/raid1/www/Hosts/bankrupt/TCRAP_Public/150402.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, April 2, 2015, Vol. 18, No. 062
Headlines
A U S T R A L I A
DWYER ENGINEERING: First Creditors' Meeting Set For April 14
NUTRIFERT PTY: First Creditors' Meeting Slated For April 10
TIARO COAL: First Creditors' Meeting Slated For April 13
C H I N A
CHINA AUTOMATION: Moody's Says 2014 Results in Line with B1 CFR
KAISA GROUP: Moody's Says Debt Restructuring Delays Sunac Deal
KAISA GROUP: To Miss Annual Reports Filing Deadline
SUNAC CHINA: Low Leverage Offers Room for Acquisition, Fitch Says
H O N G K O N G
ASIA TELEVISION: Major Shareholders to Sell Shares
I N D I A
ALOK INGOTS: CRISIL Reaffirms B+ Rating on INR114.6MM Loan
AMEYA INFORMATION: CRISIL Assigns B Rating to INR145MM Term Loan
CHHATTISGARH STEEL: CARE Revises Rating on INR47cr LT Loan to B+
DEEPAK CABLES: CRISIL Assigns D Rating to INR6.65BB Bank Loan
DISHA EDUCATION: CARE Reaffirms D Rating on INR125.83cr LT Loan
EASTERN PILING: CRISIL Reaffirms B+ Rating on INR40MM Cash Loan
GURUKRUPA COTGIN: CRISIL Reaffirms B+ Rating on INR40MM Loan
JAIN INFRAPROJECTS: CARE Reaffirms D Rating on INR1,912cr Loan
JAMKASH VEHICLEADES: CRISIL Assigns B+ Rating to INR140MM Loan
LB INDUSTRIES: CRISIL Reaffirms B Rating on INR70MM Cash Loan
OM PRAKASH: CARE Assigns B+ Rating to INR6.60cr LT Bank Loan
PERFECT ENGINEERS: CRISIL Assigns B+ Rating to INR40MM Cash Loan
R. C. ENTERPRISE: CRISIL Ups Rating on INR24MM Loan From B+
RENUKA EQUIPMENTS: CRISIL Reaffirms B+ Rating on INR111.7MM Loan
RRB ENERGY: CARE Reaffirms B Rating on INR124.97cr LT Loan
SANJAY SHUKLA: CRISIL Assigns B+ Rating to INR30MM Cash Loan
SATYA INFRA: CRISIL Reaffirms B+ Rating on INR112.5MM Term Loan
SCAN STEELS: CARE Reaffirms B+ Rating on INR160cr Cash Credit
SHAMANUR SUGARS: CARE Lowers Rating on INR49.44cr FB Loan to D
SHIVANS POWER: CRISIL Assigns B Rating to INR50MM Proposed Loan
SHREE AMEYA: CRISIL Upgrades Rating on INR99MM LT Loan to B-
SHREYA LIFE: CRISIL Cuts Rating on INR630.5MM Bank Loan to D
SHRI GAJANAN: CRISIL Reaffirms B+ Rating on INR50MM Cash Loan
SONAMOTI AGROTECH: CARE Assigns B Rating to INR14.95cr LT Loan
VISHAL CARS: CRISIL Assigns B Rating to INR125MM Term Loan
VRINDAA CRAFTS: CARE Reaffirms B+ Rating on INR12cr LT Loan
N E W Z E A L A N D
GOLDLINK ENTERPRISES: Former Worker Won't Get Money Owed to Him
SOLID ENERGY: Chairwoman Quits Over Disagreement With English
- - - - -
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A U S T R A L I A
=================
DWYER ENGINEERING: First Creditors' Meeting Set For April 14
------------------------------------------------------------
Bryan Kevin Hughes and Daniel Johannes Bredenkamp of Pitcher
Partners were appointed as administrators of Dwyer Engineering &
Construction Pty Ltd on March 31, 2015.
A first meeting of the creditors of the Company will be held at
The Atrium Theatrette, Level 4, 168 St Georges Terrace, Perth, in
Western Australia, on April 14, 2015, at 3:00 p.m.
NUTRIFERT PTY: First Creditors' Meeting Slated For April 10
-----------------------------------------------------------
Terrence John Rose and Terry Grant van der Velde of SV Partners
were appointed as administrators of Nutrifert Pty Ltd on March 30,
2015.
A first meeting of the creditors of the Company will be held at
SV Partners, 1 Plaza Parade, in Maroochydore, Queensland, on
April 10, 2015, at 3:00 p.m.
TIARO COAL: First Creditors' Meeting Slated For April 13
--------------------------------------------------------
David Winterbottom, Martin Madden, Rahul Goyal of KordaMentha were
appointed as administrators of Tiaro Coal Limited on
March 31, 2015.
A first meeting of the creditors of the Company will be held at
Level 5, Chifley Tower, 2 Chifley Square, in Sydney, on April 13,
2015, at 2:30 p.m.
=========
C H I N A
=========
CHINA AUTOMATION: Moody's Says 2014 Results in Line with B1 CFR
---------------------------------------------------------------
Moody's Investors Service said that China Automation Group
Limited's stable 2014 results and planned asset sale are in line
with its B1 corporate family and senior unsecured bond ratings as
well as stable rating outlook.
"China Automation Group Limited's stable earnings and financial
leverage in 2014 when compared with 2013 levels are in-line with
our expectations," says Chenyi Lu, a Moody's Vice President and
Senior Analyst.
Based on China Automation's announcement, its revenue declined by
3.9% year-on-year to RMB2.22 billion in 2014 from RMB2.31 billion
in 2013. The decline was mainly driven by weakness in the safety
systems business in the petrochemical industry and the signaling
systems business in the railway industry.
However, the company's adjusted EBITDA margin slightly improved to
16.4% in 2014 from 15.9% in 2013 because it cut operating
expenses.
Consequently, adjusted EBITDA was RMB365 million in 2014, similar
to the RMB366 million achieved in 2013.
Given this development and a slight decline in adjusted debt,
China Automation's adjusted debt/EBITDA improved slightly to 4.6x
in 2014 from 4.7x in 2013.
In terms of liquidity, China Automation has sizeable debt of
RMB1.2 billion maturing in April 2016, which moderately exceeds
its cash holdings and committed back-up credit facilities.
However, Moody's expects the company to fund such shortfall in the
financial markets given its established market position and
banking relationships.
"We view China Automation's proposed sale of its railway signaling
business as credit positive, because the company plans to use the
proceeds from the transaction mainly to pay down debt. This effect
is partially offset by lower revenue and earnings contributions
from this stable business," adds Lu.
On 23 March 2015, the company announced that it had entered into a
conditional sale and purchase agreement to dispose of its 76.7%
equity interest in Beijing Jiaoda Microunion (unrated), which is
principally engaged in the railway signaling business. This
company accounted for 13% of China Automation's total revenue and
generated EBITDA of about RMB80 million in 2014.
The deal is subject to a shareholders approval in May 2015 and is
expected to be completed by the end-June 2015.
Based on the announcement, net proceeds from the disposal are
estimated to be approximately RMB737 million, of which about
RMB553 million is expected to be used for repayment of the RMB1.2
billion in maturing debt.
If this transaction materializes, Moody's expects China
Automation's adjusted debt/EBITDA to improve to about 4.0x over
the next 12-18 months. This level of leverage is consistent with
the B1 rating category.
The principal methodology used in this rating was Global
Manufacturing Companies published in July 2014.
China Automation Group Limited specializes in providing safety and
critical control systems for the railway signaling and
petrochemicals industries in China.
The company began its operations in 1999 and was listed on the
Main Board of the Stock Exchange of Hong Kong Limited in July
2007. Its three founders collectively owned 44.89% of the company
at end-2014.
KAISA GROUP: Moody's Says Debt Restructuring Delays Sunac Deal
--------------------------------------------------------------
Moody's Investors Service said that the uncertainty regarding a
timely completion of Sunac China Holdings Limited's (B1 stable)
acquisition of Kaisa Group Holdings Ltd (Ca, review for upgrade)
has increased following the rejection by offshore bondholders of
the initial proposal on debt restructuring and the prolonged state
of negotiations between the bondholders and Kaisa.
"We would therefore consider revising the ratings outlook to
negative or downgrading Kaisa's ratings if the Sunac acquisition
is unlikely to complete and the expected recovery value for
offshore bondholders is lower than expected," says Franco Leung, a
Moody's Vice President and Senior Analyst.
Kaisa had planned to reach a preliminary understanding with
lenders and bondholders by end-March 2015 and to complete the
restructuring of its onshore and offshore debt by end-April 2015,
based on its announcement dated 11 February.
On March 22, it announced that it had not yet reached an agreement
with its offshore bondholders on its restructuring proposal for
outstanding offshore bonds, thereby missing the initially proposed
20 March deadline.
Moody's current review for upgrade of Kaisa's ratings reflects
Moody's expectation that Sunac's acquisition, if completed, will
significantly improve the repayment prospects for Kaisa's
creditors, including its offshore bondholders.
Moody's believes the company failed to make the coupon payments on
18 and 19 March for its 12.875% senior notes due 2017 and 8.875%
senior notes due 2018.
Kaisa is unlikely to rectify such a payment default within the
grace period, while negotiations with its onshore and offshore
creditors continue without reaching a restructuring agreement,
given its stressed liquidity position. Such risk of payment
default is reflected in the current Ca ratings.
Its operating cash flows, together with its reported RMB1.9
billion total cash balance at 2 March, will not be sufficient to
cover its maturing debt of around RMB29.8 billion in FY2015.
But Kaisa's operations and credit profile could gradually recover
if the debt restructuring and acquisition by Sunac or any other
third party is completed on satisfactory terms.
Moody's will continue to monitor: (1) the progress on Kaisa's debt
restructuring, (2) Kaisa's ability to remove the restrictions on
its projects in Shenzhen, and (3) how Sunac's acquisition offer
develops.
The principal methodology used in this rating was Global
Homebuilding Industry published in March 2009.
Kaisa Group Holdings Ltd is a Shenzhen-based property developer
established in 1999. It listed on the Hong Kong Stock Exchange in
December 2009.
KAISA GROUP: To Miss Annual Reports Filing Deadline
---------------------------------------------------
The South China Morning Post reports that Kaisa Group said in a
regulatory filing that it would miss the deadline to file its 2014
annual results.
The report relates that Kaisa said it would need more time to
"ascertain the cash flow position of the company". Trading of the
company's shares was suspended, the report notes.
SCMP.com relates that mainland developer Sunac China said last
week it did not have much room to reshape an initial failed debt
restructuring proposal to keep Kaisa afloat as the firm it was
buying was in much worse shape than expected.
Kaisa had total debts of more than US$10 billion as of the end of
last year.
In mid-March, offshore creditors rejected a proposal to extend
their high-yield bond maturity by five years and cut the coupon
rate by up to two-thirds.
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 March
9, 2015, Moody's Investors Service said that Kaisa Group Holdings
Ltd's proposed onshore debt restructuring, if successful, will
constitute a distressed debt exchange -- a default event under
Moody's definition -- but has no immediate impact on its Ca
corporate family and senior unsecured debt ratings. The
transaction will also help reduce near-term liquidity stress. The
ratings remain under review for upgrade.
On February 9, 2015, Kaisa announced the resumption of trading in
its shares and provided some updates on recent developments,
including interest payments under its 2013 senior notes, demand
notices for payment against the company, and court proceedings.
On February 6, 2015, Sunac China Holdings Limited (Ba3 stable) and
Kaisa jointly announced that Sunac conditionally agreed to acquire
49.25% of Kaisa's outstanding shares from its major shareholder,
Mr. Kwok Ying Shing and his family members.
The completion of the share purchase is conditional on a number of
factors, including the resolution of Kaisa's debt payments, the
waiver by creditors of any actions against breaches of the terms
of existing debt due to the share purchase, the resolution of all
existing disputes and court applications faced by the company, the
resolution of irregularities in Kaisa's business operations, and
shareholder approvals for certain actions.
SUNAC CHINA: Low Leverage Offers Room for Acquisition, Fitch Says
-----------------------------------------------------------------
Fitch Rating says that Sunac China Holdings Limited's (Sunac; BB-
/Positive) leverage, as measured by net debt/adjusted inventory,
at end-2014 remained low at 0.30x, giving the property developer
room in its ratings to undertake acquisitions to expand its
business.
Sunac's leverage fell from 0.34x at end-2013 even though its sales
continued to increase by 30% in 2014 after growth of 61% in 2013.
Sunac has said it intends to make two acquisitions that may be
completed in 2015. It plans to acquire project companies held by
subsidiaries that it partners with Greentown China Holdings
Limited. The impact on Sunac's leverage from this transaction will
be low as Fitch has in the leverage calculation included Sunac's
CNY4.6bn non-controlling interest as debt. The transaction will
reduce cash and non-controlling interest, and thus result only in
a small increase in net debt.
Sunac is also undertaking a conditional purchase of a 49.25% stake
in Kaisa Group Holdings Limited, held by its founder's family
trust. The pressure on Sunac's leverage will be greater in this
acquisition but it also brings about material enhancement to
Sunac's business profile. The cash outlay may range from HKD4.6bn
for the 49.25% stake purchase only, to HKD8bn if the conditional
mandatory offer for all Kaisa shares is fully accepted. Sunac had
also in February 2015 agreed to acquire Shanghai development
projects from Kaisa for CNY2.4bn. If Sunac's acquisition of Kaisa
and the Shanghai projects is successful, its leverage may rise to
close to 0.50x level.
Fitch is likely to maintain the Positive Outlook on Sunac's
ratings if the Kaisa acquisition can bring about a sustained
increase of Sunac business scale and better geographical
diversification; while leverage remains at 0.40x-0.50x on a
sustained basis.
================
H O N G K O N G
================
ASIA TELEVISION: Major Shareholders to Sell Shares
--------------------------------------------------
Patrick Frater at Variety.com reports that shareholders
controlling majority interests in Asia Television (ATV),
Hong Kong's nearly bankrupt second free-to-air TV broadcaster have
agreed to sell their shares to telecoms tycoon Ricky Wong.
The stakes were reportedly sold by mainland Chinese businessman
Wong Ching and Wong Ben-koon. Wong Ching controlled 52% of ATV
through Wong Ben-koon, a relative of his wife, the report says.
Variety.com relates that in February the High Court ordered the
sale of a 10.75% stake in ATV, but outside bidders were hesitant,
without the sale of a further 40% stake from Wong Ching.
The stake news has yet to be confirmed by the companies and
financial details are unclear, the report notes.
If confirmed, the news is a victory for persistence by Ricky Wong.
He was very briefly chief executive of ATV in 2008, but exited
after 12 days, having being caught in a dispute with then chairman
Linus Cheung over restructuring plans. And in 2013 Wong was
rebuffed in a bid to get a free to air license for his specially
formed HKTV company, according to the report.
Variety.com notes with ATV perilously close to financial ruin, any
deal will need the approval of the High Court, which had
previously appointed administrators to sell a share stake. A
change of ownership will also need the approval of the
Communications Authority, which on March 24 said that it had not
yet been notified.
According to the report, ATV has endured a highly public meltdown
over the past several months, following a dispute between
shareholders and a succession of financial losses. In recent
months staff have not been paid, which prompted news room staff to
threaten to quit. If the company were unable to comply with its
obligations on news reporting that would in turn mean that ATV is
in breach of the terms of its operating license and could be
closed down by government, the report states.
In addition to staff wages, the company needed to raise cash to
pay its license fee and a penalty imposed by the government,
amounting to a combined US$1.32 million (HK$10.2 million), that
was payable in two instalments, in February and earlier this
month, Variety.com adds.
=========
I N D I A
=========
ALOK INGOTS: CRISIL Reaffirms B+ Rating on INR114.6MM Loan
----------------------------------------------------------
CRISIL's ratings on the bank facilities of Alok Ingots (Mumbai)
Pvt Ltd (AIMPL) continue to reflect AIMPL's weak financial risk
profile, marked by high gearing and inadequate debt protection
metrics, and the company's susceptibility to economic cycles and
volatility in raw material prices. These rating weaknesses are
partially offset by the company's diversified product portfolio
and efficient working capital management.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 10 CRISIL A4 (Reaffirmed)
Cash Credit 90 CRISIL B+/Stable (Reaffirmed)
Letter of Credit 50 CRISIL A4 (Reaffirmed)
Proposed Long Term
Bank Loan Facility 114.6 CRISIL B+/Stable (Reaffirmed)
Rupee Term Loan 41.1 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that AIMPL will continue to benefit over the
medium term from its prudent working capital management and the
need-based fund support from its promoters. The outlook may be
revised to 'Positive' if the company achieves sustainable
improvement in its revenue and profitability, leading to better
capital structure and debt protection metrics. Conversely, the
outlook may be revised to 'Negative' if AIMPL records low revenue
and operating profitability, or if its working capital cycle
lengthens, weakening its liquidity.
Update
AIMPL's revenue was flat year-on-year, at INR750.9 million, in
2013-14 (refers to financial year, April 1 to March 31) on account
of sluggish demand because of weak economic environment. The
company's operating profitability was near constant year-on-year,
at 2.8 per cent, in 2013-14; the company generated negative
accruals of INR12.1 million in 2013-14. The company has recorded
revenue of around INR650 million for the nine months through
December 2014; CRISIL expects AIMPL's revenue at INR867 million in
2014-15. The company's operating profitability has improved to
around 4 per cent for the nine months through December 2014 on the
back of increased revenue contribution of value-added products and
cost optimisation measures undertaken by the management; CRISIL
expects AIMPL's operating profitability to improve consistently
over the medium term.
AIMPL's gearing increased to 3.34 times as on March 31, 2014, from
2.19 times as on March 31, 2013, on account of decline in net
worth because of negative accretion to reserves. The company's
debt protection metrics are weak, with interest coverage and net
cash accruals to total debt ratio at 0.65 times and negative 0.10
times, respectively, for 2013-14. CRISIL, however, expects AIMPL's
financial risk profile to improve over the medium term on the back
of steady accretion to reserves and stable working capital
requirement.
AIMPL has moderate and stable working capital requirements, marked
by gross current assets of 104 days as on March 31, 2014 (99 days
as on March 31, 2013), leading to moderate bank limit utilisation
of 89 per cent over the 12 months through December 2014. The
promoters also extended additional unsecured loans of INR19
million in 2013-14, supporting the company's liquidity amidst
negative accruals. CRISIL believes that AIMPL will generate cash
accruals of INR16.1 million against debt obligation of around
INR10 million in 2014-15.
AIMPL was set up by Mr. Ashok Garodia, his brother Mr. Deen Dayal
Garodia, and son Mr. Alok Garodia in 2004. The company
manufactures steel billets, and has capacity of 42,000 tonnes per
annum. AIMPL has diversified into manufacturing specialty steel
used in various engineering applications.
AIMPL incurred a net loss of around INR21.2 million on net sales
of around INR750.9 million in 2013-14, vis-a-vis net loss of
INR31.0 million on net sales of INR760.5 million for 2012-13.
AMEYA INFORMATION: CRISIL Assigns B Rating to INR145MM Term Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Ameya Information Ltd (AIL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 145 CRISIL B/Stable
The rating reflects AIL's risks related to initial phase of
operations. These rating weaknesses are partially offset by its
promoters' extensive experience in the publication industry.
Outlook: Stable
CRISIL believes that AIL will benefit over the medium term from
its promoters' extensive experience in the publication industry.
The outlook may be revised to 'Positive' if the company stabilises
its operations in a timely manner and generates profits, leading
to large cash accruals. Conversely, the outlook maybe revised to
'Negative' if AIL generates low cash accruals due to reduced order
flow or profitability, or its financial risk profile deteriorates,
most likely because of a delay in implementation of its operations
or substantial debt-funded capital expenditure.
AIL, incorporated in 2011, is promoted by the Ahmedabad (Gujarat)-
based Mr. Bharat Popat, Mrs. Harsha Popat and Mrs. Vaishali
Nathwani. The company will be involved in providing commercial
information services about small organisations and self employed
people across India through various online as well as print media
channels.
CHHATTISGARH STEEL: CARE Revises Rating on INR47cr LT Loan to B+
----------------------------------------------------------------
CARE revises/reaffirms rating assigned to the bank facilities of
Chhattisgarh Steel & Power Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 47 CARE B+ Revised
From CARE B-
Short-Term Bank Facilities 15 CARE A4 Reaffirmed
Rating Rationale
The revision in the long-term rating of Chhattisgarh Steel & Power
Ltd. (CSPL) is on account of successful operations of the newly
commenced Ferro Alloy plant leading to improvement in
profitability of the company in M11FY15. However, the ratings
continue to be constrained by small scale of operations and
stretched liquidity position coupled with high utilisation of
working capital while the ratings continued to draw strength from
the rich experience of the promoter and strategic location of the
plant with proximity to input sources & market. The ability of the
company to successfully run its Ferro Alloy plant & manage its
liquidity position effectively would remain the key rating
sensitivities.
Incorporated in 2003, CSPL belongs to the Raipur-based SBL group.
The company began successful operations as an independent thermal
power producer (30 MW). Recently, the company has set-up a Ferro
Alloy Plant of 30,000 MTPA whose operations commenced from October
2013.
Shri Alok Choudhari, Chairman of CSPL, is having experience in
diversified business activity i.e. ferro alloy, power plant,
woven sacks, mfg. of industrial explosives, coal washery etc.
Following resignation of the two directors, Mr. Sanjay
Choudhari & Mr. Shiv Kumar Mundra have been inducted in the
company. This apart, recently, Shri Balraj Garg of Garg
group, has also been inducted as Director of the company.
In FY14 (refers to the period from April 1 to March 31), CSPL
reported a loss of INR 15.41 crore on a total operating income
of INR37.89 crore. In M11FY15, CSPL reported a total operating
income of INR 116.92 crore and PAT of INR 0.22 crore.
DEEPAK CABLES: CRISIL Assigns D Rating to INR6.65BB Bank Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL D/CRISIL D' ratings on the bank
facilities of Deepak Cables India Ltd (DCIL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Working Capital 2,317.9 CRISIL D
Term Loan
Letter of Credit 973.3 CRISIL D
Bank Guarantee 6,658.8 CRISIL D
Cash Credit 3,050.0 CRISIL D
The ratings reflect DCIL's overdrawn cash credit facility for more
than 30 days and instances of devolvement of letter of credit
facilities for more than 30 days. Recently, there have also been
delays in servicing its term debt. These have been caused by the
company's weak liquidity due to elongated working capital cycle
mostly involving stretched receivables and delays in project
execution because of right of way issues.
DCIL has a below-average financial risk profile marked by its weak
profitability leading to losses and therefore weak debt protection
metrics. The company has large working capital requirements, high
customer concentration, and is exposed to competition in the
engineering, procurement, and construction (EPC) and power
conductor businesses. However, the company benefits from its
promoters' extensive experience and track record in the power
solutions business.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of DCIL and its subsidiary Adhunik Power
Transmission Ltd (APTL). This is because these companies are
managed by the same promoters and have high financial fungibility.
DCIL primarily manufactures power conductor cables and executes
EPC contracts in the power transmission and distribution segment.
In 2011, DCIL acquired APTL, which has tower manufacturing
facilities at Jamshedpur.
DISHA EDUCATION: CARE Reaffirms D Rating on INR125.83cr LT Loan
---------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Disha Education Society.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 125.83 CARE D Reaffirmed
Rating Rationale
The rating assigned to the bank facilities of Disha Education
Society (DES) continue to be constrained by the ongoing delays in
debt servicing due to stressed liquidity position of DES.
DES was established in 2001 by Mr. Surendra Jain to impart higher
education amongst the masses of the society. It is registered
under Societies Registration Act (XXI of 1860). Over the years the
society has established a few educational institutes offering
courses in graduation, post-graduation and junior college courses.
It has two campuses in Raipur area, Satya Vihar Campus
constituting Disha Institute of Management and Technology and
Disha School of Management Education and Disha Park Campus
constituting Disha College, Disha College of Higher Secondary
Education and Disha College of Science and Commerce.
EASTERN PILING: CRISIL Reaffirms B+ Rating on INR40MM Cash Loan
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Eastern Piling and
Construction Pvt Ltd (EPCPL) continue to reflect EPCPL's limited
scale of operations, the geographical and segmental concentration
in its operations, and its modest financial risk profile marked by
small net worth. These rating weaknesses are partially offset by
the extensive experience of EPCPL's promoters in the transmission
tower industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 80 CRISIL A4 (Reaffirmed)
Cash Credit 40 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that EPCPL will continue to benefit over the
medium term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if EPCPL improves its
business risk profile, most likely through geographical and
segmental diversification leading to ramp-up in operations, or
improves its capital structure. Conversely, the outlook may be
revised to 'Negative' in case of weakening of the company's
financial risk profile, most likely caused by large working
capital requirements or low cash accruals or debt-funded capital
expenditure.
Update
EPCPL's revenue is estimated to have declined by around 7 per cent
year-on-year to around INR90 million in 2013-14 (refers to
financial year, April 1 to March 31), because of delay in
execution of its existing projects on account of delay in getting
approval from forest department and muted demand because of lower
capacity addition in the power industry. The company's margins
remained low, in a range of 13 to 15 per cent, over the past four
years, and are expected to remain at similar levels over the
medium term.
The company's operations are highly working-capital-intensive, as
reflected in its estimated gross current assets (GCAs) of around
340 days as on March 31, 2014; the GCA days were at a similar
level in the past. The GCA days emanate from the company's large
debtors of around 250 days. As a result, the company's bank limit
utilisation was high, averaging over 90 per cent, for the 12
months through March 2014.
EPCPL's net worth is estimated to have remained small, at INR35
million as on March 31, 2014, limiting its financial flexibility
to meet any exigency. The company has large debt, contracted to
fund working capital requirements; large debt and small net worth
resulted in estimated moderate gearing of around 1.14 times as on
March 31, 2014.
EPCPL was established in 1991 in Cuttack (Odisha) by Mr. Abhay
Kumar Das. The company mainly builds and commissions high-tension
power lines and substations on turnkey basis. It also undertakes
repair work, mainly for private sector entities.
GURUKRUPA COTGIN: CRISIL Reaffirms B+ Rating on INR40MM Loan
------------------------------------------------------------
CRISIL rating on long-term bank facilities of Gurukrupa Cotgin Pvt
Ltd (GCPL) continues to reflect GCPL's weak financial risk
profile, marked by high gearing and small net worth, and its
modest scale of operations, with a low operating margin. These
rating weaknesses are partially offset by the company's efficient
working capital management and the extensive experience of its
promoters in the cotton industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 40 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 11.5 CRISIL B+/Stable (Reaffirmed)
Term Loan 18.5 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that GCPL will continue to benefit over the medium
term from its promoters' extensive industry experience and its
efficient working capital management policies. The outlook may be
revised to 'Positive' if the company's scale of operations and
profitability improves considerably, leading to substantial
improvement in cash accruals and liquidity. Conversely, the
outlook may be revised to 'Negative' if GCPL's profitability
declines, or its working capital requirements, especially its
inventory levels, are higher than expected, leading to
deterioration in its financial risk profile, particularly its
liquidity
GCPL undertakes ginning and pressing of raw cotton. Set up in
2008, the company has 24 ginning machines and one pressing
machine. It is managed by Mr. Vishal Vajani and his family.
GCPL reported a profit after tax (PAT) of INR0.97 million on net
sales of INR216 million for 2013-14, as against a PAT of INR0.67
million on net sales of INR268 million for 2012-13.
JAIN INFRAPROJECTS: CARE Reaffirms D Rating on INR1,912cr Loan
--------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Jain Infraprojects Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 1,912 CARE D Reaffirmed
Long/Short-term Bank
Facilities 320 CARE D Reaffirmed
Rating Rationale
The ratings assigned to the bank facilities of Jain Infraprojects
Ltd. (JIL) continue to be constrained by the ongoing delays in
debt servicing due to stressed liquidity position of JIL.
JIL is the flagship company of the Kolkata based Jain Group, owned
by Mr Mannoj Kumar Jain. JIL was set up as a partnership firm in
2001 and got converted into a public limited company in November,
2006. JIL is engaged in execution of civil construction contracts
& turnkey projects mainly in the roads & highways and housing
sectors.
JAMKASH VEHICLEADES: CRISIL Assigns B+ Rating to INR140MM Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Jamkash Vehicleades (Kashmir) Pvt Ltd
(JVPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long Term Loan 54 CRISIL B+/Stable
Bank Guarantee 126 CRISIL A4
Cash Credit 140 CRISIL B+/Stable
The ratings reflect JVPL's below-average financial risk profile,
marked by a leveraged capital structure and average interest
coverage ratio, and its moderate scale of operations in the
intensely competitive automobile dealership industry. These rating
weaknesses are partially offset by the promoters' extensive
experience in the automobile dealership business, and the benefits
derived from its distributorship for Maruti Suzuki India Ltd
(MSIL; rated, 'CRISIL AAA/Stable/CRISIL A1+') in Kashmir (Jammu
and Kashmir).
Outlook: Stable
CRISIL believes that JVPL will continue to benefit over the medium
term from its promoters' extensive industry experience and its
established relationship with its principal, MSIL. The outlook may
be revised to 'Positive' if the company's financial risk profile
improves on account of substantial increase in its cash accruals
led by an improvement in its scale of operations and operating
profitability. Conversely, the outlook may be revised to
'Negative' if JVPL reports considerably low cash accruals, on
account of a decline in its sales or operating profitability, if
its working capital cycle weakens further, or if it undertakes any
debt-funded capital expenditure programme, leading to further
deterioration in its financial risk profile.
Incorporated in 2009, JVPL is an authorised dealer for all the
passenger cars of MSIL for five districts in Kashmir. The company
has five showrooms in 3S format in its dealership area.
For 2013-14 (refers to financial year, April 1 to March 31), JVPL
reported a profit after tax (PAT) of INR13.3 million on net
revenue of INR1971.2 million, as against a PAT of INR2.8 million
on net revenue of INR1662.7 million for 2012-13.
LB INDUSTRIES: CRISIL Reaffirms B Rating on INR70MM Cash Loan
-------------------------------------------------------------
CRISIL's ratings on the bank facilities of LB Industries Private
Limited (LBPL, formerly known as LB Flooring Pvt Ltd) continues to
reflect LBPL's small scale and moderately working capital
intensive nature of operations and weak financial risk profile.
These rating weaknesses are partially offset by promoter's
longstanding industry experience.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 70 CRISIL B/Stable (Reaffirmed)
Letter of Credit 310 CRISIL A4 (Reaffirmed)
Outlook: Stable
CRISIL believes that LBPL will continue to benefit over the medium
term from its experienced management. The outlook may be revised
to 'Positive' in case there is substantial improvement in net
worth levels of the company through infusion of funds by promoters
or higher than expected accretion to reserves resulting
improvement in overall total outside liabilities to total net
worth ratio. Conversely, the outlook may be revised to 'Negative'
in case LBPL reports deterioration in its profitability margins or
debt protection metrics or undertakes large debt funded capital
expenditure resulting in deterioration in its financial risk
profile.
Update
The revenues of the company registered a 118 per cent year-on-year
growth to around INR724 million in 2013-14 (refers to financial
year, April 1 to March 31); the revenue growth has been mainly
driven by commencement of trading of various commodities such as
palm oil and sugar. The company's operating margins decreased by
around 470 basis points to 1.5 per cent in 2013-14 on account of
higher share of revenues from lower margin trading activities.
The company's operations are relatively highly working capital
intensive as reflected in its estimated gross current asset (GCA)
of around 159 days as on March 31, 2014; the GCA days have reduced
from the past as the company extends lower credit in commodity
trading business. The GCA days emanates from the company's
inventory levels of around 17 days and receivables cycle of 128
days. As a result, the company's average bank limit utilization
have been higher at around 70 per cent, for the 12 months ended
December 2014.
LBPL's net worth is also estimated to remain low at around INR38.1
million, as on March 31, 2014 thereby limiting its financial
flexibility to meet any exigency. The company has high total
indebtedness towards funding its working capital requirements;
these coupled with low net-worth levels is estimated to result in
high total outside liabilities to tangible net worth ratio of
around 16.3 times as on March 31, 2014.
LBPL, incorporated in 2007, imports, and trades in, various
flooring products. The Nagpur (Maharashtra)-based company is part
of the Laxmidas Brothers group, which is promoted by Panchmatia
family. The group commenced operations in 1952. LBPL trades in
wooden laminate flooring, oriented strand boards, deck flooring,
and timber and particle boards for flush doors. The company
procures its products through imports from China, Brazil and
Chile, and sells the same to local distributors, wholesalers, and
traders. These products are used in the construction industry,
especially in the floors of commercial and residential buildings.
The company has recently started trading of various commodities
such as palm oil, sugar among others from December 2013.
OM PRAKASH: CARE Assigns B+ Rating to INR6.60cr LT Bank Loan
------------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of Om Prakash
Roller Flour Mills Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 6.60 CARE B+ Assigned
Rating Rationale
The rating assigned to the bank facilities of Om Prakash Roller
Flour Mills Private Limited (OMPRFM) is constrained by its nascent
stage of operations, raw material availability and price
fluctuation risk with susceptibility to vagaries in nature along
with presence in highly competitive, fragmented and regulated
industry. The rating, however, derives strength from the
experience of the promoters in agro-based industry, locational
advantage and insulation from economic cycle with stable demand
outlook.
The ability of the company to achieve scale of operations as
envisaged along with improvement in profit level and margins will
be the key rating sensitivities.
Bihar-based OMPRFM was incorporated in February 2013 by Mr Om
Prakash Saw, Mr Anil Kumar and Mr Pinku Kumar. The company has
commenced commercial operation since January 2015 at its flour
milling unit in Rajgir, Bihar, to process wheat into 'Atta',
'Maida', 'Suzi' and 'Chokar'.
OMPRFM procures wheat directly from the local grain markets and
sells its products to distributors in the state of Bihar, Odisha,
Jharkhand, Chhattisgarh and West Bengal. The milling unit of the
company has an installed capacity to produce around 36,000 metric
ton per annum (MTPA) of 'Atta', 'Maida', 'Suzi', 'Chokar' and
around 14,500 MTPA of whole wheat. The company is entitled to
receive capital subsidy from the Government of Bihar under the
scheme for "Integrated Development of Food Processing Sector". The
company has achieved a turnover of INR8 crore till February 2015.
PERFECT ENGINEERS: CRISIL Assigns B+ Rating to INR40MM Cash Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Perfect Engineers & Contractors (PEC).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Working
Capital Facility 2.5 CRISIL B+/Stable
Bank Guarantee 37.5 CRISIL A4
Cash Credit 40 CRISIL B+/Stable
The ratings reflect PEC's modest scale of operations in the
fragmented civil construction industry, the geographic
concentration in its revenue, and its large working capital
requirements. These rating weaknesses are partially offset by the
extensive experience of PEC's promoters in the civil construction
industry and the firm's moderate financial risk profile marked by
strong debt protection metrics.
Outlook: Stable
CRISIL believes that PEC will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the firm scales up its
operations significantly while improving its profitability,
leading to substantial cash accruals and a better financial risk
profile. Conversely, the outlook may be revised to 'Negative' if
PEC reports low revenue or profitability, or if its working
capital management deteriorates resulting in weak liquidity, or if
it undertakes a large debt-funded capital expenditure programme,
leading to weakening of its financial risk profile.
Set up in 1993 as a partnership firm, PEC undertakes civil
construction work, primarily buildings in Kerala. The firm is
based in Palakkad (Kerala) and its day-to-day operations are
managed by Mr. M. Suneel and Mr. Sajeevan.
PEC reported a profit after tax (PAT) of INR10.8 million on
revenue of INR116.4 million for 2013-14 (refers to financial year,
April 1 to March 31), against a PAT of INR23.0 million on revenue
of INR200.1 million for 2012-13.
R. C. ENTERPRISE: CRISIL Ups Rating on INR24MM Loan From B+
-----------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of
R. C. Enterprise (RCE; part of the Laxmi group) to 'CRISIL BB-
/Stable/CRISIL A4+' from 'CRISIL B+/Stable/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Packing Credit 120 CRISIL A4+ (Upgraded
from 'CRISIL A4')
Standby Line of Credit 24 CRISIL BB-/Stable (Upgraded
from 'CRISIL B+/Stable')
The rating upgrade reflects CRISIL's belief that the Laxmi group
will sustain its improved credit risk profile over the medium
term, on account of improvement in its scale of operations and
capital structure, and continued fund support from promoters. The
group registered revenue of INR1.9 billion for the 11 months
through February 2015, and is likely to achieve healthy year-on-
year revenue growth of around 12 per cent to INR2.1 billion to
INR2.2 billion for 2014-15 (refers to financial year, April 1 to
March 31), driven by volume growth Furthermore, the promoters
extended additional unsecured loans of INR47.8 million in 2013-
14(total outstanding unsecured loans from promoters at INR162.3
million as on March 31, 2014), which is expected to drive
improvement in financial risk profile.
The rating reflects the extensive experience of the Laxmi group's
promoters in the psyllium husk industry, and the availability of
need-based funding from the promoters. This rating strength is
partially offset by the group's average financial risk profile,
marked by modest net worth and below-average debt protection
metrics, and its susceptibility to volatility in raw material
prices.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of Laxmi Industrial Corporation (LIC) and
RCE. This is because the two entities, together referred to as the
Laxmi group, are under a common management, are engaged in the
same line of business, and have operational linkages and fungible
cash flows. Also, CRISIL has treated unsecured loans extended by
promoters to the group as neither debt nor equity as these are
expected to remain in the business over the medium term.
Outlook: Stable
CRISIL believes that the Laxmi group will continue to benefit over
the medium term from its promoters' extensive industry experience.
The outlook may be revised to 'Positive' if the group generates
substantial cash accruals because of significant increase in its
revenue and profitability, resulting in substantial improvement in
its financial risk profile, particularly its liquidity.
Conversely, the outlook may be revised to 'Negative' if the Laxmi
group's financial risk profile deteriorates, most likely because
of low cash accruals, significant stretch in working capital
cycle, or large debt-funded capital expenditure (capex).
LIC and RCE are partnership firms set up by Mr. Rasiklal Shah and
his family members. Both the firms process psyllium husk from
psyllium seeds; the product is known as Isabgol in India. The
group's operations are managed by Mr. Amit Shah and Mr. Suketu
Shah.
LIC reported a net profit of INR3.8 million on net sales of
INR761.2 million for 2013-14, against a net profit of INR2.9
million on net sales of INR627.9 million for 2012-13.
RCE reported a net profit of INR5.7 million on net sales of
INR1.17 billion for 2013-14, against a net profit of INR3.9
million on net sales of INR1.02 billion for 2012-13.
RENUKA EQUIPMENTS: CRISIL Reaffirms B+ Rating on INR111.7MM Loan
----------------------------------------------------------------
CRISIL's ratings on the bank loan facilities of Renuka Equipments
Private Limited (REPL) continue to reflect REPL's small scale and
working capital intensive nature of operations and susceptibility
of its profitability to volatility in raw material prices. These
rating weaknesses are partially offset by REPL's promoter's
extensive experience in power and steel material handling
industry, and modest net worth and debt protection metrics.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 60 CRISIL A4 (Reaffirmed)
Cash Credit 60 CRISIL B+/Stable (Reaffirmed)
Letter of Credit 5 CRISIL A4 (Reaffirmed)
Proposed Long Term
Bank Loan Facility 0.2 CRISIL B+/Stable (Reaffirmed)
Term Loan 111.7 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that REPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if company generates more
than expected revenue growth and profitability, leading to steady
accretions to reserves, and improvement in net worth. Conversely,
the outlook may be revised to 'Negative' in case there is
significant deterioration in its profitability or stretch in its
working capital cycle, or larger than expected debt funded capital
expenditure, leading to deterioration in company's financial risk
profile.
Incorporated in 1997 by Mr. Soumitra Kothari, REPL is engaged in
manufacturing of equipments for power and steel industry. The
company operates in three segments: supply of hot metal handling
equipments such as ladles, and transfer cars; execution of turnkey
projects that for installation of hot metal handling equipments at
customer's site; and fabrication of structural items and research
and development (R&D) work in metallurgical sector.
REPL reported a profit after tax (PAT) of INR6 million on net
sales of INR113.4 million for 2013-14, as against a PAT of INR6.3
million on net sales of INR98.3 million for 2012-13.
RRB ENERGY: CARE Reaffirms B Rating on INR124.97cr LT Loan
----------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
RRB Energy Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 124.97 CARE B Reaffirmed
Long-term/ Short-term Bank
Facilities 40.00 CARE B/CARE A4
Reaffirmed
Rating Rationale
The ratings continue to be constrained by the weak financial risk
profile of the company characterized by high gearing ratio, low
cash accruals, large receivables and modest order book position.
The ratings derive comfort from experienced promoters with long
track record of operations and favorable outlook for the renewable
energy sector.
Going forward, increase in scale of operations with improvement in
profitability and capital structure, and ability to monetize
assets as envisaged shall be the key rating sensitivities.
Incorporated in 1987, RRB Energy Limited (RRBEL, formerly Vestas
RRB India Limited) is engaged in the business of manufacture,
erection and commissioning of Wind Electric Generators (WEGs) and
also provides after sales services and maintenance services for
WEGs.
It currently manufactures WEGs with capacity of 225KW, 500KW and
600 KW. RRBEL also has developed 1.8 MW WEG and has received the
certificate from GL Garrad Hassan (GL-GH) of Germany. The Centre
for Wind Energy Technology (C-WET) has accordingly listed
company's 1.8 MW WEG in their Revised List of Models and
Manufacturers (RLMM). The company has manufacturing facilities
located at Chennai and New Delhi. RRBEL has ISO 9001:2008 and ISO
14001:2004 certification for manufacture, installation and
servicing of WEGs by Det Norske Veritas (DNV), Netherlands.
During FY14 (refers to the period April 1 to March 31), RRBEL
reported total operating income of INR 172.66 crore with net
profit of INR 7.33 crore. In H1FY15 (refers to the period April 1
to September 30) (provisional), RRBEL achieved total operating
income of INR 39.30 crore with net loss of INR 5.64 crore.
SANJAY SHUKLA: CRISIL Assigns B+ Rating to INR30MM Cash Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' rating to the
bank loan facilities of M/s Sanjay Shukla (MSS).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term 29.1 CRISIL B+/Stable
Bank Loan Facility
Bank Guarantee 40.9 CRISIL A4
Cash Credit 30.0 CRISIL B+/Stable
The ratings reflect MSS's small scale of operations in a highly
fragmented and competitive consignment agency industry. The
ratings also factor in the below-average financial risk profile
marked by small net worth and high gearing. These rating
weaknesses are partially offset by the promoters' extensive
experience in freight forwarding and transportation business and
its established relationships with customers.
Outlook: Stable
CRISIL believes that MSS will benefit from its promoters'
extensive industry experience in freight forwarding and
transportation business over the medium term. The outlook may be
revised to 'Positive' in case of significant improvement in the
firm's scale of operations while it maintains its profitability
leading to sizeable accruals or if there is a substantial decline
in advances given to the group entities. Conversely, the outlook
may be revised to 'Negative' in case of further weakening in the
firm's financial risk profile and liquidity on account of large
working capital requirements, further investments made in group
entities or if it undertakes a large capital expenditure
programme.
Incorporated in 1980s, and based in Indore (Madhya Pradesh) MSS
provides freight forwarding and transportation services since its
inception. The day-to-day activity is managed by its proprietor
Mr. Sanjay Shukla.
SATYA INFRA: CRISIL Reaffirms B+ Rating on INR112.5MM Term Loan
---------------------------------------------------------------
CRISIL's rating on the long-term bank facility of Satya
Infrastructures Ltd (SIL) continues to reflect SIL's weak revenue
and operating cash flows given the slow progress in its project
and exposure to the cyclicality inherent in the Indian real estate
industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 112.5 CRISIL B+/Stable (Reaffirmed)
The slow progress in the project is reflected by the slow pace of
offtake in phase I and delayed launch of phase II. These rating
weaknesses are partially offset by the established track record of
SIL's promoters in the construction industry and funding support
from the promoters.
Outlook: Stable
CRISIL believes that SIL will remain exposed to project
implementation risks and to cyclicality inherent in the Indian
real estate industry, over the medium term. The outlook may be
revised to 'Positive' in case of higher-than-expected sales in its
project, leading to healthy and sustainable cash accruals.
Conversely, the outlook may be revised to 'Negative' in case of
delays in receipt of customer advances, leading to pressure on the
company's revenue and profitability, thus impacting its liquidity.
Incorporated in 2005, SIL is a part of the Satya group promoted by
Mr. Nawal Kishore Agarwal and his son, Mr. Manish Agarwal. The
company develops real estate in northern India.
SCAN STEELS: CARE Reaffirms B+ Rating on INR160cr Cash Credit
-------------------------------------------------------------
CARE revises/reaffirms rating assigned to the bank facility &
fixed deposit of Scan Steels Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facility 40.07 CARE B+ Revised from
(Term Loan) CARE B+ to CARE D and
then revised to CARE B+
Long-term Bank Facility 160.00 CARE B+ Reaffirmed
(Cash Credit)
Short Term Bank Facilities 32.50 CARE A4 Reaffirmed
(Non-fund Based)
Medium-Term Instrument- 9.92 CARE B+ (FD) Reaffirmed
Fixed Deposit
Rating Rationale
The revision in long term bank facility (Term Loan) rating to
'CARE D' reflects delays in debt servicing in Term loan by the
company. The rating was revised as per CARE's policy of
recognizing default. However, on regularization of debt servicing
by the company, the long term bank facility (Term loan) ratings
has been again revised to 'CARE B+'.
The ratings for Long term bank facility (Cash Credit) & Short term
bank facility (Non-fund based) were reaffirmed at 'CARE B+' and
'CARE A4' respectively. CARE has also reaffirmed the rating
assigned to the Fixed Deposit at 'CARE B+ (FD)'.
The ratings are constrained by the company's lack of backward
integration coupled with volatility in raw material prices,
stretched liquidity position coupled with high utilisation of
working capital and corporate guarantee extended to the group
company. The ratings, however, take into account the experience of
the promoters, moderation of loss in FY14 (refers to the period
April 1 to March 31) followed with profit in M9FY15 and infusion
of funds by the promoters.
The ability of the company to improve its stressed liquidity
position and generate profitability through optimum capacity
utilisation would remain the key rating sensitivities.
Scan Steels Ltd (SSL) belonging to Gadodia family of Orissa, is
engaged in manufacturing of sponge iron (2, 10, 000 MTPA),
ingots (1, 16, 000 MTPA) & MS rod (58,000 MTPA). SSL also has a
captive power plant of 12 MW, which partially meets its
power requirement.
The company was in the process of merging itself with Clarus
Infrastructure Realities Ltd. (CIRL), final order of which was
received by the Honb. High Court of Orissa and subsequently such
merger became effective from the date the Certified Copy of the
Court Order was filed with ROC, i.e.; August 12, 2014 while the
appointed date of such merger is April.1, 2010. CIRL was
incorporated in 1996. Post such merger, SSL is a public limited
listed company.
In FY14, SPRML reported net loss of INR19.46 crore on total
operating income of INR426.42. In M9FY15, the company earned a PAT
of INR 2.64 crore on total operating income of INR341.10 crore.
SHAMANUR SUGARS: CARE Lowers Rating on INR49.44cr FB Loan to D
--------------------------------------------------------------
CARE revises the ratings assigned to bank facilities of Shamanur
Sugars Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities- 10.36 CARE D Revised from
Term Loan CARE C
Long-term Bank Facilities- 49.44 CARE D Revised from
Fund-based CARE C
Short-term Bank Facilities- 40.00 CARE D Revised from
Non-fundbased CARE A4
Rating Rationale
The revision in the ratings of Shamanur Sugars Ltd (SMSL) factors
in the instances of delay in debt servicing resulting from its
stretched liquidity position.
SMSL is a public limited company, commenced commercial operations
in 1999, promoted by Mr S. Shivashankarappa. SMSL operates an
integrated sugar mill with aggregate crushing capacity of 2,500
tonnes of cane per day (TCD), a multi fuel cogeneration plant with
60 KLPD capacity. The facility is based out in central Karnataka.
The day-to-day operations are managed by Mr SS Bakkesh (MD), son
of promoter Mr S Shivashankarappa. The promoters have more than
three decades of experience in the sugar industry.
During FY14 (refers to the period April 1 to March 31), SMSL
registered a PAT of INR4.1 crore (FY13: INR1.6 crore) on net
sales of INR185.8 crore (FY13: INR183.9 crore). During 9mFY15,
SMSL made a PBT of INR0.8 crore on net sales of INR148.8
crore.
SHIVANS POWER: CRISIL Assigns B Rating to INR50MM Proposed Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Shivans Power & Irrigation Pvt Ltd (SPIPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term 50 CRISIL B/Stable
Bank Loan Facility
Pre Shipment Credit 10 CRISIL A4
Cash Credit 10 CRISIL B/Stable
Post Shipment Credit 10 CRISIL A4
The ratings reflect SPIPL's modest scale of operations,
susceptibility to volatility in foreign exchange rates, and large
working capital requirements. The ratings also factor in the
firm's below-average financial risk profile marked by high total
outside liabilities to tangible net worth ratio and below average
debt protection metrics. These rating weaknesses are partially
offset by the extensive experience of SPIPL's promoters in the
trading of ceramic pipes, sugar, rice industry.
Outlook: Stable
CRISIL believes that SPIPL will continue to benefit from the
extensive experience of its promoters. The outlook may be revised
to 'Positive' if the company's financial risk profile improves
driven by improvement in cash accruals, efficient working capital
management or capital infusion by the promoters. Conversely, the
outlook may be revised to 'Negative' in case the company's
financial risk profile and liquidity deteriorates due to lower
than expected cash accruals or higher than expected working
capital requirements.
Incorporated in 2007, SPIPL is engaged in trading of various types
of pipes. It is also engaged in trading of rice and sugar.
The company is based in Navi Mumbai and promoted by Mr. Sunil
Shashi and Mrs. Sarita Shahi.
SPIPL reported a profit after tax (PAT) of INR0.6 million on
revenue of INR111.5 million for 2013-14 (refers to financial year,
April 1 to March 31) against a profit after tax (PAT) of INR0.1
million on revenue of INR12.2 million for 2012-13.
SHREE AMEYA: CRISIL Upgrades Rating on INR99MM LT Loan to B-
------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Shree Ameya Public Charitable Trust (SAPCT) to 'CRISIL B-/Stable'
from 'CRISIL D'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 8.5 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Long Term Loan 99.0 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Proposed Long Term 15.0 CRISIL B-/Stable (Upgraded
Bank Loan Facility from 'CRISIL D')
Term Loan 35.0 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
The rating upgrade reflects SAPCT's timely servicing of its term
debt over the five months through February'15, supported by
improvement in its liquidity following robust fee collection for
the academic year 2014-15. The trust recorded income of around
INR80 million for the nine months through December 2014, as
against INR42 million for 2013-14 (refers to financial year, April
1 to March 31), on the back of increase in students for the
Masters of Management Studies (MMS) and Bachelor of Architecture
courses. CRISIL believes the trust will record income of around
INR86 million in 2014-15. SAPCT's operating surplus margin is
expected to improve to around 37 per cent in 2014-15 from 22 per
cent in 2013-14. CRISIL believes that the trust will generate cash
accruals of around INR26.6 million, as against debt obligation of
around INR25.5 million, in 2014-15.
The rating reflects SAPCT's modest scale of operations and its
weak financial risk profile, marked by a modest net worth, high
gearing, and weak debt protection metrics. These rating weaknesses
are partially offset by the benefits expected from the healthy
demand prospects for the education sector.
Outlook: Stable
CRISIL believes that SAPCT will benefit over the medium term from
the healthy demand prospects for the education sector. The outlook
may be revised to 'Positive' if the trust substantially improves
its accruals on the back of a significant increase in fee
collection, thereby improving its financial risk profile,
particularly its liquidity. Conversely, the outlook may be revised
to 'Negative' if SAPCT's financial risk profile, particularly its
liquidity, weakens, most likely because of low fee collection or
debt-funded capital expenditure.
SAPCT was registered in Mumbai under the Public Trust Act in
September 2001, to set up educational institutions offering
autonomous and university-affiliated courses in management. The
trustees are Mr. Harishchandra Mishra (founder of the trust), his
son Mr. Ashish Mishra, and other family members.
The trust initially set up Aditya Institute of Management Studies
and Research, at Borivali in Mumbai, spread over a campus of 0.89
acres, which currently offers Post Graduate Diploma in Management
(PGDM) and MMS courses. The trust then set up Aditya College of
Architecture, which offers architecture courses, and Aditya
College of Interior Design, which offers interior designing
courses. The trust also has a banquet hall (Aditya Banquet Hall)
which has capacity of 1200 to 1500 people, and recently set up
Aditya Convention Centre, with similar capacity.
SAPCT received approval from the All India Council for Technical
Development in July 2011 to offer the Post Graduate Diploma in
Management course. The trust subsequently got itself registered
with Mumbai University for offering the MMS course. The trust has
also received an approval from the Council of Architecture, New
Delhi, for offering the Bachelor of Architecture course. SAPCT is
currently offering an autonomous course for interior designing,
but recently got affiliated to Yashwantrao Chavan Open University
and has also applied for affiliation with the Maharashtra Board of
Technical Education.
The trust reported a deficit of INR17.8 million on income of
around INR42.1 million for 2013-14; the trust reported a deficit
of around INR11.2 million on income of around INR24.3 million in
2012-13.
SHREYA LIFE: CRISIL Cuts Rating on INR630.5MM Bank Loan to D
------------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of
Shreya Life Sciences Private Limited (SLPL) to 'CRISIL D/CRISIL D'
from 'CRISIL B/Stable/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 735 CRISIL D (Downgraded
from 'CRISIL B/Stable')
Letter of Credit 325 CRISIL D (Downgraded
from 'CRISIL A4')
Proposed Long Term 630.5 CRISIL D (Downgraded
Bank Loan Facility from 'CRISIL B/Stable')
Standby Line of 50.0 CRISIL D (Downgraded
Credit from 'CRISIL B/Stable')
Term Loan 119.5 CRISIL D (Downgraded
from 'CRISIL B/Stable')
Working Capital 40.0 CRISIL D (Downgraded
Demand Loan from 'CRISIL B/Stable')
The ratings' downgrade reflects consistent delays by SLPL in
servicing its debt owing to liquidity constraints. This emanates
from depreciation of the Russian Rouble against the Indian Rupee
in 2014-15, which affected the company adversely given its
sizeable exports to Russia.
The ratings also reflect susceptibility of SLPL's accruals to
intense competition in the pharmaceutical sector and to its
ability to scale up its operations in the overseas markets while
maintaining its profitability and working capital cycle. These
rating weaknesses are partially offset by its promoter's extensive
experience in the pharmaceuticals industry and its diversified
product portfolio.
SLPL was set up in 2001 by Mr. Sujit Kumar Singh. The company
manufactures and markets a wide range of pharmaceutical products,
such as tablets, capsules, liquid orals, and lozenges, across
diverse categories of medicine. Besides the domestic market,
Shreya also caters to the overseas markets, especially to Russia.
SLPL reported a profit after tax (PAT) of INR 348.2 million on net
sales of INR 4.98 billion for 2012-13 (refers to financial year,
April 1 to March 31), against a PAT of INR291.8 million on net
sales of INR4.5 billion for 2011-12.
SHRI GAJANAN: CRISIL Reaffirms B+ Rating on INR50MM Cash Loan
-------------------------------------------------------------
CRISIL's ratings on the bank facilities of Shri Gajanan
Engineering Services (SGES) continue to reflect SGES's modest
scale of operations, large working capital requirements, and
average financial risk profile marked by modest net worth and
gearing. These rating weaknesses are partially offset by the
established track record of SGES in the electrical contracting
industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 30 CRISIL A4 (Reaffirmed)
Cash Credit 50 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that SGES will continue to benefit over the medium
term from its established position in the electrical contracting
industry. The outlook may be revised to 'Positive' if the firm
achieves significant and sustained improvement in its revenue,
while improving its capital structure. Conversely, the outlook may
be revised to 'Negative' if SGES registers a significant decline
in its revenue or margins, or if its working capital cycle
lengthens, or if it undertakes any large debt-funded capital
expenditure programme, weakening its financial risk profile.
Update
Having achieved revenue of INR120 million for the 11 months
through February 2015, SGES is likely to achieve year-on-year
revenue growth of around 10 per cent, to around INR160 million, in
2014-15 (refers to financial year, April 1 to March 31). Its
operating margin remains stable, at 14 to 15 per cent. SGES has an
outstanding order book of INR90 million, to be executed over the
10 months through January 2016, providing near-term revenue
visibility. CRISIL believes that while SGES will continue to
improve its scale of operations and maintain operating
profitability over the medium term, its modest scale of operations
will continue to constrain its business risk profile.
SGES's financial risk profile is average, marked by expected
modest net worth of around INR16 million and gearing of 1.22 times
as on March 31, 2015. With external borrowings limited to working
capital limits and nil term debt, the firm has a moderate interest
outgo, resulting in above-average debt protection metrics; its
interest coverage ratio is expected at around 2.5 times for 2014-
15. However, CRISIL believes that the low accretion to reserves,
constrains the improvement in net worth; the company's modest net
worth level limits the company's ability to withstand pressure on
profitability.
SGES has average liquidity with large working capital requirements
continuing to result in high bank limit utilisation. With expected
gross current assets of over 350 days as on March 31, 2015, driven
by large receivables, the firm's bank limit utilisation was high,
averaging 94 per cent over the 12 months through October 2014.
CRISIL believes that while SGES will continue to have large
working capital requirements over the medium term, absence of term
debt obligations and capital expenditure plans will support the
firm's liquidity over the medium term.
SGES, established in 2001, is a proprietorship concern of Mrs.
Shubangi Deshmukh. SGES is an engineering, procurement, and
construction (EPC) contractor engaged in setting up of substations
and transmission lines for state power transmission and
distribution utilities in Maharashtra. Its day-to-day operations
are managed by Mr. Ravindra Deshmukh (husband of Mrs. Shubangi
Deshmukh).
For 2013-14, SGES reported a profit after tax (PAT) of INR6.7
million on net sales of INR118.7 million on a provisional basis,
as against a PAT of INR6.3 million on net sales of INR105.8
million for 2012-13.
SONAMOTI AGROTECH: CARE Assigns B Rating to INR14.95cr LT Loan
--------------------------------------------------------------
CARE assigns 'CARE B' and 'CARE A4' ratings to the bank facilities
of Sonamoti Agrotech Pvt. Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 14.95 CARE B Assigned
Short-term Bank Facility 1.31 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Sonamoti Agrotech
Pvt. Ltd. (SAPL) are primarily constrained by its short track
record coupled with small scale of operation in the highly
fragmented & competitive agri industry, its leveraged capital
structure with losses at the net level in FY14 (refers to the
period April 1 to March 31). The ratings are further constrained
by limited experience of the promoters in the rice milling
business, susceptibility of profitability subject to government
regulations, seasonal nature of availability of paddy resulting in
working capital intensity and exposure to the vagaries of nature.
The aforesaid constraints are partially offset by its proximity to
major paddy-growing areas enabling easy availability and
logistics advantage.
The ability of the company to increase the scale of operations and
profitability margins along with effective working capital
management would be the key rating sensitivities.
Sonamoti Agrotech Pvt. Ltd. (SAPL) was incorporated in April, 2010
by the Kasera family of Patna, Bihar for setting up a paddy
processing unit at Karmali Chak, Patna, Bihar. The company
commenced commercial production in November, 2013 with rice
processing capacity of 62,400 metric tonne per annum (MTPA).
During FY14 (refers to the period November 1, 2013 to March 31,
2014), SAPL reported a total operating income of INR14.3 crore and
a loss of INR0.9 crore. In 8MFY15, the company has maintained to
achieve sales of around INR27 crore.
VISHAL CARS: CRISIL Assigns B Rating to INR125MM Term Loan
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Vishal Cars Private Limited (VCPL). The ratings
reflect VCPL's exposure to risks related to funding and
implementation of the ongoing project. These rating weaknesses are
partially offset by VCPL's promoter's extensive industry
experience.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 125 CRISIL B/Stable
Cash Credit 72.5 CRISIL B/Stable
Proposed Short Term
Bank Loan Facility 2.5 CRISIL A4
Outlook: Stable
CRISIL believes that VCPL will maintain a stable credit risk
profile on the back of promoter's extensive experience. The
outlook may be revised to 'Positive' in case of timely execution
of the project within the projected cost or in case of higher than
expected profitability; resulting in higher than expected accruals
and thus better financial risk profile. Conversely, the outlook
may be revised to 'Negative' in case of any time or cost overrun
which would adversely impact the financial risk profile of the
company and thus its debt-servicing ability.
Incorporated in 2013, VCPL is a Lucknow based company. It is
mainly into the dealership of Tata Motors Jagaur and Land Rover.
The promoters of the company are Mr. Vishal Singh and Mr. Amit
Singh.
VRINDAA CRAFTS: CARE Reaffirms B+ Rating on INR12cr LT Loan
-----------------------------------------------------------
CARE reaffirms ratings to bank facilities of Vrindaa Crafts
Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 12 CARE B+ Reaffirmed
Rating Rationale
The rating assigned to the bank facilities of Vrindaa Crafts
Private Limited (VCP) continue to be constrained by its limited
track record of operations, weak financial risk profile
characterized by low profitability margins, leveraged capital
structure, weak coverage indicators and working capital intensive
nature of operations. The rating is further constrained by
susceptibility of its margins to volatility in gold prices and
presence in a highly fragmented and competitive gems & jewellery
(G&J) industry.
The rating however, continues to favourably factor in the
experience of the promoters in the G&J industry.
Going forward, the ability of the company to increase its scale of
operations while improving its profitability margins along with
effective working capital utilization and improvement in capital
structure shall be the key rating sensitivities.
Incorporated in 2013, Delhi-based Vrindaa Crafts Private Limited
(VCP) is promoted by Mr Sanjeev Gupta, Mr Rajeev Gupta, Ms Anju
Gupta and Ms Neeru gupta. The company sells gold and diamond
jewellery to wholesalers and traders mainly in the National
Capital Region. VCP procures gold and diamond jewellery/gold
bars from wholesale traders in Delhi mainly on cash or advance
basis and get its products manufactured on a job-work basis
through local jewellery manufacturers. The group company of VCP i
e Vaibhav Enterprises is a family run business of designing and
trading of gold and diamond jewellery since 2001.
VCP reported a PAT of INR0.23 crore on a total income of INR56.44
crore in FY14 (refers to the period April 1 to March 31). VCP has
achieved a total operating income of INR72.29 crore till
January 31, 2015.
====================
N E W Z E A L A N D
====================
GOLDLINK ENTERPRISES: Former Worker Won't Get Money Owed to Him
----------------------------------------------------------------
The New Zealand Herald reports that a restaurant worker who was
paid less than minimum wage will miss out on most of the NZ$32,000
owed to him after his former employers went into liquidation.
The report says Gagandeep Singh was underpaid while working at
Masala Indian Restaurant at Bucklands Beach and Mission Bay.
The Herald relates that labour inspector Tasneem Begum claimed
Mr Singh was owed NZ$32,264 in unpaid wages, holiday pay, and
public holiday payments.
Mr. Singh had worked at the restaurants between June 2013 and
May 2013, spending two weeks at Bucklands Beach before moving to
the Mission Bay restaurant, according to the report. At the time
he did not have a work permit and was not permitted to work in New
Zealand, the report states.
The Herald says the companies, both represented by Joti Jain,
denied he had worked at either restaurant. However, the Employment
Relations Authority (ERA) said it was satisfied with the evidence
put forward by the labour inspector that Mr Singh did work and was
owed wages, according to the report.
Goldlink Enterprises Ltd, trading as Masala Mission Bay, went into
liquidation on March 10, the day before an investigation meeting
was to have taken place, the report discloses.
Liquidators did not consent to action before the ERA continuing
against the liquidated company.
CHK Hospitality Limited, trading as Masala Bucklands Beach, went
into liquidation on September 2, 2013.
According to the report, Mr. Singh said he had not been paid for
his work at Bucklands Beach at all.
CHK Hospitality Limited was ordered to pay NZ$2,160 for unpaid
wages and holiday pay, plus interested calculated at 5 per cent
per annum from June 2012, the report recalls.
"The failure to pay minimum wage to an employee is inexcusable,"
the report quotes authority member Vicki Campbell as saying.
"Workers like Mr Singh are vulnerable to exploitation due to the
conflict that would necessarily arise for them if they complain
that they are not receiving minimum standards."
The company was also ordered to pay a penalty of NZ$10,000, with
NZ$5,000 to be paid to Mr. Singh, the report adds.
SOLID ENERGY: Chairwoman Quits Over Disagreement With English
-------------------------------------------------------------
Stuff.co.nz reports that the chairwoman of Solid Energy quit
because she disagreed with Finance Minister Bill English that the
company could be saved, an e-mail showed.
Pip Dunphy resigned from the board of Christchurch-based the
state-owned mining company in February, less than a year after
being appointed, the report recalls.
Stuff.co.nz relates that Ms. Dunphy is a highly regarded
professional director, sitting on the boards of the NZ
Superannuation Fund, Abano Healthcare and the Fonterra
Shareholders' Fund.
Her resignation from Solid Energy has so far been unexplained, the
report notes.
According to the report, Labour MP Clayton Cosgrove released an
email on April 1 from acting Solid Energy chairman Andy Coupe,
containing what Coupe said was the text of an email he received
from Ms. Dunphy.
Stuff.co.nz relates that the document quoted Ms. Dunphy as saying
that: "I received a message from Minister English yesterday before
the meeting but only listened last night. His view was that the
issues were resolvable and I seemed to be of the view they were
not and he was keen to speak to me.
"I rang him this morning and said that my impression of last
night's conversation was that ministers and their advisors thought
the board's position was wrong. I said I take responsibility for
that and I did not want to stand in his way of achieving what they
believe is possible.
"I said in my view it was in the best interests of the company
that I resign."
On March 10, Mr. English told reporters he was still not sure if
Solid Energy, which has racked up hundreds of millions of dollars
in losses, was viable, the report says.
"It's still not clear [if the company is viable] . . . and that's
with very serious and competent efforts by the board and
management of Solid Energy, and now, increasing focus from the
banks," Mr. English, as cited by Stuff.co.nz, said.
Stuff.co.nz relates that while Prime Minister John Key said on
March 2 that it was not the Government's preferred option to put
more taxpayer cash into Solid Energy, English flatly ruled out
cash, loans or guarantees.
"We've done two rounds of support for the company," the report
quotes Mr. English as saying. "In the end you have to work out
whether there's a viable company or not and we're in that process.
We're doing everything we can to secure the continuity of the
company."
About Solid Energy
Solid Energy New Zealand Ltd is New Zealand's largest coal mining
company and an investor in research and commercialisation of
sustainable forms of energy that use coal, coal seam gas, biomass,
biodiesel and solar. Solid Energy's core mining business
includes hard coking coal, primarily for export to steel mills
throughout Asia, and thermal coal for the Huntly power station
and other domestic customers in the steel, dairy and cement
industries.
As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 6, 2014, BusinessDesk said Solid Energy posted its third
annual loss in a row as the financially distressed state-
owned coal miner wrote down the value of its export operations
amid lower coal price assumptions, and warned of more red ink to
come.
BusinessDesk related that the Christchurch-based state-owned
enterprise reported a loss of NZ$181.9 million in the 12 months
ended June 30, compared to a loss of NZ$335.4 million a year
earlier, it said in its annual report tabled in Parliament on
October 31. The company's board doesn't anticipate it will return
to profitability until the 2017 financial year, based on its
current projections, BusinessDesk added.
*********
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 ***