/raid1/www/Hosts/bankrupt/TCRAP_Public/150827.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, August 27, 2015, Vol. 18, No. 169
Headlines
A U S T R A L I A
BEERWAH RSL: Club Closes Doors; To Call in Liquidators
BLUESCOPE STEEL: Port Kembla to Get Government Financial Support
BRISCONNECTIONS: Transurban Frontrunner Buyer for AirportLink
J & R TRAINING: First Creditors' Meeting Set For Sept. 2
MINERA GOLD: In Administration; First Meeting Set for Sept. 4
ONSITE RENTAL: S&P Revises Outlook to Negative; Affirms 'B' ICR
PACIFIC NONWOVENS: CSR Martini Acquires Three Sites
TERRITORY RECYCLING: First Creditors' Meeting Set For Sept. 2
C A M B O D I A
CAMBODIA: Healthy Growth Supports B2 Issuer Rating, Moody's Says
C H I N A
CHINA: Cuts Interest Rates as Concerns Mount Over Economy
CHINA LESSO: Fitch Hikes Long-Term Issuer Default Rating to 'BB+'
CHINA SHIANYUN: Reports $991,000 Net Income for Second Quarter
GENERAL STEEL: Reports Second Quarter 2015 Financial Results
GREENTOWN CHINA: Moody's Rates USD500MM Sr. Unsecured Notes Ba3
KU6 MEDIA: Receives Noncompliance Notice From NASDAQ
I N D I A
AJANTA INDIA: CRISIL Suspends 'D' Rating on INR160MM Cash Loan
APS POWERTECH: CRISIL Suspends B Rating on INR42MM Cash Loan
ASHAPURA INFRASTRUCTURE: CRISIL Reaffirms B+ INR55MM Loan Rating
BEETA POLY: CARE Assigns B+ Rating to INR8.50cr LT Bank Loan
BEST CROP: CRISIL Suspends B- Rating on INR45MM Cash Loan
BHARTIYA SAMRUDDHI: CRISIL Reaffirms D Rating on INR1.23BB Loan
BLUE STAR: CRISIL Assigns 'C' Rating to INR125MM Cash Loan
C.M. INDUSTRIES: CRISIL Assigns B Rating to INR50MM Cash Loan
CORPORATE POWER: Ind-Ra Withdraws 'IND C' Rating on Term Loans
DEV COTTON: CARE Lowers Rating on INR15.34cr LT Loan to 'D'
GNANDRUM ENTERPRISES: CARE Rates INR4.90cr LT Bank Loan at B+
GUPTA ENTERTAINMENT: CRISIL Rates INR95MM LT Loan at 'B'
GURUNANAK INDUSTRIES: Fitch Affirms 'IND B-' LT Issuer Rating
JAGAT AGRO: CRISIL Suspends B Rating on INR54.5MM Cash Loan
JINDAL OVERSEAS: Ind-Ra Assigns 'IND BB' Long-Term Issuer Rating
KASTURI OVERSEAS: CRISIL Assigns B+ Rating to INR12.5MM Loan
KINGFISHER INDUSTRIES: CRISIL Suspends B+ Rating on INR70MM Loan
MMS STEEL: Ind-Ra Assigns INR180MM Loan LT 'IND BB+' Rating
NAVRAN ADVANCED: CRISIL Suspends 'D' Rating on INR233MM Loan
P.S. SETH: CARE Assigns B+ Rating to INR17cr LT Bank Loan
PRABHAT FERTILIZER: CRISIL Suspends B+ Rating on INR130MM Loan
PRISTINE SWITCHGEARS: CRISIL Suspends B Rating on INR65MM Loan
R KUKREJA: CARE Revises Rating on INR8.92cr LT Loan to B+
RBM INDUSTRIES: Ind-Ra Assigns 'IND BB-' Long-Term Issuer Rating
RSN BALAJI: Ind-Ra Assigns 'IND B+' Long-Term Issuer Rating
SALEM AUTOMECH: CRISIL Reaffirms B+ Rating on INR80MM Loan
SAM INDUSTRIAL: CRISIL Assigns B- Rating to INR75MM Cash Loan
SANSAR TEXTURISERS: CRISIL Assigns B+ Rating to INR350MM Loan
SEAGA INDIA: CRISIL Suspends B+ Rating on INR75MM Cash Loan
SHANKAR SOYA: CARE Revises Rating on INR6.35cr Bank Loan From 'B'
SHEEL FOODS: CRISIL Suspends B- Rating on INR200MM LT Loan
SHREEJI ENTERPRISE: CRISIL Suspends B+ Rating on INR100MM Loan
SHUBHANGI SALES: CRISIL Suspends B Rating on INR50MM Loan
SINGH CYCLE: CRISIL Assigns B+ Rating to INR42.5MM Loan
SRI RAJESHWARA: CRISIL Suspends B Rating on INR65.3MM LT Loan
SUMAN AGRITECH: CARE Assigns 'D' Rating to INR32.28cr LT Loan
SUVARNA FIBROTECH: CRISIL Suspends 'D' Rating on INR86MM Loan
UTKAL ENERGY: CRISIL Suspends B+ Rating on INR200MM Cash Loan
VHV BEVERAGES: CRISIL Suspends B Rating on INR155.7MM Term Loan
WALSON RETAILS: CRISIL Suspends 'D' Rating on INR275MM Loan
N E W Z E A L A N D
MERCER GROUP: Annual Loss Widens to NZ$6.7 Million
WYNYARD GROUP: 1H Loss Widens to NZ$17.6 Million
V I E T N A M
VIETNAM: Stability Supports B1 Govt. Bond Rating, Moody's Says
X X X X X X X X
* Emerging Markets Hit Hard as Global Rout Continues
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A U S T R A L I A
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BEERWAH RSL: Club Closes Doors; To Call in Liquidators
------------------------------------------------------
Janine Hill at Sunshine Coast Daily reports that financial
difficulties have forced the Beerwah RSL Club to close four years
after a messy dispute which saw more than 3,000 of its supporters
leave.
The club closed its doors on July 6 and the sub-branch moved its
belongings and memorabilia out of the building last week, the
report relates.
According to the report, Beerwah-Peachester RSL president Gavin
Smith said he could not discuss how much money the club owed.
However, he hoped the sale of the property would cover all debts
and allow the sub-branch to re-establish elsewhere, the report
says.
Sunshine Coast Daily relates that Mr Smith said the club had been
struggling for some time but had never recovered from a split four
years ago which saw the citizens or supporters club merge with the
Glasshouse Country Bowls Club.
The RSL borrowed AUD100,000 to refit the building and re-opened
the club premises a few months later but Mr Smith said it was
never able to make up the lost ground, according to the report.
"There was a community backlash. Some people came back but the
majority didn't," the report quotes Mr. Smith as saying. "We were
only just building it up again when everything, Australia-wide, in
the last 12 months has just gone dead as far as pubs and clubs are
going."
Mr Smith said drink-driving laws and taxes on gambling and alcohol
were making it tougher for pubs and clubs, the report adds.
People also had less money for "luxuries" such as food, alcohol
and entertainment. Mr Smith said road changes which took through-
traffic out of Beerwah had also contributed to fewer people
spending money in the town, the report relays.
Sunshine Coast Daily adds that Mr Smith said he expected a special
general meeting would be called to appoint a liquidator within
weeks.
BLUESCOPE STEEL: Port Kembla to Get Government Financial Support
----------------------------------------------------------------
Melissa Clarke and Dan Conifer at ABC News report that BlueScope
Steel's struggling Port Kembla steelworks in New South Wales may
get financial support from the Federal Government.
ABC News says Australia's biggest steel factory is in trouble, and
BlueScope Steel plans to shed 500 jobs from its workforce of
around 5,000.
According to the report, Industry Minister Ian Macfarlane flagged
that the Commonwealth was prepared to intervene, given the impact
the job losses would have on the Illawarra region.
"It has to be complete and holistic approach, but the Commonwealth
is prepared to sit down and listen and see what we can do to
assist the region transition," ABC News quotes Mr. Macfarlane as
saying.
The report relates that Mr. Macfarlane has arranged a meeting with
BlueScope Steel, the state and local governments, unions and the
local university for crisis talks in Wollongong on
September 7.
"We want to see what sort of economic plan can be laid down for
the Illawarra to assist it through the transition that it will
have to go through," he said.
ABC News notes that the Coalition has a policy against offering
financial lifelines to struggling businesses, having rejected
requests for industry assistance from Coca-Cola Amatil, SPC
Ardmona and Qantas, and winding down assistance for auto makers.
Mr Macfarlane indicated any assistance would be to help reduce the
region's reliance on steel production, the report relays.
"What we are seeing is a transition to newer, higher value-add
. . . jobs industry," the report quotes Mr. Macfarlane as saying.
"We want to make sure that whilst we understand it is a very
difficult time for the region, that they transition as quickly as
they can to long-term high value jobs."
BlueScope is an Australian-based manufacturer and distributor of a
range of steel products for the building, construction,
manufacturing and automotive industries. It manufactures and
distributes down, mid and upstream products for the domestic and
export markets. It was separated from BHP in 2001 on BHP's merger
with mining house Billiton plc, and listed on the Australian Stock
Exchange in 2002.
BRISCONNECTIONS: Transurban Frontrunner Buyer for AirportLink
-------------------------------------------------------------
Glen Norris at The Courier-Mail reports that the operator of the
Legacy Way and Clem7 tunnels has emerged as the frontrunner to buy
the beleaguered AirportlinkM7 at a fraction of what it cost to
build.
The Courier-Mail relates that Transurban is mulling a bid for the
6.7 km link to the airport that went into receivership in 2013
with debts of AUD3 billion.
According to the report, receivers PPB Advisory on August 23
advertised for expressions of interest in Airportlink, with offers
to be submitted by August 28. It is expected the price tag for
AirportLink, which cost about AUD3.8 billion to build, could be in
the AUD2 billion range, the report notes.
The Courier-Mail relates that Morningstar analyst Adrian Atkins
said Transurban were the likely buyers of the road, given they
already owned most of the toll roads around Brisbane.
"There is a chance that some big fund from Asia or the US could
come in but Transurban is the logical buyer," the report quotes Mr
Atkins as saying.
The Courier-Mail notes that Airportlink joined a long list of
failed toll road projects around Australia when bullish forecasts
of traffic flow failed to materialise.
RiverCity's Clem Jones Tunnel was sold to Queensland Motorways in
December 2013 after the company collapsed, while Transurban picked
up Sydney's Cross City Tunnel in March 2014.
"These tunnels were planned before the Global Financial Crisis and
they just had these ridiculous forecasts for traffic flow," Mr
Atkins, as cited by The Courier-Mail, said.
BrisConnections, the original company operating the toll road, had
forecast up to 135,000 vehicles a day would use the toll road, the
report says. However, in the three months to the end of June it
attracted average daily traffic of only 51,577.
A Transurban spokesman said the company was interested in "taking
a look" at the toll road but declined to comment further, the
report adds.
Australia-based BrisConnections Group (ASX:BCSCA) --
http://www.brisconnections.com.au/-- is engaged in designing,
constructing, operating, maintaining and financing Airport Link in
Australia. Airport Link is a 6.7 kilometer toll road, mainly
underground, connecting the North-South Bypass Tunnel, Inner City
Bypass and local road network at Bowen Hills, to the northern
arterials of Gympie Road and Stafford Road at Kedron, Sandgate
Road and the East West Arterial leading to the airport.
David McEvoy, Christopher Hill, and Michael Owen of PPB Advisory
were appointed as Receivers and Managers to the BrisConnections
Group, the owner and operator of the AirportlinkM7 toll road on
Feb. 19, 2013. This follows the appointment of partners of
McGrathNicol as Voluntary Administrators by the Board of
BrisConnections Group.
As reported in TCR-AP on Feb. 20, 2013, Yahoo!7, citing a release
to the ASX, said BrisConnections went into administration citing
low traffic levels and debts worth more than the tunnel.
BrisConnections entered negotiations to restructure its debt, but
the board was told lenders were not prepared to support the
proposals, according to Yahoo!7.
J & R TRAINING: First Creditors' Meeting Set For Sept. 2
--------------------------------------------------------
Gavin Moss and Nick Combis of Vincents Chartered Accountants were
appointed as administrators of J & R Training Services Pty Ltd,
formerly trading as "JNR Security Services" on Aug. 21, 2015.
A first meeting of the creditors of the Company will be held at
The Crow's Nest Room, The Esplanade Hotel, 2-4 Anderson Street, in
Port Hedland, West Australia, on Sept. 2, 2015, at 10:00 a.m.
MINERA GOLD: In Administration; First Meeting Set for Sept. 4
-------------------------------------------------------------
Darren Gordon Weaver and Martin Bruce Jones of Ferrier Hodgson
were appointed as administrators of Minera Gold Limited on Aug.
25, 2015.
"The Administrators are working with the directors in reviewing
the Company's operations and financial position including
conferral with the Company's stakeholders to formulate potential
strategies to preserve and restructure the Company and its
underlying Peruvian operations," Ferrier Hodgson said.
"All listed securities in the Company were suspended on August 19
at the request of the Company. While the Company is in
administration the shares will remain suspended. Shareholders are
unable to transfer their shares during the administration without
the consent of the Administrators or the Court."
A first meeting of the creditors of the Company will be held at
Ferrier Hodgson, Level 28, 108 St Georges Terrace, in Perth, on
Sept. 4, 2015, at 4:00 p.m.
Minera Gold Limited -- http://www.mundominerals.com-- is an
Australia-based company. The Company engaged in the exploration
and development of gold projects. The Company owns and operates
gold and copper toll processing plant in Nazca Ocona region of
southern Peru. The Company's producing mines are the Torrecillas
Project and the Tumi Project. These two projects include gold,
copper, silver and molybdenum mineralisation. The Company's assets
are the 100% owned Torrecillas Gold Project in Peru and the Crista
Open Pit Gold Project in Brazil. The Company's Torrecillas Gold
Project is located in south-eastern Peru within the prolific
Nazca-Ocona geological belt and comprising approximately 13,000
hectares of tenements. The Company's Crista Open Pit Gold Project
is located in Southern Brazil. The Company also includes Engenho
Gold Project, which is located in the State of Minas Gerais. The
Company's Engenho Gold Project includes deposits and exploration,
such as Crista, Olhos and Mazorca.
ONSITE RENTAL: S&P Revises Outlook to Negative; Affirms 'B' ICR
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it has revised its
outlook on the issuer credit rating of Australia-based equipment
rental provider Onsite Rental Group to negative, from stable. At
the same time, S&P affirmed its 'B' corporate credit rating, 'B'
issue credit rating, and recovery rating of '3' on Onsite's
US$320 million, first-lien, senior secured, Term Loan B issue.
"The negative outlook reflects our view that challenging trading
conditions and limited growth prospects are likely to place
downward pressure on Onsite's earnings in the short-to-medium
term," said Standard & Poor's credit analyst Minh Hoang.
As a result, S&P expects leverage to remain elevated through
fiscal 2015 and fiscal 2016 with limited buffer in the company's
credit metrics at the current rating level. It also reflects
S&P's concerns that the company will be subject to step-down
covenants in September 2015, during which the company will be
operating with diminished covenant headroom and limited buffer for
further underperformance.
S&P assess Onsite's business risk profile as "weak", reflecting
the company's relatively small size globally, and its
participation in the highly competitive, cyclical, and fragmented
equipment-rental industry. Despite the company's small size
relative to global equipment rental companies that S&P rates
globally, the company maintains its position as the second-largest
business-to-business player in Australia in the general equipment
rental industry.
The company maintains a relatively diversified end-market exposure
to liquefied natural gas, resources, non-residential, and
residential construction and maintenance, and other sectors. Its
ability to shift equipment among different end-markets and around
Australia as required has resulted in relatively stable
utilization rates over the past few years, which should improve by
about 3% for the year ended June 30, 2015.
Despite maintaining robust utilization levels, Onsite's revenue
and earnings have weakened due to pricing pressure stemming from
soft trading conditions, subdued end-market demand, and
competitively contested contracts. Under current trading
conditions, S&P expects Onsite's earnings to remain under pressure
in the short-to-medium term, resulting in an elevated leverage of
more than 4x through fiscal 2015 and fiscal 2016. S&P notes
management's continued efforts in reducing costs in line with
previous strategic guidance, whereby discretionary capital
expenditure is likely to significantly wound back in fiscal 2016
to mitigate the impact of falling earnings.
Mr. Hoang added: "We could lower the ratings on Onsite if the
company were to encounter any further underperformance which would
lead to a sustained deterioration in its credit metrics,
particularly if its debt to EBITDA were to remain in the high 4x
for an extended period."
A downgrade could also be precipitated by deterioration in the
company's liquidity position and its covenant headroom. In
addition, any future shareholder-friendly initiatives that would
indicate a more-aggressive financial policy would also put the
rating at risk.
S&P could revise the outlook to stable if the company is able to
arrest the downward trend in earnings and restore its covenant
headroom. This could be supported by a debt-to-EBITDA ratio that
is sustained at less than 4x.
PACIFIC NONWOVENS: CSR Martini Acquires Three Sites
---------------------------------------------------
The Administrators of Pacific NonWovens Pty Limited said that the
Bibra Lake, Western Australia and Villawood, New South Wales sites
have been sold as a going concern to CSR Martini Pty Ltd.
CSR Martini Pty Ltd is a subsidiary of CSR Limited listed on the
Australian Securities Exchange and has been operating for the last
two decades in the development, manufacture and marketing of
industrial fibers.
CSR Martini Pty Ltd has also purchased the assets from the Kedron,
Queensland, Coburg and Settlement Road, Thomastown, Victorian
sites.
Administrator Stewart McCallum said he was pleased with the
outcome of the sales process as it has preserved a number of jobs
for employees in New South Wales and Western Australia and is a
good result for creditors of Pacific NonWovens.
Pacific NonWovens manufactures industrial non-woven fibre
products, insulation and related products for industrial
customers. It is also the only operator in Australia of a textile
recycling plant.
Administrators John Lindholm and Stewart McCallum of Ferrier
Hodgson were appointed over the Pacific NonWovens Group of
Companies on May 18, 2015, by the Directors of the Companies.
TERRITORY RECYCLING: First Creditors' Meeting Set For Sept. 2
-------------------------------------------------------------
Blair Pleash & Kathleen Vouris of Hall Chadwick were appointed as
administrators of Territory Recycling Depot Pty Ltd on Aug. 24,
2015.
A first meeting of the creditors of the Company will be held at
will be held at DoubleTree by Hilton Hotel, 82 Barrett Drive, in
Alice Springs, on Sept. 2, 2015, at 2:00 p.m.
===============
C A M B O D I A
===============
CAMBODIA: Healthy Growth Supports B2 Issuer Rating, Moody's Says
----------------------------------------------------------------
Moody's Investors Service says that Cambodia's B2 issuer rating is
supported by healthy growth and a modest debt burden. However,
the country's low per capita income and weak institutional
framework pose sovereign credit challenges.
Moody's conclusions were contained in its just-released credit
analysis "Cambodia, Government of", which examines the sovereign
in four categories: economic strength, which is assessed as "low
(-)"; institutional strength "very low (-)"; fiscal strength
"moderate (-)"; and susceptibility to event risk "moderate (-)".
The report constitutes an annual update to investors and is not a
rating action.
The report notes that Cambodia could see negative spillovers as
China's economy enters a new normal of slower economic growth;
because Cambodia's economy has benefited significantly from
Chinese trade, concessional loans, and investment. Nonetheless,
it stands to gain from the formation of the Association of
Southeast Asian Nations' (ASEAN) Economic Community in December
2015, because the country will gain a foothold in the large and
growing ASEAN market.
Moody's points out that because the country's economy is partially
dollarized, it is vulnerable to changes in US monetary policy.
Nevertheless, the small size of its capital market suggests that
such risks are negligible.
Moody's expects GDP growth to slow marginally from the 7.1%
achieved in 2014. The deceleration is largely owed to trends in
the garment and tourism sectors, the two main drivers of growth.
Inflation will likely also decline in 2015, supported by the fall
in food prices.
Credit-positive developments would include: 1) more prudent fiscal
management that creates room to adapt to any future decline in
concessionary aid; 2) continued strong growth in foreign direct
investment; and 3) steps to address institutional and political
weaknesses.
Downward rating triggers would stem from: 1) a sustained,
structural slowdown in the garment and tourism industries; 2) a
crystallization of contingent liabilities related to the power
sector that could derail fiscal consolidation; 3) persistent
strong credit growth; and 4) political turmoil that undermines
consumer and investor confidence.
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C H I N A
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CHINA: Cuts Interest Rates as Concerns Mount Over Economy
---------------------------------------------------------
Neil Gough and Chris Buckley at The New York Times report that
China's central bank on August 25 cut its benchmark interest rate
and freed banks to lend more, the latest signs of the government's
growing distress over slumping stocks and slowing economic growth.
The New York Times says the central bank's action followed a
global stock market rout in which China led the declines. The main
Shanghai share index plunged an additional 7.6 percent on August
24, to its lowest level this year, signaling that two months'
worth of attempts by the government to prop up stock prices had
limited effect. In early trading on August 26, the index swung
between gains and losses, diminishing investors' hopes for a
strong rebound after the rate cut, the report relates.
On August 25, China's prime minister, Li Keqiang, acknowledged
that the country was feeling the effects of market turbulence, but
insisted that the economy remained sound, according to the report.
"Currently, global economic trends are opaque and confusing, and
market volatility is quite large, and this has had some impact on
the Chinese economy," Mr. Li said, according to a report on
Chinese television news, the New York Times relays. "But
fundamentally the overall stability of the Chinese economy has not
changed, and positive factors sustaining a turn for the better in
the real economy are accumulating."
China, he added, would be able to fulfill its economic goals for
the year. Mr. Li also noted that there would be no continued
depreciation of China's currency, the renminbi, after a sharp
devaluation earlier this month, the New York Times relates. The
currency "can maintain fundamental stability at a reasonable and
balanced level," he said.
Even so, the tumult has prompted further action by the leadership,
the report relays.
In an aggressive two-part move on August 25, the central bank
lowered the benchmark lending and deposit rates by 0.25 of a
percentage point, the report says. It also cut the so-called
reserve requirement ratio -- the amount of cash that banks are
required to hold in reserve -- by 0.5 of a percentage point.
It was China's fifth interest rate cut since November, and the
fourth reduction of the reserve ratio since February, according to
the report. The New York Times relates that the central bank made
a similar tandem cut to both rates in June, when the stock market
first began to fall from its peak, but that reduction of the
reserve ratio did not apply to the biggest banks.
According to the report, cutting interest rates may help lift the
economy, as signs have proliferated in recent weeks that growth is
slowing faster than official data suggests. A survey released on
August 21 showed that output in China's manufacturing industry
contracted in the first three weeks of August at the fastest pace
since the depths of the financial crisis, the report relays.
"Currently, there are persisting downward pressures on the
country's economic growth," the central bank, the People's Bank of
China, said in an explanation that accompanied the announcement on
August 25. "There has also been quite large volatility in global
capital markets recently, and monetary policy tools need to be
applied more flexibly."
The New York Times relates that the central bank also made a step
toward interest rate liberalization by removing the upper limit on
interest rates for fixed-term deposits of more than one year. With
inflation in China generally low, the bank said the time was ripe
for such steps. "This marks another important step forward in
interest rate marketization reforms for our country," it said.
While the moves may bolster markets, the central bank most likely
had another focus in cutting the reserve ratio, the report says.
The New York Times notes that like many emerging economies across
the world, China in recent months has been fighting capital
outflows, which rose to a record $70 billion in July. And they
probably increased this month after China's surprise devaluation
of the renminbi. Investors are moving their money out of the
country because they are worried that the currency will fall
further and they are seeking better returns elsewhere.
At the same time, China has been struggling with deflation, or
falling prices, in its industrial sector for more than three
years. Injecting more funds by freeing banks to lend more should
help soften the blow of deflation and stem capital outflows, the
report states.
Li-Gang Liu, the chief China economist at the Australia and New
Zealand Banking Group, estimated that the reserve ratio cut would
immediately insert about 650 billion renminbi, or about $100
billion, into the banking system, according to The New York Times.
The cut "will spur bank lending and lower firms' funding costs,"
Mr. Liu wrote in a research note on August 25 after the central
bank's announcement. But Mr. Liu doubted these latest measures
alone would be enough to meet the government's economic growth
target of about 7 percent this year. He continued, "Further
monetary policy easing by the People's Bank of China is still in
the cards," the report relays.
CHINA LESSO: Fitch Hikes Long-Term Issuer Default Rating to 'BB+'
-----------------------------------------------------------------
Fitch Ratings has upgraded China-based plastic pipes and fittings
manufacturer China Lesso Group Holdings Limited's (Lesso) Long-
Term Issuer Default Rating (IDR) and senior unsecured rating to
'BB+' from 'BB'. The Outlook is Stable.
The upgrade reflects Lesso's consistent track record in delivering
strong cash flow generation, maintaining stable EBITDA margin and
keeping leverage low amid weak macroeconomic conditions and
volatility in raw material prices.
KEY RATING DRIVERS
Strong Performance Amid Volatility: Revenue increased by 7.0% yoy
in 1H15 while overall gross margin expanded to 27.1% in 1H15 from
25.0% in 1H14 (25.6% in 2014) because Lesso used its position as
China's largest plastic pipe manufacturer by total sales to keep
average selling prices firm while raw material prices fell
steeply. Lesso's EBITDA margin also expanded to 18.0% in 1H15 from
16.0% in 1H14 (16.2% in 2014). Lesso's leverage, measured by funds
from operation (FFO)-adjusted net leverage, remained at 0.3x at
end-2014 (0.4x at end-2013), which is low compared with credits in
the 'BB' rating category.
Positive Free Cash Flow: Lesso recorded positive free cash flow
for the second consecutive year in 2014 despite higher-than-
expected capex, driven mostly by EBITDA growth and better working
capital management as inventory days improved
Infrastructure Building to Support Demand: Demand from government
infrastructure construction will be the main revenue driver for
Lesso as demand from the property market weakens. We expect
infrastructure-related sectors to continue to account for a
greater share of Lesso's revenue than the homebuilding sector.
Lesso is expected to benefit from greater investment in water
conservancy projects and an increase of major civil infrastructure
projects that are part of the government's urbanisation drive.
Geographic Concentration a Constraint: Approximately 60% of
Lesso's revenue in 1H15 (58% in 2014) came from southern China,
one of the most developed markets in the country. However, this
geographic concentration presents a business risk and is a
constraint on Lesso's IDR.
KEY ASSUMPTIONS
Fitch's key assumptions within our rating case for the issuer
include:
-- High single-digit revenue growth in between 2015 and 2018
driven by increased demand from government infrastructure
projects.
-- Capex to remain at around CNY1bn between 2015 and 2018
-- EBITDA margin to remain at around 17%-18% between 2015 and
2018.
RATING SENSITIVITIES
Negative: Future developments that may, individually or
collectively, lead to negative rating action include:
-- EBITDA margin sustained below 15%
-- FFO net leverage sustained above 1.0x
-- Sustained negative free cash flow
Positive: Future developments that may, individually or
collectively, lead to positive rating action include:
-- Significant increase in market share in the domestic plastic
pipes and fittings sector and establishment of a strong
presence outside southern China
CHINA SHIANYUN: Reports $991,000 Net Income for Second Quarter
--------------------------------------------------------------
China Shianyun Group Corp., Ltd. filed with the Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing
net income of $991,000 on $24,382 of revenues for the three months
ended June 30, 2015, compared to a net loss of $239,042 on $57,630
of revenues for the same period during the prior year.
For the six months ended June 30, 2015, the Company reported net
income of $1.11 million on $806,800 of revenues compared to a net
loss of $949,000 on $159,000 of revenues for the same period in
2014.
As of June 30, 2015, the Company had $3.79 million in total
assets, $4.89 million in total liabilities, and a stockholders'
deficit of $1.10 million.
"As of June 30, 2015, the Company has accumulated deficits of
$4,588,815, a negative working capital of $3,317,617. The Company
may need additional cash resources to operate during the upcoming
12 months, and the continuation of the Company may be dependent
upon the continuing financial support of investors, directors
and/or stockholders of the Company. However, there is no assurance
that equity or debt offerings will be successful in raising
sufficient funds to assure the eventual profitability of the
Company. The financial statements do not include any adjustments
relating to the recoverability and classification of recorded
assets, or the amounts of and classification of liabilities that
might be necessary in the event the Company cannot continue in
existence," the Company said in the filing.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/xwq22t
About China Shianyun
China Shianyun Group Corp., Ltd, formerly known as China Green
Creative, Inc., develops and distributes consumer goods, including
herbal teas, health liquors, meal replacement products, and cured
meat using ecological breeding methods in China. The Company is
based in Shenzhen Guandong Province, China.
China Shianyun reported a net loss of $1.33 million on $210,000 of
revenues for the year ended Dec. 31, 2014, compared to a net loss
of $382,000 on $2 million of revenues for the year ended Dec. 31,
2013.
AWC (CPA) Limited, in Hong Kong, China, issued a "going concern"
qualification on the consolidated financial statements for the
year ended Dec. 31, 2014, noting that the Company has a
significant accumulated deficits and negative working capital.
These factors raise substantial doubt about the Company's ability
to continue as a going concern.
GENERAL STEEL: Reports Second Quarter 2015 Financial Results
------------------------------------------------------------
General Steel Holdings, Inc., announced its financial results for
the second quarter ended June 30, 2015.
Prior to this, General Steel was unable to file its quarterly
report for the quarter ended June 30, 2015, within the prescribed
time period saying additional time was required to complete the
preparation of the Company's financial statements in time for
filing. The Company had said that the Quarterly Report will be
filed as soon as practicable.
Ms. Yunshan Li, chief executive officer of General Steel
commented, "Since being appointed as CEO of General Steel in late
July, my top priority has been reviewing and integrating the
Company's resources in order to chart the best course for our
business transformation. During our strategic reviews, we noted
that General Steel is one of the most efficient steel producers in
China and that it has excellent experience, resources and
expertise. And as we further evaluated General Steel's total value
chain, we believe that the more an organization moves upstream
towards energy-saving and environmental protection solutions, the
higher its return on investments and sustainability will be. As
such, we are very excited about the potential possibilities for
the Company in the clean-tech and environmental protection
sector."
Ms. Li added, "China is now the world's largest energy consumer
and has the largest number of coal-fired power plants and steel
mills. The Chinese government is fully aware of the impact from
fossil-fuel pollution and is launching the tightest-ever
restrictions on emission standards. In my view, General Steel not
only has its own demand for clean-tech and environmental
protection solutions, but also rich industry resources to promote
clean-tech adoption. We feel confident that the combination of my
direct knowledge, expertise, and access to emission reduction
technology and GSI's excellent experience, resources and expertise
will enable us to successfully produce and sell leading clean-tech
solutions in China."
John Chen, chief financial officer of General Steel, commented,
"As we forge ahead with our business transformation, in the second
quarter we proactively revalued our steel-manufacturing equipment
in Longmen Joint Venture, and took a write-down of $973.9 million
in its carrying value to better reflect the current market
conditions. We believe this will lighten future depreciation
burden and better enable the Company to adopt new business
models."
As of June 30, 2015, the Company had cash and restricted cash of
approximately $266.5 million, compared to $367.3 million as of
Dec. 31, 2014. The Company had an inventory balance of $153.1
million as of June 30, 2015, compared to $156.3 million as of
Dec. 31, 2014.
A full-text copy of the press release is available at:
http://is.gd/7QDcYq
About General Steel Holdings
General Steel Holdings, Inc., headquartered in Beijing, China,
produces a variety of steel products including rebar, high-speed
wire and spiral-weld pipe. General Steel --
http://www.gshi-steel.com/-- has operations in China's Shaanxi
and Guangdong provinces, Inner Mongolia Autonomous Region and
Tianjin municipality with seven million metric tons of crude steel
production capacity under management.
General Steel reported a net loss of $78.3 million on
$1.9 billion of sales for the year ended Dec. 31, 2014, compared
with a net loss of $42.6 million on $2 billion of sales for the
year ended Dec. 31, 2013.
As of March 31, 2015, the Company had $2.5 billion in total
assets, $3.14 billion in total liabilities and a $637 million
total deficiency.
Friedman LLP, in New York, issued a "going concern" qualification
on the consolidated financial statements for the year ended
Dec. 31, 2014, citing that the Company has an accumulated deficit,
has incurred a gross loss from operations, and has a working
capital deficiency at Dec. 31, 2014. These conditions raise
substantial doubt about the Company's ability to continue as a
going concern.
GREENTOWN CHINA: Moody's Rates USD500MM Sr. Unsecured Notes Ba3
---------------------------------------------------------------
Moody's Investors Service has assigned a definitive Ba3 rating to
the USD500 million senior unsecured notes issued by Greentown
China Holdings Limited.
The outlook for the rating is positive.
RATINGS RATIONALE
Moody's assignment of the definitive rating follows the company's
completion of its notes issuance, the final terms and conditions
of which are consistent with Moody's expectations.
The provisional ratings were assigned on July 21, 2015, and
Moody's ratings rationale was set out in a press release published
on the same day. The proceeds of the notes will be used to
refinance existing notes and for general working capital purposes.
The principal methodology used in this rating was Homebuilding And
Property Development Industry published in April 2015.
Greentown China Holdings Limited is one of China's major property
developers, with a primary focus in Hangzhou City and Zhejiang
Province. At end-2014, the company had 98 projects with a total
gross floor area of 34.89 million square meters. Of this total,
19.06 million square meters were attributable to the company.
KU6 MEDIA: Receives Noncompliance Notice From NASDAQ
----------------------------------------------------
Ku6 Media Co., Ltd., received a letter from The NASDAQ Stock
Market notifying it that for the prior 30 consecutive business
days, the Company's listed securities failed to maintain a minimum
market value of US$50,000,000, and the Company's publicly held
securities failed to maintain a minimum market value of
$15,000,000, respectively. Consequently, deficiencies exist with
regard to the requirements for continued listing pursuant to
NASDAQ Listing Rule 5450(b)(2)(A) and NASDAQ Listing Rule
5450(b)(2)(C).
NASDAQ further stated that in accordance with NASDAQ Listing Rules
5810(c)(3)(C) and 5810(c)(3)(D), the Company will be provided 180
calendar days, or until Feb. 9, 2016, to regain compliance with
the MVLS Rule and the MVPHS Rule. NASDAQ will deem the Company to
have regained compliance under the MVLS Rule if at any time before
Feb. 9, 2016, the market value of the Company's listed securities
closes at US$50,000,000 or more for a minimum of ten consecutive
business days. NASDAQ will deem the Company to have regained
compliance under the MVPHS Rule if at any time before Feb. 9,
2016, the market value of the Company's publicly held securities
closes at US$15,000,000 or more for a minimum of ten consecutive
business days.
These notifications do not impact the listing and trading of the
Company's securities at this time. However, the NASDAQ letters
also state that, if the Company does not regain compliance with
the MVLS Rule or the MVPHS Rule by Feb. 9, 2016, the Company will
receive written notification from NASDAQ that the Company's
securities are subject to delisting. The Company is reviewing its
options for regaining compliance with the MVLS Rule and MVPHS Rule
and for remedying other future potential non-compliances with
Nasdaq continued listing requirements, including the requirement
to maintain a minimum bid price of at least $1.00 per share. There
can be no assurance that the Company will be able to regain
compliance with the MVLS Rule, MVPHS Rule or other Nasdaq
continued listing requirements in a timely fashion.
About Ku6 Media
Ku6 Media Co., Ltd. -- http://ir.ku6.com/-- is an Internet video
company in China focused on User-Generated Content. Through its
premier online brand and online video Web site,
http://www.ku6.com/,Ku6 Media provides online video uploading and
sharing service, video reports, information and entertainment in
China.
Ku6 Media reported a net loss of $10.7 million in 2014 following a
net loss of $34.4 million in 2013.
As of March 31, 2015, the Company had US$8.6 million in total
assets, US$13.5 million in total liabilities and a US$4.9 million
total shareholders' deficit.
PricewaterhouseCoopers Zhong Tian LLP, in Shanghai, the People's
Republic of China, issued a "going concern" qualification on the
consolidated financial statements for the year ended Dec. 31,
2014, citing that the Company's recurring losses, negative working
capital, net cash outflows, and uncertainties associated with
significant changes made, or planned to be made, in respect of the
Company's business model, raise substantial doubt about the
Company's ability to continue as a going concern.
=========
I N D I A
=========
AJANTA INDIA: CRISIL Suspends 'D' Rating on INR160MM Cash Loan
--------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Ajanta India Ltd (AIL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 10 CRISIL D
Cash Credit 160 CRISIL D
Letter of Credit 100 CRISIL D
Term Loan 46 CRISIL D
The suspension of ratings is on account of non-cooperation by AIL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, AIL is yet to
provide adequate information to enable CRISIL to assess AIL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
AIL is engaged in manufacturing and marketing of electric lamps,
including CFLs and Light Emitting Diode (LED) lights, under the
brand 'Ajanta'.
APS POWERTECH: CRISIL Suspends B Rating on INR42MM Cash Loan
------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
APS Powertech India Private Limited (APS).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 50 CRISIL A4
Cash Credit 42 CRISIL B/Stable
The suspension of ratings is on account of non-cooperation by APS
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, APS is yet to
provide adequate information to enable CRISIL to assess APS's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.
Incorporated in 2005, APS is engaged in manufacturing and
repairing of distribution transformers. The company's
manufacturing facility is in Lucknow (Uttar Pradesh). APS is
promoted and managed by Mr. Pradeep Mittal and Mr. Sumit Mittal.
ASHAPURA INFRASTRUCTURE: CRISIL Reaffirms B+ INR55MM Loan Rating
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Ashapura Infrastructure
Company (AIC) continue to reflect AIC's small scale of operations
in the intensely competitive construction industry, the high
degree of geographical and customer concentration in its revenue
profile, and its small net worth and limited financial
flexibility. However, AIC's financial risk profile remains above
average, backed by low gearing and robust debt protection metrics.
The ratings also factor in the extensive experience of the
partners in the construction industry, and the firm's efficient
working capital management.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 50 CRISIL A4 (Reaffirmed)
Cash Credit 55 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that AIC will maintain its established market
position in the construction industry over the medium term,
supported by the partners' extensive industry experience. The
outlook may be revised to 'Positive' if there is a sustained
increase in the scale of operations, while the profitability
margin remains stable; or a substantial increase in the net worth
on the back of sizeable capital additions by the partners.
Conversely, the outlook may be revised to 'Negative' in case of a
steep decline in the profitability margin, or significant
weakening in capital structure caused most likely by a large debt-
funded capital expenditure or stretch in working capital cycle.
Update
AIC's net sales reduced marginally to INR244.9 million for 2014-15
(refers to financial year, April 1 to March 31) from INR255
million in 2013-14, mainly driven by decline in quantum of tenders
received. However, the profitability improved to about 12.7 per
cent from 8-10 per cent in the past, on account of reduced
dependence on subcontracting of orders, and is expected to remain
at similar levels over the medium term. The operations continue to
be working capital intensive, with gross current assets estimated
at 212 days as on March 31, 2015, driven mainly by sizeable work
in process inventory as on March 31, 2015. The stretch in working
capital cycle has resulted in moderate bank limit utilisation, at
an average of 79 per cent over the 12 months through March 2015.
The interest coverage ratio was comfortable at 4.6 times for 2014-
15. In the absence of debt funded capital expenditure, the gearing
and net worth are expected to remain comfortable at 0.72 times and
INR91.6 million, as on March 31, 2015.
AIC's profit after tax (PAT) and sales are estimated at INR14.4
million and INR244.9 million, respectively, for 2014-15 (Rs.6
million and INR255 million, respectively, for 2013-14).
Set up in 2007, AIC is a partnership firm engaged in construction
and rehabilitation of roads in Gujarat. The firm is registered as
a Class-AA contractor with the Roads and Buildings Department of
the Government of Gujarat. The firm has three partners: Mr.
Danubha Jadeja, Mr. Kishorsinh Jadeja, and Mr. Vijaysinh Jadeja.
BEETA POLY: CARE Assigns B+ Rating to INR8.50cr LT Bank Loan
------------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank
facilities of Beeta Poly Coats Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 8.50 CARE B+ Assigned
Short term Bank Facilities 2.50 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Beeta Poly Coats
Private Limited (BPCP) are primarily constrained by its initial
years of operations with small scale, low profitability margins
and leveraged capital structure. The ratings are further
constrained by the susceptibility of margins to volatile raw
material prices and its presence in highly competitive industry.
The ratings, however, draw comfort from experienced promoter in
the artificial leather industry.
Going forward, the ability of the company to scale up its
operations while improving its profitability margins and capital
structure would be the key rating sensitivities.
Incorporated in 2014, BPCP is promoted by Mr Shyam Lal Banga, Mr
Inderjeet Singh Saluja and Mr Atul Banga. The company started its
commercial operations in September 2014 and is engaged in the
manufacturing of coated textile fabric which is commonly known as
artificial leather (Leatherite). The product finds application in
diverse industries such as footwear's, upholstery, automobile (for
seats and covers), and furniture as well as in textile industry.
The manufacturing facility of the company is located in
Bahadurgarh, Haryana, with an installed capacity of 30 lakh meter
per annum as on March 31, 2015. The key raw material used for
manufacturing of artificial leather are, ie, PVC resins, fabrics,
lubricants, fillers etc, which are majorly procured domestically.
The company has two associate concerns, ie, B.S. International
which is engaged in trading of artificial leather since last two
decades and Beeta Conveyors Private Limited which is engaged in
manufacturing of conveyors belt since 2008.
BPCP reported a PBILDT of INR0.88 crore and total operating income
of INR14.62 crore during 7 months of operations in FY15 (refers to
the period April 1 to March 31).
BEST CROP: CRISIL Suspends B- Rating on INR45MM Cash Loan
---------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of
Best Crop Science (BCS).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 45 CRISIL B-/Stable
Proposed Long Term
Bank Loan Facility 40.6 CRISIL B-/Stable
Term Loan 44.4 CRISIL B-/Stable
The suspension of ratings is on account of non-cooperation by BCS
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, BCS is yet to
provide adequate information to enable CRISIL to assess BCS's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
BCS was established in 2013 as a partnership firm. The firm was
established to manufacture pesticide formulations, plant growth
regulators, bio-pesticides, and bio-fertilizers. Its facility is
in Kathua (Jammu & Kashmir). The firm is promoted and managed by
Mr. Kamal Kumar and Mr. Raj Kumar.
BHARTIYA SAMRUDDHI: CRISIL Reaffirms D Rating on INR1.23BB Loan
---------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Bhartiya
Samruddhi Finance Ltd (BSFL) continues to reflect instances of
delay by BSFL in servicing its debt. The delays were caused by the
company's weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long Term Bank Facility 1,236 CRISIL D (Reaffirmed)
BSFL also has a weak resource profile and asset quality. The
company is financially insolvent and is susceptible to regulatory
and legislative risks associated with the microfinance sector.
However, it benefits from its strong track record in the
microfinance sector.
BSFL, a non-banking financial company promoted by Bhartiya
Samruddhi Investments and Consulting Services Ltd, began
operations in 1997. BSFL provides microfinance (credit and
insurance) services and knowledge-based technical assistance. Its
services are organised under two major heads: livelihood financial
services and common service centres. The company's customers
include small and marginal farmers, rural artisans, micro
enterprises, and federations and co-operatives owned by self-help
groups.
BSFL had assets under management of INR1.96 billion as on
March 31, 2015, against INR2.2 billion as on March 31, 2014. The
company reported a net loss of INR0.23 billion on a total income
of INR0.35 billion for 2014-15 (refers to financial year, April 1
to March 31) against a net loss of INR0.92 billion on a total
income of INR0.43 billion for the previous year.
BLUE STAR: CRISIL Assigns 'C' Rating to INR125MM Cash Loan
----------------------------------------------------------
CRISIL has assigned its 'CRISIL C' rating to the long-term bank
facility of Blue Star Building Materials Private Limited (BSBMPL;
part of the Blue Star group).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 125 CRISIL C
The rating reflects the Blue Star group's stretched liquidity
driven by depressed cash accruals vis-a-vis debt obligations, and
high bank limit utilisation. The rating also factors in the
group's weak financial risk profile, marked by eroded net worth
and weak debt protections, and modest scale of operations. These
rating weaknesses are partially offset by the extensive experience
of the group's promoters in the civil construction industry.
For arriving at its rating, CRISIL has combined the business and
financial risk profiles of BSBMPL and Blue Star Construction Co
(BSCC). This is because the two entities, together referred to as
the Blue Star group, have strong financial and operational
linkages, and are under a common management.
The Blue star group is promoted by Navi Mumbai (Maharashtra)-based
Thakur family. BSCC, a partnership firm established in 1978, is a
civil contractor and constructs and maintains roads. BSBMPL,
incorporated in 1996, manufactures and lays paver blocks.
C.M. INDUSTRIES: CRISIL Assigns B Rating to INR50MM Cash Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facility of C.M. Industries (CMI).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL B/Stable
The rating reflects the firm's weak financial risk profile, marked
by small net worth and a moderate total outside liabilities to
tangible net worth ratio and its exposure to intense industry
competition. These weaknesses are partially offset by the
extensive industry experience of CMI's promoters and the firm's
established relationships with customers.
Outlook: Stable
CRISIL believes that CMI will continue to maintain its business
risk profile over the medium term supported by the extensive
industry experience of its promoters. The outlook may be revised
to 'Positive' in case of a substantial and sustained increase in
the scale of operations and cash accruals of the firm along with
improved working capital management or if there is substantial
improvement in its capital structure. Conversely, the outlook may
be revised to 'Negative' in CMI reports low operating income and
accruals, or if there is further deterioration in its capital
structure or if the firm undertakes a large debt-funded capital
expenditure programme, leading to deterioration in its financial
risk profile, particularly liquidity.
CMI, a proprietorship firm, manufactures oil and oil cakes from
cotton seeds, sells packaged and graded wheat, and trades in other
agricultural commodities such as chana, soybean, maize, and
pulses. The firm also trades in cotton bales. Mr. Anant Goyal is
the proprietor of the firm and also manages the operations.
CORPORATE POWER: Ind-Ra Withdraws 'IND C' Rating on Term Loans
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn the
'IND C(suspended)' rating on Corporate Power Ltd's (CPL) senior
project term loans of INR20,300m and INR23,870m for phases 1 and
2, respectively, and subordinate project term loan of INR1,450
million for phase 1.
The rating has been withdrawn due to lack of adequate information.
Ind-Ra will no longer provide ratings or analytical coverage for
CPL.
Ind-Ra suspended CPL's ratings on Aug. 12, 2014.
DEV COTTON: CARE Lowers Rating on INR15.34cr LT Loan to 'D'
-----------------------------------------------------------
CARE revises the rating assigned to the bank facilities of Dev
Cotton Industries.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 15.34 CARE D Revised
from CARE B+
Rating Rationale
The revision in the rating assigned to the bank facilities of Dev
Cotton Industries (DCI) primarily factors in the irregularity
in servicing of its debt obligations due to weak liquidity
position.
Patan-based (Gujarat) Dev Cotton Industries (DCI) was established
during March 2010 as a partnership firm by four partners Mr
Vasantkumar S Rajgor, Mr Vasudevbhai K Rajgor, Mr Maheshkumar S
Rajgor and Mr Satyakam J Bhatt. DCI is into the business of cotton
ginning and pressing of cotton bales and cotton seed. DCI has an
installed capacity of 6082 Metric Tonnes Per Annum (MTPA) for
cotton bales and 12,166 MTPA for cotton seed.
GNANDRUM ENTERPRISES: CARE Rates INR4.90cr LT Bank Loan at B+
-------------------------------------------------------------
CARE assigns 'CARE B+/CARE A4' ratings to the bank facilities of
Gnandrum Enterprises.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 4.90 CARE B+ Assigned
Short term Bank Facilities 1.77 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Gnandrum
Enterprises (GE) are constrained on account of its weak financial
risk profile marked by fluctuating revenues, thin profitability
margins with a leveraged capital structure, working capital
intensive nature of operations and susceptibility of margins to
foreign exchange fluctuations and change in Government policies.
The ratings also factor in the partnership nature of constitution
and presence in an highly competitive and fragmented agro-trading
segment.
The ratings, however, derive strength from established operations
in the edible oil trading business, long association with a
diversified customer base and growing demand for edible oil.
The ability of the firm to scale up its operations while
effectively managing its working capital is the key rating
sensitivity.
Gnandrum Enterprises (GE) is a partnership firm formed in the May
2003 and based out of Goa. It is engaged in wholesale and retail
trading of edible oil. GE has five partners with Mr. Gnandrum
Nadar being the major partner holding 60% of profit sharing. The
other four partners in the firm are Mr. Vency Sagaya Nadar, Mr.
Francis Kannan, Mr. M Muthaiya and Mr. Kajendran holding 10% each
of profit sharing.
The firm sources its edible oil (majorly palm oil) from domestic
(Goa and Karnataka) as well as foreign markets (Malaysia and
Spain). The firm undertakes packaging and sells them under the
brand names of 'Pure Gold' and 'Mega Gold' through a network of
dealers in the states of Goa and Karnataka.
The major vendors from whom GE procures majority of its
requirements in the domestic market are ADMAgro Industries
India Private Limited, Liberty Oil Limited, Ruchi Soya Industries
Limited ('CARE BBB+' /'CARE A2') and MSD Global. GE benefits from
its associate firm -- Sagaya Stores which is located in Goa and
engaged in trading of groceries for GE.
In FY15, GE earned PAT of INR0.14 crore on a total operating
income of INR28.30 crore against net loss of INR0.25 crore
on a total operating income of INR32.66 crore in FY14 (A).
GUPTA ENTERTAINMENT: CRISIL Rates INR95MM LT Loan at 'B'
--------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facility of Gupta Entertainment Pvt Ltd (GEPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long Term Loan 95 CRISIL B/Stable
The rating reflects GEPL's limited track record of operations and
susceptibility to demand risk. These rating weaknesses are
partially offset by the favourable location of GEPL's mall with
diverse offerings and funding support from promoters.
Outlook: Stable
CRISIL believes that GEPL credit risk profile will continue to
benefit from the favourable location of its mall leading to low
competition, and funding support from its promoters. The outlook
may be revised to 'Positive' if GEPL reports more-than estimated
demand leading to higher-than-expected cash accruals. Conversely,
the outlook may be revised to 'Negative' if there is lower-than-
expected demand leading to a stretched liquidity position. GEPL
would be dependent on timely support from its promoters in the
near term.
GEPL, incorporated in 2011, is promoted by the Gupta family based
out of Barnala (Punjab). GEPL has built a mall consisting of a
multiplex with three screens, banquet hall, fun zone for kids,
restaurants and bar. The multiplex commenced operations in second
half of 2014-15 (refers to financial year, April 1 to March 31)
and the remaining facilities are expected to commence operations
by September 2015.
GURUNANAK INDUSTRIES: Fitch Affirms 'IND B-' LT Issuer Rating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Gurunanak
Industries' (GI) Long-Term Issuer Rating at 'IND B-'. The Outlook
is Stable. The agency has also affirmed GI's INR62.5 million fund-
based working capital limit at Long-term 'IND B-' with a Stable
Outlook.
KEY RATING DRIVERS
The affirmation reflects GI's continued weak credit profile and
tight liquidity position due to high borrowings and interest
obligations. According to the unaudited numbers for FY15, interest
coverage (operating EBITDA/gross interest expense) was 1.1x (FY14:
1.2x), net leverage (total adjusted net debt/operating EBITDAR)
was 10.1x (10.6x) and EBITDA margins were 2.7% (FYE14: 2.8%). The
company reported instances of over utilisation of the working
capital limits for the 12 months ended July 2015 which were
regularised within 1-25 days.
The ratings, however, benefit from nearly two-decade-long
experience of GI's partners in the rice industry.
RATING SENSITIVITIES
A positive rating action could result from an improvement in the
liquidity position of the company.
COMPANY PROFILE
GI was incorporated in 1998 as a partnership firm with four
partners. The firm was, however, reconstituted in 2013 with three
partners -- Boota Singh, Gurucharan Singh and Sarvjeet Singh. It
purchases paddy from farmers and vendors, processes it and sells
it directly to wholesalers in Uttar Pradesh and Delhi under its
brand names Silver Star (superior quality) and BabaBhog (low
grade). GI also exports a considerable amount of its product to
Darsh International, Nepal.
JAGAT AGRO: CRISIL Suspends B Rating on INR54.5MM Cash Loan
-----------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Jagat Agro (Guj) (JA).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 54.5 CRISIL B/Stable
Proposed Long Term
Bank Loan Facility 43.9 CRISIL B/Stable
Term Loan 1.6 CRISIL B/Stable
The suspension of ratings is on account of non-cooperation by JA
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, JA is yet to
provide adequate information to enable CRISIL to assess JA's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
Set up in 2000, JA is a proprietorship firm promoted by Mr. Chetan
Maheshwari, based in Ahmedabad (Gujarat). The firm is mainly
engaged in processing rice; it processes wheat in small quantity.
The firm's manufacturing facility in Ahmedabad has processing
capacity of about 100 tonnes per day.
JINDAL OVERSEAS: Ind-Ra Assigns 'IND BB' Long-Term Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Jindal Overseas
Corporation (JOC) a Long-Term Issuer Rating of 'IND BB'. The
Outlook is Stable. The agency has also assigned JOC's bank
facilities the following ratings:
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Fund-based facility 100 'IND BB'/Stable/'IND A4+'
Non-fund-based facility 550 'IND A4+'
KEY RATING DRIVERS
The ratings reflect JOC's weak credit profile and low EBITDA
margins due to the inherent risks in the trading nature of its
business. According to the provisional financials for FY15, gross
interest coverage (operating EBITDA/gross interest expense) was
2.20x, net financial leverage (total adjusted net debt/operating
EBITDA) was 5.07x and EBITDA margins were 0.92%. The ratings also
factor in the firm's exposure to forex losses, and its
proprietorship structure.
However, the ratings are supported by JOC's comfortable liquidity
position as reflected in its 76.46% average working capital
utilisation during the 12 months ended July 2015. The ratings also
benefit from the founders' over 20 years of experience in the
commodity business. The ratings are further supported by the
firm's total interest income which largely offsets its interest
obligations.
RATING SENSITIVITIES
Positive: An improvement in the operating profitability leading to
a sustained rise in the gross interest coverage will lead to a
positive rating action.
Negative: A decline in the operating profitability resulting in
deterioration in the interest coverage will be negative for the
ratings.
JOC was established in 1986 as a partnership firm and was
constituted as a proprietorship firm in 2007. It trades pulses
such as chana, masoor, rajma and toor. The firm imports pulses
through brokers and directly from companies in Singapore, Canada,
the US, the Netherland etc. and sells them directly to
traders/brokers in India.
KASTURI OVERSEAS: CRISIL Assigns B+ Rating to INR12.5MM Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Kasturi Overseas (KO).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Letter
of Credit 50 CRISIL A4
Proposed Cash
Credit Limit 12.5 CRISIL B+/Stable
Cash Credit 12.5 CRISIL B+/Stable
Letter of Credit 50 CRISIL A4
The ratings reflect KO's weak financial risk profile, marked by a
weak capital structure and low operating profitability; the
ratings also factor in the firm's small scale of operations. These
rating weaknesses are partially offset by KO's established
customer and supplier base.
Outlook: Stable
CRISIL believes that KO will maintain its business risk profile in
the near term on the back of its established supplier and customer
base. The financial risk profile is, however, expected to remain
constrained during the same period on account of its weak capital
structure and low profitability. The outlook may be revised to
'Positive' if the firm reports higher-than-expected sales or
profitability, leading to improvement in its business and
financial risk profiles. Conversely, the outlook may be revised to
'Negative' if there is stretch in its working capital cycle or
lower-than-expected growth, leading to deterioration in its
financial risk profile.
Set up in 2008, KO is a proprietorship firm of Mr. Saurav Goel.
The firm imports and trades in PVC (poly vinyl chloride) resin,
high-density polyethylene, and low-density polyethylene. KO is
based in New Delhi.
For 2013-14 (refers to financial year, April 1 to March 31), KO is
estimated to report a net profit of INR0.59 million on net sales
of INR114.2 million; the firm reported a profit after tax of
INR0.51 million on net sales of INR85.6 million for 2012-13.
KINGFISHER INDUSTRIES: CRISIL Suspends B+ Rating on INR70MM Loan
----------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Kingfisher Industries Pvt Ltd (KIPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 10 CRISIL A4
Cash Credit 70 CRISIL B+/Stable
Term Loan 46.5 CRISIL B+/Stable
The suspension of ratings is on account of non-cooperation by KIPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, KIPL is yet to
provide adequate information to enable CRISIL to assess KIPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
KIPL was incorporated in the year 2012 and is engaged in the
business of manufacturing fasteners and forging (hot-forging and
cold-forging). The company commenced its commercial production
from April, 2013 and is promoted by Mr. Sunil Kumar Singla and his
sons Mr. Karan Pratap Singla and Mr. Viresh Pratap Singla.
MMS STEEL: Ind-Ra Assigns INR180MM Loan LT 'IND BB+' Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned MMS Steel & Power
Pvt Ltd's (MMSPL) INR180 million working capital loan, INR10
million bank guarantee and INR30 million letter of credit a Long-
Term 'IND BB+' rating. The Outlook is Stable.
PROJECT PROFILE
MMSPL, sponsored by KVK Energy & Infrastructure Private Limited,
is an SPV incorporated to develop and operate power projects. The
company has 28MW natural gas based power plants in Nagapattinam
and Nallur, Tamil Nadu, and commenced operations in December 2003.
It also has a 1.5MW wind power plant operational since 2014.
KEY RATING DRIVERS
The rating is constrained by the absence of ring fencing of cash
flows resulting in the company extending loans to its group
companies and other related parties for the past five years. The
loans amounted to INR1,309 million on 31 December 2015. This has
been causing liquidity problems as most of the cash is being
diverted than being used in the core operations. This may lead to
MMSPL's over utilisation of the cash credit limit if the cash
diversion is not contained. However, according to management, the
amount of loans being extended is likely to reduce to INR88.9m by
July 2015.
The rating is also constrained by the deteriorating plant load
factor (PLF) and heat rate of Nagapattinam plant since FY09. The
plant observed a PLF of 45.7% in FY15, which was lower than the
seven-year historical average of 57.7%. Notwithstanding the dip in
FY15 to 49.6%, the Nallur plant has shown consistent plant
performance at an eight-year average PLF of 61%. The wind mill
energy production at 22.7% in FY15 was also lower than the five-
year average of 27.7%.
The rating also reflects the risks related to the supply of sweet
and sour natural gas, which is a scarce resource. Although the
company has fuel supply agreements with Oil Natural Gas Company on
a firm basis and GAIL Gas Ltd ('IND AA'/Stable) on a fall-back
basis, the risk of supply deficit cannot be ruled out.
The rating is supported by MMSPL's revenue profile through firm
power purchase agreements with group captive parties (textile
companies) and Tamil Nadu Generation and Distribution Corporation
Ltd (TANGEDCO) at a pre-determined tariff, thus mitigating the
concentration risk. While the weak credit profiles of group
captive parties is a concern, they have been meeting 94% of their
payment obligations on an average of within six to 17 days of
billing. However, the receivable cycle of TANGEDCO, which was as
long as 151 days in FY15 (average: 104 days), at payment
efficiency of 77% constrains the ratings. MMSPL therefore plans to
reduce TANGEDCO exposure in the coming years to contain the
revenue risk. Furthermore, owing to the shortage of power in Tamil
Nadu and high requirement of power by textile companies, the risks
related to replacement of the off-takers, in case they do not pay
on time, is also limited.
The rating is supported by limited operation-related risks, given
some certainty from the hassle-free operations since commissioning
and extensive experience of players such as KVK Energy &
Infrastructure (for gas plants) and ReGen Powertech Pvt Ltd (for
wind-mill) which are handling the operations of the plants. That
said, the fuel efficiency (kWh/SCM) has been declining at both the
plants over the years.
The company's revenue surged in FY13 and FY14 due to the
installation of additional capacity by leasing gas engines to take
advantage of excess gas supply in the market. Although EBITDA
margin increased to 27% in 9MFY15 from 26% in FY14, the liquidity
remained stressed and the interest coverage decreased to 1.39x
from 1.46x. Although the company paid off most of its outstanding
loans in FY15, weak revenue growth could strain the financial
performance.
RATING SENSITIVITIES
Positive: Sustained performance in line with Ind-Ra's base case
projections could result in a positive rating action.
Negative: Lower-than-expected plant performance and/or any
significant payments delays from the off-takers and/or any further
loans and advances to related parties could result in a rating
downgrade.
NAVRAN ADVANCED: CRISIL Suspends 'D' Rating on INR233MM Loan
------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of
Navran Advanced Nanoproducts Development International Private
Limited (NAND ipl).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 30 CRISIL D
Funded Interest 12 CRISIL D
Term Loan
Long Term Loan 233 CRISIL D
The suspension of ratings is on account of non-cooperation by NAND
ipl with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, NAND ipl is yet
to provide adequate information to enable CRISIL to assess NAND
ipl's ability to service its debt. The suspension reflects
CRISIL's inability to maintain a valid rating in the absence of
adequate information. CRISIL considers information availability
risk as a key credit factor in its rating process and non-sharing
of information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
NAND ipl was incorporated by Dr. Abhinava Kumar Srivastava (based
in the USA) and Mr. Kumar Binit on April 13, 2008. The company has
a plant in Una (Himachal Pradesh) to manufacture polymerised
toners using nanotechnology. The company's nanotechnology-based
products also include Eco-neev (a diesel additive) and Nano zinc
oxide.
P.S. SETH: CARE Assigns B+ Rating to INR17cr LT Bank Loan
---------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of P.S. Seth
Sons Jewellers Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 17 CARE B+ Assigned
Rating Rationale
The rating assigned to the bank facilities of P.S Seth Sons
Jewellers Private Limited (PSS) is primarily constrained by its
modest scale of operations with geographical concentration risk
and weak financial risk profile characterised by declining
total operating income, low profit margins and weak solvency
position. The rating is further constrained by the company's
working capital-intensive nature of operations, susceptibility of
margins to gold price fluctuations and presence in a highly
fragmented and competitive industry. The rating, however, derives
comfort from the experience and resourcefulness of the promoters
and long established business relationship with customers and
suppliers.
Going forward, the ability of the company to profitably scale up
its operations, with improvement in capital structure and
efficient working capital management would be the key rating
sensitivities.
PSS, incorporated in June 2006, is being managed by Mr Pardeep
Seth, Mr Sandeep Seth and Mrs Ridhi Seth. The company is engaged
in bullion trading and manufacturing of gold and diamond
jewellery. PSS has its retail outlet/showroom located in Amritsar,
Punjab. The company procures pure gold bars and coins from Bank of
Nova Scotia while diamond gems and studs are purchased from
wholesalers based in Mumbai, Delhi and Surat. The customer profile
mainly comprises of retail jewellers and individual customers
located in Punjab and nearby regions. Besides PSS, one of the
directors -- Mr Pardeep Seth is also engaged in another group
concern, namely, 'Hira Lal Prem Nath', a proprietorship firm
engaged in bullion trading and manufacturing of gold and diamond
jewellery since 1957.
For FY15 (Provisional), PSS achieved a total operating income of
INR98.31 crore with PBILDT and PAT of INR3.59 crore and INR0.74
crore, respectively, as against the total operating income of
INR136.81 crore with PBILDT and PAT of INR3.40 crore and INR0.36
crore, respectively, for FY14.
PRABHAT FERTILIZER: CRISIL Suspends B+ Rating on INR130MM Loan
--------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Prabhat Fertilizer and Chemical Works (PFCW).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 130 CRISIL B+/Stable
Proposed Cash
Credit Limit 45 CRISIL B+/Stable
Term Loan 19.5 CRISIL B+/Stable
The suspension of ratings is on account of non-cooperation by PFCW
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, PFCW is yet to
provide adequate information to enable CRISIL to assess PFCW's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.
Prabhat Fertilizer & Chemical Works was incorporated as a
partnership firm in 1974 by Mr. Prashant Goyal and Mr. Bhushan
Goyal. The firm is involved in the manufacturing of micronutrients
and organic fertilizers.
PRISTINE SWITCHGEARS: CRISIL Suspends B Rating on INR65MM Loan
--------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Pristine Switchgears India Pvt Ltd (PSIPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 20 CRISIL A4
Cash Credit 62.5 CRISIL B/Stable
Letter of Credit 15 CRISIL A4
Proposed Working
Capital Facility 7.5 CRISIL B/Stable
Term Loan 65 CRISIL B/Stable
The suspension of ratings is on account of non-cooperation by
PSIPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, PSIPL is yet to
provide adequate information to enable CRISIL to assess PSIPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
PSIPL, set up in 2008, manufactures 12 kilovolt (kV), 24 kV, and
36 kV metal-clad switchgear panels. PSIPL's manufacturing unit is
at Shirwal near Pune (Maharashtra). The company is a licensee
partner of SEIPL. SEIPL supplies vacuum circuit breakers and air
circuit breakers (used in the manufacture of switchgear panels) to
PSIPL.
R KUKREJA: CARE Revises Rating on INR8.92cr LT Loan to B+
---------------------------------------------------------
CARE revises the rating assigned to the bank facilities of R
Kukreja Infrastructure Pvt. Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 8.92 CARE B+ Revised
from CARE B
Rating Rationale
The revision in the rating assigned to the bank facilities of R
Kukreja Infrastructure Pvt. Ltd. (RKIPL) is mainly on account of
improvement in the total operating income during FY15 (prov.;
refers to the period April 1 to March 31) primarily backed by
first year recognition of real estate revenue, improved profit
levels and gross cash accruals. However, rating for the bank
facilities continues to remain constrained by its small scale of
operation, leveraged capital structure, limited geographical reach
with one hotel in Telibandha Raipur only, cyclical and seasonality
associated with hotel industry, project implementation risk
associated with on-going real estate project, low booking status
of its on-going project, and geographic concentration risk with
intense competition in the real estate sector. The rating,
however, derives strength fromits experienced promoters,
favourable location and requisite approvals obtained for the real
estate project.
Going forward, the ability to increase scale of operations,
successful completion of the on-going real estate project and
timely sale of units at envisaged price coupled with ability to
manage capital structure effectively will be the key rating
sensitivities.
RKIPL, incorporated in May 2010, was promoted by Mr Rajesh Kukreja
and Mrs Rakhi Kukreja (wife of Mr Rajesh Kukreja). RKIPL is
engaged in running hotel business with a hotel named Hotel Lalbaag
Inn situated at Vijay Path, Telibandha Four Lane, Raipur 492006,
Chhattisgarh. The said hotel provides boarding, lodging,
restaurant, bar, banquet and conference hall services in
Telibandha, Raipur. The said hotel is spread over 30,000 sq. ft.
and comprises 24 guest rooms, a banquet hall and a conference
room.
Besides hotel business, RKIPL is currently executing a residential
housing project with NFC Leasing & Fin. Co. Pvt. Ltd. (NFC) named
as 'Metro Heights', near hotel Lal Bagh, Vijay Path, Telibandha
Four Lane, Raipur, Chhattisgarh. NFC has provided land for the
said project and will share 40% of the total sale value of the
project, while remaining will be kept by RKIPL. The project is
being set up on a land measuring 93,860 sq. ft. and would consist
of two G+4 residential buildings comprising 48 flats. The total
cost of the project has been estimated to be INR25.55 crore and is
proposed to be funded out of promoter's contribution including
unsecured loan (Rs.7.59 crore), advance booking money (Rs.10.46
crore) and debt (Rs.7.50 crore). The company had tied up for the
required debt.
About 73% of the construction work has been completed till
July 31, 2015, and balance is expected to be completed by
June 2016. The company has already incurred an expenditure of
INR18.55 crore as on July 31, 2015 financed by way of equity share
capital -- INR1.60 crore, unsecured loan from the promoters --
INR4.34 crore, debt-Rs.6.14 crore, advance booking money-INR6.48
crore. 22 flats have been booked till July 2015.
During FY15 (provisional), the company reported a total operating
income of INR7.41 crore (FY14: INR1.44 crore) and a PAT of INR0.36
crore (in FY14: net loss of INR0.02 crore). The company has
achieved a total operating income of INR2.45 crore during 4MFY16
(refers to the period April 1 to July 31).
RBM INDUSTRIES: Ind-Ra Assigns 'IND BB-' Long-Term Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned RBM Industries
(RBMI) a Long-Term Issuer Rating of 'IND BB-'. The Outlook is
Stable. Ind-Ra has also assigned RBMI's bank facilities following
ratings:
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Fund-based working 50.00 'IND BB-'/Stable /'IND A4+'
capital facilities
Long-term loans 70.80 'IND BB-'/Stable
Non-fund-based limit 2.50 'IND A4+'
KEY RATING DRIVERS
The ratings reflect RBMI's small scale of operations with overall
revenue of INR371.70 million, according to the provisional
financials for FY15. The ratings factor in the firm's moderate
liquidity as evident from its average working capital utilisation
of 94% during the 12 months ended June 2015. The ratings further
factor in RBMI's proprietorship nature of business.
The ratings are supported by RBMI's moderate credit metrics with
gross interest coverage (operating EBITDA/Gross interest expense)
of 3.17x and net leverage (total adjusted net debt/operating
EBITDAR) of 2.54x in FY15.
The ratings are also supported by RBMI's promoter's experience of
more than three decades in the fastener industry.
RATING SENSITIVITIES
Positive: A significant improvement in the revenue while
maintaining the current credit profile will be positive for the
ratings.
Negative: Deterioration in the credit metrics will be negative for
the ratings.
COMPANY PROFILE
RBMI was formed in 1980 and manufactures fasteners, nut bolts,
rivet screw, pin, stud, hooks, etc. The company has a 5,000mtpa
manufacturing facility in Delhi.
RSN BALAJI: Ind-Ra Assigns 'IND B+' Long-Term Issuer Rating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned RSN Balaji
Realtors Pvt Ltd (RSN) a Long-Term Issuer Rating of 'IND B+'. The
Outlook is Stable. The agency has also assigned RSN's INR125
million long-term loan an 'IND B+' rating with Stable Outlook.
KEY RATING DRIVERS
The ratings reflect the nascent stage of RSN's ongoing project
Vaibhav Heights in Santacruz, Mumbai, and the associated time and
cost overrun risk. Only 9.09% of the total construction cost of
INR299.64m has been incurred and only 1.38% of the total project
cost of INR378.90m has been booked. The ratings also consider the
fact that only six flats were booked at end-July 2015.
The ratings also consider the promoter's experience of close to a
decade in the real estate sector, and benefits from the strategic
location of the project close to all the basic amenities such as
school, colleges, hospitals, etc.
RATING SENSITIVITIES
Positive: The timely completion of the projects 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.
COMPANY PROFILE
RSN, incorporated by Mr Kamlesh Jain in 2008, is engaged in the
real estate business. The company is engaged in the redevelopment
project of Vaibhav Heights in Vakola, Santacruz.
Vaibhav Heights is the re-development project of residential-cum-
commercial project with ground floor which will be used as
commercial purpose and 12 upper floors will be used for
residential purpose. The proposed building would be with two
wings, Wing A and Wing B. The residential units in Wind A would be
occupied by the existing tenants (61 tenants) who would be
provided with the said accommodation free of cost and the
residential units in Wing B would be meant for sale.
SALEM AUTOMECH: CRISIL Reaffirms B+ Rating on INR80MM Loan
----------------------------------------------------------
CRISIL's ratings on the bank facilities of Salem Automech - Salem
(SA) continue to reflect SA's small scale of operations, exposure
to fluctuations in foreign exchange rates, and below-average
financial risk profile marked by a modest net worth. These rating
weaknesses are partially offset by the extensive experience of the
firm's promoters in the steel fabrication and scrap trading
segments.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 40 CRISIL A4 (Reaffirmed)
Cash Credit 80 CRISIL B+/Stable (Reaffirmed)
Letter of Credit 8 CRISIL A4 (Reaffirmed)
Outlook: Stable
CRISIL believes that SA will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if SA scales up its
operations along with improvement in profitability, leading to an
increase in net worth. Conversely, the outlook may be revised to
'Negative' if the firm undertakes a substantial debt-funded
capital expenditure (capex) programme or if its working capital
management deteriorates.
Update
SA reported revenue of INR209.4 million for 2014-15 (refers to
financial year, April 1 to March 31) on a provisional basis, up 14
per cent year-on-year supported by stable demand from its
customers. The firm's operating margin remained broadly in line
with CRISIL's expectations r at 8.6 per cent in 2014-15. CRISIL
believes that SA's business risk profile will remain modest over
the medium term supported by its promoters' extensive industry
experience
SA's net worth was INR32.6 million as on March 31, 2015, and is
expected to remain small over the medium term on account of
limited accretion to reserves. The total outside liabilities to
tangible net worth (TOLTNW) ratio is high, at 4.1 times as on
March 31, 2015, and is expected to improve marginally over the
medium term supported by absence of debt-funded capex plan. The
firm's debt protection metrics are modest, with interest coverage
of 1.04 times and risk coverage of 3.2 times in2014-15. CRISIL
believes that SA's financial risk profile will remain modest over
the medium term on account of small net worth and high TOLTNW
ratio.
SA utilised its bank limits extensively, at an average o90 per
cent over the 12 months through March 2015 marked by high GCA of
222 days as on March 2015.. The firm's annual cash accruals are
expected in the range of INR3.8 million to INR4.5 million over the
medium term, against maturing debt obligation of INR1.3 million
per year. SA's liquidity is expected to remained stretched over
the medium term on account of working capital intensive nature of
operations
Established in 1971, SA fabricates structural steel components and
trades in ferrous scrap. The firm is promoted by Mr. M V
Sellamuthu and his sons, Mr. Sidesh Kumar and Mr. Rajesh Kumar.
SAM INDUSTRIAL: CRISIL Assigns B- Rating to INR75MM Cash Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' to the bank
facilities of Sam Industrial Enterprises Ltd (SIEL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 25 CRISIL B-/Stable
Overdraft Facility 15 CRISIL A4
Bank Guarantee 10 CRISIL A4
Cash Credit 75 CRISIL B-/Stable
The ratings reflect SIEL's below-average financial risk profile
and stretched liquidity on account of utilisation of funds in non-
current investments. These rating weaknesses are mitigated by the
benefits the company receives through the funding support of its
promoter.
Outlook: Stable
CRISIL believes that SIEL's financial risk profile will remain
constrained on account of its weak liquidity. The outlook may be
revised to 'Positive' if the company is able to generate
significant revenue while maintaining its profitability leading to
sizeable cash accruals to meet its maturing debt obligations.
Conversely, the outlook may be revised to 'Negative' if SIEL
reports low profitability or undertakes a large debt-funded
capital expenditure programme or if its working capital
requirements increase significantly, resulting in deterioration in
its financial risk profile.
Incorporated in 2000 as a private limited company, SIPL designs,
prints, and binds books, brochures and other reading materials for
its customers located in North India. The company also prints
pamphlets, brochures, booklets and other printed materials for
various nodal agencies and schools along with printing of mono-
cartons of certain pharmaceuticals for multiple customers at its
printing facility in Delhi.
SIEL's profit after tax (PAT) is INR4.9 million on an operating
income of INR426 million in 2014-15 (refers to financial year,
April 1 to March 31) against a PAT of INR2.8 million on an
operating income of INR268.5 million in 2013-14.
SANSAR TEXTURISERS: CRISIL Assigns B+ Rating to INR350MM Loan
-------------------------------------------------------------
CRISIL has revoked the suspension of its rating on the bank
facilities of Sansar Texturisers Pvt Ltd (Sansar) and has assigned
its 'CRISIL B+/Stable' rating to the facilities.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 350 CRISIL B+/Stable (Assigned;
Suspension Revoked)
The rating had previously been 'Suspended' by CRISIL (refer to the
Rating Rationale dated December 9, 2014), since Sansar had not
provided the necessary information required for a rating review.
Sansar has now shared the requisite information, enabling CRISIL
to assign a rating to the bank facilities.
CRISIL's rating on the bank facilities of Sansar reflects its
below-average financial risk profile, with weak debt protection
measures and financial flexibility due to sizeable working capital
requirements. The rating also reflects the company's
susceptibility to unfavourable government policies, and modest
scale of operations in the intensely competitive synthetic yarn
and fabrics industry. These rating weaknesses are partially offset
by the extensive experience of its promoters in the yarn trading
business.
Outlook: Stable
CRISIL believes that Sansar will continue to benefit over the
medium term from the established track record of its promoters in
the textile industry and its established customer base. The
outlook may be revised to 'Positive' if increase in sales and
profitability and efficient management of working capital cycle
result in stronger cash accruals and liquidity. Conversely, the
outlook may be revised to 'Negative' if low sales realisations or
profitability, or stretch in working capital cycle weakens its
financial risk profile.
Sansar, set up in 1989-90, trades in nylon and viscose yarn
imported mainly from China and Korea. The company is promoted and
managed by Mr. Vishnu Goenka and his family. The company is based
in Surat (Gujarat).
Sansar reported a net loss of INR9.3 million on net sales of
INR478.5 million for 2013-14 (refers to financial year, April 1 to
March 31) against a profit after tax (PAT) of INR8.3 million on
net sales of INR942.2 million for 2012-13.
SEAGA INDIA: CRISIL Suspends B+ Rating on INR75MM Cash Loan
-----------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Seaga India Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 75 CRISIL B+/Stable
Letter of Credit 10 CRISIL A4
The suspension of ratings is on account of non-cooperation by SIPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SIPL is yet to
provide adequate information to enable CRISIL to assess SIPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
Incorporated in 1966, SIPL, earlier known as Karna Industries Ltd
(KIL), manufactures vending commercial refrigeration equipment and
vending machines. Initially, KIL entered into a technical
collaboration arrangement with Seaga in 2004, which later on
acquired KIL in 2007. Currently, SIPL is wholly owned subsidiary
of Seaga. The company has its manufacturing facilities in
Bahadurgarh (Haryana).
SHANKAR SOYA: CARE Revises Rating on INR6.35cr Bank Loan From 'B'
-----------------------------------------------------------------
CARE revises the ratings assigned to bank facilities of Shankar
Soya Concepts.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 6.35 CARE BB+ Revised
from CARE B
Short-term Bank Facilities 2.81 CARE A4+ Revised
from CARE A4
Rating Rationale
The revision in the ratings assigned to the bank facilities of
Shankar Soya Concepts (SSC) is mainly due to the improvement in
financial risk profile marked by significant increase in total
operating income (TOI) consequent to stabilization of operations
during FY15 (Audited; refers to the period April 1 to March 31)
coupled with improvement in profit margins, capital structure and
debt coverage indicators.
The ratings, however, continue to remain constrained on account of
short track record of operations, competition from organized
players, working capital-intensive nature of operations,
susceptibility of operating margins to raw-material price and
foreign exchange fluctuation and partnership nature of
constitution.
The ratings, however, continue to derive comfort from the vast
experience of the partners of SSC in lecithin-related products for
more than three decades and receipt of government benefits. The
ratings also take into consideration addition of new customers as
well as new products during FY15.
SSC's ability to increase its scale of operations while
maintaining profitability in light of fluctuating raw material
prices would be the key rating sensitivities. Furthermore,
efficient management of its working capital while maintaining its
comfortable capital structure and debt coverage indicators and
future expansion projects and its funding profile would also
remain crucial.
Indore-based (Madhya Pradesh) SSC is a partnership firm
established by Mr Manish Mangharamani, Mr Ashok Mangharamani and
Mrs Kavita Mangharamani in January 2011 with an objective to carry
out the business of manufacturing of Soya Lecithin-related
products such as Soya Lecithin powder, Soya Lecithin liquid and
Soya Lecithin granules. The finished products of SSC find
application in varied industries such as cosmetics,
pharmaceuticals and healthcare, food and paint. SSC caters to
demand arising from Europe, Middle East and South East Asian
markets. Export proportion during FY15 remained at 72%. SSC holds
various certifications which includes Food Safety System
Certification (FSSC) 22000, ISO 22000:2005, ISO/TS 22002-1:2009,
Halal India Certificate, Cert ID Non-GMO Standard for Traceability
and Identity Preservation, Star K- Fosher Certification and
license granted by Food Safety & Standards Authority of India
(FSSAI).
SSC is a part of 'Shankar Group of Companies', which includes
group entities, viz, Satyam Oil & Proteins Industries, Shankar
Chemical Products, Shankar Soya Products, Shivam Oil & Proteins
Industries, Sai Shakti Constructions Private Limited, Sunshine
Spaces Private Limited and Sai Shakti Agrotech Private Limited.
These entities are operating into lecithin-based food and feed
supplements primarily catering to domestic market as well as also
operate into construction and real estate business.
During FY14, combined TOI of the group remained at INR78.07 crore,
while combined net worth of the group remained at INR11.55 crore
as on March 31, 2014.
As per the audited results for FY15, SSC reported a total
operating income of INR36.45 crore (FY14: INR5.36 crore) with a
PAT of INR1.60 crore (FY14: loss of INR1.72 crore). During Q1MFY16
(Provisional), SSC has reported a TOI of INR15.36 crore.
SHEEL FOODS: CRISIL Suspends B- Rating on INR200MM LT Loan
----------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Sheel
Foods Ltd (SFL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 200 CRISIL B-/Stable
The suspension of ratings is on account of non-cooperation by SFL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SFL is yet to
provide adequate information to enable CRISIL to assess SFL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
SFL is in the hospitality business. The company owns three hotels
(three-star categories), namely Vista Park, Vista Woods and Vista
Signature in Gurgaon (Haryana). All the hotels are managed
professionally and key decisions are taken by its promoter
directors, Mr. Anil Thakran, Mr. Sushil Sharma and Mr. Raj Kumar
Sharma.
SHREEJI ENTERPRISE: CRISIL Suspends B+ Rating on INR100MM Loan
--------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Shreeji
Enterprise - Vadodara (SE).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Overdraft Facility 20 CRISIL A4
Term Loan 100 CRISIL B+/Stable
The suspension of ratings is on account of non-cooperation by SE
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SE is yet to
provide adequate information to enable CRISIL to assess SE's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
SE is promoted by the Vadodara (Gujarat)-based Panchal family and
other partners. The company is engaged in developing 150
commercial units at Natubhai circle in Vadodara (Gujarat).
SHUBHANGI SALES: CRISIL Suspends B Rating on INR50MM Loan
---------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of M/s
Shubhangi Sales (SS).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL B/Stable
The suspension of ratings is on account of non-cooperation by SS
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SS is yet to
provide adequate information to enable CRISIL to assess SS's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
SS, a partnership entity, was established in 2012-13 (refers to
financial year, April 1 to March 31) by Mr. Sudhir Gupta in Nagpur
(Maharashtra). The firm commenced operations in
March 2013. It trades in various steel products.
SINGH CYCLE: CRISIL Assigns B+ Rating to INR42.5MM Loan
-------------------------------------------------------
CRISIL has revoked the suspension of its rating on the long-term
bank facilities of Singh Cycle & Motor Co (SCMC), and assigned its
'CRISIL B+/Stable' rating.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 37.5 CRISIL B+/Stable (Assigned;
Suspension revoked)
Inventory Funding 42.5 CRISIL B+/Stable (Assigned;
Facility Suspension revoked)
Term Loan 35 CRISIL B+/Stable (Assigned;
Suspension revoked)
The rating had been 'Suspended' by CRISIL vide its Rating
Rationale dated June 24, 2015 as SCMC had not provided the
necessary information for a rating review. The company has now
shared the requisite information, enabling CRISIL to assign the
ratings.
The rating reflects SCMC's established market position in the
automobile dealership segment in Pune, Maharashtra, with presence
in the two-wheeler and passenger car segments, coupled with the
promoters' extensive experience in the automobile dealership
business. These rating strengths are partially offset by SCMC's
below-average financial risk profile, marked by a modest net worth
and high external indebtedness, and intense competition.
Outlook: Stable
CRISIL believes SCMC will continue to benefit over the medium term
from its promoters' extensive experience and its established
position in the automobile dealership segment in Pune. The outlook
may be revised to 'Positive' in case of significant growth in
revenue and profitability, thus improving the capital structure
and debt protection metrics. Conversely, the outlook may be
revised to 'Negative' in case the capital structure deteriorates
owing to a sharp decline in revenue and profitability.
Established in 1955 in Pune, SCMC is a partnership firm promoted
by Mr. Palvinder Singh Bedi and his family members. The firm is a
dealer of Chevrolet vehicles and Hero Motocorp Ltd's (HML's; rated
'CRISIL AAA/Stable/CRISIL A1+/FAAA') two-wheelers. It has two
showrooms of HML and Chevrolet each in Pune. The day-to-day
operations of the firm are managed by Mr. K S Bedi.
SRI RAJESHWARA: CRISIL Suspends B Rating on INR65.3MM LT Loan
-------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Sri Rajeshwara Educational Society (SRES).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long Term Loan 65.3 CRISIL B/Stable
Overdraft Facility 30 CRISIL B/Stable
Proposed Long Term
Bank Loan Facility 6.2 CRISIL B/Stable
The suspension of ratings is on account of non-cooperation by SRES
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SRES is yet to
provide adequate information to enable CRISIL to assess SRES's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
Set up in 1991, SRES is managed by its promoter-director Mr.
Madhukar Reddy. The society runs seven institutions offering
junior college education, and courses in engineering, information
technology, and pharmacy. The institutes are approved by All India
Council for Technical Education, New Delhi, affiliated to Kakatiya
University, Warangal (Andhra Pradesh), and approved by the
Government of Andhra Pradesh.
SUMAN AGRITECH: CARE Assigns 'D' Rating to INR32.28cr LT Loan
-------------------------------------------------------------
CARE assigns 'CARE D' ratings to bank facilities of Suman Agritech
Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank Facilities 32.28 CARE D Assigned
Short Term Bank Facilities 2.00 CARE D Assigned
Rating Rationale
The ratings assigned to the bank facilities of Suman Agritech Ltd
(SAL) take into account recent delays in servicing of its debt
obligations, resulting from stressed liquidity on account of cash
losses.
Incorporated in 1995 as Mirage Impex Pvt Ltd and rechristened as
Suman Agritech Ltd in December 2012, the company is engaged in
edible oil refining and agri-commodity trading. The manufacturing
facilities of SAL are located near Bhojpur district in Bihar, with
an installed capacity of 500 tonne per day (TPD) for edible oil
refining (mainly palm) and 100 TPD for manufacturing of vanaspati,
as on December 31, 2014.
As per the audited results for FY14, SAL registered a total
operating income of INR219.06 crore with a net loss of INR9.84
crore as against a total operating income of INR181.96 crore and
net loss INR1.25 crore in FY13.
As per the provisional results for H1FY15, SAL registered a total
operating income of INR143.06 crore with a net loss of INR8.57
crore.
SUVARNA FIBROTECH: CRISIL Suspends 'D' Rating on INR86MM Loan
-------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Suvarna Fibrotech Private Limited (SFPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 5 CRISIL D
Cash Credit 86 CRISIL D
Term Loan 59 CRISIL D
The suspension of ratings is on account of non-cooperation by SFPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SFPL is yet to
provide adequate information to enable CRISIL to assess SFPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
SFPL was originally set up in 1985 as a proprietorship concern,
Suvarna Fibre Glass, by Mr. P I Verghese; the firm was
reconstituted as a private limited company with the current name
in 1989.
SFPL manufactures FRP components which are used in the automobile,
defence, chemical, windmill, marine, and infrastructure sectors.
UTKAL ENERGY: CRISIL Suspends B+ Rating on INR200MM Cash Loan
-------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Utkal Energy Resources Ltd (UERL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Cash
Credit Limit 200 CRISIL B+/Stable
The suspension of ratings is on account of non-cooperation by UERL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, UERL is yet to
provide adequate information to enable CRISIL to assess UERL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.
UERL was incorporated in 2011 in Odisha. The company upgrades coal
through resizing and washing, and beneficiates raw coal through
air propulsion and the RAMDRAS (removal of shale from coal by
laser) technology.
UERL was taken over by the Kolkata-based Poddar family in December
2011. The company is managed by four brothers: Mr. Amit Poddar,
Mr. Siddhartha Poddar, Mr. Anurag Poddar, and Mr. Rohit Poddar.
VHV BEVERAGES: CRISIL Suspends B Rating on INR155.7MM Term Loan
---------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
VHV Beverages Pvt Ltd (VHV).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 15 CRISIL B/Stable
Term Loan 155.7 CRISIL B/Stable
The suspension of ratings is on account of non-cooperation by VHV
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, VHV is yet to
provide adequate information to enable CRISIL to assess VHV's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
VHV, a wholly owned subsidiary of V&V Corporation Pvt Ltd (V&V),
was formed in 2012.VHV manufactures packaged drinking water and
carbonated soft drinks (CSD) under its Xalta brand with
manufacturing unit located at Jhajjar, Haryana. The operations and
management of the company is headed by Mr. Vishnoo Mittal and Mr.
Vinod Sehwag.
WALSON RETAILS: CRISIL Suspends 'D' Rating on INR275MM Loan
-----------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of
Walson Retails Pvt Ltd (WRPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 275 CRISIL D
Term Loan 62.5 CRISIL D
The suspension of rating is on account of non-cooperation by WRPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, WRPL is yet to
provide adequate information to enable CRISIL to assess WRPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.
Incorporated in 2007, WRPL operates a hotel in Kolkata (West
Bengal) and is an authorised re-distributor-cum-stockiest of HUL's
products in some parts of Delhi and Noida (Uttar Pradesh). WRPL
received HUL dealership in June 2011.
====================
N E W Z E A L A N D
====================
MERCER GROUP: Annual Loss Widens to NZ$6.7 Million
--------------------------------------------------
Alan Wood at Stuff.co.nz reports that Mercer Group has reported a
wider annual loss of NZ$6.7 million, with the company's shares one
of the NZX's worst performers. The loss, attributable to
shareholders, compared to a NZ$457,000 loss in the full year to
June 30, 2014, the report says.
Stuff.co.nz says the company has been under pressure. On
August 11 chief executive Rodger Shepherd resigned, the report
notes.
On the same day the group said it was exploring options to sell
its interiors division as well as signalling a NZ$7.8 million
earnings loss before finance costs and tax, Stuff.co.nz relates.
Mercer shares were untraded on August 25 and last traded at
8 cents and have fallen 11.5 cents or nearly 60% in the last
12 months, the report discloses.
On August 25 the company disclosed a higher than forecast earnings
loss of NZ$7.95 million, Stuff.co.nz reports.
According to the report, Grant Williamson, broker with Hamilton
Hindin Greene, said while the company's shares were one of the
worst performers on the stock exchange, they had been very thinly
traded this year.
"Things have really turned negative from the company, from two
years ago when the outlook was quite bright they certainly haven't
achieved the target they'd set out to achieve," the report quotes
Mr. Williamson as saying.
The sale of the interiors division would leave it to focus on its
core businesses including its Nelson-based Titan meat slicers unit
and stainless steel fabrication, Stuff.co.nz notes. The interiors
division manufacturers sinks, basins tubs and toilets.
It said the result had been hit by a NZ$6m impairment of off
assets, the report relays. Goodwill had been impaired by NZ$2.7
million, tangible assets had been impaired by NZ$984,000 and
intangible assets had been impaired NZ$590,000. A provision
against inventory had been increased by NZ$1.7 million.
According to Stuff.co.nz, the Christchurch company is backed by
interests associated with Christchurch financier Humphry Rolleston
as well as the Rakaia Fund.
Richard Rookes has been named as its new chief executive, the
report discloses.
Mr. Shepherd was hired four years ago to turn around the business,
but has resigned both as chief executive and as a director, the
report notes.
Established in 1882, Mercer Group designs, makes and distributes
stainless steel products for the industrial, dairy, commercial,
food processing, healthcare and residential buildings industries.
The Mercer group of companies are subsidiaries of the New Zealand
listed company Broadway Industries Limited (NZE:BWY).
WYNYARD GROUP: 1H Loss Widens to NZ$17.6 Million
------------------------------------------------
Paul McBeth at BusinessDesk reports that Wynyard Group widened its
first-half loss while boosting sales 39%. The company anticipates
faster revenue growth from the second half as it rolls out a new
product.
According to BusinessDesk, the Auckland-based company posted a net
loss of NZ$17.6 million, or 14c per share, in the six months ended
June 30, from NZ$10.2 million, or 9c, a year earlier.
BusinessDesk relates that revenue climbed to NZ$14 million from
NZ$10.1 million a year earlier, with growth in Wynyard's
New Zealand and UK segments offsetting a decline in its Australian
region. Operating expenses rose 79% to NZ$11.5 million,
BusinessDesk relays.
BusinessDesk says the company plans to launch its new cyber threat
analytics software in the second half of the year, which it says
has a shorter sales cycle and should "deliver significant
recurring software revenue" in 2016.
"FY15 revenue outlook is unchanged at this stage and new solutions
will begin to smooth future period revenue volatility," Wynyard
said. "Based on the current sales pipeline, Wynyard continues to
expect FY15 revenue in the range of NZ$40 to
NZ$45 million."
BusinessDesk relates that the company is forgoing short-term
profit as it chases global market share. It raised NZ$42.6 million
in a placement and share purchase plan in June and July. This will
fund an expanded workforce and operations, and research and
development.
The company had cash and equivalents of $41.1 million as at June
30, and raised a further $2.6 million through the share purchase
plan after the balance date, BusinessDesk discloses.
"While the placement was well-supported, the board believes the
current share price, driven by the thinly traded retail market, is
not reflective of the company's value considering its market
opportunity and relative to pre-IPO and listed peers in other tech
savvy markets," the company, as cited by BusinessDesk, said.
Wynyard expects to complete a secondary listing on the ASX in the
fourth quarter of this year, which it has previously said would
allow more Australian and foreign investors to buy stock, adds
BusinessDesk.
Based in Auckland, New Zealand, Wynyard Group Limited (NZE:WYN)
-- https://www.wynyardgroup.com/ -- provides software and
solutions to help protect companies and countries from threat,
crime and corruption. The Company has designed and developed
software to operate and connect three mission cycles: Risk
Management, Intelligence and Investigations. Wynyard products and
solutions are used by fortune 500 companies, national security
agencies and critical infrastructure operators across government,
financial services and infrastructure sectors. The Company
provides consulting and bureau services to government agencies and
financial institutions engaged in software to help protect
companies and countries from threat, crime and corruption. The
Company's solutions include risk management, intelligence,
investigations and digital forensics.
=============
V I E T N A M
=============
VIETNAM: Stability Supports B1 Govt. Bond Rating, Moody's Says
--------------------------------------------------------------
Moody's Investors Service says that Vietnam's B1 government bond
rating is supported by macroeconomic stability and a return to
rapid economic growth, but faces challenges related to rising
government debt.
The stable outlook on the rating balances recent progress on
reforms in the context of closer economic integration with key
trading partners against contingent risks from the banking system
and state-owned enterprise sector.
Moody's conclusions were contained in its recently published
credit analysis, titled "Vietnam, Government of", which elaborates
on the sovereign credit profile in terms of its economic strength,
which is assessed as "high (-)"; institutional strength "low (-)";
fiscal strength "moderate"; and susceptibility to event risk "high
(-)", which are the four main analytic factors in Moody's
Sovereign Bond Ratings methodology.
The report constitutes an annual update to investors and is not a
rating action.
While economic growth in the Asia Pacific region has slowed in
2015, Vietnam has continued to emerge from a two-year lull in
growth. Export outperformance relative to regional peers has
resulted from an acceleration in the pace of Vietnam's
industrialization as the country's reliance on commodities
production wanes. At the same time, domestic demand has shown
signs of a nascent recovery.
Political stability remains intact ahead of the 12th Party
Congress of the Vietnamese Communist Party in 2016, assuring
overall policy continuity, particularly an emphasis on sustaining
the gains from the restoration of macroeconomic stability in
recent years.
Despite improvements in economic strength and institutional
strength, fiscal deficits have not consolidated enough to arrest
the ongoing increase in the government's debt burden. However,
the government's financial position is supported by very high debt
affordability as a result of the high proportion of debt sourced
in concessional or low-cost terms from official sources.
The report notes that a further containment of government fiscal
deficits and lower government debt levels would be credit
positive.
On the other hand, Vietnam's rating or outlook could face downward
pressure if macroeconomic instability reemerges, leading to a more
substantial deterioration in the government's fiscal and debt
metrics or a deterioration in the country's external payments
position. In addition, the crystallization of contingent risks
from either the banking system or the SOE sector would be credit
negative.
===============
X X X X X X X X
===============
* Emerging Markets Hit Hard as Global Rout Continues
----------------------------------------------------
Andrey Ostroukh, Ben Otto, and Patrick McGroarty at The Wall
Street Journal report that bad news from China has sparked a
firestorm in the developing countries that feed its vast
industrial machine, leaving a swath of economies with few good
ways to escape a crunch.
In Indonesia, coal once bound for China is piled up in port, the
Journal says. In South Africa, mines that fed China's voracious
demand for metals are firing workers, the report relates. In
financial markets, investors have responded by pulling out.
On August 24, the currencies of Russia, Indonesia, South Africa,
Brazil and other commodity exporters tumbled to multiyear lows
against the U.S. dollar, the report discloses. Stock indexes
collapsed.
The Journal relates that the Russian ruble hit a seven-month low
on August 24, and by the end of the main trading session in Moscow
it slid to its weakest-ever closing level of 70.9 to the dollar. A
year ago, a dollar bought only around 36 rubles.
The Journal says the weak currencies present a glum dilemma: Raise
rates to defend them, and the economy takes a hit from tighter
credit. Let them fall, and inflation erodes household budgets.
Meanwhile, dollar-denominated debt becomes a bigger burden for
many cash-strapped governments and companies, the Journal states.
"We were all fully aware emerging markets were vulnerable," the
report quotes Malcolm Charles, a portfolio manager at Investec
Asset Management in Cape Town, which has $120 billion under
management, as saying. Now, he said, "I can only see red on my
screen. There's a complete pricing-out of risk assets."
The Journal notes that the blowout in Russia is emblematic of the
fragility of economies relying on high raw materials prices
supported by China's long-sturdy demand and of the tight
constraints faced by those countries' policy makers.
Chinese woes helped trigger a plunge in the price of Russia's
principal export and main source of foreign-currency income, crude
oil. That, in turn, has pummeled the ruble, the report says.
According to the Journal, the weak ruble has pumped inflation
above 15%, meaning the central bank has little space to cut
interest rates further to try to revive the economy, which
contracted 4.6% in the second quarter compared with last year.
And Russian authorities have all but given up spending foreign-
currency reserves to help support the ruble rate, something the
central bank did for years, the report notes. It let the ruble
float freely late last year after spending nearly $80 billion of
its reserves in an attempt to prop it up, only to see the ruble
weaken substantially. Russia has $363 billion of reserves
remaining, the report discloses.
According to the Journal, Russia is doubly vulnerable because it
has turned to China as relations with the West have soured over
the past two years. Russia is the second-largest supplier of oil
to China, after Saudi Arabia, and Moscow has sought to increase
trade and investment ties with China, especially in its big energy
projects.
The report says large chunks of the emerging world have staked
their growth on supplying China. "There are piles of coal in
ports," said Supriatna Suhala, executive director of the
Indonesian Coal Mining Association. Big coal miners, he said, have
sent workers home to make ends meet, the Journal relays.
In Thailand, a major supplier of rubber to China's tire factories,
Perk Lertwangpong, a rubber farmer and former president of the
Rubber Planter Cooperatives, said he expects exports to fall by a
fifth in 2015 compared with last year, the Journal reports.
Indonesia, which sells coal, minerals and palm oil to China, was
riding high not long ago, the report notes. Economic growth in
2012 was around 6%. This year, the stock market is down more than
20%. Its currency, the rupiah, is down 12.5% for the year and is
hovering at its lowest level since the Asian financial crisis that
began in 1997, the Journal discloses.
*********
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 ***