/raid1/www/Hosts/bankrupt/TCRAP_Public/150714.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
Tuesday, July 14, 2015, Vol. 18, No. 137
Headlines
A U S T R A L I A
EQUIPMENT COMPONENT: First Creditors' Meeting Set For July 20
GET PLASTERED: First Creditors' Meeting Set For July 20
HEAVY HAULAGE: Wound Up; 70 Workers Lose Jobs
HNJ EXCAVATIONS: First Creditors' Meeting Set For July 21
NEWSAT LIMITED: SpeedCast Buys Two Teleport Sites
ONE EYE: In Liquidation; 1st Creditors' Meeting Set For July 20
SINO STRATEGIC: Court Appoints Pitcher Partners as Liquidator
TRITON TRUST 2014-P: Fitch Affirms 'Bsf' Rating of Class F Notes
* AUSTRALIA: Bankruptcies Fall to 20 Year Low
I N D I A
ANKUR IRON: CRISIL Ups Rating on INR90MM Cash Loan to 'B+'
ASHWANI KUMAR: CRISIL Reaffirms 'B+' Rating on INR62MM Cash Loan
AUTO PROFILES: CRISIL Cuts Rating on INR263.2MM Cash Loan to 'B-'
AZAD ISPAT: CRISIL Assigns B+ Rating to INR120MM Cash Loan
BDS HOSPITALITY: CRISIL Cuts Rating on INR80MM Term Loan to 'D'
BISWAJANANI COLD: CRISIL Reaffirms B- Rating on INR103.6MM Loan
BLP ENERGY: CRISIL Lowers Rating on INR1.0BB Loan to 'D'
BNR EGG: ICRA Suspends B- Rating on INR7.50cr LT Loan
DAULAT RAM: Ind-Ra Affirms 'IND BB-' Long-Term Issuer Rating
DUARS UNION: CRISIL Reaffirms 'B+' Rating on INR55MM Cash Loan
DURGAPUR CHEMICALS: CRISIL Reaffirms D Rating on INR407.9MM Loan
ELECTROSTEEL STEELS: CARE Cuts Rating on INR8,114.44cr Loan to D
FOOD INN: CARE Assigns 'B+' Rating to INR8.92cr LT Loan
GEN NEXT: Ind-Ra Assigns 'IND BB+' Long-Term Issuer Rating
GOLDEN GATES: CRISIL Assigns 'B' Rating to INR39MM Term Loan
GOPAL KRISHNA: Ind-Ra Assigns 'IND B' Long-Term Issuer Rating
GOPSONS PAPERS: Ind-Ra Withdraws IND D(suspended) Issuer Rating
GOVINDAM FOOD: CRISIL Reaffirms 'B+' Rating on INR35MM Cash Loan
INDIAN STEEL: ICRA Lowers Rating on INR1,036.5cr Loan to 'D'
INDIRA CONTAINER: CARE Reaffirms 'D' Rating on INR791.63cr Loan
INDUS EDUCATIONAL: CRISIL Ups Rating on INR47MM Term Loan to B+
JAI MAAKALI: ICRA Assigns 'B' Rating to INR35cr Cash Credit
KAMLA INSTRUMENTS: ICRA Assigns 'SP3D' Grading
MANGALMURTI BIO-CHEM: ICRA Reaffirms 'B' Rating on INR3.99cr Loan
MODUS LOGISTICS: ICRA Assigns B+ Rating to INR28.5cr LT Loan
MONNET ISPAT: CARE Lowers Rating on INR5,860.06cr Loan to 'D'
MYNOR ENTERPRISES: CRISIL Reaffirms 'B+' Rating on INR16MM Loan
NACHIKETA COTTON: ICRA Revises Rating on INR6.5cr Cash Loan to B
NATIONAL MINING: CRISIL Reaffirms D Rating on INR80MM Cash Loan
NATWEST ESTATES: CRISIL Reaffirms B+ Rating on INR120.4MM Loan
NAVTEJ INFRASTRUCTURE: CRISIL Rates INR30MM Overdraft Loan at B+
NIKHIL AUTOMOBILES: Ind-Ra Assigns 'IND BB+' LT Issuer Rating
OM SUGARS: CARE Assigns 'B' Rating to INR25cr LT Bank Loan
PARANJAPE AGRO: CRISIL Assigns 'B+' Rating to INR125MM Bank Loan
PAREKH ALUMINEX: CRISIL Reaffirms 'D' Rating on INR8.5BB Loan
PRANAV CONSTRUCTION: CRISIL Assigns B- Rating to INR214.9MM Loan
PRIYANKA CONSTRUCTIONS: CRISIL Ups Rating on INR60MM Loan to B+
PUNJ LLOYD: CARE Lowers Rating on INR300cr NCD III to 'D'
SALONI JEWELLERS: ICRA Lowers Rating on INR125cr Cash Loan to 'D'
SALTEE BUILDCON: Ind-Ra Assigns 'IND BB' Long-Term Issuer Rating
SARVODYA HOSPITAL: CRISIL Reaffirms D Rating on INR190MM Loan
SHALIMAR INDUSTRIES: Ind-Ra Withdraws 'IND BB-' LT Issuer Rating
SHREE NAVKAR: ICRA Assigns B+ Rating to INR8.50cr Fund Based Loan
SHREE SHIVAM: ICRA Reaffirms 'B' Rating on INR4cr Cash Credit
SIMOCO TELECOMMUNICATIONS: ICRA Rates INR38cr Cash Loan at 'D'
SM JDB: CARE Reaffirms 'B+' Rating on INR50.64cr LT Loan
SPS EDUCATIONAL: CARE Reaffirms B+ Rating on INR25.25cr LT Loan
SRI LAKSHMI: ICRA Suspends 'B' Rating on INR13cr LT Loan
SRINIVASA RICE: ICRA Assigns 'B' Rating to INR9.65cr LT Loan
SURFACE GRAPHICS: CRISIL Cuts Rating on INR77.1MM Loan to 'D'
SVN AGRO: CRISIL Reaffirms 'B' Rating on INR45MM Cash Loan
SWARGIYA BHIKAM: Ind-Ra Hikes INR74.28MM Loan Rating to 'IND BB'
TOMAR CONSTRUCTION: Ind-Ra Assigns 'IND BB-' LT Issuer Rating
TRIMULA G: CRISIL Reaffirms 'B+' Rating on INR75MM Cash Loan
TRUMP IMPEX: CRISIL Ups Rating on INR95MM Cash Loan to B+
ULTRA ALUMINIUM: CRISIL Assigns 'B' Rating to INR38MM Cash Loan
UNIK BAZAR: CRISIL Reaffirms 'B+' Rating on INR60MM Cash Loan
VASISTA EDUCATIONAL: ICRA Lowers Rating on INR16cr Term Loan to D
VINAYAK HATCHERIES: CARE Assigns B+ Rating to INR4.90cr LT Loan
VIROO MAL: CRISIL Ups Rating on INR600MM Cash Loan to 'B+'
VYANKTESH CORRUGATORS: CRISIL Reaffirms B Rating on INR80MM Loan
I N D O N E S I A
BERAU COAL ENERGY: Singaporean Unit Files in the United States
J A P A N
TOSHIBA CORP: President to Resign Amid Padded Profits Probe
N E W Z E A L A N D
ARENA CAPITAL: Should be Liquidated, Administrators Say
MTF VALIANT 2014: Fitch Affirms 'Bsf' Rating on Class F Notes
SEAGARS: Faces Liquidation After Several Months
S I N G A P O R E
BERAU CAPITAL RESOURCES: Files Chapter 15 Petition in U.S.
BERAU CAPITAL: Chapter 15 Case Summary
X X X X X X X X
* BOND PRICING: For the Week July 6 to July 10, 2015
- - - - -
=================
A U S T R A L I A
=================
EQUIPMENT COMPONENT: First Creditors' Meeting Set For July 20
-------------------------------------------------------------
Sam Kaso and Bruno A Secatore of Cor Cordis were appointed as
administrators of Equipment Component Holdings Pty Ltd on July 8,
2015.
A first meeting of the creditors of the Company will be held at
the Institute of Chartered Accountants, Level 3, Bourke Place, 600
Bourke Street, in Melbourne, on July 20, 2015, at 11:00 a.m.
GET PLASTERED: First Creditors' Meeting Set For July 20
-------------------------------------------------------
Blair Pleash & Anne-Marie Barley of Hall Chadwick were appointed
as administrators of Get Plastered (QLD) Pty Ltd on July 8, 2015.
A first meeting of the creditors of the Company will be held at
the offices of Hall Chadwick, Level 19, 144 Edward Street, in
Brisbane, Queensland, on July 20, 2015, at 11:30 a.m.
HEAVY HAULAGE: Wound Up; 70 Workers Lose Jobs
---------------------------------------------
Eloise Keating at SmartCompany reports that Heavy Haulage
Australia will be wound up and more than 70 people will lose their
jobs, after no buyer was found for the collapsed business.
Heavy Haulage Australia slumped into voluntary administration at
the end of June, with administrators Brendan Richards, John
Lindholm and Tim Michael from Ferrier Hodgson moving quickly to
restructure the business earlier this month, the report says.
But Mr. Richards said on July 10 that Heavy Haulage Australia had
failed to attract a buyer that was prepared to operate the
business as a going concern, amid continued tough conditions in
the resources sector, according to SmartCompany.
"While we received a promising level of initial interest from
investors, the continuing fall in iron ore prices and the
subsequent pressure on the Australian mining industry has seen
that interest dissipate," Mr. Richards said in a statement
provided to SmartCompany.
The closure of the business will mean more than 70 jobs will be
lost in Brisbane and Toowoomba in Queensland and Perth and Port
Hedland in Western Australia, SmartCompany relates.
Heavy Haulage's assets will now be sold privately, says
SmartCompany. The company's assets include more than 50 prime
movers, 120 haulage trailers, 15 cranes and 40 pilot and light
commercial vehicles.
"This is another sad day for the Australian transport industry but
also further evidence that the decline in the mining industry is
still very much continuing," SmartCompany quotes Mr. Richards as
saying. "The outlook for many of the companies with exposure to
that decline is troubling to say the least, and further fallout is
likely in the near future."
HNJ EXCAVATIONS: First Creditors' Meeting Set For July 21
---------------------------------------------------------
Gregory Stuart Andrews and Andrew Paul Juzva of G S Andrews
Advisory were appointed as administrators of HNJ Excavations &
Demolitions Pty Ltd on July 10, 2015.
A first meeting of the creditors of the Company will be held at
22 Drummond Street, in Carlton, on July 21, 2015, at 10:00 a.m.
NEWSAT LIMITED: SpeedCast Buys Two Teleport Sites
-------------------------------------------------
Cliff Sanderson at Dissolve.com.au reports that Hong Kong-based
SpeedCast has bought the teleport sites of NewSat Limited in
Adelaide and Perth. NewSat is selling its assets to pay debts
following its placement into receivership in April this year, the
report says.
Dissolve.com.au relates that the acquisition includes all
buildings, land and equipment and the majority of its present
customer contracts. This deal will result in the move of NewSat's
20 employees to SpeedCast, the report notes.
The purchased assets are expected to generate revenue of AUD22
million during 2015-2016, the report adds.
NewSat Limited was founded in 1987 as a multimedia business and
gradually evolved into a satellite communications company. NewSat
is now Australia's largest pure-play satellite communications
company, with teleports and satellites delivering internet, voice,
data and video communications coverage to 75% of the globe,
including Australia, Asia, the Middle East, Africa, Europe and the
United States.
NewSat's Jabiru-2, which was launched in September 2014, delivers
"Ku-Band" capacity across Australia, Timor Leste, Papua New Guinea
and the Solomon Islands, and provides connectivity to the
resources, commercial mobility, media, telecommunications and
government sectors. NewSat's own commercial satellite named
Jabiru-1 is currently being built and is targeted for launch in
2015 to 2016. Jabiru-1 will be Australia's first commercial
"Kaband" satellite and is expected to deliver 7.6 GHz of new
capacity in the covered regions.
As a result of certain defaults, cost overruns on the Jabiru-1
satellite project, and management issues, lenders halted funding
to NewSat. Citicorp International, as trustee for lenders, on
April 16, 2015, placed NewSat into administration in Australia.
It appointed Stephen James Parbery and Marcus William Ayres, of
PPB Advisory in Sydney, Australia, as administrators. Citi also
appointed Jason Preston and Matthew Wayne Caddy of McGrathNicol as
receivers.
On April 16, 2015, the Administrators filed Chapter 15 bankruptcy
petitions for NewSat and affiliates NSN Holdings Pty Ltd., NewSat
Services Pty Ltd., Jabiru Satellite Holdings Pty Ltd., NewSat
Space Resources Pty Ltd., NewSat Networks Pty Ltd., and Jabiru
Satellite Ltd. (Bankr. D. Del. Lead Case No. 15-10810) to stop
actions by creditors in the U.S. The U.S. cases are assigned to
Judge Kevin J. Carey. Young, Conaway, Stargatt & Taylor and Allen
& Overy LLP serve as counsel.
NewSat listed $500 million to $1 billion in assets and $100
million to $500 million in debt in its Chapter 15 petition.
ONE EYE: In Liquidation; 1st Creditors' Meeting Set For July 20
---------------------------------------------------------------
Timothy Clifton and Simon Miller of Clifton Hall were appointed as
Joint and Several Liquidators of One Eye Pty Ltd on 9 July 2015.
A meeting of creditors will be held at 10:00 a.m. on July 20, 2015
at Clifton Hall, Level 3, 431 King William Street, in Adelaide.
SINO STRATEGIC: Court Appoints Pitcher Partners as Liquidator
-------------------------------------------------------------
Following a successful Australian Securities and Investment
Commission application to the Federal Court of Australia,
Michael Basedow of Pitcher Partners has been appointed liquidator
to ASX-listed Sino Strategic International Limited (Sino
Strategic).
The court order follows an ASIC investigation into the company.
ASIC was concerned:
* Sino Strategic had been involved in multiple contraventions
of the Corporations Act and it was not complying with its
obligations under that legislation, including failing to
lodge financial reports and convene annual general meetings.
* the affairs of Sino Strategic have not been properly managed
for some time and the assets of the company were at risk,
and
* Sino Strategic's continued failure to comply with the basic
regulatory requirements of a listed company is contrary to
the interests of the company's shareholders.
ASIC Commissioner John Price said, 'ASIC is targeting poor
corporate culture and poor governance practices in listed
companies to ensure investors have confidence in the Australian
market.
'Failure to report to members and file accounts is unacceptable.
ASIC will seek to wind up companies that disregard important legal
obligations which exist to protect investors.'
On July 1, 2015 ASIC applied to the Federal Court in Sydney to
wind up Sino Strategic on just and equitable grounds. ASIC also
sought and obtained orders to freeze AUD115,300 sitting in Sino
Strategic's bank account.
ASIC's application was made because Sino Strategic failed:
-- to lodge its annual financial reports for the years ending
June 30, 2011, June 30, 2012, June 30, 2013 and June 30,
2014 in breach of section 319(1) of the Corporations Act
-- to lodge its half-year financial reports for the periods
ending December 31, 2010, December 31, 2011, December 31,
2012, December 31, 2013 and December 31, 2014 in breach of
section 320(1) of the Corporations Act
-- to report to members for the years ended June 30, 2011,
June 30, 2012, June 30, 2013 and June 30, 2014 in breach
of section 314(1) of the Corporations Act
-- to hold AGMs for the years ended June 30, 2010, June 30,
2011, June 30, 2012, June 30, 2013 and June 30, 2014 in
breach of section 314(1) of the Corporations Act
-- to provide any explanation to shareholders for the delays
in financial reporting since October 31, 2013, and
-- to comply with section 201A(2) of the Corporations Act by
not having two directors resident in Australia since
November 20, 2012; and
-- to comply with section 204A(2) of the Corporations Act by
not having a company secretary for a period in excess of
16 months.
In November 2014, Sino Strategic was convicted and fined AUD18,000
for failing to hold annual general meetings and lodge financial
reports with ASIC.
Sino Strategic is the Australian holding company of a Chinese
subsidiary company which operates a licensed gaming business in
Shanghai.
Sino Strategic listed on the Australian Securities Exchange in May
1987. Its shares have been suspended since August 2010.
TRITON TRUST 2014-P: Fitch Affirms 'Bsf' Rating of Class F Notes
----------------------------------------------------------------
Fitch Ratings affirms 11 classes from three Triton Trust No. 2
Series RMBS transactions. These transactions are backed by pools
of Australian residential mortgages. The notes have been issued by
Perpetual Corporate Trust Limited as trustee for Triton Trust No.
2 in respect of the three transactions
KEY RATING DRIVERS
The affirmations reflect Fitch's view that the available credit
enhancement is sufficient to support the notes' current ratings,
and the agency's expectations of Australia's economic conditions.
The credit quality has also remained within the agency's
expectations.
At May 31, 2015, Triton 2014-P had the highest level of arrears at
6.81%, above Fitch's 1Q15 Dinkum RMBS Index of 1.17%.
The transaction consisted of 25.8% low documentation loans and the
pool had an average loan to value ratio (LVR) of 67.5% and an
indexed LVR of 55.7%. The pool had interest-only loans of 29.3%
and investment loans made up 53.4% of the pool by balance.
Lender's mortgage insurance (LMI) covered 44.3% of the pool and
was provided by Genworth Financial Mortgage Insurance Pty Ltd
(Insurer Financial Strength Rating: A+/Stable), MGIC Australia Pty
Limited and QBE Lenders' Mortgage Insurance Limited (Insurer
Financial Strength Rating: AA-/Stable). Since closing, cumulative
losses have totalled 0.9% and LMI has covered 87.7% of all claims
submitted.
Triton 2013-1 and Triton 2014-1 had arrears level below Fitch's
1Q15 Dinkum RMBS Index of 1.17%. All loans in the underlying
portfolios have LMI provided by Genworth Financial Mortgage
Insurance Pty Ltd and QBE Lenders' Mortgage Insurance Limited.
There have been no losses since closing.
RATING SENSITIVITIES
Sequential pay-down has increased credit enhancement for the
senior notes of each transaction. The ratings of all rated notes
are independent of any potential downgrades to the LMI provider's
ratings.
The 'AAAsf' breakeven stressed default rate for Triton 2013-1 is
10%. The Class A notes can withstand an additional 74.6% in
defaults at Fitch's 'AAAsf' loss severity of 20.9%, while the
Class AB notes can withstand an additional 13.9% in defaults.
The 'AAAsf' breakeven stressed default rate for Triton 2014-1 is
9.1%. The Class A notes can withstand an additional 41.9% in
defaults at Fitch's 'AAAsf' loss severity of 19.8%, while the
Class AB notes can withstand an additional 2.5% in defaults.
The 'AAAsf' breakeven stressed default rate for Triton 2014-P is
25.23%. The Class A1 notes can withstand an additional 46.16% in
defaults at Fitch's 'AAAsf' loss severity of 46.36%, while the
Class A2 notes can withstand an additional 12.94% in defaults.
At their current rating loss severities and breakeven stressed
default rate, the remaining rated notes can withstand defaults of
between 11.38% - 22.19%.
The ratings of the Triton 2014-P notes have not been upgraded,
despite increased credit enhancement, as the transaction is
currently constrained by concentration, based on the pool
composition.
There are currently no charge offs on any notes. The prospect for
downgrades is considered remote at present, given the level of
subordination available to all rated notes, the performance of the
pools as well as adequate excess spread. Fitch's analysis excludes
credit to excess spread.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation
to this rating action.
DATA ADEQUACY
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the
underlying pools and the transactions. There were no findings that
were material to this analysis. Fitch has not reviewed the results
of any third party assessment of the underlying pools' information
or conducted a review of loan origination files as part of its
ongoing monitoring.
The full list of rating actions is below:
Triton Trust No.2 Bond Series 2013-1 (Triton 2013-1):
AUD209.9 million Class A notes affirmed at 'AAAsf'; Outlook
Stable; and
AUD32 million Class AB notes affirmed at 'AAAsf'; Outlook Stable
Triton Trust No.2 Bond Series 2014-P (Triton 2014-P):
AUD72.8 million, Class A1 notes affirmed at 'AAAsf'; Outlook
Stable;
AUD16.4 million, Class A2 notes affirmed at 'AAAsf'; Outlook
Stable;
AUD4.0 million, Class B notes affirmed at 'AAsf'; Outlook Stable;
AUD3.0 million, Class C notes affirmed at 'Asf'; Outlook Stable;
AUD3.75 million, Class D notes affirmed at 'BBBsf'; Outlook
Stable;
AUD3.7 million, Class E notes affirmed at 'BBsf'; Outlook Stable;
and
AUD1.0 million, Class F notes affirmed at 'Bsf'; Outlook Stable
Triton Trust No.2 Bond Series 2014-1 (Triton 2014-1):
AUD349 million, Class A notes affirmed at 'AAAsf'; Outlook Stable;
and
AUD30 million, Class AB notes affirmed at 'AAAsf'; Outlook Stable
* AUSTRALIA: Bankruptcies Fall to 20 Year Low
---------------------------------------------
Australian Associated Press reports that the number of
bankruptcies has fallen to its lowest level in 20 years, led by a
big drop in New South Wales.
The Australian Financial Security Authority (AFSA) said across
Australia, there were a total 28,288 personal insolvencies
recorded in 2014/15, a 4.2 per cent fall from the previous year,
AAP relates.
By category, bankruptcies fell 7.7 per cent to 17,163, while debt
agreements ticked up 1.9 per cent and personal insolvency
agreements rose 2.9 per cent, according to AAP.
The news agency relates that AFSA said the number of bankruptcies
across the country "in 2014/15 were at the lowest level since
1994/95."
AAP discloses that NSW recorded the biggest fall in the number of
bankruptcies, followed by Tasmania, Victoria, Queensland, South
Australia and the ACT. However, bankruptcies surged on an annual
basis in the Northern Territory and increased in Western
Australia.
The report relates that AFSA said that while bankruptcies had
fallen overall in 2014/15, they had risen in the three months to
June 2015.
"Bankruptcies increased 9.3 per cent in the June quarter 2015,
compared to the June quarter 2014," the report quotes AFSA as
saying. "This is the first rise since the March quarter 2014
compared to the March quarter 2013."
=========
I N D I A
=========
ANKUR IRON: CRISIL Ups Rating on INR90MM Cash Loan to 'B+'
----------------------------------------------------------
CRISIL has upgraded its rating on the long term bank facilities of
Ankur Iron India Pvt Ltd (AIPL) to 'CRISIL B+/Stable' from 'CRISIL
B/Stable', while reaffirming its rating on the company's short-
term bank facility at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 90 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Letter of Credit 50 CRISIL A4 (Reaffirmed)
Proposed Long Term 21.2 CRISIL B+/Stable (Upgraded
Bank Loan Facility from 'CRISIL B/Stable')
Term Loan 3.8 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
The rating upgrade reflects the improvement in AIPL's working
capital management, as indicated by a decrease in its gross
current assets (GCAs) to 63 days as on March 31, 2015, from 160
days as on March 31, 2014. The lower GCAs were primarily due to a
decrease in the company's debtors to 51 days from 132 days over
this period. This has resulted in moderation in bank limit
utilisation to 87 per cent over the 12 months through March 2015,
which, combined with increased cash accruals, has improved the
company's liquidity. The rating upgrade also factors in the
improvement in AIPL's revenue and profitability, resulting in a
better business risk profile. The company has registered a year-
on-year growth of 16 per cent in its revenue to about INR1.7
billion in 2014-15 (refers to financial year, April 1 to March 31)
from INR1.47 billion in 2013-14. CRISIL believes that AIPL will
maintain its working capital requirements over the medium term.
The ratings reflect the susceptibility of AIPL's margins to
cyclicality in the steel sector, and the company's weak financial
risk profile, marked by a modest net worth, high external
indebtedness, and weak debt protection metrics. These rating
weaknesses are partially offset by the extensive experience of
AIPL's promoters in the steel trading industry.
Outlook: Stable
CRISIL believes that AIPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the company reports a
significant increase in its revenue, while improving its margins
and capital structure. Conversely, the outlook may be revised to
'Negative' if AIPL's financial risk profile weakens further, most
likely because of large external debt for meeting its working
capital requirements, or substantially low cash accruals.
AIPL was incorporated in 2011 to take over the business of the
proprietorship concern, Ankur Steel Corporation, which was set up
in 1982. The company trades in steel and steel products such as
cold-rolled sheets, galvanised sheets, and hot-rolled sheets. Its
clientele includes local resellers who in turn sell to end users.
The company's promoters, Mr. Kiran Mehta and his son Mr. Harsh K
Mehta, oversee its day-to-day operations. AIPL's registered office
is in Mumbai.
ASHWANI KUMAR: CRISIL Reaffirms 'B+' Rating on INR62MM Cash Loan
----------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Ashwani Kumar
and Company Pvt Ltd (AKCPL) continues to reflect AKCPL's large
working capital requirements, modest scale of operations, and
susceptibility to slowdown in its end-user industries.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 62 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 22.1 CRISIL B+/Stable (Reaffirmed)
These rating weaknesses are partially offset by the industry
experience of AKCPL's promoters and the company's moderate
financial risk profile marked by comfortable total outside
liabilities to tangible net worth (TOLTNW) ratio.
Outlook: Stable
CRISIL believes that AKCPL's business profile will continue to
benefit from promoters' extensive industry experience. The outlook
may be revised to 'Positive' if the company achieves significantly
large net cash accruals and improves its working capital cycle,
leading to improvement in its liquidity. Conversely, the outlook
may be revised to 'Negative' in case of significant decline in
AKCPL's profitability, or further stretch in its liquidity, or
sizeable term debt contracted to acquire large assets, weakening
its capital structure.
Incorporated in 1962, AKCPL trades in used industrial machinery.
The company deals in more than 600 sizes and types of machines,
including lathes, and milling, grinding, drilling, boring,
shearing, moulding, and welding machines. The products find
application in industries such as automotive ancillaries, and
heavy and general engineering.
AKCPL reported profit after tax (PAT) of INR8.3 million on
operating income of INR153.2 million for 2013-14 (refers to
financial year, April 1 to March 31), against PAT of INR10.4
million on operating income of INR160.2 million for 2012-13. The
company is likely to report revenue of around INR120 million for
2014-15.
AUTO PROFILES: CRISIL Cuts Rating on INR263.2MM Cash Loan to 'B-'
-----------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Auto Profiles Ltd (APL) to 'CRISIL B-/Stable' from 'CRISIL
B/Stable' and has reaffirmed its rating on the company's short-
term facility at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 15 CRISIL A4 (Reaffirmed)
Cash Credit 204 CRISIL B-/Stable (Downgraded
from 'CRISIL B/Stable')
Proposed Cash 212.9 CRISIL B-/Stable (Downgraded
Credit Limit from 'CRISIL B/Stable')
Proposed Long Term 84.9 CRISIL B-/Stable (Downgraded
Bank Loan Facility from 'CRISIL B/Stable')
Term Loan 263.2 CRISIL B-/Stable (Downgraded
from 'CRISIL B/Stable')
Working Capital 20.0 CRISIL B-/Stable (Downgraded
Term Loan from 'CRISIL B/Stable')
The rating downgrade reflects CRISIL's belief that APL's liquidity
will remain under pressure over the medium term, with low cash
accruals and incremental working capital requirements resulting in
almost full utilisation of its bank limits. The company will
require fresh capital from its promoters or will have to register
significant improvement in the net cash accruals to alleviate the
pressure on its liquidity and meet its term debt obligations over
the medium term.
APL has registered cash accruals of about INR18.6 million in 2014-
15 (refers to financial year, April 1 to March 31), which would be
insufficient to meet its large term debt obligations of INR79.3
million in 2015-2016. Despite a significant revenue growth of
about 67 per cent in 2014-15, the company has incurred a net loss
of around INR36 million for the year, resulting in low net cash
accruals.
In 2014-15, APL met its term debt obligations through a mix of net
cash accruals generated, unsecured loans from promoters, and a
short-term loan raised from Tata Capital Financial Services Ltd.
Outlook: Stable
CRISIL believes that APL's liquidity will remain stretched over
the medium term with its cash accruals expected to be insufficient
to meet its term debt repayments and its large working capital
requirement. The outlook maybe revised to 'Negative' in case of
further stretch in the company's working capital cycle, or cash
losses recorded by the company resulting in inability to serve the
term obligations. Conversely, the outlook may be revised to
'Positive' in case of a sustained increase in the company's
profitability margins resulting in considerable improvement in net
cash accruals adequate enough to serve debt obligations.
APL, promoted in 1991 by Mr. Bikash Mukherjee and his family
members, manufactures automotive (auto) components. The company,
based in Jamshedpur (Jharkhand) is a Tier I ancillary supplier to
Tata Motors Ltd (TML); it makes around 90 per cent of its sales to
TML. APL manufactures various auto parts/sheet metal components
for medium and heavy commercial vehicles; it also manufactures
diesel engines and construction equipment. It has three
manufacturing units in Jamshedpur and one in Lucknow with annual
manufacturing capacity of 72,000 tonnes per annum (tpa) and 6000
tpa, respectively.
AZAD ISPAT: CRISIL Assigns B+ Rating to INR120MM Cash Loan
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Azad Ispat India Pvt Ltd (AIIPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 120 CRISIL B+/Stable
Proposed Term Loan 6.7 CRISIL B+/Stable
The rating reflects AIIPL's modest scale of operations in the
intensely competitive steel products industry, and its below-
average financial risk profile, marked by weak debt protection
metrics. These rating weaknesses are partially offset by the
extensive experience of AIIPL's promoters in the steel products
industry.
Outlook: Stable
CRISIL believes that AIIPL will continue to benefit over the
medium term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' in case of significant
improvement in the company's scale of operations and profitability
or in case of timely completion and stabilisation of the proposed
capital expenditure, leading to improvement in its financial risk
profile. Conversely, the outlook may be revised to 'Negative' if
AIIPL's accruals decline, or if there are significant delays in
stabilisation of the ongoing project, or if its working capital
management declines, resulting in deterioration in its financial
risk profile.
Incorporated in 2007, Hindupur (Andhra Pradesh)-based AIIPL
manufactures mild steel billets and thermo-mechanically treated
bars. The company is promoted by members of the Azad family and
its day-to-day operations are managed by Mr. Summer Azad.
AIIPL reported a loss of INR10.6 million on total revenue of
INR937.14 million for 2013-14 (refers to financial year, April 1
to March 31), vis-a-vis a loss of INR14.7 million on total revenue
of INR616.89 million for 2012-13.
BDS HOSPITALITY: CRISIL Cuts Rating on INR80MM Term Loan to 'D'
---------------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of
BDS Hospitality Pvt Ltd (BDS) to 'CRISIL D' from 'CRISIL
B/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 80 CRISIL D (Downgraded from
'CRISIL B/Stable')
The rating downgrade reflects instances of delay by BDS in
servicing its term debt; the delays have been caused by the
company's weak liquidity.
BDS's financial risk profile remains weak, marked by a high
gearing, weak liquidity and small net worth. The rating also
reflects the high customer concentration in BDS's revenue profile,
and the company's limited scope for revenue growth. These rating
weaknesses are partially offset by the extensive experience of the
company's promoters in the construction industry.
BDS, incorporated in 2011, is currently setting up a multi-
specialty hospital at Amritsar (Punjab). The hospital is scheduled
to commence operations in January 2015. The company is promoted by
Mr. Amarjit Singh Sabharwal and his brother, Mr. Tejinder Singh
Sabharwal. BDS has entered into an agreement with IVY Health and
Life Sciences Private Limited (IVY). IVY will manage the entire
operations of the hospital and BDS will receive monthly rental
income from IVY.
BISWAJANANI COLD: CRISIL Reaffirms B- Rating on INR103.6MM Loan
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Biswajanani Cold
Storage Pvt Ltd (BCSPL) continue to reflect BCSPL's exposure to
risks related to the highly regulated and intensely competitive
cold storage industry in West Bengal, and its weak financial risk
profile, marked by high gearing.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 2 CRISIL A4(Reaffirmed)
Cash Credit 103.6 CRISIL B-/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 7.7 CRISIL B-/Stable (Reaffirmed)
Term Loan 48.4 CRISIL B-/Stable (Reaffirmed)
Working Capital Loan 13.3 CRISIL B-/Stable (Reaffirmed)
These rating weaknesses are partially offset by the extensive
experience of the company's promoter in the cold storage business.
Outlook: Stable
CRISIL believes that BCSPL will continue to benefit over the
medium term from the extensive industry experience of its
promoter. The outlook may be revised to 'Positive' in case of an
increase in the company's cash accruals or infusion of capital by
its promoter, leading to an improvement in its overall financial
risk profile, particularly its liquidity. Conversely, the outlook
may be revised to 'Negative' in case of pressure on BCSPL's
liquidity on account of delays in repayments by farmers,
considerably low cash accruals, or significant debt-funded capital
expenditure.
Incorporated in 2009, BCSPL provides cold storage facilities for
potatoes; the promoters also undertake opportunistic trading in
potatoes through the company. The cold storage is located in
Mednipur West (West Bengal). The company's day-to-day operations
are managed by Mr. Amal Dandapat.
BLP ENERGY: CRISIL Lowers Rating on INR1.0BB Loan to 'D'
--------------------------------------------------------
CRISIL has downgraded its rating on the non-convertible debentures
(NCDs) of BLP Energy Pvt Ltd (BLP Energy) to 'CRISIL D' from
'CRISIL B-/Negative'. The rating downgrade reflects BLP Energy's
default on payment on the NCDs due on July 4, 2015.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Non Convertible 1000 CRISIL D (Downgraded from
Debentures CRISIL B-/Negative)
BLP Energy's management was exploring options to raise funds to
repay the NCDs and was also exploring the possibility of extending
the tenure of the NCDs. The company, however, was unable to raise
funds or extend the tenure of the NCDs before the due date.
BLP Energy, a wholly owned subsidiary of BLP India, is the holding
company for the group's wind power asset subsidiary, BLP Vayu
Project (1) Pvt. Ltd (BLP Vayu). The wind asset of 150 megawatts
(MW) acquired in Gujarat under BLP Vayu has an operational track
record of over seven years.
The group's other operational wind asset of 22.2 MW in Maharashtra
is in BLP Wind Project (Amberi) Pvt Ltd (BLP Amberi; held directly
by BLP India ), which commenced commercial operations in June
2012. BLP Amberi and BLP Vayu have long-term power-purchase
agreements with Maharashtra State Electricity Distribution Company
Ltd and Gujarat Urja Vikas Nigam Ltd, respectively, for sale of
their entire output.
BNR EGG: ICRA Suspends B- Rating on INR7.50cr LT Loan
-----------------------------------------------------
ICRA has suspended the long term rating of [ICRA]B- assigned to
INR7.50 crore (including unallocated limits of INR0.38 crore) long
term fund based limits of BNR Egg Farms. The suspension follows
ICRA's inability to carry out a rating surveillance in the absence
of the requisite information from the company.
Established in 2010, BNR Egg Farms is a partnership firm engaged
in the business of commercial layer poultry farming for the sale
of table eggs. The unit is located in Vizanagaram district of
Andhra Pradesh and the total capacity of Poultry layer unit is
200,000 layer birds. The day to day operations is looked after by
the managing partners, Mr. B. Sayanatha Rao and Mr. P. Seshagiri
Rao.
DAULAT RAM: Ind-Ra Affirms 'IND BB-' Long-Term Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Daulat Ram
Industries' (DRI) Long-Term Issuer Rating at 'IND BB-'. The
Outlook is Stable. The agency has also affirmed DRI's bank loans
as follows:
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Fund-based 170 Affirmed at IND BB-'/Stable/
working 'IND A4+'
capital limit
Long-term 75.2 Affirmed at 'IND BB-'/Stable
Loan
Inland letter 35.0 Affirmed at 'IND A4+'
of credit/foreign
letter of credit
Bank guarantee 12.5 Affirmed at 'IND A4+'
KEY RATING DRIVERS
The affirmation reflects DRI's continued moderate credit metrics
and a 27% yoy decline in its top-line in FY15 due to delayed
orders from its major customer, the Indian Railways. Unaudited
financials for FY15 indicate EBITDA interest coverage of 2.43x
(FY14: 2.25x), net leverage (net adjusted debt/operating EBITDA)
of 3.39x (4.02x) and revenue of INR528m. However, EBITDA margins
jumped to 14.06% in FY15 (FY14: 9.74%) due to cost savings on
electric motors which DRI now sources from a group company.
The liquidity is tight as reflected in the company's near full
average maximum working capital utilisation in the 12 months ended
June 2015.
The ratings continue to be supported by over four-decade-long
experience of DRI's founder in manufacturing dynamic break
resistors. Furthermore, DRI has an order book of INR343m, which is
estimated to be executed over the next four months.
RATING SENSITIVITIES
Negative: Sustained deterioration in the credit metrics will be
negative for the ratings.
Positive: A sustained improvement in the scale of operations with
an improvement in the credit metrics will be positive for the
ratings.
Established in 1973, DRI is a Bhopal-based partnership firm. It
manufactures dynamic brake resistors and its accessories and air
conditioners primarily for the Indian Railways.
DUARS UNION: CRISIL Reaffirms 'B+' Rating on INR55MM Cash Loan
--------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Duars Union
Tea Co. Ltd (DUTCL) continues to reflect DUTCL's modest scale of
operations in a fragmented and matured tea industry and working
capital intensive operations. These rating weaknesses are
partially offset by the extensive industry experience of the
DUTCL's promoters in the tea industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 55 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term 5.5 CRISIL B+/Stable (Reaffirmed)
Bank Loan Facility
Outlook: Stable
CRISIL believes that DUTCL will continue to benefit from its
promoters' extensive industry experience over the medium term. The
outlook may be revised to 'Positive' in case of significant
improvement in DUTCL's scale of operations and profitability,
while it maintains its capital structure. Conversely, the outlook
may be revised to 'Negative' in case of stress in DUTCL's
financial risk profile, particularly its liquidity, emanating from
low cash accruals or large working capital requirements or any
large debt-funded capex. Any negative developments on the renewal
of the lease for operating DUTCL's tea estate may also lead to the
revision of outlook to 'Negative'.
Update
The company's revenue is estimated to be muted at INR142 million
in 2014-15 (refers to financial year, April 1 to March 31). Muted
revenue has been on account of low capacity utilisation of the
company. DUTCL's operating margin is expected to remain low over
the medium term. Its financial risk profile is also expected to
remain average, marked by healthy gearing of less than 1 times and
moderate debt protection metrics for 2014-15. DUTCL's liquidity is
modest marked by low cash accruals, small capital expenditure
(capex) plans, and moderate bank limit utilisation of 78 per cent
over the four months through May 2015. It is also supported by the
flexibility of the promoters to infuse need-based funds in the
business.
Headquartered in Kolkata, DUTCL undertakes tea estate management
and tea processing in Darjeeling (West Bengal). The company was
incorporated in 1914 and was taken over by the current promoters,
Mr. B.P. Agarwala and his son Mr. Sushil Kumar Agarwala, in 1968.
DURGAPUR CHEMICALS: CRISIL Reaffirms D Rating on INR407.9MM Loan
----------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Durgapur
Chemicals Ltd (DCL) continues to reflect DCL's prolonged delay in
servicing its debt because of its weak liquidity. The company has
been categorised as a non-performing asset by the bankers.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term 2.1 CRISIL D (Reaffirmed)
Bank Loan Facility
Term Loan 407.9 CRISIL D (Reaffirmed)
DCL also has a weak financial risk profile, marked by its small
net worth, high gearing, and constrained debt protection metrics,
and modest scale of operations in a fragmented industry. However,
the company benefits from its long-standing presence in the chlor
alkali industry and its promoter's funding support.
Incorporated in 1963, DCL manufactures chlor alkalis such as
caustic soda lye, chlorine, and its derivatives such as bleaching
powder, hydrochloric acid, and bottled hydrogen. These products
find application in paper, textiles, soaps and detergents, and
alumina industries. DCL is promoted and fully owned by the
Government of West Bengal. Since 2010, the director-in-charge, Mr.
Subrata Mukherjee, manages the company's daily operations.
ELECTROSTEEL STEELS: CARE Cuts Rating on INR8,114.44cr Loan to D
-----------------------------------------------------------------
CARE revises the rating assigned to the bank facilities of
Electrosteel Steels Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank Facilities 8,114.44 CARE D Revised
From CARE B
Long/Short Term Bank 550.00 CARE D/CARE D Revised
Facilities from 'CARE B/CARE A4'
Short Term Bank Facilities 750.00 CARE D Revised
From CARE A4
Rating Rationale
The revision in ratings is on account of the recent delays in
payments of interest. Payment of interest amounting to INR82.35
crore for the quarter ended March 31, 2015 was paid in June 2015.
Delay in interest payment is on account of the delay in completion
of 2.51 MTPA integrated steel and ductile iron project thereby
resulting in an inadequate cash accruals to service the debt.
ESL, promoted by Electrosteel group of Kolkata, was incorporated
in December, 2006 to set up an integrated steel plant and Ductile
Iron (DI) pipe plant at Jharkhand. ESL is setting up a 2.51
million tonne per annum (MTPA) integrated steel and ductile iron
pipe project (including Captive Power Plant [CPP] of 120 MW) at
Bokaro, Jharkhand at a total project cost of INR11,237.35 crore.
While a part of the facility has commenced production, the balance
is still under construction. There has been delay in project
implementation and cost overrun in the project. Due to delay in
project implementation, the company went into CDR which was
approved on Sep.26, 2013.
FOOD INN: CARE Assigns 'B+' Rating to INR8.92cr LT Loan
-------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facility of Food Inn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 8.92 CARE B+ Assigned
Rating Rationale
The rating assigned to the bank facility of Food Inn (Finn) is
constrained by lack of prior experience of partners in the
hospitality business, project implementation risk, high
competition and cyclical and seasonality associated with the hotel
industry. The rating also factors in its partnership form of
constitution with inherent risk of withdrawal of capital in time
of contingency and risk of dissolution on account of poor
succession planning.
The aforesaid constraints are partially offset by the operation &
management tie-up with Citrus Resorts Pvt. Ltd., an established
brand and location advantage The ability of the firm to timely
complete the project without any further cost and time overrun and
achieve the projected occupancy and ARR levels, while maintaining
the profit margins would be the key rating sensitivities.
Food Inn (FIN) was set up as a partnership firm in the year 2009
by Mr Budh Singh and Mr Harpreet Singh, based out of Amritsar,
Punjab. The firm is currently setting up a greenfield hotel at
Amritsar, Punjab which shall be spread over 726 square yards of
land and shall comprise of 40 Guest Rooms, 2 Dining Restaurants
(with one being roof top restaurant), Caf‚, Spa, Bar, Gymnasium, 2
Banquet Halls, 2 Kitty Halls, etc.
The firm has entered into an MOU and technical services
arrangement with Citrus Resorts Pvt. Ltd., for franchise,
trademark license and marketing of the hotel for a period of 10
years under the "Citrus" brand.
Citrus Resorts Pvt. Ltd. operates, manages, and franchises hotels
and resorts in India. It is a newest chain of smart and
sophisticated hotels that provide a globally differentiated
lifestyle. It operates 12 Hotels in India at key locations like
Kerala, Karnataka, Goa, Maharashtra, Haryana and Tamil Nadu.
'Citrus' is a part of the Mirah group, which is a welldiversified
group engaged in Real Estate development, Hospitality, Travels,
Wind Energy Generation, Computer Education, Textiles, Corporate
Gifts and International Trading.
GEN NEXT: Ind-Ra Assigns 'IND BB+' Long-Term Issuer Rating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Gen Next Motors
Ltd (GNML) a Long-Term Issuer Rating of 'IND BB+'. The Outlook is
Stable. The agency has also assigned GNML's INR300.0m fund-based
working capital limits an 'IND BB+' rating with Stable Outlook.
KEY RATING DRIVERS
GNML's ratings reflect its limited operational track record and
moderate financial profile. According to the provisional
financials for FY15 (year end March), revenue was INR1,956m, net
financial leverage was 7.1x and EBITDA margins were 3.1%.
The ratings, however, benefit from a decade-long experience of the
company's promoter in the automotive dealership business and its
established relationship with Renault India Pvt. Ltd.
GNML's liquidity is comfortable as evident from its 81.39% average
working capital use over the 12 months ended June 2015.
RATING SENSITIVITIES
Positive: A substantial rise in the revenue along with a sustained
improvement in the overall credit metrics will be positive for the
ratings.
Negative: Any deterioration in the overall credit metrics will be
negative for the ratings.
COMPANY PROFILE
Incorporated in 2011, GNML is an authorised dealer of Renault
India.
The company is engaged in the business of automobile dealership of
Renault range of passenger cars in Mumbai, Maharashtra. GNML is
promoted by Mumbai-based Sumit Gupta and his family. The company
operates six showrooms and five workshops in and around the
region.
GOLDEN GATES: CRISIL Assigns 'B' Rating to INR39MM Term Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Golden Gates Educational Trust (GGET)
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long Term Loan 39 CRISIL B/Stable
Proposed Long Term
Bank Loan Facility 31 CRISIL B/Stable
The rating reflects GGET's modest scale of operations and exposure
to risks relating to geographic concentration in its revenue
profile. The rating also reflects the trust's below-average
financial risk profile marked by small networth.. These weaknesses
are partially offset by GGET's established regional presence as an
education service provider in Perambalur (Tamil Nadu).
Outlook: Stable
CRISIL believes that the GGET will continue to benefit, over the
medium term, from its established regional presence. The outlook
may be revised to 'Positive' if GGET reports significant growth in
revenue and profitability leading to improved cash accruals and
liquidity. Conversely, the outlook may be revised to 'Negative' if
GGET reports time or cost overruns in the ongoing capital
expenditure or faces adverse governmental regulations impacting
its cash accruals and liquidity.
GGET, established in 2002, runs two schools, Golden Gates
Matriculation Higher Secondary School and Golden Gates Vidhyashram
School, in Tamil Nadu. GGET's operations are managed by the
trustees, Mr. Ravichandran and Ms. Angayarkani.
GOPAL KRISHNA: Ind-Ra Assigns 'IND B' Long-Term Issuer Rating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Gopal Krishna
Rice Mills a Long-Term Issuer Rating of 'IND B'. The Outlook is
Stable. Ind-Ra has also assigned GKRM's INR70m fund-based
facilities a Long-term 'IND B' rating with Stable Outlook and
Short-term 'IND A4' rating.
KEY RATING DRIVERS
The ratings reflect GKRM's small scale of operations coupled with
fluctuating EBITDA margins due to the fragmented nature of the
basmati rice processing industry, its susceptibility to government
interventions and seasonality of operations. In FY15 (year end
March), revenue was INR118.26m (FY14: INR120.10m) and EBITDA
margins were 7.91% (FY14: 5.94%, FY13: 5.24%). Credit profile is
weak with net financial leverage of 9.47x in FY15 (FY14: 10.75x)
and EBITDA gross interest coverage of 1.13x (1.18x).
Liquidity is moderate as reflected in around 80% use of GKRM's
working capital limits during the 12 months ended May 2015.
The ratings, however, benefit from the over a decade-long
experience of GKRM's partners in the rice milling business. The
ratings are further supported by the entity's strong relationship
with its customers and suppliers.
RATING SENSITIVITIES
Negative: A dip in the operating profitability, leading to
deterioration in the credit metrics will be negative for the
ratings.
Positive: A substantial rise in the operating profitability,
leading to an improvement in the credit metrics will be positive
for the ratings.
GKRM is partnership entity engaged in rice milling and sorting.
The unit is located in Saharanpur (Uttar Pradesh) with an
installed capacity of 8MT/hour. The entity is purely into basmati
rice processing and the finished product is majorly exported to
Middle East countries.
GOPSONS PAPERS: Ind-Ra Withdraws IND D(suspended) Issuer Rating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Gopsons Papers
Limited's (Gopsons) 'IND D(suspended)' Long-Term Issuer Rating. A
full list of rating actions is at the end of this commentary.
The ratings have been withdrawn due to lack of adequate
information. Ind-Ra will no longer provide ratings or analytical
coverage for Gopsons.
Ind-Ra suspended Gopsons' ratings on 30 May 2014.
Gopsons' ratings:
-- Long-Term Issuer Rating: 'IND D(suspended)'; rating withdrawn
-- INR449.7 million long-term loan: 'IND D(suspended)'; rating
withdrawn
-- INR210 m fund-based working capital limits: 'IND
D(suspended)'; rating withdrawn
-- INR200 m non-fund-based working capital limits: 'IND
D(suspended)'; rating withdrawn
GOVINDAM FOOD: CRISIL Reaffirms 'B+' Rating on INR35MM Cash Loan
----------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Govindam Food
Products Pvt Ltd (GFPPL) continues to reflect GFPPL's below-
average financial risk profile, marked by modest net worth, and
small scale of operations in the intensely competitive wheat flour
industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 35 CRISIL B+/Stable (Reaffirmed)
Corporate Loan 10 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term 35 CRISIL B+/Stable (Reaffirmed)
Bank Loan Facility
Standby Line of
Credit 5 CRISIL B+/Stable (Reaffirmed)
Term Loan 20 CRISIL B+/Stable (Reaffirmed)
These rating weaknesses are partially offset by GFPPL's moderate
business risk profile, with diversification of business resulting
in increase in scale of operation and improving profitability, and
its promoters' extensive experience in the wheat flour industry.
Outlook: Stable
CRISIL believes that GFPPL will continue to benefit over the
medium term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the company significantly
improves its revenue and profitability, while maintaining a
comfortable capital structure. Conversely, the outlook may be
revised to 'Negative' if GFPPL's financial risk profile
deteriorates, most likely due to large debt-funded capital
expenditure or sharp decline in its revenue or profitability,
leading to inadequate cash accruals for meeting term debt
obligations.
Incorporated in 2010, GFPPL processes wheat to produce flour
(atta), refined flour (maida), cattle feed (cokar), and semolina
(suji). The company is owned and managed by Mr. Rajesh Ku Bansal,
Mr. Vikram Ku Rajoria, and Mr. Pradeep Kemka. It has its
manufacturing facility at Dhanbad (Jharkhand) and registered
office in Kolkata.
INDIAN STEEL: ICRA Lowers Rating on INR1,036.5cr Loan to 'D'
------------------------------------------------------------
ICRA has downgraded the long term and short term ratings for
INR2,520.53 crore bank limits and term loans of Indian Steel
Corporation Limited to [ICRA]D from the existing long term rating
of [ICRA]BB+ (stable) and short term rating of [ICRA]A4+. Further,
ICRA has reassigned the long term rating at [ICRA]C and short term
rating at [ICRA]A4 for the aforementioned bank limits of the
company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term loan 788.59 Downgraded to [ICRA]D and
reassigned at [ICRA]C
Fund-based Limits 274.36 Downgraded to [ICRA]D and
reassigned at [ICRA]C
Non-Fund-based 1,036.50 Downgraded to [ICRA]D and
Limits reassigned at [ICRA]A4
Unallocated 421.08 Downgraded to [ICRA]D and
reassigned at [ICRA]C
The rating action factors in the stretched liquidity profile of
the company resulting in instances of devolvement of Letters of
Credit (LC) in the last one year. The company's financial profile
and liquidity has deteriorated materially in FY15 as it reported
decline in turnover and significant cash losses. This has been on
account of, among other factors, weak market demand resulting in
lower sales and increase in cost of raw material, partially driven
by the depreciation of Indian rupee as the company imports
majority of its raw material. The devolved LCs have been converted
into working capital term loans (WCTL) which along with higher
working capital borrowings have led to increase in the total debt
of the company. This, coupled with decline in net worth (owing to
losses) has resulted in increased leverage and deterioration in
debt coverage indicators. Further the ratings continue to be
constrained by the inherent cyclicality in the steel industry; its
competitive nature, which limits the pricing flexibility of the
industry participants including ISCL; high level of relatively low
margin trading revenues of ISCL; and foreign exchange risk as also
evidenced by forex losses suffered by the company in recent years.
These factors have continued to exert pressure on the company's
profitability and cashflow generation. ICRA takes note of the
sizeable debt repayment obligation of the company in the near term
which is likely to require promoter support.
ICRA, however, takes note of the long experience of ISCL's
promoters, ISCL's established operational track record in the
steel industry; its sizeable manufacturing base; its wide customer
base which includes reputed players of the auto and white goods
sector; its locational advantage of being located near the Kandla
and Mundra port; and the management support and technical
assistance available from Mitsui and Company Limited, Japan.
Going forward, company's ability to achieve revenue growth,
increase its manufacturing volumes, and improve its profitability
along with timely servicing of debt servicing obligations will be
the key rating sensitivities.
Indian Steel Corporation Limited (ISCL) is jointly promoted by
Ruchi Group of Industries, India and Mitsui & Company, Japan in
the year 2004. The company is involved in manufacturing of Cold
Rolled (CR) coils & sheets and Galvanised Plain (GP) and
Galvanised Corrugated (GC) sheets. The company has set up its
manufacturing facilities at village Bhimasar near Kandla port,
Gandhidham in the State of Gujarat, in close proximity to Mundra
port.
INDIRA CONTAINER: CARE Reaffirms 'D' Rating on INR791.63cr Loan
---------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Indira Container Terminal Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 791.63 CARE D Reaffirmed
Term Loan
Rating Rationale
The rating assigned to the bank facilities of Indira Container
Terminal Private Limited (ICTPL) is constrained by continuing
delays in servicing of debt obligations since March 2014 due to
tight liquidity condition resulting from, significant delay in
completion of the project as against initial envisaged date and
consequent cost-overrun.
ICTPL is a special purpose vehicle promoted by three companies
namely Gammon India Limited (GIL, rated 'CARE C/CARE D/CARE A4')
(26% shareholding), Gammon Infrastructure Projects Limited (GIPL,
rated 'CARE BBB/CARE A3') (24% shareholding) and Noatum Ports
Sociedad Limitada Unipersonal SLU (NPSL), Spain (50%
shareholding). GIPL has acquired beneficial, controlling interest
and voting rights in respect of the equity shares from GIL. Due to
this, GIPL has become 50% joint venture partner in ICTPL.
The scope of the project requires ICTPL to develop, design,
finance, construct, equip, operate, maintain an offshore container
berth to handle vessels of 6,000 Twenty Equivalent Units and above
and quay length of not less than 700 m in the first stage and
further 350 m length as the traffic builds up and replace project
facilities and services for offshore container terminal during the
license period of 30 years from the date of award of license
(December 3, 2007) by Mumbai Port Trust. The project was planned
to be completed on December 3, 2010 however; the same could not be
accomplished, primarily due to non-receipt of principal
disbursements by bankers caused by MbPT's delay in fulfilling its
timely obligations.
In December 2014, ICTPL was able to reschedule the loans and
increase the moratorium period to July 2017.The revised
cost of the Mumbai Offshore Container Terminal Project is
estimated at INR1,233.01 crore. The total expenditure incurred
on the project till November 30, 2014 is INR626.00 crore. Hence,
the overall financial progress is around 62% for the entire
project.
INDUS EDUCATIONAL: CRISIL Ups Rating on INR47MM Term Loan to B+
---------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Indus Educational and Charitable Trust (IECT) to 'CRISIL
B+/Stable' from 'CRISIL B-/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Overdraft Facility 2.5 CRISIL B+/Stable (Upgraded
from 'CRISIL B-/Stable')
Proposed Long Term 20.5 CRISIL B+/Stable (Upgraded
Bank Loan Facility from 'CRISIL B-/Stable')
Term Loan 47 CRISIL B+/Stable (Upgraded
from 'CRISIL B-/Stable')
The rating upgrade reflects IECT's improving financial risk
profile, particularly liquidity, backed by improvement in business
risk profile. IECT's revenue increased to INR72.5 million in 2014-
15, (refers to financial year, April 1 to March 31) from INR69.8
million in 2013-14 backed by moderate occupancy levels. Its
financial risk profile has improved with an increase in its net
worth to INR98.9 million on account of stable accretion to
reserves. IECT's gearing at 0.50 times as on March 31, 2015,
remains healthy and is expected to decrease going forward, on
account of scheduled repayment of term loans. The trust's annual
cash accruals of INR25 million to INR28 million are expected to be
sufficient to meet its annual repayment obligations of INR6
million to 7 million over the medium term. IECT's liquidity also
remains supported by unsecured loans from promoters which will
remain in the business and adequate balance in the current account
to meet any exigency. IECT have also been sanctioned an overdraft
limit of INR2.5 million which remains utilised at an average of 80
per cent over the last 6 months.
The rating reflects the extensive experience of IECT's promoter in
the education sector. This rating strength is partially offset by
the trust's modest scale of operations and the susceptibility of
its margins to intense competition in the education sector.
Outlook: Stable
CRISIL believes that IECT will continue to benefit over the medium
term from the trustees' experience in the education sector. The
outlook may be revised to 'Positive' if the trust improves its
financial risk profile with a substantial increase in its scale of
operations and profitability. Conversely, the outlook may be
revised to 'Negative' if the trust undertakes any substantial
debt-funded capital expenditure (capex), or faces any adverse
impact of regulatory changes, resulting in a significant decline
in its student intake or cash accruals.
Established in 2006, IECT is managed by Mr. P B Reddy. The trust
runs a college ' Indus College of Engineering and Diploma Indus
School of Engineering ' in Bhubaneswar (Odisha).
JAI MAAKALI: ICRA Assigns 'B' Rating to INR35cr Cash Credit
-----------------------------------------------------------
ICRA has assigned a long term rating of [ICRA]B to INR35.00 crore
cash credit limits of Jai Maakali Fish Farms Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 35.00 [ICRA]B assigned
The assigned rating is constrained by stretched liquidity position
of the company as reflected by high utilization of the working
capital limits on the back of high receivable levels; and
leveraged capital structure with high gearing of 3.45 times and
moderate coverage indicators with interest coverage of 1.69 times
and NCA/TD of 7% for FY15. The rating also factors in inherent
risks in sea food industry like susceptibility to diseases,
climate change risks and government policies and high customer
concentration risk with top 4 clients contributing to 95% of
revenues in FY15. The ratings however positively factor in
significant experience of the promoters in the fish farming for
more than a decade; and significant increase in operating income
from INR4.80 crore in FY09 to INR47.51 crore in FY15 on the back
of increased fish production over the years.
Going forward, the company's ability to manage working capital
requirements will remain key rating sensitivity from credit
perspective.
Jai Maakali Fish Farms Private Limited (JMFFPL) is part of the Jai
Maakali Group of companies based at Tanuku, West Godavari
district. JMFFPL is incorporated in 2003 and is engaged in
cultivation of fish such as Rohu and Katla at Pothunuru and
Dosapadu villages in West Godavari District (Andhra Pradesh).
Recent Results
The company reported an operating income and net profit of
INR47.51 crore and INR1.80 crore respectively in FY2015
(provisional and unaudited) as against an operating income and net
profit of INR43.15 crore and INR0.68 crore respectively in FY2014.
KAMLA INSTRUMENTS: ICRA Assigns 'SP3D' Grading
----------------------------------------------
ICRA has assigned SP3D grading to Kamla Instruments indicating the
'Moderate Performance Capability' and 'Weak Financial Strength' of
the channel partner to undertake solar projects. The grading is
valid for a period of two years from the date of assignment of
grading i.e. till June 29, 2017 after which it will be kept under
surveillance.
Grading Drivers
Strengths
* Strong technical capabilities and long experience of the
promoter in the solar photo voltaic industry
* Established relationship with the component suppliers, which are
among the leading suppliers in India
* Positive customer feedback on the quality of products supplied
and after sales services being provided by the firm
Risk Factors
* Relatively smaller scale of operations of the firm
* Lack of geographical diversification, with a major portion of
the revenue being derived from the state of Jharkhand
* Limited number of manpower with adequate technical
qualification; ramping up of technical team would remain critical
to business growth
Fact Sheet
Year of Establishment: 2004
Office Address:
Indrapuri Road No-5, Ratu Road, Ranchi, Jharkhand, Pin-834005
Proprietor: Mr. Manish Kumar Singh
Established in 2004, Kamla Instruments (KI) is engaged in the
manufacture of solar home lighting system, solar street lighting
system, solar LED based home & street lighting system, solar
lantern, solar powered water pumping system and PV system
integrator for solar power plant. The firm procures solar modules
and other related equipments/ accessories from the suppliers,
while integrating and installing them at the user end. Presently,
a major portion of the operations of KI is in the state of
Jharkhand along with nominal presence in Odisha.
MANGALMURTI BIO-CHEM: ICRA Reaffirms 'B' Rating on INR3.99cr Loan
-----------------------------------------------------------------
ICRA has reaffirmed the long term rating assigned to the INR5.99
crore bank facilities of Mangalmurti Bio-Chem Private Limited at
[ICRA]B.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based bank
Facilities - Cash
Credit 2.00 [ICRA]B; reaffirmed
Fund based bank
Facilities- Term
loans 3.99 [ICRA]B; reaffirmed
The rating reaffirmation continues to factor in the long standing
experience of the promoters in the fertilizer industry as well as
the favourable demand scenario for the granulated NPK mixture
fertilizers in the current fiscal. The rating however remains
constrained by the modest scale of operations owing to its recent
commencement of operations, stretched capital structure due to its
on-going debt funded capital expenditure and high working capital
intensity of operations and the resultant weak financial profile
characterized by subdued debt coverage indicators. Given the
modest (relative to capital expenditure and working capital
funding requirements) accrual levels, the liquidity position of
the company has also remained stretched as evident by full
utilization of working capital limits. The liquidity position is
further expected to remain tight given the significant debt
repayments over the next three years. The rating also factors in
the vulnerability of profitability margins of the company to agro-
climatic conditions, raw material prices and regulatory risks,
which are typical to the fertilizer industry.
Operational since October 2012, MBPL is engaged in the
manufacturing and trading of granulated NPK mixture fertilisers,
soil nutrients, water soluble fertilizers, pesticides etc. While
the company undertakes manufacturing of the granulated NPK mixed
fertilizers and soil nutrients, it largely undertakes trading of
the latter two, with manufacturing activities contributing to more
than 70% of the total revenues (management's estimates).
Recent Results
MBPL reported a profit before tax (PBT) of INR0.12 crore on an
operating income of INR9.55 crore in FY2015 (provisional
estimates) as against a PBT of INR0.03 crore and Profit after tax
(PAT) of INR0.03 crore on an operating income of INR9.09 crore in
FY2014 (Audited)
MODUS LOGISTICS: ICRA Assigns B+ Rating to INR28.5cr LT Loan
------------------------------------------------------------
ICRA has assigned a long term rating of [ICRA]B+ to the INR28.5
crore term loan programme of Modus Logistics Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Fund Based 28.5 [ICRA]B+ Assigned
Facilities
The rating assigned is constrained by the weak financial profile
of the company characterised by continued losses, highly geared
capital structure and weak coverage indicators with debt servicing
being done with support from group entities. The ratings assigned
also take into consideration the short notice periods for
termination of lease agreements and the high customer
concentration of the company which could put pressure on the debt
servicing of the company in case of lease termination or any
sustained delays in revenue receipts. The ratings are however
supported by the strong experience and the established track
record of the promoters in the warehousing and allied industries
as well as the robust financial strength of the entities. The
rating also factors in the favourable location of the warehousing
facility in close proximity to the Cochin port, major roadways as
well as Cochin city as well as the healthy occupancy for the
warehouse with the major portion of the area leased out to
established and leading firms such as ITC Limited, LG Electronics
and Bajaj Electricals Limited.
Modus Logistics Private Limited was established in 2009 as GMD
Texports Private Limited for setting up, owning and managing a
warehouse facility at Kochal, near Konnammavu in Cochin and later
renamed to Modus Logistics Private Limited in 2011. The company
presently manages a warehouse facility comprising 8 buildings with
a combined built up area of nearly 2 lakh sq. ft. The shareholders
of Modus Logistics include prominent business personnel and
companies such as M/s. Baby Marine Ventures, Fedex Securities
Limited, Grenlace Builders and Developers Private Limited, Westex
Infotech Pvt. Ltd. Mumbai, Mr. Mohanlal V, Mrs. Thilakom Mohan
Kumar etc.
The company recorded sales of INR4.3 Cr and a net loss of INR0.21
Cr in FY 2013-14.
MONNET ISPAT: CARE Lowers Rating on INR5,860.06cr Loan to 'D'
-------------------------------------------------------------
CARE revises the ratings assigned to the bank
facilities/instruments of Monnet Ispat & Energy Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 5,860.06 CARE D Revised from
CARE B+
Short-term Bank Facilities 450.00 CARE D Revised from
CARE A4
Non-Convertible Debentures-I 300.00 CARE D Revised from
CARE B+
Non-Convertible Debentures-II 500.00 CARE D Revised from
CARE B+
Non-Convertible Debentures-III 250.00 CARE D Revised from
CARE B+
Rating Rationale
The revision in the ratings takes into account the delays in debt
servicing by the company.
MIEL, the flagship company of the Monnet group, was promoted by Mr
Sandeep Jajodia in 1990. The company commenced operations in 1994
with a sponge iron plant based on the technology provided by
Jindal Steel and Power Ltd.
It is currently involved in manufacturing of sponge iron, mild
steel, structural steel, ferro alloys and power generation with an
annual installed capacity of 800,000 metric tonnes (MT), 500,000
MT, 58,400 MT and 230 MW, respectively at the Raipur facility.
This apart, the company has completed 1.5 million tonnes per annum
(MTPA) steel project with 0.45 MTPA bar mill and 1.0 MTPA
plate/steckel mill in Raigarh. The majority of the company's steel
products are sold through traders.
Key updates
MIEL reported subdued financial performance during FY15 (refers to
the period April 1 to March 31) with decline in operating margins,
incurrence of net losses and deterioration in gearing and coverage
indicators.
During FY15, MIEL reported PBILDT of INR151 crore and net loss of
INR796 crore on a total operating income of INR3,212 crore, as
against a PBILDT and PAT of INR460 crore and INR67 crore
respectively in FY14 on a total operating income of INR2,339
crore. Lower operational profitability coupled with penalty paid
due to coal block de-allocation resulted in net losses of INR796
crore in FY15 as against net profit of INR67 crore in FY14. MIEL's
overall gearing deteriorated from 2.46x as on March 31, 2014 to
3.29x as on March 31, 2015 attributable to erosion of net worth
due to net losses incurred during FY15. Slower than envisaged
ramping up of operations of the newly commissioned steel plant at
Raigarh, economic slowdown and commencement of repayment on its
debt facilities availed for the steel plant has affected the
liquidity profile of the company.
MYNOR ENTERPRISES: CRISIL Reaffirms 'B+' Rating on INR16MM Loan
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Mynor Enterprises Pvt
Ltd (MEPL) continue to reflect MEPL's modest scale of operations
in the intensely competitive civil construction industry,
geographic concentration in its revenue profile, and its working-
capital-intensive operations. These rating weaknesses are
partially offset by the extensive industry experience of the
company's promoters and its healthy capital structure.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 40 CRISIL A4 (Reaffirmed)
Overdraft Facility 16 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that MEPL will continue to benefit over the medium
term from the extensive industry experience of its promoters. The
outlook may be revised to 'Positive' if the company scales up its
operations while it improves its margins on sustainable basis,
resulting in a better business risk profile. Conversely, the
outlook may be revised to 'Negative' in case of a steep decline in
MEPL's revenue and profitability, or if its working capital
management weakens resulting in stretched liquidity, or if it
undertakes a large debt-funded capital expenditure (capex)
programme, leading to weakening of its financial risk profile.
Update
MEPL reported revenue of about INR115 million for 2014-15 (refers
to financial year, April 1 to March 31), a healthy year-on-year
growth of 60 per cent. The revenue growth was supported by
execution of a higher number of orders. The company's operating
margin reduced to around 7.5 per cent in 2014-15 from 10.4 per
cent in 2013-14 largely because of volatility in raw material
prices. CRISIL believes that MEPL's revenue will register modest
growth over the medium term as it currently has an order book of
INR180 million to be executed over the next 12 months.
MEPL's financial risk profile is marked by a healthy capital
structure, though its net worth is small. It had a gearing of 0.72
times and a net worth of around INR32 million as on
March 31, 2015. The small net worth is due to low accretion to
reserves because of the company's small scale of operations and
modest profitability. The net worth is expected to remain at INR30
million to 50 million over the medium term. Despite this, CRISIL
believes that MEPL's capital structure will remain healthy over
this period due to the absence of term loans. The company's debt
protection metrics are healthy, with net cash accruals to total
debt and interest coverage ratios of 18 per cent and 2.66 times,
respectively, in 2014-15. The metrics are expected to remain
healthy over the medium term.
MEPL has moderate liquidity, supported by the absence of any term
loans. Its bank limits were utilised at an average of 95 per cent
during the 12 months through December 2014. The company is
expected in generate accruals of INR40 million to INR70 million
per annum over the medium term against nil repayment obligations.
CRISIL believes that MEPL's liquidity will remain moderate over
the medium term, backed by stable cash accruals and the absence of
any debt-funded capex plans.
MEPL, incorporated in 1996, derives its revenue from civil
construction. The company's day-to-day operations are managed by
Mr. N Govindaraj.
NACHIKETA COTTON: ICRA Revises Rating on INR6.5cr Cash Loan to B
----------------------------------------------------------------
ICRA has revised the long term rating assigned to INR6.50 crore
cash credit facility of Nachiketa Cotton Private Limited from
[ICRA]B+ to [ICRA]B.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based- Cash 6.50 Revised from [ICRA]B+
Credit to [ICRA]B
The revision in rating factors is the deteriorating financial
profile of Nachiketa Cotton Private Limited's (NCPL) as
characterized by consistent net losses reported in last three
fiscals, weak return indicators and increase in gearing levels
emanating from high utilization of working capital borrowings and
erosion in net worth. The rating also factors in the low value
additive nature of operations and intense competition on account
of the fragmented industry structure, which leads to thin profit
margins. Further, the rating also takes in to account the
vulnerability to adverse movement in agricultural produce prices
as seen from present weak cotton prices following weak global
markets, and reduced imports by China, as well as slow domestic
demand from spinning units.
The rating, however, considers the experience of the key
managerial personnel in the cotton industry and easy availability
of raw material by virtue of its favourable location. The rating
also considers the forward integration in crushing facilities
providing additional revenues and diversification.
The company was incorporated on 9th July 1998 as a private limited
company under name Patel Shah Cotton Private Limited and was
subsequently renamed as Nachiketa Cotton Private Limited in 2003.
The company is engaged in the ginning and pressing of raw cotton
and crushing of cottonseed. The company is managed by a director
Mr. Bipin Thakkar and other managerial personnel. The
manufacturing unit is located in Halvad, Gujarat. It has 27
ginning machines, one pressing machine (semi automatic) and four
expellers with an installed capacity to produce 225 cotton bales,
3MT cottonseed oil and 24MT cottonseed oil cake per day (24 hours
operation). The company is also engaged in trading of cotton
products including raw cotton, arenda and gavar.
Recent Results
During FY15 (unaudited provisional financials), the company
reported an operating income of INR26.83 crore and a net loss of
INR0.23 crore against an operating income of INR23.58 crore and
net loss of INR0.16 crore in FY14.
NATIONAL MINING: CRISIL Reaffirms D Rating on INR80MM Cash Loan
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of National Mining Company
Ltd (NMCL) continue to reflect the deterioration in the company's
business risk profile following the suspension of its operations
in the Namchik-Namphuk coal block.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 5 CRISIL D (Reaffirmed)
Cash Credit 80 CRISIL D (Reaffirmed)
The subsequent non-realisation of payment from Arunachal Pradesh
Mineral Development Corporation Ltd (APMDCL) resulted in
continuously overdrawn cash credit limits. NMCL had successfully
bid for an open tender to extract coal in the Namchik-Namphuk
block in 2007. NMCL did not record any revenue in 2014-15 (refer
to financial year, April 1 to March 31) due to deferment of its
operations, resulting in stretched liquidity.
CRISIL believes that NMCL's liquidity will remain stretched over
the medium term, until the company resumes operations and realises
its receivables.
Moreover, it has a weak financial risk profile, marked by its high
gearing and modest debt protection metrics, and a low scale of
operations. The company, however, benefits from the extensive
industry experience of its promoters.
NMCL undertakes coal mining for APMDCL. Mr. Sanjay Agarwal, Mr.
Bajarang Lal Agarwal, Mr. Ratan Sharma, Mr. Suresh Sharma, and Mr.
Vijay Vyas are NMCL's promoters.
NATWEST ESTATES: CRISIL Reaffirms B+ Rating on INR120.4MM Loan
--------------------------------------------------------------
CRISIL's rating on the bank facilities of Natwest Estates Private
Limited (NEPL) continues to reflect NEPL's modest scale of
operations, below-average financial risk profile (marked by modest
net worth), and susceptibility to risks inherent in the real
estate industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 75 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 120.4 CRISIL B+/Stable (Reaffirmed)
These rating weaknesses are partially offset by NEPL's healthy
track record in the Chennai real estate segment, supported by its
promoters' experience in the industry.
Outlook: Stable
CRISIL believes that NEPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if NEPL reports substantial
cash flows on account of earlier-than-expected completion of
proposed project. Conversely, the outlook may be revised to
'Negative' if NEPL faces delays in project completion or receipt
of payments from customers, or undertakes larger-than-expected,
debt-funded projects, thus weakening its financial risk profile.
Set up in 2001 by Mr. A R Sudhakar and his brother-in-law, Mr. T V
Rama Kumar, the Chennai-based NEPL undertakes residential and
commercial real estate projects.
NAVTEJ INFRASTRUCTURE: CRISIL Rates INR30MM Overdraft Loan at B+
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Navtej Infrastructure Pvt Ltd (NIPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 85 CRISIL A4
Overdraft Facility 30 CRISIL B+/Stable
The ratings reflect NIPL's modest scale and working-capital-
intensive nature of operations, and exposure to intense
competition in the civil construction industry. These rating
strengths are partially offset by the extensive industry
experience of the company's promoters.
Outlook: Stable
CRISIL believes that NIPL will continue to benefit over the medium
term from the industry experience of its promoters. The outlook
may be revised to 'Positive' in case of significant improvement in
the company's scale of operations and profitability, resulting in
a substantial increase in its cash accruals. Conversely, the
outlook may be revised to 'Negative' if NIPL undertakes a
significant debt-funded capital expenditure programme, or fails to
execute its projects on time, or bids aggressively leading to
pressure on its margins.
NIPL was incorporated in 2007 in Hyderabad. The company is a civil
contractor. Its day-to-day operations are managed by Mr. P Ramdev.
For 2014-15 (refers to financial year, April 1 to March 31), NIPL,
on a provisional basis, reported a profit after tax (PAT) of
INR8.92 million on total revenue of INR133.11 million; the company
had reported a PAT of INR3.39 million on total revenue of
INR117.30 million for 2013-14.
NIKHIL AUTOMOBILES: Ind-Ra Assigns 'IND BB+' LT Issuer Rating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Nikhil
Automobiles Limited (NAL) a Long-Term Issuer Rating of 'IND BB+'.
The Outlook is Stable. The agency has also assigned NAL's bank
loans the following ratings:
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term-loans 25.83 IND BB+/Stable
Fund-based working 247.50 IND BB+/Stable
capital limits
KEY RATING DRIVERS
The ratings reflect NAL's moderate scale of operations with
revenue of INR888.72m, according to the provisional financials for
FY15. The ratings are constrained by NAL's moderate credit profile
with net financial leverage of 5.7x in FY15 (FY14: 7.0x) and
EBITDA margins of 4.67% (3.28%).
The ratings, however, benefit from NAL's promoter's over a decade-
long experience in the automotive dealership business. The ratings
are also supported by the company's established relationship with
Chevrolet Sales India Pvt. Ltd. (a subsidiary of General Motors
India Pvt. Ltd.).
NAL's liquidity is comfortable as evident from its 86.43% average
working capital use over the 12 months ended June 2015.
RATING SENSITIVITIES
Positive: A substantial rise in the revenue along with a sustained
improvement in the overall credit metrics will be positive for the
ratings.
Negative: Any deterioration in the overall credit metrics will be
negative for the ratings.
Incorporated in 2007, NAL is an authorised dealer of Chevrolet
Sales India.
The company is engaged in the business of automobile dealership of
Chevrolet range of passenger cars in Mumbai, Maharashtra. NAL is
promoted by Mumbai-based Sumit Gupta and his family. The company
operates three showrooms and four workshops in and around the
region.
OM SUGARS: CARE Assigns 'B' Rating to INR25cr LT Bank Loan
----------------------------------------------------------
CARE assigns 'CARE B' rating to the bank facilities of Om Sugars
Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 25 CARE B Assigned
Rating Rationale
The rating assigned to the bank facilities of Om Sugars Limited
(OSL) is constrained on account of its highly leveraged capital
structure and the losses incurred during FY15 (refers to the
period April 1 to March 31) being the first year of operations.
The rating is further constrained by the risk related to the
stabilization of the operations and its presence in the highly
cyclical and seasonal sugar industry coupled with the working
capital intensive nature of operations.
The rating, however, derives strength from the resourceful
promoters and experienced second-tier management team coupled with
the strategic location of the project in a sufficient sugarcane
availability area with partially-integrated manufacturing
facilities.
The ability of the company to stabilize its operations, procure
adequate sugarcane to satiate its crushing capacity and operate
for the season of greater duration are the key rating
sensitivities. Besides, increase in the scale of operations
coupled with efficient management of working capital is crucial
from a credit perspective.
OSL was incorporated in August 2009, as a private limited company,
thereafter the constitution of the firm was changed to a public
limited company in October 2011. The company has set up partially
integrated manufacturing facility for processing sugarcane to
produce white crystal sugar with a crushing capacity of 2,500
tones of cane crushed per day (TCD) with FY14-15 being the first
crushing season for OSL. In addition, the company also has a co-
generation unit of 4 Mega-watt (MW) for captive consumption. The
manufacturing facilities of the company are located at Jainapur,
Chikkodi Taluka in Belgaum District of Karnataka.
The total cost of the setting up the sugar mill is INR67.51 crore
funded through the term debt of INR42 crore, equity of INR9.47
crore, interest free unsecured loans of INR12.91 crore and balance
INR3.13 crore funded by creditors as on March 31, 2015. The parts
of the plant and the machineries required in the manufacturing
set-up have been purchased from Bannari Amman Sugar Limited (rated
'CARE AA-/CARE A1+').
The plant achieved commercial operations from November 02, 2014
with sugar season (SS) 2014-2015 being the first sugar season for
OSL and crushed 1.07 lakh metric tonne (MT) of sugar cane,
producing sugar to the tune of 9923 MT at an implied recovery of
9.30%.
PARANJAPE AGRO: CRISIL Assigns 'B+' Rating to INR125MM Bank Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facility of Paranjape Agro Products (India) Pvt Ltd (PAPPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 125 CRISIL B+/Stable
The rating reflects the company's initial phase and modest scale
of operations in an intensely competitive cashew industry and
below-average financial risk profile, marked by small net worth
and a weak capital structure. These rating weaknesses are
partially offset by the benefits that PAPPL derives from the
promoters' experience in the industry and their established
relationship with suppliers and customers.
Outlook: Stable
CRISIL believes that PAPPL will continue to benefit over the
medium term from its promoters' experience in the cashew-
processing industry. The outlook maybe revised to 'Positive' if
the company reports considerable improvement in its revenue and
cash accruals while efficiently managing its working capital
cycle. Conversely, the outlook will turn 'Negative' in case of low
cash accruals due to lower revenue and weak profitability or a
stretched working capital cycle, resulting in deterioration in its
financial risk profile, particularly liquidity.
Incorporated in 2010, PAPPL processes raw cashew nuts and sells
cashew kernels under its Paranjape Cashews brand. The company has
a manufacturing facility in Ratnagiri (Maharashtra) with installed
capacity of 10 tonnes per day. The company is promoted by Mr.
Hrushikesh Paranjape and his wife Mrs. Samruddhi H Paranjape.
PAREKH ALUMINEX: CRISIL Reaffirms 'D' Rating on INR8.5BB Loan
-------------------------------------------------------------
CRISIL's ratings on the bank loan facilities and non-convertible
debentures of Parekh Aluminex Ltd (PAL) continue to reflect delays
by PAL in debt servicing; the delays were due to the company's
weak liquidity, driven by suboptimal capacity utilisation levels
and large working capital requirements. The company's efforts to
resolve its cash flow mismatches have not fructified since the
demise of the then chairman and managing director, Mr. Amitabh
Arun Parekh, in January 2013; he was the key management person
supervising the company's operations.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 3450 CRISIL D (Reaffirmed)
Letter of Credit 550 CRISIL D (Reaffirmed)
Letter of credit & 900 CRISIL D (Reaffirmed)
Bank Guarantee
Proposed Long Term 8550 CRISIL D (Reaffirmed)
Bank Loan Facility
PAL, incorporated in 1994, manufactures aluminium foil containers
(AFC), lids, covers, and allied products, used in packaging food
items. PAL's manufacturing units are in Dadra and Nagar Haveli. In
2005, PAL acquired a Singapore-based company to enter the
Southeast Asian markets. In 2008, PAL's manufacturing units
acquired export-oriented-unit status. PAL entered the retail space
with two brands, PAL and ME Foil, in 2010-11 (refers to financial
year, April 1 to March 31). The company has production capacities
of 6,880 million pieces of AFC, 39.6 million pieces of aluminium
foil roll, and 1,790 million pieces of aluminium foil lids per
annum.
PAL reported a loss of INR3.8 billion on net sales of INR10.9
billion for 2012-13, against a profit after tax of INR846.6
million on net sales of INR13.7 billion for 2011-12. For the
quarter ending on June 30, 2013, PAL reported a loss of INR864.2
million on net sales of INR518.4 million, compared to a net profit
of INR291.5 million on net sales of INR4.89 billion for 2012-13.
The company has not released financials since June 2013.
PRANAV CONSTRUCTION: CRISIL Assigns B- Rating to INR214.9MM Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to
the bank facilities of Pranav Construction Systems Pvt Ltd
(PCSPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Working Capital
Term Loan 214.9 CRISIL B-/Stable
Letter of Credit 30.0 CRISIL A4
Funded Interest
Term Loan 60.8 CRISIL B-/Stable
Export Packing
Credit 66.3 CRISIL B-/Stable
Bank Guarantee 162.2 CRISIL A4
Cash Credit 191.1 CRISIL B-/Stable
The ratings reflects PCSPL's weak financial risk profile, marked
by weak debt protection metrics driven by depressed profitability,
and highly working-capital-intensive operations, and stretched
liquidity. The ratings also factor in the company's modest scale
of operations, and exposure to volatility in profitability
margins, raw material prices, and forex rates. These rating
weaknesses are partially offset by the extensive experience of the
promoters in the construction industry, and PCSPL's established
clientele and recently restructured debt, alleviating immediate
liquidity concerns.
Outlook: Stable
CRISIL believes that PCSPL will continue to benefit from the
extensive industry experience of the promoters and its established
presence. The outlook may be revised to 'Positive' if significant
and sustained improvement in revenue and profitability, and
correction in working capital management leads to higher cash
accruals. The outlook may be revised to 'Negative' if low cash
accruals, stretched working capital cycle, or any large capital
expenditure weakens the financial risk profile, particularly
liquidity.
Incorporated in 2003, PCSPL provides formwork, false work and
scaffolding which find application in construction/infrastructure
sector. The company has been set up by Mr. Sushil Sahani and its
manufacturing facilities are located at Kopar-Khairane and
Badlapur (both in Maharashtra).
PRIYANKA CONSTRUCTIONS: CRISIL Ups Rating on INR60MM Loan to B+
---------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Priyanka Constructions (Baroda) Pvt Ltd (PCBPL) to 'CRISIL
B+/Stable' from 'CRISIL B/Stable', while reaffirming its rating on
the company's short-term facility at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 100 CRISIL A4 (Reaffirmed)
Cash Credit 60 CRISIL B+/Stable (Upgraded from
'CRISIL B/Stable')
Proposed Long Term 40 CRISIL B+/Stable (Upgraded from
Bank Loan Facility 'CRISIL B/Stable')
Proposed Term Loan 40 CRISIL B+/Stable (Upgraded from
'CRISIL B/Stable')
The rating upgrade reflects CRISIL's belief that PCBPL's business
risk profile will improve over the medium term while its financial
risk profile remains moderate. The company's turnover increased by
40 per cent to around INR219 million in 2014-15 (refers to
financial year, April 1 to March 31), from INR157 million in 2013-
14. Meanwhile, its profitability declined to around 7.5 per cent
from 11 per cent during the same period; this was due to higher
focus on tender-based turnkey projects in 2014-15, compared to
jobwork orders executed in the previous two years. PCBPL's
financial risk profile remains moderate, marked by moderate
capital structure and debt protection metrics. The company's
gearing is expected to remain moderate at 1.3 times with expected
net worth of over INR50 million, as on March 31, 2016. PCBPL is
expected to generate average cash accruals of around INR10 million
in 2015-16; however, it has no major term debt obligations during
the same period.
The ratings reflect PCBPL's modest scale of operations in the
highly fragmented civil construction industry, and its working-
capital-intensive operations. These rating weaknesses are
partially offset by the extensive industry experience of the
company's promoter.
Outlook: Stable
CRISIL believes that PCBPL will continue to benefit over the
medium term from its promoter's extensive industry experience. The
outlook may be revised to 'Positive' if the company significantly
improves its scale of operations and profitability, leading to
substantial cash accruals, or its promoter infuse large equity,
leading to a better financial risk profile. Conversely, the
outlook may be revised to 'Negative' if PCBPL's topline or
operating margin declines, or its financial risk profile weakens,
most likely because of a large debt-funded capital expenditure, or
its working capital cycle increases, thereby constraining its
liquidity.
Established in 1996 as a partnership firm, PCBPL was reconstituted
as a private limited company in 2002. It is promoted by the
Vadodara (Gujarat)-based Mr. Utkarsh Mehta. The company undertakes
civil contract works, mainly building construction and industrial
civil works.
PUNJ LLOYD: CARE Lowers Rating on INR300cr NCD III to 'D'
---------------------------------------------------------
CARE revises the ratings assigned to the NCDS of Punj Lloyd Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non-Convertible 150 CARE D Revised from
Debenture I CARE BB
Non-Convertible 300 CARE D Revised from
Debenture III CARE BB
Rating Rationale
The revision in the rating of Non-convertible debenture (I and
III) issues of Punj Lloyd Ltd (PLL) takes into account delay in
servicing of debt obligations of the said instruments by the
company due to its weak liquidity position.
The rating for NCD IV has been withdrawn as the company has not
placed the said NCDs and there is no amount outstanding under the
issue as on date.
Punj Lloyd Ltd (PLL), promoted by Mr Atul Punj in 1988, is one of
the leading engineering & construction companies in India,
providing integrated design, engineering, procurement,
construction (EPC) and project management services for oil
& gas, process industry and infrastructure sector projects. PLL
has various subsidiaries operating in multiple geographies
and engaged in EPC in the field of oil and gas and infrastructure
sector. The company's consolidated order book as on May 22, 2015
stood at INR21,152 crore (unexecuted orders as on March 31, 2015
plus new orders received after that).
With slower order inflows and relatively slower execution,
operating income of the company declined both on the
standalone and consolidated level in FY15 (refers to the period
April 1 to March 31). In Q4FY15 the company sold its entire
shareholding in Global Health Pvt Ltd (Medanta Hospital) and there
was a resultant gain of INR540.28 crore. Despite this, decline in
operating income and increase in interest cost resulted in net
loss in FY15.
For FY15, PLL (standalone) reported net loss of INR506.66 crore on
a total operating income of INR5067.46 crore as compared to PAT of
INR7.81 crore on total operating income of INR8485.70 crore in
FY14. On a consolidated basis, PLL registered total operating
income of INR7252.35 crore with net loss of INR1150.95 crore in
FY15 compared to operating income of INR11116.18 crore and net
loss of INR636.62 crore in FY14. On account of deterioration in
the financial performance, the liquidity position of the company
has been impacted, leading to delays in debt servicing by the
company.
SALONI JEWELLERS: ICRA Lowers Rating on INR125cr Cash Loan to 'D'
-----------------------------------------------------------------
ICRA has revised the long term rating assigned to the INR125 crore
fund based facilities and INR60 crore unallocated amount of Saloni
Jewellers Private Limited to [ICRA]D from [ICRA]BBB-.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Fund based-
Cash Credit 125.00 Revised to [ICRA]D
from [ICRA]BBB-(Stable)
Long Term Fund based-
Metal Gold Loan (40.00) Revised to [ICRA]D
from [ICRA]BBB-(Stable)
Sub-limit against SIP (50.00) Revised to [ICRA]D from
[ICRA]BBB-(Stable)
Long Term Non Fund
based - Bank Guarantee (40.00) Revised to [ICRA]D from
[ICRA]BBB-(Stable)
Unallocated Amount 60.00 Revised to [ICRA]D from
[ICRA]BBB-(Stable)
The rating revision takes into account the irregularity in debt
servicing and overdrawals from the cash credit account over the
last few months.
The rating also continues to remain constrained by intensely
competitive and fragmented nature of the jewellery industry; low
profitability and accruals given the limited value addition in the
business and consequently leveraged capital structure. The rating
also factors in the price risk that the company is exposed to
given the volatility in gold prices and limited operational
flexibility due to absence of in-house manufacturing facility.
Incorporated in 2002, Saloni Jewellers Private Limited (SJPL) is a
private limited company founded by Mr. Kiran Jain and Mr. Jitendra
Jain. The company is engaged in the business of gold jewellery
which includes earrings, bangles, bracelets, chains and anklets.
The company has five group concerns -- Ruchita Gold Private
Limited, Shuddhi Jewellers Private Limited, Space Gold Private
Limited, Yellow Jewels Private Limited and Aansa Gold Private
Limited which are engaged in similar lines of Business. The
Company has its registered office at Zaveri Bazaar, Mumbai and one
marketing office in Ahmedabad, Gujarat.
Recent Results
SJPL recorded a net profit of INR6.83 crore on an operating income
of INR1192.51 crore for the year ending March 31, 2014.
SALTEE BUILDCON: Ind-Ra Assigns 'IND BB' Long-Term Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Saltee Buildcon
Pvt Ltd (SBPL) a Long-Term Issuer Rating of 'IND BB'. The Outlook
is Stable. The agency has also assigned SBPL's INR72.50m long-term
loan an 'IND BB' rating with Stable Outlook.
KEY RATING DRIVERS
The ratings reflect the time and cost overrun risk for SBPL's on-
going studio apartment residential project, as only 39.18%
construction has been completed. The project is likely to be
completed by March 2017. The ratings also consider the fact that
the company received bookings for only 36.36% of the total
saleable flats till June 2015.
The ratings, however, benefit from the promoter's extensive
experience of two decades in constructing several residential and
commercial projects in and around Kolkata.
RATING SENSITIVITIES
Positive: The timely completion of the project and the sale of a
substantial number of housing units leading to a strong cash flow
visibility will be positive for the ratings.
Negative: Any slowing down of flat booking leading to a cash flow
shortfall will be negative for the ratings.
SBPL, established in 2007, is coming up with studio apartment
housing project in Rajarhat, Kolkata. The project constitutes of
154 units of residential studio apartments. 22 single room units
will not be sold and be retained by the promoter for a time share
agreement with any major hospitality giant.
SARVODYA HOSPITAL: CRISIL Reaffirms D Rating on INR190MM Loan
-------------------------------------------------------------
CRISIL's rating on the long-term bank facility of Sarvodya
Hospital (SH) continues to reflect delays by SH in payment of
interest on its term debt; the delays have been on account of the
hospital's weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 190 CRISIL D (Reaffirmed)
SH is also exposed to project-related risks and it has a limited
track record of operations in the medical services industry.
However, the hospital benefits from the extensive experience of
its promoters in the healthcare sector.
Update
SH is in the process of constructing a 110-bed multi-speciality
hospital in Jalandhar (Punjab). The project cost is around INR330
million, funded by a term loan of around INR190 million and the
remaining by own funds. There has been some delay in the
construction and the hospital is now expected to commence
operations from December 2015. Due to the ongoing construction,
SH's liquidity is constrained, leading to delay in interest
payments on its term loan. The interest for March and April 2015
was delayed by seven days and the interest for May 2015 had been
delayed by at least twelve days. The principal payments are yet to
start.
Additionally, SH will be exposed to offtake risks after
commencement of operations due to competition from other
established nursing homes and hospitals in the area. These risks
are partially offset by the qualified and experienced
professionals involved in setting up the hospital. These doctors
have significant experience in their respective domains. An
established and reputed team of professionals will enable the
hospital to establish its position in the highly fragmented
medical services segment. The timely commencement of operations
and the level of occupancy will remain key rating sensitivity
factors over the medium term.
SH, established in 2011, is constructing a 110-bed multi-
speciality hospital with departments such as cardiology,
neurology, and urology, at Jalandhar.
SHALIMAR INDUSTRIES: Ind-Ra Withdraws 'IND BB-' LT Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Shalimar
Industries Ltd.'s (SIL) 'IND BB-' Long-Term Issuer Rating with a
Stable Outlook.
The ratings have been withdrawn due to a reduction in the
specified bank limits, thus not requiring any external rating.
Ind-Ra will no longer provide ratings or analytical coverage for
SIL.
SIL's ratings are as follows:
-- Long-Term Issuer Rating: 'IND BB-'; rating withdrawn
-- INR53 million fund-based limits: 'IND BB-'; rating withdrawn
-- INR17 million non-fund-based limits: 'IND A4+'; rating
Withdrawn
SHREE NAVKAR: ICRA Assigns B+ Rating to INR8.50cr Fund Based Loan
-----------------------------------------------------------------
ICRA has assigned its long term rating of [ICRA] B+ to the INR8.50
crore long term fund based limits of Shree Navkar Tex Creations.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits 8.50 [ICRA]B+; assigned
ICRA's rating is constrained by SNTC's substantial working capital
requirement on account of high inventory requirement and credit
period offered to customers, which keeps the firm dependent on
debt in absence of sizeable internal accruals or capital infusion,
this results in an elevated TOL/TNW ratio. The firm's liquidity
also remains under pressure as reflected in the high utilization
of bank limits and frequent utilization of ad hoc limits. ICRA
also takes into account the firm's modest scale of operations and
the risks associated with the proprietorship nature of the firm
like withdrawal of capital, risk of dissolution etc. However, the
rating favorably factors in the proprietor's experience in the
textile trading business and SNTC's healthy revenue growth since
commencement of business.
Going forward, SNTC's ability to grow volumes and improve its
liquidity position will be the key rating sensitivities. ICRA
notes that the firm is planning to set up its processing
facilities in the current year, the impact of the same on the
firm's capital structure and profitability will be a key
monitorable.
SNTC is a proprietorship firm based in Pali, Rajasthan which was
incorporated in 2008 and is managed by second generation
entrepreneur Mr. Kalpesh Bhandari. The firm is a part of the Pali
based ISON group which has interests in real estate development,
apart from textile trading. The firm is engaged in trading of
'rubia', a fabric which is primarily used in blouses for women and
as an inner lining in dresses. The firm procures grey fabric from
'mandis' in Rajasthan and Maharashtra and gets it processed on an
outsourced basis in Pali, which is a hub for textile processing.
The firm sells its fabric to wholesalers across the country
through agents on a commission basis.
Recent results
In FY 2014, SNTC generated a PAT of INR1.52 crore on an Operating
Income (OI) of INR33.1 crore, as compared to a PAT of INR0.24
crore on an OI of INR27.1 crore in the previous year. In FY2015,
the firm, on a provisional basis, achieved an OI of INR37.1 crore.
SHREE SHIVAM: ICRA Reaffirms 'B' Rating on INR4cr Cash Credit
-------------------------------------------------------------
ICRA has reaffirmed the long term rating of [ICRA]B to the INR4.00
crore fund based cash credit facility and to INR0.98 crore
(reduced from INR1.23 crore) term loan facility of Shree Shivam
Cotton Industries.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 4.00 [ICRA]B; reaffirmed
Proposed Limits 0.98 [ICRA]B; reaffirmed
The rating continues to be constrained by Shree Shivam Cotton
Industry's (SSCI)'s modest scale of operation and its weak
financial profile as reflected by the adverse capital structure
along with weak debt coverage indicators and a stretched liquidity
position. The rating also factors in the low value additive nature
of operations and intense competition on account of the fragmented
industry structure, which leads to thin profit margins. Further,
the rating also takes in to account the vulnerability to adverse
movement in agricultural produce prices which are subject to
seasonality and crop harvest. Further, SSCI being a partnership
firm, any significant withdrawals from the capital account would
affect its net worth adversely.
The rating, however, positively considers the experience of the
partners in the cotton industry and easy availability of raw
material by virtue of its favorable location.
Incorporated in 2012, Shree Shivam Cotton Industries is engaged in
cotton ginning, pressing and cotton seed crushing facility with 24
ginning machines and 4 crushing machines having installed capacity
of producing 200 cotton bales and crushing 30 MT of cotton seed
per day. In July 2014, SSCI was reconstituted and is currently
managed by Mr. Chandu Bediya along with six other partner The
firm's plant is located in Rajkot (Gujarat).
Recent Results
For the year ended 31st March, 14, SSCI reported an operating
income of INR19.60 crore and profit after tax of INR0.05 crore.
SIMOCO TELECOMMUNICATIONS: ICRA Rates INR38cr Cash Loan at 'D'
---------------------------------------------------------------
ICRA has assigned a long term rating of [ICRA]D to the INR38.00
crore cash credit facility, INR7.03 crore term loan and INR2.57
crore non-fund based facilities of Simoco Telecommunications
(South Asia) Limited. The above non-fund based facilities of
INR2.57 crore has also been rated on a short term scale for which
[ICRA]D rating has been assigned.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 38.00 [ICRA]D assigned
Term Loan 7.03 [ICRA]D assigned
Non-fund based
Facilities 2.57 [ICRA]D assigned
The assigned rating primarily takes into account STL's stretched
liquidity position resulting in continuous overutilization of the
working capital facility. The rating also takes into account the
significant decline in operating income during FY2014 on the back
of decreased offtake of its product and a weak financial risk
profile of the company characterised by operating loss, adverse
interest coverage indicator and aggressive gearing of around 1.75
time during FY2014. ICRA also note that the company is primarily
into manufacturing of wireless equipment, mobile phones, computer
parts and accessories, which has high risk of product obsolescence
due to highly competitive and innovative nature of the industry,
leading to pressure on the profitability and product offtake. The
rating, however, derives comfort from long track record of the
promoter in the telecommunications equipment industry and the
company's recent venture into solar and LED products which is
expected to contribute significantly to the revenue going forward.
STL, incorporated in April 1979, is primarily engaged in the
trading and manufacturing of wireless equipment, mobile phones,
computer parts and accessories, software solutions, surveillance
system and solar products. Recently, the company has also ventured
into solar products and LED products to diversify its existing
product portfolio. The company was taken over by Mr. Sanjoy Kumar
Ghosh, Managing Director, from Simoco International Limited, U.K.,
in the year 2001.
Recent Results
STL registered a net loss of INR13.52 crore on an operating income
of INR81.31 crore in FY14, as compared to a profit after tax of
INR0.06 crore on an operating income of INR131.02 crore in FY13.
SM JDB: CARE Reaffirms 'B+' Rating on INR50.64cr LT Loan
--------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
SM JDB Estate Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 50.64 CARE B+ Reaffirmed
Rating Rationale
The rating continues to be constrained by promoter's lack of
experience in the hospitality business, project implementation
risk, expected competition from existing and new supply of high-
end hospitality projects in Guwahati and inherent cyclicality &
seasonality associated with the hotel industry. The rating,
however, continues to draw strength from long business experience
of the promoters, strategic location of proposed hotel, management
agreement with Novotel brand. The ability of the company to
complete the proposed project as per the revised schedule without
any further cost & time overrun, operate at the envisaged
occupancy & tariff rate and timely receipt of lease rentals for
the commercial space would be the key rating sensitivity.
SMJDB Estate Pvt Ltd (SMJDB) was incorporated in October 2012 by
SM group and JDB group of Guwahati to develop a 129-bed 4-star
hotel cum shopping mall of 1,583 sq. mt. at Guwahati, Assam at a
cost of INR98.78 crore (revised from earlier estimated cost of
INR88.8 crore due to delay in project implementation and cost-push
inflation). The project is now expected to be operation from
February 2016 (revised from envisaged timeline of July 2015). The
project is being funded at a debt-equity ratio of 1.48x. The
financial closure for earlier estimated project cost of INR88.8
crore has been achieved.
For the cost overrun of INR9.98 crore, the company plans to infuse
equity of INR7.64 crore and approached its bankers to enhance the
debt amount by INR2.34 crore. Till May 18, 2015, the company has
spent INR46.14 crore on the project (representing 46.71% of the
total project cost), being funded through equity of INR21.33 crore
and debt of INR25.22 crore.
SPS EDUCATIONAL: CARE Reaffirms B+ Rating on INR25.25cr LT Loan
---------------------------------------------------------------
CARE reaffirms 'CARE B+' rating to the bank facilities of SPS
Educational Trust.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 25.25 CARE B+ Reaffirmed
Rating Rationale
The rating assigned to the bank facilities of SPS Educational
Trust (SPS) continues to be constrained primarily on account of
its short operational track record and modest enrollment ratio
coupled with modest liquidity position and risk associated with
the on-going debt-funded capex undertaken by the trust. The rating
is further constrained on account of competition from the existing
schools in vicinity and presence in the highly regulated industry.
The rating, however, derives strength from the wide experience of
the promoters in the education industry.
The rating further factors in the financial risk profile marked by
consistent increase in total operating income (TOI) and
profitability during the past 3 years ended FY15 (refers to the
period April 1 to March 31) along with moderately leveraged
capital structure and moderate debt coverage indicators.
The ability of SSP to increase its enrollment ratio and income
while maintaining profit margins along with successful completion
of the ongoing debt funded project and improvement in capital
structure is the key rating sensitivity.
Palwal-based (Haryana), SPS Educational Trust (SPS) was
established in the year 2010 by Mr Sureshchandra Bharadwaj, Mrs
Sunita Bhardwaj, Mr Shyam Sunder, Mr Brijesh Kumar and Ram Kumar
Gupta with the object of setting up educational institutions. SPS
is running a school in the name of SPS International at Palwal
(Haryana) since August, 2011.
The school is affiliated to the Central Board of Secondary
Education (CBSE) and offers education from Kindergarten to class
XII. The school is spread across the area of 5.25 acres and it has
all the state of the art facilities like computer labs, library,
smart classes, various sports facilities and swimming pool etc.
As per the provisional results for FY15, SPS reported a surplus of
INR2.49 crore on a total operating income (TOI) of INR12.60 crore
as against deficit of INR1.13 crore on a TOI of INR8.23 crore
during FY14.
SRI LAKSHMI: ICRA Suspends 'B' Rating on INR13cr LT Loan
--------------------------------------------------------
ICRA has suspended the long term rating of [ICRA]B assigned to
INR13.00 crore (including unallocated limit of INR4.19 crore) long
term fund based limits of Sri Lakshmi Ganapathi Surya Teja Modern
Rice Mill. The suspension follows ICRA's inability to carry out a
rating surveillance in the absence of the requisite information
from the company.
Sri Lakshmi Ganapathi Surya Teja Modern Rice Mill is established
as a partnership firm in October' 2010 by Mr. J Gowtham Kumar. The
firm is engaged in the milling of paddy with an installed capacity
of 36500 MT per annum to produce raw and boiled rice. The milling
unit is located at Bhaggeswaram in West Godavari District of
Andhra Pradesh.
SRINIVASA RICE: ICRA Assigns 'B' Rating to INR9.65cr LT Loan
------------------------------------------------------------
ICRA has assigned the long term rating of [ICRA]B to the INR9.65
Crore fund based limits and [ICRA]B/A4 to the INR0.83 Crore non-
fund based limits of Srinivasa Rice Industries.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Fund
based Limits 9.65 [ICRA]B; Assigned
Long term/Short
Term-Non fund
Based limits 0.83 [ICRA]B/ [ICRA]A4; Assigned
Rating Rationale
The assigned ratings are constrained by the small scale of
operations and the weak financial profile of the firm
characterised by low profitability, high gearing and moderate debt
coverage indicators. The ratings also factor in the highly
fragmented and competitive nature of the industry which limits the
ability of the firm to pass on any increases in input costs. ICRA
notes that the performance of the industry is dependent on the
procurement policy of Food Corporation of India, the government's
policy on minimum support price (MSP) of paddy, export, and open
market sales, and also the agro-climatic risks which affect the
availability of paddy. ICRA has taken into account the reduction
in FCI levy percentage in October 2014 from 75% to 25% which has
resulted in increased availability of rice in the open market
pushing down the realisations. The rating is also constrained by
the high working capital utilisation levels of the company, and
the risks associated with the partnership structure of the firm.
The rating, however, favourably factors in experience of the
promoters in the rice milling industry and the presence of the
milling facility in a major rice growing region of Andhra Pradesh
(Gurajala, Guntur District).
Going forward, the ability of the firm to improve its sales and
maintain profitability remains key rating sensitivities for the
firm.
Srinivasa Rice Industries is a partnership firm established in
2011, engaged in the milling of paddy for the production of non-
basmati rice products (raw rice & boiled rice).The firm started
its operations in December 2013. The milling unit is located in
Guntur District of Andhra Pradesh with an installed capacity of
70000 MTPA. The firm was sold to new management in August 2014;
the current promoters -- Gudipati Srinivas and Gudipati Lingaiah -
- have longstanding experience in the industry through their
association with other companies. The firm under the new
management started operations in Nov'14. The firm also runs an in-
house 0.5 MW captive power plant, with the husk generated in the
process of milling paddy being used as a fuel.
SURFACE GRAPHICS: CRISIL Cuts Rating on INR77.1MM Loan to 'D'
-------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Surface Graphics Pvt Ltd (SGPL) to 'CRISIL D/CRISIL D' from
'CRISIL BB/Stable/CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 2 CRISIL D (Downgraded from
'CRISIL A4+')
Cash Credit 35 CRISIL D (Downgraded from
'CRISIL BB/Stable')
Proposed Long Term 7 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL BB/Stable')
Term Loan 77.1 CRISIL D (Downgraded from
'CRISIL BB/Stable')
Working Capital
Term Loan 38.9 CRISIL D (Downgraded from
'CRISIL BB/Stable')
The rating downgrade reflects instances of delay by SGPL in
servicing its term debt; the delays have been caused by the
company's weak liquidity on account of large loss in its business
in 2014-15 (refers to financial year, April 1 to March 31).
SGPL also has large working capital requirements and a weak
financial risk profile on account of the loss. However, the
company benefits from its promoters' extensive experience in the
packaging industry.
SGPL, established in 1989 in Mumbai, manufactures mono cartons
used in packaging. The company is promoted by Mr. H Shetty, his
brother Mr. S Shetty and Mr. Shridhar Hegde.
SVN AGRO: CRISIL Reaffirms 'B' Rating on INR45MM Cash Loan
----------------------------------------------------------
CRISIL's ratings on the bank facilities of SVN Agro Refineries
(SVN) continue to reflect SVN's below-average financial risk
profile marked by subdued debt protection metrics and
susceptibility of its operating margin to volatility in raw
material prices and foreign exchange (forex) rate.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 45 CRISIL B/Stable (Reaffirmed)
Letter of Credit 300 CRISIL A4 (Reaffirmed)
Proposed Long Term 5 CRISIL B/Stable (Reaffirmed)
Bank Loan Facility
These rating weaknesses are partially offset by its promoters'
extensive experience in the edible oil segment.
Outlook: Stable
CRISIL believes that SVN will continue to benefit over the medium
term from its promoters' extensive experience in the industry. The
outlook may be revised to 'Positive' if the firm achieves
significant improvement in cash accruals, driven by increase in
the operating profitability, resulting in better financial risk
profile. Conversely, the outlook may be revised to 'Negative' if
SVN's revenue or operating margin is lower-than-expected, or its
working capital cycle deteriorates, or the firm undertakes any
large debt-funded capital expenditure programme or its promoters
withdraw large capital, thus weakening its capital structure.
Set up in 2000 and based in Vengaivasal (Tamil Nadu), SVN refines
sunflower oil and trades in RBD palmolein oil. The firm is
promoted by Mr. S V Natesan and his family; the day-to-day
operations of the company are being managed by Mr. S V N Ravi
Varma.
SVN reported a net profit of INR1.8 million on sales of INR508.9
million for 2013-14 (refers to financial year, April 1 to March
31), against a net profit of INR0.15 million on sales of INR574.5
million for 2012-13.
SWARGIYA BHIKAM: Ind-Ra Hikes INR74.28MM Loan Rating to 'IND BB'
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Swargiya Bhikam
Singh Smriti Samaj Kalyan Sansthan's (SBSKS) INR74.28 million bank
loans (increased from INR55.41 million) to 'IND BB' from 'IND BB-'
with a Stable Outlook.
KEY RATING DRIVERS
The upgrade reflects a significant improvement in the society's
cash flow to cover debt service to 2.32x in FY14 from 0.39x in
FY13. The society's current balance before interest and
depreciation (CBBID) debt service coverage ratio (DSCR) also
improved to 1.20x in FY14 from 0.81x in FY13 on increased CBBID to
INR16.41m (468.61% yoy).
The rating is also underpinned by the improvement in the society's
operating margins to 70.09% in FY14 from 54.82% in FY13 on
increased hospital receipts (380% yoy). An increase in the
society's hospital's beds to 100 (fully operations since January
2013) resulted in higher receipts from hospitals. According to
SBSKS' capex plan, the number of hospital beds further increased
to 350 (fully operations since January 2015). Although this will
enhance the scale of operations, the additional pressure on the
staff and operations costs will downslide the operating margins.
The society's diversified revenue profile also supports the
rating. Hospital receipts were the key element to the total income
and contributed nearly 62% to the society's total income in FY14.
Tuition fee contribution was nearly 28% of the total income in
FY14. Income grew 344.74% yoy to INR23.41m in FY14 mainly on
increased hospital receipts. A 41.73% yoy rise in students'
headcount to 197 in FY14 resulted in tuition fee income increasing
192.59% yoy to INR6.49m.
Although the society's debt increased 26.62% yoy to INR77.25m in
FY14, its debt in relation to income and debt/CBBID declined to
330.01% (FY13: 1,159.09%) and 4.71x (21.14x), respectively. A
significant increase in income (344.74% yoy) and CBBID (468.61%
yoy) resulted in improved leverage ratios. Ind-Ra believes debt
burden will fall further due to the absence of any major capex
plan in the next three to four years.
The institutes' capacity use rate increased to 40.20% in FY14 and
48.68% in FY15 (FY13: XX) as it accepted nearly 90 and 96
applications per 100 applications. This indicates limited demand
flexibility available for the society.
The society's income (operating and non-operating) grew to
INR23.41m in FY14 from INR0.35m in FY11 (CAGR: 306.20%); however,
its small scale and five years of limited track record of
operations constrain the rating.
SBSKS' available funds - cash and unrestricted investments -
increased to INR2.06m (151.44% yoy); however, it did not provide
adequate cushion to financial leverage. Available fund cover to
total debt was 2.66% in FY14 (FY13: 1.34%).
RATING SENSITIVITIES
Positive: A sustained improvement in the society's capacity
utilisation, both for college and hospital, and an increase in its
scale of operation leading to an improvement in its liquidity
profile in conjunction with a further improvement in debt/CBBID
could trigger a positive rating action.
Negative: Any unexpected fall in student demand and income from
hospital along with a quantum jump in debt resulting in
deterioration in coverage ratios could trigger a negative rating
action.
COMPANY PROFILE
SBSKS was established in 1998 under the Societies Registration
act, 1973 in Gwalior. It manages two colleges and offers nursing,
computer application and business administration courses. The
society established Shri Ram Singh Dhakre Memorial Hospital and
Research Centre in Gwalior to offer medical courses which was
likely to start from the academic year 2016 (extended to academic
year 2019) for which the society has 350-bed hospital facilities.
TOMAR CONSTRUCTION: Ind-Ra Assigns 'IND BB-' LT Issuer Rating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Tomar
Construction Company (TCC) a Long-Term Issuer Rating of 'IND BB-'.
The Outlook is Stable. The agency has also assigned TCC's bank
loans the following ratings:
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Fund-based 30 Long-Term 'IND BB-'/Stable
Limits and Short-Term 'IND A4+'
Non-fund-based 180 Short-Term 'IND A4+'
limits
Proposed term 60 Long-Term 'Provisional
loan IND BB-'/Stable
KEY RATING DRIVERS
The ratings reflect TCC's modest scale of operations with revenue
of INR370.62m according to the provisional financials for FY15
(FY14: INR412.38m). The ratings are constrained by the firm's
stressed liquidity position as evident from the almost-full
average cash credit utilisation during the 12 months ended May
2015. TCC's partnership structure also constrains the ratings.
The ratings are supported by over-a-decade-long experience of
TCC's promoters in civil construction works. The ratings are
further supported by satisfactory EBITDA margins of 8.44% in FY15
(FY14: 4.93%). The ratings also factor in TCC's moderate credit
metrics with interest coverage (operating EBITDA/gross interest
expense) of 2.14x in FY15 (FY14: 1.56x) and financial leverage
(total adjusted net debt/operating EBITDAR) of 1.19x (5.23x).
RATING SENSITIVITIES
Negative: A decline in the revenue due to lack of work orders or
deterioration in the EBITDA margins leading to weaker credit
metrics will be negative for the ratings.
Positive: A significant improvement in the revenue while
maintaining or improving the credit profile will be positive for
the ratings.
TCC was originally established as a proprietorship unit in 1983
and was converted into a partnership firm in 2005. The firm is
engaged in the business of civil construction works and is
registered as a Class I contractor. It has a head office in Delhi.
TRIMULA G: CRISIL Reaffirms 'B+' Rating on INR75MM Cash Loan
------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Trimula G
Basmati Pvt Ltd (TBPL) continues to reflect TBPL's below-average
financial risk profile, marked by high gearing and weak debt
protection metrics, mainly because of its large working capital
requirements, and its modest scale of operations in the intensely
competitive rice-milling industry. These rating weaknesses are
partially offset by the promoters' extensive industry experience.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 75 CRISIL B+/Stable (Reaffirmed)
Term Loan 5 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that TBPL will continue to benefit over the medium
term from the funding support that it receives from its promoters.
The outlook may be revised to 'Positive' if the company improves
its scale of operations, while maintaining its profitability,
leading to improvement in its financial risk profile. Conversely,
the outlook may be revised to 'Negative' if TBPL's financial risk
profile deteriorates, most likely because of significant increase
in its inventory, leading to large incremental bank borrowings, or
substantial debt-funded capital expenditure.
TBPL was established in 2009 by Mr. Sudhir Kumar, Mr. Shilpi
Kumar, and Mr. Ankur Kumar. The company is in the basmati rice
milling business. Its manufacturing unit, located in Nehtaur
(Uttar Pradesh), has milling and sorting capacity of 5 tonnes per
hour each.
TBPL, on a provisional basis, reported net profit of INR1.1
million on net sales of INR534 million for 2014-15 (refers to
financial year, April 1 to March 31) against net profit of INR2.5
million on net sales of INR528 million for 2013-14.
TRUMP IMPEX: CRISIL Ups Rating on INR95MM Cash Loan to B+
---------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facility of
Trump Impex Pvt Ltd (TIPL) to 'CRISIL B+/Stable' from 'CRISIL
B/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 95 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
The upgrade reflects significant improvement in TIPL's business
risk profile with significant sales growth of around 32 per cent
to INR1.30 billion in 2014-15 (refers to financial year, April 1
to March 31) from INR1.02 billion in the previous year. The sharp
growth in sales is driven by the company trading in better-quality
imported steel billets and ingots that have higher demand in the
domestic market. In 2015-16, till May 2015, TIPL achieved sales of
around INR450 million; it is likely to achieve sales of around
INR1.65 billion for the year. The growth in turnover and steady
operating margin of about 1.7 per cent led to an increase in cash
accruals to INR5.3 million in 2014-15 from INR3.1 million in the
previous year; the cash accruals are expected to improve over the
medium term. CRISIL believes that the extensive experience of
TIPL's promoter in the metal trading industry and his established
relationships with suppliers and customers will help the company
sustain its improved business risk profile over the medium term.
The rating reflects TIPL's presence in the highly fragmented and
competitive metal trading industry and the company's subdued
financial risk profile, marked by modest net worth, high external
indebtedness, and weak debt protection metrics. These rating
weaknesses are partially offset by the extensive industry
experience of the company's promoter.
Outlook: Stable
CRISIL believes that TIPL will continue to benefit over the medium
term from its promoter's extensive industry experience. The
outlook may be revised to 'Positive' if the company achieves a
significant and sustainable improvement in margins while improving
its capital structure. Conversely, the outlook may be revised to
'Negative' if TIPL registers a significant decline in its revenue
or margins, or if its working capital cycle lengthens, leading to
deterioration in its financial risk profile.
TIPL, incorporated in 2009, is promoted by Mr. Devang Mehta. It
trades in ingots, billets, ferrous, and non-ferrous metal scrap.
Mr. Mehta manages the company's daily operations. The company's
office is in Mumbai.
TIPL, on a provisional basis, reported profit after tax (PAT) of
INR4.3 million on net sales of INR1.30 billion for 2014-15; the
company reported PAT of INR2.6 million on net sales of INR1.02
billion for 2013-14.
ULTRA ALUMINIUM: CRISIL Assigns 'B' Rating to INR38MM Cash Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Ultra Aluminium Pvt Ltd (UAPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 38 CRISIL B/Stable
Long Term Loan 22 CRISIL B/Stable
The rating reflects UAPL's exposure to intense competition in the
fragmented aluminium sections manufacturing segment and its large
working capital requirements. The rating also factors in UAPL's
below-average financial risk profile, marked by modest net worth
and subdued debt protection metrics. These rating weaknesses are
partially offset by the extensive experience of UAPL's promoter in
the aluminium industry.
Outlook: Stable
CRISIL believes that UAPL will maintain its established position
in the aluminium industry over the medium term backed by its
promoter's extensive industry experience and established
relationships with customers. The outlook may be revised to
'Positive' in case of substantial and sustained improvement in the
company's accruals, backed by efficient working capital
management, leading to better liquidity. Conversely, the outlook
may be revised to 'Negative' in case of deterioration in the
company's financial risk profile, most likely because of large
working capital requirements or low cash accruals.
Incorporated in 2011, UAPL manufactures aluminum sections. The
company is promoted and managed by Mr. Jayadayal Kedia. It has a
manufacturing facility in Raipur.
UNIK BAZAR: CRISIL Reaffirms 'B+' Rating on INR60MM Cash Loan
-------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Unik Bazar Ltd
(UBL) continues to reflect UBL's modest scale of operations, large
working capital requirements, and weak financial risk profile,
marked by high gearing and average debt protection metrics. These
rating weaknesses are partially offset by the company's successful
ramp-up of operations and its management's extensive experience in
the retail store segment.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 60 CRISIL B+/Stable (Reaffirmed)
Proposed Cash
Credit Limit 30 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 14 CRISIL B+/Stable (Reaffirmed)
Term Loan 46 CRISIL B+/Stable (Reaffirmed)
Proposed Term Loan 30 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that UBL will continue to benefit over the medium
term from its management's extensive experience and its increasing
retail presence. The outlook may be revised to 'Positive' if UBL
scales up operations significantly and diversifies its revenue
profile and geographic reach, while sustaining its profitability.
Conversely, the outlook may be revised to 'Negative' in case of
large working capital requirements or debt-funded capital
expenditure (capex), or a steep decline in its margins, leading to
deterioration in the company's financial risk profile.
Update
UBL registered revenue of around INR450 million with 11
operational stores in 2014-15 (refers to financial year, April 1
to March 31), against INR146 million with 5 operational stores in
2012-13. With expected addition of 5 new stores in 2015-16, CRISIL
believes that UBL's revenue will grow at a healthy pace of around
25 per cent over the medium term. In the three years through 2013-
14, UBL has reported an operating margin of 5 to 6 per cent.
However, since the company is in expansion phase, CRISIL expects
its margin to remain susceptible successful ramp-up of operations;
sustenance of profits at around 6 per cent over medium term will
remain a key rating sensitivity factor.
UBL's financial risk profile is expected to improve driven by
infusion of equity of INR33.6 million by the promoters in 2014-15.
However, the financial risk profile remains weak with small net
worth and high gearing of around INR65 million and above 3 times,
respectively, as on March 31, 2015. The gearing is expected to
deteriorate to around 4 times as on March 31, 2016, due to capex
plans of around INR50 million for new stores. UBL's debt
protection metrics are average, with interest coverage ratio of
above 3 times and low debtor risk. CRISIL believes that UBL's
overall financial risk profile will remain weak over the medium
term due to expansion phase of business.
UBL's liquidity is marked by moderate utilisation of bank limits
at 86.3 per cent. It is expected to generate cash accruals of
INR20 million to INR25 million against debt obligations of around
INR16 million, over medium term. UBL's operations remain working
capital intensive, marked by high gross current assets of 15 to
160 days. Efficient inventory management will remain a key rating
sensitivity factor.
UBL, incorporated in 2011, is engaged in the retail-chain
business. The company operates 11 retail stores in Tier-2 and
Tier-3 locations in Delhi NCR, Uttar Pradesh, and Bihar, under its
Unik Bazar brand. Its directors include Mr. Ankit Gupta, Ms. Alka
Goyal, and Mr. Dinesh Harbhajanka. The company also has a shirt
manufacturing unit located in Rithala, Delhi. The shirts are being
sold via Unik Bazar under its own brand, John Bull.
VASISTA EDUCATIONAL: ICRA Lowers Rating on INR16cr Term Loan to D
-----------------------------------------------------------------
ICRA has revised the rating assigned to the INR18.00 crore long
term fund based limits of The Vasista Educational Society from
[ICRA]B- to [ICRA]D. ICRA has also revised the long term / short
term rating assigned to the INR4.00 crore unallocated limits of
Society to [ICRA]D/[ICRA]D from [ICRA]B-/[ICRA]A4 for the
captioned line of credit.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits
Term Loan 16.00 [ICRA]D (revised from
[ICRA]B-)
Cash Credit 2.00 [ICRA]D (revised from
[ICRA]B-)
Unallocated Limits 4.00 [ICRA]D/[ICRA]D (revised
from [ICRA]B-/[ICRA]A4)
The revision in ratings takes into account the delays in debt
servicing and the consistent overutilization of its bank
facilities by the Society owing to its tight liquidity position on
account of stretched receivables from the government. The rating
action also factors in the decline in occupancy levels for the key
courses offered by the Society in FY15, owing to increased
competition from new and existing engineering colleges, and the
consequent decline in its operating income and profit margins
during the year. However, the ratings favourably factor in the
wide range of courses offered by the engineering colleges run by
the Society and its established brand in imparting technical
education in West Godavari District of Andhra Pradesh.
Going forward, the ability of the society to regularize its debt
obligations, improve the occupancy levels for its key programmes
and manage its liquidity position would be key sensitivities.
The Vasista Educational Society was established in August 2000 at
Seetharampuram village, West Godavari District of Andhra Pradesh
by Mr. K.V. Satyanarayana & Mr. S. Ramesh Babu to promote
technical education. The Society runs two engineering colleges
Swarnandhra College of Engineering & Technology (SCET) and
Swarnandhra Institute of Engineering & Technology (SIET) offering
Diploma, B. Tech, M. Tech, MBA and MCA courses.
Recent Results
As per provisional financials for FY2015, the Society reported a
net surplus of INR0.30 crore on an operating income of INR22.40
crore as compared to a net surplus of INR5.00 crore on operating
income of INR26.80 crore for FY2014.
VINAYAK HATCHERIES: CARE Assigns B+ Rating to INR4.90cr LT Loan
---------------------------------------------------------------
CARE assigns 'CARE B+' rating to bank facilities of Vinayak
Hatcheries.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 4.9 CARE B+ Assigned
Rating Rationale
The rating assigned to the bank facilities of Vinayak Hatcheries
(VHS) is primarily constrained by the small scale of operations
with low partners' capital base and short track record of
operations, declining PBIDLT margins, leveraged capital structure,
weak debt service coverage indicators and elongated inventory
holding period. The rating is further constrained by the presence
of the entity in the highly competitive nature of the industry
with inherent risk associated with the poultry industry and
constitution of the entity being a partnership concern.
However, the rating draws comfort from the experienced partners,
growing scale of operations and moderate profitability margins.
Going forward, the firm's ability to increase the scale of
operations while maintaining the profitability margins,
improvement in its capital structure shall be the key rating
sensitivities.
Panipat-based (Haryana) VHS, was established as a partnership
concern in 2011 by Mr Jagdev Singh, Mr Jagdeep Singh and Mr Suresh
Kumar and sharing their profit and loss in the ratio of 25%, 25%
and 50% respectively. VHS is engaged in the poultry farming
business with an installed capacity of around 1,00,000 chickens
per annum as onMarch 31, 2015. The egg was processed in the
machine till the chicks are produced (maximum time in the process
is 21 days). The chicks are farmed before they attain bodyweight
of 1.3 kg. . The firm is directly selling its products i e broiler
chicks to poultry farms and farmers mainly in Northern-India. The
main materials for feeding the chicken are maize, soyabean and
defatted rice bran. These raw materials are procured locally and
Rajasthan, Bihar and Punjab through brokers and as well as
directly from the market.
Jagran Hatcheries (a proprietorship firm by Mr Jagdeep Singh, was
established in 2008) is the group associate of VHS which is
engaged in a similar line of business.
For FY14 (refers to the period April 1 to March 31), VHS achieved
a total operating income of INR10.88 crore with PAT of INR0.05
crore. The company has achieved a total operating income of around
INR13.17 crore in FY15 (provisional numbers) with PAT of INR0.99
crore.
VIROO MAL: CRISIL Ups Rating on INR600MM Cash Loan to 'B+'
----------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Viroo Mal Mulkh Raj Jain Rice Mills Pvt Ltd (Viroo) (formerly
known as Viroo Mal Mulkh Raj Jain Rice Mills) to 'CRISIL
B+/Stable' from 'CRISIL B/Stable'; the short-term rating has been
reaffirmed at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 600 CRISIL B+/Stable (Upgraded from
'CRISIL B/Stable')
Packing Credit 65 CRISIL A4 (Reaffirmed)
Term Loan 15 CRISIL B+/Stable (Upgraded from
'CRISIL B/Stable')
The rating upgrade reflects CRISIL's belief that Viroo's scale of
operations will be better than previously envisaged levels with
expected moderate growth, supported by increasing trading sales,
with sustained operating margin leading to moderate cash accruals
over the medium term. The company's scale of operations is
estimated to have registered healthy year-on-year growth of around
34 per cent in 2014-15 (refers to financial year, April 1 to March
31) driven by higher trading sales it undertook. Viroo's operating
margin, however, is estimated to have declined to around 4.0 per
cent in 2014-15 from historical levels of more than 10 per cent.
The company is expected to sustain operating margin at current
levels over the medium term. Consequently, its net cash accruals
are expected to improve steadily and be at about INR30 million
over the medium term. Furthermore, higher cash accruals, along
with equity infusion of INR40 million by promoters in 2014-15, are
expected to keep the gearing at 6.5 to 7.0 times over the near
term as against 10.5 times in 2013-14. The debt protection
metrics, however, are likely to remain weak over the medium term,
with an interest coverage ratio of about 1.3 times and a net cash
accruals to total debt ratio of around 0.03 times on account of
low profitability and working-capital-intensive operations.
The ratings continue to reflect Viroo's weak financial risk
profile, marked by high gearing, a moderate net worth, and below-
average debt protection metrics. The ratings also factor in the
company's susceptibility to regulatory changes and to vagaries of
monsoon. These rating weaknesses are partially offset by the
extensive experience of Viroo's promoters in the rice industry and
benefits expected from the healthy demand prospects for the rice
industry.
Outlook: Stable
CRISIL believes that Viroo will continue to benefit from the
extensive industry experience of its promoters. The outlook may be
revised to 'Positive' if the company's financial risk profile
improves, most likely because of improved profitability leading to
healthy accretion to reserves. The outlook may also be revised to
'Positive' if there is fresh infusion of equity by the promoters
or improvement in working capital management. Conversely, the
outlook may be revised to 'Negative' if Viroo's financial risk
profile deteriorates, primarily on account of large debt-funded
capex, or considerable working capital requirements, or if the
company's operating margin declines, leading to deterioration in
the debt protection metrics.
Viroo was set up as a proprietorship firm by Mr. Gulshan Jain in
2003; subsequently, it was reconstituted as a partnership firm in
July 2012 and into a private limited company in March 2015. Viroo
is engaged in processing and trading in rice.
Viroo, on a provisional basis, reported a profit after tax (PAT)
of around INR10 million on net sales of INR310 million for 2014-15
as against a PAT of INR8.0 million on net sales of INR224.8
million for 2013-14.
VYANKTESH CORRUGATORS: CRISIL Reaffirms B Rating on INR80MM Loan
----------------------------------------------------------------
CRISIL ratings continues to reflect Vyanktesh Corrugators Private
Limited's (VCPL) below-average financial risk profile, marked by
moderate capital structure owing to debt-funding of its large
working capital requirements. The ratings also factor in the
company's modest scale of operations in the fragmented packaging
industry, and significant customer concentration in its revenue
profile.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 80 CRISIL B/Stable (Reaffirmed)
Letter of Credit 32.5 CRISIL A4 (Reaffirmed)
These rating weaknesses are partially offset by the extensive
industry experience of VCPL's promoters, and the benefits it
derives from the assured availability of raw materials from its
associate concern.
Outlook: Stable
CRISIL believes that VCPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' in case of a considerable
increase in the company's scale of operations and profitability
while it tightens its working capital cycle, leading to
significant improvement in its liquidity. Conversely, the outlook
may be revised to 'Negative' if there is a decline in VCPL's
margins or a substantial increase in its working capital
requirements, resulting in deterioration in its financial risk
profile, particularly its liquidity.
Update
The revenues of the company increased by 28% to around INR400
million in 2014-15 backed by higher utilization of its increased
capacities. The operating margins of the company stood low at
around 7% leading to low cash accruals of around INR15 million.
The revenues of the company is expected to maintain its growth of
around 10% over the medium term backed by repeated orders from its
customers.
The liquidity of the company remains stretched as depicted by
almost full utilization of its bank limits. The operations of the
company remain working capital intensive mainly due to high
inventory days of over 3 months. The company has to maintain high
inventory levels to add new customers and to maintain their order
book. Also, the company gets very low credit from its suppliers.
The company is expected to generate cash accruals of around INR16
million in 2015-16 sufficient to cover the repayment obligations
of INR9 million. There is also need based fund support from the
promoters in the form of unsecured loans to the tune of INR8
million as on March 31, 2015. The liquidity of the company is
expected to remain stretched over the medium term due to working
capital intensive operations.
Incorporated in 1996 as a part of the Packing People group, VCPL
manufactures corrugated boxes using kraft paper; it is based in
Ujjain (Madhya Pradesh). The company is promoted by Bangur family.
=================
I N D O N E S I A
=================
BERAU COAL ENERGY: Singaporean Unit Files in the United States
--------------------------------------------------------------
Berau Capital Resources Pte Ltd, a special purpose vehicle formed
by Indonesian coal mining company PT Berau Coal Energy Tbk ("BCE")
to raise funds, filed a Chapter 15 petition in the United States
to seek recognition of its restructuring proceedings in Singapore.
BCE is 85% owned by United Kingdom-based Asia Resource Minerals
plc ("ARMs"). ARMs in turn is controlled by Asia Coal Energy
Ventures Limited ("ACE"), an entity supported by Indonesian
conglomerate Sinar Mas group.
BCE is the fifth largest coal producer in Indonesia and has an
interest, either directly or otherwise, in a total of 18 entities
incorporated in various jurisdictions ("BCE Group").
However, the financial and operational health of the Berau Group
has deteriorated in the last 2 years. This is, in part, directly
attributable to the decrease in global coal prices which reached a
5-year low as of March 2015. Further, due to changes in
management and certain disputes that have arisen between the
management of Indonesian operating unit PT Berau Coal, BCE and
ARMs, the management and maintenance of Berau Coal has been sub-
optimal, which has also contributed to the poor financial
condition of the BCE Group.
BCE Group's revenue and EBITDA have declined substantially as a
result of the drop in coal prices as well as the sub-optimal
manner in which the BCE Group has been managed and operated due to
the differences and disputes between the management of Berau Coal,
BCE and ARMs.
Although the BCE Group has taken steps to reduce its mining costs
in light of the low coal price environment, these savings have not
been sufficient to compensate for the decline in the selling price
of thermal coal.
BCR's Debt
Berau Capital Resources entered into an indenture dated July 8,
2010, pursuant to which BCR issued $350 million in 12.50%
guaranteed senior secured notes due 2015 (the "2015 Notes"), in
respect of which a further $100 million in principal amount was
issued in August 2010 pursuant to a supplemental indenture dated
August 24, 2010. The Bank of New York Mellon is the trustee under
the indenture for the 2015 Notes, which has been amended and
supplemented from time to time. BCR's obligations under the 2015
Notes are guaranteed by BCE, PT Armadian Tritunggal (incorporated
under the laws of the Republic of Indonesia), Berau Coal, Empire
Capital Resources Pte. Ltd. (incorporated under the laws of the
Republic of Singapore), Winchester Investment Holdings PLC
(incorporated under the laws of the Republic of Seychelles), Aries
Investments Limited (incorporated under the laws of the Republic
of Malta), Seacoast Offshore Inc. (incorporated under the laws of
the British Virgin Islands), Maple Holdings Limited (incorporated
under the laws of Labuan), PT Energi Bara Sarana (incorporated
under the laws of the Republic of Indonesia), and PT Banua Karsa
Mitra (incorporated under the laws of the Republic of Indonesia).
BCR was unable to make payment of the principal repayment of $450
million due on July 8, 2015 under the 2015 Notes.
On June 10, 2015, Asia Coal Energy Ventures Limited ("ACE"), a
company incorporated under the laws of the British Virgin Islands,
and fully funded and supported by the Sinar Mas group, made a
general offer for the entire issued and paid up share capital of
ARMs. Sinar Mas is one of Indonesia's major conglomerates with
interests and business in various industries including coal and
power. In light of Sinar Mas' position of strength in Indonesia,
ACE wanted to, in collaboration with Sinar Mas, gain control over
the BCE Group by gaining control over ARMs. As of July 7, 2015,
ACE is the majority shareholder of the BCE Group.
BCR has already commenced a restructuring process, preparing a
restructuring framework and engaging in negotiations with numerous
creditors, seeking standstill arrangements and/or to renegotiate
debt repayments.
In order for BCR and other companies within the BCE Group to
achieve a meaningful recovery, a restructuring of the BCE Group
will have to be effected pursuant to the restructuring processes
available under applicable laws.
The recoveries of creditors of BCR and the BCE Group are likely to
be materially greater in a restructuring in which the BCE Group
continues to operate as a going concern when compared with the
recoveries that would be achieved in a liquidation.
If the cash flow of the BCE Group is jeopardized by the actions of
any of the holders of the 2015 Notes, the BCE Group (and in
particular, Berau Coal) may not be able to maintain operations and
the restructuring of the BCE Group may be derailed.
BCR's Singaporean Proceedings
In order to prevent recovery or enforcement efforts by creditors
that would jeopardize the BCE Group's and BCR's restructuring, on
July 4, 2015, BCR initiated proceedings in the High Court of the
Republic of Singapore (the "Singapore Court") pursuant to Section
2 10(10) of the Companies Act (Cap. 50) for an order imposing a
moratorium on collection activity against BCR (the "Singapore
Proceeding").
On July 7, 2015, the Singapore Court entered orders prohibiting
for a period of six months the commencement or continuation of any
action by any creditors against BCR and the guarantors of the
debts of BCR including BCE, including, without limitation,
proceedings for the recovery of a debt or damages by civil action,
or proceedings by way of execution on a judgment (collectively,
the "Singapore Order").
As of July 10, 2015, BCR has an in-principle agreement with
holders holding a substantial amount of 2015 Notes with respect to
the terms of the restructuring of the BCE Group's indebtedness,
including the 2015 Notes. On July 8, 2015, BCR entered into a
restructuring support agreement with holders holding a substantial
amount of the 2015 Notes, pursuant thereto, the supporting
noteholders agreed to, inter alia, refrain from taking any
unilateral creditor action against any member of the BCE Group and
to support and progress the restructuring efforts undertaken by
the BCE Group.
Chapter 15 Proceeding
Kin Chan, chairman of the board of ARMs, says a retainer has been
paid on behalf of BCR to its counsel in the Chapter 15 case.
Other than the retainer funds, BCR does not have assets in the
U.S.
BCR is seeking the entry of an order granting provisional relief
and enjoining creditors from initiating or continuing any
collection efforts in the U.S. pending the hearing on BCR's
petition for recognition of the Singapore Proceeding as foreign
main proceeding.
About BCE Group
PT Berau Coal Energy Tbk ("BCE"), a public company incorporated
under the laws of the Republic of Indonesia, is in the business of
the mining and export of thermal coal and is the fifth largest
coal producer in Indonesia in terms of production volume. The BCE
Group supplies coal domestically and internationally. PT Berau
Coal ("Berau Coal") (which is beneficially owned as to 90% by BCE)
is the BCE Group's key operating asset. Berau Coal has licenses to
conduct coal mining activities in various concession areas in East
Kalimantan, Indonesia until April 26, 2025.
The most substantial shareholder of BCE, holding 84.7% of the
issued and paid up share capital, is Asia Resource Minerals plc
("ARMs"), a public company incorporated under the laws of England
and Wales.
BCE has an interest, either directly or otherwise, in a total of
18 entities incorporated in various jurisdictions.
As of July 10, 2015, an involuntary bankruptcy petition has been
filed in the Central District Commercial Court of Jakarta in
respect of Berau Coal. Save for the Indonesian bankruptcy
petition and BCR's Singapore proceeding, there are no other
pending debt adjustment or insolvency proceeding of any king
involving any other member o the BCE Group.
About Berau Capital
Berau Capital Resources Pte Ltd., is incorporated under the laws
of the Republic of Singapore and is a wholly-owned subsidiary of
PT Berau Coal Energy Tbk ("BCE"), a public company incorporated
under the laws of the Republic of Indonesia. Berau Capital was
incorporated in 2010, by BCE as a special purpose vehicle to raise
funds for and on behalf of the BCE Group.
In order to prevent recovery or enforcement efforts by creditors
that would jeopardize the BCE Group's and BCR's restructuring, on
July 4, 2015, BCR initiated proceedings in the High Court of the
Republic of Singapore (the "Singapore Court").
Berau Capital filed a Chapter 15 petition (Bankr. S.D.N.Y. Case
No. 15-11804) in Manhattan in the United States on July 10, 2015,
to seek recognition of its restructuring proceedings in Singapore.
Kin Chan, the chairman of the board of ARMs, signed the Chapter 15
petition and is serving as foreign representative.
The U.S. case is assigned to Judge Martin Glenn.
The Debtor tapped Edward J. LoBello, Esq., at Meyer, Suozzi,
English & Klein, P.C., in Garden City, New York, as counsel.
=========
J A P A N
=========
TOSHIBA CORP: President to Resign Amid Padded Profits Probe
-----------------------------------------------------------
The Japan Times reports that Toshiba Corp. President Hisao Tanaka
is expected to step down to take responsibility for accounting
irregularities, sources familiar with the matter said on July 11.
The report relates that Mr. Tanaka's resignation will be finalized
after a third-party panel tasked with investigating the scandal
releases its report as early as next week. The panel has found the
64-year-old president put heavy pressure on subordinates to
achieve profit targets, the sources said, the report relays.
According to the report, sources said the electronics maker may
have overstated around JPY200 billion ($1.6 billion) in its group
operating profits in its mainstay infrastructure-related,
semiconductor, television and personal computer businesses for the
five years to March 2014.
Former President and current Vice Chairman Norio Sasaki, 66, is
also likely to resign as a board member over the scandal, the
sources, as cited by The Japan Times, said.
Mr. Sasaki served as Toshiba president between June 2009 and June
2013, covering most of the period during which the company has
been found to have padded its profits, the report relays.
According to the Japan Times, Toshiba has withdrawn its earnings
estimate for fiscal 2014, which ended in March, and canceled a
year-end dividend. It is expected to release an earnings report in
August following the release of the third-party-panel
investigations as early as July 16, the report says.
The Japan Times relates that informed sources said Mr. Tanaka
placed intense pressure on his subordinates to meet profit
targets, potentially driving them to pad figures.
He made phone calls and sent emails to subordinates early in the
morning in some cases, demanding they improve business
performance, the sources said, adding that some exchanges could be
taken as calling for irregular accounting, the report relates.
Toshiba also called its profit targets a "challenge" or "stretch,"
with the latter apparently used to describe more ambitious
targets, they said, according to the Japan Times.
The Japan Times adds that the third-party panel formed to
investigate accounting irregularities is expected to look into
whether Mr. Tanaka's predecessor Mr. Sasaki played any role in
causing the scandal. Mr. Sasaki had a similar management style,
and is believed to have also pressed subordinates to achieve
profit targets while company president. The sources said he
sometimes pressed them hard with exhortations such as, "Why can't
you just get it done?" reports The Japan Times.
About Toshiba Corp.
Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/-- is
a Japan-based manufacturer involved in five business segments.
The Digital Products segment offers cellular phones, hard disc
devices, optical disc devices, liquid crystal televisions, camera
systems, digital versatile disc (DVD) players and recorders,
personal computers (PCs) and business phones, among others. The
Electronic Device segment provides general logic integrated
circuits (ICs), optical semiconductors, power devices, large-scale
integrated (LSI) circuits for image information systems and liquid
crystal displays (LCDs), among others. The Social Infrastructure
segment offers various generators, power distribution systems,
water and sewer systems, transportation systems and station
automation systems, among others. The Home Appliance segment
offers refrigerators, drying machines, washing machines, cooking
utensils, cleaners and lighting equipment. The Others segment
leases and sells real estate.
As reported in the Troubled Company Reporter-Asia Pacific on
June 25, 2014, Moody's Japan K.K. assigned a rating of Ba1 to the
JPY180 billion in subordinated loans issued by Toshiba
Corporation. At the same time, Moody's has affirmed all of
Toshiba's ratings.
Senior Unsecured Baa2
Senior Unsecured Shelf (P)Baa2
Subordinate Ba1
Commercial Paper P-2
The ratings outlook is stable.
====================
N E W Z E A L A N D
====================
ARENA CAPITAL: Should be Liquidated, Administrators Say
-------------------------------------------------------
Maria Nikolova at leaprate.com reports that KordaMentha, the firm
responsible for the administration of Arena Capital/BlackfortFX,
have issued another update to clients of the troubled New Zealand
Forex broker.
The update states that the broker is clearly insolvent and that it
needs to be put into liquidation, so that the administrators would
be able to free some assets and proceed with return of client
funds, according to leaprate.com.
The report notes that KordaMentha has now filed an application
with the court to be appointed as a liquidator (rather than as a
receiver) of BlackfortFX. The court will consider the application
on July 24, 2015, the report says.
KordaMentha has finalized a reconstruction of individual client
accounts based on transactions through Arena's bank account, the
report discloses. The current analysis shows the broker
transacted with approximately 1,100 individual clients. This
number is up from previously estimated 750 clients, the report
relays.
Starting July 13, 2015, KordaMentha said, it will start sending
clients a statement about their position is with the broker, which
the clients need to confirm or disagree with, the report notes.
Given that BlackfortFX was not actually active in Forex, the
administrators will not assign any profit to any client, the
report relays.
Because the process of balances confirmation and assets recovery
will take substantial time, KordaMentha said the distribution of
surplus assets will be possible sometime later this year at the
earliest, the report notes.
The broker was placed in receivership in late May 2015, amid
concerns that it was operating in violation of New Zealand
investment laws and that client funds were at risk, the report
adds.
MTF VALIANT 2014: Fitch Affirms 'Bsf' Rating on Class F Notes
-------------------------------------------------------------
Fitch Ratings has affirmed the ratings of MTF Valiant Trust 2014
notes (the note balance is as of June 15, 2015). The transaction
is a securitization backed by New Zealand auto loan receivables
originated by Motor Trade Finances Ltd (MTF), due July 2022. The
rating actions are as follows:
NZD176.4 million Class A notes: 'AAAsf'; Outlook Stable;
NZD6.66 million Class B notes: 'AAsf'; Outlook Stable;
NZD5.84 million Class C notes: 'Asf'; Outlook Stable;
NZD2.66 million Class D notes: 'BBBsf'; Outlook Stable;
NZD2.5 million Class E notes: 'BBsf'; Outlook Stable; and
NZD1.2 million Class F notes: 'Bsf'; Outlook Stable
KEY RATING DRIVERS
The affirmation reflects Fitch's view that the available credit
enhancement is sufficient to support the notes' current rating,
and the agency's expectations of New Zealand's economic
conditions. Credit quality and performance of the underlying
receivables have also remained within the agency's expectations.
At May 31, 2015, 30+ days arrears stood at 0.43%, below Fitch's
1Q15 Dinkum ABS Index for Australia of 1.25%. Gross and net losses
related to 90+ days arrears amounted to NZD532,288 and NZD83,437,
respectively - below Fitch's modelled expectations. The average
recovery rate since closing has also been better than modelled
expectations. All realised losses have been covered by excess
spread which has been strong since closing, consistently averaging
10.2%.
MTF Valiant Trust 2014 has a two-year revolving period of which 13
months remain. Concentration tests are in place and calculated
monthly to stop replenishment in the transaction in case of
performance deterioration.
RATING SENSITIVITIES
Increases in the frequency of defaults could produce loss levels
higher than Fitch's base case, which could result in negative
rating actions on the notes. Fitch evaluated the sensitivity of
the ratings of MTF Valiant Trust 2014 to increased defaults and
decreased recovery rates over the life of the transaction. Its
analysis found that collectively, the ratings of the Class A notes
were susceptible to downgrades under all stress levels tested
(defaults increased by 10%, 25% and 50%), while the Class B and C
notes remain susceptible under medium (25%) to severe (50%)
default stress. The Class D notes were impacted only after a
severe increase in defaults while the Class E and F notes remained
steady under all default stresses. Only the Class A and C notes
were susceptible to downgrades if recovery rates fall by at least
50%, while all other classes remained stable under all recovery
rate stresses.
The rating sensitivity analysis remains unchanged since closing as
the portfolio characteristics have not changed significantly and
as the transaction still features a revolving pool.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation
to this rating action.
DATA ADEQUACY
Fitch conducted a file review of 10 sample loan files focusing on
the underwriting procedures conducted by MTF compared to MTF's
credit policy at the time of underwriting. Fitch has checked the
consistency and plausibility of the information and no material
discrepancies were noted that would impact Fitch's rating
analysis.
Initial Key Rating Drivers and Rating Sensitivities are described
further in the new issue report entitled, "MTF Valiant Trust
2014", dated 14 July 2014.
SEAGARS: Faces Liquidation After Several Months
-----------------------------------------------
3 News reports that a cafe and cooking school owned by well-known
Canterbury chef Jo Seagar has been put into liquidation after
several months on the market.
The report notes that Seagars at Oxford closed on July 10,
according to a notice posted by its operator Winslow Trading
Company.
Ms. Seagar said the business began struggling after the
earthquakes and she is gutted her dream has fallen apart
"It's a really tough thing," she told RadioLIVE, according to 3
News.
"I'm really, really sad. It's been a fabulous 10 years and um,
yeah it's just not how I planned it," the report quoted Ms. Seagar
as saying.
The report notes that Ms. Seagar hopes someone could still step in
and buy the business and that she could still maintain some
involvement.
Ms. Seagar had relisted the cooking school and cafe with a
property company just a fortnight before going into liquidation,
the report relates.
The price tag was set at NZ$390,000 plus GST, including B&B
accommodation for 12 guests and a three-bedroom apartment.
The Prime Business advertisement claimed "new opportunities and
lifestyle changes" for Ms. Seagar and her husband, Ross, were
among the reasons behind the proposed sale, the report says.
The chef had previously said she plans to continue living in the
small Canterbury town of Oxford, the report adds.
=================
S I N G A P O R E
=================
BERAU CAPITAL RESOURCES: Files Chapter 15 Petition in U.S.
----------------------------------------------------------
Berau Capital Resources Pte Ltd, a special purpose vehicle formed
by Indonesian coal mining company PT Berau Coal Energy Tbk ("BCE")
to raise funds, filed a Chapter 15 petition in the United States
to seek recognition of its restructuring proceedings in Singapore.
BCE is 85% owned by United Kingdom-based Asia Resource Minerals
plc ("ARMs"). ARMs in turn is controlled by Asia Coal Energy
Ventures Limited ("ACE"), an entity supported by Indonesian
conglomerate Sinar Mas group.
BCE is the fifth largest coal producer in Indonesia and has an
interest, either directly or otherwise, in a total of 18 entities
incorporated in various jurisdictions ("BCE Group").
However, the financial and operational health of the Berau Group
has deteriorated in the last 2 years. This is, in part, directly
attributable to the decrease in global coal prices which reached a
5-year low as of March 2015. Further, due to changes in
management and certain disputes that have arisen between the
management of Indonesian operating unit PT Berau Coal, BCE and
ARMs, the management and maintenance of Berau Coal has been sub-
optimal, which has also contributed to the poor financial
condition of the BCE Group.
BCE Group's revenue and EBITDA have declined substantially as a
result of the drop in coal prices as well as the sub-optimal
manner in which the BCE Group has been managed and operated due to
the differences and disputes between the management of Berau Coal,
BCE and ARMs.
Although the BCE Group has taken steps to reduce its mining costs
in light of the low coal price environment, these savings have not
been sufficient to compensate for the decline in the selling price
of thermal coal.
BCR's Debt
Berau Capital Resources entered into an indenture dated July 8,
2010, pursuant to which BCR issued $350 million in 12.50%
guaranteed senior secured notes due 2015 (the "2015 Notes"), in
respect of which a further $100 million in principal amount was
issued in August 2010 pursuant to a supplemental indenture dated
August 24, 2010. The Bank of New York Mellon is the trustee under
the indenture for the 2015 Notes, which has been amended and
supplemented from time to time. BCR's obligations under the 2015
Notes are guaranteed by BCE, PT Armadian Tritunggal (incorporated
under the laws of the Republic of Indonesia), Berau Coal, Empire
Capital Resources Pte. Ltd. (incorporated under the laws of the
Republic of Singapore), Winchester Investment Holdings PLC
(incorporated under the laws of the Republic of Seychelles), Aries
Investments Limited (incorporated under the laws of the Republic
of Malta), Seacoast Offshore Inc. (incorporated under the laws of
the British Virgin Islands), Maple Holdings Limited (incorporated
under the laws of Labuan), PT Energi Bara Sarana (incorporated
under the laws of the Republic of Indonesia), and PT Banua Karsa
Mitra (incorporated under the laws of the Republic of Indonesia).
BCR was unable to make payment of the principal repayment of $450
million due on July 8, 2015 under the 2015 Notes.
On June 10, 2015, Asia Coal Energy Ventures Limited ("ACE"), a
company incorporated under the laws of the British Virgin Islands,
and fully funded and supported by the Sinar Mas group, made a
general offer for the entire issued and paid up share capital of
ARMs. Sinar Mas is one of Indonesia's major conglomerates with
interests and business in various industries including coal and
power. In light of Sinar Mas' position of strength in Indonesia,
ACE wanted to, in collaboration with Sinar Mas, gain control over
the BCE Group by gaining control over ARMs. As of July 7, 2015,
ACE is the majority shareholder of the BCE Group.
BCR has already commenced a restructuring process, preparing a
restructuring framework and engaging in negotiations with numerous
creditors, seeking standstill arrangements and/or to renegotiate
debt repayments.
In order for BCR and other companies within the BCE Group to
achieve a meaningful recovery, a restructuring of the BCE Group
will have to be effected pursuant to the restructuring processes
available under applicable laws.
The recoveries of creditors of BCR and the BCE Group are likely to
be materially greater in a restructuring in which the BCE Group
continues to operate as a going concern when compared with the
recoveries that would be achieved in a liquidation.
If the cash flow of the BCE Group is jeopardized by the actions of
any of the holders of the 2015 Notes, the BCE Group (and in
particular, Berau Coal) may not be able to maintain operations and
the restructuring of the BCE Group may be derailed.
BCR's Singaporean Proceedings
In order to prevent recovery or enforcement efforts by creditors
that would jeopardize the BCE Group's and BCR's restructuring, on
July 4, 2015, BCR initiated proceedings in the High Court of the
Republic of Singapore (the "Singapore Court") pursuant to Section
2 10(10) of the Companies Act (Cap. 50) for an order imposing a
moratorium on collection activity against BCR (the "Singapore
Proceeding").
On July 7, 2015, the Singapore Court entered orders prohibiting
for a period of six months the commencement or continuation of any
action by any creditors against BCR and the guarantors of the
debts of BCR including BCE, including, without limitation,
proceedings for the recovery of a debt or damages by civil action,
or proceedings by way of execution on a judgment (collectively,
the "Singapore Order").
As of July 10, 2015, BCR has an in-principle agreement with
holders holding a substantial amount of 2015 Notes with respect to
the terms of the restructuring of the BCE Group's indebtedness,
including the 2015 Notes. On July 8, 2015, BCR entered into a
restructuring support agreement with holders holding a substantial
amount of the 2015 Notes, pursuant thereto, the supporting
noteholders agreed to, inter alia, refrain from taking any
unilateral creditor action against any member of the BCE Group and
to support and progress the restructuring efforts undertaken by
the BCE Group.
Chapter 15 Proceeding
Kin Chan, chairman of the board of ARMs, says a retainer has been
paid on behalf of BCR to its counsel in the Chapter 15 case.
Other than the retainer funds, BCR does not have assets in the
U.S.
BCR is seeking the entry of an order granting provisional relief
and enjoining creditors from initiating or continuing any
collection efforts in the U.S. pending the hearing on BCR's
petition for recognition of the Singapore Proceeding as foreign
main proceeding.
About BCE Group
PT Berau Coal Energy Tbk ("BCE"), a public company incorporated
under the laws of the Republic of Indonesia, is in the business of
the mining and export of thermal coal and is the fifth largest
coal producer in Indonesia in terms of production volume. The BCE
Group supplies coal domestically and internationally. PT Berau
Coal ("Berau Coal") (which is beneficially owned as to 90% by BCE)
is the BCE Group's key operating asset. Berau Coal has licenses to
conduct coal mining activities in various concession areas in East
Kalimantan, Indonesia until April 26, 2025.
The most substantial shareholder of BCE, holding 84.7% of the
issued and paid up share capital, is Asia Resource Minerals plc
("ARMs"), a public company incorporated under the laws of England
and Wales.
BCE has an interest, either directly or otherwise, in a total of
18 entities incorporated in various jurisdictions.
As of July 10, 2015, an involuntary bankruptcy petition has been
filed in the Central District Commercial Court of Jakarta in
respect of Berau Coal. Save for the Indonesian bankruptcy
petition and BCR's Singapore proceeding, there are no other
pending debt adjustment or insolvency proceeding of any king
involving any other member o the BCE Group.
About Berau Capital
Berau Capital Resources Pte Ltd., is incorporated under the laws
of the Republic of Singapore and is a wholly-owned subsidiary of
PT Berau Coal Energy Tbk ("BCE"), a public company incorporated
under the laws of the Republic of Indonesia. Berau Capital was
incorporated in 2010, by BCE as a special purpose vehicle to raise
funds for and on behalf of the BCE Group.
In order to prevent recovery or enforcement efforts by creditors
that would jeopardize the BCE Group's and BCR's restructuring, on
July 4, 2015, BCR initiated proceedings in the High Court of the
Republic of Singapore (the "Singapore Court").
Berau Capital filed a Chapter 15 petition (Bankr. S.D.N.Y. Case
No. 15-11804) in Manhattan in the United States on July 10, 2015,
to seek recognition of its restructuring proceedings in Singapore.
Kin Chan, the chairman of the board of ARMs, signed the Chapter 15
petition and is serving as foreign representative.
The U.S. case is assigned to Judge Martin Glenn.
The Debtor tapped Edward J. LoBello, Esq., at Meyer, Suozzi,
English & Klein, P.C., in Garden City, New York, as counsel.
BERAU CAPITAL: Chapter 15 Case Summary
--------------------------------------
Chapter 15 Petitioner: Kin Chan
Chapter 15 Debtor: Berau Capital Resources Pte Ltd
10 Anson Road, #03-03
International Plaza
Singapore
Chapter 15 Case No.: 15-11804
Type of Business: Mining and exporting of thermal coal
Chapter 15 Petition Date: July 10, 2015
Court: United States Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Hon. Martin Glenn
Chapter 15 Petitioner's Edward J. LoBello, Esq.
Counsel: Thomas R. Slome, Esq.
Jil Mazer-Marino, Esq.
MEYER, SUOZZI, ENGLISH & KLEIN, P.C.
990 Stewart Avenue, Suite 300
PO Box 9194
Garden City, NY 11530
Tel: 516-741-6565
Fax: 516-741-6706
Email: elobello@msek.com
tslome@msek.com
jmazermarino@msek.com
Estimated Assets: $100 million to $500 million
Estimated Liabilities: $100 million to $500 million
===============
X X X X X X X X
===============
* BOND PRICING: For the Week July 6 to July 10, 2015
----------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA
---------
ANTARES ENERGY L 10.00 10/30/23 AUD 1.82
BOART LONGYEAR M 7.00 04/01/21 USD 70.75
BOART LONGYEAR M 7.00 04/01/21 USD 68.30
CML GROUP LTD 9.00 01/29/20 AUD 1.02
EMECO PTY LTD 9.88 03/15/19 USD 72.00
EMECO PTY LTD 9.88 03/15/19 USD 72.50
FMG RESOURCES AU 6.88 04/01/22 USD 72.75
FMG RESOURCES AU 6.88 04/01/22 USD 74.92
IMF BENTHAM LTD 6.46 06/30/19 AUD 70.75
KBL MINING LTD 12.00 02/16/17 AUD 0.27
LAKES OIL NL 10.00 03/31/17 AUD 8.60
MIDWEST VANADIUM 11.50 02/15/18 USD 5.00
MIDWEST VANADIUM 11.50 02/15/18 USD 4.80
RESOLUTE MINING 10.00 12/04/17 AUD 0.90
STOKES LTD 10.00 06/30/17 AUD 0.45
TREASURY CORP OF 0.50 11/12/30 AUD 62.03
CHINA
-----
CHANGCHUN CITY D 6.08 03/09/16 CNY 40.42
CHANGZHOU INVEST 5.80 07/01/16 CNY 70.41
CHANGZHOU WUJIN 5.42 06/09/16 CNY 50.01
CHANGZHOU WUJIN 6.22 06/08/18 CNY 76.70
CHINA GOVERNMENT 1.64 12/15/33 CNY 70.43
DANYANG INVESTME 6.30 06/03/16 CNY 40.28
DATONG ECONOMIC 6.50 06/01/17 CNY 68.13
ERDOS DONGSHENG 8.40 02/28/18 CNY 57.81
HANGZHOU XIAOSHA 6.90 11/22/16 CNY 70.10
HEILONGJIANG HEC 7.78 11/17/16 CNY 70.00
HUAIAN CITY URBA 7.15 12/21/16 CNY 70.61
INNER MONGOLIA N 7.48 05/05/18 CNY 72.50
JIANGSU HUAJING 5.68 09/28/17 CNY 74.56
KUNSHAN ENTREPRE 4.70 03/30/16 CNY 40.04
LIAOYUAN STATE-O 7.80 01/26/17 CNY 72.00
LIAOYUAN STATE-O 7.80 01/26/17 CNY 71.61
NANJING NANGANG 6.13 02/27/16 CNY 50.11
NANTONG STATE-OW 6.72 11/13/16 CNY 64.04
PANJIN CONSTRUCT 7.70 12/16/16 CNY 71.14
QINGZHOU HONGYUA 6.50 05/22/19 CNY 40.50
SHANGHAI REAL ES 6.12 05/17/17 CNY 71.50
TAIZHOU CITY CON 6.90 01/25/17 CNY 70.64
WUXI COMMUNICATI 5.58 07/08/16 CNY 50.32
XIANGTAN JIUHUA 6.93 12/16/16 CNY 80.98
YANGZHOU URBAN C 5.94 07/23/16 CNY 70.80
YIJINHUOLUOQI HO 8.35 03/19/19 CNY 74.43
ZIBO CITY PROPER 5.45 04/27/19 CNY 48.55
INDONESIA
---------
ARPENI PRATAMA O 16.50 06/30/21 IDR 36.00
BERAU COAL ENERG 7.25 03/13/17 USD 60.00
BERAU COAL ENERG 7.25 03/13/17 USD 54.50
INDIA
-----
3I INFOTECH LTD 5.00 04/26/17 USD 23.00
BLUE DART EXPRES 9.30 11/20/17 INR 10.17
BLUE DART EXPRES 9.50 11/20/19 INR 10.26
BLUE DART EXPRES 9.40 11/20/18 INR 10.22
COROMANDEL INTER 9.00 07/23/16 INR 16.36
GTL INFRASTRUCTU 3.53 11/09/17 USD 30.25
INCLINE REALTY P 10.85 08/21/17 INR 12.00
INCLINE REALTY P 10.85 04/21/17 INR 8.74
INDIA GOVERNMENT 7.64 01/25/35 INR 22.57
JAIPRAKASH ASSOC 5.75 09/08/17 USD 74.14
JCT LTD 2.50 04/08/11 USD 21.13
ORIENTAL HOTELS 2.00 11/21/19 INR 73.32
PYRAMID SAIMIRA 1.75 07/04/12 USD 1.00
REI AGRO LTD 5.50 11/13/14 USD 20.63
REI AGRO LTD 5.50 11/13/14 USD 20.63
SHIV-VANI OIL & 5.00 08/17/15 USD 23.88
JAPAN
-----
AVANSTRATE INC 3.02 11/05/15 JPY 39.13
AVANSTRATE INC 5.00 11/05/17 JPY 30.75
ELPIDA MEMORY IN 0.70 08/01/16 JPY 9.63
ELPIDA MEMORY IN 0.50 10/26/15 JPY 8.88
ELPIDA MEMORY IN 2.03 03/22/12 JPY 9.63
ELPIDA MEMORY IN 2.10 11/29/12 JPY 9.63
ELPIDA MEMORY IN 2.29 12/07/12 JPY 9.63
KOREA
-----
2014 KODIT CREAT 5.00 12/25/17 KRW 28.64
2014 KODIT CREAT 5.00 12/25/17 KRW 28.64
DONGBU CORP 4.00 06/29/15 KRW 63.91
DOOSAN CAPITAL S 20.00 04/22/19 KRW 35.76
EXPORT-IMPORT BA 0.50 11/21/17 BRL 74.39
EXPORT-IMPORT BA 0.50 12/22/17 BRL 73.29
HYUNDAI HEAVY IN 4.80 12/15/44 KRW 57.75
HYUNDAI HEAVY IN 4.90 12/15/44 KRW 56.68
HYUNDAI MERCHANT 7.05 12/27/42 KRW 37.61
KIBO ABS SPECIAL 10.00 02/19/17 KRW 34.23
KIBO ABS SPECIAL 10.00 08/22/17 KRW 27.49
KIBO ABS SPECIAL 10.00 09/04/16 KRW 36.67
KIBO ABS SPECIAL 5.00 01/31/17 KRW 30.54
KIBO ABS SPECIAL 5.00 03/29/18 KRW 27.63
KIBO GREEN HI-TE 10.00 12/21/15 KRW 41.27
LSMTRON DONGBANG 4.53 11/22/17 KRW 28.34
POSCO ENERGY COR 4.66 08/29/43 KRW 70.56
POSCO ENERGY COR 4.72 08/29/43 KRW 69.96
POSCO ENERGY COR 4.72 08/29/43 KRW 69.84
POSCO PLANTEC CO 3.89 09/13/16 KRW 73.06
SHINHAN BANK 0.28 06/17/30 KRW 68.46
SINBO SECURITIZA 5.00 07/24/17 KRW 29.11
SINBO SECURITIZA 5.00 01/29/17 KRW 31.26
SINBO SECURITIZA 5.00 05/27/16 KRW 33.98
SINBO SECURITIZA 5.00 05/27/16 KRW 33.98
SINBO SECURITIZA 5.00 07/26/16 KRW 33.39
SINBO SECURITIZA 5.00 06/29/16 KRW 33.62
SINBO SECURITIZA 5.00 07/24/18 KRW 26.96
SINBO SECURITIZA 5.00 07/24/18 KRW 26.96
SINBO SECURITIZA 5.00 10/01/17 KRW 29.15
SINBO SECURITIZA 5.00 10/01/17 KRW 29.15
SINBO SECURITIZA 5.00 10/01/17 KRW 29.15
SINBO SECURITIZA 5.00 08/31/16 KRW 32.95
SINBO SECURITIZA 5.00 08/31/16 KRW 32.95
SINBO SECURITIZA 5.00 12/13/16 KRW 31.78
SINBO SECURITIZA 5.00 02/02/16 KRW 33.62
SINBO SECURITIZA 5.00 02/21/17 KRW 30.99
SINBO SECURITIZA 5.00 03/14/16 KRW 33.47
SINBO SECURITIZA 5.00 08/24/15 KRW 50.87
SINBO SECURITIZA 5.00 10/05/16 KRW 32.58
SINBO SECURITIZA 5.00 10/05/16 KRW 31.01
SINBO SECURITIZA 5.00 09/28/15 KRW 43.75
SINBO SECURITIZA 5.00 07/08/17 KRW 30.14
SINBO SECURITIZA 5.00 07/08/17 KRW 30.14
SINBO SECURITIZA 9.00 07/27/15 KRW 69.99
SINBO SECURITIZA 5.00 06/07/17 KRW 22.32
SINBO SECURITIZA 5.00 06/07/17 KRW 22.32
SINBO SECURITIZA 5.00 03/13/17 KRW 30.77
SINBO SECURITIZA 5.00 03/13/17 KRW 30.77
SINBO SECURITIZA 5.00 02/21/17 KRW 30.99
SINBO SECURITIZA 8.00 02/02/16 KRW 37.22
SINBO SECURITIZA 5.00 06/27/18 KRW 27.12
SINBO SECURITIZA 5.00 06/27/18 KRW 27.12
SINBO SECURITIZA 5.00 07/19/15 KRW 64.14
SINBO SECURITIZA 5.00 07/26/16 KRW 33.39
SINBO SECURITIZA 5.00 08/29/18 KRW 26.51
SINBO SECURITIZA 5.00 08/29/18 KRW 26.51
SINBO SECURITIZA 5.00 01/19/16 KRW 34.20
SINBO SECURITIZA 5.00 12/07/15 KRW 37.36
SINBO SECURITIZA 10.00 12/27/15 KRW 40.76
SINBO SECURITIZA 5.00 08/16/16 KRW 32.24
SINBO SECURITIZA 5.00 08/16/17 KRW 29.71
SINBO SECURITIZA 5.00 08/16/17 KRW 29.71
SINBO SECURITIZA 5.00 09/13/15 KRW 48.47
SINBO SECURITIZA 5.00 09/13/15 KRW 48.47
SINBO SECURITIZA 5.00 02/11/18 KRW 27.99
SINBO SECURITIZA 5.00 02/11/18 KRW 27.99
SINBO SECURITIZA 5.00 03/12/18 KRW 27.77
SINBO SECURITIZA 5.00 03/12/18 KRW 27.77
SINBO SECURITIZA 5.00 01/15/18 KRW 28.45
SINBO SECURITIZA 5.00 01/15/18 KRW 28.45
SINBO SECURITIZA 5.00 12/25/16 KRW 30.99
SK TELECOM CO LT 4.21 06/07/73 KRW 67.84
TONGYANG CEMENT 7.50 04/20/14 KRW 70.00
TONGYANG CEMENT 7.30 06/26/15 KRW 70.00
TONGYANG CEMENT 7.30 04/12/15 KRW 70.00
TONGYANG CEMENT 7.50 07/20/14 KRW 70.00
TONGYANG CEMENT 7.50 09/10/14 KRW 70.00
U-BEST SECURITIZ 5.50 11/16/17 KRW 29.34
WISE MOBILE SECU 20.00 05/19/18 KRW 71.49
WISEPOWER CO LTD 4.00 08/10/15 KRW 41.69
SRI LANKA
---------
SRI LANKA GOVERN 5.35 03/01/26 LKR 73.21
MALAYSIA
--------
BANDAR MALAYSIA 0.35 12/29/23 MYR 70.61
BANDAR MALAYSIA 0.35 02/20/24 MYR 70.12
BIMB HOLDINGS BH 1.50 12/12/23 MYR 70.51
BRIGHT FOCUS BHD 2.50 01/22/31 MYR 65.37
BRIGHT FOCUS BHD 2.50 01/24/30 MYR 68.18
LAND & GENERAL B 1.00 09/24/18 MYR 0.31
SENAI-DESARU EXP 0.50 12/31/38 MYR 65.64
SENAI-DESARU EXP 0.50 12/29/45 MYR 74.26
SENAI-DESARU EXP 0.50 12/30/39 MYR 67.36
SENAI-DESARU EXP 0.50 12/31/40 MYR 68.67
SENAI-DESARU EXP 0.50 12/31/41 MYR 69.87
SENAI-DESARU EXP 0.50 12/31/42 MYR 71.26
SENAI-DESARU EXP 0.50 12/30/44 MYR 73.36
SENAI-DESARU EXP 0.50 12/31/43 MYR 72.43
SENAI-DESARU EXP 1.35 06/29/29 MYR 54.99
SENAI-DESARU EXP 1.35 06/30/28 MYR 57.88
SENAI-DESARU EXP 1.35 12/29/28 MYR 56.43
SENAI-DESARU EXP 1.10 12/31/21 MYR 75.10
SENAI-DESARU EXP 1.10 06/30/22 MYR 73.50
SENAI-DESARU EXP 1.15 12/30/22 MYR 72.20
SENAI-DESARU EXP 1.15 06/30/23 MYR 70.64
SENAI-DESARU EXP 1.15 12/29/23 MYR 69.10
SENAI-DESARU EXP 1.15 06/28/24 MYR 67.57
SENAI-DESARU EXP 1.15 12/31/24 MYR 66.01
SENAI-DESARU EXP 1.15 06/30/25 MYR 64.50
SENAI-DESARU EXP 1.35 12/31/25 MYR 64.71
SENAI-DESARU EXP 1.35 06/30/26 MYR 63.43
SENAI-DESARU EXP 1.35 12/31/26 MYR 62.07
SENAI-DESARU EXP 1.35 06/30/27 MYR 60.71
SENAI-DESARU EXP 1.35 12/31/27 MYR 59.29
SENAI-DESARU EXP 1.35 12/31/29 MYR 54.10
SENAI-DESARU EXP 1.35 06/28/30 MYR 53.26
SENAI-DESARU EXP 1.35 12/31/30 MYR 52.37
SENAI-DESARU EXP 1.35 06/30/31 MYR 51.50
UNIMECH GROUP BH 5.00 09/18/18 MYR 1.10
PHILIPPINES
-----------
BAYAN TELECOMMUN 13.50 07/15/06 USD 22.75
BAYAN TELECOMMUN 13.50 07/15/06 USD 22.75
SINGAPORE
---------
AXIS OFFSHORE PT 7.54 05/18/18 USD 70.45
BAKRIE TELECOM P 11.50 05/07/15 USD 4.12
BAKRIE TELECOM P 11.50 05/07/15 USD 4.12
BERAU CAPITAL RE 12.50 07/08/15 USD 65.00
BERAU CAPITAL RE 12.50 07/08/15 USD 62.93
BLD INVESTMENTS 8.63 03/23/15 USD 9.50
BUMI CAPITAL PTE 12.00 11/10/16 USD 27.50
BUMI CAPITAL PTE 12.00 11/10/16 USD 26.35
BUMI INVESTMENT 10.75 10/06/17 USD 27.38
BUMI INVESTMENT 10.75 10/06/17 USD 27.13
ENERCOAL RESOURC 6.00 04/07/18 USD 15.38
INDO INFRASTRUCT 2.00 07/30/10 USD 1.88
OSA GOLIATH PTE 12.00 10/09/18 USD 68.00
SWIBER HOLDINGS 7.13 04/18/17 SGD 74.50
THAILAND
--------
G STEEL PCL 3.00 10/04/15 USD 4.05
MDX PCL 4.75 09/17/03 USD 37.25
VIETNAM
-------
DEBT AND ASSET T 1.00 10/10/25 USD 58.77
BANK FOR INVESTM 10.20 05/19/21 VND 1.00
*********
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 ***