Daily newspaper on Jan. 27 that Shenzhen authorities would end the moratorium on unsold units at several Kaisa projects within two weeks, a prospect that has buoyed investor sentiment in the troubled firm. "I haven't heard anything about that," the source, as cited by Reuters, said. Kaisa's bond prices came off their day's highs after Reuters reported the company had failed to remove the sales block, traders said. About Kaisa Group China-based Kaisa Group Holdings Ltd. (HKG:1638) -- http://www.kaisagroup.com/english/-- is an investment holding company, and its subsidiaries are engaged in property development, property investment and property management. As reported in the Troubled Company Reporter-Asia Pacific on Jan. 7, 2015, Standard & Poor's Ratings Services said that it had lowered its long-term corporate credit rating on China-based real estate developer Kaisa Group Holdings Ltd. to 'SD' from 'BB-'. At the same time, S&P lowered its long-term Greater China regional scale rating on Kaisa to 'SD' from 'cnBB+'. S&P also lowered its issue rating on the company's senior unsecured notes to 'CC' from 'BB-' and the Greater China regional scale rating to 'cnCC' from 'cnBB+'. S&P removed all the ratings from CreditWatch, where they were placed with negative implications on Dec. 23, 2014. "We downgraded Kaisa because the company has defaulted on a Hong Kong dollar (HK$) 400 million offshore term loan," said Standard & Poor's credit analyst Dennis Lee. "This is an event of default and could cause an acceleration of debt repayment on all its other debt. Kaisa's other debt instruments have cross-default clauses." The missed repayment on the loan puts Kaisa in "selective default" as the company has not yet defaulted on its other debt obligations. The company failed to repay its HK$400 million offshore loan from HSBC on Dec. 31, 2014, when the resignation of Kaisa's chairman, Mr. Kwok Ying Shing, triggered a mandatory repayment. KAISA GROUP: Home Buyers Protest, Demand Government Protection -------------------------------------------------------------- James Pomfret at Reuters reports that Kaisa Group's problems have left buyers of apartments in their upcoming developments unsure as to whether they will get their flats or suffer hefty financial losses if the firm goes bust. On Jan. 24, some 2,000 Kaisa home buyers wearing white T-shirts with the slogan "I want my home", staged a protest to demand authorities protect their rights, Reuters says. According to the report, police set up barricades preventing protesters from getting close to Shenzhen's government headquarters, as some demonstrators called on authorities to protect their rights amid president Xi Jinping's pledge to fight "tigers and flies" in China's high-profile crackdown on graft. Reuters' source, however, suggested a deeper political dimension that couldn't be easily resolved. "It's a Central Government order to keep the blockage -- so even the Shenzhen government has no means to resolve this on its own." Kaisa is also said to be in talks about a possible large equity investment into the company or selling off some of its assets, says Reuters. Last week, a source told Reuters a number of developers have approached the company about possibly buying some of its holdings. Reuters relates that the chatter resumed on Jan. 26 after financial news website Tencent Finance reported that Sunac China Holdings, which last month terminated a deal to acquire a majority stake in developer Greentown China Holdings, is in talks to buy part of Kaisa. The report said that Sunac carried out due diligence on Kaisa over the weekend, adds Reuters. About Kaisa Group China-based Kaisa Group Holdings Ltd. (HKG:1638) -- http://www.kaisagroup.com/english/-- is an investment holding company, and its subsidiaries are engaged in property development, property investment and property management. As reported in the Troubled Company Reporter-Asia Pacific on Jan. 7, 2015, Standard & Poor's Ratings Services said that it had lowered its long-term corporate credit rating on China-based real estate developer Kaisa Group Holdings Ltd. to 'SD' from 'BB-'. At the same time, S&P lowered its long-term Greater China regional scale rating on Kaisa to 'SD' from 'cnBB+'. S&P also lowered its issue rating on the company's senior unsecured notes to 'CC' from 'BB-' and the Greater China regional scale rating to 'cnCC' from 'cnBB+'. S&P removed all the ratings from CreditWatch, where they were placed with negative implications on Dec. 23, 2014. "We downgraded Kaisa because the company has defaulted on a Hong Kong dollar (HK$) 400 million offshore term loan," said Standard & Poor's credit analyst Dennis Lee. "This is an event of default and could cause an acceleration of debt repayment on all its other debt. Kaisa's other debt instruments have cross-default clauses." The missed repayment on the loan puts Kaisa in "selective default" as the company has not yet defaulted on its other debt obligations. The company failed to repay its HK$400 million offshore loan from HSBC on Dec. 31, 2014, when the resignation of Kaisa's chairman, Mr. Kwok Ying Shing, triggered a mandatory repayment. ========= I N D I A ========= A.C.P. EDUCATIONAL: CRISIL Suspends D Rating on INR850MM Loan ------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of A.C.P. Educational Trust (ACPT). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 150 CRISIL D Proposed Term Loan 850 CRISIL D The suspension of ratings is on account of non-cooperation by ACPT with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, ACPT is yet to provide adequate information to enable CRISIL to assess ACPT's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. ACPT, established in 1997, operates five colleges, offering courses in the fields of engineering, polytechnic and teacher training. The day-to-day operations of the trust are managed by its managing trustee, Mr. C Thayaparan. AADARSH EXTRUSION: CARE Rates INR6.45cr LT Bank Loan at B+ ---------------------------------------------------------- CARE assigns 'CARE B+' rating to the bank facilities of Aadarsh Extrusion Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 6.45 CARE B+ Assigned Rating Rationale The rating assigned to the bank facilities of Aadarsh Extrusion Private Limited (AEPL) is primarily constrained on account of its project stabilization risk, susceptibility of profit margins to volatility in raw material price and presence in the highly fragmented and competitive aluminium extrusion industry. The ratings, however, take comfort from the vast experience of the promoters in the aluminium industry through associate entities in a similar line of business. The ability of AEPL to stabilize its business operations by achieving envisaged level of capacity utilization and scale of operations are the key rating sensitivities. Vadodara-based (Gujarat) AEPL was incorporated in October 2012 by Mr Himmatmal Jain. AEPL has completed a Greenfield project to manufacture aluminum extruded profile with an installed capacity of 1800 Metric Tons Per Annum (MTPA) at Vadodara during mid- September 2014. Aluminium extruded profiles find application in wide range of industries such as automobile, furniture, real estate, home interior, electrical appliances etc. and can be used as alternative of wood and mild steel. AEPL plans to sell its products through network of the dealers all over India. The promoters have also promoted Neer Extrusion Private Limited which is also engaged in a similar line of business activities. AEPL incurred total cost of INR8.45 crore which was funded through debt equity ratio of 1.11 times (considering unsecured loans from the promoters as quasi capital). AEPL has commenced commercial production from September 20, 2014 with a delay of five months. ADILAXMI INDUSTRIES: CARE Reaffirms B+ Rating on INR13.18cr Loan ---------------------------------------------------------------- CARE reaffirms the rating assigned to the bank facilities of Adilaxmi Industries. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 13.18 CARE B+ Reaffirmed Rating Rationale The rating of Adilaxmi Industries continues to remain constrained by low profitability and leveraged capital structure owing to working capital intensive nature of operations. The rating is further constrained by seasonal availability of paddy, presence in a highly fragmented and competitive industry due to low entry barriers and regulated by Government and partnership nature of constitution. The rating factors in the increase in total operating income and cash accruals and improvement in debt coverage indicators along with deterioration in capital structure during FY14 (refers to the period April 1 to March 31). However, the rating continues to derive strength from the experience of the partners in the industry, increasing demand for rice and proximity to raw material (paddy) growing region in Andhra Pradesh. The ability of the firm to increase its operating income, improve profit margins in the midst of the competition and improvement in capital structure while managing its working capital requirements efficiently are the key rating sensitivities. Adilaxmi Industries (ALI), a partnership firm, was started in January 2000. The firm is engaged in milling and processing of rice and also participates in trading of related products such as paddy, sago, starch powder etc. from time to time. The managing partner, Mr Goli Dharma Raju has around 26 years of experience in rice milling and related activities. The mill is situated in Vetlapalem village in East Godavari District, Andhra Pradesh, where more than 600 rice mills are operating. ALI currently has paddy de-husking capacity of 60,000 MTPA. The firm is mainly supplying levy rice to Food Corporation of India, apart from which, it supplies non-levy rice to wholesalers in Kerala, West Bengal and bran to oil companies in Mandapeta, East Godavari District, A.P. During FY14, Adilaxmi Industries reported a PAT of INR0.07 crore on a total operating income of INR62.52 crore as compared to a PAT of INR0.28 crore on a total operating income of INR57.73 crore in FY13. AKSHATA POLYMERS: ICRA Suspends B/A4 Rating on INR5.70cr Loan ------------------------------------------------------------- ICRA has suspended the long term rating of [ICRA]B and short term rating of [ICRA]A4 assigned to the INR5.70 crore bank facilities of Akshata Polymers Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. AMBARWADIKAR INDUSTRIES: ICRA Rates INR100.50cr Cash Credit at B+ ----------------------------------------------------------------- ICRA has assigned the long term rating of [ICRA]B+ to the INR100.50 crore cash credit facility of Ambarwadikar Industries Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term, Fund Based-Cash Credit 100.50 [ICRA]B+ Assigned The assigned rating takes into consideration experience of the promoters in the sugar industry along with presence in multiple business segments such as real estate and construction, hospitality, infrastructure, educational institutes and petroleum dealership. The operations of the company are forward integrated with distillery unit; however in the past the company has resorted to direct sale of majority of molasses instead of processing it into alcohol owing to high variable operating charges for distillery unit coupled with high realization of molasses making direct sale of molasses financially more viable. The company benefits from limited initial cash outflow due to lease model of operations and the same providing financial flexibility for funding operating overheads. The promoters and directors have established relations with farmers ensuring adequate availability of cane. The rating also factors in abolishment of levy sugar quota and monthly release mechanism along with recent sugar export subsidy and interest free loans to repay cane arrears granted by the government thus favouring the operating environment. The rating however remains constrained by stretched financial profile of the company marked by high gearing and weak coverage indicators. Delay in start of crushing in current season owing to delay in finalization of cane prices is expected to shorten the crushing period which in turn is expected to result in decline in overall sugar production. The rating also considers expected pressure on profitability due to higher cane costs expectations and hence recovery of sugar prices in the domestic market along with government support (such as continuation of sugar export subsidy) will remain crucial for viability of operations. ICRA also takes note of company's modest scale of operations, absence of co-generation unit limiting the profitability potential and high working capital intensity prevalent in the sugar industry. On account of sizeable fixed lease rental charges the operating leverage for the company remains high. Further, the company remains exposed to regulatory risks regarding cane pricing, export regulations and agro climatic risks and cyclical trends inherent in the sugar industry. Going forward, ensuring adequate crushing period, managing the cane cost and maintaining adequate inventory levels will be the key ratings sensitivities. Incorporated in 2008, AIPL is involved in the manufacturing of sugar and its allied products. The company operates a sugar mill of 1250 TCD forwarded integrated with distillery unit of 30 KLPD located at Niphad taluka in Nashik district of Maharahstra. Both sugar mill and distillery unit are taken on sub-lease of six years (2012-13 to 2017-18) from Chhatrapati Sambhaji Raje Sakhar Udyog Limited while the plant is owned by K.K. Wagh Sahakari Sakhar Karkhana Limited. The company is part of 'Ambarwadikar Group' based out of Aurangabad, Maharashtra having presence in various business segments including real estate and construction, hospitality, infrastructure, educational institutes and petroleum dealership. Recent Results AIPL has reported OPBDIT of INR2.55 crore in FY14 on an operating income of INR73.58 crore. The company has reported PAT of INR0.41 crore during the same period. ANNAI APPLIANCES: CRISIL Suspends B Rating on INR50MM Cash Loan --------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Annai Appliances Manufacturing Private Limited (AAMPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 50 CRISIL B/Stable Letter of Credit 50 CRISIL A4 The suspension of ratings is on account of non-cooperation by AAMPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, AAMPL is yet to provide adequate information to enable CRISIL to assess AAMPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings' Incorporated in 2007, AAMPL; formerly known as Maneesh Gas Appliances Private Limited is engaged in the manufacturing and sale of household appliances, primarily LPG stoves. The company is promoted by Mr. Chelladurai and his son, Mr. Kailesh Raja ASCENT HOTELS: CARE Reaffirms C Rating on INR5cr LT Bank Loan ------------------------------------------------------------- CARE reaffirms ratings assigned to bank facilities of Ascent Hotels Pvt Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 5 CARE C Reaffirmed Short term Bank Facilities 23 CARE A4 Reaffirmed Rating Rationale The rating reaffirmation factors in the ongoing delays in repayment of loans (which is not rated by CARE) and servicing of interest thereon by Ascent Hotels Pvt Ltd (AHPL) and continuing losses from the hotel operations. The ratings continue to be constrained by weak financial profile characterized by high financial leverage and stressed debt coverage indicators, excess supply of hotel room inventory in Pune and the resultant adverse impact on RevPAR (revenue per available room) for the industry as a whole. The ratings, however, are strengthened by the experienced promoter group -- the Jatia group and tie-up with the Hyatt group (Hyatt) for marketing-cum-management of the hotel under "Hyatt Regency" brand. Going forward, need-based funding support from the promoters, the ability of AHPL to stabilize hotel operations, to commence operations of Service Apartments as per envisaged schedule are the key rating sensitivities. Ascent Hotels Private Limited (AHPL) is promoted by the Jatia group (81% holding) and Vascon Engineers Limited (VEL, 19% holding). The Jatia group has over two decades of experience in the hospitality industry and VEL is a leading Pune based construction company. AHPL established a 5-star deluxe hotel with 222 rooms (operational since October 2010) along with 81 service apartments (operational in February 2013) and a retail office space of 20,000 sq.ft at Weikfield Estate, Nagar Road, Pune under the "Hyatt Regency" brand. The hotel is developed on a land area of 1.85 lakh sq. ft. with a total built up area of 6.00 lakh sq. ft. AHPL has entered into management-cum-marketing arrangement with Hyatt Group (Hyatt). The hotel is fully operational with service apartments becoming operational in February 2013. For FY14, AHPL reported an operating income of INR 58.27 crore and after-tax loss of INR48.55 crore. BIOTECH INT'L: CRISIL Cuts Rating on INR115MM Cash Loan to B ------------------------------------------------------------ CRISIL has downgraded its rating on the long-term bank facilities of Biotech International Ltd (BIL) to 'CRISIL B/Stable' from 'CRISIL BB-/Negative', while reaffirming its rating on the company's short-term facilities at 'CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 20 CRISIL A4 (Reaffirmed) Cash Credit 115 CRISIL B/Stable (Downgraded from 'CRISIL BB-/Negative') Letter of Credit 65 CRISIL A4 (Reaffirmed) Proposed Long Term Bank Loan Facility 58 CRISIL B/Stable (Downgraded from 'CRISIL BB-/Negative') The rating downgrade reflects CRISIL's belief that BIL's financial risk profile will remain constrained over the medium term by the consistent pressure on its profitability, and the company's working-capital-intensive operations. BIL's revenue ranged between INR320 million and INR350 million over the three years ended 2013-14 (refers to the financial year, April 1 to March 31); and its operating profitability sequentially declined to around 2.4 per cent from around 5.6 per cent over the same period. The company reported significantly low revenue growth over the two years ended 2013-14, as the sales agreement with Clarke Mosquito Control Products Inc for long-lasting insecticidal mosquito bed nets project failed to materialise. BIL's business risk profile was constrained by delays in orders by the authorised agents, affecting overall demand. The company's inability to pass on raw material price hikes to its customers and adverse movement in foreign exchange (forex) rates led to a decline in its operating margin. BIL's financial risk profile deteriorated because of an erosion in its net worth, led by losses of around INR29.7 million over the two years ended 2013-14. Moreover, the company's debt increased over the past few years following an increase in its working capital requirements. Consequently, gearing increased to around 1.90 times as on March 31, 2014, from around 1.10 times as on March 31, 2012. BIL's gearing may increase over the medium term as well, with large working capital requirements, that may need debt- funding .The company's debt protection metrics also deteriorated with significantly weak interest coverage and net cash accruals to total debt ratios of around 0.40 times and negative 0.04 times, respectively, for 2013-14, because of subdued improvement in operating margin. CRISIL believes that though BIL's sales will increase at a modest rate over the medium term, margins will improve on account of expected price revision over the medium term to counter the raw material price increase and adverse forex rate movement. The ratings reflect BIL's below average financial risk profile marked by weak debt protection metrics, continued pressure on BIL's profitability, stagnant revenue restricting the company's scale of operations, its large working capital requirements, and exposure to risks inherent in the agrochemical market in India. These rating weaknesses are partially offset by the extensive experience of BIL's promoters in the bio-chemicals sector and the diversity in the company's product profile, which prevents revenue concentration. Outlook: Stable CRISIL believes that BIL will continue to benefit over the medium term from its promoters' extensive industry experience and the company's diverse product profile. However, the company's financial risk profile is expected to remain weak during the same period because of its large working capital requirements. The outlook may be revised to 'Positive' if BIL's financial risk profile improves with fresh equity infusion or sustained improvement in its operating margin and substantial increase in its revenue, thereby easing pressure on its liquidity. Conversely, the outlook may be revised to 'Negative' if the company's financial risk profile, particularly its liquidity, deteriorates because of significantly low revenue and profitability, thereby impacting its cash accruals; or if its working capital management weakens further. BIL was set up in 1993 by Mr. Vivek Singhal and his two sons, Mr. Ravi Singhal and Mr. Saurabh Singhal. The company manufactures bio-larvicides and bed-nets for the public health sector and bio- insecticides, bio-pesticides, growth promoters, and bio- fertilisers for the agriculture sector. BIL has a portfolio of 30 products, of which two cater to the public health sector and the rest to the agriculture sector. BIL has products that treat various crops and pests. C DOCTOR: CARE Reaffirms B/A4 Rating on INR20.20cr Bank Loan ------------------------------------------------------------ CARE reaffirms the ratings assigned to the bank facilities of C Doctor and Company Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 2 CARE B Reaffirmed Long-term/Short-term Bank 20.20 CARE B/CARE A4 Facilities Reaffirmed Short-term Bank Facilities 5.15 CARE A4 Reaffirmed Rating Rationale The ratings assigned to the bank facilities of C Doctor and Company Private Limited (CDCPL) continue to remain constrained on account of its small scale of operations and significant decline in total operating income (TOI) during FY14 (refers to the period April 1 to March 31). The ratings are also constrained by the modest profit margins which are susceptible to volatility in raw material prices, moderately leveraged capital structure, weak debt coverage indicators and stressed liquidity position with a long collection period. The ratings, however, continue to take comfort from the vast experience of the promoters and its long track record of operations. The ability of CDCPL to increase its scale of operations and improve its liquidity position with better working capital management are the key rating sensitivities. CDCPL was originally established as a partnership firm as 'C. Doctor and Company' by Mr Chinubhai Mehta and Mr Vadibhai Mehta during 1915. Later on during 1944, it was converted to a private limited company with its present name. CDCPL is engaged in the business of supply and erection of heating, ventilation (including tunnel ventilation) and air conditioning system on turnkey basis. Mr Suhas Mehta, Mr Saurabh Mehta, Ms Chhaya Mehta and Mr Sisir Chakraborty are the present directors of CDCPL. The registered office of the company is situated at Ahmedabad (Gujarat) and it has plants at five different locations in India. The clientele of the company includes players from both the Government as well as private sector players. The group companies include C. Doctor India Private Limited (engaged in the business of manufacturing of heat exchanger and vacuum cleaning system), CB Doctor Ventilators Private Limited (engaged in the business of manufacturing of industrial blowers and fans) and Mehta Machinery private Limited (engaged in the business of manufacturing of humidification ventilation plant). During FY14, CDCPL reported a TOI of INR32.53 crore and PAT of INR0.29 crore as against a TOI of INR47.77 crore and a PAT of INR0.70 crore during FY13. Furthermore, as per the provisional results for H1FY15 (provisional), CDCPL registered a TOI of INR8.14 crore. CHANDRA AUTOWHEELS: CARE Revises Rating on INR5cr LT Bank Loan -------------------------------------------------------------- CARE revises rating to the bank facilities of Chandra Autowheels Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 5 CARE B Revised from CARE B+ Rating Rationale The revision in the rating of Chandra Autowheels Private Limited (CAPL) takes into account deterioration of profitability with the company registering operating and cash losses in FY14 (refers to the period April 1 to March 31). The rating, further, continues to remain constrained on account of the modest scale of operations in a highly competitive automobile dealership industry and limited bargaining power with principal automobile manufacturers. The rating, however, favourably takes into account the experience of the management in the dealership business and its association with Ashok Leyland Limited (ALL) and Ashok Leyland John Deere Construction Equipment Company Private Limited (ALJD). The ability of the company to improve its overall financial risk profile with an improvement in the scale of operations, profitability and efficient management of working capital will be the key rating sensitivity. Udaipur-based (Rajasthan) CAPL was incorporated in 2003 by Mr Rajendra Singh Kachhawa along with his wife, Mrs Geeta Devi Kachhawa. However, CAPL remained dormant till 2010; subsequent to which, it started dealership business activities after getting a letter of intent from ALL in August, 2011. The company entered into an agreement with ALL for dealership of Light Commercial Vehicles (LCVs) for Udaipur and Jodhpur division. Furthermore, in FY13, the company entered into an agreement with ALJD for dealership of construction equipments for entire Rajasthan. The company's showrooms are located at Udaipur and Jodhpur equipped with 3-S (Sales, Service and Spare parts) facilities. It has its branch office at Jaipur and a team of 30 sales executives to look after the marketing activities. As per the Audited results for FY14, CAPL has reported a total operating income of INR34.86 crore as against INR23.37 crore during FY13 and net loss of INR2.72 crore and INR0.35 crore during FY14 and FY13 respectively. CHAWLA SONS: ICRA Suspends B+ Rating on INR7cr Cash Credit ---------------------------------------------------------- ICRA has suspended the [ICRA]B+ rating assigned to the INR7.0 crore cash credit fund based facility and the [ICRA]A4 rating assigned to the INR3.5 crore fund based sublimit of cash credit facility of Chawla Sons. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. CS promoted by late Mr. Ajitsingh Chawla started its business as proprietorship concern in 1978. The corporate status of the entity was converted to partnership firm in 2010. The firm started its business as a trader in aluminium scrap & metals alloys and gradually in 2008 the firm started its own manufacturing unit with an installed capacity of 15,600 MTPA for manufacturing aluminium ingots and base alloys. The firm has its registered office in Thane and manufacturing unit in Bhiwandi, Maharashtra. D.B. MACHINE: ICRA Reaffirms B+ Rating on INR5.50cr Loan -------------------------------------------------------- ICRA has reaffirmed the long term rating of [ICRA]B+ assigned to the INR8.00 crore fund based bank limits of D.B. Machine Tools Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based Limits- Packing Credit 2.50 [ICRA]B+ reaffirmed Fund Based Limits- FDBP (under LC) 5.50 [ICRA]B+ reaffirmed The rating continues to factor in DBMTPL's small scale of operations with stagnating turnover in the last three years, low operating profitability owing to limited value addition in the trading business and DBMTPL's exposure of the business to geographical concentration risk since the entire revenue of the company is derived from export to one country viz. Bangladesh. ICRA notes that the cyclical nature of the steel industry the end user of its products, may lead to volatility in cash flows of the company. The rating derives comfort from the experience of the promoter of around two decades in export of sponge iron and industrial plant and machinery and established relationship with the primary manufacturers of steel in Bangladesh, which enables the company to secure repeat orders. D.B. Machine Tools Private Limited was incorporated in 2006 and is a 100% export oriented company based in Kolkata. The company exports almost all its products to Bangladesh. DBMTPL is a closely held company. The promoter has a business experience of around two decades in export trade. Recent Results The company reported an operating income (OI) of INR53.02 crore and a PAT of INR0.47 crore during FY14 as compared to an OI of INR51.56 crore and a PAT of INR0.48 crore during FY13. As per the provisional results of 8MFY15, the company has reported a profit before tax of INR0.66 crore on an operating income of INR39.06 crore. DHARTI COTTON: CARE Revises Rating on INR12cr LT Bank Loan to B+ ---------------------------------------------------------------- CARE revises the rating assigned to the bank facilities of Dharti Cotton Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 12 CARE B+ Revised from CARE B Rating Rationale The revision in the rating assigned to the bank facilities of Dharti Cotton Private Limited (DCPL) was primarily on account of overall improvement in the financial risk profile marked by increase in its total operating income (TOI) coupled with improvement in net profit and debt coverage indicators during FY14 (refers to the period April 1 to March 31). The rating, however, continues to remain constrained on account of its moderately leveraged capital structure, weak debt coverage indicators and modest liquidity indicators along with its presence in a highly competitive and fragmented cotton industry. The rating is also constrained on account of susceptibility of profits to changes in government policies and fluctuations in cotton prices along with seasonality associated with cotton industry. The rating, however, continues to take comfort from the benefits derived from the vast experience of the promoters in the cotton ginning business and proximity to the cotton producing region of Gujarat along with support from group entity present in similar business. The ability of DCPL to increase its scale of operations with improvement in profitability and liquidity position along with better working capital management is the key rating sensitivity. DCPL was incorporated in 2009 at Jasdan, near Rajkot. The company was promoted by Mr Mansukhbhai Boghara with three other directors. Later in October 2010, the company was sold off to the Kakadia family who is involved in the same line of business through their business entity, named Madhav Ginning & Pressing Private Limited (MGPL; rated 'CARE B+/CARE A4' in January 2015). DCPL is engaged in the business of cotton ginning and pressing to produce cotton bales and cotton seeds. The product is mainly used in the manufacturing of cotton yarn in the textile industry. DCPL has installed capacity to produce 42,000 cotton bales and 12,870 metric tonnes per annum (MTPA) for cotton seeds as on March 31, 2014. During FY14, DCPL reported the profit after tax of INR0.17 crore on a TOI of INR80.95 crore as against the profit after tax of INR0.06 crore on a TOI of INR53.13 crore in FY13. As per the provisional result of 9MFY15, the company has registered the TOI of INR51.76 crore. DILISO CERAMIC: CRISIL Rates INR72.5MM LT Loan at 'B+' ------------------------------------------------------ CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the long-term bank facilities of Diliso Ceramic (DC). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 7.5 CRISIL B+/Stable Long Term Loan 72.5 CRISIL B+/Stable Bank Guarantee 15 CRISIL A4 Cash Credit 30 CRISIL B+/Stable The ratings reflect DC's start-up nature and modest scale of operations in the highly competitive ceramics industry, and its large working capital requirements. These rating weaknesses are partially offset by the extensive industry experience of the company's promoters, and the proximity of its manufacturing facilities to sources of raw material and labour. Outlook: Stable CRISIL believes that DC will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the company stabilises its operations in a timely manner, leading to larger-than-expected cash accruals. Conversely, the outlook maybe revised to 'Negative' if DC's accruals are lower than expectations due to reduced order flow or profitability, or if its' financial risk profile deteriorates, most likely because of a stretch in its working capital cycle or substantial debt-funded capital expenditure. DC, incorporated in 2013, is promoted by the Morbi (Gujarat)-based Shri Bharat Patel and Shri Bhavik Sanaja. The company will be manufacturing glazed wall and floor tiles at its facilities, in Morbi. It is likely to begin commercial operations in January 2015. EN EN ELECTRICAL: CARE Assigns B+ Rating to INR9.80cr LT Loan ------------------------------------------------------------- CARE assigns 'CARE B+ and CARE A4' ratings to bank facilities of En En Electrical Engineers Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 9.80 CARE B+ Assigned Short-term Bank Facilities 1.30 CARE A4 Assigned Rating Rationale The ratings assigned to the bank facilities of En En Electrical Engineers Private Limited (EEEPL) are constrained by its small scale of operations, financial profile marked by low profitability, moderate capital structure and debt coverage indicators and presence in highly fragmented industry characterized by intense competition. The ratings however, derive strength from the established track record of operations of the company, experienced promoter supported by strong management team, growth in total operating income during last three years ended FY14 (refers to period April 1 to March 31) and moderate order book. The ratings further derive strength from moderate operating cycle, reputed and established customer base and favourable demand outlook for electrical goods. The ability of the company to increase its scale of operations and improve its profitability in light of competition and manage its working capital efficiently are the key rating sensitivities. En En Electrical Engineers Private Limited (EEEPL) was originally established in the year 1994, as sole proprietorship concern by Mr.T.Aswaratha Reddy. However, it was later converted to EEEPL in 1997 with Mr.T.Aswaratha Reddy and Mrs. I. Jaya Sree as the directors of the company. EEEPL is 'A' Grade Electrical Contractor and is engaged in electrical works such as erection, installation, commissioning and repairs of transformers; construction of 220 KV sub-stations and transmission lines. EEEPL operates from its registered office located at Anantapur, Andhra Pradesh with branches located at Hyderabad (Kondapur) and Chennai. The company renders services to both private organizations and government bodies in three states (Karnataka, Gujarat and Andhra Pradesh). During February-14, the company started wind mill project for power generation and entered into agreement for power supply of 2.1 MW with Southern Power Distribution Company of A.P. Limited on September 1, 2014. FAST FLOW: CRISIL Suspends B+ Rating on INR110MM Term Loan ---------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Fast Flow Distributors Pvt Ltd (FFDPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 110 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by FFDPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, FFDPL is yet to provide adequate information to enable CRISIL to assess FFDPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. FFDPL was set up in July 2006 by Kolkata-based Mrs. Anu Agarwal and Mrs. Sita Agarwal for trading in fast-moving consumer goods. However, no such operations were undertaken and the company remained defunct. Later, in 2011, the current owner of FFDPL, the Dutta family, took over the company. FFDPL is currently developing a residential real estate project-Falta Riverside Housing and Resort'along with a hotel in Falta. The total built-up area of the project is around 0.165 million sq ft consisting of 19 residential buildings of ground+3 floors, 15 duplex cottages, a banquet hall, and a hotel. G.D. INDUSTRIES: ICRA Suspends B+ Rating on INR15cr LT Loan ----------------------------------------------------------- ICRA has suspended the [ICRA]B+ rating assigned to the INR15.00 crore fund based limits of G.D. Industries. 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 Facilities 15.00 [ICRA]B+ (Suspended) G.D. Industries (GDI) was incorporated in June 2003 and is engaged in wholesaling and retailing of gold, silver and diamond jewellery. It is a partnership firm promoted by Mr. Sunil Sharma along with Mr. Robin Sharma and Ms. Neelam Sharma. GDI offers a wide range of gold and diamond jewellery, such as necklaces, earrings, bangles, rings and anklets, in a number of designs and it operates through its single store in Chandni Chowk. The company develops the jewellery designs in-house as well as replicates the emerging design trends in the market. The firm does not have its own manufacturing unit and gets the work done on job work basis. GARG AND COMPANY: CARE Reaffirms B+ Rating on INR11.69cr LT Loan ---------------------------------------------------------------- CARE reaffirms the rating assigned to the bank facilities of Garg and Company. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 11.69 CARE B+ Reaffirmed Rating Rationale The rating assigned to the bank facilities of Garg and Company (GOC) continues to be constrained by its small scale of operations, low profitability margins, leveraged capital structure and weak coverage indicators. The rating is further constrained by susceptibility of the firm's profitability margins to fluctuation in the steel prices, presence in a highly competitive steel industry and its constitution as a partnership firm. The rating, however, continues to take comfort from the experience of the partners and direct sourcing from reputed suppliers. Going forward, the ability of GOC to increase its scale of operations while improving its capital structure and profitability margins will be the key rating sensitivities. Garg & Company (GCO) was initially constituted as a proprietorship firm in 1972 by Mr Harish Kumar Garg and in 2009, it was converted into a partnership concern with Mr Lokesh Jain, Mr Kailash Jain and Mr Harish Kumar Garg as the partners having profit sharing ratio of 33%, 33% and 34% respectively. Mr Lokesh Jain and Mr Kailash Jain have an experience of more than a decade while Mr Harish Kumar Garg has more than three and half decades of experience in the trading of steel products. GCO is a family managed business and the firm is engaged in the trading of steel products, mainly CR strips, HR strips, HR coils and HR strips. The firm sells the products mainly in Punjab. In September 2013, the firm also started manufacturing Electric Resistance Welded (ERW) pipes with total installed capacity of 12,000 tonne per annum. For FY14 (refers to the period April 01 to March 31), GOC reported a total operating income of INR53.33 crore and net loss of INR0.31 crore as against a total operating income of INR56.20 crore and PAT of INR0.10 crore for FY13. Furthermore, during FY15, the firm had achieved total sales of INR31.57 crore till December 31, 2014. IDEA SALES: CARE Reaffirms B Rating on INR13cr LT Bank Loan ----------------------------------------------------------- CARE reaffirms the ratings assigned to the bank facilities of Idea Sales Agencies Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 13.00 CARE B Reaffirmed Short-term Bank Facilities 1.35 CARE A4 Reaffirmed Rating Rationale The ratings assigned to the bank facilities of Idea Sales Agencies Private Limited (ISAPL) continue to be constrained by its short track record and small scale of business, working capital- intensive nature of operations, leveraged capital structure and weak debt service coverage indicators. The ratings are further constrained by the volatility associated with the coal prices and highly fragmented and competitive nature of the industry. The ratings, however, continue to derive support from the experienced promoters. The ability of ISAPL to increase its scale of operations while improving its profitability margins and effectively managing its working capital requirements shall be the key rating sensitivities. Incorporated in 2008, ISAPL was promoted by Mr Subhash Chand Tulsyan and Mr Yogesh Kumar. ISAPL is engaged in the trading of coal. It commenced its commercial operations in August 2012 and FY14 (refers to the period April 1 to March 31) was the first full year of operations. It procures coal domestically from the traders as well as through direct auctions and sells mainly to the domestic power producers and brick manufacturing companies. For FY14, ISAPL achieved a total operating income (TOI) of INR51.78 crore with PAT of INR0.44 crore as against TOI of INR25.27 crore with PAT of INR0.58 crore in FY13. During FY15, the company had achieved sales of INR36.56 crore in 8MFY15 (refers to the period April 1 to November 30). IENERGIZER LTD: S&P Affirms 'B' CCR; Outlook Stable --------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B' long-term corporate credit rating on iEnergizer Ltd. The outlook is stable. S&P also affirmed its 'B' long-term issue rating on the India- based business process outsourcing (BPO) company's U.S. dollar- denominated secured bank loan. S&P affirmed that ratings because it believes that iEnergizer will continue to be a fairly small player with its aggressive growth strategy in India's competitive and fragmented BPO. S&P expects iEnergizer's stable client relationships and recurring business to help the company sustain its profitability over the next 12 months. "We do not expect any material change in iEnergizer's market position over the next one to two years even with its aggressive growth strategy," said Standard & Poor's credit analyst Katsuyuki Nakai. "That's because we believe the company will continue to face strong competition from domestic and international BPO service providers. In addition, we expect iEnergizer's profitability could be volatile, given the company's limited customer and geographical diversity." S&P believes iEnergizer's firm client relationships in non-voice segments and the recurring nature of BPO revenues will temper the concentration risk and enable the company to sustain its profitability over the next 12 months. The company has an average client tenor of more than eight years, with 350 clients as of June 2014. In addition, S&P expects existing clients to continue to contribute 75%-80% of iEnergizer's revenues over the next one to two years. "The stable outlook reflects our expectation that iEnergizer will maintain steady revenue growth and EBITDA margins of 24%-26% over the next 12-24 months," Mr. Nakai said. S&P believes the company will maintain financial discipline despite its aggressive growth strategy, such that the ratio of funds from operations (FFO) to debt stays at 20%-30% over the next 12 months. S&P may lower the rating if iEnergizer's competitive position and profitability weaken, which could be because of intensifying competition, or if the company's liquidity position materially deteriorates. S&P could also lower the rating if iEnergizer makes a large acquisition, which lowers its FFO-to-debt ratio to significantly below 20%. S&P may raise the rating if iEnergizer improves its market position by increasing its scale of operations or follows more conservative financial policies. An upgrade trigger could be the FFO-to-debt ratio exceeding 30% on sustainable basis. IONISATION FILTRATION: CRISIL Suspends B Rating on INR60MM Loan --------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Ionisation Filtration Industries Private Limited (IFI). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 60 CRISIL A4 Cash Credit 60 CRISIL B/Stable Term Loan 50 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by IFI with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, IFI is yet to provide adequate information to enable CRISIL to assess IFI's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. IFI was incorporated in 2001, by Mr Vivek Joshi and his wife Mrs. Swati Joshi and is headquartered in Pune. The company manufactures air pollution control equipment mainly bag filters and electrostatic precipitators. JAI HIND: CRISIL Cuts Rating on INR70MM Cash Credit to 'D' ---------------------------------------------------------- CRISIL has downgraded its ratings on the bank facilities of Jai Hind Spinning Mills Pvt Ltd (JHSML) to 'CRISIL D/CRISIL D' from 'CRISIL BB-/Stable/CRISIL A4+'. The rating downgrade reflects instances of delay by JHSML in servicing its term debt; the delays have been caused by the company's weak liquidity. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 70 CRISIL D (Downgraded from 'CRISIL BB-/Stable') Letter of Credit Bill Discounting 50 CRISIL D (Downgraded from 'CRISIL A4+') Long Term Loan 22 CRISIL D (Downgraded from 'CRISIL BB-/Stable') JHSMPL also has modest scale of operations and large working capital requirements, and is exposed to the risk of geographic concentration in its revenue profile. However, the company benefits from its promoter's experience in the textile industry. Set up in 1992 by the late Mr. P M Pichai Chettiar, JHSML manufactures combed cotton yarn at its manufacturing unit in Namakkal (Tamil Nadu). The company's operations are currently managed by the founder's son, Mr. Muthuswamy JSS BUILDCON: CRISIL Suspends B Rating on INR500MM Bank Loan ------------------------------------------------------------ CRISIL has suspended its rating on the bank facilities of JSS Buildcon Pvt Ltd (JSS; part of Shubhkamna Group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term 500 CRISIL B/Stable Bank Loan Facility The suspension of rating is on account of non-cooperation by JSS with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, JSS is yet to provide adequate information to enable CRISIL to assess JSS's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. For arriving at the rating, CRISIL has combined the business and financial risk profiles of Shubhkamna Buildtech Pvt. Ltd (SBPL) and its subsidiaries PSA Impex Pvt. Ltd (PSA) and JSS. This is because all these entities, together referred to as Shubhkamna Group, are in the same line of business and share the same management team. The analytical approach also factors in the holding company-subsidiary relationship between the entities, and the presence of inter-company investments. Shubhkamna Group was established in 2006 through the incorporation of SBPL by Mr. Diwakar Sharma. The group is primarily involved in residential real estate development in Noida, Greater Noida, and along the Yamuna Expressway (Uttar Pradesh). SBPL holds 50 per cent stake in JSS and 70 per cent stake in PSA. The Company is currently undertaking projects with name Shubhkamna TecHomes, Shubhkamna City, Shubhkamna Legend and Shubhkamna Shikhar. JSS, incorporated in 2010, is currently developing 'Shubhkamna Monarch', a luxurious residential real estate project situated in Noida Extension. PSA, incorporated in 2010, is currently developing 'Shubhkamna Levia', a residential real estate project situated in Greater Noida. KAILASH MOTORS: ICRA Reaffirms B Rating on INR15.71cr Cash Loan --------------------------------------------------------------- ICRA has reaffirmed the long term rating of [ICRA]B and short term rating of [ICRA]A4 for the INR32.6 Crore(enhanced from INR30.0 crore) bank facilities of Kailash Motors. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 15.71 [ICRA]B reaffirmed Overdraft 13.85 [ICRA]B/[ICRA]A4 reaffirmed Unallocated 3.04 [ICRA]B/[ICRA]A4 assigned The rating reaffirmation takes into consideration the strength derived from KM's dealership of Tata Motors Limited (TML), which is the market leader in the commercial vehicles (CV) industry in India. ICRA also favorably factors in the firm's wide network comprising of one 3S facilities and five 1S facilities in the state of Uttar Pradesh. Further, the extensive experience of the promoters in the automobile dealership business continues to provide comfort to the rating. However, the rating is constrained by the cyclicality of commercial vehicles industry as the business prospects of the firm are closely linked to the demand for CVs. The CV industry has been undergoing a downturn for the past couple of years, which has affected the performance of the firm. Although the trend is reversing and sale of HCVs has started improving FY15. The same is expected to impact SAPL's revenue and profitability in the near-term. In addition, the company faces competition for sales due to the presence of other OEM dealerships and for service and spares due to the presence of other TML dealership in the vicinity. Going forward, the company's ability to increase the scale of business, raise the share of service and spares income and improve the financial risk profile would be the key rating sensitivities. Kailash Motors (KM) started as a partnership company in 1958 as a dealership of the then Tata Engineering & Locomotive Co. Ltd. (now Tata Motors Ltd). At present, it deals in the entire range of heavy commercial vehicles of TML in addition to some of its MUVs and spare parts. Kailash Motors currently has dealerships in six districts with coverage in eight districts namely Kanpur, Kanpur Dehat, Fatehpur, Banda, Farrukhabad, Lalitpur, Mahoba, and Kannauj. The business is managed by two partners namely Dr. Ishwar Chandra and Mr. Vineet Chandra. KANKAI PIPES: CARE Reaffirms 'B' Rating on INR3.83cr LT Loan ------------------------------------------------------------ CARE reaffirms the ratings assigned to the bank facilities of Kankai Pipes & Fittings Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 3.83 CARE B Reaffirmed Long-term/Short-term Bank Facilities 3.00 CARE B/CARE A4 Reaffirmed Rating Rationale The ratings assigned to the bank facilities of Kankai Pipes & Fittings Private Limited (KPFPL) continue to remain constrained on account of its short track record of operations, presence in highly fragmented and competitive polyvinyl chloride (PVC) pipe industry, leveraged capital structure, weak debt coverage indicators and susceptibility of profit margin to fluctuations in the raw material prices. However, the ratings continue to derive strength from the experience of the promoters in the industry. Furthermore, the ratings also take into consideration the stabilization of the manufacturing operations of KPFPL with increase in the operating income during 9MFY15 (refers to the period April 1 to March 31). KPFPL's ability to increase its scale of operations, improvement in the profit margins and capital structure along with better working capital management are the key rating sensitivities. Rajkot-based (Gujarat) KPFPL was incorporated in October 2012 by Mr Kalpesh Meghani, Mr Mahendra Talpada and Mr Dhaval Ghadiya. KPFPL is engaged in the manufacturing of plastic pipes & fittings (mainly cPVC pipes & fittings). KPFPL undertook implementation of green-field project for setting up plant for manufacturing of plastic pipes & fittings with an annual installed capacity of 2,400 metric tons per annum (MTPA). KPFPL commenced commercial production from August 2013. The products manufactured by KPFPL are used in residential, commercial as well as industrial units. During FY14, KPFPL reported total operating income (TOI) of INR1.92 crore and net loss of INR0.40 crore. As per 9MFY15 (provisional) financials, KPFPL has reported TOI of INR8.22 crore. KAVERI GINNING: CARE Assigns B Rating to INR21cr LT Bank Loan ------------------------------------------------------------- CARE assigns 'CARE B' rating to bank facilities of Kaveri Ginning Industries Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 21 CARE B Assigned Rating Rationale The rating assigned to the bank facilities of Kaveri Ginning Industries Private Limited (KGIPL) is primarily constrained on account of implementation and stabilization risk associated with its green field cotton ginning project and presence in highly fragmented and competitive cotton ginning industry. The rating is further constrained due to susceptibility of operating margins to cotton price fluctuation, seasonality associated with the cotton availability and susceptibility to the change in the government policies. The rating however, derives strength from the experience of promoters for more than two decades in cotton ginning industry, location advantage with presence in major cotton-growing belt of Telanagana and operational synergies with established group companies. The ability of the company to stabilize operations and achieve the envisaged level of production and profitability in light of the competitive nature of the industry while managing its working capital requirement efficiently are the key rating sensitivities. Incorporated in 2014, Nalgonda-based (Telanagana), KGIPL is promoted by Mr. K. Ramesh and Mr. J. Srinivas. The company is setting up a processing unit for undertaking cotton ginning and pressing business with a proposed installed capacity of 75000 number of bales per annum and 2,50,000 quintals of seeds. The company has purchased 48 machines and plans to run in 3 shifts per day during the period October to July due to seasonal nature of business. The company is planning to purchase the raw material (raw cotton) from local farmers located in and around Nalgonda. The company is planning to sell its products to mills located in Tamil Nadu , Andhra Pradesh, Maharashtra , Haryana and Punjab. The total cost of project was INR14.19 crore, which was funded through term loan of INR6.00 crore and rest of INR8.19.crore through equity. The company has started its commercial operations from January 2015. M.D.J. TEXCO: CRISIL Assigns B+ Rating to INR60MM Cash Credit ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank facilities of M.D.J. Texco Fab Pvt Ltd (MTFPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60 CRISIL B+/Stable Term Loan 45 CRISIL B+/Stable The ratings reflect MTFPL's limited track record of operations in a fragmented industry, the geographical concentration in its revenue profile, and its weak financial risk profile. These rating weaknesses are partially offset by the extensive experience of MRFPL's promoters in the textile industry. Outlook: Stable CRISIL believes that MTFPL will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if MTFPL increases its scale of operations and profitability resulting in improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if the company's financial risk profile weakens further because of large borrowings for funding working capital requirements. Established in October 2013, MTFPL manufactures polar fabric rolls used in producing blankets, bed sheets, muffler, and suits, among other products. MTFPL's manufacturing unit is in Alipur Karnal (Haryana). The company is managed by brothers Mr. Ajay Jain and Mr. Vijay Jain. MADHAV COTTON: CARE Revises Rating on INR24cr LT Bank Loan to D --------------------------------------------------------------- CARE revises rating assigned to bank facilities of Madhav Cotton Ginning and Pressing Factory. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 24 CARE D Revised from CARE B+ The rating assigned by CARE is based on the capital deployed by the partners and the financial strength of the firm at present. The rating may undergo a change in case of the withdrawal of capital or the unsecured loans brought in by the partners in addition to the financial performance and other relevant factors. Rating Rationale The revision in the rating assigned to the bank facilities of Madhav Cotton Ginning and Pressing Factory (MCGPF) takes into account the on-going delay in debt servicing on its bank facilities due to its stretched liquidity arising out of increased working capital intensity of its operations. MCGPF is a partnership entity engaged in the business of cotton ginning & pressing and trading of cotton seeds. The partnership firm was constituted in 1995 amongst the key promoter Mr Madhavji Zanzarukiya and his family members. MCGPF operates with 36 cotton ginning machines and one pressing machine which enables the firm to produce 400 bales of processed cotton per day (1 bale is approximately 170 Kgs). As per the provisional results for FY14 (refers to the period April 1 to March 31), MCGPF reported a total operating income of INR165.99 crore (FY13: INR129.20 crore) and a PAT of INR1.02 crore (FY13: INR0.07 crore). MADHAV GINNING: CARE Revises Rating on INR20cr Loan to 'B+/A4' -------------------------------------------------------------- CARE revises and reaffirms rating assigned to the bank facilities of Madhav Ginning & Pressing Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term/ Short-term 20 CARE B+/CARE A4 Revised Bank Facilities from CARE B/ CARE A4 Rating Rationale The revision in the ratings assigned to the bank facilities of Madhav Ginning & Pressing Private Limited (MGPL) was primarily on account of overall improvement in the financial risk profile marked by increase in its total operating income (TOI) coupled with improvement in net profit, capital structure and debt coverage indicators during FY14 (refers to the period April 1 to March 31). The ratings, however, continue to remain constrained on account of its weak debt coverage indicators and modest liquidity indicators along with working capital-intensive nature of operations and its presence in a highly competitive and fragmented cotton industry with limited value addition and prices and supply for cotton being highly regulated by government. The ratings are also constrained on account of susceptibility of profits to fluctuations in cotton prices along with seasonality associated with cotton industry. The ratings, however, continue to take comfort from the benefits derived from the experience of the promoters in the cotton ginning business and proximity to the cotton producing region of Gujarat. The ability of MGPL to increase its scale of operations with improvement in profitability and liquidity position along with better working capital management is the key rating sensitivity. MGPL was incorporated in 2005 by Mr Chhaganbhai Kakadiya, at Rajkot district, Gujarat, and is engaged in the cotton ginning and pressing business. As on March 31, 2014, MGPL had a total installed capacity of 13,000 bales of cotton and 24,000 metric tonnes per annum (MTPA) of cotton seeds per annum. MGPL was also engaged in the trading of cotton bales and cotton seeds which constituted around 66% of the total operating income (TOI) during FY13, however, during FY14, MGPL have not generated any revenue from the trading of cotton bales and cotton seeds. During FY14, MGPL reported the profit after tax of INR0.18 crore on a TOI of INR110.54 crore as against the profit after tax of INR0.06 crore on a TOI of INR82.23 crore in FY13. As per the provisional result of 9MFY15, the company has registered the TOI of INR74.79 crore. MALWA AUTOMOBILES: ICRA Reaffirms B+ Rating on INR17cr Loan ----------------------------------------------------------- ICRA has reaffirmed its long term rating of [ICRA]B+ on the INR17.0 crore long term bank facilities of Malwa Automobiles Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 17.00 [ICRA]B+; reaffirmed The rating reaffirmation takes into account the decline in revenues registered by the company in 2013-14 owing to decline in passenger vehicle sales in FY14 coupled with reduction in market share of its principal, Tata Motors Ltd. ICRA's rating continues to be constrained by the low margins of the company, inherent to automobile dealerships; weak financial profile characterized by high gearing and weak coverage indicators; stretched liquidity position due to the high working capital intensity of the company; and high competitive intensity from dealers of other OEM's leading to pressure on sales and profitability. ICRA's ratings, however, positively factor in the extensive track record of the company as a dealership of Tata Motors Limited(TML), in addition to the vast experience of the promoters in the automobile dealership business; through their dealerships of Hyundai Motor India Limited, General Motors India Private Limited (GMIPL), Nissan Motor India Private Limited and Honda Motorcycle & Scooter India Pvt. Ltd. Going forward, the company's ability to increase the scale of operations and maintain the profitability while optimally managing its working capital cycle, will remain the key rating sensitivities. MAPL has been operating as a Tata Motors dealership since 1999 in Karnal, Haryana. The company has a sales showroom cum service workshop, in Karnal as well as Panipat, Haryana (since 2006). As a result of successful running of the operations in Karnal and Panipat, the promoters have opened a new showroom in Rohini (Delhi), which commenced operations this year. In addition to the automobile dealership business, the company also has a HPCL fuel pump located in Kundli, Haryana. The promoters of the company are highly experienced in the field of automobiles and have been engaged in this business for 35 years. Apart from MAPL, the group also has dealerships of Hyundai Motors India Limited, Nissan Motor India Private Ltd, Chevrolet (GM) and Honda Motorcycle & Scooter India Pvt. Ltd. in Karnal and Delhi. MARUTI DEVELOPERS: CARE Assigns B+ Rating to INR8cr LT Bank Loan ---------------------------------------------------------------- CARE assigns 'CARE B+' rating to the bank facilities of Maruti Developers. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 8 CARE B+ Assigned Rating Rationale The rating assigned to the bank facilities of Maruti Developers (MDV) is primarily constrained on account of its constitution as a proprietorship firm, nascent stage of project implementation with low booking status, low level of receipt of customer advances against the value of booked units and its presence in a cyclical and highly fragmented real estate industry. The rating, however, takes comfort from the vast experience of the proprietor in real estate development business. The ability of MDV to successfully complete its on-going real estate project and timely receipt of booking advance and sale of balance units at envisaged prices are key rating sensitivities. Established in 2007, Ahmedabad-based (Gujarat) MDV is engaged in real estate development and is currently executing a residential- cum-commercial project at Ahmedabad, Gujarat, namely, "Maruti Heights". Mr Akshay Thakkar is the proprietor and manages the day- to-day operations of MDV. The project has 330 residential units and 16 shops with total saleable area of the project 244,656 sq. ft. The project is expected to complete by September 2016. Necessary regulatory approvals such as commencement certificate, plan approvals have been received by MDV. During 2010-2014, MDV has executed seven residential projects with aggregate construction area of 1.95 lakh square feet (Sq. ft). Moreover, MDV has recently completed a residential project "Maruti VII" which has 80 flats consisting total salable area of 77,310 sq. ft. METCAST METALS: CRISIL Suspends D Rating on INR60MM Term Loan ------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Metcast Metals Pvt Ltd (MMPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 15 CRISIL D Letter of Credit 15 CRISIL D Term Loan 60 CRISIL D The suspension of ratings is on account of non-cooperation by MMPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, MMPL is yet to provide adequate information to enable CRISIL to assess MMPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. Incorporated in 2007, and promoted by Mr. Rakesh Shrivastav and his son Mr. Rahul Shrivastav, MMPL manufactures stainless steel and alloy steel castings used in the steel, power, and engineering industries. The company started its operations from April 2012 and has its foundry at Khurda (Odisha). NARESH SINGHAL: CARE Assigns B+ Rating to INR2.50cr LT Loan ----------------------------------------------------------- CARE assigns 'CARE B+/CARE A4' rating to the bank facilities of Naresh Singhal & Company. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 2.50 CARE B+ Assigned Short-term Bank Facilities 4.50 CARE A4 Assigned Rating Rationale The ratings assigned to the bank facilities of Naresh Singhal & Company (NSC) are primarily constrained by its small scale of operations, declining profitability margins on y-o-y basis in last three financial years (FY12-FY14 [refers to the period April 01 to March 31]) and leveraged capital structure. The ratings are further constrained by customer concentration risk coupled with concentrated order book and proprietorship nature of constitution and its presence in highly fragmented and competitive industry. The ratings, however, draws strength from the experienced proprietor in execution of civil contracts and long track record of operations of the firm and moderate operating cycle. Going forward, NSC's ability to scale-up its operations while stabilizing its profitability margins and capital structure along with successful execution of projects within the estimated time and costs would be the key rating sensitivities. NSC was established as a proprietorship firm in 1992 by Mr Naresh Singhal. The firm is engaged execution of civil contracts, viz, laying of sewage water pipelines, construction of overhead tanks and water treatment facilities mainly in the Noida region. The majority of the contracts are obtained from Public Works Department (PWD) and Municipal Corporation through competitive bidding process. Most of the contracts are fixed price contracts with an execution tenor of 6-18 months. For FY14 (refers to the period April 01 to March 31), NSC achieved a total operating income (TOI) of INR12.10 crore with PBILDT and profit after tax (PAT) of INR0.96 crore and INR0.71 crore, respectively, as against TOI of INR2.42 crore with PBILDT and PAT of INR0.29 crore and INR0.16 crore, respectively, in FY13. The firm has achieved total income of INR16 crore till December 24, 2014. NEW LAXMI: ICRA Cuts Rating on INR11cr Cash Credit to B+ -------------------------------------------------------- ICRA has revised downwards the long term rating of INR11.00 crore cash credit and INR6.86 term loan of New Laxmi Steel & Power Private Limited from [ICRA]BB- to [ICRA]B+. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 11.00 Downgraded to [ICRA]B+ Term Loan 6.86 Downgraded to [ICRA]B+ The revision in the rating primarily reflects the deterioration in the financial risk profile of the company during 2013-14 as reflected by negative operating margins on account of significant increase in operating cost primarily power cost as well as consumables expenses, high gearing and weakening of coverage indicators. ICRA notes that although the company incurred operating losses in its steel business in FY14, it was able to post net profits largely driven by profits from trading of commodity derivatives. The rating also takes into account the vulnerability of the profitability to adverse movement in raw material prices, the working capital intensive nature of operations that adversely affects the company's liquidity position and the company's exposure to the cyclicality associated with the steel industry, which is passing through a downturn at present. The rating, however, favourably takes into account the long track record of the promoters in the steel industry, lower cost of manufacturing as compared to the standalone rolling mills due to backward integration into manufacturing of ingots and billets, and favourable location of the plant in Odisha, which is in proximity to sponge iron manufacturing belt, thereby leading to low freight cost. The rating also takes into account the manufacturing franchisee arrangement with Kamdhenu Ispat Limited to sell the entire production of TMT bars under the "Kamdhenu" brand, with the latter being an established player having a strong brand image in the TMT bar industry. NLSPPL has been promoted by Mr. Pawan Kumar Gupta and Rahul Agarwal, who have experience in diverse sectors including steel, granite, and infrastructure. Incorporated in 2007, NLSPPL has been engaged in the manufacturing of steel ingots, billets and TMT bars with its manufacturing facility located at Khurda, Bhubaneswar. The company has an installed capacity of 15,000 TPA of induction furnace and a 29,700 TPA rolling mill. The company is also engaged in trading of mild steel rods, scrap, etc and transportation through its truck and trailer. Recent Results The company reported an operating income (OI) of INR71.54 crore and a PAT of INR0.17 crore during FY14 as compared to an OI of INR87.16 crore and a PAT of INR0.19 crore during FY13. PACIFIC PAPER: CARE Cuts Rating on INR9.74cr LT Loan to 'D' ----------------------------------------------------------- CARE revises the ratings assigned to the bank facilities of Pacific Paper Products. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 9.74 CARE D Revised from CARE BB- Short-term Bank Facilities 3.00 CARE D Revised from CARE A4 Long-term/Short-term Bank 5.00 CARE D/CARE D Revised Facilities from CARE BB-/CARE A4 Rating Rationale The revision in the ratings assigned to the bank facilities of Pacific Paper Products (PPP) takes into account the delays in debt servicing by PPP due to its stressed liquidity position. Pacific Paper Products (PPP) is a partnership concern established in 2006 by Mrs Snigdha Jhunjhunwala and Mrs Payal Bhutani. The firm is engaged in the manufacturing and trading of paper products. The manufacturing units are located in Rudrapur (Uttrakhand), Delhi and Noida (Uttar Pradesh). The units located at Delhi and Noida provide offset printing support to its main manufacturing facility at Rudrapur. The firm has an installed capacity to manufacture 2.60 crore sheets of computer stationary leaves per annum, 0.90 crore sheets of plain copier paper/photo copier/inkjet paper per annum and 1.00 crore sheets of multicolor offset printed forms, books, covers, leaflets, posters, pads, and other notebooks per annum. The products are sold to government departments, banks, insurance companies, school and colleges. The firm also exports composition notebooks and other products to United States of America, United Arab Emirates, Iraq, South Africa and Malawi. For FY14 (refers to the period April 1 to March 31), PPP achieved a total operating income of INR38 crore with net profit of INR0.96 crore as compared to the total operating income of INR28.49 crore with net profit of INR0.31 crore in FY13. PANDIT AUTOMOBILES: ICRA Reaffirms B+ Rating on INR8cr Loan ----------------------------------------------------------- ICRA has reaffirmed its long term rating of [ICRA]B+ on the INR9.10 crore long term fund based bank facilities of Pandit Automobiles Private Limited. ICRA has also reaffirmed its short term rating of [ICRA]A4 on the INR0.40 crore short term fund based bank facilities of the company. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 8.00 [ICRA]B+; reaffirmed Unallocated 0.40 [ICRA]B+/[ICRA]A4; reaffirmed Non Fund Based Bank Guarantee 1.00 [ICRA]B+; reaffirmed ICRA's ratings continue to be constrained by the company's thin profit margins and weak coverage indicators. Further, apart from susceptibility to slowdown in the passenger vehicles (PV) segment, PAPL is also subject to high competitive intensity, with pressure to pass-on discounts to end customers. ICRA, however, positively factors in PAPL's presence as an authorised dealer of Maruti Suzuki India Limited (MSIL), the leader in the PV market in India, as well as the extensive experience of its promoters. The ratings also take into account the increasing operating income of PAPL, aided by opening of new outlets in its territory. PAPL's ability to scale up revenues and improve its capital structure and debt protection metrics will be the key rating sensitivities. PAPL, a private limited company, was incorporated by Mr. Jitender Sharma in 1998. The company is an authorized dealer of passenger vehicles for MSIL. Mr. Sharma is the CEO of the company and handles its day to day affairs. Currently PAPL operates a 3S (sales, service and spares) outlet in Jagadhri in Yamunanagar District of Haryana and has branches at Radaur, and Bilaspur in Haryana along with a workshop in Yamunanagar city. Recent results In 2013-14, PAPL reported an operating income of INR72.5 crore and a net profit of INR0.1 crore as against an operating income of INR62.1 crore and a net profit of INR0.1 crore in the previous year. PARAS MOTOR: CRISIL Suspends B+ Rating on INR25MM Bank Loan ----------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Paras Motor Industries (PMI). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 60 CRISIL A4 Cash Credit 15 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 25 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by PMI with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, PMI is yet to provide adequate information to enable CRISIL to assess PMI's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. Set up in 1997, PMI is a proprietorship firm of Mr. Adish Jain; it is engaged in the fabrication and manufacture of bus bodies. The firm's plant is at Faridabad (Haryana). PREMIER CONVEYORS: ICRA Withdraws C+ Rating on INR4.10cr Loan ------------------------------------------------------------- ICRA has withdrawn the long-term rating of [ICRA]C+ assigned to the INR4.10 crore fund-based facilities and the short-term rating of [ICRA]A4 assigned to the INR4.00 non-fund-based facilities of Premier Conveyors Private Limited, which were under notice of withdrawal. The ratings are withdrawn as the period of notice of withdrawal is completed. R K ELECTRICAL: ICRA Suspends D Rating on INR24cr Fund Based Loan ----------------------------------------------------------------- ICRA has suspended [ICRA]D rating assigned to the INR24 crore fund based limits of RK Electrical Industries (India) Private Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. R K Electrical Industries (India) Private Limited (RKEIPL) was incorporated in the year 1974 by Mr. R.K Sethi and is engaged in the business of manufacturing wires and cables. The company's product profile includes Low Tension power cable, control cables, instrumentation cables, low tension Aerial bunched cables (ABC). The company also manufactures Signalling and quad cables for Indian Railways. RACHANA SEEDS: CARE Reaffirms B+ Rating on INR10.05cr LT Loan ------------------------------------------------------------- CARE reaffirms ratings assigned to bank facilities of Rachana Seeds Industries Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 10.05 CARE B+ Reaffirmed Short term Bank Facilities 30.50 CARE A4 Reaffirmed Rating Rationale The ratings assigned to the bank facilities of Rachana Seeds Industries Private Limited (RSIPL) continue to remain constrained on account of fluctuating turnover coupled with weak financial risk profile marked by thin profit margin, highly leveraged capital structure, weak debt coverage indicators and stressed liquidity position. The ratings further continue to remain constrained due to susceptibility of its profit margins to fluctuations in the raw material prices and foreign exchange rates and its presence in a highly fragmented and seasonal agro- commodity industry. The ratings factor in the decline in total operating income and debt coverage indicators and elongation of operating cycle along with improvement in profitability and capital structure during FY14 (refers to the period April 1 to March 31). The ratings, however, continue to take into account vast experience of the promoters, long track record of the company in the groundnut processing industry and its proximity to the raw material source. RSIPL's ability to improve its profit margins in light of the volatile raw material prices coupled with improvement in the capital structure and debt coverage indicators remain the key rating sensitivities. Furthermore, better management of working capital thereby improving liquidity position would also remain crucial. RSIPL was formed in 1985 as a partnership firm Rachana Seeds Industries (RSI) by Mr Vikram Duvani along with his mother Mrs Sarojben Duvani. However, in February 2011, five new partners, relatives of Mr Vikram Duvani, joined the business. Later in October 2011, the firm was reconstituted into a private limited company under its current name. RSIPL is engaged in the business of processing and trading of agro commodities mainly groundnut seeds. The company generates more than 90% of its revenue from processing of groundnut seeds. RSIPL operates from its facility located at Junagadh (Gujarat). RSIPL sells groundnut and groundnut seeds in the domestic markets as well as exports it to Japan, Ukraine, Netherland, Canada, Indonesia and Pakistan. Exports sales comprised about 56% of the total sales of the company in FY14. During FY14, RSIPL reported a total income of INR93.53 crore with a PAT of INR0.53 crore as against a total income of INR116.97 crore and PAT of INR0.62 crore during FY13. During 9MFY15, RSIPL has achieved TOI of INR112.45 crore. RAMA NEWSPRINT: ICRA Withdraws C Rating on INR94.16cr LT Loan ------------------------------------------------------------- ICRA has withdrawn the long term rating [ICRA]C assigned to the INR94.16 crore long term loans & INR73 crore fund-based facilities and A5 rating assigned to the INR60 crore short-term non-fund based facilities of Rama Newsprint & Papers Limited, as the notice period of three years since suspension of rating has expired. RAMESHWAR INDUSTRIES: ICRA Reaffirms B Rating on INR7cr LT Loan --------------------------------------------------------------- ICRA has reaffirmed the [ICRA]B rating assigned to the long term fund based facilities of INR8.75 crore of Rameshwar Industries. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Tern Fund Based Cash Credit 7.00 [ICRA]B reaffirmed Long Tern Fund Based-Term Loan 1.75 [ICRA]B reaffirmed The reaffirmation of the rating continues to take into account the relatively new and small scale of firm's operations; its weak financial risk profile characterized by leveraged capital structure and moderate coverage indicators; and the vulnerability of firm's profitability to adverse movements in raw material prices which are subject to seasonality and crop harvest. The rating also takes into account the limited value additive nature of firm's operations; the highly competitive and fragmented industry structure given the low entry barriers as well as the exposure to regulatory risks with regard to MSP for raw cotton and cotton exports. ICRA also takes note of RI's constitution as a partnership concern and the risks inherent in a partnership firm with respect to capital withdrawals and its potential impact on credit profile as well as on continuity of organization. The rating, however, continues to favorably take into account the longstanding experience of the partners in cotton industry; firm's favorable location in Tankara, Gujarat- an area with easy availability of raw cotton and the moderately diversified product profile due to its presence in the crushing operations. Established in May 2013, Rameshwar Industries (RI) is engaged in cotton ginning, pressing and cotton seed crushing at Tankara, Rajkot in Gujarat. The facility is equipped with 24 ginning machines, 1 pressing machine and 5 crushing machines with processing capacity of 17,740 metric tonnes of finished cotton and 13,140 metric tonnes oil annually. RI is a partnership firm with the promoters having an extensive experience in the cotton industry. RI commenced its commercial operations from January 2014. Recent Results For the year ended March 31st, 2014, RI reported an operating income of INR6.82 crore and a profit before tax of INR0.14 crore. REDSTONE GRANITO: CARE Assigns B+ Rating to INR14cr LT Loan ----------------------------------------------------------- CARE assigns 'CARE B+/CARE A4' ratings to the bank facilities of Redstone Granito Pvt. Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 14.00 CARE B+ Assigned Short term Bank Facilities 6.00 CARE A4 Assigned Rating Rationale The ratings are constrained due to susceptibility of Redstone Granito Pvt. Ltd.'s (RGPL's) profitability to volatile input prices, high working capital intensity, modest scale of operations, stressed debt protection indicators, high leverage and its presence in the highly competitive ceramic tile manufacturing industry which has close linkages to the cyclical real estate sector. The ratings, however, derive strength from the wide experience of the promoters of RGPL in the tiles industry, its strategic presence in the ceramic tile cluster of Gujarat and established marketing and distribution network. RGPL's ability to scale up its operation along with sustenance of its profitability in the wake of rising fuel and power cost and effective working capital management are the key rating sensitivities. Incorporated in December 2010, RGPL is engaged in manufacturing of vitrified ceramic tiles. RGPL was promoted by Mr. Jagjivan Varmora, Mr. Vishal Raiyani, Mr. Nilesh Bhalodia and Mr. Ramesh Ranipa. Subsequently Mr. Jagjivan Varmora's stake was bought out by Mr. Maganlal Kasundra. RGPL commenced production from November 2011 at its manufacturing facility located at Wankaner in Rajkot district of Gujarat, which is a ceramic tile hub. RGPL has an installed capacity of 70,000 Metric Tonne Per Annum (MTPA) as on March 31, 2014. Also RGPL has commissioned its wall tiles manufacturing facility in October 2014 with an installed capacity of 19,000 MTPA. During FY14 (refers to the period April 1 to March 31), RGPL reported a total operating income of INR68.17 crore (FY13: INR86.84 crore) with a PAT of INR3.39 crore (FY13: INR0.34 crore). As per the provisional results for H1FY15, RGPL has reported a total operating income of INR40.35 crore with a PBT of INR2.19 crore. SABAR FLEX: CARE Lowers Rating on INR8cr LT Bank Loan to D ---------------------------------------------------------- CARE revises ratings assigned to bank facilities of Sabar Flex Industries. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 8.00 CARE D Revised from CARE BB Short term Bank Facilities 0.50 CARE D Revised from CARE A4 Rating Rationale The revision in the ratings assigned to the bank facilities of Sabar Flex Industries (SFI) is primarily driven by a delay in debt repayment due to weak liquidity position as well as delay in receipt of subsidy from the government. Establishing a clear debt servicing track record with an improvement in the liquidity position and increase its scale of operation with an improvement in profit margins and capital structure are the key rating sensitivities. Established during March 2007, SFI is a partnership firm promoted by Mr Udesinh A. Parmar, Mr Chandrakanth H Patel, Mr Hikmat Bahadur K Kunwar, Mr Ramesh Patel, Mr Vasant Patel, Mr Vinod Patel and Mr Ramesh Shah. SFI is engaged in manufacturing of packaging material like multi-layer laminated wrappers, stand up pouches for all type of FMCG products, cosmetic products, automobile lubricant packaging, etc. SFI's manufacturing is located at Himatnagar and has an installed capacity of 2,300 Metric Tonne Per Annum (MTPA) of L.D. Films and 2425 MTPA of laminated pouch printed bags as on March 31, 2014. L.D. films are mainly used for manufacturing of printed bags and pouches which in turn find application as a packing material for salts, pesticides, insecticides and other agri products. During FY14 (refers to the period April 1 to March 31), SFI reported a TOI of INR32.14 crore and PAT of INR0.80 crore as against TOI of INR34.45 crore and PAT of INR1.03 crore during FY13. During 9MFY15, SFI achieved a TOI of INR16 crore. SAKET PROMOTERS: CRISIL Suspends B+ Rating on INR450MM Bank Loan ---------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Saket Promoters Ltd (SPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 450 CRISIL B+/Stable Proposed Short Term Bank Loan Facility 150 CRISIL A4 The suspension of ratings is on account of non-cooperation by SPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SPL is yet to provide adequate information to enable CRISIL to assess SPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. Incorporated in 2002, SPL is involved in real estate development and execution of civil construction projects in Kolkata (West Bengal). The company's day-to-day activities are being managed by Mr. Sashi Kant Khetan. SHUBHKAMNA BUILDTECH: CRISIL Suspends B Rating on INR1.3BB Loan --------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Shubhkamna Buildtech Pvt. Ltd. (SBPL; part of the Shubhkamna group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 1,300 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by SBPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SBPL is yet to provide adequate information to enable CRISIL to assess SBPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. Shubhkamna Group was established in 2006 through the incorporation of SBPL by Mr. Diwakar Sharma. The group is primarily involved in residential real estate development in Noida, Greater Noida, and along the Yamuna Expressway (Uttar Pradesh). SBPL holds 50 per cent stake in JSS and 70 per cent stake in PSA. The Company is currently undertaking projects with name Shubhkamna TecHomes, Shubhkamna City, Shubhkamna Legend and Shubhkamna Shikhar. JSS, incorporated in 2010, is currently developing 'Shubhkamna Monarch', a luxurious residential real estate project situated in Noida Extension. PSA, incorporated in 2010, is currently developing 'Shubhkamna Levia', a residential real estate project situated in Greater Noida. SJS MOTORS: ICRA Reaffirms B Rating on INR8.75cr Cash Credit ------------------------------------------------------------ ICRA has reaffirmed its long term rating on the INR8.75 Crore working capital facilities of SJS Motors at [ICRA]B. ICRA has also assigned its rating of [ICRA]B to the INR1.25 crore unallocated limits of the firm. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 8.75 ICRA]B; reaffirmed Unallocated 1.25 [ICRA]B; assigned ICRA's ratings continue to be constrained by SJS' weak financial risk profile marked by thin margins, high gearing and below average debt protection metrics; although the firm's capital structure has registered a slight improvement in 2013-14, relative to the previous year. The rating reaffirmation also takes into account the cyclicality in the commercial vehicles (CV) industry as the business prospects of the firm are closely linked to the demand for CVs. The CV industry was in a downturn for the past couple of years, and this had affected the performance of the firm, however the trend is reversing now and sale of HCVs has started improving in FY15, this is expected to impact SJS' revenue and profitability in the near-term. In addition, the firm faces competition for sales from other OEM dealerships and for service and spares from other Tata Motor Ltd's (TML's) dealerships in the vicinity. ICRA's ratings, however, positively factor in the strength derived from SJS' dealership of TML, which is the market leader in the CV industry in India. ICRA also factors in the firm's extensive network comprising of seven sales, service and spares (3S) facilities and around 10 touch points in the state of Uttar Pradesh. Further, the extensive experience of the promoters in the automobile dealership business continues to provide comfort to the rating. Going forward, the company's ability to increase its scale of business, increase the proportion of service and spares income in its overall operating income and attain a sustained improvement in its leverage and coverage metrics, would be the key rating sensitivities. SJS came into existence in 2003 with Mr. Dhyan Singh, Ms. Narendra Kaur, Mr. Rajveer Singh, and Mr. Udaiveer Singh as partners, to carry on the business of sale of commercial vehicles, manufactured by Tata Motors limited (TML). The partners have been in the transportation business since the last six decades. The firm has 3S facilities in Daurala, Rithani in Meerut, and Hapur, Baghpat, Saharanpur, Shamli and Muzaffarnagar in the adjoining regions. In addition, the firm also has about 10 touch points in interior towns of western UP. Recent Results In 2013-14, SJS reported a Profit after Tax (PAT) of INR0.1 Crore on an Operating Income (OI) of INR269.2 Crore, against a PAT of INR0.5 Crore on an OI of INR347.5 Crore for the previous year. SMART CARD: CARE Assigns B+ Rating to INR46cr LT Bank Loan ---------------------------------------------------------- CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank facilities of Smart Card IT Solutions Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 46 CARE B+ Assigned Short term Bank Facilities 6 CARE A4 Assigned Rating Rationale The ratings assigned to the bank facilities of Smart Card IT Solutions Limited (SCISL) are constrained by the limited track record and relatively moderate scale of operations along with its tight liquidity position. The ratings, also factor in the operational risks involved in the execution of government- sponsored projects along with presence of limited formal agreement with clients rendering low revenue visibility. The ratings, however, derive strength from the experienced Director on board and support from the promoter in the form of equity infusion along with SCISL's strategy to diversify in the smart card segment minimizing the risk of technological obsolescence. The ratings further take comfort from the growing scale of operations of SCISL along with its healthy profitability margins. Going forward, the ability of SCISL to secure new work orders on a consistent basis in a competitive environment and prudent working capital management in light of the growing scale of operations are the key rating sensitivities. SCISL was incorporated as a public limited company in March, 2010 and is promoted by Mr Jitendra J Mehta (Chairman) and Mr Deven J Mehta (Managing Director). Prior to incorporating SCISL, Mr Jitendra J Mehta was heading 'SJ Impex' a sole proprietorship concern engaged in the business of export license trading. SCISL is engaged in complete process relating to manufacturing of smarts cards from raw material procurement to smart cards personalization at its manufacturing facility located at Sanaswadi Pune, Maharashtra. SCISL has an installed capacity to manufacture 300 million cards per year. SCISL operates primarily into two segments 'Telecommunications segment' which includes Subscriber Identity Module (SIM) Card and Removable User Identity Module (RUIM) Cards and 'Government identity cards segment' which includes Driving License Card (DLR), Vehicle Registration Card and membership cards for government schemes like 'Financial Inclusion' and 'Rashtriya Swasthya Bima Yojna (RSBY)'. SCISL is currently undertaking an expansion project at its facility at Sanaswadi Pune, catering to both the segments at a total cost of INR36 crore which is expected to be completed by March 2015. SCISL reported a total operating income of INR88.42 crore with a PBILDT and PAT of INR9.93 crore and INR4.05 crore respectively in FY14 (refers to the period April 1 to March 31) as against a total operating income of INR41.16 crore with a PBILDT and PAT of INR7.03 crore and INR1.47 crore respectively in FY13. SOLACE ENGINEERS: CRISIL Reaffirms B+ Rating on INR50MM Loan ------------------------------------------------------------ CRISIL's ratings on the bank facilities of Solace Engineers (Mktg.) Pvt Ltd (SEPL) continue to reflect SEPL's small scale of operations in the highly fragmented engineering industry and its working-capital-intensive operations. These rating weaknesses are partially offset by the benefits that SEPL derives from its promoters' extensive industry experience. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 5 CRISIL A4 (Reaffirmed) Cash Credit 50 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes that SEPL will continue to benefit over the medium term from its promoters' extensive experience in the engineering industry. The outlook may be revised to 'Positive' if SEPL significantly scales up its operations, improves its working capital management, and maintains its profitability. Conversely, the outlook may be revised to 'Negative' in case of decline in the company's revenue or profitability or weakening of its financial risk profile because of low accruals or large debt-funded capital expenditure or deterioration in liquidity driven by further stretch in its working capital cycle. Update For 2013-14 (refers to financial year, April 1 to March 31), SEPL registered net sales of INR129.4 million, compared with net sales of INR83.2 million for 2012-13. For 2014-15, the company registered sales of about INR140 million till December 2014 and is likely to register sales of more than INR170 million for the year. SEPL's operating profitability remains healthy, at 18.7 per cent for 2013-14. The company reported a net profit of INR6.1 million for 2013-14, as against INR2.2 million for 2012-13. With expected improvement in sales, the company is likely to sustain its healthy profitability over the medium term. SEPL's operations remain working capital intensive, marked by gross current assets (GCAs) of about 550 days as on March 31, 2014. The GCAs remained above 500 days over the four years ended March 31, 2014, and are driven by large debtors and inventory. CRISIL expects SEPL's GCAs to improve, but remain above 300 days, over the medium term. In spite of large working capital requirements, the company's financial risk profile remains comfortable for the rating category, marked by gearing of about 0.6 times as on March 31, 2014. Supported by healthy profitability, the company's interest coverage ratio remains comfortable, at about 3.5 times for 2013- 14. On account of stretched working capital cycle, the company's bank limit utilisation remains high, averaging 99 per cent over the 10 months through September 2014. The company does not have any term loan obligation, which supports its liquidity. Any improvement in working capital cycle and liquidity will remain a rating sensitivity factor. Incorporated in 1988, SEPL is promoted by Vadodara (Gujarat)-based Ghosh family. The company manufactures pharmaceutical machinery such as sifters, post bin blenders, tablet auto coaters, fluid bed processors, and rapid mixer granulators. TECPRO ENGINEERS: CRISIL Suspends B+ Rating on INR200MM Loan ------------------------------------------------------------ CRISIL has suspended its ratings on the bank facilities of Tecpro Engineers Ltd (TEL [formerly, Tecpro Engineers Pvt Ltd]; part of the Tecpro Engineers group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 500 CRISIL A4 Cash Credit 200 CRISIL B+/Negative Working Capital Term Loan 150 CRISIL B+/Negative The suspension of ratings is on account of non-cooperation by TEL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, TEL is yet to provide adequate information to enable CRISIL to assess TEL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. For arriving at the ratings, CRISIL has combined the business and financial risk profiles of TEL with that of its wholly owned subsidiary, Tecpro Infra-Projects Ltd (TIPL), together referred to as the Tecpro Engineers group. TEL, established in 2006, offers site services such as fabrication and erection of civil structures and material-handling equipment, and operation and maintenance for clients in the power sector. The company was reconstituted as a public limited entity in February 2012. TIPL was established in 1981 as BESL Infra Projects Ltd, TIPL is a contractor, catering primarily to the infrastructure segment. The company is involved in the laying of water, oil, and gas pipelines, fabrication work for industrial customers, and civil construction. TEL and TIPL are part of the Tecpro group of companies, which has business interests in manufacturing material- handling equipment, boilers used in the power sector, cement, and infrastructure. TECPRO INFRA-PROJECTS: CRISIL Suspends B+ Rating on INR100MM Loan ----------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Tecpro Infra-Projects Limited (TIPL; part of the Tecpro Engineers group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 400 CRISIL A4 Cash Credit 100 CRISIL B+/Negative The suspension of ratings is on account of non-cooperation by TIPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, TIPL is yet to provide adequate information to enable CRISIL to assess TIPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. For arriving at the ratings, CRISIL has combined the business and financial risk profiles of TIPL and its parent, Tecpro Engineers Limited (TEL), together referred to as the Tecpro Engineers group. TEL, established in 2006, offers site services such as fabrication and erection of civil structures and material-handling equipment, and operation and maintenance for clients in the power sector. The company was reconstituted as a public limited entity in February 2012. TIPL was established in 1981 as BESL Infra Projects Ltd, TIPL is a contractor, catering primarily to the infrastructure segment. The company is involved in the laying of water, oil, and gas pipelines, fabrication work for industrial customers, and civil construction. TEL and TIPL are part of the Tecpro group of companies, which has business interests in manufacturing material- handling equipment, boilers used in the power sector, cement, and infrastructure. TIRUPATI COTEX: ICRA Reaffirms B- Rating on INR6cr Cash Credit -------------------------------------------------------------- ICRA has reaffirmed the long-term rating of [ICRA]B- to the INR6.00 crore (enhanced from INR4.00 crore) cash credit facility and INR1.00 crore (reduced from INR1.67 crore) term loan facility of Tirupati Cotex. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 6.00 [ICRA]B- reaffirmed Term Loan 1.00 [ICRA]B- reaffirmed Rating Rationale The reaffirmation of the rating factors in TC's modest scale of operations with healthy growth in operating income in FY 2014 and weak financial profile as reflected from thin profit margins, stretched capital structure and poor debt coverage indicators. The rating is further constrained by the highly competitive and fragmented industry structure owing to low entry barriers; and the vulnerability of the firm's profitability to raw material (i.e. cotton) prices, which are subject to seasonality, crop harvest and regulatory risks. ICRA also notes that as TC is a partnership firm; any significant withdrawals from the capital account by the partners would adversely affect its net worth and thereby its capital structure; this remains a key rating sensitivity. The assigned rating, however, favourably factors in the long track record of the firm in the cotton ginning business, favourable location of the firm's manufacturing facility in Falla, Jamnagar in Gujarat, giving it an easy access to quality raw material and healthy growth in TC's operating income in FY 2014. Tirupati Cotex (TC) was established as a partnership firm in 2011 and is engaged in the business of ginning and pressing of raw cotton. The firm commenced operations from February 2012. The firm's manufacturing facility is located at Falla, Jamnagar in Gujarat and is equipped with twenty four ginning machines and one pressing machine. The firm is currently promoted by Mr. Gopal Raithatha and five other partners. Recent Results During FY 2014, TC reported an operating income of INR35.27 crore and profit after tax of INR0.22 crore as against an operating income of INR15.14 crore and profit after tax of INR0.10 crore during FY 2013. TRANSAFE SERVICES: ICRA Withdraws B Rating on INR295cr Bank Loan ---------------------------------------------------------------- ICRA has withdrawn the suspended ratings of "[ICRA]B" and "[ICRA]A4" assigned to the INR295 crore bank lines of Transafe Services Limited. As per ICRA's policy on withdrawals, ICRA can withdraw the ratings in case the ratings remain suspended for more than three years. UNITECH AUOTMOBILES: CARE Reaffirms B Rating on INR60cr LT Loan --------------------------------------------------------------- CARE reaffirms ratings assigned to bank facilities of Unitech Auotmobiles Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 60 CARE B Reaffirmed Rating Rationale The rating assigned to the bank facilities of Unitech Automobiles Private Limited (UAPL) continue to be tempered due to dealership nature of automobile business and consequent limitation in growth of profitability, high working capital intensive nature of operations and highly leveraged capital structure. Besides, the cyclicality of the automobile sector and the competitive Indian automobile market constitute the other rating constraints. The aforesaid risks are partially set off against the strength derived from promoter and management's experience in the auto dealership business, demonstrated financial support by the promoters and over a decade long association with TML. The future prospects further supported by a gradual improvement in industry are the other key rating positives. Nevertheless, the ability of UAPL to maintain a reasonable scale of operations amidst burgeoning competition and receive continued financial support from the promoters comprises the key rating sensitivities. UAPL, incorporated in 1984 was co-founded by Mr Vinod Sharma, Mr R.P. Mungrikar, Mr S. Premkumar and Mr N. Subramanium. UAPL is an authorized dealer of Tata Motors Ltd (TML, Rated CARE AA) for Mumbai, Thane and Raigad districts of Maharashtra region. It offers the entire range of TML's commercial vehicles (light, medium & heavy), spare parts and services. UAPL has one showroom located on rented premise at Andheri, Mumbai and five rented sales outlets in Raigad District. It also has a stockyard in Panvel. Furthermore, UAPL has three service workshops in Nerul, Andheri and Turbhe out of which the workshops at Nerul and Turbhe are owned and the workshop at Andheri is rented. During FY14 (refers to period April 1 to March 31), UAPL reported a total income of INR575.90 crore and PAT of INR0.40 crore as compared to a total income of INR821.88 crore and PAT of INR0.64 crore respectively during FY13. Furthermore, during H1FY15, UAPL reported a total income of INR258.80 crore. VIKROMAITIC STEELS: CRISIL Cuts Rating on INR60MM Cash Loan to D ---------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Vikromaitic Steels Pvt Ltd (VSPL) to 'CRISIL D' from 'CRISIL B- /Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60 CRISIL D (Downgraded from 'CRISIL B-/Stable') Proposed Long Term 23 CRISIL D (Downgraded from Bank Loan Facility 'CRISIL B-/Stable') Term Loan 7 CRISIL D (Downgraded from 'CRISIL B-/Stable') The rating downgrade reflects VSPL's delay in repayment of its term loans; the delay is on account of the company's weak liquidity. Also, VSPL is vulnerable to cyclicality in the steel industry because of its small scale of operations. However, the company benefits from its promoters' extensive experience in the steel industry. Incorporated in 1996, VSPL is promoted by Mr. Jaiprakash Choudhary and his family members. The company has a manufacturing facility in Deogarh (Jharkhand) with capacity of 15,000 tonnes per annum (tpa) of thermo-mechanically treated (TMT) bars and a furnace with capacity to produce 21,000 tpa of mild steel ingots. ==================== N E W Z E A L A N D ==================== B'ON FINANCIAL: Investors Paid Before Bust Face Claw Back Case -------------------------------------------------------------- Hamish Fletcher at The New Zealand Herald reports that the liquidators of fraudster Jacqui Bradley's failed business are mulling whether to try to claw back NZ$2 million from eight investors who were paid out before her Ponzi scheme folded. NZ Herald recalls that Ms. Bradley was sentenced to seven years and five months' jail in 2012 for her prolonged and premeditated defrauding of clients of B'On Financial Services, which she ran with her now-deceased husband, Mike. The former financial adviser, in her mid-60s, swindled 28 investors out of about NZ$15.5 million and was found guilty of 75 fraud-related charges, NZ Herald relates. According to NZ Herald, Ms. Bradley's clients were told their money was securely invested with a Macquarie Bank fund in Australia, or had been used to buy New Zealand Government stock and gold futures. But these investments didn't exist. Instead, client money was in a Ponzi-like scheme, being used by the Bradleys to repay other B'On investors and fund the couple's lifestyle, the report says. It was spent on school fees, clothes shopping, payments on a BMW and the mortgage on a Remuera home valued at $4.7 million in 2008, NZ Herald recalls. NZ Herald notes that B'On shut its doors in December 2009 and more than five years later liquidators are considering trying to claw back funds from investors paid out two years before the collapse. "We have written to eight investors who received payments in [the] two-year period prior to liquidation," NZ Herald quotes liquidator Brian Mayo-Smith -- brian.mayo-smith@bdo.co.nz -- as saying in a report released last week. "The total amount of the payments detailed in these letters is NZ$2.04 million. At the date of this report, we continue to assess the responses received and are taking legal advice on the merits of pursing any claims further." NZ Herald relates that Mr. Mayo-Smith said he was watching with interest the claw-back test case involving Ross Asset Management, but would not necessarily wait for its conclusion if starting his own action. Wellington-based RAM cost investors about NZ$115 million when it collapsed in November 2012. Investors are likely to get only a fraction of this money back. Its director, David Ross, ran the country's largest Ponzi scheme and was sentenced to 10 years and 10 months' jail in 2013, NZ Herald notes. The report says the firm's liquidators, John Fisk and David Bridgman, have taken High Court action against three investors who got payouts before the collapse. The first of these test cases, where NZ$3.8 million is at stake, is due to be heard in Wellington this March, NZ Herald says. While several of Ross' victims welcome the claw-back, one burned Bradley investor was against B'On's liquidators taking similar action, according to NZ Herald. The investor, who did not want to be named, lost hundreds of thousands of dollars with the Bradleys and was concerned money could have been funnelled overseas. He said the liquidators should focus on recovering funds such as those instead of money from investors, the report relates. About B'On Financial B'On Financial Services Limited was placed into voluntary receivership on Dec. 22, 2009, owing approximately NZ$29 million to approximately 86 investors. In December 2010, the Serious Fraud Office laid 87 charges under the Crimes Act against Michael John Bradley and Jacqueline Lyndsay Bradley, the co-directors of B'On Financial Services Ltd, for what is alleged to be the defrauding of approximately 85 investors of over NZ$15 million. The investigation identified over 85 investors, but the charges relate to 24 investors in the period 2003 to 2009. ===================== P H I L I P P I N E S ===================== SECURITY BANK: S&P Assigns 'BB+' Rating on Sr. Unsecured Notes -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB+' long-term issue rating to senior unsecured notes that Security Bank Corp. (SBC: BB+/Stable/B; axBBB/axA-3) proposes to issue. The notes will constitute direct, unsecured, and unsubordinated obligations of SBC and shall rank equally with all other unsecured obligations. =========== T A I W A N =========== SEMILEDS CORP: Posts $4.37-Mil. Net Loss for Third Quarter ---------------------------------------------------------- SemiLEDs Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, disclosing a net loss of $4.37 million on $2.93 million of net revenue for the three months ended Nov. 30, 2014, compared to a net loss of $6.35 million on $3.42 million for the same period during the prior year. The Company's balance sheet at Nov. 30, 2014, showed $50.3 million in total assets, $11.5 million in total liabilities and total stockholders' equity of $38.8 million. The Company has suffered losses from operations of $24.8 million and $42.7 million, gross losses on product sales of $11.3 million and $14.7 million, and net cash used in operating activities of $15.7 million and $14.5 million for the years ended Aug. 31, 2014 and 2013, respectively. Loss from operations, gross loss on product sales and net cash used in operating activities for the three months ended Nov. 30, 2014 were $4.4 million, $1.5 million and $2.7 million, respectively. Further, at Nov. 30, 2014, the Company's cash and cash equivalents is down to $8.7 million. These facts and conditions raise initial substantial doubt about the Company's ability to continue as a going concern, according to the regulatory filing. A copy of the Form 10-Q is available at: http://is.gd/RoqGlE SemiLEDs Corporation develops, manufactures and sells LED chips and LED components that are among the industry-leading LED products on a lumens per watt basis. The Company's products are used primarily for general lighting applications, including street lights and commercial, industrial and residential lighting. The Company's LED chips may also be used in specialty industrial applications, such as ultraviolet, curing of polymers, LED light therapy in medical/cosmetic applications, counterfeit detection, and LED lighting for horticulture applications. The Company is based in Miao-Li County, Taiwan. ********* 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 2015. 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 ***