/raid1/www/Hosts/bankrupt/TCRAP_Public/151111.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
Wednesday, November 11, 2015, Vol. 18, No. 223
Headlines
A U S T R A L I A
KOKO BLACK: Placed in Administration
MENI'S TAILORING: First Creditors' Meeting Set For Nov. 18
C H I N A
CHINA: Cash Crunch Poses Risk to Debt-Fueled Bond Rally
CHINA: Trade Drop Means More Stimulus Measures Are Coming
CHINA SHANSHUI: Cash Insufficient to Repay Onshore Debt
I N D I A
CENTURY 21: ICRA Reaffirms B+ Rating on INR58cr Loan
CHANDRALOK TEXTILE: ICRA Reaffirms B- Rating on INR9cr Loan
DHIMAN INDUSTRIAL: ICRA Assigns B+ Rating to INR3.20cr Loan
ELROY MOTORS: CRISIL Assigns B+ Rating to INR160MM Loan
G.V.D. TEXTILES: CRISIL Reaffirms B+ Rating on INR106MM Cash Loan
GEETHA KRISHNA: ICRA Reaffirms B+ Rating on INR13cr Term Loan
GOVIND CABLE: ICRA Reaffirms 'B' Rating on INR5.0cr Loan
GOYAL AGENCIES: CRISIL Ups Rating on INR240MM Cash Loan to B
GRAND HYUNDAI: CRISIL Assigns B+ Rating to INR80MM Loan
HIMAGIRI HOSPITALS: ICRA Assigns B+ Rating to INR6.0cr Loan
HOTEL MAGIC: CRISIL Assigns B Rating to INR35MM Term Loan
IBD UNIVERSAL: ICRA Assigns 'B' Rating to INR49cr Term Loan
INCA HAMMOCK: CRISIL Assigns B+ Rating to INR111MM Loan
ISCON CRAFT: CRISIL Ups Rating on INR82.5MM Term Loan to B+
JAMUJARA LUBRICANTS: Ind-ra Assigns 'IND B-' LT Issuer Rating
K. PALANIAPPA: Ind-ra Upgrades Bank Loans Rating From 'IND BB+'
KAYTEE CORPORATION: ICRA Suspends B+/A4 Rating on INR25cr Loan
LEXO CERAMIC: ICRA Reaffirms B+ Rating on INR2.50cr Cash Loan
MALWA AUTOMOBILES: ICRA Reaffirms B+ Rating on INR18.6cr Loan
MAXVEL REALTECH: CRISIL Assigns B+ Rating to INR100MM Term Loan
MEHER ADVANCED: CRISIL Puts B+ Ratings on Notice of Withdrawal
MISTAIR HEALTH: CRISIL Assigns B+ Rating to INR55MM Term Loan
MORTEX COKE: Ind-ra Withdraws 'IND BB' Long-Term Issuer Rating
MUTHULAXMI SPINNING: CRISIL Assigns B+ Rating to INR65MM Loan
NAVAL EXPORTERS: CRISIL Assigns B- Rating to INR37.5MM Term Loan
OMKAR FERTILIZERS: ICRA Upgrades Rating on INR2.80cr Loan to B
PAREVARTAN EDUCARE: CRISIL Ups Rating on INR100MM Loan to B
PATWARI STEELS: ICRA Assigns 'C-' Rating to INR9.0cr Cash Loan
PAULOSE ABRAHAM: CRISIL Assigns B+ Rating to INR80MM Cash Loan
RAMKUMAR TEXTILE: ICRA Reaffirms B+ Rating on INR11.50cr Loan
RATHINAM ARUMUGAM: Ind-ra Affirms 'BB' Rating on INR163MM Loan
SAHIB SYNTHETICS: ICRA Suspends B Rating on INR9.70cr Loan
SANJOSE SUPREME: Ind-ra Cuts INR7.9MM Loan Rating to 'IND D'
SHREE DURGA: CRISIL Assigns 'B' Rating to INR55MM Cash Loan
SIDDHI VINAYAK: CRISIL Assigns B+ Rating to INR50MM Cash Loan
SOMANI MOTORS: CRISIL Assigns B+ Rating to INR52.5MM e-DFS
SRI LAKSHMI: CRISIL Assigns 'B' Rating to INR45MM Cash Loan
STRONGWIRE INDUSTRIES: ICRA Puts B+ Rating on Withdrawal Notice
SUMANGLAM WOOD: ICRA Reaffirms B- Rating on INR6.0cr Cash Loan
SUNRISE INDUSTRIES: CRISIL Reaffirms B+ Rating on INR258.9MM Loan
SURESH EXPORTS: ICRA Assigns 'B' Rating to INR4.0cr Cash Loan
SWATHI COTGIN: CRISIL Assigns B+ Rating to INR198MM Cash Loan
TATA STEEL: Moody's Affirms Ba1 CFR & Changes Outlook to Negative
TIMESPAC INDIA: CRISIL Assigns B Rating to INR78.8MM Cash Loan
UNITED TRADE: CRISIL Assigns B+ Rating to INR40MM Cash Loan
YATHARTH HOSPITALS: ICRA Ups Rating on INR37.50cr Term Loan to B+
* INDIA: Panel Proposes 180-Day Cap for Settling Bankruptcy Cases
I N D O N E S I A
GOLDEN AGRI-RESOURCES: Moody's Withdraws Ba3 Corp. Family Rating
J A P A N
TOSHIBA CORP: Investigation Panel Releases Full Report on Scandal
TOYO TIRE: Posts JPY4.3BB Loss in 9Mos. Ended Sept. Amid Scandal
N E W Z E A L A N D
HERITAGE CANTERBURY: Placed Into Liquidation
S I N G A P O R E
STATS CHIPPAC: Fitch Publishes 'BB-' Issuer Default Ratings
S O U T H K O R E A
DAEWOO SHIPBUILDING: Creditors Set to Pump KRW4.2 Trillion
- - - - -
=================
A U S T R A L I A
=================
KOKO BLACK: Placed in Administration
------------------------------------
Salvatore Algeri and Glen Kanevsky of Deloitte were on Nov. 10,
2015 appointed as administrators of:
-- Koko Black Holding Pty Ltd;
-- Koko Black Chadstone Pty Ltd;
-- Koko Black Doncaster Pty Ltd;
-- Koko Black Chocolate Pty Ltd;
-- Koko Black Perth Pty Ltd;
-- Koko Black Canberra Pty Ltd;
-- Koko Black Group Pty Ltd;
-- Koko Black Retail Pty Ltd;
-- Koko Black Royal Pty Ltd trading as Koko Black; and
-- Koko Black Highpoint Pty Ltd.
Koko Black is a Melbourne based family owned chocolatier.
MENI'S TAILORING: First Creditors' Meeting Set For Nov. 18
----------------------------------------------------------
Peter Gountzos, Richard J Cauchi and Michael Carrafa of SV
Partners were appointed as administrators of Meni's Tailoring &
Alterations Pty. Limited, trading as Arthur Galan Ag, on Nov. 6,
2015.
A first meeting for each of creditors will be held at the offices
of SV Partners, Level 17, 200 Queen Street, Melbourne, Victoria,
on Nov. 18, 2015, at 11:00 a.m.
=========
C H I N A
=========
CHINA: Cash Crunch Poses Risk to Debt-Fueled Bond Rally
-------------------------------------------------------
Bloomberg News reports that at the end of every year, China faces
a cash crunch as banks close their books and bonds usually suffer.
This time, an unprecedented debt-fueled bond rally means there's
little room for error.
Seven-day note repurchase rates have been 72 basis points
higher in November and December than the annual average in
the last five years, Bloomberg discloses. Yields on three-year AAA
corporate bonds jumped an average of 29 basis points in those two
months. The monthly volume of repo agreements -- a form of
borrowing used by investors to increase their buying power -- rose
86% from January to CNY39.6 trillion ($6.2 trillion) in October,
Bloomberg reports citing data from the Chinamoney website.
"Cash shortages are still possible if the PBOC's liquidity
injection comes one step late," Bloomberg quotes Qiu Xinhong, a
bond fund manager in Shenzhen at First State Cinda Fund Management
Co., as saying. "If it happens, it will force some investors to
delever, which will cause some fluctuations in the bond market."
According to Bloomberg, the People's Bank of China needs to strike
a balance between addressing the slowest economic expansion in a
quarter century and avoiding adding fuel to a bond market that
analysts surveyed by Bloomberg said is "overheating."
Any additional PBOC easing could cause capital outflows and weaken
the yuan just as the U.S. Federal Reserve considers raising
interest rates, the report states.
There's an increasing amount of money at stake in the
fixed-income market, Bloomberg says. Assets managed by domestic
bond mutual funds soared 33% last quarter while those for equity
funds dropped 37% from the previous three months amid the nation's
stock rout, according to Chinafund.cn, a website providing fund
information, Bloomberg relays.
Bloomberg notes that tightened liquidity can cause strain for
leveraged investors who are looking to amplify their returns.
"It all depends on how good the PBOC is in liquidity
management," the report quotes Qiu of First State Cinda Fund as
saying. "The PBOC has no intention to let liquidity get tight."
The seven-day repurchase rate will probably average 2.2
percent for the remainder of 2015, down from 2.36% in
October, based on the median of 20 estimates in a Bloomberg
survey. As borrowing costs fell, Chinese companies issued a record
CNY6 trillion of notes this year compared with
CNY5.9 trillion in all of 2014, according to data compiled by
Bloomberg. The extra yield on five-year AAA corporate bonds over
similar-maturity government notes has fallen to a record low 79
basis points.
"The seasonal risk that liquidity could tighten in the bond
market at the year end can't be ignored," Bloomberg quotes Xu Gao,
Beijing-based chief economist at Everbright Securities Co., as
saying.
According to Bloomberg, President Xi Jinping announced the
government's bottom-line goal of 6.5% annual economic growth this
week, ushering in the first era of sub-7% growth since the 1970s.
Onshore bond defaults, while still rare, are rising. There have
been at least five companies, mostly in manufacturing sectors,
that have reneged on onshore notes this year after the first ever
in 2014, Bloomberg discloses. Companies with less cash than short-
term debt, net losses and shrinking revenue have jumped to 200
from 115 last year, according to filings through June 30 compiled
by Bloomberg from firms listed on the Shanghai and Shenzhen stock
exchanges.
"The key risk for China's bond market is rising corporate
defaults as the economy slows," Bloomberg quotes Xia Le, a
Hong Kong-based economist at Banco Bilbao Vizcaya Argentaria SA,
as saying. "This could shake investors' confidence as it reflects
a deteriorating real economy."
CHINA: Trade Drop Means More Stimulus Measures Are Coming
---------------------------------------------------------
Bloomberg News reports that a contraction in China's trade flows
shows little alternative for the nation's leaders than injecting
support for domestic demand as they struggle to achieve their
growth target.
Overseas shipments dropped 6.9% in October in dollar terms, the
customs administration said on Nov. 8, a bigger decline than
estimated by all 31 economists in a Bloomberg survey. Weaker
demand for coal, iron and other commodities from declining heavy
industries helped push imports down 18.8%, leaving a record trade
surplus of $61.6 billion, Bloomberg discloses.
Bloomberg notes that the report set a soft tone for a data-heavy
week featuring key October releases. Industrial production and
fixed-asset investment are forecast to show little pickup, even
after six central bank interest-rate cuts and moves to spur local
government spending. The silver lining: retail sales gains are
seen underscoring the rising role of consumers, Bloomberg says.
Bloomberg relates that while an expanding middle class propels
revenue and earnings at companies like Internet giant Alibaba
Group Holding Ltd. -- which on Nov. 4 hosts Singles Day, the
year's biggest shopping event -- it hasn't been enough to offset
declining heavy industries. Exports helped stoke China's rapid-
growth phase, a period that now seems over as the global economy
decelerates.
"The October trade data keep pressure on for more domestic
easing," Bloomberg quotes Louis Kuijs, head of Asia economics at
Oxford Economics in Hong Kong, as saying. "Measures are likely to
continue to focus on shoring up domestic demand rather than
weakening the currency. And over time the role of fiscal policy
expansion should rise."
Other figures this week are projected to show continued deflation
in the industrial sector, and consumer-price inflation softening
in October to a 1.5% annual pace, according to Bloomberg. That
weakness would underscore the scope for additional easing by the
People's Bank of China.
Sunday's [Nov.8] trade report showed exports to Japan slumped 9%
in the first 10 months from a year earlier, while those to the
European Union declined 3.7%. Shipments to Hong Kong dropped 11.7%
during the period, notes the report.
"Exports continue to face structural headwinds," the report quotes
Rajiv Biswas, Asia-Pacific chief economist at IHS Global Insight
in Singapore, as saying. "With recent economic data continuing to
indicate some moderation in Chinese economic growth during the
second half of 2015, the Chinese government may utilize additional
monetary and fiscal stimulus measures to boost gross domestic
product growth in 2016."
CHINA SHANSHUI: Cash Insufficient to Repay Onshore Debt
-------------------------------------------------------
Bloomberg News reports that China faces another test in credit
markets after a cement maker said it's unsure if it can repay an
onshore note due this week after a shareholder tussle stymied
financing.
China Shanshui Cement Group Ltd. cited its "current cash position
and the difficulties it faces in raising financing" in noting the
uncertainty over repayment of the CNY2 billion ($315.2 million)
securities that were issued in April this year with a 5.3% coupon
and mature Nov. 12, according to Bloomberg. While the company has
been seeking financing since June, all the financial institutions
it contacted "have expressed concern in relation to the
uncertainty of the management," it said in the statement,
Bloomberg relays.
Defaults at China's companies, the world's biggest corporate
borrowers, have spread this year amid the weakest economic growth
in a quarter century that's hurt industries such as cement,
Bloomberg says. Coal trader Winsway Enterprises Holdings Ltd.
failed to pay interest on dollar bonds for a second time this year
in October while Hidili Industry International Development Ltd.
didn't repay its dollar bond due Nov. 4.
"If Shanshui defaults, it will curb investors' demand for riskier
bonds," Bloomberg quotes Zhang Li, a bond analyst at Guotai Junan
Securities Co. in Beijing, as saying. "But we can't exclude the
possibility it will be able to get the money somewhere to pay."
If Shanshui were to default, it would become at least the sixth
company to renege on onshore bonds this year, adds Bloomberg.
As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 10, 2015, Standard & Poor's Ratings Services lowered its
long-term corporate credit rating on China-based cement producer
China Shanshui Cement Group Ltd. to 'CC' from 'CCC'. The outlook
is negative. S&P also lowered the rating on the company's
outstanding senior unsecured notes to 'CC' from 'CCC-'. At the
same time, S&P lowered its long-term Greater China regional scale
ratings on Shanshui to 'cnCC' from 'cnCCC', and that on its notes
to 'cnCC' from 'cnCCC-'.
"The downgrade reflects our view that there is a high likelihood
that Shanshui will not repay its Chinese renminbi [RMB] 2 billion
onshore super short-term commercial paper due Nov. 12, 2015," said
Standard & Poor's credit analyst Jian Cheng. "A failure to repay
this debt would trigger a cross-default of the company's other
financial obligations, including that of its outstanding U.S.
dollar notes."
China Shanshui Cement Group Limited is engaged in manufacturing
and sale of cement and clinker, and limestone mining. The Company
is engaged in the production and sales of various types of
cements, and the production of commodity clinker necessary for
various types of high grade cements in Shandong and Liaoning
Provinces. The commodity clinker produced by the Company is mainly
sold to clients with cement grinding station. The cement produced
by the Company under the brand of Shanshui Dongyue is widely used
in construction works for roads, bridges, housing and various
types of construction projects. The Company operates in four
geographical areas: Shandong Province, Northeastern China,
Xinjiang Region and Shanxi Province.
=========
I N D I A
=========
CENTURY 21: ICRA Reaffirms B+ Rating on INR58cr Loan
----------------------------------------------------
ICRA has reaffirmed the long term rating assigned to INR58.0 crore
fund based facilities of Century 21 Town Planners Private Limited
at [ICRA]B+. ICRA has also assigned its rating of [ICRA]B+ to the
INR36.0 crore long term fund based limits.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based 58.0 [ICRA]B+; (Re-affirmed)
Fund Based 36.0 [ICRA]B+; (Assigned)
The rating reaffirmation positively factors in the stability in C-
21 mall operations as characterized by the Full occupancy and Y-o-
Y revenue growth of 8% in FY 2015 led by the growing collections
from rental income and revenue share and the presence of escrow
mechanism with debt servicing reserve account for the existing
loan. Further the ratings continue to take into consideration the
satisfactory tenant profile of the mall and the experience of the
promoters in the real estate industry.
The rating however remains constrained on account of the company's
exposure to execution risk pertaining to its newly commenced
commercial complex project in the name of C21 Business Park
Babylon in Indore, the construction for which is in initial
stages. The company also remains exposed to the funding risk since
the debt for the project is yet to be tied up. Further, ICRA notes
that the group has recently acquired Treasure Island mall in
Indore, for which CTTPL has provided funding support (Unsecured
loans of INR30.0 cr extended to group entity). While this mall is
expected to commence operations in Q4 FY 2016, any further support
or returns to CTTPL from it will be a rating sensitivity.
The assigned ratings further take into consideration the
refinancing of CTTPL's Lease Rental discounting loan which has
helped it partly fund the mall acquisition as well as the C21
Business Park Babylon project and is expected to support the
liquidity position in the short term. While the overall
indebtedness has increased, the longer tenor of the loan has
spread out the debt servicing obligations. Nevertheless, the
impact of the new debt for the commercial project and the
associated terms will remain a key rating factor.
Going forward, the company's ability to maintain occupancy and
debt coverage in the existing mall operations will be a rating
sensitivity. Further, ability to manage cash flows given the
ongoing capex, debt sanction and terms for the same and inter
group transactions will also be rating sensitivities.
CTTPL has been promoted by Mr. Gurjeet Singh Chhabra and is
currently operating a mall (C-21 Mall) in Indore, Madhya Pradesh
with a gross leasable area of 3.5 lakh square feet. The mall is
fully leased out and some of the tenants include - More Mega
Store, Reliance Trendz, Rituwears Satyam Cineplex, Mom & Me, Tommy
Hilfiger, U.S. Polo, Wills Lifestyle, Arrow, U.S. Polo, Pepe
Jeans, Nike, Lilliput, Archies, Adidas etc. The company is also
taking up a commercial project in the name of C21 Business Park
Babylon in Indore region at a total cost of INR~131 cr to be
funded by INR60.0 cr of term loan and balance by internal accruals
and promoter contribution.
Recent results
In the financial year ending March 31, 2015 (FY 2015), CTTPL had
an operating income of INR21.99 crore on which it recorded PAT of
INR6.12 crore compared to operating income of INR20.29 crore on
which it recorded PAT of INR8.41 crore in FY14.
CHANDRALOK TEXTILE: ICRA Reaffirms B- Rating on INR9cr Loan
-----------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B- to the
INR9.32 crore fund based bank facilities of Chandralok Textile
Industries Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- FB
Limit-Term Loans 0.32 [ICRA]B-; Reaffirmed
Long Term-FB Limit
Cash Credit 9.00 [ICRA]B-; Reaffirmed
The assigned ratings continue to be constrained by Chandralok
Textile Industries Private Limited's (CTIPL) weak financial risk
profile which is characterized by low profitability, leveraged
capital structure and tight liquidity position as reflected in
high working capital intensity as well as almost full utilization
of working capital limits. ICRA also takes into consideration
Company's exposure to a high degree of competition and the low
value additive nature of business, which has resulted in low
profitability levels.
The ratings however, favorably factor in the promoter's experience
in the textile industry, favorable growth in operations since last
few years as well as location advantage enjoyed by the company due
to its presence in the Bhiwandi; a textile hub of Maharashtra
providing proximity to customers and raw material sources.
CTIPL was incorporated in the year 2003 and is engaged in the
business of processing grey cloth in order to produce fabric that
is used to make suiting, shirting and dress materials. The company
has a registered office in Mumbai and its manufacturing unit is in
Bhiwandi (Thane). Mr. Chandramohan Chaudary is the key director of
the company having an experience of more than four decades within
the textile industry.
DHIMAN INDUSTRIAL: ICRA Assigns B+ Rating to INR3.20cr Loan
-----------------------------------------------------------
ICRA has assigned an [ICRA]B+ rating to the INR3.20 crore term
loans facility and INR3.00 crore cash credit facility of Dhiman
Industrial Fabricators & Designers. ICRA has also assigned an
[ICRA]A4 rating to the INR2.00 crore short term non fund based
facilities of DIFD. ICRA has also assigned the ratings of
[ICRA]B+/A4 to unallocated limits of INR0.10 crore of DIFD.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term loans 3.20 [ICRA]B+; Assigned
Cash Credit Limits 3.00 [ICRA]B+; Assigned
Letter of Credit 2.00 [ICRA]A4; Assigned
Unallocated Limits 0.10 [ICRA]B+/A4; Assigned
The assigned ratings take into account the firm's moderate scale
of operations with financial profile characterized by stretched
capital structure and expected pressure on credit metrics on
account of debt funded capex; ICRA also notes the firm's
susceptibility of profits to raw material (mainly steel) price
fluctuations given its high inventory holding period as well as
exposure to cyclicality inherent in the steel industry is likely
to make the cash flows volatile. Further assigned ratings also
take into account that DIFD being a proprietorship concern; is
exposed to capital withdrawal risk.
The assigned ratings, however, consider the long standing
experience of promoter in providing steel fabrication services as
well as diversification in product profile providing revenue
visibility in the near term.
Established in 2007, Dhiman Industrial Fabricators & Designers
(DIFD) is owned and managed by Mr. Rajesh Dhiman. The firm started
undertaking steel fabrication work especially for wind mill towers
on job work basis, however latter in 2013 the entity ventured into
construction of pre-engineered steel building (PEB) and its
various components, construction of supporting buildings and
sheds, windmill towers, M.S as well as S.S. storage tanks,
fabrication and erection of chimneys & flare stack towers, site
fabrication, erection and execution of Trunkey projects, cement
coating and lining, sand & short blasting of fabricated items,
painting work, fabrication/installation of pipe plant machineries,
laying work of M.S. pipe line for water supply pipe lins with
civil work & fabrication of steel pipes. The firm started its own
factory in 2013 which is located in Eyava Village; Sanand plant
having the capacity of 5 windmill towers per month, 25 foundation
can per month, further all other cutting related work is done in
this factory as the same is equipped with CNC machine. Further the
firm also started one new factory in 2015 located in Khoda, Sanand
which has capacity of manufacturing 20 Foundation cans per month.
Recent Results
During FY15 as per unaudited provisional results, the firm
reported operating income of INR24.44 crore and net profit of
INR0.2.69 crore.
ELROY MOTORS: CRISIL Assigns B+ Rating to INR160MM Loan
-------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Elroy Motors Private Limited (EMPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 10 CRISIL B+/Stable
Electronic Dealer
Financing Scheme
(e-DFS) 160 CRISIL B+/Stable
The rating reflects EMPL's modest scale of operation, low
profitability margins, working capital-intensive operations and
weak financial risk profile because of high gearing and modest
debt protection metrics. These weaknesses are mitigated by the
expected healthy sales growth, supported by demand for newly
launched models of Hyundai Motors India, and the promoter's
funding support.
Outlook: Stable
CRISIL believes EMPL will benefit over the medium term from the
expected healthy sales growth and promoter's funding support. The
outlook may be revised to 'Positive' if the financial risk profile
improves, driven by better sales and profitability. Conversely,
the outlook may be revised to 'Negative' if the financial risk
profile weakens owing to lower-than-expected sales and
profitability, or stretched working capital cycle.
EMPL, incorporated in 2014, is promoted by Mr. Ankit Yadav. It is
an authorised dealer of Hyundai Motors India passenger cars. The
company began operations from November 2014 with a showroom in
Defence Colony, and a service centre in Okhla (both in New Delhi).
G.V.D. TEXTILES: CRISIL Reaffirms B+ Rating on INR106MM Cash Loan
-----------------------------------------------------------------
CRISIL's ratings on the bank facilities of G.V.D. Textiles Private
Limited (GVD) continue to reflect GVD's average financial risk
profile because of a small net worth and average debt protection
metrics.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 106 CRISIL B+/Stable (Reaffirmed)
Term Loan 9 CRISIL B+/Stable (Reaffirmed)
The ratings also factor in its small scale, working capital
intensive nature of operations and the susceptibility of the
company's margins to volatility in raw material prices. These
rating weaknesses are partially offset by the experience of the
promoter in the textile industry.
Outlook: Stable
CRISIL believes GVD will continue to benefit over the medium term
from its strong track record, and promoter's experience, in the
textile industry. The outlook may be revised to 'Positive' if
there is a significant increase in revenue and profitability,
resulting in improvement in cash accruals. Conversely, the outlook
may be revised to 'Negative' in case of a considerable decline in
accrual, or deterioration in the working capital management, or
large debt-funded capital expenditure (capex), weakening the
company's financial risk profile.
GVD was originally set up as a proprietary concern in 1983; the
firm was reconstituted as a private limited company. GVD, promoted
by Mr. D Krishnamurthy, manufactures cotton yarn.
GEETHA KRISHNA: ICRA Reaffirms B+ Rating on INR13cr Term Loan
-------------------------------------------------------------
ICRA has re-affirmed the long-term rating outstanding on the
INR13.00 crore* term loan facilities and INR12.00 crore fund based
facilities of Geetha Krishna Spinning Mills Private Limited at
[ICRA]B+ .
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term loan facilities 13.00 [ICRA]B+ reaffirmed
LT-Fund based facilities 12.00 [ICRA]B+ reaffirmed
The rating reaffirmation considers the experience of promoter in
the textile industry and the established relationship with
customers, which ensures repeat orders in the domestic market. The
ratings also factor in the healthy growth in operating income by
~18.4% in FY15 on the back of increase in volumes aided by higher
orders received during the year; however, the operating margin had
contracted from 13.7% to 11.6% during the period due to inventory
losses following the drop in yarn prices in H1, FY15 and rise in
employee expenses. The rating also considers the reduction in
working capital intensity following the lower inventory holding
levels resulting in lower dependence on borrowings. This coupled
with repayment of term debt has led to improvement in gearing from
2.4x to 2.0x as on March 31, 2015. That said, the company has
capex plans of ~Rs. 3.5 crore in the current fiscal which is
primarily debt-funded and with sizable repayment obligations in
the range of INR3.2 - 4.0 crore falling due over the medium term,
the ability of the company to maintain its scale and working
capital intensity while improving its margins remains critical.
Further, the rating remains constrained by the company's small
scale of operations, which limits benefits from economies of
scale; intense competition which limits pricing flexibility and
vulnerability of earnings to volatility in cotton and yarn prices.
M/s. Geetha Krishna Spinning Mills Private Limited, incorporated
in 1993 at Rajapalayam, is engaged in manufacturing and selling of
cotton yarn in both cone and hank form. The Company manufactures
carded and combed cotton yarn in the count range of 40s to 80s and
also manufactures value added yarns like compact yarn and doubled
yarn. The Company has a total installed capacity of 31,920
spindles. The company has also installed a wind mill with a
generation capacity of 750KW at Nagercoil.
Recent Results
The Company reported a net profit of INR0.7 crore on an operating
income of INR44.9 crore during 2014-15, as against a net profit of
INR0.7 crore on an operating income of INR37.9 crore during 2013-
14.
GOVIND CABLE: ICRA Reaffirms 'B' Rating on INR5.0cr Loan
--------------------------------------------------------
ICRA has reaffirmed its long-term rating of [ICRA]B on the INR5.00
crore fund based bank limits of Govind Cable Industries. ICRA has
also reaffirmed its short term rating of [ICRA]A4 on the INR5.00
crore non-fund based limits of the firm.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits 5.00 [ICRA]B; reaffirmed
Non Fund Based Limits 5.00 [ICRA]A4; reaffirmed
ICRA's ratings continue to be constrained by GCI's modest scale of
operations and the high competitive intensity of the industry, due
to the presence of a large number of companies from the
unorganized sector, as well as established players. The ratings
also factor in the firm's high working capital intensity (NWC/OI
of 74% as on March 31, 2015) on account of the high inventory and
receivable levels being maintained by the firm. Further, the
profitability of the firm remains exposed to fluctuation in prices
of raw materials (copper and aluminium). The ratings also take
into account the stretched liquidity position of the firm as
evidenced by the full utilisation of its bank limits. ICRA also
takes note of the partnership constitution of the firm, which
exposes it to risks such as withdrawal of capital, dissolution
etc. However, the ratings favorably take into account the long
experience of the promoters in cable manufacturing and the firm's
established relationships with reputed customers such as Bharat
Heavy Electricals Limited, Oil and Natural Gas Corporation, NTPC
Limited etc. The ratings also favorably factor in the improvement
in the firm's margins on account of installation of in-house wire
drawing facility.
Going forward, the ability of the firm to attain a sustained
improvement in its working capital cycle, with a resultant
positive impact on its leverage and coverage ratios and its
liquidity position, will be the key rating sensitivities.
GCI was incorporated in 1978 by the Agarwal family and its
manufacturing facility is located in Sahibabad, Uttar Pradesh. The
firm manufactures low-tension cross linked polyethylene and low
tension polyvinyl chloride power cables and control,
instrumentation/signal cables etc. It supplies these cables mainly
to the steel and power industries.
Recent Results
GCI reported a net profit of INR0.21 crore on an operating income
of INR19.17 crore in FY 2014-15, as compared to a net profit of
INR0.19 crore on an operating income of INR18.17 crore in the
previous year.
GOYAL AGENCIES: CRISIL Ups Rating on INR240MM Cash Loan to B
------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facility of
Goyal Agencies Ltd (GAL) to 'CRISIL B/Stable' from 'CRISIL B-
/Stable', and reaffirmed its rating on the short-term bank
facilities at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 240 CRISIL B/Stable (Upgraded
from 'CRISIL B-/Stable')
Letter Of Guarantee 5 CRISIL A4 (Reaffirmed)
Letter of Credit 80 CRISIL A4 (Reaffirmed)
The upgrade reflects GAL's better liability management - it used
its cash flows to prepay a portion of its debt, which resulted in
an improvement in its capital structure. GAL registered cash flow
from operations of INR60 million in 2014-15 (refers to financial
year, April 1 to March 31), and used the same to prepay its term
loan and reduce its reliance on short-term debt. Subsequently, the
gearing of the company declined to 3.0 times as on March 31, 2015
from 3.9 times as on March 31, 2014. CRISIL believes that GAL will
sustain its improved financial risk profile over the medium term
supported by consistent growth in its net-worth and absence of any
large debt-funded capital expenditure (capex) programme.
The ratings continue to reflect GAL's modest scale of operations,
its large working capital requirements, and its exposure to
intense competition in the industrial equipment trading business.
The ratings of the company is also constrained on account of its
average financial risk profile marked by its modest net-worth,
high gearing, and average debt protection metrics. These rating
weaknesses are partially offset by the extensive experience of
GAL's promoters in the industrial equipment trading business, and
established relationships with principals.
Outlook: Stable
CRISIL believes that GAL would continue to benefit over the medium
term from its promoters extensive industry experience and its
established relations with its principals. The outlook may be
revised to 'Positive' if GAL registers a sustained improvement in
its working capital cycle, or there is a substantial improvement
in its capital structure on the back of sizeable equity infusion
from its promoters. Conversely, the outlook may be revised to
'Negative' in case of a steep decline in the company's
profitability margins, or significant deterioration in its capital
structure caused most likely by a stretch in its working capital
cycle.
GAL was set up in 1958 as a partnership firm by Mr. Rajinder
Prashad and his family members, and was reconstituted as a public
limited company in 1985. The company trades in industrial
machinery such as welding, cutting, and grinding equipment. It is
based in Jalandhar.
GRAND HYUNDAI: CRISIL Assigns B+ Rating to INR80MM Loan
-------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Grand Hyundai (GH).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL B+/Stable
Inventory Funding
Facility 80 CRISIL B+/Stable
The rating reflects GH's below-average financial risk profile
because of weak total outside liabilities to tangible net worth
ratio and debt protection metrics. The rating also factors in the
modest scale of operation in an intensely competitive automobile
dealership industry, and low bargaining power with its principal,
Hyundai Motor India Ltd (Hyundai). These weaknesses are mitigated
by the promoters' extensive experience and strong relationship
with its principal.
Outlook: Stable
CRISIL believes GH will continue to benefit from the extensive
experience of the promoters in the industry. The outlook may be
revised to 'Positive' if revenue and profitability of the firm
improves significantly while improving its capital structure.
Conversely, the outlook may be revised to 'Negative' if a larger-
than-expected, debt-funded capital expenditure programme or a
sharp decline in revenue or profitability or deterioration in
working capital management weakens the financial risk profile.
Set up in April 2012, GH is mainly engaged in Hyundai's dealership
for sale of cars, spares and service of vehicles in Kerala. The
firm has seven showrooms and three service centers. The day to day
operations are managed by Mr.Mohammed Iqbal.
HIMAGIRI HOSPITALS: ICRA Assigns B+ Rating to INR6.0cr Loan
-----------------------------------------------------------
ICRA has assigned a long-term rating of [ICRA]B+ to the INR6 crore
term loans, INR2.25 crore cash credit limits and INR1.75 crore
unallocated limits of Himagiri Hospitals Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 6.00 [ICRA]B+ assigned
Cash Credit 2.25 [ICRA]B+ assigned
Unallocated limits 1.75 [ICRA]B+ assigned
The assigned rating is constrained by small scale of operations of
the hospital with operating income of INR13.16 crore in FY15, high
competition with presence of large number of established players
in the vicinity of the hospital and also from other major
hospitals in Hyderabad, and revenue concentration risk owing to
its presence in the single location.
The rating is also constrained by stretched capital structure on
account of erosion of networth on the back of net losses incurred
in the nascent stages of operations and stretched coverage
indicators. The rating, however positively factors in steady
increase in hospital revenues from INR0.09 crore in 2M FY13 to
INR13.16 crore in FY15 owing to increase in occupancy levels;
experienced and reputed team of doctors and also central location
of the hospital ensuring patient footfall.
Going forward, ability of the company to improve its occupancy and
profitability, thereby improving its capital structure are key
rating sensitivities from credit perspective.
Himagiri Hospitals Private Limited (HHPL) was incorporated in 2011
and the directors of the company are Mr. P.Shankar Reddy and his
wife Mrs.Andalu and Mr. P. Rajeshwar Reddy and Dr. M. Swathi
Reddy. HHPL operates 117 bed hospital (20 Intensive Care Unit
(ICU) beds and remaining Non-ICU beds) in Gachibowli, Hyderabad
.The hospital provides services across specializations like
Gynecology, Orthopedics, Neuro Surgery, Gastroenterology,
Nephrology, Neurology, Pulmonology, Opthalmology etc.
Recent Results
According to unaudited results, the firm reported profit after tax
of INR0.60 crore on an operating income of 13.16 crore for FY2015,
as against net loss of INR1.05 crore on an operating income of
INR1.25 crore during FY2014.
HOTEL MAGIC: CRISIL Assigns B Rating to INR35MM Term Loan
---------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facility of Hotel Magic Mountain (HMM).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Term Loan 35 CRISIL B/Stable
The rating reflects HMM's exposure to risk associated with timely
completion and stabilisation of ongoing hotel project, and
susceptibility to geographical concentration and cyclicality in
the hospitality industry. These weaknesses are partially offset by
the extensive industry experience of the firm's promoters.
Outlook: Stable
CRISIL believes HMM will continue to benefit over the medium term
from promoters' extensive industry experience. The outlook may be
revised to 'Positive' if the firm implements hotel project on time
without any significant cost overrun and demonstrates higher-than
expected occupancy level, leading to improvement in liquidity.
Conversely, the outlook may be revised to 'Negative' in case of
any significant time or cost overrun in commissioning project,
leading to pressure on liquidity.
Established in 2015 by the Gangtok-based Mr. Yoland Christopher
and his sister, Ms. Stepheny Christopher, HMM is currently setting
up a three-star hotel in Gangtok.
IBD UNIVERSAL: ICRA Assigns 'B' Rating to INR49cr Term Loan
-----------------------------------------------------------
ICRA has assigned its long term rating of [ICRA]B to the INR49.00
crore term loans and INR5.00 crore fund based facility of IBD
Universal Pvt Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 49.00 [ICRA]B; (assigned)
Fund based facilities 5.00 [ICRA]B; (assigned)
ICRA's rating factors in the overall execution and market risks
across the ongoing projects of the company. Of the five ongoing
projects of the company, two projects ('King's Park-1' and 'IBD
Emporia') remain in initial to middle stage of construction.
Further, around 36% of the total saleable area has been booked
which exposes the company to market risks for the balance area.
The rating is also constrained by the geographic concentration
risk, as all the projects are located in Bhopal. Apart from the
pending debt sanction for the 'Queens Court' project, the
company's funding requirements are likely to be substantial given
that debt repayments have already commenced for its ongoing
projects. Thus, the company's ability to achieve additional
bookings or alternatively receive support from promoters would be
critical for cashflow management.
ICRA, however, takes comfort from the execution track record of
the promoters, spanning more than 15 years, the established brand
name of the IBD Group in Central India and low approval risks for
the ongoing projects. The rating also factors in the moderate
collection efficiency of the projects (consolidated efficiency of
84%). ICRA notes that IBDU's project 'King's Park-1' has been
recently completed, with 93% of the total inventory being sold.
This, along with additional inventory of developed plots from
three other completed projects can provide some cash flow support
going forward.
Apart from improvement in bookings, timely and adequate support
from the promoters, and extent of additional investments in land
and other group companies will be the key rating sensitivities.
IBDU was incorporated in 1999 and is the flagship company of the
IBD Group of Central India. IBDU is headed by Lt. Vinay Bhadauria
and Mr. Anil Kumar Nigam who hold a 31% and 33% stake
respectively. Currently, the company is executing 5 projects in
Bhopal, Madhya Pradesh which are in various stages of execution.
'Hallmark Citii' is the affordable housing project of the company
and IBDU is currently developing phases III and IV of this
project. 'IBD Emporia' is the commercial phase within the Hallmark
Citii Township. Other than this, IBDU is developing a high end
residential apartment project 'Kings Park' and a villa project,
'Queens Court', in a Joint Development agreement with the land
owners. The company has started developing 'Kings Park 2' which is
an extension of 'Kings Park 1', wherein 2 towers will be
constructed apart from the 4 towers in 'Kings Park 1'.
Recent results
IBDU reported a net profit of INR3.01 crore on an operating income
(OI) of INR64.07 crore in FY 2014, as compared to a net profit of
INR3.17 crore on an OI of INR63.61 crore in the previous year.
INCA HAMMOCK: CRISIL Assigns B+ Rating to INR111MM Loan
-------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Inca Hammock Manufacturing and Export Pvt
Ltd (INCA). The ratings reflect modest scale of operations and
large working capital requirement. These weaknesses are partially
offset by promoters' extensive experience in the hammock
manufacturing business.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Letter of Credit 15 CRISIL A4
Foreign Bill
Discounting 64 CRISIL B+/Stable
Bank Guarantee 10 CRISIL A4
Export Packing
Credit 111 CRISIL B+/Stable
Outlook: Stable
CRISIL believes INCA will continue to benefit from its promoters'
extensive industry experience and established relationships with
customers. The outlook may be revised to 'Positive' if the company
significantly scales up operations while maintaining operating
profitability, or improves working capital management, resulting
in a better financial risk profile. Conversely, the outlook may be
revised to 'Negative' in case of decline in accrual, or higher-
than-expected working capital requirement, leading to weakening of
financial risk profile.
Incorporated in 1994, Chennai-based INCA manufactures and exports
hammocks. Operations are managed by director Mr. D S Bhatt.
INCA reported profit after tax (PAT) of INR5.48 million on total
revenue of INR264.08 million for 2014-15 (refers to financial
year, April 1 to March 31), against PAT of INR0.13 million on
total revenue of INR261.62 million for 2013-14.
ISCON CRAFT: CRISIL Ups Rating on INR82.5MM Term Loan to B+
-----------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Iscon Craft Paper Mill Pvt Ltd (ICPM) to 'CRISIL B+/Stable' from
'CRISIL B/Stable' and reaffirmed its rating on the short-term bank
facilities at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 5 CRISIL A4 (Reaffirmed)
Cash Credit 55 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Letter of Credit 5 CRISIL A4 (Reaffirmed)
Proposed Long Term 2.5 CRISIL B+/Stable (Upgraded
Bank Loan Facility from 'CRISIL B/Stable')
Term Loan 82.5 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
The upgrade reflects CRISIL's belief ICPM's business risk profile
will improve over the medium term backed by stabilisation of its
operations. The company reported net sales of INR308.3 million and
moderate operating margin of 9 per cent for 2014-15 (refers to
financial year, April 1 to March 31). CRISIL believes revenue will
grow at a pace of 20-25 per cent over the medium term.
The ratings reflect small scale of operations in the highly
fragmented paper industry, susceptibility of operating
profitability to volatility in raw material prices, and below-
average financial risk profile because of high gearing. These
weaknesses are partially offset by promoters' extensive industry
experience and established relationships with customers and
suppliers.
Outlook: Stable
CRISIL believes ICPM will continue to benefit over the medium term
from its promoters' extensive industry experience. The outlook may
be revised to 'Positive' if scale of operations is higher than
expected and financial risk profile improves because of better
profitability. Conversely, the outlook may be revised to
'Negative' if revenue and operating profitability are
substantially low or if working capital cycle lengthens, weakening
financial risk profile.
Established in 2011, ICPM manufactures kraft paper and has
capacity of 24,000 tonnes per annum at its plant in Vadodara
(Gujarat). It is managed by Mr. Ishwarbhai Patel, Mr. Jayantibhai
Patel, and Mr. Bharatbhai Pokar.
JAMUJARA LUBRICANTS: Ind-ra Assigns 'IND B-' LT Issuer Rating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Jamujara
Lubricants Private Limited (JLPL) a Long-Term Issuer Rating of
'IND B-'. The Outlook is Stable.
KEY RATING DRIVERS
The ratings are constrained by JLPL's limited track record as it
commenced operations only from June 2015. The ratings are also
constrained by the company's small scale of operations as
reflected from its capacity of 10,800 tons/year. The liquidity is
also tight as reflected from the full utilisation of its working
capital limits during the seven months ended September 2015 along
with instances of overutilisation which were regularised within
two days.
The ratings, however, consider JLPL's director's five-decade-long
experience in the zinc sulphate manufacturing business.
RATING SENSITIVITIES
The stabilisation of operations leading to an improvement in the
revenue and credit profile will be positive for the ratings.
COMPANY PROFILE
Incorporated in 2005, JLPL manufactures zinc sulphate. It is
managed by Mr Sambhunath Jaiswal and has a registered office in
Jamshedpur.
K. PALANIAPPA: Ind-ra Upgrades Bank Loans Rating From 'IND BB+'
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded K. Palaniappa
Memorial (KPM) Educational Trust's INR150m bank loans (increased
from INR100m) to 'IND BBB-' from 'IND BB+ with a Stable Outlook.
KEY RATING DRIVERS
Improved Operating Margins: The upgrade reflects an improvement in
KPM trust's operating margins, excluding rent, by 10.87 percentage
points to 55.19% in FY14. This was due to tight expenses
management leading to the total operating expenditure declining
19.56% yoy to INR46.68m in FY14. Also, the total operating income
increased 13.56% yoy to INR100.60m.
Revenue Diversity: The trust's diversified revenue profile
continues to support the rating. Tuition fee (average FY10-FY14:
59.88%), which grew at a CAGR of 22.15% over FY10-FY14, was the
major source of income followed by rental receipts from Rathinam
Techno Park (average: 31.42%). Tuition fee from colleges
proportioned 59.46% to the total tuition fee and school's fee
proportioned 11.06% in FY14. At FYE14, KPM Trust's total income
was INR100.93m and total expenditure was INR93.46m.
Growing Headcount: Students' headcount, including the school's,
increased to 3,168 in FY15 from 3,043 students in FY14; 3,435
students (up 8.43% yoy) are studying for the academic year 2015-
2016. Students' strength for the trust's colleges increased at a
CAGR of 17.67% over FY10-FY14, indicating the increasing demand
for the institutes' courses.
Increased Leverage: KPM trust's debt including rent/current
balance before interest, depreciation and rent increased to 2.82x
in FY14 from 2.21x in FY13. This was due to a 52.01% yoy rise in
debt le to INR157.39m in FY14. Debt, including rent, in relation
to the total income also increased to 155.94% in FY14 from 101.36%
in FY13. The trust's debt service coverage ratio increased
marginally to 1.70x in FY14 from 1.32x in FY13.
Limited Balance Sheet Resources: The rating remains constrained by
the trust's tight liquidity profile as reflected in low available
funds -- cash and unrestricted investments to cover the operating
expenditure and dent. Available fund cover to financial leverage
and operating expenditure were 1.56% (FY13: 1.87%) and 5.26%
(3.34%), respectively, in FY14.
RATING SENSITIVITIES
Positive: Significant growth in the revenue base leading to an
improvement in the leverage ratios and liquidity profile could
trigger a positive rating action.
Negative: Any unexpected fall in the student demand in conjunction
with disproportionate increase in debt resulting in further
deterioration in the leverage ratios could trigger a negative
rating action.
COMPANY PROFILE
KPM trust, a part of Rathinam Group, was established in 1979 with
a primary school in Podanur. It was founded by Mr P Arumugam as a
not-for-profit entity. It is registered under the Indian Trust
Act, 1882 and has a registered office in Coimbatore. The trust
operates two colleges, a school and a software park -- Rathinam
Techno Park in Coimbatore.
KAYTEE CORPORATION: ICRA Suspends B+/A4 Rating on INR25cr Loan
--------------------------------------------------------------
ICRA has suspended the [ICRA]B+ and [ICRA]A4 ratings assigned to
the INR25.00 Crore fund based and non-fund based bank facilities
of Kaytee Corporation Private Limited. The suspension follows
ICRA's inability to carry out a rating surveillance in the absence
of the requisite information from the company.
LEXO CERAMIC: ICRA Reaffirms B+ Rating on INR2.50cr Cash Loan
-------------------------------------------------------------
ICRA has reaffirmed the long term rating of [ICRA]B+ to the
INR2.60 crore term loans and INR2.50 crore cash credit facility of
Lexo Ceramic. ICRA has also reaffirmed the short term rating of
[ICRA]A4 to the INR2.00 crore non fund based bank guarantee
facility of LC. ICRA has also reaffirmed [ICRA]B+ and [ICRA]A4
rating to the INR0.40 crore unallocated limits of LC.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based-Term
Loan I 1.15 [ICRA]B+ reaffirmed
Fund Based-Term
Loan II 1.45 [ICRA]B+ reaffirmed
Fund Based-Cash
Credit 2.50 [ICRA]B+ reaffirmed
Non Fund Based-
Bank Guarantee 2.00 [ICRA]A4 reaffirmed
Unallocated Limits 0.40 [ICRA]B+/[ICRA]A4 reaffirmed
The ratings continues to be constrained by Lexo Ceramic's (LC)
modest scale of operations coupled with intense competition from
the presence of established organized and unorganized tiles
players as well as modest operating and net profitability margins.
Further, ICRA takes note of the dependence of operations and cash
flows on the performance of the real estate industry (which is the
main consuming sector for the firm's products) and suspectability
of margins to raw material price volatility and gas prices.
Further, being a partnership firm, any substantial withdrawal by
the partners can have an adverse impact on the capital structure
of the firm.
The ratings, however, favorably take note of the experience of the
key promoters in the ceramic industry and the location advantage
enjoyed by LC, giving it easy access to raw material. The ratings
also favourably consider the geographically diversified clientele
and comfortable capital structure.
Lexo Ceramic is a partnership firm established in August 2008. It
is a digitally printed ceramic wall tiles manufacturer with its
plant situated at Morbi, Gujarat. The firm commenced production in
February 2010. The firm has fifteen partners out of which three
partners namely Mr. Jignesh Zalariya, Mr. Haresh Zalariya and Mr.
Lalit Detroja manage the operations of the firm. Currently, the
plant has an installed capacity of 19950 metric tonnes per annum
and it operates in two shifts of 12 hours each.
Recent Results
During FY15, LC reported an operating income of INR23.33 crore (as
against INR21.29 crore during FY14) and net profit of INR0.93
crore (as against net profit of INR0.81 crore during FY14).
MALWA AUTOMOBILES: ICRA Reaffirms B+ Rating on INR18.6cr Loan
-------------------------------------------------------------
ICRA has reaffirmed its long term rating of [ICRA]B+ on the
INR18.6 crore (enhanced from INR17.0 crore) long-term bank
facilities of Malwa Automobiles Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 18.6 [ICRA]B+; reaffirmed/assigned
The rating reaffirmation takes into account the year-on-year
decline in revenues registered by MAPL in 2014-15, owing to
decline in passenger vehicle sales in FY15, coupled with reduction
in the market share of its principal, Tata Motors Ltd (TML).
ICRA's rating continues to be constrained by the low margins of
the company, inherent to automobile dealerships; weak financial
profile characterized by high gearing and weak coverage
indicators; stretched liquidity position due to the high working
capital intensity of the company; and high competitive intensity
from dealers of other OEMs leading to pressure on sales and
profitability. ICRA's ratings, however, positively factor in the
extensive track record of the company as a dealership of TML, in
addition to the vast experience of the promoters in the automobile
dealership business; through their dealerships of Hyundai Motor
India Limited, General Motors India Private Limited (GMIPL),
Nissan Motor India Private Limited, Jaguar Land Rover and Honda
Motorcycle & Scooter India Pvt. Ltd.
Going forward, the company's ability to increase its scale of
operations and maintain profitability, while optimally managing
its working capital cycle, will remain the key rating
sensitivities.
MAPL has been operating as a Tata Motors dealership since 1999 in
Karnal, Haryana. The company has a sales showroom-cum -service
workshop, in Karnal as well as Panipat, Haryana (since 2006). As a
result of successful running of the operations in Karnal and
Panipat, the promoters have opened a new showroom in Rohini
(Delhi), which commenced operations this year. In addition to the
automobile dealership business, the company also has a HPCL fuel
pump located in Kundli, Haryana. The promoters of the company are
highly experienced in the field of automobiles and have been
engaged in this business for 35 years. Apart from MAPL, the group
also has dealerships of Hyundai Motors India Limited, Nissan Motor
India Private Ltd, GMIPL and Honda Motorcycle & Scooter India Pvt.
Ltd, in Karnal and Delhi. Malwa group has recently opened a
showroom for Jaguar, Land Rover and Range Rover also in Karnal.
Recent Results
The company reported an operating income (OI) of INR106.5 crore
and a profit after tax (PAT) of INR0.3 crore in 2014-15, as
compared to an OI of INR113.6 crore and a PAT of INR0.1 crore in
the previous year.
MAXVEL REALTECH: CRISIL Assigns B+ Rating to INR100MM Term Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facility of Maxvel Realtech Pvt Ltd (MRPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 100 CRISIL B+/Stable
The rating reflects MRPL's exposure risks related to its on-going
project and susceptibility to risks inherent in the real estate
industry. These rating weaknesses are partially offset by
promoters' extensive experience in real estate industry and
prudent funding mix for its on-going project.
Outlook: Stable
CRISIL believes MRPL will continue to benefit over the medium term
from promoters' extensive industry experience. The outlook may be
revised to 'Positive' in case the customer response to the project
is significantly better than expected leading to higher cash flow
generation and improvement in financial risk profile. On the other
hand, the outlook may be revised to 'Negative' if cash flow is
significantly below expectation, due to subdued response to the
project or lower than envisaged flow of advances, affecting its
debt servicing ability.
MRPL (formerly, Sanjay Cements Pvt Ltd) was incorporated in 1989.
It is promoted by Mr. Rajinder Khurana, Mr. Rajender Saluja, Mr.
Siddharth Agarwal, and Mr. Amarjeet Singh, and develops real
estate. The company is developing a residential complex ' Maxvel
Residency in Dehradun (Uttarakhand).
MEHER ADVANCED: CRISIL Puts B+ Ratings on Notice of Withdrawal
--------------------------------------------------------------
CRISIL has placed its ratings on the Bank Guarantee, Buyer's
Credit, Cash Credit and Letter of Credit facilities of Meher
Advanced Materials Private Limited (MAMPL) on 'Notice of
Withdrawal' for a period of 60 days on MAMPL's request. The
ratings will be withdrawn at the end of the notice period. The
rating action is in line with CRISIL's policy on withdrawal of its
ratings on bank loans.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 2.5 CRISIL A4 (Notice of
Withdrawal)
Buyer Credit Limit 97.8 CRISIL B+/Stable(Notice of
Withdrawal)
Cash Credit 12.5 CRISIL B+/Stable (Notice of
Withdrawal)
Letter of Credit 42.5 CRISIL A4 (Notice of
Withdrawal)
Proposed Long Term 11 CRISIL B+/Stable (Notice of
Bank Loan Facility Withdrawal)
Established in 2012, MAMPL metallises films for various types of
capacitors. It is located in Bengaluru (Karnataka).
MISTAIR HEALTH: CRISIL Assigns B+ Rating to INR55MM Term Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Mistair Health And Hygiene Private Limited
(MHHPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 55 CRISIL B+/Stable
Cash Credit 8 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 47 CRISIL B+/Stable
The rating reflects the company's modest scale of operations and
customer concentration in its revenue profile. These rating
weaknesses are partially offset by the extensive experience of the
promoters in contract manufacturing business.
Outlook: Stable
CRISIL believes MHHPL will continue to benefit over the medium
termfrom the extensive industry experience of the promoters. The
outlook maybe revised to 'Positive' in case of significant and
sustained increase in scale of operations and profitability while
maintaining its capital structure and working capital cycle. The
outlook maybe revised to 'Negative' in case of lower-than-expected
sales and profitability, or deterioration in MHHPL's financial
risk profile most likely on account of larger-than-expected
working capital requirements or debt-funded capital expenditure
programme.
MHHPL, incorporated in 1972, is promoted by Mr. Vinay Thakur and
Mr. Pramod Lele. The company is engaged in contract manufacturing
of health products for companies such as Cipla Ltd, Emcure
Pharmaceuticals Ltd, and Blue Cross Laboratories Ltd. MHHPL's
manufacturing facility is in Kolhapur (Maharashtra).
MORTEX COKE: Ind-ra Withdraws 'IND BB' Long-Term Issuer Rating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Mortex Coke
Industries' (Mortex) 'IND BB(suspended)' Long-Term Issuer Rating.
The agency has also withdrawn the 'IND BB(suspended)' rating on
Mortex's INR53.3m fund-based limits.
The ratings have been withdrawn due to lack of adequate
information. Ind-Ra will no longer provide ratings or analytical
coverage for Mortex.
Ind-Ra suspended Mortex's ratings on 16 February 2015.
MUTHULAXMI SPINNING: CRISIL Assigns B+ Rating to INR65MM Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Muthulaxmi Spinning Mills Pvt Ltd (MSMPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 65 CRISIL B+/Stable
Letter of Credit 20 CRISIL A4
The ratings reflect MSMPL's modest scale of operations in an
intensely competitive and highly fragmented textile industry, and
below-average financial risk profile because of modest net worth
and high gearing. These weaknesses are mitigated by the promoter's
extensive industry experience.
Outlook: Stable
CRISIL believes MSMPL would benefit over the medium term from the
promoter's extensive experience. The outlook may be revised to
'Positive' if sustainable increase in scale and profitability
improves the financial risk profile. Conversely, the outlook may
be revised to 'Negative' if accrual declines, a large, debt-funded
capital expenditure is undertaken or the working capital
management weakens leading to further weakening of the financial
risk profile.
Incorporated in 1996 by Mr. Shanmugavel, MSMPL manufactures cotton
yarn of 20s to 40s counts.
NAVAL EXPORTERS: CRISIL Assigns B- Rating to INR37.5MM Term Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to
the bank facilities of Naval Exporters and Importers Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 37.5 CRISIL B-/Stable
Proposed Cash
Credit Limit 30 CRISIL B-/Stable
Pre Shipment
Packing Credit 18.5 CRISIL B-/Stable
Post Shipment Credit 20 CRISIL A4
Cash Credit 20 CRISIL B-/Stable
Foreign Letter of
Credit 10 CRISIL B-/Stable
The ratings reflect NEIPL's limited track record of operations,
susceptibility to intense competition in the readymade
manufactured garments (RMG) industry, below-average financial risk
profile, and high inventory levels. These rating weaknesses are
partially offset by the company's comfortable operating margins,
funding support from promoters and growth prospects of NEIPL in
the RMG industry.
Outlook: Stable
CRISIL believes NEIPL will continue to benefit from its growth
prospects. The outlook may be revised to 'Positive' if the
company's revenue and profitability increase substantially leading
to an improvement in its financial risk profile, or in case of
significant infusion of capital by promoters, resulting in an
improved capital structure. Conversely, the outlook may be revised
to 'Negative' if NEIPL's capital structure weakens, or it reports
low operating profitability, or it is unable to cater to new
orders resulting in piling up of inventory.
Established in 2014, NEIPL is a Noida (Uttar Pradesh) based
company, engaged in the manufacturing and exporting readymade
garments (RMG) for men, women and children. The firm exports to
European, Asian and Middle-east markets. NEIPL has a manufacturing
capacity of 1.25 lakh pieces per month.
For 2014-15 (refers to financial year, April 1 to March 31), on a
provisional basis, NEIPL reported a loss of INR2.4 million on net
sales of INR107.8 million, as against a loss of INR3.5 million on
net sales of INR1.5 million for FY 2013-14.
OMKAR FERTILIZERS: ICRA Upgrades Rating on INR2.80cr Loan to B
--------------------------------------------------------------
ICRA has revised the long-term rating assigned to INR1.50 crore
cash credit limits, INR2.80 crore (revised from INR4.50 crore)
term loans of Omkar Fertilizers Private Limited to [ICRA]B from
[ICRA]B-. ICRA has also revised the long-term/short-term rating
assigned to INR5.70 crore (revised from INR4.00 crore) unallocated
limits of the company to [ICRA]B/[ICRA]A4 from [ICRA]B-/[ICRA]A4.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 1.50 [ICRA]B upgraded from
[ICRA]B-
Term Loan 2.80 [ICRA]B upgraded from
[ICRA]B-
Unallocated 5.70 [ICRA]B upgraded from
[ICRA]B-/[ICRA]A4 reaffirmed
The rating upgrade positively factors in the approval and grant of
license to OMFL for the manufacture of NPK fertilisers along with
soil conditioners leading to diversification of its product
portfolio. The ratings also draw comfort from the demand prospects
for fertilizer industry and the experience of the management in
the fertilizer industry.
The rating is however constrained by the relatively smaller scale
of operations of OFPL which limits its pricing flexibility. ICRA
also notes that the demand for soil conditioners and fertilizers
is vulnerable to agro climatic conditions and the regulatory risks
involved in the NPK fertilizer business which is dependent on the
subsidies received from the government. The ratings are further
constrained by the company's exposure to high customer with its
top customer accounting for ~75% of total sales for Q4-FY14 and
FY15 and high geographic concentration with the sales of the
company's products being restricted to Andhra Pradesh and
Telangana only.
Going forward, ability of the company to enhance its scale of
operations by ramping up sales of NPK fertilizers and maintain its
margins amidst limited pricing power will remain the key rating
sensitivities.
Omkar Fertilisers Private Limited was incorporated in the year
2010 to start a plant with a capacity of 30000 TPA for the
manufacturing of NPK Fertilizers. The total project cost was
INR8.50 crore which was funded by INR4.50 crore of debt and
INR4.00 crore of equity. The company started its commercial
production in the month of June, 2013. The company has its plant
in the west Godavari district of Andhra Pradesh. It is currently
involved in the manufacturing of Soil Conditioner and has recently
started manufacturing NPK fertilizers from September, 2015 as the
basic infrastructure required for the manufacture of both soil
conditioners and NPK fertilisers are the same.
Recent Result
According to audited FY2014 (9 months of operations) results, the
company recorded an operating income of INR4.25 crore with a net
profit of INR0.33 crore. As per audited FY2015 results, the
company has recorded an operating income of INR8.61 crore with a
net profit of INR0.38 crore.
PAREVARTAN EDUCARE: CRISIL Ups Rating on INR100MM Loan to B
-----------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facility of
Parevartan Educare Foundation (PEF) to 'CRISIL B/Stable' from
'CRISIL B-/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 100 CRISIL B/Stable (Upgraded
from 'CRISIL B-/Stable')
The upgrade is driven by CRISIL's belief that PEF's liquidity will
improve over the medium term because of increased occupancy and
incremental revenue following the addition of new classes; this is
expected to result in sufficient cash accrual to meet maturing
term loan repayments over the medium term.
The rating reflects PEF's small scale of operations, and exposure
to risks related to implementation of its ongoing primary school
project and to successful stabilisation of operations after
project completion. These rating weaknesses are partially offset
by the extensive experience of the promoters in the education
sector.
Outlook: Stable
CRISIL believes PEF will continue to benefit over the medium term
from its promoters' extensive experience in the education sector.
The outlook may be revised to 'Positive' in case of significant
expansion in scale of operations aided by timely implementation
and stabilisation of the proposed primary school, along with a
better surplus margin, resulting in higher-than-expected cash
accrual and thus in an improvement in the financial risk profile.
Conversely, the outlook may be revised to 'Negative' if the scale
of operations remains stagnant, and the financial risk profile,
particularly liquidity, deteriorates due to a time and cost
overrun in the project or large debt-funded capital expenditure
PEF, set up as an educational society in 2003, is based in
Ghaziabad (Uttar Pradesh). It runs a pre-school and a primary
school. The society is managed by Mr. V S Choudhary, along with
his wife and son.
PATWARI STEELS: ICRA Assigns 'C-' Rating to INR9.0cr Cash Loan
--------------------------------------------------------------
ICRA has assigned a long term rating of [ICRA]C to the INR1.35
crore corporate loan and INR9 crore cash credit facility of
Patwari Steels Private Limited. ICRA has also assigned a short
term rating of [ICRA]A4 to the INR2 crore bank guarantee facility
and INR1.35 crore standby line of credit facility of PSPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based-Corporate
Loan 1.35 [ICRA]C- assigned
Fund Based-Cash Credit 9.00 [ICRA]C- assigned
Fund Based-Stand by
line of Credit 1.35 [ICRA]A4 assigned
Non Fund Based Limit-
Bank Guarantee 2.00 [ICRA]A4 assigned
The assigned ratings take into account PSPL's weak financial risk
profile as reflected by nominal cash accruals, unfavourable
capital structure and depressed debt coverage indicators, the high
working capital intensity of business that adversely impacts the
liquidity situation as reflected by fully utilized working capital
limits and the highly competitive nature of the industry coupled
with low value additive nature of operations that keeps margins
for the entity under check. Moreover, ICRA notes that
profitability for the entity is largely supported by income from
trading activities. The ratings also takes note of the low
capacity utilization of the ingot manufacturing plant, which keeps
the return on capital employed at moderate levels and the exposure
of the entity to the cyclicality associated with the steel
industry, which is passing through a downturn at present. The
ratings also takes into consideration the experience of the
promoters for over three decades in the steel manufacturing
industry, PSPL's diversified product mix and the partially
integrated nature of operations with the presence of both ingot
and thermo-mechanically treated (TMT) bars manufacturing units.
Incorporated in 1981, PSPL is engaged in the manufacturing of MS
ingots and TMT bars with annual installed capacities of 16,000
metric tonnes and 33,000 metric tonnes. The manufacturing units
are located in Patna, Bihar.
Recent Results
In 2014-15, as per the provisional results, PSPL reported a profit
before tax of INR0.21 crore on an operating income (OI) of
INR60.58 crore as compared to a profit after tax (PAT) of INR0.10
crore on an OI of INR53.26 crore in 2013-14.
PAULOSE ABRAHAM: CRISIL Assigns B+ Rating to INR80MM Cash Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Paulose Abraham (PA). The ratings reflect
PA's modest scale of operations in the intensely competitive civil
construction segment, and its below-average financial risk
profile. These rating weaknesses are partially offset by the
extensive industry experience of the promoter.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Letter of Credit 2.5 CRISIL A4
Bank Guarantee 22.5 CRISIL A4
Cash Credit 80 CRISIL B+/Stable
Outlook: Stable
CRISIL believes that PA will continue to benefit over the medium
term from its promoter's industry experience. The outlook may be
revised to 'Positive' if the firm significantly scales up its
operations while maintaining its operating profitability, or
improves its working capital management, resulting in a better
financial risk profile. Conversely, the outlook may be revised to
'Negative' if PA's accruals decline or if its working capital
management weakens, leading to deterioration in its financial risk
profile, especially its liquidity.
PA is a Kolenchery (Ernakulam, Kerala) based civil contractor. The
firm primarily undertakes water projects (construction of wells
and providing pipelines to houses) for public works department
(PWD) in Kerala. The day to day operations of the firm are managed
by the promoter Mr. Paulose Abraham.
For 2014-15 (refers to financial year, April 1 to March 31),on a
provisional basis, PA reported a net profit of INR5.1 million on
gross bill receipts of INR202.07 million, against a net profit of
INR4.6 million on gross bill receipts of INR169.6 million for
2013-14.
RAMKUMAR TEXTILE: ICRA Reaffirms B+ Rating on INR11.50cr Loan
-------------------------------------------------------------
ICRA has reaffirmed its [ICRA]B+ rating on the INR11.50 crore
fund-based limits of Ramkumar Textile Private Limited (RTPL). ICRA
has also re-affirmed its [ICRA]A4 rating on the INR0.50 crore
short term non-fund based limits of RTPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based 11.50 [ICRA]B+; Reaffirmed
Non Fund Based 0.50 [ICRA]A4; Reaffirmed
ICRA's ratings continue to take into account RTPL's modest scale
of operations and the highly competitive and fragmented nature of
the fabric exports industry in which it operates, which limits the
pricing flexibility of the company and results in thin margins, as
also evident in its weak return indicators. Further, the company's
profitability remains exposed to adverse fluctuations in foreign
exchange rates, given the significant contribution of exports to
its overall revenues.
The ratings also take into account the company's high working
capital intensity due to high inventory days (NWC/OI of 64.2% in
FY15), with dependence on bank borrowings for funding the working
capital requirements. The company's thin margins coupled with high
debt levels have resulted in weak coverage indicators, with
OPBDITA/Interest of 0.70x and Total Debt/OPBDITA of 12.23x for
FY15. However, the ratings continue to draw comfort from the long
standing experience of the promoters in the fabric business and
the benefits it derives from its location in Bhilwara, Rajasthan
which provides easy access to raw material, skilled labor and
fabric processors. ICRA also takes note of the company's
established relationships with its customers and suppliers.
Going forward, the company's ability to improve its revenue
growth, achieve higher profitability and reduce its working
capital requirements; will be the key rating sensitivities.
RTPL, incorporated in 1996, is a Bhilwara based exporter of
synthetic fabrics. It is promoted by the Somani family, which has
been engaged in the synthetic fabrics business for more than a
decade. RTPL does not have its own manufacturing unit and
outsources production of fabric to weavers in Bhilwara on a job
work basis. RTPL sells suiting fabric for men and women in poly
viscose, poly wool, 100% wool, poly cotton, and lycra in various
weaves like plain, twill, and satin. The company also deals in
fabric for traditional Arabian clothing and spun polyester high
twist voile plain dyed and printed fabric.
Recent Results
In 2014-15, RTPL reported an operating income of INR25.49 crore
with a net profit of INR0.11 crore, as compared to an operating
income of INR25.62 crore with a net profit of INR0.11 crore in the
previous year.
RATHINAM ARUMUGAM: Ind-ra Affirms 'BB' Rating on INR163MM Loan
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Rathinam Arumugam
Research and Educational (RARE) Foundation's INR163m bank loans
(increased from INR126.1m) and INR20m fund-based-working capital
facilities at 'IND BB'. The Outlook is Stable.
KEY RATING DRIVERS
The trust's tight liquidity profile continues to constrain the
rating. At FYE15, available funds remained at the same level
nearly INR1.40m (FY14: INR0.95m). This had resulted in no
significant improvement in the liquidity ratios in FY15. Available
funds cover to total debt (INR182.40m) and operating expenditure
(INR58.73m) were 0.77% (FY14: 0.58%) and 2.38% (FY14: 2.15%),
respectively, in FY15. The trust's near-full use of its working
capital limits during the 12 months ended in September 2015 also
limits the rating.
RARE Foundation's high debt burden also constrains the rating of
the trust. Debt including rent/CBBIDR was 3.34x in FY15 (FY14:
3.55x) and debt in relation to the total income was 164.52%
(185.63%).
However, RARE Foundation's ability to maintain operating margins,
excluding rent, above 49% over FY13-FY15 supports the rating. The
margins fell 2.68 percentage points year-on-year to 49.24% in
FY15. This was on operating expenditure (FY15: up 34.65% yoy)
increasing more than operating income (27.53% yoy) in FY15. RARE
Foundation's revenue grew 26.55% yoy to INR110.87m in FY15 on the
back of increased students' strength in both engineering college
(23.86% yoy) and international school (15.14% yoy).
RARE Foundation's debt service coverage ratio increased marginally
to 1.34x in FY15 from 1.04x in FY14. This was on current balance
before interest, depreciation and rent (CBBIDR) increasing 20.02%
yoy to INR52.13m in FY15. Simultaneously, debt service obligations
declined 7.70% yoy to INR40.63m in FY15.
The foundation's ability to post the 21.59% yoy growth in
students' headcount in FY15 as against 59.42% yoy growth in FY14
also supports the rating. Also, the improvement in its acceptance
rate to 49.80% in FY15 from 66.41% in FY14 indicates the
increasing demand for the trust-run courses. However, capacity use
rate declined to 68.38% in FY15 from 76.62% in FY14.
Tuition fee is the primary funding source to RARE Foundation's
revenue. It constituted averagely 80.85% of the total revenue over
FY12-FY15. Other operating income arising from rent receipts
(FY15: 9.36% to total income) and hostel fees (9.21%) also provide
cushion to the financial profile of trust. The trust recorded a
net operating surplus of INR11.40m in FY15 as against INR11.72m in
FY14.
RATING SENSITIVITIES
Positive: A substantial increase in the revenue base along with an
improvement in leverage ratios and DSCR could lead to a positive
rating action.
Negative: Any unexpected fall in students' enrolments leading to a
decline in the operating profitability along with stress on the
liquidity and a quantum jump in the debt could lead to a negative
rating action.
COMPANY PROFILE
RARE was incorporated in January 2009 under the Section 25 of the
Companies Act, 1956 in Coimbatore. Madan A. Sendhil and Shima
Sendhil are the directors of RARE. The trust manages an
engineering college (student headcount for the academic year 2015-
2016: 1,286), a school (482 students) and a techno park with
58,739 sq.ft. area. According to management, the techno park is
fully occupied with two tenants. RARE operates an international
school through two campuses -- city campus (acts as a feeder) and
the campus near the engineering college.
SAHIB SYNTHETICS: ICRA Suspends B Rating on INR9.70cr Loan
----------------------------------------------------------
ICRA has suspended the [ICRA]B rating assigned to the INR9.70
crore, long term loans and working capital facilities of Sahib
Synthetics. The suspension follows ICRA's inability to carry out a
rating surveillance in the absence of the requisite information
from the company.
Established in 1998 by Mr. Paramjit Singh and Mr. Amarjit Singh,
Sahib Synthetics (SS) is engaged in manufacturing of knitted cloth
based home furnishings like blankets, warm bed sheets, curtains
etc. The firm has installed capacity of manufacturing 1 million KG
of knitted fabric, and its plant is based out of Ludhiana, Punjab,
wherein knitting, cutting, stitching, printing and dyeing
processes are undertaken.
SANJOSE SUPREME: Ind-ra Cuts INR7.9MM Loan Rating to 'IND D'
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Sanjose Supreme
Tollways Development Pvt Ltd's (SSTDPL) INR7,900m senior project
bank loans to Long-term 'IND D' from 'IND BB+'/Stable.
KEY RATING DRIVERS
The downgrade reflects SSTDPL's instances of reported delays in
servicing of interest due to tight liquidity during 2HFY16.
RATING SENSITIVITIES
Timely debt servicing for three consecutive months could result in
a positive rating action.
COMPANY PROFILE
SSTDPL is an SPV sponsored by Constructora San Jose S.A (50%),
Supreme Infrastructure India Ltd ('IND D'; 40%) and Sanjose India
Infrastructure & Construction Pvt Ltd (10%). SSTDPL has been
granted a 28-year build-operate-transfer concession by Jaipur
Development Authority to construct, operate and maintain a 47km
ring road connecting Ajmer Road in Jaipur to Agra Road in Uttar
Pradesh.
SHREE DURGA: CRISIL Assigns 'B' Rating to INR55MM Cash Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the bank
facilities of Shree Durga Parameshwari Motors Private Limited
(SDPMPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 11.4 CRISIL B/Stable
Cash Credit 55 CRISIL B/Stable
Long Term Loan 33.6 CRISIL B/Stable
The rating reflects SDPMPL's stretched liquidity with its cash
accruals expected to tightly match its term debt repayment
obligations, and its below-average financial risk profile marked
by its small net-worth, high total outside liabilities to tangible
net-worth (TOL/TNW) ratio, and average debt protection metrics.
The ratings of the company are also constrained on account of its
susceptibility to economic cyclicality, and its exposure to
intense competition in the automobile dealership industry. These
rating weaknesses of the company are partially offset by the
extensive entrepreneurial experience of its promoters, the
company's efficient working capital management, and its low
exposure to inventory and debtor risks.
Outlook: Stable
CRISIL believes that SDPMPL will continue to benefit over the
medium term from its promoters extensive entrepreneurial
experience. The outlook may be revised to 'Positive' if there is a
substantial and sustained increase in the company's profitability,
or there is a substantial improvement in its capital structure on
the back of sizeable equity infusion by its promoters. Conversely,
the outlook may be revised to 'Negative' in case of a steep
decline in the company's profitability margins, or significant
deterioration in its capital structure most likely by a large
debt-funded capital expenditure or a stretch in its working
capital cycle.
SDPMPL was set up in 2012 by Mr.Belman Purushottam Raghavendra Rao
and his family members. The company is an authorized dealer for
Honda Motorcycle and Scooter India Pvt Ltd's two-wheelers in
Hyderabad (Telangana).
SIDDHI VINAYAK: CRISIL Assigns B+ Rating to INR50MM Cash Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Siddhi Vinayak Roller Flour Mills Pvt Ltd
(Siddhi Vinayak).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 10 CRISIL B+/Stable
Cash Credit 50 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 20 CRISIL B+/Stable
The rating reflects Siddhi Vinayak's nascent stage of operations
leading to small scale of operations, and exposure to risks
related to stabilisation of its capacity utilisation at its flour
mill. The rating also factors in susceptibility to volatility in
raw material prices due to changes in government policies. These
weaknesses are partially offset by promoters' extensive industry
experience.
Outlook: Stable
CRISIL believes Siddhi Vinayak will continue to benefit over the
medium term from promoters' extensive experience in the wheat
processing industry. The outlook may be revised to 'Positive' in
case of timely stabilization of the installed capacity leading to
healthy revenue and profitability. Conversely, the outlook may be
revised to 'Negative' in case of delays in stabilisation of
project or lower-than-expected revenue or profitability resulting
in weakening financial risk profile.
Siddhi Vinayak based in Delhi and established in April 2014 by
Jain family, processes wheat to produce wheat flour, maida, suzi,
and bran etc. Its flour rolling mill is located in Delhi and has
installed grinding capacity of 150 tonnes per day. The company
started operations in April 2015.
SOMANI MOTORS: CRISIL Assigns B+ Rating to INR52.5MM e-DFS
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Somani Motors Pvt Ltd (SMPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 13 CRISIL B+/Stable
Cash Credit 7.5 CRISIL B+/Stable
Electronic Dealer
Financing Scheme
(e-DFS) 52.5 CRISIL B+/Stable
The rating reflects SMPL's below-average financial risk profile
because of modest net worth and high total outside liabilities to
tangible net worth ratio and exposure to intense competition in
the automobile dealership market. These weaknesses are mitigated
by its promoters' extensive experience and moderate working
capital requirement.
Outlook: Stable
CRISIL believes SMPL will benefit from its promoters' industry
experience. The outlook may be revised to 'Positive' if the
financial risk profile and liquidity improve backed by better cash
accrual. Conversely, the outlook may be revised to 'Negative' if
the financial risk profile weakens due to lower-than-expected cash
accrual, stretched working capital cycle and/or any, debt-funded
capital expenditure.
Incorporated in 2010, SMPL has a dealership of Hyundai Motors. It
is promoted by Mr. Sushil Somani, Mr. Subhash Somani and Mr.
Mahesh Somani. It is based in Baramati and also trades in mobiles.
SRI LAKSHMI: CRISIL Assigns 'B' Rating to INR45MM Cash Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Sri Lakshmi Mini Rice Mill (SLMRM).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long Term Loan 37.5 CRISIL B/Stable
Cash Credit 45 CRISIL B/Stable
Letter Of Guarantee 7.1 CRISIL A4
The ratings reflect SLMRM's weak financial risk profile marked by
high gearing and modest net worth. The ratings also reflect its
modest scale of operations in the highly fragmented rice-milling
industry. These rating weaknesses are partially offset by the
extensive industry experience of the firm's partners.
Outlook: Stable
CRISIL believes SLMRM will continue to benefit over the medium
term from the promoters extensive industry experience.. The
outlook may be revised to 'Positive' in case of substantial and
sustained increase in operating income and cash accrual along with
better working capital management or infusion of equity, leading
to significant improvement in the firm's financial risk profile,
particularly liquidity. Conversely, the outlook may be revised to
'Negative' in case of lower-than-expected accrual, a stretch in
the working capital cycle, or significant capital expenditure,
leading to deterioration in the financial risk profile.
SLMRM, a partnership firm, mills non-basmati parboiled rice from
paddy. Its manufacturing facility is in Bankura (West Bengal). Mr.
Nanigopal Dalui, Mr. Swapan Chandra Koner, Mr. Rajkumar Dalui, Mr.
Subir Kumar Dalui, and Ms. Padmarani Koner are the firm's
partners. Its operations are managed by Mr. Rajkumar Dalui.
STRONGWIRE INDUSTRIES: ICRA Puts B+ Rating on Withdrawal Notice
---------------------------------------------------------------
ICRA has placed the long-term rating of [ICRA]B+ assigned to the
INR8.30 crore fund-based facilities and the short-term rating of
[ICRA]A4 assigned to the INR2.00 crore fund based facility of
Strongwire Industries on notice of withdrawal for one month at the
request of the firm. As per ICRA's 'Policy on Withdrawal of Credit
Rating', the aforesaid ratings will be withdrawn after one month
from the date of this withdrawal notice.
Established in 1993 as a partnership firm, Strongwire Industries
(SWI) is engaged in the manufacture of Mild Steel (MS) Wire and
Copper Coated (CC) Wire which finds application in the welding
industry. The firm has its registered office at Kandivali and
production facilities in Tarapur (Maharashtra) and Bhilad
(Gujarat) with an installed capacity of 3000MTPA each. BHEL, JAS-
ANZ/ISO and DET NORSKE VERITAS AS certify the products.
SUMANGLAM WOOD: ICRA Reaffirms B- Rating on INR6.0cr Cash Loan
--------------------------------------------------------------
ICRA has reaffirmed its long term rating of [ICRA]B- on the
INR6.00 crore fund based limits of Sumanglam Wood Products (India)
Private Limited. ICRA has also reaffirmed its short-term rating of
[ICRA]A4 on the INR10.00 crore non-fund based facility of SWPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit
(LT scale) 6.00 [ICRA]B-; reaffirmed
Letter of credit
(ST scale) 10.00 [ICRA]A4; reaffirmed
ICRA rating reaffirmation takes into account the 26% year-on year
decline in SWPL's Operating Income (OI) in FY15, primarily due to
lower demand from the company's key end user industries, real
estate and construction. The ratings continue to take into account
the unorganized and highly competitive nature of the industry SWPL
operates in and the vulnerability of the company's profitability
to adverse foreign exchange fluctuations, in the absence of any
hedging mechanism. ICRA's ratings also factor in the working
capital intensive nature of SWPL's operations, and the company's
reliance on bank borrowings for funding the working capital
requirements. An increase in receivable days and inventory days in
FY15 has resulted in increased bank borrowings, resulting in
deterioration in gearing to 4.77x in FY15, from 3.63x a year ago.
The company's thin profitability has also resulted in weak
coverage indicators. The ratings however derive comfort from the
significant experience of the management in the timber industry
and the company's diverse client base consisting of large number
of clients from industries like real estate, packaging,
construction, etc.
Going forward the ability of the company to scale up its
operations while improving the profit margins and optimally
managing its working capital cycle so as to attain a sustained
improvement in its capital structure will be the key rating
sensitivities.
SWPL trades in lumber and chemicals like Ethyl Vinyl Accetate
(EVA), and manufactures packing boxes and pallets, with trading of
timber contributing to ~90% of its total revenues. SWPL primarily
imports timber from New Zealand and South Asian and African
countries.
Recent Results
For 2014-15, the company reported an Operating Income (OI) of
INR19.66 crore and a net profit of INR0.12 crore as against an OI
of INR26.60 crore and a net profit of INR0.21 crore in the
previous year. The company, on a provisional basis, achieved an OI
of INR14.65 crore for the seven months ended October 31, 2015.
SUNRISE INDUSTRIES: CRISIL Reaffirms B+ Rating on INR258.9MM Loan
-----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Sunrise Industries
India Ltd (Sunrise) continue to reflect Sunrise's modest scale of
operations, large working capital requirements, and average
financial risk profile marked by a high gearing and subdued debt
protection metrics. These rating weaknesses are partially offset
by the extensive experience of the company's promoters in the
composites industry, leading to established customer relationship.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 40 CRISIL A4 (Reaffirmed)
Cash Credit 100 CRISIL B+/Stable (Reaffirmed)
Packing Credit 50 CRISIL A4 (Reaffirmed)
Proposed Long Term
Bank Loan Facility 258.9 CRISIL B+/Stable (Reaffirmed)
Term Loan 97.5 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes Sunrise will continue to benefit over the medium
term from its promoters' industry experience and its established
customer relationship. The outlook may be revised to 'Positive' in
case of higher-than-expected sales along with improvement in cash
accrual and efficient working capital management. Conversely, the
outlook may be revised to 'Negative' in case of substantial debt-
funded capital expenditure, or weakening of liquidity, most likely
because of a sharp decline in profitability or an increase in
working capital requirement.
Update
In 2014-15 (refers to financial year, April 1 to March 31),
Sunrise's total income declined to INR219 million from INR429
million in the previous year on account of lesser orders. Its
operating margin, however, improved to 13.5 per cent from 11.3 per
cent over this period backed by lower raw material prices due to a
decline in the price of crude oil. Operations remained working
capital intensive with high gross current assets of 387 days as on
March 31, 2015. Hence, bank limit utilisation was high at an
average of about 90 per cent during the 12 months through
September 2015.
The company's financial risk profile remains average, with a
gearing of about 1.87 times against a net worth of INR116.6
million as on March 31, 2015, and modest debt protection metrics
with interest coverage ratio of 1.2 times for 2014-15.
Sunrise, incorporated in 1992, is promoted by Mr. Joy Kunjukutty
and his family; it is based in Vadodara (Gujarat). The company
manufactures fibre-reinforced plastic and glass-reinforced plastic
products, such as pipes and fittings, process equipment, reaction
vessels, storage tanks, pollution control equipment (including
scrubbers, separators, blowers, and stacks), absorbers, towers,
dryers, exhaust systems, floor gratings, and cable trays. Its
customer profile is geographically diversified across domestic and
global markets. It caters to multiple industries, including
chemical, rayon, staple fibre, oil and gas, petrochemical, paper-
pulp, power, and sewage treatment.
SURESH EXPORTS: ICRA Assigns 'B' Rating to INR4.0cr Cash Loan
-------------------------------------------------------------
ICRA has assigned a long term rating of [ICRA]B to the INR4.00
crore cash credit facility of Suresh Exports. ICRA has also
assigned a short term rating of [ICRA]A4 to the INR12.00 crore
short term fund based facility, INR3.00 short term non fund based
facility (sublimit of Cash Credit) and INR4.00 crore short term
non fund based facility of SE.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 4.00 [ICRA]B assigned
Packing Credit/
FDBP/FUDBP 12.00 [ICRA]A4 assigned
Non Fund Based
(sublimit of
Cash Credit) (3.00) [ICRA]A4 assigned
Non Fund Based 4.00 [ICRA]A4 assigned
Rating Rationale
The assigned ratings take into account the long track record and
extensive experience of partners in the chilli trading &
processing business; the firm's established relationship with its
clients and suppliers as evidenced by numerous repeat orders; and
favorable location of the firm's processing units in proximity to
major chilli growing regions of the country giving it easy access
to quality raw material. The ratings are however constrained by
SE's weak financial profile characterized by high gearing level,
weak debt coverage indicators and low profitability; and the
highly working capital intensive nature of operations due to high
inventory requirements & high receivables which has kept the
liquidity under stress. The ratings are further constrained by the
highly competitive and fragmented nature of the spice processing
industry, and vulnerability of the firm's profitability to
fluctuations in raw material prices which are subject to
seasonality, crop harvest and agro climatic conditions. ICRA also
notes that SE is a partnership concern and any significant
withdrawals from the capital account would impact the net worth
and thereby the capital structure.
Suresh Exports was incorporated in 1991 by the Nagpur based
Wadhwani family for undertaking processing of various spices,
mainly Chili. The product profile of the firm consists of chili
powder, Turmeric Powder, Coriander powder, cumin powder etc. It
has two processing units, one in Guntur (Andhra Pradesh) and the
other in Nagpur (Maharashtra) with a combined capacity of 8-10
MT/day.The Wadhwani family/group has been in the business of
chilly trading & spice processing since 1942. Apart from this, the
group also provides services such as chilli commission agent and
operates cold storage units specifically for storing chillies at
major chilli trading centres like Nagpur, Guntur and Warangal.
SWATHI COTGIN: CRISIL Assigns B+ Rating to INR198MM Cash Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facility Swathi Cotgin (Tmc) Private Limited (SCPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 198 CRISIL B+/Stable
Long Term Loan 132 CRISIL B+/Stable
The rating reflects SCPL's modest scale of operations, its weak
financial risk profile, marked by aggressive capital structure and
below-average debt protection metrics, and susceptibility to
volatility in cotton prices and adverse government regulations.
These rating weaknesses are partially offset by the longstanding
industry experience of SCPL's promoters and its established
customer relationships.
Outlook: Stable
CRISIL believes that SCPL will continue to benefit from its
promoters' long standing industry experience over the medium term.
The outlook may be revised to 'Positive' if the SCPL's capital
structure improves, most likely because of significant increase in
accruals or infusion of funds. Conversely, the rating may be
revised to 'Negative' if KGOI reports a lower-than-expected
operating margin, or undertakes a debt-funded capital expenditure
programme, resulting in deterioration of its financial risk
profile.
Incorporated in 2013 and based in Guntur (Andhra Pradesh), Swathi
Cotgin (Tmc) Private Limited (SCPL) is engaged in cotton ginning
and processing of cotton seed oil.
SCPL reported a profit after tax (PAT) of INR 5.70 million on net
sales of INR554 million for 2014-15, against a PAT of INR 2.50
million on net sales of INR 432 million for 2013-14.
TATA STEEL: Moody's Affirms Ba1 CFR & Changes Outlook to Negative
-----------------------------------------------------------------
Moody's Investors Service has affirmed Tata Steel Limited's Ba1
corporate family rating and changed the rating outlook to negative
from stable.
Moody's has also affirmed Tata Steel UK Holdings Limited's (TSUKH)
CFR and probability of default rating at B2/B2-PD, and changed the
ratings outlook to stable from positive.
RATINGS RATIONALE
The rating actions reflect the persistent weakness in global steel
prices -- led by China's economic slowdown -- and the resulting
negative impact on the credit profiles of Tata Steel and TSUKH.
Tata Steel's results for the first half of the fiscal year ending
March 2016 (H1 FY2016) were weak, with reported consolidated
revenue of INR596.1 billion and consolidated underlying EBITDA of
INR47.8 billion, down 17% and 43% respectively from a year ago.
Tata Steel's India (TSI) business revenues and underlying EBITDA
were down 12% and 43% respectively, at INR186 billion and
INR36.8 billion over the same period.
Tata Steel's European operations reported revenue and underlying
EBITDA of INR348 billion and INR4.4 billion, down 15% and 77%
respectively for H1 FY2016 versus H1 FY2015.
"Our rating actions are premised on a near-term increase in global
demand for steel being unlikely, and as such, a material recovery
in steel prices remains a low probability," says Kaustubh Chaubal,
a Moody's Vice President and Senior Analyst.
India's steel imports were up 42% by volume in H1 FY2016 from the
same period last year. As a result, Indian hot rolled coil prices
(HRC) fell 37%, leading to TSI's realizations/tonne falling about
18% to INR40,853.
TSI's year-on-year EBITDA/tonne fell more sharply by 43% to
INR8,418. Moody's expects the Government of India's (Baa3
positive) imposition of a 20% safeguard duty -- effective from 14
September 2015 and levied for a period of 200 days -- on certain
categories of HRC imports to have a modest impact on prices for
the rest of FY2016.
Steel prices in Europe have also fallen sharply, due to persistent
overcapacity in Europe, and high levels of cheaper imports,
particularly from China; Tata Steel's European operations reported
a 77% drop in its EBITDA/tonne at INR649 for H1 FY2016,
predominantly because of an EBITDA loss in Q2 FY2016.
"Moody's rating actions result from the weakening in Tata Steel's
and TSUKH's operating performance and debt protection metrics, and
our expectation that a continued contraction in earnings will be
evidenced, given the challenging conditions facing the global
steel industry, and in particular, Tata Steel's key markets of
India and Europe," adds Chaubal, who is also the Lead Analyst for
Tata Steel and TSUKH.
Also, while TSI's backward integrated operations continue to help
in sourcing 100% of its iron ore and 40% of its coking coal
requirements, the benefit is somewhat diminished, because of low
raw material prices and the increasing cost of mining in India,
due to contributions to the District Mineral Foundation that have
increased mining costs.
As such, TSI's EBITDA/tonne will not be restored to 2014 levels of
INR14,500-INR15,000. Instead, Moody's expects it to increase by
INR500-INR800/tonne for the remainder of FY2016, and to rise
gradually by 1%-3% in FY2017.
With industry high profitability, TSI currently accounts for close
to 80% of Tata Steel's consolidated EBITDA, although forming only
a third of overall shipments. Moody's expects TSI's contribution
to consolidated EBITDA to rise even further with the 3 mtpa
Kalinganagar operations from Q4 FY2016; leading to growth in
consolidated earnings in FY2017, and some moderation in
consolidated leverage.
On leverage, Moody's estimates consolidated reported leverage as
indicated by debt/EBITDA of around 8.0x at end-September 2015,
negatively affected by weak EBITDA in the last three quarters.
With little respite on steel prices globally, Moody's expects Tata
Steel's consolidated gross leverage to remain in the 6.5x -- 7.0x
range at end-FY2016 compared with 5.0x for end-FY2015.
Moody's notes that Tata Steel's management has taken several
financially prudent steps in adding liquidity to the balance sheet
by selling stakes in its group companies, while limiting any
increase in debt. Moreover, Tata Sons' participation in acquiring
the Tata group holdings was a demonstration of the financial
support already reflected in the one-notch rating uplift on Tata
Steel ratings.
Moody's favorably views TSUKH's continuing restructuring measures,
focused capex initiatives as well as the large reduction in the
residual pension deficit, limiting the burden on TSUKH's already
weak balance sheet. The actuarial valuation that concluded in
Oct. 2015 confirmed the pension deficit at GBP90 million at March
2014, six times lower than GBP550 million in March 2011, Moreover,
the group-wide refinancing undertaken in July 2014 has eliminated
refinancing risk for TSUKH until 2019.
However, overcapacity in Europe, a weak price environment and
cheap imports will continue to pressure profitability and keep
leverage at elevated levels. Furthermore, with TSUKH's inability
so far in finding a buyer for the long products business, there is
limited upward rating bias. Moody's has therefore revised TSUKH's
ratings outlook to stable from positive.
Negative ratings pressure on TSUKH is unlikely over the near term
given the support it receives from Tata Steel, reflected in the
two notches of uplift incorporated into its B2 rating. However a
further deterioration in market conditions in Europe or TSUKH's
inability to return its EBITDA to positive over the next six
months could result in a ratings downgrade. Any revision in
Moody's support assumptions from Tata Steel could also lead to a
downgrade.
There is limited upward pressure to TSUKH's ratings, given the
stabilization of the outlook. Moreover, sale of the long products
business and erasing the negative EBITDA impact of its UK
facilities on TSUKH's credit metrics would be critical for us to
consider any positive rating action. Credit metrics that would
support such an action include debt/EBITDA trending back towards
7.0x and EBIT/interest greater than 1.0x on a sustained basis.
The negative outlook on Tata Steel's CFR reflects the rising
pressure on leverage because of weak steel prices. While measures
to conserve cash may be taken, the decline in EBITDA is likely to
outpace any reduction in debt levels.
Moody's could downgrade Tata Steel's CFR if: (1) its profitability
remains weak, with consolidated EBIT margins below 6%-8% on a
sustained basis because of a lack of improvement in EBITDA/tonne;
(2) its ability to generate operating cash flows deteriorates
because of weak sales and unfavorable market dynamics; or (3) its
financial metrics fail to improve over the next six months.
Financial indicators Moody's would consider for a downgrade
include debt/EBITDA remaining above 6.0x, or EBIT/interest
coverage remaining below 2.0x on a sustained basis.
An upgrade of Tata Steel's CFR in the near term is unlikely, given
its weak position in its rating category. The industry's
challenging conditions preclude a material improvement in its
credit metrics over the next 12-18 months.
Moody's could change the outlook on Tata Steel's CFR to stable if:
(1) domestic steel prices recover or, on the back of an increase
in steel volumes, Tata Steel shows a substantial improvement in
profitability, with consolidated EBITDA/tonne in the INR6,500 --
INR7,000 range; or (2) the company is successful in preserving
cash flow during the current downturn by cutting capex, such that
its free cash flows turn positive.
Adjusted leverage at 4.0x would also constitute a leading
indicator for a change in the outlook for Tata Steel's CFR.
The principal methodology used in these ratings was the Global
Steel Industry published in October 2012.
Tata Steel Limited is an integrated steel company headquartered in
Mumbai. It acquired the operations of Corus plc -- now known as
Tata Steel UK Holdings Limited -- in January 2007.
In FY2015, Tata Steel's business spanned across 24 countries. It
is one of the leading steel makers globally, with crude steel
production of 26.85 million tonnes in FY2015.
Jamshedpur, its sole crude steelmaking operation in India, it
produced some 9.07 mtpa in FY2015, and the company is adding 3
mtpa at its greenfield expansion in Odisha. Production at its
European operations totaled 15.17 mtpa in FY2015, and its
Southeast Asian operations produced 2.61 mtpa.
TIMESPAC INDIA: CRISIL Assigns B Rating to INR78.8MM Cash Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISILA4' ratings to the
bank facilities of Timespac India Ltd (TIL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Standby Line of
Credit 56.7 CRISIL B/Stable
Proposed Long Term
Bank Loan Facility 42 CRISIL B/Stable
Bank Guarantee 2.5 CRISIL A4
Cash Credit 78.8 CRISIL B/Stable
The ratings reflect TIL's small scale of operations, large working
capital requirement, and susceptibility of its profitability to
volatility in raw material prices. These weaknesses are mitigated
by the promoter's extensive experience in the packaging industry,
and established customer relationships.
Outlook: Stable
CRISIL believes TIL will maintain its business risk profile over
the medium term, backed by its promoter's long-standing industry
experience and its relationship with customers and suppliers. The
outlook may be revised to 'Positive' if scale of operations
increases significantly while maintaining margins or debt reliance
reduces due to improved working capital management. Conversely,
the outlook may be revised to 'Negative' if the financial risk
profile weakens due to larger-than-expected debt-funded capital
expenditure or low margins.
TIL manufactures polypropylene/high-density polyethylene bags for
cement companies and commenced operation from 2000. The company
has installed capacity of 2,700 tonnes per annum and the
facilities are located in Bankura (West Bengal). The company is
promoted by Mr. Trilok Agarwal, who has various other companies
manufacturing bulk packaging materials and ferroalloy. He has been
in this business for the last two decades.
UNITED TRADE: CRISIL Assigns B+ Rating to INR40MM Cash Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of United Trade and Investments (UTI).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 40 CRISIL B+/Stable
Inland/Import
Letter of Credit 25 CRISIL A4
The ratings reflect UTI's modest scale of operations,
susceptibility to volatility in raw material prices and foreign
exchange rates, and large working capital requirements. These
rating weaknesses are partially offset by the extensive experience
of UTAI's promoters in the timber trading industry and moderate
financial risk profile marked by low total outside liabilities to
tangible net worth ratio.
Outlook: Stable
CRISIL believes UTI will continue to benefit over the medium term
from the promoters' industry experience. The outlook may be
revised to 'Positive' in case of significant improvement in scale
of operations and profitability, and efficient working capital
management resulting in substantial cash accrual. Conversely, the
outlook may be revised to 'Negative' in case of deterioration in
the financial risk profile, particularly liquidity, most likely
affected by low cash accrual or large working capital
requirements.
Established as a partnership in 2011, UTI trades in timber. The
firm, based in Mumbai, is promoted by Mr. Sameer Chhapra, Mr.
Khalid Chhapra and Mrs. Razia Chhapra.
YATHARTH HOSPITALS: ICRA Ups Rating on INR37.50cr Term Loan to B+
-----------------------------------------------------------------
ICRA has upgraded its long-term rating on the INR41.20 crore fund
based limits of Yatharth Hospitals & Trauma Care Services Private
Limited to [ICRA]B+ from [ICRA]D.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 37.50 [ICRA] B+; Upgraded
Cash Credit 1.50 [ICRA] B+; Upgraded
Unallocated 2.20 [ICRA] B+; Upgraded
ICRA's rating revision takes into account the recent
regularisation in debt servicing by YHPL, aided by moderation in
its working capital intensity. Further, ICRA's rating factors in
the improvement in operational performance of the company's new
hospital located in Noida (Uttar Pradesh), driven by increase in
occupancy levels and revenue per occupied bed (RevPob). The rating
also favourably factors in the extensive experience of the
promoters in the healthcare industry.
The rating is, however, constrained on account of the company's
stressed financial profile with a leveraged capital structure and
stretched liquidity position, as reflected by its current ratio of
0.95 x as on March 31, 2015. The occupancy level of the newly
built hospital in Noida is ~55% and any further increase in the
company's scale of operations will increase the requirement of
working capital and could lead to some stress on the liquidity.
The rating is also constrained on account of intense competition
from the hospitals in its proximity. Although the current team of
doctors has been associated with YHPL for a long time, attracting
and retaining reputed doctors in view of heightened competition,
remains a challenge.
Going forward, the ability of the company to efficiently manage
its working capital cycle and attain a sustained improvement in
its liquidity and operating metrics will be the key rating
sensitivities. Any large debt funded capex will be critical and
will also be a monitorable.
YHIPL was formed in 2008 as a private limited hospital by Dr Ajay
Tyagi, Dr Kapil Tyagi, Dr Neena Tyagi and Dr Manju Tyagi. It has a
150 bed hospital in Greater Noida (Uttar Pradesh) and another 340
bed hospital in Noida. The Greater Noida hospital is well reputed
in its catchment area, as reflected by its growing occupancy
levels, which stood at ~75% in 6M'FY16. The company's super
specialty hospital commenced operations in Noida in January 2014
and was able to achieve ~55% occupancy levels in 6M'FY16. The
hospitals currently specialize in services such as Obstetrics and
Gynaecology, General Medicine, Paediatrics and Neonatology,
General Surgery, ENT, Microbiology and Pulmonology.
* INDIA: Panel Proposes 180-Day Cap for Settling Bankruptcy Cases
-----------------------------------------------------------------
Hindustan Times reports that India will soon have a modern law to
deal with sick companies, which become insolvent due to genuine
reasons. The report says the move, first announced by finance
minister Arun Jaitley in Budget 2014, is aimed at modernising the
country's archaic bankruptcy rules, and will enable easier exit
for companies that have failed because of various reasons,
including unforeseen developments such as a global financial
crisis.
On Nov. 4, a government panel released the first draft of a
proposed bankruptcy law modelled on the USA's tested Chapter 11
bankruptcy code, which handholds insolvent companies and aids
banks that would have lent to such companies, Hindustan Times
relates.
According to Hindustan Times, the Bankruptcy Law Committee, headed
by former law secretary TK Vishwnathan, proposes a 180-day
timeline for dealing with applications for resolving insolvency,
besides early identification of financial stress in companies
which could help in their revival. The new norms would allow easy
exits for companies while protecting the rights and interest of
lenders, the report says.
The panel said if the proposals are implemented, it will increase
GDP growth by fostering the emergence of a modern credit market,
the report states. More credit will be available to new firms,
including those which lack tangible capital.
A draft bill, prepared by the committee, has consolidated the
existing laws relating to insolvency of companies, limited
liability entities, unlimited liability partnerships and
individuals into a single legislation, says Hindustan Times.
"My endeavour would be try and introduce it (the bill on
bankruptcy law) in the next session of Parliament," the report
quotes Jaitley as saying.
The finance ministry has put up the reports on its website for
public comments, Hindustan Times notes.
"The reforms will significantly reduce the time taken for
insolvency proceedings in India, which at present, on an average
basis is estimated at about 4.3 years against only 1.7 years in
high-income OECD countries," said Chandrajit Banerjee, director-
general, CII, Hindustan Times relays.
The report has also suggested that an insolvency resolution plan
prepared by a resolution professional has to be approved by 75% of
financial creditors, the report adds.
=================
I N D O N E S I A
=================
GOLDEN AGRI-RESOURCES: Moody's Withdraws Ba3 Corp. Family Rating
----------------------------------------------------------------
Moody's Investors Service has withdrawn the Ba3 corporate family
rating of Golden Agri-Resources Ltd. The rating outlook was
negative at the time of its withdrawal.
RATINGS RATIONALE
Moody's has withdrawn the rating for its own business reasons.
Golden Agri, registered in Mauritius, is the largest listed oil
palm plantation company in Indonesia. Listed on the Singapore
Stock Exchange in 1999, it mainly operates in Indonesia and China
and is 50.35% owned by the Widjaja family.
=========
J A P A N
=========
TOSHIBA CORP: Investigation Panel Releases Full Report on Scandal
-----------------------------------------------------------------
Jiji Press reports that an independent panel investigating
bookkeeping irregularities at Toshiba Corp., which has concluded
that five former executives were negligent in their accounting
duties, has released its full report to the public.
The full text was released to the public Nov. 9 after it was
handed over to Toshiba on Saturday, Nov. 8, Jiji Press says.
According to the report, the panel, consisting of three lawyers,
concluded it would be reasonable to pursue legal proceedings
against the five, who include three former presidents.
Immediately after receiving the report, Toshiba filed a lawsuit
against the former executives on Nov. 8 in the Tokyo District
Court, demanding compensation totaling JPY300 million from the
five former executives, according to Jiji Press.
The three former presidents are Hisao Tanaka, Norio Sasaki and
Atsutoshi Nishida, the report discloses.
Jiji Press notes that The panel's investigation targeted 98 people
who served as board members or executive officers between April
2008 and December 2014, during which Toshiba padded its group
pretax profits by as much as JPY224.8 billion.
The report said 93 of them, including current President Masashi
Muromachi, have no responsibility to pay damages to the company
over the accounting scandal, the report relays.
In September, an individual shareholder urged the company to file
a JPY1 billion damages suit against 28 of its current and former
directors over the scandal. The plaintiff threatened to sue the
executives on behalf of shareholders if the company failed to meet
the request within 60 days, Jiji Press reports.
About Toshiba Corp.
The Troubled Company Reporter-Asia Pacific, citing Reuters,
reported on July 22, 2015, that an independent investigation said
in a report on July 21 that Toshiba Corp. overstated its operating
profit by JPY151.8 billion ($1.22 billion) over several years in
accounting irregularities involving top management.
The investigating committee said in a report filed by Toshiba to
the Tokyo Stock Exchange that Toshiba President and Chief
Executive Hisao Tanaka and his predecessor, Vice Chairman Norio
Sasaki, were aware of the overstatement of profits and delay in
reporting losses in a corporate culture that "avoided going
against superiors' wishes," according to Reuters.
The TCR-AP, citing Bloomberg News, reported on July 22, 2015, that
Toshiba Corp. President Hisao Tanaka and two other executives quit
to take responsibility for a $1.2 billion accounting scandal that
caused the maker of nuclear reactors and household appliances to
restate earnings for more than six years.
Norio Sasaki, the vice chairman, and Atsutoshi Nishida, a former
president who was serving as adviser, also resigned, the Tokyo-
based company said July 21, more than two months after announcing
it was investigating possible accounting irregularities, according
to Bloomberg.
On Sept. 11, 2015, the TCR-AP reported that Moody's Japan K.K.
affirmed Toshiba Corporation's Baa2 issuer and senior unsecured
debt ratings as well as its Ba1 subordinated debt rating and P-2
commercial paper rating. The ratings outlook is stable.
The ratings affirmation follows Toshiba's announcement of its
results for the fiscal year ended March 31, 2015 (FYE3/2015) and
the restatement on September 7 of its results for FYE3/2009
through 3Q FYE3/2015.
Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/-- is
a Japan-based manufacturer involved in five business segments.
The Digital Products segment offers cellular phones, hard disc
devices, optical disc devices, liquid crystal televisions, camera
systems, digital versatile disc (DVD) players and recorders,
personal computers (PCs) and business phones, among others. The
Electronic Device segment provides general logic integrated
circuits (ICs), optical semiconductors, power devices, large-scale
integrated (LSI) circuits for image information systems and liquid
crystal displays (LCDs), among others. The Social Infrastructure
segment offers various generators, power distribution systems,
water and sewer systems, transportation systems and station
automation systems, among others. The Home Appliance segment
offers refrigerators, drying machines, washing machines, cooking
utensils, cleaners and lighting equipment. The Others segment
leases and sells real estate.
TOYO TIRE: Posts JPY4.3BB Loss in 9Mos. Ended Sept. Amid Scandal
----------------------------------------------------------------
Kyodo News reports that Toyo Tire & Rubber Co. fell into the red
with a group net loss of JPY4.3 billion for the January-September
period of fiscal 2015 as a data falsification scandal involving
its products forced it to book a massive special loss.
According to Kyodo, Toyo reported an operating profit of JPY47.6
billion, up 40 percent from the previous year, benefiting mainly
from lower materials costs, on sales of JPY300.9 billion, up 4.8
percent.
On a net basis, the Osaka-based company suffered from a special
loss of JPY39.5 billion, including costs to replace its
substandard quake-absorbing devices, Kyodo discloses. It also
recorded JPY4.2 billion as settlement money for a price cartel in
the United States.
For the full year through Dec. 31, Toyo Tire expects a group net
profit of JPY5 billion, revised down from the previous forecast in
August of JPY12 billion, on sales of JPY410 billion, down from
JPY415 billion. Its operating profit is projected to reach JPY59
billion, up from JPY55 billion, according to Kyodo.
Kyodo notes that a spate of revelations that the company had
falsified data on shock absorbing devices used in hospitals,
schools and other buildings across the country have hurt public
confidence.
In October, the company said it had falsified data or skipped
required tests on some of its vibration-absorbing products used
mainly in trains and ships. The potential impact of the new
revelation was not reflected in the earnings report, Kyodo states.
Toyo Tire is scheduled to hold an extraordinary shareholders'
meeting Nov. 12 to seek approval for a revamped management team in
a bid to win back public trust, says Kyodo.
Toyo Tire & Rubber Co., Ltd. is a Japan-based company mainly
engaged in the tire business. The Company operates in three
business segments. The Tire segment manufactures and sells various
tires, as well as tubes for tires, flaps, camel backs, aluminum
wheels and other related products. The Diver Tec segment is
engaged in the manufacture and sale of industrial and construction
materials, transportation equipment, heating insulating and
waterproof materials, as well as other materials, such as office
equipment components. The Others segment is involved in the
financing, credit purchase and real estate businesses.
====================
N E W Z E A L A N D
====================
HERITAGE CANTERBURY: Placed Into Liquidation
--------------------------------------------
Cliff Sanderson at Dissolve.com.au reports that Heritage
Canterbury Limited, the company that holds the franchise of GJ
Gardner Homes Mid and South Canterbury, has been put into
liquidation. Rodgers Reidy has been appointed liquidator of the
company, the report says.
Dissolve.com.au relates that the Mid and South Canterbury
franchises were taken over by new operators John and Tobie Hartley
in August 2014.
=================
S I N G A P O R E
=================
STATS CHIPPAC: Fitch Publishes 'BB-' Issuer Default Ratings
-----------------------------------------------------------
Fitch Ratings has published Singapore-based semiconductor assembly
and test company STATS ChipPAC Ltd.'s (STATS) Long-Term Foreign-
and Local-Currency Issuer Default Ratings (IDR) at 'BB-'. The
Outlook is Stable.
Fitch has also assigned an expected rating of 'BB(EXP)' to STATS's
proposed senior secured bond. The proposed bond is guaranteed by
all the key operating companies, except those in China and
Thailand. The final rating of the proposed notes is contingent
upon the receipt of documents conforming to information already
received.
KEY RATING DRIVERS
Strong Linkages with Parent: On 5 August 2015, the Jiangsu
Changjiang Electronics Technology Co. Ltd. (JCET)-led consortium's
offer to acquire 100% of STATS for an equity value of USD780m
became unconditional. STATS's ratings are based on the
consolidated credit profile of JCET, its new parent, given strong
financial, operating and strategic linkages between the two
entities. STATS will account for about 60% of JCET's pro-forma
2015 revenue and EBITDA respectively.
Linkages to Strengthen: After the acquisition, Fitch believes JCET
will act as controlling shareholder and Semiconductor
Manufacturing Investment Corp. (SMIC) and China Integrated Circuit
Industry Investment Fund Co., Ltd. (IC fund) - the other
consortium members - are likely to act as junior partners. In
time, JCET's control over STATS could be strengthened as the IC
fund and SMIC have put options to exit for cash or swap for JCET
equity.
STATS is also important to JCET's capital structure and will
account for 60% of JCET's total 2015 debt. JCET is also the
guarantor for a USD120m loan arranged by Bank of China to JCET-SC
(Singapore) Pte. Ltd., the immediate holding entity of STATS.
Temasek, previously a shareholder of STATS, also has the right to
sell USD200m of perpetual securities to JCET after three years.
Proposed Bond Rated Higher: The bonds are rated one notch higher
than the IDR, reflecting the recovery benefits of the security
package, which covers principally all of STATS's group assets
outside China and Thailand. About 70% of STATS's group revenues
are generated by the subsidiaries providing security. The
guarantors on the bond generate about 75% of the group's revenue
and EBITDA.
Combined Group Stronger: The combined entity will benefit from an
improved market position as the fourth-largest player with a 10%
revenue share in the fragmented USD25bn Integrated Circuit (IC)
outsourced assembly and testing (OSAT) industry. It will also
benefit from advanced IC packaging capability, established
relationships with US- and Europe-based customers and growing
demand from China.
Profitability Depends on Utilisation: We forecast the combined
entity's 2015 pro-forma revenue at around USD2.5bn with an
operating EBITDAR margin of 20%-21%, as capacity utilisation and
cost savings could increase to offset the one-time restructuring
costs. Utilisation could improve due to greater exposure to
growing Chinese semiconductor demand backed by STATS's advanced
technological capabilities. Cost, capex and revenue synergies will
be realised from elimination of duplication in marketing and R&D
costs and relocation of STATS's Shanghai facility closer to JCET's
Chinese facilities.
Higher Leverage than Peers: The ratings are constrained by the
JCET group's relatively high 2015 forecasted FFO-adjusted leverage
of around 3.8x - 4.0x - higher than average of 2.0x for its top-
four peers in the OSAT industry. The market leader - Advanced
Semiconductor Engineering Inc's (ASE, BBB/Stable) 2015 FFO-
adjusted leverage is around 2.0x.
Fragmented Back-end Industry: Fitch believes that a market leader
in the OSAT sector can be rated at 'BBB' at best, because OSAT
companies lack pricing power due to the fragmented industry and
they have relatively low bargaining power due to customer
concentration and low switching costs. OSAT is a relatively small
segment of the USD350bn semiconductor industry; about half of the
industry's assembly and testing services are carried out in-house
by foundries and integrated device manufacturers.
Adequate Liquidity: STATS had USD262m in cash and equivalents and
banking facilities of USD113m at end-September 2015. It also has a
committed undrawn bridge loan of USD352m (out of total of
USD890m). It issued a USD200m of perpetual securities in August
2015 to refinance its short-term debt maturities, other than
bonds, of USD207m.
The company's proposed secured bond will be used partly to
refinance its drawn bridge loan of USD538m and unpaid existing
unsecured bonds of USD116m. The bridge loan was used to pre-pay a
part of (USD695m) of its two existing senior unsecured bonds -
USD200m due in 2016 and USD611m due in 2018. The two bonds will
need to be repaid in full as the acquisition has triggered a
change of control clause.
KEY ASSUMPTIONS
Fitch's key assumptions within our rating case for the issuer
include:
-- The combined entity's revenue to rise by mid-single-digit
percentage, benefitting from higher capacity utilisation.
-- Operating EBITDAR margin of 20%-21%.
-- Capex/revenue of around 16%.
-- 2015 total debt of the combined entity around USD2.2bn
-- including USD200m of lease-adjusted debt.
RATING SENSITIVITIES
Negative Rating Guidelines: Future developments that may,
individually or collectively, lead to negative rating action
include:
-- JCET consolidated FFO-adjusted leverage of over 4.0x
(estimated 2015: 3.8x - 4.0x) on a sustained basis.
-- Larger-than-expected restructuring/integration costs post-
acquisition and/or evidence that the acquisition is having an
adverse impact on STATS's customer relationships.
Positive Rating Guidelines: Future developments that may,
individually or collectively, lead to positive rating action
include:
-- An improvement in JCET consolidated FFO-adjusted leverage to
below 3.0x.
-- Sustained positive FCF margin.
====================
S O U T H K O R E A
====================
DAEWOO SHIPBUILDING: Creditors Set to Pump KRW4.2 Trillion
----------------------------------------------------------
Yonhap News Agency reports that creditors of a loss-making
shipbuilder are set to provide KRW4.2 trillion (US$3.63 billion)
in financial aid to the financially shaky firm in their latest bid
to salvage it, industry sources said Nov. 10.
According to Yonhap, sources said the creditors, led by state-run
Korea Development Bank (KDB), and Daewoo Shipbuilding & Marine
Engineering Co. signed a memorandum of understanding on Nov. 9 to
push ahead with large-scale restructuring and financial
assistance.
Yonhap says Daewoo Shipbuilding has suffered a more than KRW4
trillion loss in the first three quarters, largely due to a delay
in the construction of offshore facilities and a series of order
cancellations.
The report relates that the creditors will provide a fresh loan of
KRW3.2 trillion to Daewoo Shipbuilding. KDB also chipped in
KRW1 trillion to buy newly sold Daewoo Shipbuilding stocks.
With its loss ballooning, the creditors have been working on a
rescue plan for the shipbuilder. In return, the shipyard's labor
union agreed not to seek pay hikes or go on strike in return for
the massive rescue plan, says Yonhap.
Local shipyards are struggling with increased costs stemming from
delays in the construction of offshore plants and an industry-wide
slump, the report adds.
Headquartered in Seoul, South Korea, Daewoo Shipbuilding &
Marine Engineering Co. -- http://www.dsme.co.kr/-- is engaged in
building ships and offshore structures. Its product portfolio
includes commercial ships, such as liquefied natural gas (LNG)
carriers, oil tankers, containerships, liquefied petroleum gas
(LPG) carriers, pure car carriers; offshore structures, such as
FPSO vessels, drilling rigs, drillships and fixed platforms, and
naval vessels, including submarines, destroyers, rescue ships and
patrol boats.
*********
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
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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 ***