/raid1/www/Hosts/bankrupt/TCRAP_Public/160209.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Tuesday, February 9, 2016, Vol. 19, No. 27
Headlines
A U S T R A L I A
AIMIA: ADMA Buys Group Out of Administration
COBBLEDICK BROS: First Creditors' Meeting Set For Feb. 17
HOLLYWOOD SHOWGIRLS: Landlord Locks Venue Over Unpaid Rent
REVOLUTION BRANDS: 20 Jeep Clothing Stores Under Administration
TRIM BUILDING: Housing Firm Enters Liquidation
C H I N A
CHINA BAK: Appoints Simon Xue as Director
KU6 MEDIA: Committee Retains Legal Counsel and Financial Advisor
ZOOMLION HEAVY: Fitch Lowers IDR to 'B+' & Puts on Watch Neg.
* CNY Pressures Could Bring Tighter Capital Controls, Fitch Says
H O N G K O N G
NOBLE GROUP: Bank Debt Prices Signal Concern on Investors
I N D I A
AMBICA CHEMICALS: Ind-Ra Assigns 'B' Long-Term Issuer Rating
BANSAL EXTRACTION: CARE Reaffirms 'B+' Rating on INR21.88cr Loan
BATRA RICE: CRISIL Reaffirms 'B+' Rating on INR300MM Cash Loan
BOLTON PETFORMS: CRISIL Assigns 'B' Rating to INR54MM Cash Loan
CHAITANYA ENTERPRISES: CRISIL Reaffirms B+ Rating on INR45MM Loan
CHOICE BOARDS: CRISIL Reaffirms B+ Rating on INR57.5MM Loan
COSMOS INFRA: CRISIL Suspends B Rating on INR270MM Term Loan
CPR CAPITAL: CRISIL Lowers Rating on INR65MM Loan to 'C'
CREATIVE YARN: CRISIL Reaffirms 'B' Rating on INR70MM Cash Loan
DASVE HOSPITALITY: CARE Reaffirms 'D' Rating on INR25.46cr Loan
DEESAN GINNING: CRISIL Assigns 'C' Rating to INR150MM Cash Loan
FEROZEPUR FOODS: CARE Assigns 'B+' Rating to INR40.15cr LT Loan
GEI INDUSTRIAL: CARE Assigns 'D' Rating to INR23.50cr LT Loan
GLOBAL TECHNOCRATS: CRISIL Reaffirms B+ Rating on INR70MM Loan
GUPTA FOODS: CARE Assigns 'B' Rating to INR9.50cr LT Loan
I.P. COMPLEX: CRISIL Reaffirms 'B' Rating on INR35MM Loan
INTERLINK FOODS: Ind-Ra Assigns 'IND BB+' LT Issuer Rating
ION HEALTHCARE: Ind-Ra Assigns 'IND BB-' LT Issuer Rating
JMV ISPAT: CRISIL Assigns 'B' Rating to INR35MM Term Loan
JUMBO BAG: CRISIL Reaffirms B+ Rating on INR345MM Cash Loan
KANKAI PIPES: CARE Revises Rating on INR3.79cr LT Loan to B+
KEVIN METPACK: CRISIL Reaffirms 'B' Rating on INR410MM LT Loan
KNOWLEDGE VISTAS: CARE Reaffirms 'D' Rating on INR14cr LT Loan
KURUNJI AGRO: CRISIL Assigns 'D' Rating to INR70MM LT Loan
M.G. INDUSTRIES: Ind-Ra Assigns 'IND B+' LT Issuer Rating
MANJUSHREE INNOVATIONS: CRISIL Assigns B+ Rating to INR300M Loan
MODERN STAGE: CRISIL Assigns 'B' Rating to INR40.5MM Cash Loan
P. K. INDUSTRIES: CARE Assigns B+ Rating to INR4cr LT Loan
P. V. RAMANAIAH: CRISIL Reaffirms B+ Rating on INR120MM Loan
PARAMOUNT SEAFOODS: CRISIL Reaffirms B+ Rating on INR15MM Loan
PAWAN AUTOWHEELS: CARE Assigns 'B' Rating to INR11.15cr LT Loan
PAYYANUR MEDICAL: CRISIL Reaffirms 'B' Rating on INR180MM Loan
PERIWAL POLYMERS: CARE Reaffirms B+ Rating on INR4cr LT Loan
PRABHATAM ADVERTISING: Ind-Ra Withdraws IND BB+ LT Issuer Rating
PRATHYUSHA EDUCATIONAL: Ind-Ra Withdraws LT 'IND D' Rating
R L AVIATION: CRISIL Assigns B+ Rating to INR40MM Overdraft Loan
RAGHAV INDUSTRIES: CRISIL Reaffirms B+ Rating on INR289.3MM Loan
RAJSHREE EDUCATIONAL: Ind-Ra Withdraws BB Rating on INR540MM Loan
RANGOLI INDUSTRIES: CRISIL Assigns B- Rating to INR120MM Loan
RING FORGINGS: CRISIL Reaffirms 'B+' Rating on INR60MM Loan
SAMRIDDHI RICE: Ind-Ra Assigns BB- Long-Term Issuer Rating
SARTHAK ISPAT: Ind-Ra Hikes LT Issuer Rating to 'IND BB+'
SCAN STEELS: CARE Lowers Rating on INR160cr LT Loan to 'D'
SCANIA STEELS: CRISIL Reaffirms 'D' Rating on INR244.3MM Loan
SHAMBHUMAHADEV SUGAR: CARE Cuts Rating on INR28.43cr Loan to B+
SHREE BADRI: CRISIL Assigns 'B+' Rating to INR150MM Cash Loan
SHREE GANESH: CRISIL Reaffirms 'B' Rating on INR120MM Cash Loan
SHRI HARI: CRISIL Cuts Rating on INR124.6MM LT Loan to B
SN BUILDCON: Ind-Ra Assigns 'IND B' Long-Term Issuer Rating
SRI BALAJI: Ind-Ra Assigns 'IND B+' Long-Term Issuer Rating
SUBHAM ENTERPRISES: CRISIL Assigns B Rating to INR10MM Cash Loan
SUN HOSPITAL: CRISIL Assigns 'B+' Rating to INR34.9MM Term Loan
SUNRISE MARKETING: CRISIL Reaffirms 'B+' Rating on INR10MM Loan
SUNRISE TIMPLY: Ind-Ra Assigns BB+ Long-Term Issuer Rating
SYMTRONICS AUTOMATION: CRISIL Reaffirms B- Rating on INR45MM Loan
TANEJA OVERSEAS: CARE Assigns B+ Rating to INR9cr LT Loan
UMA KRAFTPAPER: CRISIL Assigns 'B' Rating to INR82.5MM Term Loan
VISITOR GARMENTS: Ind-Ra Affirms 'IND BB' LT Issuer Rating
VIVEK AGROTECH: CARE Assigns B+ Rating to INR9.95cr LT Loan
WOODVILLE PALACE: CRISIL Assigns B- Rating to INR200MM Term Loan
YOGESH DEVELOPERS: Ind-Ra Assigns 'IND BB-' LT Issuer Rating
J A P A N
ASAHI KASEI: President to Step Down Over Piling Scandal
MITSUI OSK: Bonds Drop on Risk Rating Cut Will End Index Status
SONY CORP: Fitch Hikes Issuer Default Ratings to 'BB'
TAKATA CORP: Nomura, Mizuho See Distressed Debt at Bargain Price
TOSHIBA CORP: S&P Lowers CCR to 'B+' & Maintains on Watch Neg.
M O N G O L I A
BOGD BANK: Moody's Assigns B3 Deposit Rating
N E W Z E A L A N D
AWARUA FARM: Receiver Puts Dairy Farms Up For Sale
X X X X X X X X
* BOND PRICING: For the Week Feb. 1 to Feb. 5, 2016
- - - - -
=================
A U S T R A L I A
=================
AIMIA: ADMA Buys Group Out of Administration
--------------------------------------------
Cliff Sanderson at Dissolve.com.au reports that the assets of
AIMIA, the collapsed Digital Industry Association of Australia,
have been purchased by the Association for Data-Driven Marketing
and Advertising (ADMA). AIMIA was put into administration in
January and closed its doors a month earlier, the report says.
AIMIA has been in operation for 23 years and has almost 400
members. Ferrier Hodgson has been appointed administrators of the
company.
According to the report, ADMA said the acquisition is intended to
support Australia's digital industry and will continue to offer
services and initiatives to the member base of AIMIA.
COBBLEDICK BROS: First Creditors' Meeting Set For Feb. 17
---------------------------------------------------------
Hugh Sutcliffe Martin and Michael Dirk Hawker Van Dissel of
Bernardi Martin were appointed as administrators of Cobbledick
Bros. Nominees Pty. Ltd. on Feb. 8, 2016.
A first meeting of the creditors of the Company will be held at
the boardroom of Bernardi Martin, 195 Victoria Square, in
Adelaide, on Feb. 17, 2016, at 10:00 a.m.
HOLLYWOOD SHOWGIRLS: Landlord Locks Venue Over Unpaid Rent
----------------------------------------------------------
Ryan Keen at Gold Coast Bulletin reports that the party is over
for a new Gold Coast nightclub player, locked out of his venue by
a landlord claiming AUD40,000 in unpaid rent and bond.
The Bulletin relates that Hollywood Showgirls owner Craig Duffy
had the locks changed two weeks ago on prohibition-era style bar
19 Orchid Ave, underneath his Surfers Paradise strip club.
According to the report, Mr Duffy who previously tried two failed
ventures in the space -- The Pussycat Club strip bar and R & B
joint Basement -- leased it to Nathan Innes in the middle of last
year.
The report relates that the veteran operator and businessman said
he shut-out Mr Innes and terminated his lease because of alleged
debts and "non-compliant" signage.
"He's in breach of lease due to rent being owed, over AUD20,000,
or thereabouts. (And) he just started painting signs up wherever
he wanted all over the building. He tried to suggest I approved
the signs but where he's put the signs is not even my property --
it's the body corp's," the report quotes Mr. Duffy as saying.
The Bulletin says Mr Innes disputes the unpaid rent bill, saying
Mr Duffy and Showgirls staff racked up an AUD18,000 bar tab at 19
during Hollywood's Christmas party which was to be wiped off his
debt.
But Mr Duffy said he honoured the AUD18,000 Christmas party bar
tab and 19 still owed him money, the report relays.
The Bulletin relates that Mr Duffy argued he was more than fair to
the first-time bar owner, giving him the space rent free for the
first three to four months and still hadn't seen a $30,000 bond.
He said he had sent about a dozen emails, texts and phone calls to
Mr Innes about the debts and all were ignored, the report relays.
"So as a last resort I had my lawyers send his lawyers breach
notices. He's received what a tenant should be considering serious
legal letters, otherwise the lease is terminated within 14 days.
Do you know what his answer to this was? Absolute silence; he
ignored them so on day 15 the obvious occurred," Mr Duffy, as
cited by The Bulletin, said.
They met late last week to discuss it, with Mr Innes hoping to
return to the venue, says The Bulletin.
Mr Duffy said unless he received a new proposal in writing, he'd
put the place up for lease to a new operator, The Bulletin adds.
REVOLUTION BRANDS: 20 Jeep Clothing Stores Under Administration
---------------------------------------------------------------
Broede Carmody at SmartCompany reports that the company with the
licence to sell Jeep clothing and footwear in Australia has
collapsed into voluntary administration.
The collapse comes around 10 years after Jeep opened its first
concept store in Melbourne through local licensee Revolution
Brands, SmartCompany says.
Revolution Brands appointed voluntary administrators last week,
with Barry Wight from Cor Cordis Chartered Accountants acting as
the company's external manager, according to SmartCompany.
A creditors' meeting is due to be held in Melbourne on
February 15, with proofs and proxies to be submitted two days
prior.
The first Jeep clothing store in Australia opened in Melbourne's
Highpoint Shopping Centre about 10 years ago. Since then, the Jeep
brand has expanded nationwide and has stores in Canberra, Perth,
Adelaide, Newcastle and the Gold Coast.
According to SmartCompany, the 20 retail outlets under
administration sell a range of Jeep-branded apparel, including
caps, underwear and shorts.
Speaking to SmartCompany on February 8, Mr. Wight said the Jeep
stores will remain open while Revolution Brands' future is
finalised.
"Our current intention is to trade Revolution Brands whilst we
pursue a sale of the business and assets as a going concern," Mr.
Wight told SmartCompany.
A deed of company arrangement is also on the table, the report
adds.
TRIM BUILDING: Housing Firm Enters Liquidation
----------------------------------------------
Cliff Sanderson at Dissolve.com.au reports that Trim Building
Services Pty Limited has been put into liquidation. Worrells
Solvency and Forensic Accountants' Nicholas Craig Malanos and
Daniel Cvitanovic were appointed liquidators of the business on
January 11, 2016, the report discloses.
According to Dissolve.com.au, te company's list of unsecured
creditors includes hardware, plumbing, roofing, window and local
tiling businesses totalling over AUD1.1 million.
The report says the liquidators are still continuing to
investigate the affairs of the company. The collapse of Trim
Building Services left some businesses out of pocket and houses
not completed, Dissolve.com.au adds.
=========
C H I N A
=========
CHINA BAK: Appoints Simon Xue as Director
-----------------------------------------
The Board of Directors of China BAK Battery, Inc. appointed Dr.
Simon J. Xue as the Company's director to fill the vacancy created
by the resignation of Mr. Chunzhi Zhang on Jan. 14, 2016,
according to a Form 8-K document filed with the Securities and
Exchange Commission.
Dr. Xue was also appointed by the Board to each of the Audit,
Compensation and Nominating and Corporate Governance Committees
and will act as the Chair of the Compensation Committee. In
addition, the Board determined that Dr. Xue meets the criteria for
independent directors and audit committee members as set forth in
NASDAQ Listing Rules 5605(a)(2) and 5605(c)(2)(A). Dr. Xue is
entitled to an annual compensation of $20,000 for his services as
a director of the Company.
Dr. Xue has approximately 40 years experience in nuclear
chemistry, solid state chemistry, superconductivity and materials
for Lithium ion batteries. Within his research career, he has
spent 21 years in the research and development of Lithium ion
battery. Dr. Xue is currently the senior director of National
Institute for Low-&-Clean Energy in China and a member of National
"Thousand Talent" Plan and a member of Expert Committee for
"Chinese Industrial Association of Power Sources." Prior to that,
Dr. Xue was a director of Altair Nanotechnologies Inc., a Delaware
company, between August 2011 and April 2012. From 2010 to 2011, he
served as the chief executive officer of Yintong Energy Co., Ltd.,
a subsidiary of Canon Investment Holdings Ltd. Dr. Xue has also
held positions at Ultralife, Duracell, B&K Electronics Co., Ltd.,
Valence Energy-Tech (Suzhou) Co., A123 Systems Inc. and
International Battery Inc. He enjoys an extensive reputation in
the whole product chain of lithium ion battery in China, including
materials, equipment, cell manufacturing and testing. He has
authored or co-authored over 50 scientific articles, 12 patents
relevant to battery chemistry and materials and participated,
presented and hosted more than 30 battery or material related
international conferences. Dr. Xue completed his Ph.D. program in
Solid State Chemistry in McMaster University in 1992.
About China BAK
China BAK Battery conducted business through BAK International
Limited and its subsidiaries that produced prismatic cells,
cylindrical cells, lithium polymer cells and high power lithium
batters. The BAK International business was foreclosed on
June 30, 2014. Consequently, China BAK is looking to develop,
manufacture and sell energy high power lithium batteries primarily
for electric vehicles when its Dalian, China manufacturing
facilities start to operate in the first quarter of 2015.
China BAK reported net profit of US$15.87 million for the year
ended Sept. 30, 2015, compared to net profit of US$37.8 million
for the year ended Sept. 30, 2014.
As of Sept. 30, 2015, China BAK had US$63.36 million in total
assets, US$41.69 million in total liabilities and US$21.66 million
in total shareholders' equity.
Crowe Horwath (HK) CPA Limited, in Hong Kong, China, issued a
"going concern" qualification on the consolidated financial
statements for the year ended Sept. 30, 2015, citing that the
Company has a working capital deficiency, accumulated deficit from
recurring net losses and significant short-term debt obligations
maturing in less than one year as of Sept. 30, 2015. All these
factors raise substantial doubt about its ability to continue as a
going concern.
KU6 MEDIA: Committee Retains Legal Counsel and Financial Advisor
----------------------------------------------------------------
Ku6 Media Co., Ltd., announced that in response to the preliminary
non-binding proposal letter dated Feb. 1, 2016, received by the
Company's Board of Directors from Shanda Interactive Entertainment
Limited, the controlling shareholder of the Company, to acquire
the Company in a "going private" transaction, the special
committee of independent directors has selected Weil, Gotshal &
Manges LLP as its U.S. legal counsel and Duff & Phelps, LLC and
Duff & Phelps Securities, LLC as its financial advisor to assist
it in its evaluation.
As previously announced, the Proposal contemplates the Proposing
Buyer acquiring the Company for US$0.0108 per class ordinary
share, or US$1.08 per American depositary shares (each
representing 100 ordinary shares).
The Special Committee has not set a definitive timetable for the
completion of its evaluation of the proposed transaction or any
other alternative transaction (if any) and does not currently
intend to announce developments unless and until an agreement has
been reached. There can be no assurance that any definitive offer
will be made by the Proposing Buyer or any other person, that any
definitive agreement will be executed relating to the proposed
transaction, or that the proposed transaction or any other
transaction will be approved or consummated.
About Ku6 Media
Ku6 Media Co., Ltd. -- http://ir.ku6.com/-- is an Internet video
company in China focused on User-Generated Content. Through its
premier online brand and online video Web site --
http://www.ku6.com/-- Ku6 Media provides online video uploading
and sharing service, video reports, information and entertainment
in China.
As of Dec. 31, 2015, the Company had $9.01 million in total
assets, $14.31 million in total liabilities and a $5.29 million
total shareholders' deficit.
PricewaterhouseCoopers Zhong Tian LLP, in Shanghai, the People's
Republic of China, issued a "going concern" qualification on the
consolidated financial statements for the year ended Dec. 31,
2014, citing that the Company's recurring losses, negative working
capital, net cash outflows, and uncertainties associated with
significant changes made, or planned to be made, in respect of the
Company's business model, raise substantial doubt about the
Company's ability to continue as a going concern.
ZOOMLION HEAVY: Fitch Lowers IDR to 'B+' & Puts on Watch Neg.
-------------------------------------------------------------
Fitch Ratings has downgraded Chinese construction equipment
manufacturer, Zoomlion Heavy Industry Science and Technology Co.
Ltd's Long-Term Issuer Default Rating to 'B+' from 'BB'. Fitch
has also downgraded the company's senior unsecured rating and the
ratings of the bonds issued by Zoomlion H.K. SPV Co. Ltd and
guaranteed by Zoomlion to 'B+' from 'BB-', with a recovery rating
of 'RR4'. All ratings have been placed on Rating Watch Negative
(RWN).
The downgrade reflects Zoomlion's significantly worsened financial
profile in 2015, with no apparent recovery in 2016. The company's
revenue fell by 24% in the first nine months of 2015, after a 33%
fall in 2014. Furthermore, its working capital needs have not
declined despite the sales decline. As a result, its debt
continues to rise. Fitch believes that demand for the company's
core concrete machinery products is undergoing a structural
decline rather than a cyclical downturn. Its effort to diversify
its product offering via acquisitions further burdens its balance
sheet.
The ratings have been placed on RWN following announcements on 26
January 2016 that Zoomlion made an unsolicited bid to acquire US-
based industrial equipment manufacturer, Terex Corporation
(Terex), for USD3.3 bil. Fitch views that in the event of a
successful bid, the diversification benefits for Zoomlion will be
outweighed by the financial costs. Fitch will resolve the RWN
once the transaction is completed or the bid is terminated.
KEY RATING DRIVERS
Sales Collapse: Zoomlion's revenue fell to CNY21.0 bil. in the
last 12 months (LTM) ending September 2015 from its peak of
CNY48.1 bil. in 2012. EBITDA margins also declined to 6.5% from
21.7% in the same period, partly due to the company's weakening
pricing power in the downturn. The fall was driven by buyers of
its concrete machinery products, significantly curtailing new
purchases and lengthening their product replacement cycle amidst a
construction industry slowdown in China. Fitch do not expect the
trend to change in 2016 with the longer product replacement cycle
likely to become a permanent feature.
Working Capital Remains High: Zoomlion conducts a significant
portion of its sales with credit provided to buyers directly or
financial leases funded from its balance sheet. In the past, the
company managed to reduce some of its receivables by factoring
them on a non-recourse basis, but has not done so since 2014.
Receivables, including lease receivables, have remained stubbornly
high at CNY46.0 bil. at end September 2015 compared to CNY36.8
bil. at end 2014 and CNY44.5 bil. at end 2013. The company
reports insignificant bad debts and write-offs. As a result of
high receivables and poor cash flow generation, the company's net
debt level rose sharply to CNY20.9 bil. at end September 2015 from
a net cash position at end 2011.
Diversification Benefits Limited: Zoomlion has benefited
marginally from its modest product diversification, with its
smaller environmental machinery segment maintaining relatively
strong sales and margins in 2014 and 2015. In 2014, Zoomlion
acquired a 67.5% stake in Chery Heavy Industry Co Ltd, an
agricultural machinery manufacturer, for CNY2.3 bil., to further
increase diversification, but its contribution remains small.
Terex Will Transform Company: Zoomlion's target, Terex, reported
LTM sales of USD6.8 bil. and EBITDA of USD374 mil. at end
September 2015. Its sales are well-diversified across products
and globally. A successful bid will materially improve Zoomlion's
business profile as it will reduce its reliance on demand from the
Chinese construction sector. However, Zoomlion has not made
public its financing plans. A largely debt-funded acquisition
will likely outweigh the business benefits of the bid. The bid is
also subject to regulatory approvals by US authorities.
KEY ASSUMPTIONS
-- Revenue to decline by 25% in 2015 and grow by 0% and 5% in
2016 and 2017, respectively
-- Working capital to stay flat in 2015 and decline marginally
in 2016 and 2017
-- Capex (including acquisition) to decrease to less than
CNY1 bil. from 2015-2017
-- Potential Terex acquisition is not factored in the rating
case
RATING SENSITIVITIES
-- If the Terex bid is successful, Fitch will consider
Zoomlion's new business and financial profiles in
determining its rating. The company's past track record of
using debt to fund acquisitions suggests a high likelihood
of a negative rating action.
-- If the Terex bid is not successful, Fitch will affirm
Zoomlion's rating at B+ and assign a Negative Outlook to
reflect the negative trends in its business profile. Rating
sensitivities at that point would be:
Negative: Future developments that may, individually or
collectively, lead to negative rating action include:
-- EBITDA margin sustained below 5%;
-- Working capital to LTM sales ratio sustained above 200%
(231% at end September 2015); and
-- Further sustained decline in sales.
Positive: Future developments that may, individually or
collectively, lead to positive rating action include:
-- If the factors mentioned in the negative sensitivities does
not materialize in the next 12 to 18 months, the Rating
Outlook may be revised to Stable.
* CNY Pressures Could Bring Tighter Capital Controls, Fitch Says
----------------------------------------------------------------
Capital outflows and sharp declines in official foreign reserves
continue to add to currency pressures in China, leading to rising
investor uncertainty and heightened fears of the risks of a much
sharper yuan devaluation. Fitch Ratings does not believe that
such a devaluation is likely, but the authorities could tighten
capital controls to mitigate outflows.
Of the main policy options available, tighter capital controls are
likely to be the policy of least resistance for Chinese
authorities relative to a sharp currency devaluation or hiking
domestic interest rates.
Fitch believes that a one-off devaluation could come with
significant costs. It would undercut the broad economic objective
of rebalancing the economy by squeezing households - through
higher import costs - and effectively subsidising corporate
profits. Furthermore, such a devaluation could exacerbate
financial market volatility in the short term, particularly among
China's emerging-market trading partners.
Raising interest rates could stem some of the capital outflow, but
would intensify stresses on heavily indebted domestic corporates
and local governments.
There is already some anecdotal evidence that regulators are
adopting a stricter approach to enforcing existing capital
controls, such as the limit on personal foreign-exchange use of
USD50,000. However, Fitch believes that tighter capital controls
can only be a temporary solution. The policy dilemma facing the
Chinese authorities is a result of deeper pressures on economic
and financial stability stemming from high and rising leverage,
and the need to rebalance the economy to a more sustainable growth
model.
Fitch assessed the policy options facing Chinese authorities in
the agency's latest Fitch Wire + report: "China Currency Pressure
Highlights Policy Conundrum" published on February 4.
================
H O N G K O N G
================
NOBLE GROUP: Bank Debt Prices Signal Concern on Investors
---------------------------------------------------------
David Yong and Jonathan Burgos at Bloomberg News report that for
all the steps Noble Group Ltd. has taken to shore up its cash,
investors in its bank debt are signaling concern that the worst
isn't over for the commodities trader after its ratings were cut
to junk.
A parcel of about $15 million of a group credit facility that
matures on April 17 traded at about 75 cents on the dollar last
week, Bloomberg relates citing people familiar with the matter who
asked not to be identified because they aren't authorized to speak
to the media.
According to Bloomberg, the last trade on a portion of the
facility occurred in December and settled above 80 cents, the
people said, without specifying the size. The parcel is part of a
$2.3 billion revolving credit line that Noble Group borrowed in
2015.
"A bank selling in the 70s is either having its own issues or is
clearly worried of deeper and longer issues at Noble," Bloomberg
quotes Robert Southey, who trades distressed loans as managing
partner at London-based Trench Capital Partners LLP, as saying.
The market sees the company "as having inability or difficulty
refinancing this year, leading to debt restructuring and perhaps a
haircut," he said.
Bloomberg notes that Noble Group's stocks and bonds have slumped
over the past year as it rejected criticism of its finances and
commodity prices sank to the lowest level since at least 1991.
Moody's Investors Service and Standard & Poor's have cut its
credit rating to junk since late December, Bloomberg says.
According to the report, the firm has fought allegations about its
accounting by a group called Iceberg Research, which it has said
is the vehicle of a disgruntled analyst it fired.
Noble Group external public relations adviser Bell Pottinger LLP
said the group can't comment on secondary loan trading ahead of a
full-year earnings report scheduled for release later this month,
Bloomberg relays.
"That sale at about 75 cents on the dollar is telling you that a
large part of the credit market thinks that the company is going
to default," Bloomberg quotes Gillem Tulloch, founder of
Hong Kong-based GMT Research Ltd., who has criticized Noble
Group's financials, as saying. "The market is just unfavorable
towards commodity companies."
Bond investors have also shown concern about Noble Group's
financial health. The yield on its 6.75 percent notes due 2020 is
at 27 percent, according to data compiled by Bloomberg. That's
more than three times the average 8.85 percent on junk notes
globally, Bloomberg relates citing Bank of America Merrill Lynch
indexes. Credit-default swaps on Noble Group surged to a record
4,975 basis points on Jan. 26 before easing to 3,790 on Feb. 4,
according to Bloomberg.
"This possibly reflects a combination of two factors in which
banks are forced to reduce exposure because Noble Group has lost
its investment-grade rating and it has become too expensive to
hedge against default in the CDS market," Bloomberg quotes Charles
Macgregor, head of Asian high-yield research in Singapore at
Lucror Analytics, as saying.
Shareholders on Jan. 28 approved the sale of its 49 percent stake
in Noble Agri Ltd. to China's Cofco Corp. for at least $750
million, a deal that would help improve its liquidity and
creditworthiness, chief executive Yusuf Alireza has said,
Bloomberg relays. The Chinese food company bought the other
51 percent stake from Noble Group for $1.5 billion in 2014.
About Noble Group
Noble Group Limited (SGX:N21) -- http://www.thisisnoble.com/-- is
a Hong Kong-based company engaged in supply of agricultural,
industrial and energy products. The Company supplies agricultural
and energy products, metals, minerals and ores .Agriculture
products include grains, oilseeds and sugar to palm oil, coffee,
and cocoa. Energy business includes coal, gas and liquid energy
products. In metals, minerals and ores (MMO), it supplies iron
ore, aluminum, special ores and alloys. The Company operates
nearly in 140 locations. It supplies growth demand markets in Asia
and Middle East. Alcoa World Alumina and Chemicals is the
subsidiary of this company.
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 11, 2016, Standard & Poor's Ratings Services lowered its
long-term corporate credit rating on Hong Kong-based commodities
trading company Noble Group Ltd. to 'BB+' from 'BBB-'. At the
same time, S&P lowered the long-term issue rating on Noble's
outstanding senior unsecured notes to 'BB' from 'BBB-'.
Standard & Poor's also lowered its long-term Greater China
regional scale rating on Noble to 'cnBBB' from 'cnBBB+' and on the
company's notes to 'cnBB+' from 'cnBBB+'. The ratings remain on
CreditWatch with negative implications.
The TCR-AP on Jan. 4, 2016, reported that Moody's Investors
Service has downgraded Noble Group Limited's senior unsecured bond
ratings to Ba1 from Baa3 and the provisional rating on its senior
unsecured MTN program to (P)Ba1 from (P)Baa3.
At the same time, Moody's has assigned a Ba1 corporate family
rating to Noble and has therefore withdrawn the company's issuer
rating. The rating actions conclude Moody's review for downgrade
initiated on Nov. 16, 2015. The outlook for the ratings is
negative.
=========
I N D I A
=========
AMBICA CHEMICALS: Ind-Ra Assigns 'B' Long-Term Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Ambica Chemicals
(AC) a Long-Term Issuer rating of 'IND B'. The Outlook is Stable.
KEY RATING DRIVERS
The ratings reflect AC's small scale and weak credit metrics. The
company has started manufacturing pharmaceutical intermediates
from July 2015 before which the company was engaged in the trading
of the same. 9MFY16 revenue was INR10m while the company expects
to scale up the operations during FY17 to INR145 mil. with EBITDA
interest coverage of above 1.0x. Liquidity position was
comfortable with the fund-based facilities being utilized at an
average of 27.5% over the six months ended December 2015.
The ratings derive support from the two-decade-long experience of
the promoter in the pharma industry.
RATING SENSITIVITIES
Positive: Stabilization of operations leading to substantial
growth in the top line and profitability resulting in a
sustainable improvement in the credit metrics may lead to a
positive rating action.
Negative: Inability to scale up as per management expectations
leading to stress on the liquidity profile will be negative for
the ratings.
COMPANY PROFILE
Incorporated in 1989, AC is a proprietorship firm engaged in the
manufacturing of nebivelol hydrochloride and drugs intermediates.
AC's ratings are:
-- Long term Issuer rating: assigned 'IND B'; Outlook Stable
-- INR42.2 mil. long-term loans: assigned 'IND B'/Stable
-- INR23.8 mil. fund-based facilities: assigned
'IND B'/Stable/'IND A4'
BANSAL EXTRACTION: CARE Reaffirms 'B+' Rating on INR21.88cr Loan
----------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Bansal Extraction And Exports Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 21.88 CARE B+ Reaffirmed
Short-term Bank Facilities 3.00 CARE A4 Reaffirmed
Long-term/ Short-term 45.00 CARE B+/ CARE A4
Bank Facilities Reaffirmed
Rating Rationale
The ratings of Bansal Extraction and Exports Private Limited
(BEEPL) continue to remain constrained on account of its thin
profitability, high leverage and weak debt coverage indicators.
The ratings are further constrained by BEEPL's working capital
intensive operations, its presence in a highly fragmented and
competitive domestic edible oil industry and vulnerability of its
profitability to volatile agro-commodity prices.
The ratings, however, derive strength from the experience of the
promoter group in diverse businesses, BEEPL's integrated
manufacturing operations with value-added products and steady
growth prospects for the edible oil industry in India.
BEEPL's ability to improve its profitability by increasing the
share of value-added products in its sales mix and efficiently
manage the volatile raw material prices along with improvement in
the capital structure would be the key rating sensitivities.
BEEPL is a part of the Bansal Group of Bhopal (Madhya Pradesh)
which has presence across businesses like construction, iron and
steel, education and solvent extraction & refining (soyabean).
Though the company (BEEPL) was incorporated in May 2009,
commercial operations commenced in February 2011.
BEEPL is engaged in the business of soya oil extraction and
refining and has its manufacturing facility located in Bhopal
with an installed capacity of 750 Ton per Day (TPD) for solvent
extraction and 125 TPD for oil refining and processing.
BEEPL's key products include soya de-oiled cake (DOC) and refined
oil, soya nuggets, soya flour, lecithin and acid oil. The company
sells its soya products under the brand name of 'Bansal'.
Based on FY15 (refers to the period April 1 to March 31) audited
results, BEEPL reported a total operating income (TOI) of
INR219.46 crore (Rs.351.10 crore in FY14) with a PAT of INR0.14
crore (Rs.2.62 crore in FY14).
BATRA RICE: CRISIL Reaffirms 'B+' Rating on INR300MM Cash Loan
--------------------------------------------------------------
CRISIL has reaffirmed its rating on the long-term bank facility of
Batra Rice Mills (BRM).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 300 CRISIL B+/Stable (Reaffirmed)
The rating continues to reflect the firm's weak financial risk
profile because of a small net worth and weak debt protection
metrics, high dependence on the monsoon, and susceptibility to
changes in government policies. These rating weaknesses are
partially offset by a strong track record in, and benefits
expected from the healthy growth prospects for, the basmati rice
industry.
Outlook: Stable
CRISIL believes BRM will continue to benefit over the medium term
from its promoters' extensive industry experience. The outlook may
be revised to 'Positive' in case of significant improvement in
scale of operations and profitability leading to large cash
accrual, along with capital infusion, resulting in a better
capital structure. Conversely, the outlook may be revised to
'Negative' in case of deterioration in the financial risk profile,
most likely because of significant increase in inventory leading
to large incremental bank borrowing, or debt-funded capital
expenditure.
BRM was established in 1969 as a partnership firm by Mr. Jagannath
Batra and Mr. Mohinder Mohan Batra. The firm mills and shells rice
at its plant in Karnal, Haryana.
Net profit was INR0.5 million on net sales of INR893.1 million in
2014-15 (refers to financial year, April 1 to March 31), against a
net profit of INR0.5 million on net sales of INR548.7 million in
2013-14.
BOLTON PETFORMS: CRISIL Assigns 'B' Rating to INR54MM Cash Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Bolton Petforms Private Limited (BPPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 54 CRISIL B/Stable
Term Loan 30 CRISIL B/Stable
The rating reflects the implementation-related risks associated
with its ongoing project and weak financial risk profile marked by
modest net worth. These weaknesses are partially offset by the
extensive experience of the promoters in preforms manufacturing
industry.
Outlook: Stable
CRISIL believes that BPPL will continue to benefit over the medium
term from the extensive experience of its promoters. The outlook
may be revised to 'Positive' if the company ramps up its scale of
operations and generates sizeable revenue and profitability,
resulting in an improvement in its financial risk profile.
Conversely, the outlook may be revised to 'Negative' in case BPPL
faces any delay in commencing commercial operations, leading to
considerably low revenue and profitability, or undertakes
substantially large, debt-funded capital expenditure programme,
resulting in deterioration in its financial risk profile.
BPPL, established in 2015 as a private limited company by Mr.
Vijaykumar, is setting up a polyethylene terephthalate (PET)
preform manufacturing facility in Chennai.
CHAITANYA ENTERPRISES: CRISIL Reaffirms B+ Rating on INR45MM Loan
-----------------------------------------------------------------
CRISIL's ratings on the bank facilities of M/s. Chaitanya
Enterprises (CE) continue to reflect, CE's modest scale of
operations in a highly competitive engineering and construction
industry, its average financial risk profile, marked by high
gearing and subdued debt protection metrics, and large working
capital requirements. These rating weaknesses are partially offset
by the extensive industry experience of CE's partners and their
established relationship with customers.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 59 CRISIL A4 (Reaffirmed)
Letter of Credit 41 CRISIL A4 (Reaffirmed)
Overdraft Facility 45 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that CE will continue to benefit over the medium
term from the extensive industry experience of its partners and
their established customer relationship. The outlook may be
revised to 'Positive' in case of CE reports higher-than-expected
cash accruals, driven by ramp-up in the scale of operations,
resulting in improvement in financial risk profile. Conversely,
the outlook may be revised to 'Negative' in case of deterioration
in the financial risk profile, particularly, its liquidity, most-
likely because of lower-than-expected cash accruals or elongation
in the working capital cycle.
CE based in Warangal (Telangana) was established as a proprietary
concern in 1989 by Mr. Akula Nagaraju. CE is engaged in laying of
overhead lines, erection of electrical sub-stations, towers and
transformers.
CHOICE BOARDS: CRISIL Reaffirms B+ Rating on INR57.5MM Loan
-----------------------------------------------------------
CRISIL's ratings on the bank facilities of Choice Boards Private
Limited (CBPL) continue to reflect the company's below-average
financial risk profile marked by its small net worth, moderate
total outside liabilities to tangible net worth ratio, and weak
debt protection metrics.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 57.5 CRISIL B+/Stable (Reaffirmed)
Inland/Import
Letter of Credit 30 CRISIL A4 (Reaffirmed)
Proposed Long Term
Bank Loan Facility 12.5 CRISIL B+/Stable (Reaffirmed)
The ratings are also constrained on account of its modest scale of
operations and its exposure to intense competition in the steel
trading business resulting in its low profitability margins. These
rating weaknesses are partially offset by the benefit that the
company derives from its promoters' extensive experience in the
steel and timber industry, and its efficient working capital
management.
Outlook: Stable
CRISIL believes that CBPL will continue to benefit over the medium
term from its promoters' extensive industry experience and its
established relations with customers. The outlook may be revised
to 'Positive' if there is a substantial and sustained increase in
the company's scale of operations and profitability margins, and
if there is 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 CBPL's profitability margins, or significant deterioration in
its capital structure caused most likely by a stretch in its
working capital cycle or large debt funded capital expenditure.
CBPL was promoted in 1997 by Mrs. Buji Devi Agarwal and her family
members. The company trades in various steel products such as
billets, mild-steel plates, thermo-mechanically treated bars and
timber logs.
For 2014-15 (refers to financial year April1 to March 31), CBPL
reported profit after tax (PAT) of INR1.3 million on net sales of
INR380 million against PAT of INR2 million on net sales of INR455
million for 2013-14.
COSMOS INFRA: CRISIL Suspends B Rating on INR270MM Term Loan
------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Cosmos
Infra Engineering India Limited (Cosmos).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Overdraft Facility 170 CRISIL B/Stable
Proposed Long Term
Bank Loan Facility 150 CRISIL B/Stable
Term Loan 270 CRISIL B/Stable
The suspension of rating is on account of non-cooperation by
Cosmos with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, Cosmos is yet to
provide adequate information to enable CRISIL to assess Cosmos's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
Incorporated in 1986 by Mr. Vinod Mittal, Cosmos develops group
housing and residential societies, townships, malls, hotels, and
corporate offices, mainly in North India. COSMOS is undertaking
four projects: Cosmos Golden Heights in Ghaziabad; Cosmos Greens
Phase II and Phase III in Bhiwadi; and Cosmos Express 99 in
Gurgaon.
CPR CAPITAL: CRISIL Lowers Rating on INR65MM Loan to 'C'
--------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank loan
facility of CPR Capital Services Limited (CPR) to 'CRISIL C' from
'CRISIL BB-/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Overdraft Facility 65 CRISIL C (Downgraded from
'CRISIL BB-/Stable')
The downgrade reflects notification of CPR's loan against share
(LAS) facility (not rated by CRISIL) as a non-performing account
by the bank. For the LAS facility, CPR has to maintain equity
shares equal to at least twice the borrowed amount as collateral
with the bank. Due to the prevailing market conditions, the value
of the collateral equity shares has declined sharply and the
company has not been able to maintain the prescribed margin.
Hence, the bank has notified the account as non-performing though
CPR has met interest obligations on all the bank facilities
(including those rated by CRISIL) on time.
CPR is a diversified financial services company based in
Ghaziabad, Uttar Pradesh, with business interests in securities,
commodities and currency derivatives, and depository services. The
company was established in 1995 to provide broking services to
retail and corporate clients, especially in the equity segment.
CREATIVE YARN: CRISIL Reaffirms 'B' Rating on INR70MM Cash Loan
---------------------------------------------------------------
CRISIL's rating on the bank facilities of Creative Yarn Private
Limited (CYPL) continues to reflect CYPL's weak financial risk
profile because of high gearing and weak debt protection metrics,
small scale of operations in the textile trading business, and
moderate working capital requirement. These weaknesses are
partially offset by its promoters' extensive experience in the
textile industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 70 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 18.9 CRISIL B/Stable (Reaffirmed)
Term Loan 11.1 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes CYPL will continue to benefit over the medium term
from its promoters' extensive industry experience. The outlook may
be revised to 'Positive' if the company increases cash accrual on
a sustainable basis, while improving working capital management,
leading to a better capital structure. Conversely, the outlook may
be revised to 'Negative' in case CYPL undertakes sizeable debt-
funded capital expenditure (capex), resulting in deterioration in
capital structure, or increase in working capital requirement,
leading to stretch in liquidity.
Update
CYPL's operating revenue registered healthy year-on-year growth of
33 percent to INR414.4 million in 2014-15 (refers to financial
year, April 1 to March 31), because of continuously expanding
clientele and increased revenue from trading in ready-made
garments (RMG). Operating margin was low, at 2.4 percent, in 2014-
15, due to trading business with 60 percent of revenue coming from
trading in RMG. Revenue is expected to grow moderately to INR460-
530 million over the medium term supported by healthy demand
because of longstanding relationships with customers and ongoing
capex to increase yarn manufacturing capacity. Operating
profitability is expected to improve over medium term with
increasing revenue from manufacturing, but will remain low, at 3
percent.
Working capital requirement is expected to remain moderate over
the medium term, driven by inventory of 20-25 days and receivables
of 60-90 days. Financial risk profile will remain weak because of
small networth of INR16-19 million and lower accretion to reserves
leading to high reliance on external debt.
Liquidity of the CYPL is expected to remain stretched owing to
fully utilised bank lines and just sufficient accruals position
vis-a-vis repayment obligations for the term debt contracted of
around INR15 million in current financial year for the capex
towards setting up separate yarn manufacturing unit. However,
liquidity is expected to be supported by continuous financial
support from promoters by way of unsecured loans which has
increased to INR22 million as on November 30, 2015, on a
provisional basis. CRISIL believes CYPL will continue to benefit
from promoters' financial support over the long term.
CYPL, incorporated in 2002, is a Ludhiana-based company that
primarily trades in hosiery and RMG. It also manufactures yarn.
Operations are managed by Mr. Anil Kapoor.
DASVE HOSPITALITY: CARE Reaffirms 'D' Rating on INR25.46cr Loan
---------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Dasve Hospitality Institute Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 25.46 CARE D Reaffirmed
Rating Rationale
The reaffirmation of the rating assigned to the bank facilities of
Dasve Hospitality Institutes Limited (DHIL) takes into account the
ongoing delays in servicing of interest and installment
obligations on the term loan. The rating is further constrained on
account of low level of enrollment at the institute.
DHIL's ability to scale up operations through higher enrollment of
students and timely servicing of debt obligations are the key
rating sensitivities.
DHIL is a wholly owned subsidiary of Lavasa Corporation Limited
(LCL, rated CARE D for its bank facilities) floated as a special
purpose vehicle. LCL is a part of Hindustan Construction Company
Limited (HCC, rated 'CARE C/CARE D/CARE A4') group. DHIL operates
a hospitality management institute under the brand name 'Ecole
Hoteliere Lavasa'. The institute is set-up and managed in
accordance with arrangement with Ecole Hoteliere de Lausanne,
Switzerland. The institute can enroll a maximum of 840 students.
During FY15 (refers to the period April 1 to March 31), DHIL
reported a net loss of INR14.40 crore on a total operating income
of INR3.51 crore vis-a-vis net loss of INR12.18 crore and total
operating income of INR3.14 crore in FY14.
DEESAN GINNING: CRISIL Assigns 'C' Rating to INR150MM Cash Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL C' ratings to the long-term bank
facilities of Deesan Ginning and Pressing Pvt Ltd (DGPPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 150 CRISIL C
Term Loan 18 CRISIL C
The rating reflects regular instances of overdrawal in cash credit
and stretched liquidity profile marked by insufficient accruals to
meet term debt repayments. The rating also factors in the
company's modest scale of operations, and subdued financial risk
profile because of small networth and weak debt protection
metrics. These weaknesses are partially offset by its promoters'
extensive experience in the cotton industry.
DGPPL was incorporated in 1995 by Mr. Bhupesh Rasiklal Patel, Mr.
Chintan Amarish Patel, and Mr. Tapan Mukesh Patel. The company
processes raw cotton into lint at its manufacturing facility at
Dhule, Maharashtra.
FEROZEPUR FOODS: CARE Assigns 'B+' Rating to INR40.15cr LT Loan
---------------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank
facilities of Ferozepur Foods Energy Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 40.15 CARE B+ Assigned
Long-term/Short-term Bank 35.00 CARE B+/CARE A4
Facilities Assigned
Short-term Bank Facilities 0.69 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Ferozepur Energy
Foods Private Limited (FFEPL) are constrained by the recent
commissioning of the manufacturing facilities and the
stabilization risk associated with the project. The ratings are
further constrained by susceptibility of business to the
vagaries of nature, fragmented nature of the industry and
regulatory policy risk. The ratings, however, derive strength from
the past experience and resourcefulness of the promoters,
established business relations with customers & suppliers and
close proximity to the raw material sources.
Going forward, the ability of the company to achieve the projected
income and profitability levels will remain the key rating
sensitivities.
Established in 2010, FFEPL has set up its manufacturing facilities
in Ferozepur (Punjab) with an installed capacity of 15 Tonnes per
Hour. The total project cost of INR71.02 crore, was funded through
infusion of INR16.02 crore in the form of equity capital, INR14.85
crore in the form of unsecured loans and the remaining through
term loans of INR40.15 crore. The entire project cost stands
incurred and the company started its commercial operations in the
first week of December 2015. FFEPL is engaged in milling,
processing and selling of Basmati rice and its by-products
including bardana, husk etc.
FFEPL will deal primarily in the export of Basmati rice to
countries located in the middle east like Dubai, Iran, Saudi
Arabia, Kuwait, Oman, Bahrain etc. which is currently being
catered to by its other group concern, Ferozepur Foods Private
Limited (FFPL; rated 'CARE BB-').
GEI INDUSTRIAL: CARE Assigns 'D' Rating to INR23.50cr LT Loan
-------------------------------------------------------------
CARE assigns 'CARE D' rating to the bank facilities of Gei
Industrial Systems Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank Facilities 23.50 CARE D Assigned
Short Term Bank Facilities 10.00 CARE D Assigned
Long Term/Short Term Bank 22.00 CARE D/CARE D
Facilities Assigned
Rating Rationale
The ratings assigned to the bank facilities of GEI Industrial
Systems Ltd. (GEI) take into account the recent delays in
servicing of its debt obligations on account of stressed liquidity
on back of cash losses and elongated working capital cycle.
Setup in 1971 by Mr. C. E. Fernandes, GEI Industrial Systems Ltd.
(GEI) is one of the largest domestic manufacturers of air cooled
heat exchangers (ACHE) and air cooled steam condensers (ACSC).
ACHE manufactured by GEI finds application in oil and gas sector
whereas ACSC are mainly used in thermal power plants. GEI, along
with its wholly owned subsidiary GEI Power Ltd. (GPL), has a
combined installed capacity of manufacturing 40,000 metric tonnes
per annum (MTPA) of heat exchangers/steam condensers and 79.20
lakh meters of finned tubes at their units located at Bhopal.
Based on the audited financials, at a standalone level, GEI
registered a net loss of INR32.44 crore on a total operating
income of INR30.58 crore during FY15 (refers to the period from
April 1 to March 31), compared with a net loss of INR50.24 crore
on a total operating income of INR69.38 crore during FY14.
Furthermore, as per the unaudited results for H1FY16, GEI reported
net loss of INR17.53 crore on a total operating income of INR17.21
crore.
GLOBAL TECHNOCRATS: CRISIL Reaffirms B+ Rating on INR70MM Loan
--------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Global
Technocrats Private Limited (GTPL) continues to reflect GTPL's
weak financial risk profile because of high gearing and modest
debt protection metrics, small scale of operations, and large
working capital requirement. These weaknesses are mitigated by the
promoter's extensive experience in the concertina coils industry
and the financial support he provides.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 70 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 50 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes GTPL will benefit over the medium term from its
promoter's experience. The outlook may be revised to 'Positive' if
revenue and profitability are substantial. Conversely, the outlook
may be revised to 'Negative' if an increase in working capital
requirement or any debt-funded capital expenditure weakens
financial risk profile.
GTPL was set up by Mr. Atul Agarwal in 1998. The company
manufactures concertina coils, which are used in security fencing
products. It has its manufacturing unit in Bhiwadi (Rajasthan).
The product portfolio includes punched tape concertina coils,
razor wire concertina coils, concertina barbed tape, concertina
flat wrap, reinforced barbed tape, and concertina wire mesh.
GUPTA FOODS: CARE Assigns 'B' Rating to INR9.50cr LT Loan
---------------------------------------------------------
CARE assigns 'CARE B' rating to the bank facilities of Gupta
Foods.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 9.50 CARE B Assigned
Rating Rationale
The rating assigned to the bank facilities of Gupta Foods (GF) is
primarily constrained by its modest scale of operations with low
net worth base, working capital intensive nature of operations,
weak financial risk profile marked by low profitability margins,
highly leveraged capital structure and weak debt coverage
indicators. The rating is further constrained by GF's presence in
a highly fragmented industry characterized by intense competition
and susceptibility of margins to fluctuations in raw material
prices. Availability of agro commodities are highly dependent on
the climatic conditions which lead to volatility in raw material
prices. The rating, however, derives comfort from the experience
of the partners in the agro processing industry and favourable
processing location.
Going forward, the ability of the firm to profitably scale-up its
operations along with improvement in the solvency position and
efficient management of the working capital requirements will be
the key rating sensitivities.
Gupta Foods (GF) was established as a partnership firm in 2008
with Mr Naveen Gupta, Mr Avinash Gupta, Mrs Anita Gupta and Mrs
Shruti Gupta as the partners sharing profit and loss in equal
proportion. The firm is engaged in processing of paddy at its
manufacturing facility located in Tarn Taran, Punjab, having an
installed capacity of processing 20,000 metric tonnes per annum
(MTPA) of paddy to rice as on March 31, 2015. GF procures paddy
directly from the local grain markets through commission agents
located in Punjab and sells its products i.e. Basmati and Non-
Basmati rice in Punjab and Delhi through a network of agents under
brand name "Radhika GF".
In FY15 (refers to the period April 1 to March 31), GF had
achieved total operating income of INR20.01 crore with PAT of
INR0.12 crore as compared with total operating income of INR12.25
crore and PAT of INR0.09 crore in FY14. In 7MFY16 (Provisional),
the firm achieved total operating income of INR13
crore.
I.P. COMPLEX: CRISIL Reaffirms 'B' Rating on INR35MM Loan
---------------------------------------------------------
CRISIL's rating on the long-term bank facilities of I.P. Complex
Private Limited (IPCPL) continues to reflect the company's weak
financial profile because of a high total outside liabilities to
tangible net worth (TOLTNW) ratio and below-average debt
protection metrics, and a small scale of operations in the
intensely competitive automobile dealership market. These rating
weaknesses are partially offset by the extensive industry
experience of IPCPL's promoters.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 10 CRISIL B/Stable (Reaffirmed)
Electronic Dealer
Financing Scheme
(e-DFS) 35 CRISIL B/Stable (Reaffirmed)
Term Loan 15 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes IPCPL will continue to benefit over the medium
term from its promoters' extensive industry experience and their
financial support. The outlook may be revised to 'Positive' in
case of a significant and sustainable increase in scale of
operations along with healthy profitability, leading to larger-
than-expected cash accrual and a better capital structure.
Conversely, the outlook may be revised to 'Negative' in case of
less-than-expected cash accrual or any debt-funded capital
expenditure, resulting in further weakening of the company's
capital structure, or an increase in working capital requirement,
leading to stretched liquidity.
Update
Operating revenue was INR320 million in 2014-15 (refers to
financial year, April 1 to March 31) and INR285.10 million in the
eight months through November 2015. Revenue is expected to remain
at around INR400 million per annum over the medium term. Operating
margin was lower-than-expected at 2.12 percent in 2014-15, but is
likely to improve to 2.50-2.75 percent over the medium term.
Financial risk profile remains weak because of a small net worth
of INR4.4 million as on March 31, 2015, a decline from INR6.4
million a year earlier. The decline was driven by a net loss of
INR2.0 million in 2014-15. Due to a small net worth and higher
dependence on external funding, the TOLTNW ratio was high at 24.16
times as on March 31, 2015, but expected to improve to around
18.00 times over the medium term on account of healthy accretion
to reserves. The company's interest coverage ratio was also weak
at 0.7 time in 2014-15, but is expected to improve and remain at
1.1-1.3 times over the medium term.
Liquidity is expected to remain average due to working capital-
intensive operations as indicated by high inventory of 94 days as
March 31, 2015. Inventory days were higher mainly due to a spill
over of some sales to the next financial year. However, in
general, the company maintains inventory of 50-60 days. Bank
limit utilisation has remained low at around 50 per cent over the
12 months through November 2015 due to support from promoters in
the form of unsecured loans as well as credit period of 10-12 days
from the company's principal, Honda Car India Ltd (HCIL); this
provides sufficient cover for working capital requirement.
Incorporated in 2009, IPCPL is an exclusive dealer for the
passenger cars of HCIL in the Varanasi region of Uttar Pradesh.
Commercial operations started in February 2014. Operations are
managed by Mr. Sachin Kumar Talwar. The company has a showroom in
Varanasi, which is run under the name of Hans Honda.
INTERLINK FOODS: Ind-Ra Assigns 'IND BB+' LT Issuer Rating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Interlink Foods
Private Limited (ILFPL) a Long-Term Issuer Rating of 'IND BB+'.
The Outlook is Stable. The agency has also assigned IFPL's
INR150.0 million fund-based limits a Long-term 'IND BB+' rating
with Stable Outlook and a Short-term 'IND A4+' rating.
KEY RATING DRIVERS
The ratings reflect ILFPL's moderate scale of operations and lack
of operational track record as it has started operations only from
FY15. In FY15, it booked revenue of INR766.48 milion. The ratings
are further constrained by the company's weak debt to equity ratio
of 5.52x in FY15.
The ratings factor in ILFPL's comfortable liquidity position as
evident from its average working capital utilisation of 80.27%
during the 11 months ended January 2016.
The ratings are supported by the more than 10 years of experience
of its directors in the processing of ready-to-eat and weaning
food. Also, the company receives support from its holding
companies namely Devesh Foods & Agro Products Private Limited and
Vintage Agro Products Private Limited who are engaged in the same
line of business.
The ratings are further supported by strong EBITDA margins and
credit metrics. In FY15, ILFPL had EBITDA margins of 20.60%, net
financial leverage (total adjusted net debt/operating EBITDAR) of
2.40x and interest coverage (operating EBITDA/gross interest
expense) of 7.58x in FY15.
RATING SENSITIVITIES
Positive: A significant improvement in the top line while the
credit metrics being maintained or improving will lead to a
positive rating action.
Negative: A decline in the revenue leading to deterioration in the
overall credit metrics will be lead to a negative rating action.
ILFPL is engaged in the processing of ready-to-eat and weaning
food under Integrated Child Development Scheme Projects in the
state of Jharkhand. The 120,000mtpa manufacturing facility of
ILFPL is located at Patratu Industrial Area, Ramgarh, Jharkhand.
ION HEALTHCARE: Ind-Ra Assigns 'IND BB-' LT Issuer Rating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned ION Healthcare
Private Limited (IHPL) a Long-Term Issuer Rating of 'IND BB-'. The
Outlook is Stable.
KEY RATING DRIVERS
The ratings reflect IHPL's small scale of operations, moderate
profitability and weak credit metrics. FY15 financials indicate
revenue of INR57.87m, EBITDA margins of 12.91%, net leverage
(total Ind-Ra adjusted net debt/operating EBITDAR) of 5.54x and
gross interest cover (operating EBITDA/gross interest expense) of
1.84x. The ratings also factor in the risks associated with
volatility in raw material procurement cost.
The ratings also factor in the company's comfortable liquidity
with its use of the working capital facilities being around 60.78%
during the seven months ended January 2016.
Ind-Ra expects an improvement in IHPL's credit metrics and
liquidity position by FYE16. The net financial leverage is likely
to improve to around 4.19x at FYE16 because of an increase in
absolute EBITDA. The working capital cycle is also likely to
stabilise at 103 days.
The ratings, however, derive strength from over 10 years of
experience of IHPL's promoters in the drug manufacturing industry.
The ratings are further supported by the entity's strong
relationships with its customers and suppliers.
RATING SENSITIVITIES
Negative: Any further deterioration in the EBITDA margins leading
to sustained deterioration in the credit metrics could be negative
for the ratings.
Positive: Substantial top line growth with an improvement in the
EBITDA margins leading to a sustained improvement in the credit
metrics could be positive for the ratings.
IHPL was incorporated in 2004 under the aegis of Mr. Rakesh Dutt;
it was taken over by Mr. Sanjeev Aggrawal and Mrs. Vaishali
Aggarwal in February 2015. IHPL manufactures tablets, capsules and
liquid syrups. The company's manufacturing units are located in
Solan (Himachal Pradesh).
IHPL's ratings:
-- Long-Term Issuer Rating: assigned 'IND BB-'/Stable
-- INR32.00 milion term loans: assigned 'IND BB-'/Stable
-- INR90.00 milion fund-based limit: assigned 'IND BB-
'/Stable/'IND A4+'
-- INR20.00 milion non-fund-based limit: assigned 'IND A4+'
JMV ISPAT: CRISIL Assigns 'B' Rating to INR35MM Term Loan
---------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of JMV Ispat Private Limited (JMV).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 30 CRISIL B/Stable
Cash Credit 35 CRISIL B/Stable
Cash Term Loan 35 CRISIL B/Stable
The rating reflects JMV's modest scale of operations in the highly
competitive steel industry, vulnerability of its operating margin
to volatility in raw material prices, and large working capital
requirements. These weaknesses are partially offset by promoters'
extensive experience in the steel industry.
Outlook: Stable
CRISIL believes JMV will continue to benefit over the medium term
from its promoters' extensive industry experience. The outlook may
be revised to 'Positive' in case of significant and sustained
growth in revenue and profitability, and improvement in working
capital cycle. Conversely, the outlook may be revised to
'Negative' if JMV's revenue or profitability declines, or working
capital cycle lengthens, leading to deterioration in financial
risk profile.
JMV was incorporated in 2011 by Mr. Aslam Qureshi and Mr. Niraj
Saini. The company manufactures mild steel ingots at its unit in
Haridwar (Uttarakhand).
JUMBO BAG: CRISIL Reaffirms B+ Rating on INR345MM Cash Loan
-----------------------------------------------------------
CRISIL's ratings on the bank facilities of Jumbo Bag Limited (JBL)
continues to reflect JBL's subdued operating efficiencies leading
to below-average financial risk profile marked by weak debt
protection metrics. These rating weaknesses are partially offset
by the company's established regional market position in the
Flexible Intermediate Bulk Containers (FIBC) segment.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 64 CRISIL A4 (Reaffirmed)
Cash Credit 345 CRISIL B+/Stable (Reaffirmed)
Foreign Bill
Discounting 57.5 CRISIL B+/Stable (Reaffirmed)
Standby Line of
Credit 10 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that JBL will maintain its established position in
the FIBC market over the medium term, supported by its established
relationships with customers and suppliers. The outlook may be
revised to 'Positive' in case of significant improvement in the
company's scale of operations and profitability, or substantial
equity infusion, leading to a better financial risk profile.
Conversely, the outlook may be revised to 'Negative' if JBL's
accruals decline, or if it undertakes a large debt-funded capital
expenditure programme, or if its working capital management
deteriorates, resulting in weakening of its financial risk
profile.
JBL, established in 1990 in Chennai, manufactures FIBCs, also
known as jumbo bags. The company is a part of Bliss group and is
promoted by Mr. G P N Gupta.
JBL reported a net loss of INR38.1 million on operating income of
INR937.8 million for 2014-15 (refers to financial year, April 1 to
March 31), against net loss of INR22.1 million on operating income
of INR912.2 million for 2013-14.
KANKAI PIPES: CARE Revises Rating on INR3.79cr LT Loan to B+
------------------------------------------------------------
CARE revises the LT rating and reaffirms st rating assigned to the
bank facilities of Kankai Pipes & Fittings Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 3.79 CARE B+ Revised from
CARE B
Long-term/Short-term Bank 3.00 CARE B+/CARE A4 Long
Facilities term rating revised
from CARE B and
Short term rating
Reaffirmed
Short-term Bank Facilities 2.00 CARE A4 Reaffirmed
Rating Rationale
The revision in the long-term rating assigned to the bank
facilities of Kankai Pipes & Fittings Private Limited (KPFPL) was
primarily on account of increase in the scale of operations of
KPFPL during FY15 (refers to the period April 1 to March 31) with
transition from loss to profit. The ratings continue to derive the
strength from the experienced promoters in the industry.
The ratings, however, continue to remain constrained on account of
its presence in the highly fragmented and competitive polyvinyl
chloride (PVC) pipe industry, highly leveraged capital structure,
moderate debt coverage indicators, modest liquidity indicators and
susceptibility of profit margin to fluctuations in the raw
material prices.
KPFPL's ability to increase its scale of operations along with
successful implementation of on-going project along with
improvement in the profit margins and capital structure would be
the key rating sensitivities.
Rajkot-based (Gujarat) KPFPL was incorporated in October 2012 by
Mr Kalpesh Meghani, Mr Mahendra Talpada and Mr Dhaval Ghadiya.
KPFPL is engaged in the manufacturing of plastic pipes &
fittings (mainly cPVC pipes & fittings). KPFPL undertook
implementation of green field project for setting up plant for
manufacturing of plastic pipes & fittings with an annual installed
capacity of 2,400 Metric Tons Per Annum (MTPA). KPFPL commenced
commercial production from August 2013. The products manufactured
by KPFPL are used in residential, commercial as well as industrial
units.
KEVIN METPACK: CRISIL Reaffirms 'B' Rating on INR410MM LT Loan
--------------------------------------------------------------
CRISIL's rating on long-term bank loan facilities of Kevin Metpack
Private Limited (KMPL) continues to reflect the company's small
scale of operations in the intensely competitive packaging
industry, sizeable fixed overheads resulting in net losses, and
susceptibility of its operating margin to volatility in raw
material prices. These rating weaknesses are partially offset by
financial and business support being received from affiliates.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 20 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 410 CRISIL B/Stable (Reaffirmed)
Term Loan 20 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes KMPL will continue to benefit over the medium term
from the support of its affiliates. The outlook may be revised to
'Positive' in case of substantial offtake and profitability,
thereby significantly increasing its cash accrual. Conversely, the
outlook may be revised to 'Negative' if the company's financial
risk profile weakens most likely because of low cash accrual, or
stretched working capital requirement, or sizeable debt-funded
capital expenditure (capex).
Update
Operating income is expected to remain at INR100-150 million in
2015-16 (refers to financial year, April 1 to March 31) against
INR110 million in 2014-15. Due to several unforeseen events,
though manufacturing lines have been installed, ramp-up of
operations has been delayed. Full scale operations are now
expected to commence by April 2016. Currently, out of three
installed manufacturing lines, only one is operational at 10
percent of capacity.
KMPL is expected to continue to report operational losses in 2015-
16 but breakeven is expected once ramp-up of operations is
achieved in 2016-17. Liquidity continues to be supported by
unsecured loans/equity infusion by promoters. Dependence on
support from affiliates is likely to continue for repayment of the
pending term loan instalment due for the quarter ending March 31,
2016. Outstanding unsecured loans from promoters and affiliates as
on March 31, 2015, were about INR299.6 million. Average bank limit
utilisation was about 67 percent in the 12 months through November
2015.
Capex of around INR120 million is expected in 2016-17, to be
funded by a term loan and promoter funds, to improve applicability
of the company's product. The actual funding tie-up and eventual
ramp up of operations will remain key rating sensitivity factors.
Founded in 2007 by Mr. Vikas Malu, KMPL set up a facility to
manufacture metallised cast polypropylene and polyethylene
terephthalate shrink film, and thermoforming grade polyester for
the packaging industry.
KNOWLEDGE VISTAS: CARE Reaffirms 'D' Rating on INR14cr LT Loan
--------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Knowledge Vistas Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 14 CARE D Reaffirmed
Rating Rationale
The reaffirmation of the rating assigned to the bank facilities of
Knowledge Vistas Limited (KVL) takes into account the ongoing
delays in servicing of interest obligations on the term loan. The
rating continues to be constrained due to noncommencement of
operations of school and pending completion of hostel and sports
facilities and consequent dependence on the promoter company -
Lavasa Corporation Limited (LCL, rated CARE D for its bank
facilities) for repayment of its interest obligations.
KVL's ability to commence operations of the institute and timely
servicing of interest obligations and repayment of principal
payments commencing from FY17 (refers to the period April 1
toMarch 31) are the key rating sensitivities.
Knowledge Vistas Ltd. (erstwhile GDST Oxford International School
Limited) was incorporated on February 24, 2009. It was floated as
a Special Purpose Vehicle (SPV) for establishing, developing and
operating a school in Lavasa. The school is proposed to be
established as a co-educational, fee paying school for 1,200
pupils of which up to 70% of the pupils would be boarding. The
school is jointly owned by Educomp Infrastructure and School
Management Ltd (51%) & Lavasa Corporation Ltd (49%).
During FY15 (refers to the period April 1 to March 31), EHL
reported a net loss of INR2.69 crore on nil total operating
income vis-a-vis net loss of INR0.84 crore and total operating
income of INR0.02 crore in FY14.
KURUNJI AGRO: CRISIL Assigns 'D' Rating to INR70MM LT Loan
----------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the long-term bank
facilities of Kurunji Agro Product (KAP).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 30 CRISIL D
Long Term Loan 70 CRISIL D
The rating reflects instances of delay by KAP in servicing its
term debt, driven by weak liquidity owing to early stage of
operations. The rating also factors in high gearing and modest
networth, which constrain financial risk profile. However, the
company benefits from its promoters' extensive experience in the
mango pulp and other fruit trading industries.
Set up in 2009 and commenced operations in 2013, KAP is a Dindigul
(Tamil Nadu)-based firm manufacturing mango pulp. The firm is set
up by Mr. S Palanisamy, Mr. S A Kadar and Mr. A Muruganandham.
M.G. INDUSTRIES: Ind-Ra Assigns 'IND B+' LT Issuer Rating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned M.G. Industries
(MG) a Long-Term Issuer Rating of 'IND B+'. The Outlook is Stable.
KEY RATING DRIVERS
The ratings reflect MG's tight liquidity and moderate credit
profile. The company overutilised its working capital limits for
up to 20 days on four instances during the 12 months ended
November 2015. Unaudited FY15 financials indicate revenue of
INR139 milion (FY14: INR125 milion), net leverage of 3.4x (4.3x),
EBITDA interest cover of 2.2x (1.8x) and EBITDA margins of 9.2%
(8.9%). The ratings also factor in MG's partnership form of
organisation.
However, the ratings benefit from the company's long-standing
relationship with its customers for over 25 years and the
promoters' more than three decades of experience in the auto
components manufacturing industry.
RATING SENSITIVITIES
Positive: Increased scale of operations along with an improvement
in the liquidity will lead to a positive rating action.
Negative: Deterioration in the EBITDA margins as well as the
liquidity profile will lead to a negative rating action.
MG was incorporated in 1980. The firm manufactures fuel injector
components, engine body components (child parts of engine),
pneumatic components (air components) and construction equipment.
MG's ratings:
-- Long-Term Issuer Rating: assigned 'IND B+', Outlook Stable
-- INR19.1 million long term loans: assigned 'IND B+'/Stable
-- INR35.5 million fund-based facilities: assigned 'IND
B+'/Stable/'IND A4'
-- INR5 million non-fund-based facilities: assigned 'IND A4'
MANJUSHREE INNOVATIONS: CRISIL Assigns B+ Rating to INR300M Loan
----------------------------------------------------------------
CRISIL's has assigned its 'CRISIL B+/Stable' rating to the long-
term bank facilities of Manjushree Innovations Private Limited
(MIPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 50 CRISIL B+/Stable
Term Loan 300 CRISIL B+/Stable
The rating reflects MIPL's exposure to risks related to
implementation and stabilisation of its ongoing project, and its
weak expected financial risk profile owing to the aggressive
funding mix for the project. These rating weaknesses are partially
offset by the extensive experience of the company's promoters in
the flexible packaging business.
Outlook: Stable
CRISIL believes the extensive industry experience of the promoters
will help the company to stabilise operations at its upcoming
plant in a timely manner. The outlook may be revised to 'Positive'
if the ongoing project is successfully implemented as per schedule
and within the budgeted cost, and generates sufficient cash
accrual, as expected. Conversely, the outlook may be revised to
'Negative' in case of significant time and cost overruns in
project completion, lower-than-expected capacity utilisation, or a
significantly stretched working capital cycle, resulting in
deterioration in the financial risk profile, particularly
liquidity.
MIPL was incorporated in May 2011, promoted by Guwahati-based Mr.
Shekhar Agarwal, Mr Ranjit Agarwal, Mr. Puneet Agarwal, and Mr.
Dinesh More. The company is setting up a plant to manufacture
flexible packaging material such as multilayer films, and laminate
rolls/pouches. It is constructing an integrated plant to
manufacture films from granules and then manufacture laminate
rolls/pouches from films.
MODERN STAGE: CRISIL Assigns 'B' Rating to INR40.5MM Cash Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Modern Stage Service. The ratings reflect
group's volatile scale of operations and operating profitability,
and high working capital requirements, constraining the firm's
liquidity. These rating weaknesses are partially offset by the
extensive experience of partners and the firm's average financial
risk profile.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 2 CRISIL B/Stable
Bank Guarantee 17.5 CRISIL A4
Cash Credit 40.5 CRISIL B/Stable
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of MSS and Modern Stage Service Projects
(MSSP). This is because both the firms, together referred to as
the MSS group, are in the same business and have considerable
operational linkages.
Outlook: Stable
CRISIL believes the MSS group will continue to benefit from its
partners' extensive industry experience. The outlook may be
revised to 'Positive' in case of sustained and significant
increase in revenue and profitability leading to higher cash
accrual, and considerable improvement in working capital
management. On the contrary, the outlook may be revised to
'Negative' if revenue and profitability decline steeply due to
intense competition, or if the group undertakes a larger-than-
expected debt-funded capital expenditure programme, or if its
working capital cycle lengthens, leading to deterioration in
liquidity.
MSS, a partnership concern established in 1994, installs stage
lights, and video and audio systems for government and private
organisations. Operations are managed by partners Mr. Varinder
Kumar Wadhwa and Mr. Davinder Kumar Wadhwa.
MSSP, set up in 2012, is engaged in the same business, and
executes small projects.
The group's book profit and net sales were INR4.5 million and
INR148.6 million, respectively, for 2014-15 (refers to financial
year, April 1 to March 31), against INR5.9 million and INR204.2
million, respectively, for 2013-14.
P. K. INDUSTRIES: CARE Assigns B+ Rating to INR4cr LT Loan
----------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank
facilities of P. K. Industries.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 4 CARE B+ Assigned
Short-term Bank Facilities 6 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of P. K. Industries is
constrained on account of proprietorship nature of constitution,
small scale of operations in the competitive transformer
industry, high working capital intensity of operations, its
leveraged capital structure and weak debt coverage indicators.
The ratings, however, derive comfort from long experience of
proprietor into the transformer industry, long-term association
with reputed customers and moderate level of margins. The ability
of PKI to increase its scale of operations by executing on hand
orders within stipulated timelines coupled with improvement in
profit margins, capital structure and efficient working capital
management are the key rating sensitivities.
Bhopal-based (Madhya Pradesh) PKI was formed in 2000 as a
proprietorship firm by Mr Prashant K Gupta. The firm is ISO 9001:
2008 certified entity and it is engaged into the business of
manufacturing of power and distribution transformers. PKI
manufactures transformers from capacity of 5 Kilo Volt
Ampere (KVA) to 5 Mega Volt Ampere (MVA) and supplies the same to
State Electricity Boards (SEB's) in Madhya Pradesh and Rajasthan
and other private customers who take contract from government
departments.
During FY15, PKI reported a total operating income (TOI) of
INR7.80 crore and PAT of INR0.31 crore as against that of TOI of
INR6.77 crore and PAT of INR0.26 crore during FY14. During 7MFY16
(Prov.), PKI has achieved a TOI of INR6.06 crore.
P. V. RAMANAIAH: CRISIL Reaffirms B+ Rating on INR120MM Loan
------------------------------------------------------------
CRISIL's ratings on bank facilities of P. V. Ramanaiah and Company
(PVR) continue to reflect PVR's modest scale of operations in the
intensely competitive construction industry, high degree of
geographic and customer concentration in its revenue profile, and
its frequent capital withdrawals resulting in small net-worth and
limiting its financial flexibility. These rating weaknesses are
partially offset by the extensive experience of PVR's partners in
the construction industry, and its efficient working capital
management.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 200 CRISIL A4 (Reaffirmed)
Cash Credit 120 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that PVR will continue to benefit over the medium
term from the extensive industry experience of its partners. The
outlook may be revised to 'Positive' if there is a substantial and
sustained improvement in the firm's scale of operations, while it
maintains its profitability margins, or there is a sizeable
increase in its net-worth on the back of sizeable capital
additions from its partners. Conversely, the outlook may be
revised to 'Negative' in case of a steep decline in the firm's
profitability margins, or significant deterioration in its capital
structure caused most likely by a stretch in its working capital
cycle.
PVR was established in 1992 by Mr. P Venkata Ramaniah and his
family members. The firm undertakes excavation work for dams and
irrigation canals (primarily in Maharashtra), and railway track
work (for South-Eastern Railways). The firm is based in Nellore,
Andhra Pradesh. The firm currently has five partners - Mr. Venkata
Ramaniah, Mr. Venkata Ramanamma, Mr. Sridhar, Mrs. Srilakshmi, and
Mrs. Sundaraiah.
For 2014-15, PVR reported profit after tax (PAT) of INR23 million
on net sales of INR554 million against PAT of INR 25 million on
net sales of INR594 million for 2013-14.
PARAMOUNT SEAFOODS: CRISIL Reaffirms B+ Rating on INR15MM Loan
--------------------------------------------------------------
CRISIL's ratings on the bank facilities of Paramount Seafoods
(Paramount) continue to reflect its below-average financial risk
profile, marked by weak debt protection metrics and modest net
worth. The ratings also factor in the firm's susceptibility to
volatility in raw material prices and to fluctuations in foreign
exchange rates. These rating weaknesses are partially offset by
the extensive experience of Paramount's promoters in the seafoods
industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Foreign Bill
Discounting 45 CRISIL A4 (Reaffirmed)
Packing Credit 30 CRISIL A4 (Reaffirmed)
Proposed Term Loan 15 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that Paramount will continue to benefit over the
medium term from its promoters' experience in the seafoods
industry. The outlook may be revised to 'Positive' if the firm
significantly scales up its operations and improves its operating
profitability leading to sizeable increase in its cash accruals,
while also strengthening its capital structure. Conversely, the
outlook may be revised to 'Negative' if Paramount reports decline
in cash accruals or undertakes any large debt-funded capital
expenditure (capex). Weakening in working capital management or
significant capital withdrawal by the promoters, resulting in
deterioration in financial risk profile, may also result in the
outlook being revised to 'Negative'.
Paramount, set up in 2011, exports frozen marine products. The
firm is promoted by Mr. A M Gafoor and his family.
PAWAN AUTOWHEELS: CARE Assigns 'B' Rating to INR11.15cr LT Loan
---------------------------------------------------------------
CARE assigns 'CARE B' rating to the bank facilities of Pawan
Autowheels Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 11.15 CARE B Assigned
Rating Rationale
The rating assigned to the bank facilities of Pawan Autowheels
Private Limited (PAPL) are primarily constrained by its small and
declining scale of operations, low profitability margins,
leveraged capital structure and elongated inventory holding. The
rating is further constrained by geographical concentration risk,
intense competition amongst distributors and from alternate brands
and the rating also take cognizance of the fortunes linked to the
performance of Hyundai Motors India Ltd (HIPL).
The ratings, however, derives strength from experienced partners
in auto dealership business and favorable industry prospects for
passenger vehicles in the long-term.
Going forward, the ability of PAPL to increase its scale of
operations along with improvement in profitability margins and
capital structure shall be the key ratings sensitivities.
Ghaziabad-based (Uttar Pradesh), PAPL incorporated in March, 2009
is promoted by Mr Ashok Kumar Garg and his son Mr Shobhit Garg.
The company commenced its commercial operations from April
2011. Since inception, the company has entered into an authorized
dealership agreement with Hyundai Motors India Ltd (HMIL). At
present, PAPL's product portfolio consists of popular Hyundai
cars like Eon', 'i10', 'i20', 'Creta', 'Verna' and 'Elantra in
different category and colours. It is operating as 3S facility
'Sales, spares and service'.
PAPL receives a small portion of its revenue from finance and
insurance companies in the form of commission for bundled
marketing of their products.
The company has one associate concern namely "Suman Autos" (CARE
BB) which is an authorized dealer of Bajaj Auto Ltd for two and
three wheelers since 1998.
PAYYANUR MEDICAL: CRISIL Reaffirms 'B' Rating on INR180MM Loan
--------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Payyanur
Medical Service and Research Centre Private Limited (PMSRC)
continues to reflect exposure of the company's project to timely
implementation and stabilisation risks. These weaknesses are
partially offset by the extensive industry experience of PMSRC's
management and limited reliance on external debt to fund ongoing
project.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 15 CRISIL B/Stable (Reaffirmed)
Term Loan 180 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes PMSRC will continue to benefit over the medium
term from limited presence of large multi-speciality hospitals in
Payyanur, Kerala, and low reliance on external debt to fund
project. The outlook may be revised to 'Positive' in case of
timely completion of project within budgeted cost and faster-
tthan-expected increase in hospital's revenue and accrual.
Conversely, the outlook may be revised to 'Negative' if debt-
servicing ability is adversely impacted by time or cost overruns,
or if ramp-up in revenue and accrual is slower than expected.
Incorporated in 2011, PMSRC is setting up a multi-speciality
hospital, Anaamaya Medical Institute, in Payyannur. Project
construction commenced in November 2011 and is likely to be
completed by March 2016. The company has 12 directors, 9 of whom
are experienced doctors from various medical faculties. Dr. M
Haridas, an experienced pediatrician in Payyanur, is PMSRC's
chairman.
PERIWAL POLYMERS: CARE Reaffirms B+ Rating on INR4cr LT Loan
------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Periwal Polymers Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 4 CARE B+ Reaffirmed
Long-term/Short-term Bank 3 CARE B+/CARE A4
Facilities Reaffirmed
Rating Rationale
The ratings assigned to the bank facilities of Periwal Polymers
Private Limited (PPPL) continue to remain constrained by its small
scale of operations with low net-worth base, low profitability
margins, leveraged capital structure and weak coverage indicators.
The ratings are further constrained by presence in highly
competitive and fragmented industry with low entry barriers and
susceptibility of profitability margins to fluctuation in the raw
material prices.
However, the ratings draw comfort from the experienced promoters
with long track record of operations and moderate operating cycle.
Going forward, the PPPL's ability to increase its scale of
operations coupled with improvement in the profitability margins
and capital structure shall be the key rating sensitivities.
Alwar-based (Rajasthan) PPPL, is a private limited company which
was incorporated in 1994, by Mr B.L. Periwal, Mr Ghanshyam Periwal
and Ms Sarita Periwal. Later on in 2000, Mr B.L. Periwal resigned
from the company. Currently, Mr Ghanshyam Periwal holds the
Managing director position and looks after the overall operations
of the company. PPPL is engaged in manufacturing of PVC granules
with an installed capacity of 7,200 TPA per annum as on March 31,
2015. The product manufactured by company finds its application in
cable industry (for insulation). It sells its products mainly in
Northern India to cables manufacturer. The company procures the
raw materials, ie, resin from Reliance Industries Limited, while
plasticizers and stabilizers are procured locally from traders and
wholesalers.
PPPL achieved a total operating income (TOI) of INR35.62 crore
with PBILDT and profit after tax (PAT) of INR1.20 crore and
INR0.17crore, respectively, in FY15 (refers to the period April 1
to March 31) as against TOI of INR37.81 crore with PBILDT and PAT
of INR1.26 crore and INR0.18 crore, respectively, in FY14. During
9MFY16, the company has achieved total operating income of
INR30.00 crore.
PRABHATAM ADVERTISING: Ind-Ra Withdraws IND BB+ LT Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Prabhatam
Advertising Pvt. Ltd.'s (PAPL) 'IND BB+(suspended)' Long-Term
Issuer Rating.
The ratings have been withdrawn due to the lack of adequate
information. Ind-Ra will no longer provide ratings or analytical
coverage for PAPL. Ind-Ra suspended PAPL's ratings on 16 June
2015.
PAPL's ratings are as follows:
-- Long-Term Issuer Rating: 'IND BB+(suspended)'; rating
withdrawn
-- INR241.1 milion long-term bank loans: 'IND BB+(suspended)';
rating withdrawn
-- INR260 milion fund-based working capital limits: 'IND
BB+(suspended)'/'IND A4+(suspended)'; ratings withdrawn
-- INR50 milion non-fund-based working capital limits: 'IND
BB+(suspended)'/'IND A4+(suspended)'; ratings withdrawn
PRATHYUSHA EDUCATIONAL: Ind-Ra Withdraws LT 'IND D' Rating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn the Long-term
'IND D(suspended)' rating on Prathyusha Educational Trust's (PET)
INR133.32 milion bank loans and INR20 milion working capital
facility.
The rating has been withdrawn due to lack of adequate information.
Ind-Ra will no longer provide ratings or analytical coverage for
PET.
Ind-Ra had suspended PET's rating on June 12, 2015.
R L AVIATION: CRISIL Assigns B+ Rating to INR40MM Overdraft Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of R L Aviation Services Private Limited
(RLPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Overdraft Facility 20 CRISIL B+/Stable
Long Term Bank
Facility 9 CRISIL B+/Stable
Bank Guarantee 51 CRISIL A4
Drop Line Overdraft
Facility 40 CRISIL B+/Stable
The ratings reflect RLPL's small scale of operations, large
working capital requirement, and constrained liquidity because of
advances to group companies. These weaknesses are partially offset
by promoters' extensive experience in the travel and tourism
industry, established and longstanding relationships with
airlines, and high return on capital employed.
Outlook: Stable
CRISIL believes RLPL will continue to benefit over the medium term
from its promoters' extensive industry experience and strong
association with airlines. The outlook may be revised to
'Positive' if revenue increases significantly while profitability
remains stable, leading to higher-than-expected cash accrual and
improvement in financial risk profile and liquidity. Conversely,
the outlook may be revised to 'Negative' if liquidity weakens
significantly on account of increased advances to group companies
or stretch in working capital requirement, or if financial risk
profile weakens because of decline in topline and profitability.
RLPL, incorporated in 2008, is an authorised general sales agent
(GSA) for Oman Air and Asiana Airlines for passenger tickets and
cargo in India. RLPL is promoted and managed by Mr. Chetan Gupta.
In 2014-15 (refers to financial year, April 1 to March 31), RLPL's
book profit was INR5.98 million on net sales of INR81.87 million,
against book profit of INR5.14 million on net sales of INR77.59
million for 2013-14.
RAGHAV INDUSTRIES: CRISIL Reaffirms B+ Rating on INR289.3MM Loan
----------------------------------------------------------------
CRISIL's rating on the long-term bank loan facilities of Raghav
Industries Limited (RIL) continues to reflect the company's modest
financial risk profile marked by average debt protection metrics
and working capital-intensive operations. These rating weaknesses
are partially offset by the extensive experience of its promoter
in the textile industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 289.3 CRISIL B+/Stable (Reaffirmed)
Long Term Loan 124.8 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 69.6 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes RIL will continue to benefit over the medium term
from its promoter's industry experience and diversified product
mix. The outlook may be revised to 'Positive' in case of
significant improvement in revenue and profitability, or sizeable
equity infusion, thus strengthening the financial risk profile.
Conversely, the outlook may be revised to 'Negative' in case of
large working capital requirement or debt-funded capital
expenditure, resulting in weakening of liquidity.
RIL, incorporated in 1987, is promoted by Mr. Rajendra Kumar
Kanodia. The company manufactures textile yarn in polyester,
viscose, cotton, and blends of these, and trades in polyester
staple fibre (PSF) and viscose staple fibre.
RAJSHREE EDUCATIONAL: Ind-Ra Withdraws BB Rating on INR540MM Loan
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn the
'IND BB(suspended)' rating on Rajshree Educational Trust's (RET)
INR540 mil. term loan.
The rating has been withdrawn due to lack of adequate information.
Ind-Ra will no longer provide ratings or analytical coverage for
RET. Ind-Ra suspended RET's rating on June 29, 2015.
RANGOLI INDUSTRIES: CRISIL Assigns B- Rating to INR120MM Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to
the bank facilities of Rangoli Industries Private Limited (RIPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 8.8 CRISIL B-/Stable
Bank Guarantee 4.3 CRISIL A4
Cash Credit 120 CRISIL B-/Stable
The ratings reflect RIPL's moderate scale of operations, exposure
to intense competition in the highly fragmented textile industry,
large working capital requirement, and susceptibility to
volatility in raw material prices. These weaknesses are partially
offset by its promoter's extensive experience in the textile
industry, and its healthy financial risk profile because of low
gearing and comfortable debt protection metrics.
Outlook: Stable
CRISIL believes RIPL will continue to benefit over the medium term
from its promoter's extensive industry experience. The outlook may
be revised to 'Positive' if liquidity improves because of higher-
than-expected cash accrual or reduction in working capital cycle.
Conversely, the outlook may be revised to 'Negative' if financial
risk profile and liquidity weakens because of lower-than-expected
cash accrual, sizeable working capital requirement, or larger-
than-expected debt-funded capital expenditure.
RIPL, incorporated in 1996 by Mr. Arun Agarwal, started commercial
production in 1997. It manufactures and trades in air-texturised
yarn and draw-texturised yarn. Its manufacturing plants are in
Surat and Silvassa and have installed capacity of 1200 tonne per
month.
RING FORGINGS: CRISIL Reaffirms 'B+' Rating on INR60MM Loan
-----------------------------------------------------------
CRISIL's ratings on the bank facilities of Ring Forgings Private
Limited (RFPL) continue to reflect the company's modest scale and
working-capital intensive operations, and below-average financial
risk profile because of a modest net worth and high gearing. These
rating weaknesses are partially offset by the extensive experience
of its promoters in the steel-forging business and established
relationship with customers.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 60 CRISIL B+/Stable (Reaffirmed)
Letter of Credit 30 CRISIL A4 (Reaffirmed)
Term Loan 10 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes RFPL will continue to benefit over the medium term
from its promoters' extensive industry experience and their
established relationship with key customers. The outlook may be
revised to 'Positive' in case of higher cash accrual, most likely
driven by significant improvement in scale of operations while
profitability is maintained, leading to a better financial risk
profile. Conversely, the outlook may be revised to 'Negative' if
the financial risk profile, especially liquidity, weakens, most
likely due to a decline in cash accrual, deterioration in working
capital management, or any large, debt-funded, capital
expenditure.
Incorporated in 2005, RFPL manufactures customised products of
open-die forgings and joint-less ring forgings using carbon steel
and alloy steel. Located in Bengaluru, the company primarily
supplies plain shaft and ring gears that go into heavy engineering
machinery such as valves used in gas pipelines. Operations are
managed by Mr. Suresh Bhandari.
SAMRIDDHI RICE: Ind-Ra Assigns BB- Long-Term Issuer Rating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Samriddhi Rice
Mill (P) Ltd. (SRM) a Long-Term Issuer Rating of 'IND BB-'. The
Outlook is Stable.
KEY RATING DRIVERS
The ratings reflect SRM's moderate scale of operations as well as
credit profile. In FY15, revenue was INR348.00 mil. (FY14:
INR262.00 mil.), interest coverage (operating EBITDA/gross
interest expense) was 2.3x (2.3x), net financial leverage (total
Ind-Ra adjusted net debt/operating EBITDAR) was 3.7x (5.7x) and
EBITDA margins were 6.2% (3.9%). The ratings also factor in SRM's
weak liquidity profile as reflected in its full working capital
limit utilization of 100% during the 12 months ended November
2015.
The ratings benefit from the four-decade-long experience of the
company's promoter in the paddy industry.
RATING SENSITIVITIES
Positive: Substantial growth in the revenue leading to an
improvement in the credit metrics will be positive for the
ratings.
Negative: A dip in the operating profitability, leading to
deterioration in the credit metrics will be negative for the
ratings.
SRM was incorporated in 2008 as a private limited company. The
firm is managed by the two directors - Mr. Rishu Chirania and
Mr. Binod Kumar Sekhsaria. The firm purchases paddy from the
farmers and from the mandis and sells directly to the wholesalers.
SRM's ratings:
-- Long-Term Issuer Rating: assigned 'IND BB-'; Outlook Stable
-- INR15 mil. term loan limit: assigned 'IND BB-'; Outlook
Stable
-- INR70 mil. fund-based limit: assigned 'IND BB-'; Outlook
Stable
-- Proposed INR5 mil. fund-based limit: assigned
'Provisional IND BB-'; Outlook Stable
SARTHAK ISPAT: Ind-Ra Hikes LT Issuer Rating to 'IND BB+'
--------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Sarthak Ispat
Private Limited's (SIPL) Long-Term Issuer Rating to 'IND BB+' from
'IND BB-'. The Outlook is Stable.
KEY RATING DRIVERS
The upgrade reflects the improvement in SIPL's credit profile in
FY15 along with the scheduled repayment of debt. In FY15, net
leverage fell to 3.5x (FY14: 3.8x) and interest coverage rose to
2.1x (1.7x). The company's profitability margins improved to 4.8%
during FY15 (FY14: 4.2%).
Liquidity position is also comfortable with average working
capital utilisation of around 95% during the six months ended
December 2015.
However, revenue declined to INR1,564 milion in FY15 from INR1,617
milion in FY14 due to delays in the execution of some orders.
The ratings continue to benefit from the promoters' experience of
more than a decade in the iron and steel business.
RATING SENSITIVITIES
Positive: A positive rating action could result from an increase
in the scale of operations along with a sustained improvement in
the credit metrics.
Negative: A negative rating action could result from a further
decline in the scale of operations along with deterioration in the
credit metrics.
COMPANY PROFILE
SIPL manufactures and supplies premium quality mild steel products
such as mild steel angles, mild steel beams, mild steel channels,
and mild steel round bars. The company uses high-grade billet for
manufacturing these products. SIPL has a 75,000tpa facility in
Raipur, Chattisgarh.
SIPL's ratings:
-- Long-Term Issuer Rating: upgraded to 'IND BB+' from
'IND BB-'; Outlook Stable
-- INR210 milion fund based working capital limits (increased
from INR170 milion): upgraded to 'IND BB+'/Stable from 'IND
BB-'
-- INR77.80 milion term loans (reduced from INR83 milion):
upgraded to 'IND BB+'/Stable from 'IND BB-'
SIPL manufactures and supplies premium quality mild steel products
such as mild steel angles, mild steel beams, mild steel channels,
and mild steel round bars. The company uses high-grade billet for
manufacturing these products. SIPL has a 75,000tpa facility in
Raipur, Chattisgarh.
SCAN STEELS: CARE Lowers Rating on INR160cr LT Loan to 'D'
----------------------------------------------------------
CARE revises the ratings assigned to the bank facilities of
Scan Steels Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 40.07 CARE D Revised from
(Term Loan) CARE B+
Long-term Bank Facilities 160.00 CARE D Revised from
(Cash Credit) CARE B+
Short-term Bank Facilities 32.50 CARE D Revised from
(Non-fund Based) CARE A4
Rating Rationale
The aforesaid revision in the ratings of Scan Steels limited (SSL)
takes into account the on-going delays in servicing of debt
servicing on account of stressed liquidity position of the
company. The ability of the company to improve its liquidity and
regularize its debt servicing will be the key rating sensitivity.
SSL belonging to the Gadodia family of Orissa, is engaged in the
manufacturing of sponge iron (2,10,000 MTPA), ingots (1,16,000
MTPA) & MS rod (58,000 MTPA). SSL also has a captive power
plant of 12 MW, which partially meets its power requirement.
Post-merger with Clarus Infrastructure Realities Ltd. (CIRL), SSL
has become a public limited listed company. The Board comprises a
member from the promoters' family (Mr. Rajesh Gadodia) and
three professionally qualified directors. The Gadodia family owns
a few companies with established presence in steel sector in
Eastern India.
In FY15 (refers to the period between April 1 and March 31), SSL
reported PAT of INR 2.68 crore (loss of INR 19.46 crore in FY14)
on a total operating income of INR 450.17 crore (Rs. 426.42 crore
in FY14). In H1FY16, SSL reported a loss of INR 21.22 crore on a
total operating income of INR 163.78 crore.
SCANIA STEELS: CRISIL Reaffirms 'D' Rating on INR244.3MM Loan
-------------------------------------------------------------
CRISIL's ratings on the bank loan facilities of Scania Steels and
Powers Limited (Scania) continue to reflect instances of delay by
Scania in servicing its term debt; the delays are because of the
company's weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 10 CRISIL D (Reaffirmed)
Cash Credit 244.3 CRISIL D (Reaffirmed)
Funded Interest
Term Loan 68 CRISIL D (Reaffirmed)
Letter of Credit 30 CRISIL D (Reaffirmed)
Proposed Long Term
Bank Loan Facility 56 CRISIL D (Reaffirmed)
Term Loan 237.6 CRISIL D (Reaffirmed)
Working Capital
Term Loan 124.1 CRISIL D (Reaffirmed)
Scania has a weak business risk profile on account of net losses
incurred in 2013-14 (refers to financial year, April 1 to
March 31). Moreover, the company is exposed to risks related to
cyclicality in the steel industry. Scania, however, benefits from
its integrated operations and its management's experience in the
steel industry.
Scania was originally set up by Mr. Satish Garg and his family
(from New Delhi) in 1995 and was engaged in manufacture of sponge
iron. In 2006-07, Mr. Sanjay Gadodia, based in Rourkela (Odisha),
purchased this company. Scania has also established a rolling
mill.
SHAMBHUMAHADEV SUGAR: CARE Cuts Rating on INR28.43cr Loan to B+
---------------------------------------------------------------
CARE revises the ratings assigned to the bank facilities of
Shambhumahadev Sugar & Allied Industries Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 28.43 CARE B+ Revised from
CARE BB-
Rating Rationale
The revision in the rating assigned to the bank facilities of
Shambhu Mahadev Sugar & Allied Industries Limited (SMSAIL) takes
into consideration the deterioration in the financial risk profile
of the company during FY15 (refers to the period April 1 to March
31) marked by decline in the total operating income on account of
management stance of holding inventory in the backdrop of falling
sugar prices, deterioration in the capital structure of the
company and weak debt protection indicators.
The rating continues to derive strength from long and established
track record of the promoters of over two decades in the sugar
industry, qualified and experienced second-tier management and
strategic location of the sugar factory thereby ensuring adequate
cane availability.
The rating is constrained on account of working capital intensive
nature of operations of the company, non-integrated nature of
business operations and presence in the highly cyclical and
seasonal sugar industry.
The ability of SMSAIL to procure the envisaged volume of sugar
cane at the envisaged prices, improve its profitability and debt
protection metrics and effective management of the working capital
are the key rating sensitivities.
SMSAIL was incorporated by Mr Dilip Shankarrao Apet, Chairman and
Managing Director (CMD) in the year 2000 to undertake sugar and
sugar related production at village Havargaon, Taluka Kallam in
Osmanabad District, Maharashtra. The factory was established in
2002 with a sugarcane crushing capacity of 2,500 Tonnes of cane
crushed per day (TCD). SMSAIL has also set up a molasses based
distillery plant in FY12 with an installed capacity of 30 Kilo
liters per day (KLPD), which is to be operational from FY17.
During FY15, SMSAIL registered a total operating income of
INR32.58 crore through sale of 8,999 Metric Tonnes (MT) of sugar
at an average sales realization of INR25,414/MT.
During FY15, SMSAIL reported a PAT of INR0.31 crore (as against
PAT of INR0.06 crore in FY14) on a total operating income of
INR32.58 crore (as against INR82.61 crore in FY14).
SHREE BADRI: CRISIL Assigns 'B+' Rating to INR150MM Cash Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank loan facility of Shree Badri Kedar Udyog Private Limited
(SBKUPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 150 CRISIL B+/Stable
The rating reflects SBKUPL's modest scale of operations in the
highly competitive textile trading business, weak financial risk
profile because of small networth and subdued debt protection
measures, and large working capital requirement. These weaknesses
are partially offset by its promoters' extensive experience in the
textile industry.
Outlook: Stable
CRISIL believes SBKUPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if revenue and profitability
increase substantially, while working capital management remains
efficient, leading to a better financial risk profile. Conversely,
the outlook may be revised to 'Negative' if working capital
requirement increases, leading to deterioration in liquidity, or
if the company undertakes a large debt-funded capital expenditure
programme, weakening its capital structure.
SBKUPL, incorporated in 2011 by Mr. Amit Sarawgi and based in
Ranchi (Jharkhand), trades in fabrics in the domestic market.
Initially, the company was in the civil construction business.
However, the promoters decided to discontinue the construction
business and entered the trading business in 2013-14 (refers to
financial year, April 1 to March 31).
SHREE GANESH: CRISIL Reaffirms 'B' Rating on INR120MM Cash Loan
---------------------------------------------------------------
CRISIL's rating on the bank facilities of Shree Ganesh Rice Mill
(SGRM) continue to reflect its weak financial risk profile and
working-capital-intensive operations.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 120 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 35 CRISIL B/Stable (Reaffirmed)
Warehouse Financing 30 CRISIL B/Stable (Reaffirmed)
The rating also reflects SGRM's small scale of operations, and
susceptibility to volatility in raw material prices and to erratic
rainfall. These rating weaknesses are partially offset by the
extensive experience of SGRM's promoters in, and healthy growth
prospects for, the rice processing industry. CRISIL has treated as
neither debt nor equity, unsecured loans of INR49.7 million
extended to SGRM by its partners in 2014-15 (refers to financial
year, April 1 to March 31). This is because these loans have
nominal interest rates and are subordinated to bank borrowings.
Outlook: Stable
CRISIL believes SGRM will continue to benefit over the medium term
from its promoters' extensive experience in the rice processing
industry. The outlook may be revised to 'Positive' if SGRM scales
up its operations and improves its profitability, leading to
larger-than-expected cash accruals, or its capital structure
improves significantly because of sizeable equity infusion by the
promoters. Conversely, the outlook may be revised to 'Negative' if
any large, debt-funded capital expenditure, or pressure on
profitability considerably weakens financial risk profile.
SGRM is a partnership firm set up by the Sidana brothers in 1994.
The firm mills and processes rice, mainly of the Pusa 1121
variety, at its processing unit at Hamidpur, near Delhi. The firm
does not export directly, but sells the bulk of its produce to
wholesalers and merchant exporters. Operations are managed by key
partner, Mr. Rakesh Kumar Sidana.
SHRI HARI: CRISIL Cuts Rating on INR124.6MM LT Loan to B
--------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Shri Hari Forging Products (SHFP) to 'CRISIL B/Stable' from
'CRISIL B+/Stable', while reaffirming its rating on the short-term
bank facility at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 8.5 CRISIL A4 (Reaffirmed)
Bill Discounting 100 CRISIL B/Stable (Downgraded
from 'CRISIL B+/Stable')
Cash Credit 32.5 CRISIL B/Stable (Downgraded
from 'CRISIL B+/Stable')
Proposed Long Term 124.6 CRISIL B/Stable (Downgraded
Bank Loan Facility from 'CRISIL B+/Stable')
Term Loan 38.5 CRISIL B/Stable (Downgraded
from 'CRISIL B+/Stable')
The downgrade reflects CRISIL's belief that SHFP's financial risk
profile will remain weak over the medium term because of high
leverage and modest debt protection metrics. As on March 31, 2015,
the total outside liabilities to adjusted net worth ratio
increased to 5.9 times from 4.9 times as on March 31, 2014 and is
expected to remain high at around 5 times over the medium term.
Also, debt protection metrics remained modest with interest
coverage ratio of 1.5 times in 2014-15 (refers to financial year,
April 1 to March 31) against 1.7 times in 2013-14. Over the medium
term, interest coverage ratio is expected to remain modest at less
than 2 times over the medium term. The working capital cycle was
stretched significantly in 2014-15, with gross current assets
increasing to over 200 days as on March 31, 2015, from around 150
days as on March 31, 2014. This was driven by an increase in
debtor days to 144 days as on March 31, 2015 from 36 days as on
March 31, 2014. The increase in debtor days was on account of some
customers taking longer to pay. However, business risk profile is
expected to improve gradually over the medium term as the company
is undertaking a capex in 2015-16 to enhance its fabrication
capacity and also install a zinc coating plant.
CRISIL believes SHFP's revenue will increase upon successful
completion and commissioning of the new plants. However, the
working capital-intensive operations are likely to result in weak
financial risk profile over the near term.
The ratings continue to reflect SHFP's modest scale of operations
and exposure to intense competition in the highly fragmented
transmission and distribution products industry, and the modest
financial risk profile because of high leverage and modest debt
protection metrics. These rating weaknesses are partially offset
by the extensive industry experience of the firm's proprietor.
Outlook: Stable
CRISIL believes SHFP's financial risk profile will remain modest
over the medium term marked by high leverage. The outlook may be
revised to 'Positive' in case of a substantial improvement in the
leverage, or scaling up of operations while improving the
profitability. Conversely, the outlook may be revised to
'Negative' if liquidity deteriorates, most likely because of
large, debt-funded working capital requirement or capital
expenditure, or low cash accrual.
SHFP, a sole proprietorship firm set up in 2006, manufactures and
fabricates various components such as transformer structures, top
brackets, and guarding cross arms, which are used in the power
distribution sector. The firm, promoted by Mr. Shrikant Sharma, is
based in Jaipur (Rajasthan).
SN BUILDCON: Ind-Ra Assigns 'IND B' Long-Term Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned SN Buildcon (SNB)
a Long-Term Issuer Rating of 'IND B'. The Outlook is Stable. The
agency has also assigned the company's proposed INR60m long term
loans a 'Provisional IND B' rating with Stable Outlook.
KEY RATING DRIVERS
The ratings reflect the execution risks associated with SNB's
ongoing project - Green Fields which is likely to be completed by
FYE18. The ratings also factor in the company's substantial
dependence on customer advances to fund further construction and
saleability risk as 50% of the project is yet to be booked,
exacerbating the possibility of cash flow mismatches.
The ratings benefit from the promoters' track record of six
completed projects in Pune and more than seven years of experience
in the real estate segment.
RATING SENSITIVITIES
Positive: The sales of flats as planned, leading to strong
visibility of cash flow could lead to a positive rating action.
Negative: Any delays in the completion of the project from the
plan leading to cash flow mismatch could be negative for the
ratings.
SNB is a partnership firm set up in July 2014. It is an SPV formed
specifically for execution of the proposed residential project,
Green Fields at Wadki.
Green Fields is a residential real estate project, with three
buildings with a total of 118 flats. Currently, all the approvals
and excavation work have been completed for one building and slab
work is under progress. 60 flats have been sold as on date.
SRI BALAJI: Ind-Ra Assigns 'IND B+' Long-Term Issuer Rating
-----------------------------------------------------------
India Ratings has assigned Sri Balaji Traders (SBT) a Long-Term
Issuer Rating of 'IND B+'. The Outlook is Stable.
KEY RATING DRIVERS
The ratings reflect SBT's weak credit metrics and tight liquidity
due to the trading nature of business. In FY15, net leverage was
7.6x (FY14: 7.5x) and EBITDA interest cover was 1.2x (1.1x). The
company's fund-based facilities were utilised at an average of
95.6% during the 12 months ended December 2015. SBT has no major
capex plans in the near term which is likely to support the credit
metrics.
Revenue is likely to increase in FY16 on an increase in orders
from existing long standing customers. The company has already
booked revenue of INR140 milion in 9MFY16. EBITDA margin is likely
to remain stable in FY16 with increased orders from the customers.
The ratings are supported by the promoters' over two decades of
experience in the paper trading business.
RATING SENSITIVITIES
Negative: A substantial decline in the profitability leading to
sustained deterioration in the credit metrics will be negative for
the ratings.
Positive: An increase in the scale of operations while maintaining
the profitability leading to a sustained improvement in the credit
metrics will be positive for the ratings.
SBT was established in 1988 by Mr. Sanjeevi and has been in the
paper trading business for more than two decades. The firm trades
all types of paper (45 GSM - 200 GSM).
SBT sources raw material from both domestic and overseas
suppliers. It procures paper based on orders from customers. SBT
has both domestic and export customers. Exports contribute around
60% to the total revenue.
SBT's ratings:
-- Long-Term Issuer rating: assigned 'IND B+', Outlook Stable
-- INR60 million fund-based facilities: assigned 'IND
B+'/Stable/'IND A4'
-- INR30 million non-fund-based facilities: assigned 'IND A4'
SUBHAM ENTERPRISES: CRISIL Assigns B Rating to INR10MM Cash Loan
----------------------------------------------------------------
CRISIL has revoked the suspension of its ratings on the bank
facilities of Subham Enterprises (SE) and has assigned its 'CRISIL
B/Stable/CRISIL A4' ratings to the facilities. CRISIL had, on
January 6, 2016, suspended the ratings as SE had not provided the
necessary information required for a rating review. The company
has now shared the requisite information, enabling CRISIL to
assign ratings to its bank facilities.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 10 CRISIL B/Stable (Assigned;
Suspension Revoked)
Letter of Credit 90 CRISIL A4 (Assigned;
Suspension Revoked)
The ratings reflect SE's below-average financial risk profile
because of a high total outside liabilities to tangible networth
ratio and weak debt protection metrics, and the susceptibility of
its margins to volatility in foreign exchange (forex) rates. These
rating weaknesses are partially offset by the extensive experience
of the firm's promoter in the silk yarn trading industry.
Outlook: Stable
CRISIL believes SE will continue to benefit over the medium term
from its established position in the silk yarn trading industry
and large customer base. The outlook may be revised to 'Positive'
in case of a sustainable increase in scale of operations and
profitability, leading to a better financial risk profile.
Conversely, the outlook may be revised to 'Negative' in case of
lower-than-expected cash accrual, resulting from low revenue, or
adverse forex rate movements, or deterioration in working capital
management.
Set up in 2000 and based in Bengaluru, SE trades in imported silk
yarn. It is a proprietorship firm of Mr. Rakesh Mishra.
SUN HOSPITAL: CRISIL Assigns 'B+' Rating to INR34.9MM Term Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Sun Hospital Private Limited (Sun).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 25 CRISIL B+/Stable
Term Loan 34.9 CRISIL B+/Stable
The rating reflects Sun's working-capital-intensive operations and
geographical concentration in its revenue profile. These rating
weaknesses are partially offset by the company's established
presence in Cuttack, and the promoter's long-standing experience
in the healthcare industry.
Outlook: Stable
CRISIL believes Sun Hospital Private Limited (Sun) will continue
to benefit from its promoters' extensive industry experience over
the medium term. The outlook may be revised to 'Positive' if the
operations are diversified leading to increase in the scale of
operations while maintaining operating profitability or
improvement in the working capital management by the company.
Conversely, the outlook may be revised to 'Negative' if the
financial risk profile deteriorates because of large, debt-funded
capital working capital requirement or decline in revenue and
profitability.
Incorporated in 1978, Sun operates one multi-specialty hospital
and a diagnostic centre in Cuttack, Odisha. The company
established its hospital in Cuttack in 1978 and in 1992 it
commercially opened its diagnostic centre at Cuttack. The day-to-
day operations of the hospitals are looked after by company's
founder promoter-cum-directors Dr. Deepak Mitra and Dr. Vinita
Sawhney.
SUNRISE MARKETING: CRISIL Reaffirms 'B+' Rating on INR10MM Loan
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Sunrise Marketing
Agents (SMA) continue to reflect the firm's below-average
financial risk profile because of high total outside liabilities
to tangible networth ratio and modest networth, small scale of
operations, and low profitability due to trading business.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 10 CRISIL B+/Stable (Reaffirmed)
Letter of Credit 35 CRISIL A4 (Reaffirmed)
Overdraft Facility 40 CRISIL A4 (Reaffirmed)
Term Loan 2 CRISIL B+/Stable (Reaffirmed)
These weaknesses are partially offset by its promoters' extensive
experience in the polyvinyl chloride (PVC) resin and PVC plumbing
fittings trading business, and its established relationships with
customers and suppliers.
Outlook: Stable
CRISIL believes SMA will continue to benefit over the medium term
from its promoters' extensive industry experience. The outlook may
be revised to 'Positive' if the firm generates sizeable cash
accrual with increase in revenue or profitability, or if promoters
infuse considerable long-term funds, leading to a better financial
risk profile. Conversely, the outlook may be revised to 'Negative'
if financial risk profile weakens because of stretch in working
capital cycle, or decline in topline or profitability.
SMA, set up in 1999, trades in PVC plumbing fittings and PVC
resin. The firm is an exclusive distributor for the range of
plumbing fittings manufactured by Finolex Pipes, Astral Pipes, and
Suparna Plastics in Uttara Kannada, Udupi, and Dakshina Kannada
(all in Karnataka). It is the sole authorised distributor for
Finolex Industries Ltd (rated 'CRISIL AA-/Stable/CRISIL A1+') for
PVC resin in Karnataka. SMA is promoted by Mr. K Dinesh Kamath and
his son Mr. K Rajendra Kamath. The promoters have been trading in
PVC pipes for more than a decade.
SUNRISE TIMPLY: Ind-Ra Assigns BB+ Long-Term Issuer Rating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Sunrise Timply
Company Private Limited (STCPL) a Long-Term Issuer Rating of
'IND BB+'. The Outlook is Stable.
KEY RATING DRIVERS
The ratings reflect STCPL's moderate credit profile with gross
EBITDA interest coverage of 1.2x in FY15 (FY14: 1.1x) and net
financial leverage of 6.3x (5.9x). The ratings factor in the
company's low operating margins due to the trading nature of its
operations. EBITDA margins deteriorated to 1.3% during FY15 from
2.2% in FY14 and 2.4% in FY13. The ratings also factor in the
company's moderate net cash cycle of 46 days during FY15.
The ratings benefit from STCPL's strong liquidity profile as
reflected from its low average working capital utilization of
87.26% over the 12 months ended December 2015. The net interest
coverage was also negative at 25.6x during FY15, due to interest
income of INR8.81 mil. which was higher than interest expenses of
INR8.44 mil. Cash balance was INR9.64 mil. and fixed deposit of
INR99.07 mil. at FYE15 as against the total debt of INR94 mil.
The ratings are also supported by STCPL's more than 15 years of
experience in the timber trading business.
RATING SENSITIVITIES
Positive: A substantial increase in the scale of operations along
with an improvement in the gross interest coverage would lead to a
positive rating action.
Negative: Sustained deterioration in gross EBITDA interest
coverage will lead to a negative rating action.
COMPANY PROFILE
STCPL was incorporated in 2000 by Late Gopal Bagla. The family
has been in the timber trading business for the last five decades
under its proprietorship firms Sunrise Timber Company and R.K
Timber Company. The company imports round timber logs from
Malaysia, Myanmar, Ivory Coast, Nigeria, New Zealand and
Indonesia. The plywood is procured from the domestic market. The
company then sells its products to wholesalers, retailers and saw
mills in the domestic market. STCPL's warehousing facility is
located in Khidderpore, Kolkata which is nearby Kolkata Port.
Ramesh Kumar Bagla is the managing director and chairman of the
company and Mr Gaurav Bagla is the executive director.
STCPL's ratings:
-- Long-Term Issuer Rating: assigned 'IND BB+'; Outlook Stable
-- INR60.00 mil. fund-based working capital limit: assigned
'IND BB+'/Stable
-- INR208.10m non-fund-based working capital limit: assigned
'IND A4+'
SYMTRONICS AUTOMATION: CRISIL Reaffirms B- Rating on INR45MM Loan
-----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Symtronics Automation
Private Limited (SAPL) continue to reflect the company's below-
average financial risk profile because of a modest net worth and
subdued debt protection metrics.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 15 CRISIL A4 (Reaffirmed)
Cash Credit 45 CRISIL B-/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 5 CRISIL B-/Stable (Reaffirmed)
The ratings also factor in a modest scale, and working capital
intensive nature, of operations. These rating weaknesses are
partially offset by the extensive experience of SAPL's promoters
in the control panel manufacturing industry, and established
market position in the niche segment of control systems for
defence applications.
Outlook: Stable
CRISIL believes SAPL will continue to benefit over the medium term
from its promoters' extensive industry experience. The outlook may
be revised to 'Positive' in case of higher-than-expected cash
accrual, driven by improvement in scale of operations, or if there
is a sustainable improvement in the company's working capital
cycle. Conversely, the outlook may be revised to 'Negative' in
case of deterioration in the financial risk profile, particularly
liquidity, driven by lower-than-expected cash accrual, or a
stretched working capital cycle caused by delay in realisation of
receivables.
SAPL was initially established as a partnership concern, was
reconstituted as a private limited company in 1986. The company,
promoted by Mr. Atul Chaudhari, designs and manufactures
electronic control systems and caters to naval applications.
SAPL is registered with the Directorate General of Quality
Assurance of the Ministry of Defence, Government of India, as well
as with other relevant departments of the Indian Navy with a
Proprietary Article Certification status.
TANEJA OVERSEAS: CARE Assigns B+ Rating to INR9cr LT Loan
---------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of Taneja
Overseas.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 9 CARE B+ Assigned
Rating Rationale
The rating assigned to the bank facilities of Taneja Overseas (TO)
is primarily constrained by its modest scale of operations with
low net worth base, working capital intensive nature of operations
and weak financial risk profile marked by low profitability
margins, highly leveraged capital structure and weak debt coverage
indicators. The rating is further constrained by TO's presence in
a highly fragmented industry characterized by intense competition
and susceptibility of margins to fluctuations in raw material
prices. Availability of agro commodities are highly dependent on
the climatic conditions which lead to volatility in raw material
prices. The rating, however, derives strength from the experienced
partners, healthy scale-up of operations in the past and
favourable processing location of the plant.
Going forward, the ability of the firm to profitably scale-up its
operations, improve the solvency position and manage the working
capital requirements efficiently will remain the key rating
sensitivities.
Taneja Overseas (TO) was established as a partnership firm in
2007, with Mr Avtar Singh Taneja, Mr Jaideep Singh and Mrs
Satinder Kaur as the partners sharing profit and loss in the ratio
of 50%, 30% and 20%, respectively. The firm is engaged in
processing of paddy at its manufacturing facility located in Tarn
Taran, Punjab having an installed capacity of processing 18,000
metric tonnes per annum (MTPA) of paddy to rice as on March 31,
2015. TO procures paddy directly from local grain markets
through commission agents located in Punjab. TO sells basmati rice
under brand name "Sweet Home" and non basmati rice under name
"Tiger" and "Everyday". The entity also exports rice (basmati and
non basmati) to Middle East Countries (Dubai, Oman and Europe).
Exports accounted for about 22% of the total income in FY15
(refers to the period April 1 to March 31).
In FY15, TO had achieved total operating income of INR27.83 crore
with PAT of INR0.06 crore compared with total operating income of
INR17.83 crore and PAT of INR0.03 crore in FY14. In 7MFY16
(Provisional), the firm has achieved total operating income of
INR15 crore.
UMA KRAFTPAPER: CRISIL Assigns 'B' Rating to INR82.5MM Term Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of UMA Kraftpaper Private Limited (UKPPL). The
rating reflects early stage of operations in a highly fragmented
and competitive paper industry and susceptibility to fluctuations
in waste paper prices. These rating weaknesses ar mitigated by its
promoters' extensive experience in the paper industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 17.5 CRISIL B/Stable
Term Loan 82.5 CRISIL B/Stable
Outlook: Stable
CRISIL believes UKPPL will benefit over the medium term from its
promoters' extensive industry experience. The outlook may be
revised to 'Positive' if UKPPL stabilises its operations on time,
leading to substantial cash accrual. Conversely, the outlook may
be revised to 'Negative' in case of low accrual because of low
order flow or profitability, or weak financial risk profile
because of substantial working capital requirements or debt-funded
capital expenditure.
Incorporated in 2013, UKPPL is promoted by Mahendrakumar Patel and
family. UKPPL has set-up a plant for manufacturing of kraft paper
at Palanpur, Gujarat, with processing capacity of 30,000 tonne per
annum. The promoters have two decades of experience in the paper
industry.
VISITOR GARMENTS: Ind-Ra Affirms 'IND BB' LT Issuer Rating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Visitor Garments'
(VG) Long-Term Issuer Rating at 'IND BB'. The Outlook is Stable.
The agency has also assigned the company's INR100 milion fund-
based limit a Long-term 'IND BB' rating with Stable Outlook and a
Short-term 'IND A4+' rating.
KEY RATING DRIVERS
The affirmation reflects VG's continued small scale of operations
with revenue of INR440m during FY15 (FY14: INR446m). The ratings
continue to factor in VG's high customer concentration risk as 99%
of the total revenue was contributed by the top three customers in
FY15. The ratings also consider VG's partnership structure of
business.
The ratings continue to benefit from VG's strong liquidity
position with around 56.61% utilisation of its fund-based limits
(based on maximum utilisation) over the 12 months ended October
2015. The ratings also continue to be support by the firm's strong
credit profile with interest coverage of 5x in FY15 (FY14: 7.7x)
and net financial leverage of 1.5x (1.1x). EBITDA margins remained
strong at 7.8% during FY15 (FY14: 9.6%). Also, VG's promoters have
an experience of over two decades in the export of garments.
RATING SENSITIVITIES
Positive: An increase in the scale of operations along with the
maintenance of the credit profile will lead to a positive rating
action.
Negative: A decline in the profitability leading to deterioration
in the interest coverage will lead to a negative rating action.
COMPANY PROFILE
VG was established in 1988. It manufactures and exports garments.
The firm is associated with a fashion apparel company in London
Primark Store. VG exports to the UK, Ireland and Spain. It
outsources a part of its production to different entities in
Tirupur. VG also undertakes certain job orders such as knitting,
stitching and embroidery.
M Muthukrishnan is the managing partner of the firm.
VIVEK AGROTECH: CARE Assigns B+ Rating to INR9.95cr LT Loan
-----------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of Vivek
Agrotech Private Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 9.95 CARE B+ Assigned
Rating Rationale
The rating assigned to the bank facilities of Vivek Agrotech
Private Ltd (VAPL) is constrained by its project risk, volatility
in raw material prices, high dependence on vagaries of nature,
highly fragmented and competitive nature of the industry.
The rating, however, derives strength from the experience of the
promoters with established presence in the industry and positive
outlook for the rice bran oil.
Going forward, the ability of VAPL to complete its ongoing project
without any time and cost overrun and derive benefits as envisaged
will be the key rating sensitivities.
VAPL was incorporated in February 2006 by the Agrawal family of
Raipur, Chhattisgarh. Presently VAPL is setting up a rice
bran oil extraction unit at Dhamtari, Chhattisgarh, having an
installed capacity of 75,000 metric tonnes per annum (MTPA)
with an aggregate project cost of INR11.98 crore (including margin
money for working capital) which is to be financed at debt equity
of 1.18x. The financial closure has already been achieved and the
company has spent INR 9.19 crore through term loan of INR3.91
crore and promoter's contribution of INR5.28 crore as on December
31, 2015. The project is estimated to be operational by the end of
January 2016. The company is entitled to receive capital subsidy
of INR70 lakh from State government of Chhattisgarh for setting up
a new manufacturing unit (under its programme for advancement
of small scale industries in the state of Chhattisgarh).
The key promoter of VAPL Mr Shyam Kumar Agrawal is having around
three decade of experience in edible oil industry through his
associate concern M/s PBS Oil Industries Ltd which is into rice
bran oil extraction and refinery business. Mr Agrawal will look
after the overall management of the company supported by the other
directors.
WOODVILLE PALACE: CRISIL Assigns B- Rating to INR200MM Term Loan
----------------------------------------------------------------
CRISIL has assigned its rating of 'CRISIL B-/Stable' to the long-
term bank loan facility of Woodville Palace Hotel (WHP).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 200 CRISIL B-/Stable
The rating reflects high off-take risk of the proposed project on
account of intense competition in hospitality industry, and weak
liquidity position of the firm. These rating weaknesses are offset
by the moderate funding and completion risk of the project and the
extensive experience of promoter in hospitality industry.
Outlook: Stable
CRISIL believes that WHP will benefit from its promoter's
extensive experience of over three decades in hospitality
industry. The outlook may be revised to 'Positive' in case the
company executes its project on time and within the estimated
cost, or has higher-than-expected average room rates and occupancy
levels and hence, reports higher-than-expected accruals.
Conversely, the outlook may be revised to 'Negative' in case WPH
reports a significant time or cost overrun, which would adversely
impact its debt servicing ability.
WHP is a proprietorship firm incorporated by Mr. Raj Kumar Uday
Singh and operates a hotel in Shimla under the name 'Woodville
Palace'. The property comprises of 24 rooms and the firm is in
process of expanding and renovating the same. The project is
expected to get completed by financial year 2015-16 and the hotel
is expected to house 50 rooms post completion.
YOGESH DEVELOPERS: Ind-Ra Assigns 'IND BB-' LT Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Yogesh and Yogesh
Developers (YYD) a Long-Term Issuer Rating of 'IND BB-'. The
Outlook is Stable. The agency has also assigned the company's
proposed INR100 milion long-term loans a 'Provisional IND BB-'
rating with Stable Outlook.
KEY RATING DRIVERS
The ratings reflect the execution risks associated with YYD's two
ongoing residential projects in Pune - Courtyard and Manas which
are likely to be completed during 1HFY18. The ratings also factor
in the possibility of a cash flow mismatch due to the ongoing
construction and high inventory of unbooked flats.
Brickwork has started in Courtyard which has a total of 30 flats
(2BHK) having a total saleable area of 30,696 sq ft., while in the
other project, Manas which is a 10-storey building having 10 flats
(4BHK) and a total saleable area of 31,862 sq ft., fourth floor is
currently under construction. 11 and eight flats have been booked,
respectively, in Courtyard and Manas.
The ratings benefit from the promoters' extensive track record of
32 completed projects in Pune and their experience of over three
decades in the residential real estate segment. The ratings also
consider the locational advantage of both the projects as they are
located at the residential hub of Pune.
RATING SENSITIVITIES
Positive: The execution of large value projects and the sales of
flats as planned, leading to strong cash flow visibility could
lead to a positive rating action.
Negative: Further leveraging of the existing business for the new
projects and/or time and cost overruns stressing cash flow for
debt service could lead to a negative rating action.
Set up in 1983, YYD is a family business enterprise engaged in
residential real estate development. The company has executed 32
projects in Pune.
YYD is a part of the Pate Developers group which has been in the
Pune real estate market for more than three decades and has
constructed around 3.1million sq ft of land in and around Pune.
Another 4.5million sq ft is under construction.
=========
J A P A N
=========
ASAHI KASEI: President to Step Down Over Piling Scandal
-------------------------------------------------------
Jiji Press reports that Asahi Kasei Corp. President Toshio Asano
plans to step down to take responsibility for a piling data
fabrication scandal involving a subsidiary, informed sources said
on February 7.
According to the report, sources said Chief Financial Officer
Hideki Kobori, 61, is expected to replace Asano, 63, as president
of the major chemicals maker.
Asahi Kasei Construction Materials Corp. was recently found to
have fabricated data on 360 of the 3,052 piling projects it
conducted over the past 10 years, a scandal that dealt a blow to
Asahi Kasei's image, Jiji Press relates. Despite being a chemical
giant, Asahi Kasei is also known for building quality houses under
the Hebel Haus brand.
The report notes that the personnel change comes as the parent's
new midterm business plan goes into force in April.
Mr. Asano took the helm of Asahi Kasei in April 2014 as the first
president selected from the health care division. Mr. Kobori
comes from the electronics materials division, Jiji Press
discloses.
Japan-based Asahi Kasei Corporation is mainly engaged in chemical
business. It has seven business segments. The Chemical segment
offers petrochemicals, functional films, functional resins and
others. The Textile segment offers synthetic textile and nonwoven
fabrics. The Housing segment is engaged in the development and
sale of housing, as well as the renovation, real estate
transaction and others. The Construction Material segment offers
aerated light-weight concrete and high-performance adiabatic
materials. The Electronics segment is engaged in the manufacture
and sale of electronic materials and electronic components. The
Drug and Medical segment offers pharmaceuticals and medical
devices, including artificial kidneys, blood purifiers, leukocyte
removal filters, virus clearance filters and others. In addition,
the Company is also involved in the design, construction and
maintenance of industrial facilities and others.
MITSUI OSK: Bonds Drop on Risk Rating Cut Will End Index Status
---------------------------------------------------------------
Tesun Oh at Bloomberg News reports that Mitsui OSK Lines Ltd.'s
bonds are plunging on concern the struggling Japanese shipper will
be downgraded and taken out of a key debt index.
The extra yield on the Tokyo-based company's June 2024 notes has
jumped 74 basis points this year to a record 163 more than
sovereign debt, Bloomberg discloses.
According to Bloomberg, tumbling freight charges forced the
shipper last month to cut its fiscal year earnings forecast to a
net loss of JPY175 billion ($1.5 billion) from a JPY17 billion
profit. The cost to insure the company's debt has risen the most
among Japanese firms this year, Bloomberg discloses citing CMA
data.
Bloomberg relates that Japan Credit Rating Agency Ltd. lowered its
outlook on the company's Ascoreto negative after the Mitsui OSK
announced a charge of as much as JPY180 billion to trim its dry-
bulk fleet, whose shorter contracts are more vulnerable to market
swings. The company needs to keep that ranking to stay in the
Nomura-BPI corporate bond index, which is tracked by many fund
managers, SMBC Nikko Securities said, Bloomberg relays.
"Mitsui OSK has been hurt the most among Japan's big-three
shippers by the slump," Bloomberg quotes Muneharu Hashimoto, a
credit analyst in Tokyo at SMBC Nikko, as saying. "It's important
to see whether they can change so that they can secure profits
even when they misread the shipping market."
Credit-default swaps to insure Mitsui OSK's debt have jumped 117
basis points this year to 330, CMA data, as cited by Bloomberg,
said. Bond risk at domestic rivals Kawasaki Kisen Kaisha Ltd. and
Nippon Yusen KK has risen 80 and 38 respectively.
Mitsui OSK has a BBB+ grade from Japan's Rating & Investment
Information Inc. and a Ba1 score from Moody's Investors Service,
one level below investment grade, Bloomberg notes.
Corporate notes need to have an A level rating or higher to be
included in the Nomura-BPI index, Bloomberg relates citing a
statement from Nomura Holdings Inc.
According to Bloomberg, Kazuma Ogino, a credit analyst at Nomura
in Tokyo, said the jump in Mitsui OSK's bond risk may be overdone
considering the possibility the company will issue shares or
hybrid securities to strengthen its capital.
"The CDS have risen to levels suggesting credit ratings will be
cut by several notches, and that's excessive," Bloomberg quotes
Mr. Ogino as saying. "If there's a way for the company to bolster
its capital, the CDS could drop again."
Bloomberg relates that Takafumi Shiina, a Mitsui OSK spokesman,
said that while the market moves are "unfortunate," the company
will be taking steps to boost profitability. He said the timing of
the announcement on restructuring is undecided, Bloomberg adds.
Mitsui O.S.K. Lines, Ltd. is a Japan-based company engaged in the
international shipping business. The Company has five business
segments. The Nonscheduled Specialized Shipping segment offers
international shipping services by ships that carry dry bulk, oil,
liquefied natural gas (LNG), automobiles and others. The Container
Shipping segment operates containerships in regular scheduled
routes and container terminals. The Ferry and Coastal Shipping
segment offers transportation services for cargo and passengers by
ferries in the areas of inshore Pacific and Seto Inland Sea, as
well as cargo shipping services in Japan. The Related segment is
engaged in the real estate business, as well as the passage boat,
tug boat, trading, construction and temporary staffing businesses.
The Others segment is engaged in the finance, ship manufacturing
and management businesses, as well as the provision of information
and accounting services.
SONY CORP: Fitch Hikes Issuer Default Ratings to 'BB'
-----------------------------------------------------
Fitch Ratings has upgraded Sony Corporation's (Sony) Long-Term
Foreign- and Local-Currency Issuer Default Ratings (IDR) and
local-currency senior unsecured ratings to 'BB' from 'BB-'. The
Outlook is Stable. Simultaneously, its Short-Term Foreign- and
Local-Currency IDRs are affirmed at 'B'. A full list of rating
actions is at the end of this release.
The upgrade reflects Fitch's expectations of improved
profitability in Sony's core electronics businesses and further
deleveraging following the successful execution of its
restructuring measures and commitment from management to position
profitability and return on equity as the primary key performance
indicators.
KEY RATING DRIVERS
Improving Profitability: Fitch expects Sony to continue generating
an operating profit from the non-financial businesses with the
benefits of cost reduction and restructuring. Downsizing its loss-
making smartphone and TV businesses should help the company reduce
volatility in earnings. Reduction in restructuring charges and
impairment losses should also contribute to steady profits. We
expect improved results for the financial year ending March 2016
(FYE16) with an operating EBIT margin of 2.1% (FYE15: -1.1%).
Further Deleveraging: We expect Sony to deleverage over the next
12-24 months, driven mainly by improved profitability and cash
generation from its electronics businesses. We expect Sony's funds
flow from operations (FFO)-adjusted leverage, excluding Sony
Financial Holdings (SFH), to reduce to below 4.0x in FYE16, from
4.4x at end-FYE15. In addition, new share issuance of JPY300
billion in August 2015 helped fund the increased capex budget of
JPY501 billion for FYE16 (FYE15: JPY251 billion).
Higher Game Contribution: We expect continued solid revenue from
PlayStation 4 (PS4) and enhanced network services to support
Sony's overall profitability, mitigating the weaker profitability
of its smartphone, TV and component businesses. Sony sold around
36 million PS4 units up to end-December 2015, with substantial
sales of its PlayStation 3 over the equivalent period. With
stronger PS4 hardware sales, we expect higher PS4 software sales
to follow, which should support firmer margins over the next two
to three years.
Smartphone Challenges: Slower growth in global smartphone demand
coupled with increased competition from low-cost Chinese vendors
will not only add further challenges to its Mobile segment, but
also to its Device segment, which produces image sensors and
camera modules to key global brands. We expect its Mobile
profitability to remain fragile as we do not expect Sony's
smartphones to improve on their relatively weak market position.
Fitch believes its technology leadership in image sensors remains
strong, but profitability of its Device segment is likely to be
adversely affected by weaker order flow from its major customers.
KEY ASSUMPTIONS
Fitch's key assumptions within our rating case for the issuer
include:
-- low single-digit revenue growth in the next two to three
years
-- Ex-SFH operating EBIT margin to stay around 2% in the next
two to three years
-- capex and addition of intangible assets of over JPY500
billion in FYE16 and JPY380bn in FYE17
-- annual cash dividend of JPY25 billion
RATING SENSITIVITIES
Negative: Future developments that may, individually or
collectively, lead to negative rating action include (for Sony
excluding SFH):
-- sustained EBIT margins lower than 1%
-- FFO-adjusted leverage sustained above 4.5x
Positive: Future developments that may, individually or
collectively, lead to a positive rating action include (for Sony
excluding SFH):
-- sustained EBIT margins higher than 2%
-- FFO-adjusted leverage sustained below 3.5x
LIQUIDITY
Adequate Liquidity: Fitch expects Sony's liquidity to remain
adequate. Excluding SFH, Sony had readily available cash of JPY845
billion at end-December 2015, compared with debt due within one
year of JPY211 billion in the same period. The company also had
unused credit facilities of JPY540 billion at end-June 2015. The
company continues to have good access to local banks and capital
markets.
The full list of rating actions is below:
Long-Term Foreign- and Local-Currency IDRs upgraded to 'BB'.
Outlook is Stable;
Local-currency senior unsecured rating upgraded to 'BB'; and
Short-Term Foreign- and Local-Currency IDRs affirmed at 'B'.
TAKATA CORP: Nomura, Mizuho See Distressed Debt at Bargain Price
----------------------------------------------------------------
Bloomberg News reports that Takata Corp. may be embroiled in the
biggest vehicle recall in U.S. history as its air bags have been
linked to 11 deaths, but don't count it out as an investment, said
credit analysts at Mizuho Securities Co. and Nomura Holdings Inc.
who are recommending investors buy its bonds.
The company continues to generate cash from products including
seat belts, child seats and steering wheels even as air bag
recalls widen, according to Taketoshi Tsuchiya, a senior executive
in Mizuho's fixed-income group in Tokyo, Bloomberg relays. Honda
Motor Co. and Toyota Motor Corp. remain backers of the auto parts
supplier, he said.
"Takata is still generating cash flow and there's no incentive for
Honda or Toyota to push it into bankruptcy," Bloomberg quotes
Tsuchiya as saying. "From the technology perspective, the
alternative of having to rely on foreign air bag suppliers is
totally unacceptable" for the carmakers and the Japanese
government, he said.
Bloomberg notes that scandals last year in Japan have created a
handful of opportunities for distressed-debt traders as companies
including Sharp Corp., Toshiba Corp. and Mitsui OSK Lines Ltd.
generate losses. Bloomberg says speculation on Takata's recall
liability has blown its credit spreads to a record high in
December in a market that offers near-zero bond yields. Nomura
upgraded Takata debt last month on signs of Honda's support, the
report states.
Takata's March 2021 notes have gained 6.7 percent from a record-
low to reach 72.49 percent of face value on Feb. 4, according to
Bloomberg-compiled prices. The yield fell to 8.21 percent,
compared with the 0.17 percent average yield on Japanese corporate
bonds, Bloomberg discloses citing a Bank of America Merrill Lynch
index. The 2021 notes are still down 15 percent in price over the
past 12 months, Bloomberg says.
"Allowing Takata to continue operating and repay the recall costs
from future cash flow would be the most economically rational
option for carmakers," Bloomberg quotes Shintaro Niimura, a credit
analyst at Nomura in Tokyo, as saying. Automakers won't be able to
receive sufficient recall funds from Takata's remaining assets if
the company goes bankrupt, he said.
Bloomberg discloses that the Tokyo-based air bag maker had 85
billion ($728 million) of interest-bearing debt and 65.6 billion
of cash, according to its financial reports for the quarter ended
Dec. 31, putting its net debt-to-equity ratio at 0.13 times.
Overall cash flow was negative in 2015 through September, due to
one-time provisions for future recalls and legal costs, and will
improve with a weaker yen and rising overseas sales, Mizuho
predicts, according to Bloomberg.
Takata's probability of debt nonpayment within one year has risen
to 1.17 percent from about 0.64 percent a year earlier, according
to the Bloomberg default-risk model, which considers factors such
as share prices and debt levels. The gauge suggests the company's
credit rating should be at the second-highest high-yield grade.
Takata posted net income of 2.5 billion in the nine months ended
Dec. 31, compared with a loss of 32.5 billion a year earlier,
Bloomberg discloses citing a filing released on Feb. 5.
"People who had concern about its credit risk have already sold
off the bonds but there are still buyers coming in," Mizuho's
Tsuchiya, as cited by Bloomberg, said. "It's a good buy at the
70s. There is very little volume and we don't expect an immediate
positive catalyst, so you may have to wait for the bond to mature
to get repaid at 100."
As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 24, 2014, 24/7 Wall St. said Takata Corporation faces huge
fines, and almost certainly lawsuits (which have already begun),
over its defective airbags. The report related that some experts
believe that the Japanese company was not forthcoming about the
technical failure that caused several serious accidents and
deaths. If Takata goes bankrupt, which could certainly happen,
claims against the company would be in limbo, 24/7 Wall St. said.
Takata Corporation (TYO:7312) develops, manufactures and sells
safety products for automobiles. The Company offers seatbelts,
airbags, steering wheels, child seats and trim parts. The Company
has subsidiaries located in Japan, the United States, Brazil,
Germany, Thailand, Philippines, Romania, Singapore, Korea, China
and other countries.
TOSHIBA CORP: S&P Lowers CCR to 'B+' & Maintains on Watch Neg.
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it has lowered its
long-term corporate credit rating on Japan-based diversified
electronics company Toshiba Corp. three notches to 'B+' from 'BB+'
and its long-term senior unsecured debt rating two notches to 'BB'
from 'BBB-'. The debt rating is two notches higher than the
corporate credit rating, reflecting S&P's view that the
probability of default in Toshiba's bonds is lower than that in
its bank borrowings. S&P is keeping its long-term ratings on
Toshiba on CreditWatch with negative implications, where S&P
placed them Dec. 22, 2015, when it lowered the long-term corporate
credit rating. S&P has affirmed its short-term corporate credit
and commercial paper ratings on Toshiba.
The downgrades and continued CreditWatch placements follow
Toshiba's further material downward revision of its estimated
operating performance in fiscal 2015 (ending March 31, 2016),
which is likely to further erode its shareholders' equity. For
fiscal 2015, Toshiba expects to make a JPY430 billion operating
loss (its previous estimate was a JPY340 billion operating loss)
and a JPY710 billion net loss (its previous estimate was a JPY550
billion net loss). Toshiba expects net losses to increase because
of valuation losses such as additional loss provisions and asset
devaluation in its core energy and infrastructure business and the
reversal of deferred tax assets. In addition, due to pension
liability adjustments, its shareholders' equity at the end of
fiscal 2015 (ending March 31, 2016) will drop significantly to
about JPY150 billion from over JPY1 trillion as of the end of the
previous fiscal year.
S&P lowered its assessment of Toshiba's financial risk profile to
aggressive from S&P's previous assessment of significant.
Toshiba's ratios of funds from operations (FFO) to debt and debt
to EBITDA, measures S&P uses in its analysis of cash flow adequacy
and leverage, are likely to deteriorate to levels S&P considers
highly leveraged. Nevertheless, S&P considers Toshiba's financial
risk profile underpinned somewhat by the company's strong ties
with major creditor banks, which S&P expects will support measures
of its interest coverage at sound levels.
"We have kept our assessment of the company's business risk
profile at fair. We expect the company's core energy and
infrastructure-related and NAND flash memory businesses to
maintain a certain level of business competitiveness. However,
the additional valuation losses Toshiba is posting in a wide range
of businesses, including its infrastructure and semiconductor
businesses, point to a decline in its future profitability, in our
view. In addition, further weakening of its financial health will
constrain any future investments aimed at maintaining or enhancing
its business competitiveness. Therefore, we assess Toshiba's
business risk profile to be at the lower end of our assessment of
fair," S&P said.
S&P's 'B+' long-term corporate credit rating on Toshiba is one
notch lower than the 'bb-' anchor that S&P derives from the
combination of its assessments of Toshiba's business and financial
risk profiles. S&P bases this downward adjustment on its
assessment of Toshiba's liquidity as less than adequate.
S&P expects Toshiba's liquidity sources to be less than 1.2x uses
over the next 12 months. The proportion of short-term borrowing
as of the end of December 2015 has jumped considerably from the
level as of the end of March 2015. Its accounting scandal has
made access to market funding difficult, and therefore support
from main creditor banks will remain essential to maintain
liquidity, in S&P's view. Nevertheless, S&P believes the company
maintains strong ties with its main creditor banks, as a JPY400
billion commitment line of credit newly established at the end of
September 2015 indicates.
S&P's 'BB' long-term senior unsecured rating is two notches higher
than its long-term corporate credit rating. This reflects S&P's
view that the probability of default in Toshiba's long-term senior
unsecured bonds is lower than that in its bank borrowings because
any default is somewhat likely to take the form of debt
forgiveness by banks, given the strengths of Toshiba's ties with
its main creditor banks, the material size of its businesses, and
the strong competitiveness of its core businesses.
S&P sees a continued risk that Toshiba's operating performance may
further deteriorate beyond current projections in fiscal 2015 and
that recovery in the following fiscal year and beyond may be
delayed. Therefore, before S&P removes the ratings from
CreditWatch, it needs to confirm Toshiba is making progress in
selling its assets and businesses, including Toshiba Medical
Systems, currently subject to sale negotiations; specifics and
effects of Toshiba's restructuring measures; earnings prospects
for next fiscal year and beyond; and whether its takes other
measures to increase capital. S&P may consider downgrading
Toshiba if its business results become significantly worse than
current projections, the sale of Toshiba Medical Systems faces
delays, or S&P determines that support from Toshiba's main
creditor banks has weakened. Conversely, S&P will affirm the
ratings if Toshiba recovers equity capital materially by selling
Toshiba Medical Systems in the coming few months and S&P sees an
increased likelihood of steady improvement in operating
performance beginning in fiscal 2016.
===============
M O N G O L I A
===============
BOGD BANK: Moody's Assigns B3 Deposit Rating
--------------------------------------------
Moody's Investors Service has assigned these first-time ratings to
Bogd Bank LLC: local currency and foreign currency long-term
deposit rating of B3, local currency and foreign currency short-
term deposit ratings of NP.
In addition, Moody's has assigned Bogd Bank a baseline credit
assessment (BCA) and adjusted BCA of b3, long-term counterparty
risk assessment of B2(cr), and short-term counterparty risk
assessment of NP(cr).
The outlook for all the ratings is stable.
RATINGS RATIONALE
"Bogd Bank's BCA reflects the risks associated with establishing a
new bank and the challenges that the bank faces in accessing
sticky deposit funding and managing liquidity," says Hyun Hee
Park, a Moody's Assistant Vice President and Analyst.
"Such risk factors are inherent for recently established banks.
In the case of Bogd Bank, the bank currently has a limited ability
to gather deposits domestically," adds Park.
Bogd Bank was established in 2014 and represents the smallest and
newest of Mongolia's 14 commercial banks by assets.
Nevertheless, Moody's notes that the challenges that the bank
faces as a newly established financial institution are mitigated
by its high levels of equity capital and large stock of highly
liquid assets. Bogd Bank's ratings also reflect the likely growth
in its assets, which according to the bank's business plan will
mostly comprise investments in government bonds over the next 12
to 18 months.
Moody's points out that Bogd Bank's ratings do not incorporate any
uplift for systemic support, because of the bank's limited
domestic deposit franchise.
Nonetheless, Moody's recognizes that the Mongolian authorities
have facilitated the establishment of the bank, despite government
efforts to raise minimum capital requirements designed in part to
encourage smaller banks to consolidate or exit the market.
The key drivers of Bogd Bank's ratings are:
1) Its limited domestic deposit franchise and the challenges
associated with the bank's ability to attract domestic
deposits as a newly established bank, and as a result, its
high reliance on wholesale funding; and
2) The bank's strong and liquid balance sheet, as its assets
mostly comprise domestic government bonds.
What Could Change the Rating -- Up
Upward pressure on Bogd Bank's local currency and foreign currency
long-term deposit ratings and BCA is unlikely in the near term.
However, Moody's would consider raising the b3 BCA if the bank
improves its funding structure by increasing its deposit funding
and establishing a track record of maintaining adequate capital,
asset quality and profitability metrics, while it develops its
banking business.
What Could Change the Rating -- Down
Moody's will downgrade Bogd Bank's local currency and foreign
currency long-term deposit ratings if its BCA is lowered.
The bank's BCA could be lowered if: (1) its tangible common equity
ratio falls below 8.0%; (2) its annual net income to tangible
assets falls below 0.5% due to a sharp increase in credit losses;
or (3) its asset quality deteriorates significantly; for example,
if new non-performing loans to gross loans exceed 4.0%.
The principal methodology used in these ratings was Banks
published in January 2016.
Bogd Bank LLC -- established in 2014 -- is headquartered in
Ulaanbaatar. Its assets totaled MNT39.2 billion (approximately
$19.6 million) at end-September 2015.
====================
N E W Z E A L A N D
====================
AWARUA FARM: Receiver Puts Dairy Farms Up For Sale
--------------------------------------------------
The Marlborough Express reports that public tenders are being
called for the sale of six properties owned by Marlborough dairy
farmer Phillip Woolley and totalling more 5,500 hectares, to clear
a debt of more than NZ$30 million to creditors.
According to the Express, Mr. Woolley put his company Awarua Farm
Marlborough Ltd into voluntary receivership in late 2014 after
incurring legal debts and costs to upgrade the farms totalling
more than NZ$1.3 million.
After further upgrades to several properties during the past 18
months receiver Grant Thornton, which was appointed to manage the
farms, had now put the six properties to public tender, the report
says.
The Express notes that the properties include a 865ha dairy farm,
Glenmae, in the upper Wairau Valley; two dairy support and beef
grazing units, Hillersden and Glengyle, in Wairau Valley totalling
956ha; a 724ha dairy farm in the Matakitaki Valley, near
Murchison; a 524ha dairy support and run-off, and forestry block
at Robin Hood Bay in the Marlborough Sounds; and a 331.6ha leased
vineyard at Tuamarina, north of Blenheim. The total area for sale
was 5553.2ha.
According to the report, joint receiver David Ruscoe, of Grant
Thornton Wellington, said the properties had undergone
improvements during the past 18 months and were now being put to
public tender to realise the asset and pay the debt owed.
"There has been a lot of hard work over the past 18 months to
upgrade the properties and bring them up to a saleable position,"
the Express quotes Mr. Ruscoe as saying.
Mr. Ruscoe described the farms as "fantastic properties" which
should attract attention from potential buyers in spite of the
downturn in the dairy industry, the report relays.
The Express says the receiver's six monthly report in July last
year showed an outstanding amount of NZ$32,958,180 million in debt
was owed by Awarua Farm Marlborough Ltd to secured creditors.
An outstanding debt of NZ$35,000 is owed to unsecured creditors,
the report, as cited by the Express, said.
According to the Expess, Mr. Woolley put Awarua Farm into
voluntary receivership in November 2014 to enable the company to
be restructured and resume sole ownership.
His wife, Suzanne, would not comment on the properties being put
to tender this month, the Express relates.
It is understood the Woolleys wanted to continue farming the
properties and were negotiating with the receiver to re-finance,
the Express notes.
The Express recalls that Mr. Woolley was convicted and fined
NZ$130,000 in August after being found guilty in the Blenheim
District Court of breaching enforcement orders, and effluent
disposal after a lengthy court case with the Marlborough District
Council.
The company, Awarua Farm Marlborough, was fined NZ$30,000, and
Suzanne Woolley fined NZ$20,000 in the same sentencing, the
Express relates.
The receivership sale tender was being marketed by Andy Poswillo,
of Bayleys Marlborough, the Express notes.
Tenders for the six properties close on March 11, adds the
Express.
===============
X X X X X X X X
===============
* BOND PRICING: For the Week Feb. 1 to Feb. 5, 2016
---------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA
---------
AUSDRILL FINANCE PTY 6.88 11/1/2019 USD 70.18
AUSDRILL FINANCE PTY 6.88 11/1/2019 USD 70.60
BARRICK PD AUSTRALIA 5.95 10/15/2039 USD 69.61
BARRICK PD AUSTRALIA 5.95 10/15/2039 USD 69.88
BARRICK PD AUSTRALIA 5.95 10/15/2039 USD 69.88
BOART LONGYEAR MANAG 7.00 4/1/2021 USD 39.88
BOART LONGYEAR MANAG 7.00 4/1/2021 USD 39.88
CML GROUP LTD 9.00 1/29/2020 AUD 0.99
CRATER GOLD MINING L 10.00 8/18/2017 AUD 15.00
CROWN RESORTS LTD 6.35 4/23/2075 AUD 75.50
EMECO PTY LTD 9.88 3/15/2019 USD 50.00
EMECO PTY LTD 9.88 3/15/2019 USD 49.50
FMG RESOURCES AUGUST 6.88 4/1/2022 USD 52.85
FMG RESOURCES AUGUST 6.88 4/1/2022 USD 54.43
IMF BENTHAM LTD 6.52 6/30/2019 AUD 72.00
KBL MINING LTD 12.00 2/16/2017 AUD 0.28
KEYBRIDGE CAPITAL LT 7.00 7/31/2020 AUD 0.69
LAKES OIL NL 10.00 3/31/2017 AUD 6.50
MIDWEST VANADIUM PTY 11.50 2/15/2018 USD 5.13
MIDWEST VANADIUM PTY 11.50 2/15/2018 USD 3.99
NEWCREST FINANCE PTY 5.75 11/15/2041 USD 73.36
ORIGIN ENERGY FINANC 4.00 9/16/2074 EUR 67.00
ORIGIN ENERGY FINANC 3.00 4/5/2023 EUR 73.58
STOKES LTD 10.00 6/30/2017 AUD 0.40
SUNLAND CAPITAL PTY 7.55 11/25/2020 AUD 73.88
TREASURY CORP OF VIC 0.50 11/12/2030 AUD 66.25
CHINA
-----
BANGBU CITY INVESTME 5.78 8/10/2017 CNY 56.27
CHANGCHUN CITY DEVEL 6.08 3/9/2016 CNY 40.01
CHANGCHUN CITY DEVEL 6.08 3/9/2016 CNY 36.85
CHANGSHA HIGH TECHNO 7.30 11/22/2017 CNY 71.10
CHANGSHU CITY OPERAT 8.00 1/16/2019 CNY 64.50
CHANGZHOU INVESTMENT 5.80 7/1/2016 CNY 40.34
CHANGZHOU INVESTMENT 5.80 7/1/2016 CNY 38.30
CHANGZHOU WUJIN CITY 5.42 6/9/2016 CNY 48.55
CHANGZHOU WUJIN CITY 5.42 6/9/2016 CNY 50.06
CHANGZHOU WUJIN CITY 6.22 6/8/2018 CNY 74.00
CHAOYANG CONSTRUCTIO 7.30 5/25/2019 CNY 75.00
CHONGQING HECHUAN UR 6.95 1/6/2018 CNY 72.50
CHONGQING HECHUAN UR 6.95 1/6/2018 CNY 72.14
CHONGQING JIANGJIN H 6.95 1/6/2018 CNY 72.17
CHONGQING JIANGJIN H 6.95 1/6/2018 CNY 73.40
CHONGQING NAN'AN DIS 6.29 12/24/2017 CNY 61.90
CHONGQING NAN'AN DIS 6.29 12/24/2017 CNY 61.00
CHONGQING YUXING CON 7.29 12/8/2017 CNY 72.50
DANDONG CITY DEVELOP 6.21 9/6/2017 CNY 71.00
DANYANG INVESTMENT G 6.30 6/3/2016 CNY 39.64
DATONG ECONOMIC CONS 6.50 6/1/2017 CNY 71.47
DATONG ECONOMIC CONS 6.50 6/1/2017 CNY 70.50
DRILL RIGS HOLDINGS 6.50 10/1/2017 USD 52.94
DRILL RIGS HOLDINGS 6.50 10/1/2017 USD 55.00
ERDOS DONGSHENG CITY 8.40 2/28/2018 CNY 71.45
ERDOS DONGSHENG CITY 8.40 2/28/2018 CNY 68.16
GRANDBLUE ENVIRONMEN 6.40 7/7/2016 CNY 70.21
GUILIN ECONOMIC CONS 6.90 5/9/2018 CNY 73.00
GUOAO INVESTMENT DEV 6.89 10/29/2018 CNY 68.75
HANGZHOU XIAOSHAN ST 6.90 11/22/2016 CNY 40.50
HANGZHOU XIAOSHAN ST 6.90 11/22/2016 CNY 41.26
HEBEI RONG TOU HOLDI 6.76 7/8/2021 CNY 73.61
HEILONGJIANG HECHENG 7.78 11/17/2016 CNY 39.90
HEILONGJIANG HECHENG 7.78 11/17/2016 CNY 41.20
HUAIAN CITY URBAN AS 7.15 12/21/2016 CNY 40.37
HUAIAN QINGHE NEW AR 6.79 4/29/2017 CNY 71.27
HUZHOU MUNICIPAL CON 7.02 12/21/2017 CNY 73.48
JIANGSU HUAJING ASSE 5.68 9/28/2017 CNY 50.57
JIANGSU HUAJING ASSE 5.68 9/28/2017 CNY 49.95
JINING CITY CONSTRUC 8.30 12/31/2018 CNY 64.91
KUNSHAN ENTREPRENEUR 4.70 3/30/2016 CNY 40.04
KUNSHAN ENTREPRENEUR 4.70 3/30/2016 CNY 37.69
LEQING CITY STATE OW 6.50 6/29/2019 CNY 78.00
LIAOYUAN STATE-OWNED 7.80 1/26/2017 CNY 41.13
LIAOYUAN STATE-OWNED 7.80 1/26/2017 CNY 44.69
LINAN CITY CONSTRUCT 8.15 3/9/2018 CNY 73.00
LINHAI CITY INFRASTR 7.98 11/6/2016 CNY 51.30
LINHAI CITY INFRASTR 7.98 11/6/2016 CNY 50.56
LONGHAI STATE-OWNED 8.25 12/2/2017 CNY 73.99
LUOHE CITY CONSTRUCT 6.81 3/30/2017 CNY 60.92
LUOHE CITY CONSTRUCT 6.81 3/30/2017 CNY 61.28
NANTONG STATE-OWNED 6.72 11/13/2016 CNY 40.30
NANTONG STATE-OWNED 6.72 11/13/2016 CNY 39.98
NINGBO CITY ZHENHAI 6.48 4/12/2017 CNY 70.10
NINGDE CITY STATE-OW 6.25 10/21/2017 CNY 41.01
NINGHAI COUNTY CITY 8.60 12/31/2017 CNY 74.79
NONGGONGSHANG REAL E 6.29 10/11/2017 CNY 72.24
OCEAN RIG UDW INC 7.25 4/1/2019 USD 42.00
OCEAN RIG UDW INC 7.25 4/1/2019 USD 41.00
PANJIN CONSTRUCTION 7.70 12/16/2016 CNY 40.70
PANJIN CONSTRUCTION 7.70 12/16/2016 CNY 41.01
QINGDAO CITY CONSTRU 6.19 2/16/2017 CNY 71.07
QINGDAO CITY CONSTRU 6.19 2/16/2017 CNY 70.98
QINGZHOU HONGYUAN PU 6.50 5/22/2019 CNY 38.36
QINGZHOU HONGYUAN PU 6.50 5/22/2019 CNY 40.40
QUNSHAN HUAQIAO INTE 7.98 12/30/2018 CNY 65.78
SHANDONG SHANSHUI CE 6.20 5/12/2017 CNY 50.40
SHANGHAI REAL ESTATE 6.12 5/17/2017 CNY 70.57
SHAOYANG CITY CONSTR 7.40 9/11/2018 CNY 74.02
SHENGZHOU HOTEL CO L 9.20 2/26/2016 CNY 100.30
SICHUAN DEVELOPMENT 5.40 11/10/2017 CNY 71.06
TAIZHOU CITY CONSTRU 6.90 1/25/2017 CNY 40.37
TIGER FOREST & PAPER 5.38 6/14/2017 CNY 74.72
TONGLIAO CITY INVEST 5.98 9/1/2017 CNY 68.00
TONGLIAO CITY INVEST 5.98 9/1/2017 CNY 71.38
URUMQI STATE-OWNED A 6.48 4/28/2018 CNY 74.00
WUXI COMMUNICATIONS 5.58 7/8/2016 CNY 50.17
WUXI COMMUNICATIONS 5.58 7/8/2016 CNY 50.56
WUXI HUISHAN SOFTWAR 9.00 3/19/2016 CNY 60.35
XIANGTAN JIUHUA ECON 6.93 12/16/2016 CNY 41.20
XIANGTAN JIUHUA ECON 6.93 12/16/2016 CNY 41.24
XIANGYANG CITY CONST 8.12 1/12/2019 CNY 66.06
XIANGYANG CITY CONST 8.12 1/12/2019 CNY 64.14
XIANYANG CITY CONSTR 7.90 12/9/2017 CNY 76.30
XINJIANG SHIHEZI DEV 7.50 8/29/2018 CNY 72.34
XINXIANG INVESTMENT 6.80 1/18/2018 CNY 73.20
XUZHOU XINSHENG CONS 7.48 5/8/2018 CNY 79.00
YANGZHOU ECONOMIC DE 6.10 7/7/2016 CNY 50.37
YANGZHOU ECONOMIC DE 5.80 5/12/2016 CNY 49.58
YANGZHOU ECONOMIC DE 6.10 7/7/2016 CNY 49.97
YANGZHOU URBAN CONST 5.94 7/23/2016 CNY 38.54
YANGZHOU URBAN CONST 5.94 7/23/2016 CNY 40.16
YANZHOU HUIMIN URBAN 8.50 12/28/2017 CNY 54.58
YIJINHUOLUOQI HONGTA 8.35 3/19/2019 CNY 74.60
YIJINHUOLUOQI HONGTA 8.35 3/19/2019 CNY 72.86
YINCHUAN URBAN CONST 6.28 3/9/2017 CNY 50.41
YIYANG CITY CONSTRUC 8.20 11/19/2016 CNY 41.44
YUNNAN INVESTMENT GR 5.25 8/24/2017 CNY 71.00
YUNNAN INVESTMENT GR 5.25 8/24/2017 CNY 69.82
ZHANGJIAGANG JINCHEN 6.23 1/6/2018 CNY 61.95
ZHUCHENG ECONOMIC DE 6.40 4/26/2018 CNY 61.72
ZHUCHENG ECONOMIC DE 6.40 4/26/2018 CNY 60.16
ZHUCHENG ECONOMIC DE 7.50 8/25/2018 CNY 40.72
ZIBO CITY PROPERTY C 5.45 4/27/2019 CNY 50.44
ZOUCHENG CITY ASSET 7.02 1/12/2018 CNY 41.94
INDONESIA
---------
BERAU COAL ENERGY TB 7.25 3/13/2017 USD 27.75
BERAU COAL ENERGY TB 7.25 3/13/2017 USD 25.58
GAJAH TUNGGAL TBK PT 7.75 2/6/2018 USD 59.25
GAJAH TUNGGAL TBK PT 7.75 2/6/2018 USD 59.73
INDONESIA TREASURY B 6.38 4/15/2042 IDR 72.97
PERUSAHAAN PENERBIT 6.10 2/15/2037 IDR 78.50
INDIA
-----
3I INFOTECH LTD 5.00 4/26/2017 USD 13.50
BLUE DART EXPRESS LT 9.30 11/20/2017 INR 10.15
BLUE DART EXPRESS LT 9.50 11/20/2019 INR 10.29
BLUE DART EXPRESS LT 9.40 11/20/2018 INR 10.22
COROMANDEL INTERNATI 9.00 7/23/2016 INR 15.75
GTL INFRASTRUCTURE L 4.03 11/9/2017 USD 29.75
JAIPRAKASH ASSOCIATE 5.75 9/8/2017 USD 69.56
JCT LTD 2.50 4/8/2011 USD 33.63
JSW STEEL LTD 4.75 11/12/2019 USD 67.25
PRAKASH INDUSTRIES L 5.25 4/30/2015 USD 20.13
PYRAMID SAIMIRA THEA 1.75 7/4/2012 USD 1.00
REI AGRO LTD 5.50 11/13/2014 USD 1.68
REI AGRO LTD 5.50 11/13/2014 USD 1.68
SVOGL OIL GAS & ENER 5.00 8/17/2015 USD 19.88
JAPAN
-----
AVANSTRATE INC 5.55 10/31/2017 JPY 32.38
AVANSTRATE INC 5.55 10/31/2017 JPY 37.00
ELPIDA MEMORY INC 0.70 8/1/2016 JPY 8.25
ELPIDA MEMORY INC 0.50 10/26/2015 JPY 8.38
ELPIDA MEMORY INC 2.03 3/22/2012 JPY 8.25
ELPIDA MEMORY INC 2.29 12/7/2012 JPY 8.25
ELPIDA MEMORY INC 2.10 11/29/2012 JPY 8.25
SHARP CORP/JAPAN 1.60 9/13/2019 JPY 78.75
SHARP CORP/JAPAN 2.07 3/19/2019 JPY 85.61
TAKATA CORP 0.58 3/26/2021 JPY 71.00
KOREA
-----
2014 KODIT CREATIVE 5.00 12/25/2017 KRW 30.95
2014 KODIT CREATIVE 5.00 12/25/2017 KRW 30.95
DONGBU STEEL CO LTD 5.00 3/9/2018 KRW 95.05
DOOSAN CAPITAL SECUR 20.00 4/22/2019 KRW 40.54
KIBO ABS SPECIALTY C 5.00 1/31/2017 KRW 32.66
KIBO ABS SPECIALTY C 5.00 3/29/2018 KRW 29.91
KIBO ABS SPECIALTY C 10.00 8/22/2017 KRW 27.15
KIBO ABS SPECIALTY C 10.00 9/4/2016 KRW 39.84
KIBO ABS SPECIALTY C 5.00 12/25/2017 KRW 29.65
KIBO ABS SPECIALTY C 10.00 2/19/2017 KRW 37.53
LSMTRON DONGBANGSEON 4.53 11/22/2017 KRW 30.53
PULMUONE CO LTD 2.50 8/6/2045 KRW 67.31
SINBO SECURITIZATION 5.00 1/15/2018 KRW 30.76
SINBO SECURITIZATION 5.00 1/15/2018 KRW 30.76
SINBO SECURITIZATION 5.00 2/11/2018 KRW 30.31
SINBO SECURITIZATION 5.00 2/11/2018 KRW 30.31
SINBO SECURITIZATION 5.00 3/12/2018 KRW 30.07
SINBO SECURITIZATION 5.00 3/12/2018 KRW 30.07
SINBO SECURITIZATION 5.00 1/30/2019 KRW 27.16
SINBO SECURITIZATION 5.00 1/30/2019 KRW 27.16
SINBO SECURITIZATION 5.00 10/30/2019 KRW 19.15
SINBO SECURITIZATION 5.00 7/24/2017 KRW 31.23
SINBO SECURITIZATION 5.00 7/24/2018 KRW 29.16
SINBO SECURITIZATION 5.00 7/24/2018 KRW 29.16
SINBO SECURITIZATION 5.00 5/27/2016 KRW 42.07
SINBO SECURITIZATION 5.00 5/27/2016 KRW 42.07
SINBO SECURITIZATION 5.00 6/7/2017 KRW 23.24
SINBO SECURITIZATION 5.00 6/7/2017 KRW 23.24
SINBO SECURITIZATION 5.00 7/8/2017 KRW 32.43
SINBO SECURITIZATION 5.00 7/8/2017 KRW 32.43
SINBO SECURITIZATION 5.00 6/29/2016 KRW 38.47
SINBO SECURITIZATION 5.00 7/26/2016 KRW 36.16
SINBO SECURITIZATION 5.00 8/29/2018 KRW 28.66
SINBO SECURITIZATION 5.00 8/29/2018 KRW 28.66
SINBO SECURITIZATION 5.00 8/31/2016 KRW 35.40
SINBO SECURITIZATION 5.00 6/27/2018 KRW 29.37
SINBO SECURITIZATION 5.00 6/27/2018 KRW 29.37
SINBO SECURITIZATION 5.00 9/26/2018 KRW 28.43
SINBO SECURITIZATION 5.00 9/26/2018 KRW 28.43
SINBO SECURITIZATION 5.00 9/26/2018 KRW 28.43
SINBO SECURITIZATION 5.00 3/18/2019 KRW 26.77
SINBO SECURITIZATION 5.00 3/18/2019 KRW 26.77
SINBO SECURITIZATION 5.00 3/14/2016 KRW 57.44
SINBO SECURITIZATION 5.00 8/16/2016 KRW 34.31
SINBO SECURITIZATION 5.00 8/16/2017 KRW 32.02
SINBO SECURITIZATION 5.00 8/16/2017 KRW 32.02
SINBO SECURITIZATION 5.00 12/25/2016 KRW 33.12
SINBO SECURITIZATION 5.00 3/13/2017 KRW 33.30
SINBO SECURITIZATION 5.00 10/1/2017 KRW 31.47
SINBO SECURITIZATION 5.00 10/1/2017 KRW 31.47
SINBO SECURITIZATION 5.00 10/1/2017 KRW 31.47
SINBO SECURITIZATION 5.00 10/5/2016 KRW 35.02
SINBO SECURITIZATION 5.00 10/5/2016 KRW 33.37
SINBO SECURITIZATION 5.00 12/13/2016 KRW 34.23
SINBO SECURITIZATION 5.00 12/23/2018 KRW 27.49
SINBO SECURITIZATION 5.00 12/23/2018 KRW 27.49
SINBO SECURITIZATION 5.00 12/23/2017 KRW 29.67
SINBO SECURITIZATION 5.00 3/13/2017 KRW 33.30
SINBO SECURITIZATION 5.00 1/29/2017 KRW 33.72
SINBO SECURITIZATION 5.00 2/21/2017 KRW 33.57
SINBO SECURITIZATION 5.00 2/21/2017 KRW 33.57
SINBO SECURITIZATION 5.00 2/27/2019 KRW 26.99
SINBO SECURITIZATION 5.00 2/27/2019 KRW 26.99
SINBO SECURITIZATION 5.00 8/31/2016 KRW 35.40
SINBO SECURITIZATION 5.00 7/26/2016 KRW 36.16
TONGYANG CEMENT & EN 7.30 6/26/2015 KRW 70.00
TONGYANG CEMENT & EN 7.50 4/20/2014 KRW 70.00
TONGYANG CEMENT & EN 7.30 4/12/2015 KRW 70.00
TONGYANG CEMENT & EN 7.50 9/10/2014 KRW 70.00
TONGYANG CEMENT & EN 7.50 7/20/2014 KRW 70.00
U-BEST SECURITIZATIO 5.50 11/16/2017 KRW 31.74
WISE MOBILE SECURITI 20.00 12/14/2018 KRW 71.81
SRI LANKA
---------
SRI LANKA GOVERNMENT 5.35 3/1/2026 LKR 66.63
MALAYSIA
--------
BANDAR MALAYSIA SDN 0.35 2/20/2024 MYR 71.02
BANDAR MALAYSIA SDN 0.35 12/29/2023 MYR 71.52
BIMB HOLDINGS BHD 1.50 12/12/2023 MYR 71.94
BRIGHT FOCUS BHD 2.50 1/22/2031 MYR 68.23
BRIGHT FOCUS BHD 2.50 1/24/2030 MYR 71.10
LAND & GENERAL BHD 1.00 9/24/2018 MYR 0.22
SENAI-DESARU EXPRESS 0.50 12/31/2038 MYR 67.36
SENAI-DESARU EXPRESS 0.50 12/31/2042 MYR 73.21
SENAI-DESARU EXPRESS 0.50 12/30/2039 MYR 69.16
SENAI-DESARU EXPRESS 0.50 12/31/2040 MYR 70.50
SENAI-DESARU EXPRESS 0.50 12/30/2044 MYR 75.37
SENAI-DESARU EXPRESS 0.50 12/31/2041 MYR 71.82
SENAI-DESARU EXPRESS 0.50 12/31/2043 MYR 74.40
SENAI-DESARU EXPRESS 1.35 6/30/2028 MYR 59.50
SENAI-DESARU EXPRESS 1.35 12/29/2028 MYR 58.33
SENAI-DESARU EXPRESS 1.10 6/30/2022 MYR 73.88
SENAI-DESARU EXPRESS 1.15 12/30/2022 MYR 72.52
SENAI-DESARU EXPRESS 1.15 6/30/2023 MYR 70.95
SENAI-DESARU EXPRESS 1.15 12/29/2023 MYR 69.43
SENAI-DESARU EXPRESS 1.15 6/28/2024 MYR 67.95
SENAI-DESARU EXPRESS 1.15 12/31/2024 MYR 66.49
SENAI-DESARU EXPRESS 1.15 6/30/2025 MYR 65.08
SENAI-DESARU EXPRESS 1.35 12/31/2025 MYR 65.18
SENAI-DESARU EXPRESS 1.35 6/30/2026 MYR 63.98
SENAI-DESARU EXPRESS 1.35 12/31/2026 MYR 62.87
SENAI-DESARU EXPRESS 1.35 6/30/2027 MYR 61.73
SENAI-DESARU EXPRESS 1.35 12/31/2027 MYR 60.64
SENAI-DESARU EXPRESS 1.35 6/29/2029 MYR 57.15
SENAI-DESARU EXPRESS 1.35 12/31/2029 MYR 55.98
SENAI-DESARU EXPRESS 1.35 6/28/2030 MYR 54.79
SENAI-DESARU EXPRESS 1.35 12/31/2030 MYR 53.60
SENAI-DESARU EXPRESS 1.35 6/30/2031 MYR 52.44
UNIMECH GROUP BHD 5.00 9/18/2018 MYR 1.07
PHILIPPINES
-----------
BAYAN TELECOMMUNICAT 13.50 7/15/2006 USD 22.75
BAYAN TELECOMMUNICAT 13.50 7/15/2006 USD 22.75
SINGAPORE
---------
AXIS OFFSHORE PTE LT 7.78 5/18/2018 USD 50.71
BAKRIE TELECOM PTE L 11.50 5/7/2015 USD 3.19
BAKRIE TELECOM PTE L 11.50 5/7/2015 USD 3.19
BERAU CAPITAL RESOUR 12.50 7/8/2015 USD 26.59
BERAU CAPITAL RESOUR 12.50 7/8/2015 USD 25.88
BLD INVESTMENTS PTE 8.63 3/23/2015 USD 7.50
BUMI CAPITAL PTE LTD 12.00 11/10/2016 USD 20.50
BUMI CAPITAL PTE LTD 12.00 11/10/2016 USD 17.49
BUMI INVESTMENT PTE 10.75 10/6/2017 USD 19.50
BUMI INVESTMENT PTE 10.75 10/6/2017 USD 17.27
ENERCOAL RESOURCES P 6.00 4/7/2018 USD 10.38
GOLIATH OFFSHORE HOL 12.00 6/11/2017 USD 8.50
INDO INFRASTRUCTURE 2.00 7/30/2010 USD 1.88
NEPTUNE ORIENT LINES 4.40 6/22/2021 SGD 71.00
ORO NEGRO DRILLING P 7.50 1/24/2019 USD 60.63
OSA GOLIATH PTE LTD 12.00 10/9/2018 USD 62.00
OTTAWA HOLDINGS PTE 5.88 5/16/2018 USD 48.20
OTTAWA HOLDINGS PTE 5.88 5/16/2018 USD 48.00
OTTO MARINE SERVICES 7.00 8/1/2016 SGD 75.00
SWIBER CAPITAL PTE L 6.50 8/2/2018 SGD 54.13
SWIBER CAPITAL PTE L 6.25 10/30/2017 SGD 64.50
SWIBER HOLDINGS LTD 7.13 4/18/2017 SGD 69.00
SWIBER HOLDINGS LTD 7.75 9/18/2017 CNY 65.63
TRIKOMSEL PTE LTD 5.25 5/10/2016 SGD 20.00
TRIKOMSEL PTE LTD 7.88 6/5/2017 SGD 20.00
THAILAND
--------
G STEEL PCL 3.00 10/4/2015 USD 3.74
MDX PCL 4.75 9/17/2003 USD 37.75
VIETNAM
-------
DEBT AND ASSET TRADI 1.00 10/10/2025 USD 48.00
DEBT AND ASSET TRADI 1.00 10/10/2025 USD 48.75
*********
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 2016. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000 or Nina Novak at 202-362-8552.
*** End of Transmission ***