/raid1/www/Hosts/bankrupt/TCRAP_Public/160928.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, September 28, 2016, Vol. 19, No. 192
Headlines
A U S T R A L I A
AUSDRILL LIMITED: Moody's Affirms B1 CFR; Changes Outlook to Pos.
BARMINCO HOLDINGS: Moody's Affirms B2 CFR; Outlook Positive
CAR PARKING: Goes Into Liquidation; 60 Jobs Axed
EMECO HOLDINGS: S&P Lowers CCR to 'CC'; Outlook Negative
RUSSELL-SMITH PTY: In Administration; Meeting Set For Oct. 4
C H I N A
BANK OF SUZHOU: Moody's Assigns Ba2 Deposit Ratings
I N D I A
AKSHAT ROLLER: Ind-Ra Withdraws IND BB+ Long-Term Issuer Rating
AMBIKA AGRO: CRISIL Suspends 'D' Rating on INR50MM Cash Loan
ANDHRA GINNING: CRISIL Suspends 'D' Rating on INR60MM Cash Loan
ANJANEYA RICE: ICRA Assigns 'B+' Rating to INR10cr Loan
ASSOCIATE HIGH: Ind-Ra Withdraws 'IND D' Long-Term Issuer Rating
ASSOCIATE HOLDINGS: Ind-Ra Withdraws 'IND D' LT Issuer Rating
BABA JHARESWAR: ICRA Assigns 'B' Rating to INR5.90cr Cash Loan
BALKRISHNA GINNING: CRISIL Reaffirms B+ Rating on INR175MM Loan
BHALKESHWAR SUGARS: ICRA Suspends 'D' Rating on INR89cr Loan
BHAWANI CONSTRUCTIONS: CRISIL Suspends 'D' Rating on INR70MM Loan
BSCC INFRASTRUCTURE: CRISIL Cuts Rating on INR130MM LT Loan to B-
CBS TECHNOLOGIES: Ind-Ra Withdraws 'IND B+' LT Issuer Rating
CHANDAK BROTHERS: Ind-Ra Withdraws 'IND B+' LT Issuer Rating
CHANDIGARH ROLLER: CRISIL Suspends B+ Rating on INR82.2MM Loan
CHOUDHARY LAYER: Ind-Ra Withdraws 'IND B+' LT Issuer Rating
DAULAT RAM: Ind-Ra Cuts Long-Term Issuer Rating to 'IND D'
ELECTROKINGS: CRISIL Suspends B+ Rating on INR50MM Bank Loan
GAJANAN UTTAMRAO: CRISIL Assigns 'B' Rating to INR100MM LT Loan
GRAVIT ENGINEERING: CRISIL Assigns 'B' Rating to INR50MM Loan
HIGH BREETD: CRISIL Suspends 'B+' Rating on INR45MM LT Loan
HOTEL DELITE: CRISIL Assigns B+ Rating to INR80MM Term Loan
INDIAN SUGAR: CRISIL Reaffirms 'D' Rating on INR437.9MM Loan
J.K. INTERNATIONAL: CRISIL Assigns 'B' Rating to INR45.5MM Loan
JAI MAHAKAL: CRISIL Raises Rating on INR57MM Term Loan to BB-
JAMKASH VEHICLEADES: CRISIL Reaffirms B+ Rating on INR126.5M Loan
KESHARDEO COMBINES: CRISIL Suspends B+ Rating on INR34MM Loan
KHAJA MOIDEEN: CRISIL Reaffirms B+ Rating on INR24.4MM Term Loan
KOYILI HOSPITAL: CRISIL Suspends 'B' Rating on INR162.5MM Loan
KRISHNAIAH MOTORS: ICRA Assigns 'B+' Rating to INR13cr LT Loan
MIDAS PETROCHEM: Ind-Ra Assigns 'IND BB' Long-Term Issuer Rating
PARAGON EXTRUSIONS: ICRA Suspends B-/A4 Rating on INR9.25cr Loan
PUNJAB SPINTEX: CRISIL Lowers Rating on INR250MM Loan to 'D'
R.D.GOEL: CRISIL Reaffirms 'B' Rating on INR65MM Cash Loan
RANGER COTTON: Ind-Ra Assigns 'IND B+' Long-Term Issuer Rating
RDC MOTOR: CRISIL Suspends 'B' Rating on INR80MM Cash Loan
RISHI TRADERS: CRISIL Suspends 'B' Rating on INR80MM Cash Loan
ROHARSH MOTORS: CRISIL Reaffirms B- Rating on INR170MM Cash Loan
SARVODAYA SUITINGS: CRISIL Reaffirms B+ Rating on INR325MM Loan
SATCHIDANANDA AGROTECH: CRISIL Suspends B- Cash Credit Rating
SATYAM RICE: CRISIL Suspends B+ Rating on INR45MM Cash Loan
SATYAMAHARSHI POWER: CRISIL Suspends 'D' Rating on INR100MM Loan
SAVANI EXPORTS: ICRA Suspends B+ LT Rating on INR10cr Loan
SELVEL ADVERTISING: ICRA Suspends D Rating on INR4.55cr Loan
SHIVAM JEWELMART: CRISIL Suspends B+ Rating on INR80MM Cash Loan
SHREE GOVARDHAN: ICRA Reaffirms B+ Rating on INR10cr Loan
SHRINE VAILANKANNI: CRISIL Reaffirms B+ Rating on INR120MM Loan
SIDDHI FORGE: CRISIL Lowers Rating on INR100MM Cash Loan to B+
SPANDAN MULTISPECIALITY: ICRA Suspends B+ INR6.43cr Loan Rating
SRI SAIBALAJI: CRISIL Suspends 'D' Rating on INR543.2MM Loan
SUFI STRUCTURAL: CRISIL Suspends 'C' Rating on INR60MM Cash Loan
TEJASWI MOTORS: ICRA Lowers Rating on INR20cr Loan to 'B'
UNIFOUR DEVELOPERS: CRISIL Assigns B+ Rating to INR95MM Loan
VALORA PLYWOOD: CRISIL Reaffirms B+ Rating on INR12.5MM Loan
VASISTA MARINE: Ind-Ra Assigns 'IND BB' Long-Term Issuer Rating
VINISHMA TECHNOLOGIES: ICRA Suspends B Rating on INR15cr Loan
* INDIA: To Shut Down 15 Loss-Making Public Sector Units
J A P A N
TAKATA CORP: To Sell US Unit to Cover Airbag Recall Costs
TAKATA CORP: Affected Carmakers Scrutinize Lifelines
N E W Z E A L A N D
DICK SMITH: Receivers' 6-Month Report Sheds Light On High Debts
S I N G A P O R E
PACIFIC ANDES: Court Extends Legal Action Moratorium to Oct. 12
S O U T H K O R E A
HANJIN SHIPPING: Vietnamese Exporters Seek Help After Bankruptcy
HANJIN SHIPPING: U.S. Judge Concerned with Speed of Restructuring
- - - - -
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A U S T R A L I A
=================
AUSDRILL LIMITED: Moody's Affirms B1 CFR; Changes Outlook to Pos.
-----------------------------------------------------------------
Moody's Investors Service has affirmed Ausdrill Limited's
corporate family rating at B1 and changed the rating outlook to
positive from negative. At the same time, Moody's has affirmed
the senior unsecured rating of Ausdrill Finance Pty Ltd. at B2.
The rating outlook was also changed to positive from negative.
RATINGS RATIONALE
"The positive outlook on Ausdrill reflects the improvement in the
company's credit quality, due to the considerable reduction in
its debt, the turnaround of its operations that are now
generating strong cash flows, and our expectations of further
earnings growth from new contracts," says Saranga Ranasinghe a
Moody's Assistant Vice President and Analyst.
While Moody's expects that the operating environment for mining
services will remain competitive and challenging, Ausdrill has
generated free cash flow in excess of Moody's previous
expectations and has used such cash to reduce its overall debt
levels.
Moody's points out that Ausdrill has reduced its refinancing risk
by lowering the debt levels that need to be refinanced. The
company paid down a total of AUD142 million of debt by paying off
its revolving credit facility and asset finance facilities - with
the asset finance facility totaling AUD500,000 for the fiscal
year ended June 30, 2016, leaving only the USD300 million of
unsecured notes due November 2019 to be refinanced.
The lower debt levels, as well as new contract wins - which have
resulted in a further improvement in earnings - have led Moody's
to expect that Ausdrill will maintain its credit metrics at
levels that are strong for its B1 CFR for the fiscal year ending
30 June 2017 (fiscal 2017), with adjusted debt to EBITDA likely
in the 2.5x-3.0x range; a stronger result than the tolerance set
for its B1 rating at 3.25x and below the 3.0x registered at end-
fiscal 2016.
The positive outlook on Ausdrill is underpinned by its high
exposure to the gold sector as a percentage of revenue. As a
mining services provider, Ausdrill is not directly impacted by
commodity prices. However, even under Moody's price expectations
for gold at USD1,250/oz over the next 12 months, which is lower
than the current spot price of USD1315/oz, the rating agency does
not expect the sector to curtail production. Such a situation
reduces the risk of Ausdrill losing contracts due to mine
shutdowns. However, the risk of mining companies bringing mining
operations in-house still exists, and represents a key risk to
the mining services sector and Ausdrill's rating.
In fiscal 2016, 47% of Ausdrill's revenue was generated in
Africa. With the increase in revenue from Africa from the new
contract wins, the exposure to jurisdictions subject to higher
sovereign risk or which demonstrate less-developed institutional
environments will also increase. Nevertheless, Moody's notes
that Ausdrill has a long track record of successfully operating
in these higher-risk jurisdictions.
WHAT COULD CHANGE THE RATING
Ausdrill's CFR could experience positive momentum if the company
continues to maintain a track record of strong cash flow
generation and improved earnings, such that adjusted debt/EBITDA
is sustained below 3.25x.
However, the CFR would likely be downgraded if the company cannot
sustain and improve on its countermeasures if operating
conditions deteriorate, despite Moody's expectations for
stabilization, and adjusted debt/EBITDA exceeds 4.25x.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in December 2014.
Ausdrill Limited was established in 1987 as a drill and blast
company in the Australian mining services sector. It has since
expanded into a vertically integrated provider of mining services
to the resources industry in Australia and Africa, with in-house
capabilities in manufacturing, logistics and supply.
BARMINCO HOLDINGS: Moody's Affirms B2 CFR; Outlook Positive
-----------------------------------------------------------
Moody's Investors Service has affirmed Barminco Holdings Pty
Limited's corporate family rating at B2 and changed the rating
outlook to positive from negative.
At the same time, Moody's has affirmed the B2 senior unsecured
rating of Barminco Finance Pty Ltd. The outlook on the rating is
positive.
RATINGS RATIONALE
"The positive outlook on Barminco's rating reflects the company's
improved credit profile, underpinned by reduced debt levels and
higher earnings from new contract wins," says Saranga Ranasinghe
a Moody's Assistant Vice President and Analyst.
While the operating environment for mining services remains
competitive and challenging, Moody's estimates Barminco generated
strong cashflows for the 12 months ended June 30, 2016, (fiscal
2016).
Moody's expects the recently announced large contract win at the
Kundana gold mine to add about 18% to the AUD492 million revenue
earned in fiscal 2015.
Barminco has also reduced its refinancing risk by lowering its
debt. Barminco reduced debt by USD179 million, bringing the
amount it needs to refinance by May 2018 to USD306 million.
Specifically, the company repurchased USD179 million of its US
dollar notes using the value held in a cross currency swap it
entered into at the time of issuance, as well as cash on hand.
Barminco's AUD-denominated debt declined only by the amount of
its cash-funded bond repurchases of around USD54.8 million.
The lower debt levels, as well as new contract wins - which have
resulted in a further improvement in earnings - have led Moody's
to expect that Barminco will maintain its credit metrics at
levels that are strong for its B2 rating.
Moody's expects adjusted debt to EBITDA to be in the range of
3.2x-3.8x in fiscal 2016 and improve further to below 3.5x in
fiscal 2017. This compares to 4.6x at the end of fiscal 2015.
The positive outlook on Barminco's rating is underpinned by its
high exposure to the gold sector as a percentage of revenue.
At the same time, Barmico's rating benefits from its strong
position and franchise in underground hard rock mining. Barminco
is estimated to have a leading market share in this niche segment
of mining services in Australia and Western Africa.
WHAT COULD CHANGE THE RATING
Barminco's CFR could experience positive momentum if it maintains
a track record of strong cash flow generation and improved
earnings, such that adjusted debt/EBITDA is sustained below
4.25x.
However the outlook would likely reverse to negative in the
absence of a clear refinancing plan for the 2018 bond maturity by
early 2017. The CFR would likely be downgraded if market
conditions deteriorate beyond our current expectations, further
hindering Barminco's revenue and earnings-generation ability, and
leading to its adjusted debt/EBITDA ratio rising above 5.25x-
5.50x on a consistent basis.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in December 2014.
Barminco is a market leader in underground hard rock contract
mining in Australia and Africa.
CAR PARKING: Goes Into Liquidation; 60 Jobs Axed
------------------------------------------------
Mark Pownall at BusinessNews reports that Car Parking Solutions
has gone into liquidation.
While the business has its headquarters in Victoria, its
ownership has a distinctly Western Australian flavor, with Perth-
based Bob Candler and former Perth resident Leon Weston having
started the WA branch in 2008 and bought out the national
operation in 2008, BusinessNews discloses.
According to BusinessNews, Mr. Weston has run the business from
Melbourne, where it is understood about 60 people lost their jobs
mid-September after the appointment of liquidators Glen Kanevsky
and Sal Algeri of Deloitte Restructuring Services partners.
BusinessNews relates that Deloitte said the business ceased
trading as a result of a recent change in available working
capital.
"A number of customer contracts and projects are in varying
stages of completion around Australia, including some in WA," the
report quotes a Deloitte spokesperson as saying.
According to the report, the liquidators are considering a
potential sale of the maintenance and service arm of the
business.
Car Parking Solutions was a motor vehicle stacking business.
EMECO HOLDINGS: S&P Lowers CCR to 'CC'; Outlook Negative
--------------------------------------------------------
S&P Global Ratings said that it had lowered its corporate credit
rating on Australia-based mining equipment rental company EMECO
Holdings Ltd. to 'CC', from 'CCC'. The outlook is negative.
At the same time, S&P lowered the senior secured debt issue
rating to 'CC', from 'CCC'. The recovery rating on the senior
secured notes remains unchanged at '3'.
"We have lowered the ratings on Emeco because the company has
announced that it has signed a binding restructuring support
agreement with certain financiers. The agreement establishes a
framework for the proposed recapitalization of Emeco, which would
include a debt-for-equity swap for the senior secured
noteholders," said S&P Global Ratings credit analyst Sam
Heffernan.
In accordance with S&P's criteria for distressed debt exchange,
it believes that this proposed transaction would result in the
noteholders receiving less than the promise of the original
securities. In the absence of this offer, there was a realistic
possibility of a conventional default on the senior secured
notes.
The proposed transaction will merge Emeco with equipment rental
companies Orionstone and Andy's Earthmover's. The debt-for-
equity swap will compromise and extinguish the claims of
noteholders and Orionstone's and Andy's creditors in exchange for
the companies' share of 54% of ordinary shares in the combined
group. In addition, the group will assume A$473 million of
senior secured notes with a five-year maturity and interest rate
of 9.25%. As part of the transaction, Emeco expects to refinance
its current asset-backed loan facility with an expiry date in
December 2017.
Mr. Heffernan added: "The negative outlook reflects the
likelihood that we will lower the rating to 'SD' (selective
default) following the completion of a creditors' scheme of
arrangement in December 2016 and Emeco's proposed transaction
with its lenders."
RUSSELL-SMITH PTY: In Administration; Meeting Set For Oct. 4
------------------------------------------------------------
Eloise Keating at SmartCompany reports that Russell-Smith Pty Ltd
has ceased trading, after being placed in the hands of external
managers at the end of last year.
Stewart Free and Bradd Morrelli from Jirsch Sutherland were
appointed as voluntary administrators to Russell-Smith on
September 22.
It comes only two years after the company's former parent
company, PSG Russell Smith, fell into receivership, SmartCompany
relates.
SmartCompany, citing the ABC, says the Tasmanian arm of PSG was
purchased and renamed Russell-Smith in June 2014, and the company
hired a group of former PSG workers.
According to SmartCompany, Jirsch Sutherland said on September 26
that a licence agreement had been secured to enable part of the
company to continue trading throughout the voluntary
administration, which would mean some employees would retain
their jobs.
However, in an update provided to SmartCompany on September 27,
Free and Morrelli said "an assessment has been made of the
company's capacity to continue to trade".
As a result, around 20 employees have been made redundant and the
administrators said they are now working to "quantify outstanding
employee entitlements".
SmartCompany understands at its peak, the company employed as
many as 200 workers.
There have been reports that large numbers of employees have
resigned from the company over recent months due to unpaid
entitlements, with one electrician telling the ABC that staff
knew something was amiss, says SmartCompany.
"All of us have known in the back of our minds since literally
the end of February that this was coming," the report quotes
Charlie Warren as saying. "To get an answer from anybody in
management about what was happening, where we're going, how we're
going to get out of where we are, just wasn't forthcoming and
it's just been so frustrating."
SmartCompany relates that Jirsch Sutherland said it will be
providing information to employees about how they can claim
unpaid entitlements under the Federal Government's Fair
Entitlements Guarantee scheme, and will work with the Tasmanian
Department of Growth's skills response unit to provide
information about additional support services.
On September 26, administrator Stewart Free said while an
assessment into the reasons for the company's collapse was still
ongoing, "we were advised that the termination of a major
contract this week was a contributing factor".
SmartCompany relates that the administrators said they will be
"exploring the possibility of a sale of the business, in whole or
in part" and interested parties should contact Jirsch Sutherland
directly.
The first meeting of creditors is expected to be held on
October 4, adds SmartCompany.
Russell-Smith Pty Ltd is a Tasmania-based electrical and
communications company.
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C H I N A
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BANK OF SUZHOU: Moody's Assigns Ba2 Deposit Ratings
---------------------------------------------------
Moody's Investors Service has assigned Ba2 long-term and NP
short-term local currency and foreign currency issuer and deposit
ratings, a ba3 baseline credit assessment (BCA) and Adjusted BCA,
as well as a Ba1(cr)/NP(cr) Counterparty Risk Assessment (CR
Assessment) to Bank of Suzhou Co., Ltd. (Bank of Suzhou).
This is the first time that Moody's has assigned ratings to Bank
of Suzhou.
Bank of Suzhou's Ba2 long-term issuer ratings and deposit ratings
reflect the bank's BCA of ba3 and a one-notch uplift based on
Moody's assumption of a moderate level of government support.
The ratings outlook is stable, as the one-notch uplift included
in the ratings is not affected by the negative outlook on China's
Aa3 sovereign rating.
RATINGS RATIONALE
Bank of Suzhou's BCA of ba3 reflects its increasing level of
asset quality pressure, relatively weak profitability, and
decreasing capital ratio. The BCA also considers its growing
deposit base and adequate liquid resources.
Bank of Suzhou officially opened in September 2010 through the
transformation of the previous Jiangsu Dongwu Rural Commercial
Bank Co., Ltd. (unrated).
The bank reported a non-performing loan (NPL) ratio of 1.48% and
special-mention loan (SML) ratio of 3.72% at end-2015, up from
1.37% and 1.06% respectively at end-2014.
Moody's believes that its asset quality will continue to weaken
as a result of: 1) its focus on lending to SMEs in Jiangsu
Province, and these businesses are highly sensitive to China's
economic slowdown; 2) its relatively high concentration on
lending to the high risk manufacturing sector when compared with
Moody's rated peers; and 3) its rapid asset growth in the past
few years, which has exposed the bank to unseasoned risk.
Even though Bank of Suzhou's 2.79% net interest margin in 2015
was high for Moody's rated peers, the bank's overall
profitability was still weak compared with those peers, impacted
negatively by its low contribution of fee and commission income
and increasing credit costs.
Despite increasing non-interest income, the percentage of its fee
income to total income was only 10.7% in 2015. Impairment
charges increased 85% year-over-year in 2015 against the backdrop
of moderating Chinese economic growth.
Bank of Suzhou reported a Common Equity Tier 1 ratio of 10.67% at
end-2015, down from 11.68% in 2014 and 14.05% in 2013. Although
asset growth slowed in 2015, its capital base will be challenged
on an ongoing basis by its relatively low internal capital
generation capability.
On the other hand, its funding structure is stable with strong
deposit growth.
Originating as a rural commercial bank, it has an established
network in the township areas. Its franchise in the city is also
improving as it is the only city commercial bank incorporated in
Suzhou.
Its deposit base exhibited a Compound Annualized Growth Rate of
23% from 2012 to 2015, both as a result of its expansion in other
areas of Jiangsu Province and its improving market shares in
Suzhou.
Bank of Suzhou's liquid resources were also adequate to cover its
market funds at end 2015.
Moody's believes Bank of Suzhou will receive a moderate level of
government support in times of need, given its status as the only
city commercial bank incorporated in Suzhou and the role that it
plays in the development of Suzhou, a city with a GDP of
RMB1.45 trillion in 2015 and a population of 10.6 million.
Furthermore, the total shareholding held by Suzhou state-owned
entities accounted for 27.1% of the bank's shares at end-June
2016, including 10.0% held by Suzhou International Development
Group Co., Ltd. (unrated), a state-owned financial holding
company established in Suzhou.
However, its franchise is still limited at this moment on a
national level, despite a deposit market share of 4-5% in Suzhou
at end-2015, barring it from a higher level of government
support.
WHAT COULD CHANGE THE RATING - UP
Bank of Suzhou's deposit ratings incorporate a moderate level of
government support and is unlikely to rise further, particularly
in view of the negative outlook on the Chinese sovereign rating.
Its BCA is unlikely to rise as well due to the weakening
operating environment. However, its BCA could experience upward
pressure if (1) its operating environment, as measured by China
banking industry's Macro Profile, improves; (2) its asset
quality, as measured by new problem loan formation, and
profitability, as measured by return on average assets, remain
resilient despite slower economic growth; and (3) its capital
strengthens, such that its Common Equity Tier 1 capital ratio
improves.
WHAT COULD CHANGE THE RATING - DOWN
Bank of Suzhou's BCA could experience downward pressure if (1)
its operating environment weakens materially, i.e. if China's
economic growth continues to slow, or corporate financial
leverage continues to rise; (2) its asset quality and
profitability weaken materially; or (3) its capital weakens.
In addition, given the one-notch uplift incorporated in the
bank's deposit ratings, any indication of reduced support from
the government would be negative.
CR ASSESSMENT
Bank of Suzhou's CR Assessment is positioned, prior to government
support, at one notch above the Adjusted BCA, reflecting Moody's
view that its probability of default is lower than those of
senior unsecured debt and deposits in the absence of government
support.
The CR Assessments also benefit from one-notch of government
support, broadly in line with Moody's support assumptions on
deposits. This reflects Moody's view that any support provided
by governmental authorities to a bank, which benefits deposits,
is very likely to benefit operating activities and obligations
reflected by the CR Assessment as well, consistent with Moody's
belief that governments are likely to maintain such operations as
a going-concern in order to reduce contagion and preserve a
bank's critical functions.
The principal methodology used in these ratings was Banks
published in January 2016.
Bank of Suzhou Co., Ltd. is headquartered in Suzhou, Jiangsu
Province. It reported assets totaling RMB231 billion
(approximately USD35.6 billion) at end-2015.
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I N D I A
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AKSHAT ROLLER: Ind-Ra Withdraws IND BB+ Long-Term Issuer Rating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Akshat Roller
Flour Mills Pvt Ltd's (ARFMPL) 'IND BB+(suspended)' Long-Term
Issuer Rating.
The ratings have been withdrawn due to lack of information.
Ind-Ra will no provide ratings or analytical coverage for ARFMPL.
Ind-Ra suspended ARFMPL's ratings on 25 February 2016.
ARFMPL's ratings:
-- Long-Term Issuer Rating: 'IND BB+(suspended)'; rating
withdrawn
-- INR7.2 million term loan 1: 'IND BB+(suspended)'; rating
withdrawn
-- INR11.7 million term loan 2: 'IND BB+(suspended)'; rating
withdrawn
-- INR170 million fund-based limits: 'IND BB+(suspended)'/
'IND A4+(suspended)'; ratings withdrawn
AMBIKA AGRO: CRISIL Suspends 'D' Rating on INR50MM Cash Loan
------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of M/s.
Ambika Agro Industries.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL D
Term Loan 30 CRISIL D
The suspension of ratings is on account of non-cooperation by AAI
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, AAI is yet to
provide adequate information to enable CRISIL to assess AAI's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL views information availability risk as a key
factor in its assessment of credit risk.
AAI, based in Akola (Maharashtra), is promoted by Mr. Jugal
Kishore Atal and his family members. It undertakes ginning and
pressing of raw cotton at its unit, which was set up in 2003. AAI
has set up a cotton oil extraction unit in 2013.
ANDHRA GINNING: CRISIL Suspends 'D' Rating on INR60MM Cash Loan
---------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Andhra Ginning Lane Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 60 CRISIL D
Term Loan 50 CRISIL D
The suspension of ratings is on account of non-cooperation by
AGLPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, AGLPL is yet to
provide adequate information to enable CRISIL to assess AGLPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL views information availability risk as a key
factor in its assessment of credit risk.
AGLPL was established in 2008 by Mr. Kunkalaguntla Gopi Krishna
and Mrs. Kunkalaguntla Pallavi. The company, based in Guntur
(Andhra Pradesh), is primarily engaged in ginning and pressing of
raw cotton; it also trades in cotton.
ANJANEYA RICE: ICRA Assigns 'B+' Rating to INR10cr Loan
-------------------------------------------------------
ICRA has assigned a long-term rating of [ICRA]B+ to INR10.00
crore fund based limits of Anjaneya Rice Industries.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits-CC 10.00 [ICRA]B+ assigned
The rating considers, the modest financial risk profile of the
firm characterized by low net margin of 1.56%, high gearing of
2.8 times as on March 31, 2016 and high working capital intensity
of the business, owing to high inventory requirements due to
seasonal availability of paddy. The rating also factor in
constrained liquidity position marked by high working capital
intensity, negative operating cash flows and high utilization of
working capital limits. The rating are also constrained by
volatility of prices in the export market, high competition in
the Kerala boiled rice market post the reduction of levy
percentage from 25% to 0% in October 2015, risks in terms of
policy decisions of the Government in terms of Minimum Support
Price (MSP) for paddy, export quota, etc., and risks arising from
the partnership nature of the firm. The ratings, however,
favourably factor in the experience of the promoters in the rice
industry and presence of the firm in a major rice growing area
providing easy availability of paddy.
Going forward, ability of the firm to improve its scale of
operations, margins and accruals with effective management of
working capital requirements is the key rating sensitivity.
Anjaneya Rice Industries was established as a partnership firm in
2009. The company is engaged in the milling of paddy and produces
raw and boiled rice. It is managed by Mr. Voruganti
Venkateshwarlu (Managing Partner). The installed capacity of the
plant is 8TPH and is located at Miryalaguda in Nalgonda District
of Telangana.
Recent Results
According to unaudited financials of FY2016, the firm has
reported an operating income of INR32.56 crore with net profit of
INR 0.51 crore as against operating income of INR 35.08 with net
profit of INR 0.12 crore in FY2015.
ASSOCIATE HIGH: Ind-Ra Withdraws 'IND D' Long-Term Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Associate High
Pressure Technologies Pvt Ltd's (AHPT) 'IND D(suspended)' Long-
Term Issuer Rating.
The ratings have been withdrawn due to lack of information. Ind-
Ra will no provide ratings or analytical coverage for AHPT.
Ind-Ra suspended AHPT's ratings on 2 March 2016.
AHPT's ratings:
-- Long-Term Issuer Rating: 'IND D(suspended)'; rating
withdrawn
-- INR428.5 million term loan: Long-term 'IND D(suspended)';
rating withdrawn
-- INR237.4 million fund-based working capital term loan:
Long-term 'IND D(suspended)'; rating withdrawn
-- INR141.6 million fund-based funded interest term loan:
Long-term 'IND D(suspended)'; rating withdrawn
-- INR150 million fund-based packing credit: Long-term
'IND D(suspended)' ; rating withdrawn
ASSOCIATE HOLDINGS: Ind-Ra Withdraws 'IND D' LT Issuer Rating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Associate
Holdings Private Limited's 'IND D(suspended)' Long-Term Issuer
Rating. The agency has also withdrawn the 'IND D(suspended)'
rating on the company's INR210 million term loans.
The ratings have been withdrawn due to lack of information. Ind-
Ra will no provide ratings or analytical coverage for AHPL.
Ind-Ra suspended AHPL's ratings on March 2, 2016.
BABA JHARESWAR: ICRA Assigns 'B' Rating to INR5.90cr Cash Loan
--------------------------------------------------------------
ICRA has assigned a long term rating of [ICRA]B to the INR 9.85
crore1 fund based facilities of Baba Jhareswar Multipurpose
Himghar Private Limited. ICRA has also assigned a short term
rating of [ICRA]A4 to the INR 0.15 crore non fund based
facilities of BJMHPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limit-
Term Loan 2.80 [ICRA]B assigned
Fund Based Limit-
Cash Credit 5.90 [ICRA]B assigned
Fund Based Limit-
Working Capital
Loan 0.85 [ICRA]B assigned
Fund Based Limit-
Untied limit 0.30 [ICRA]B assigned
Non Fund Based
Limit-Bank Guarantee 0.15 [ICRA]A4 assigned
Rating Rationale
The assigned ratings take into account BJMHPL's small scale of
current operations and its weak financial risk profile as
reflected by low profits, high gearing and depressed level of
coverage indicators. The ratings also consider significant debt
repayment obligations of the company, going forward. Besides, the
company has high working capital intensive nature of operations
due to the upfront advances it extend to the farmers at the time
of loading of potatoes, which exert pressure on the liquidity
position. The ratings are further constrained by the regulated
nature of the industry, making it difficult to pass on any
increase in operating costs, putting pressure on the
profitability. BJMHPL is also exposed to agro-climatic risks as
its business performance depends entirely upon a single agro
commodity, i.e. potato. ICRA notes that the company also remains
exposed to the counterparty risk due to the loans extended to the
farmers, given the chances of default if potato prices fall
significantly.
The ratings, however, derive comfort from the experience of the
promoters in the industry and locational advantage of BJMHPL, as
its cold storage unit is in West Medinipur, a district where a
large volume of potato is produced.
In ICRA's opinion, the ability of the company to improve its
profitability as well as cash accruals while managing its working
capital requirements efficiently would be the key rating
sensitivities, going forward.
Baba Jhareswar Multipurpose Himghar Private Limited (BJMHPL) had
set up its cold storage unit in West Medinipur, West Bengal in
2012 to carry out the business of storage and preservation of
potatoes. BJMHPL has a storage capacity of 17,955 metric tonnes
(MT).
Recent Results
During 2015-16, BJMHPL posted a net profit of INR 0.03 crore
(provisional) on an operating income of INR2.60 crore
(provisional). The company reported a net profit of INR 0.06
crore on an operating income of INR 2.19 crore in 2014-15.
BALKRISHNA GINNING: CRISIL Reaffirms B+ Rating on INR175MM Loan
---------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Balkrishna
Ginning and Pressing Factory continues to reflect the firm's
below-average financial risk profile because of modest networth
and weak debt protection metrics, and its susceptibility to
regulatory changes. These weaknesses are partially offset by the
extensive experience of the firm's promoters in the cotton
ginning industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 175 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 25 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes BGPF will continue to benefit from its promoters'
industry experience. The outlook may be revised to 'Positive' if
the firm strengthens its capital structure backed by higher
accretion or infusion of capital by partners, or if it registers
significantly higher than expected revenue growth. The outlook
may be revised to 'Negative' if BGPF undertakes large, debt-
funded capital expenditure (capex), or if its working capital
management weakens, leading to deterioration in its already weak
financial risk profile.
Update
Sales grew 5% in fiscal 2016 over the previous fiscal, to INR1.13
billion, driven by increased volume. Net profit was INR1.3
million in fiscal 2016, against INR2.7 million in fiscal 2015.
Operating margin moderated to 1.8% in fiscal 2016 from 2.2% in
the previous fiscal on account of intensifying competition and
lower realization. Working capital requirement remained moderate,
indicated by gross current assets (GCAs) of 79 days as on March
31, 2016, against 75 days a year earlier. CRISIL expects the
business risk profile to remain stable over the medium term,
supported by its promoters' industry experience.
BGPF's capital structure remained weak, reflected in high gearing
of 3.18 times as on March 31, 2016 (3.03 times a year earlier),
mainly on account of a small networth of INR57.5 million. Debt
protection metrics remained average, and net cash accrual to
total debt and interest coverage ratios are estimated at 0.01
time and 1.2 times, respectively, in fiscal 2016. Liquidity
should remain moderate as the firm has no long-term debt and has
no debt-funded capex plan. Bank limit utilisation remains
moderate, averaging 73% over the 12 months through June 2016.
CRISIL expects BGPF's gearing to remain high, at around 3 times,
over the medium term because of incremental working capital debt.
BGPF reported a profit after tax (PAT) of INR1.3 million on net
sales of INR1.13 billion for fiscal 2016, against a PAT of INR2.7
million on net sales of INR1.07 billion for fiscal 2015.
BGPF was set up as a partnership firm in 1999 by Mr. Arvind
Raichura and his family. The firm gins and presses raw cotton to
make cotton bales, and manufactures cotton seed wash oil, cotton
seed linter, and de-oiled cakes.
BHALKESHWAR SUGARS: ICRA Suspends 'D' Rating on INR89cr Loan
------------------------------------------------------------
ICRA has suspended the long term rating of [ICRA]D assigned to
INR 89.00 crore term loans and INR6.50 crore unallocated limits
Bhalkeshwar Sugars Limited. The suspension follows ICRA's
inability to carry out a rating surveillance due to non
cooperation from the company and is in line with ICRA's policy on
withdrawal and suspension.
BSL was incorporated in 2000 and is promoted by Mr. Prakash
Khandre. The company operates 2500 TCD sugar plant and 14 MW
cogeneration unit in Bhalki in Bidar district of North Karnataka.
BHAWANI CONSTRUCTIONS: CRISIL Suspends 'D' Rating on INR70MM Loan
-----------------------------------------------------------------
CRISIL has suspended its rating on the bank facility of Bhawani
Constructions Private Limited.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Rupee Term Loan 70 CRISIL D
The suspension of ratings is on account of non-cooperation by
BCPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, BCPL is yet to
provide adequate information to enable CRISIL to assess BCPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL views information availability risk as a key
factor in its assessment of credit risk.
BCPL, based in Kolkata (West Bengal) was set up in 1986 by Mr.
Ashok Kumar Lakhotia and his wife, Mrs. Punam Devi Lakhotia. The
company is involved in construction and development of
residential and commercial complexes in Kolkata and Odisha.
BSCC INFRASTRUCTURE: CRISIL Cuts Rating on INR130MM LT Loan to B-
-----------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of BSCC Infrastructure Private Limited to 'CRISIL B-/Stable' from
'CRISIL B+/Stable' and reaffirmed the short-term rating at
'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 60 CRISIL A4 (Reaffirmed)
Cash Credit 15 CRISIL B-/Stable (Downgraded
from 'CRISIL B+/Stable')
Long Term Loan 5 CRISIL B-/Stable (Downgraded
from 'CRISIL B+/Stable')
Proposed Long Term 130 CRISIL B-/Stable (Downgraded
Bank Loan Facility from 'CRISIL B+/Stable')
The downgrade reflects significant time and cost overruns in
execution of projects leading to significantly lower-than-
expected turnover in fiscal 2016. Hence, work-in-progress
inventory was high as on March 31, 2016, resulting in weakening
of liquidity. The downgrade also factors in a highly concentrated
and limited order book, giving low revenue visibility.
The ratings reflect a modest scale of operations and a weak order
book. These rating weaknesses are partially offset by the
extensive experience of the company's promoters in the
construction business.
Outlook: Stable
CRISIL believes BSCC will continue to benefit over the medium
term from the extensive industry experience of its promoters. The
outlook may be revised to 'Positive' in case of a significant
increase in orders, timely execution of the current order book,
and efficient management of working capital requirement. The
outlook may be revised to 'Negative' in case of low cash accrual
or a substantial increase in working capital requirement,
resulting in significant weakening of the company's financial
risk profile, particularly liquidity.
BSCC, promoted by Mr. Bharatbhai S Chaudhary, is a civil
contractor based in Mehsana, Gujarat. It was originally set up as
a partnership firm, which was reconstituted as a private
limitedcompany in 2011. The company primarily undertakes
construction works, but is also a distributor of BSNL pre-paid
cards and SIM cards (contributing revenue of INR25-35 million per
fiscal).
For fiscal 2016, profit after tax (PAT) was INR3.45 million on
operating income of INR8.11 million vis-a-vis PAT of INR2.0
million on operating income of INR7.15 million in fiscal 2015.
CBS TECHNOLOGIES: Ind-Ra Withdraws 'IND B+' LT Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn CBS
Technologies Pvt Ltd's 'IND B+(suspended)' Long-Term Issuer
Rating.
The ratings have been withdrawn due to lack of information. Ind-
Ra will no provide ratings or analytical coverage for CBS
Technologies.
Ind-Ra suspended the company's ratings on 1 March 2016.
CBS Technologies' ratings:
-- Long-Term Issuer Rating: 'IND B+(suspended)'; rating
withdrawn
-- INR4.6 million term loan: 'IND B+(suspended)'; rating
withdrawn
-- INR32.5 million fund-based limits: 'IND B+(suspended)'/
'IND A4(suspended)'; ratings withdrawn
-- INR18 million non-fund-based limits: 'IND A4(suspended)';
rating withdrawn
CHANDAK BROTHERS: Ind-Ra Withdraws 'IND B+' LT Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Chandak
Brothers' 'IND B+(suspended)' Long-Term Issuer Rating.
The ratings have been withdrawn due to lack of information. Ind-
Ra will no provide ratings or analytical coverage for Chandak.
Ind-Ra suspended Chandak's ratings on 1 March 2016.
Chandak's ratings:
-- Long-Term Issuer Rating: 'IND B+(suspended)'; rating
withdrawn
-- INR264 million fund-based limits: 'IND B+(suspended)'/'IND
A4(suspended)'; ratings withdrawn
-- INR84 million non-fund-based limits: 'IND A4(suspended)';
rating withdrawn
CHANDIGARH ROLLER: CRISIL Suspends B+ Rating on INR82.2MM Loan
--------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of
Chandigarh Roller Flour Mills Private Limited.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 42.8 CRISIL B+/Stable
Term Loan 82.2 CRISIL B+/Stable
The suspension of ratings is on account of non-cooperation by
CRFMPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, CRFMPL is yet
to provide adequate information to enable CRISIL to assess
CRFMPL's ability to service its debt. The suspension reflects
CRISIL's inability to maintain a valid rating in the absence of
adequate information. CRISIL views information availability risk
as a key factor in its assessment of credit risk.
Incorporated in March 2013 by the Chandigarh-based Mittal family,
CRFMPL is setting up a wheat-processing unit with a grinding
capacity of 150 tonnes per day at Banur, Punjab. The unit will
process maida, wheat, and bran. The operations of the company are
managed by the promoters, Mr. Vinod Mittal and his son, Mr. Udit
Mittal.
CHOUDHARY LAYER: Ind-Ra Withdraws 'IND B+' LT Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Choudhary Layer
Farm's (CLF) 'IND B+(suspended)' Long-Term Issuer Rating.
The ratings have been withdrawn due to lack of information. Ind-
Ra will no provide ratings or analytical coverage for CLF.
Ind-Ra suspended CLF's ratings on 1 March 2016.
CLF's ratings:
-- Long-Term Issuer Rating: 'IND B+(suspended)'; rating
withdrawn
-- INR17 million fund-based limits: 'IND B+(suspended)'/'IND
A4(suspended)'; ratings withdrawn
-- INR53.75 million term-loan: 'IND B+(suspended)'; rating
withdrawn
DAULAT RAM: Ind-Ra Cuts Long-Term Issuer Rating to 'IND D'
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Daulat Ram
Industries' (DRI) Long-Term Issuer Rating to 'IND D' from 'IND
BB-'. The Outlook was Stable.
KEY RATING DRIVERS
The downgrade reflects delay of up to 12 days in servicing of
term loans by the company during the four months ended August
2016, due to stretched liquidity on delayed collection of
receivables.
RATING SENSITIVITIES
Positive: Timely debt servicing for at least three consecutive
months could result in a positive rating action.
COMPANY PROFILE
Established in 1973, DRI is a Bhopal-based partnership firm. It
manufactures air conditioners, dynamic brake resistors and its
accessories primarily for the Indian Railways. The firm's revenue
is INR631 million according to FY16 provisional numbers.
DRI's Ratings:
-- Long-Term Issuer Rating: downgraded to 'IND D' from
'IND BB-'/Stable
-- INR54.72 million term loan (reduced from INR75.2 million):
downgraded to Long-term 'IND D' from 'IND BB-'/Stable
-- INR170 million fund-based working capital limit: downgraded
to Long-term/Short term 'IND D' from 'IND BB-'/Stable/
IND A4+
-- INR35 million Inland letter of credit limit: downgraded to
Short-term 'IND D' from 'IND A4+'
-- INR15 million bank Guarantee (increased from 12.5) :
downgraded to Short-term 'IND D' from 'IND A4+'
ELECTROKINGS: CRISIL Suspends B+ Rating on INR50MM Bank Loan
------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of
Electrokings.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Bank Guarantee 50 CRISIL B+/Stable
Proposed Cash Credit Limit 30 CRISIL B+/Stable
The suspension of ratings is on account of non-cooperation by
Electrokings with CRISIL's efforts to undertake a review of the
ratings outstanding. Despite repeated requests by CRISIL,
Electrokings is yet to provide adequate information to enable
CRISIL to assess Electrokings's ability to service its debt. The
suspension reflects CRISIL's inability to maintain a valid rating
in the absence of adequate information. CRISIL views information
availability risk as a key factor in its assessment of credit
risk.
Established in 1990, Electrokings is based in Jhorhat (Assam) and
is engaged in the business of supply, erection, and commissioning
of electrical components. Its day-to-day operations are managed
by the promoter Mr. Rajkumar Borthakur.
GAJANAN UTTAMRAO: CRISIL Assigns 'B' Rating to INR100MM LT Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facility of Gajanan Uttamrao Mante (GUM; part of the Apratim
group).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 100 CRISIL B/Stable
The rating reflects the group's exposure to risks related to
implementation and saleability of its ongoing project accentuated
by initial stage of project implementation resulting in low
booking and susceptibility to cyclicality inherent in the Indian
real estate industry. These weaknesses are partially offset by
the extensive experience of promoter and their funding support.
For arriving at its rating, CRISIL has combined the business and
financial risk profiles of Sadanand Laxmanrao Patil (SLP) and
GUM. This is because the two firms, together referred to as the
Apratim group, have a common management and are executing a
single real estate project.
Outlook: Stable
CRISIL believes the Apratim group will benefit over the medium
term from the extensive experience of promoters. The outlook may
be revised to 'Positive' if healthy sales of units and timely
receipt of customer advances and implementation of project lead
to healthy cash inflow. Conversely, the outlook may be revised to
'Negative' if time and cost overruns, lower-than-expected sales,
or delays in receipt of customer advances lead to low cash
inflow, thus impacting liquidity.
SLP and GUM were established in 2007 by Pune (Maharashtra)-based
entrepreneurs Mr. Sadanand Laxmanrao Patil and Mr. Gajanan
Uttamrao Mante, who have been in the real estate business for
about 10 years.
GRAVIT ENGINEERING: CRISIL Assigns 'B' Rating to INR50MM Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to
the bank facilities of Gravit Engineering Works.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 20 CRISIL A4
Cash Credit 50 CRISIL B/Stable
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of GEW and Gravit Onsite JV India (GOI).
This is because both the firms, together referred to as the
Gravit group, are promoted by the same family and have common
management, and derive considerable operational and business
synergies between themselves.
The ratings reflect group's modest scale of operations, large
working capital requirements. These weaknesses are partially
offset by promoters' extensive experience in the civil
construction industry and moderate financial risk profile.
Outlook: Stable
CRISIL believes group will benefit over the medium term from its
promoters' extensive industry experience and its moderate capital
structure. The outlook may be revised to 'Positive' if the scale
of operations and profitability increase on a sustained basis,
while managing working capital requirements efficiently, leading
to improvement in its financial risk profile. Conversely, the
outlook may be revised to 'Negative' if the financial risk
profile weakens because of decline in revenue and margins or
large, debt-funded capital expenditure programme, or if it faces
stretch in its working capital management.
Established as a proprietorship firm by Mr. Ashok Gandhi, Gravit
Engineering Works (Gravit) is engaged in civil construction work
of rehabilitation of pipes. It is based in Mumbai and mainly
caters to MCGM.
Established in 2013, Gravit Onsite India JV is into similar
business and is joint venture by Mr. Ashok Gandhi and Onsite
India Pvt Ltd in 76: 24 ratio.
HIGH BREETD: CRISIL Suspends 'B+' Rating on INR45MM LT Loan
-----------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
High Breetd Fashions.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Foreign Bill Negotiation 35 CRISIL A4
Packing Credit 30 CRISIL A4
Proposed Long Term Bank
Loan Facility 45 CRISIL B+/Stable
The suspension of ratings is on account of non-cooperation by HBF
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, HBF is yet to
provide adequate information to enable CRISIL to assess HBF's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL views information availability risk as a key
factor in its assessment of credit risk.
Established in 2004 by Mr. Sundaram and his family members, HBF
manufactures and exports RMG. Mr. Sundaram has an experience of
over three decades in the garment manufacturing business. HBF's
manufacturing facility is in Tirupur (Tamil Nadu).
HOTEL DELITE: CRISIL Assigns B+ Rating to INR80MM Term Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Hotel Delite Grand (HDG).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Overdraft Facility 20 CRISIL A4
Term Loan 80 CRISIL B+/Stable
The ratings reflect the start-up nature and modest scale of
operations, average financial risk profile, and exposure to risks
related to cyclicality in the hospitality sector. These
weaknesses are partially offset by the extensive experience of
partners in the hotel industry, along with favourable location
and moderate occupancy of the hotel.
Outlook: Stable
CRISIL believes HDG will benefit over the medium term from the
favourable location of the hotel and the extensive experience of
partners. The outlook may be revised to 'Positive' in case of
earlier-than-expected ramp-up in operations and higher-than-
expected revenue and operating profitability with more-than-
expected occupancy. The outlook may be revised to 'Negative' if
ramp-up in operations is not as per expectations, leading to
lower-than-expected turnover and operating margin, deterioration
in the financial risk profile, and weak cash accrual.
Established in 2016, HDG is a Faridabad (Haryana)-based
partnership between Mr. Ram Sharan Bhatia and Ms Radha Rani
Virmani.
Currently, it is managed by Mr. Ram Sharan Bhatia, and sons of Ms
Radha Rani Virmani, Mr. Rajan Virmani and Mr. Sunil Virmani. The
hotel has 42 rooms, 6 banquet halls, and one restaurant-cum-bar.
The hotel became operational from May 2015 onwards, and operates
under the Delite brand.
INDIAN SUGAR: CRISIL Reaffirms 'D' Rating on INR437.9MM Loan
------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Indian Sugar
Manufacturing Company Limited continues to reflect delays in debt
servicing by ISMCL; the delays are due to the company's weak
liquidity driven by declined revenue, operating losses and large
working capital requirements.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 292.1 CRISIL D (Reaffirmed)
Term Loan 437.9 CRISIL D (Reaffirmed)
ISMCL also has a below-average financial risk profile, marked by
high gearing, and is susceptible to high regulatory risks in the
sugar industry. The company, however, benefits from its proximity
to Maharashtra's sugarcane belt and its well-integrated
operations.
ISMCL was set up in 2000 by Dr. Veerana Pattar and his
colleagues. In January 2010, the company commissioned a sugar
plant and a bagasse-based cogeneration power plant in Bijapur
(Karnataka).
J.K. INTERNATIONAL: CRISIL Assigns 'B' Rating to INR45.5MM Loan
---------------------------------------------------------------
CRISIL has assigned 'CRISIL B/Stable' rating to the bank
facilities of J.K. International.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 44.5 CRISIL B/Stable
Cash Term Loan 45.5 CRISIL B/Stable
The rating reflects JKI's modest scale and working capital
intensive nature of operations and intense competition. These
weaknesses are mitigated by the extensive experience of the
partners in the toughened glass manufacturing industry and
moderate margins.
Outlook: Stable
CRISIL believes JKI will continue to benefit from the extensive
experience of its partners over the medium term. The outlook may
be revised to 'Positive' if operations scale up and operating
profitability is maintained, or prudent working capital
management improves the financial risk profile. The outlook may
be revised to 'Negative' if cash accrual declines, or if large
working capital requirement weakens the financial risk profile.
Established in 2004, JKI manufactures and processes architectural
and automotive glass. Its facilities are located at Jalandhar,
Punjab, and operations are managed by Mr. Sarjit Singh Kang.
JAI MAHAKAL: CRISIL Raises Rating on INR57MM Term Loan to BB-
-------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facility of
Jai Mahakal Warehousing Company to 'CRISIL BB-/Stable' from
'CRISIL B+/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long Term Loan 6.6 CRISIL BB-/Stable (Upgraded
from 'CRISIL B+/Stable')
Term Loan 57.0 CRISIL BB-/Stable (Upgraded
from 'CRISIL B+/Stable')
Proposed Long Term 3.4 CRISIL BB-/Stable (Upgraded
Bank Loan Facility from 'CRISIL B+/Stable')
The upgrade reflects JMWC's expected steady revenues from
operations from warehouse on the back of long term contracts
leading to moderate debt service coverage ratio (DSCR) for the
company. Further, the business operations have been stabilised
during 2015-16 post commencement of commercial operations and the
firm has been managing its working capital efficiently. Further,
the firm has recorded high operating profitability mainly on
account of limited operating expenses for maintenance of the
warehouse leading to high cash generation over the medium term.
The rating reflects JMWC's steady revenue visibility on the back
of long-term lease agreement with the Government of Madhya
Pradesh (GoMP) for its warehouse and moderate DSCR. These rating
strengths are partially offset by its modest scale of operations
and limited track record in the competitive warehousing industry.
Outlook: Stable
CRISIL believes that JMWC will continue to benefit from its long-
term lease agreement with GoMP for its warehousing business. The
outlook may be revised to 'Positive' if JMWC reports increase in
scale of operations on the back of upward revision in rates with
stable profitability, leading to substantial increase in
accruals. Conversely, the outlook may be revised to 'Negative' in
case of unanticipated downward revision in JMWC's lease contract
with GoMP or stretched receivable cycle, adversely affecting the
firm's cash flows, or in case of large debt-funded capital
expenditure leading to pressure on its financial risk profile.
About the Firm
Formed in 2014 by Mr. Kaushal Sharma, JMWC is a partnership firm
engaged in leasing and operating warehouses for agricultural
products. Its warehousing facility is at Dabra in Gwalior (Madhya
Pradesh).
JAMKASH VEHICLEADES: CRISIL Reaffirms B+ Rating on INR126.5M Loan
-----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Jamkash Vehicleades
(Kashmir) Private Limited continue to reflect a below-average
financial risk profile because of a leveraged capital structure
and average interest coverage ratio, and a modest scale of
operations in the intensely competitive automobile dealership
industry. These rating weaknesses are partially offset by the
extensive industry experience of the company's promoters, and
benefits derived from distributorship for Maruti Suzuki India Ltd
(MSIL; rated 'CRISIL AAA/Stable/CRISIL A1+') in Kashmir.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 126 CRISIL A4 (Reaffirmed)
Cash Credit 126.5 CRISIL B+/Stable (Reaffirmed)
Inventory Funding
Facility 30.0 CRISIL B+/Stable (Reaffirmed)
Long Term Loan 37.5 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes JVPL will continue to benefit over the medium
term from the extensive industry experience of its promoters and
established relationship with its principal, MSIL. The outlook
may be revised to 'Positive' in case of improvement in the
financial risk profile, most likely because of substantial
increase in cash accrual led by a larger scale of operations and
higher operating profitability. The outlook may be revised to
'Negative' in case of a decline in sales or operating
profitability, impacting cash accrual, a stretched working
capital cycle, or debt-funded capital expenditure, leading to
further deterioration in the financial risk profile.
Update
Revenue is estimated at INR2.66 billion for fiscal 2016, an
increase of 30% over the previous year. Operating margin is
estimated to have improved to 3.8% and is expected to remain at
this level over the medium term.
The financial risk profile remains below average because of an
average networth of INR114 million and high total outside
liabilities to tangible networth ratio of 4.80 times, as on March
31, 2016. Interest coverage and net cash accrual to adjusted debt
ratios are estimated at 2.32 times and 0.18 time, respectively,
in fiscal 2016. The financial risk profile is expected to remain
below average over the medium term owing to modest accretion to
reserves.
Liquidity is expected to remain adequate as cash accrual of
around INR55 million is expected to be sufficient to meet
repayment obligation of around INR30 million, in fiscal 2017. The
company plans to open 7-8 new centres in this fiscal for which it
has availed a term loan of INR100 million. Timely commencement of
operations at these centres without any cost overrun will be a
key rating sensitivity factor over the near term. Bank line
utilisation has remained on higher side at an average of around
90% over the 12 months through December 2015. Liquidity is
further supported by unsecured loans from promoters, the balance
of which was INR5.4 million as on March 31, 2016.
Incorporated in 2009, JVPL is an authorised dealer for all
passenger cars of MSIL in five districts of Kashmir. The company
has five showrooms in 3S (sales, service. spares) format in its
dealership area.
KESHARDEO COMBINES: CRISIL Suspends B+ Rating on INR34MM Loan
-------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Keshardeo Combines.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Packing Credit 34 CRISIL B+/Stable
Post Shipment Credit 20 CRISIL A4
Standby Line of Contract 6 CRISIL A4
The suspension of ratings is on account of non-cooperation by KC
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, KC is yet to
provide adequate information to enable CRISIL to assess KC's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL views information availability risk as a key
factor in its assessment of credit risk.
KC, setup in 1995 by Mr. Prakash Gupta, is engaged in
manufacturing of terry towels. The firm was setup as a sole
proprietorship concern in 1995, and was converted to partnership
firm in October 2014. The firm is based in Mumbai (Maharashtra).
KHAJA MOIDEEN: CRISIL Reaffirms B+ Rating on INR24.4MM Term Loan
----------------------------------------------------------------
CRISIL ratings on the bank facilities of Khaja Moideen Leather
Company continue to reflect KMLC's modest scale of operations in
the intensely competitive leather industry, its below average
financial risk profile and the susceptibility of its margins to
fluctuations in raw material price and forex. These rating
weaknesses are partially offset by the extensive industry
experience of KMLC's promoter.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 10 CRISIL B+/Stable (Reaffirmed)
Export Bill
Negotiation 26.5 CRISIL A4 (Reaffirmed)
Packing Credit 30.0 CRISIL A4 (Reaffirmed)
Term Loan 24.4 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that KMLC will continue to benefit over the
medium term from its promoter's extensive industry experience.
The outlook may be revised to 'Positive' if the firm's cash
accruals increase substantially due to significant improvement in
scale of operations and profitability, leading to a better
financial risk profile. Conversely, the outlook may be revised to
'Negative' if KMLC's financial risk profile, particularly its
liquidity, weakens because of a decline in cash accruals, a
stretch in working capital cycle, or large debt-funded capital
expenditure.
Set up in 2004, KMLC is engaged in tanning leather. The firm's
day-to-day operations are managed by its promoter, Mr. Peer
Mohammed. Its manufacturing facility is in Dindigul (Tamil Nadu).
KOYILI HOSPITAL: CRISIL Suspends 'B' Rating on INR162.5MM Loan
--------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Koyili
Hospital.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 37.5 CRISIL B/Stable
Term Loan 162.5 CRISIL B/Stable
The suspension of ratings is on account of non-cooperation by
Koyili with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, Koyili is yet
to provide adequate information to enable CRISIL to assess
Koyili's ability to service its debt. The suspension reflects
CRISIL's inability to maintain a valid rating in the absence of
adequate information. CRISIL views information availability risk
as a key factor in its assessment of credit risk.
Established in 1981, Koyili manages a multi-speciality hospital
in Kannur (Kerala). The hospital's day-to-day operations are
managed by the firm's partner, Mr. Bhaskaran along with his
family members.
KRISHNAIAH MOTORS: ICRA Assigns 'B+' Rating to INR13cr LT Loan
--------------------------------------------------------------
ICRA has assigned long-term rating of [ICRA]B+ to the INR13.00
Crore long-term fund based facilities of Krishnaiah Motors
Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
LT-Fund based Facilities 13.00 [ICRA]B+ (assigned)
The assigned rating is constrained by the weak financial profile
of the company characterized by thin profitability, moderate
coverage indicators and high gearing of 3.6x times as on
March 31, 2016; significant term loan repayment obligations due
to debt funded capex plans; and working capital intensive
operations which are inherent in auto dealership business. The
rating also considers limited presence with only one showroom and
three sales outlets in Hyderabad and Secunderabad. However the
rating derives comfort from consistent improvement in revenues
with revenues growing at a CAGR of 19% over the past five years;
extensive experience of the promoters in the automobile
dealership business for over 10 years and inherent strength of
the principal Maruti Suzuki India Limited.
Going forward, the ability of the company to ramp up operations
and generation of sufficient cash accruals for debt obligations
will remain key rating drivers.
Krishnaiah Motors Private Limited was established in 2002 by
Major (Retd) P.T Choudary. The company is a MSIL dealer in
passenger cars in Secunderabad under the name "ACER Motors"; KMPL
is engaged in sales of new cars and used cars, service of
vehicles along with sale of spare parts. The company has one
showroom at Trimulgherry apart from three outlets at Kukatpally,
Ghatkesar and Gajwel. The company also has two truevalue
showrooms which are outsourced to third parties at Kukatpally and
Trimulgherry. The company has two service centres at Trimulgherry
and Narapally. The stockyard of the company is located at Alwal.
The operations of the company are taken care by Major (Retd) P.T
Choudary and his son Mr. Viren Choudary who have close to 10
years of experience in the Automobile dealership business.
Recent Results
According to the provisional financials for FY2016, the company
reported a profit after tax of INR1.9 crore on an operating
income of INR 239.6 crore as against a profit after tax of INR0.7
crore on an operating income of INR199.9 crore in FY2015.
MIDAS PETROCHEM: Ind-Ra Assigns 'IND BB' Long-Term Issuer Rating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Midas Petrochem
Private Limited a Long-Term Issuer Rating of 'IND BB'. The
Outlook is Stable. The agency has also assigned MPPL's INR150
million fund-based facilities an 'IND BB' rating with a Stable
Outlook.
KEY RATING DRIVERS
The ratings reflect MPPL's moderate credit profile and low
profitability due to the trading nature of its business. MPPL's
revenue declined by 28.9% yoy to INR 1,395 million in FY16 from
INR1962 million in FY15, due to the reduction in crude oil
prices. The company's liquidity remained tight, with 99.7%
average utilisation of bank facilities for the 12 months ended
July 2016.
Provisional (P) FY16 financials indicate interest coverage
(operating EBITDA/gross interest expense) of 1.6x (FY15: 1.5x)
and net financial leverage (total adjusted net debt/operating
EBITDA) of 4.0x (5.5x). MPPL's EBITDA margin improved to 2.6% in
FY16 from 1.6% in FY15 on account of a reduction in crude oil
prices. The improvement in MPPL's credit profile took place on
account of the improvement in EBITDA margin.
The ratings are supported promoter's decade long experience in
the trading business.
RATING SENSITIVITIES
Positive: A positive rating action could result from a
substantial improvement in the revenue and/or profitability,
leading to an improvement in credit metrics.
Negative: A negative rating action could result from a fall in
the overall credit metrics due to a decline in the company's
overall operating profitability.
COMPANY PROFILE
MPPL was established in 2012 and imports and trades raw material
for commodity plastics such as polypropylene, polyethylene and
poly vinyl chloride.
PARAGON EXTRUSIONS: ICRA Suspends B-/A4 Rating on INR9.25cr Loan
----------------------------------------------------------------
ICRA has suspended the [ICRA]B-/A4 rating for the INR 9.25 crore
bank facilities of Paragon Extrusions (Private) Limited. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
PUNJAB SPINTEX: CRISIL Lowers Rating on INR250MM Loan to 'D'
------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Punjab Spintex Limited to 'CRISIL D/CRISIL D' from 'CRISIL BB-
/Stable/CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 5 CRISIL D (Downgraded
from 'CRISIL A4+')
Cash Credit 250 CRISIL D (Downgraded
from 'CRISIL BB-/Stable')
Corporate Loan 50 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
Inventory Funding 100 CRISIL D (Downgraded from
Facility 'CRISIL BB-/Stable')
Standby Line of 25 CRISIL D (Downgraded from
Credit 'CRISIL BB-/Stable')
Term Loan 50 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
The downgrade reflects delays in servicing term debt due to
stretched liquidity.
PSL is also exposed to intense competition, while its operating
margin is susceptible to volatility in raw material prices. These
rating weaknesses are partially offset by promoters' extensive
industry experience in the cotton ginning industry.
Incorporated in December 2006 and promoted by Mr. Suresh Kumar
and three of his business associates, PSL gins cotton and
manufactures cotton yarn (in counts of 20s-30s). Operations began
in December 2007.
R.D.GOEL: CRISIL Reaffirms 'B' Rating on INR65MM Cash Loan
----------------------------------------------------------
CRISIL's ratings on the bank facilities of R.D.Goel and Company
Private Limited continue to reflect the company's modest scale of
operations in a fragmented industry, large working capital
requirement, and susceptibility to economic cycles. The ratings
also factor in the company's subdued financial risk profile.
These weaknesses are partially offset by the extensive experience
of its promoters in the road transport industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 5 CRISIL A4 (Reaffirmed)
Cash Credit 65 CRISIL B/Stable (Reaffirmed)
Proposed Fund-Based
Bank Limits 45.4 CRISIL B/Stable (Reaffirmed)
Term Loan 29.0 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes RDG will continue to benefit from its promoters'
extensive industry experience and its established customer
relationships. The outlook may be revised to 'Positive' if there
is a substantial and sustained increase in revenue and
profitability, or considerable improvement in liquidity because
of sizeable equity infusion. The outlook may be revised to
'Negative' in case of a steep decline in profitability, or
significant deterioration in capital structure because of a
stretch in working capital cycle.
Update
RDG reported net profit of INR4.4 million on net sales of
INR420.0 million in fiscal 2016, against a net profit of INR3.3
million on net sales of INR428.6 million in fiscal 2015. RDG
added Maruti Suzuki India Ltd ('CRISIL AAA/Stable/CRISIL A1+') to
its clientele by entering into a one-year contract in July
2015.Also, the company increased its fleet of owned vehicles from
88 vehicles in fiscal 2015 to 97 in fiscal 2016. The management
focus will remain on increasing owned vehicles vis-a-vis rented
ones through regular capital expenditure. Operating income is
estimated at INR420.00 million in fiscal 2016, in line with
CRISIL's expectation. Operating margin was low, at 5% in fiscal
2016, as the company reduced its prices due to increased
competition. The company's working capital requirement, remained
large, reflected in gross current assets of 115 days as on March
31, 2016, and was in line with the CRISIL's expectation.
RDG's capital structure was average, reflected in estimated
gearing of 1.14 times and modest networth of INR67.3 million as
on March 31, 2016. Interest coverage and net cash accrual to
total debt ratios were subdued, at 1.84 times and 0.11 time,
respectively, in fiscal 2016. RDG's net cash accrual is estimated
at INR8.1 million in fiscal 2016 against debt obligation of
INR17.9 million, and the shortfall was funded through unsecured
loans from promoters. Its bank limit utilization remained high,
averaging 94% in the 12 months through March 2016.
RDG was set up by Mr. Ashok Goel and his family members in 1988.
The company provides road transport services, and operates a
fleet of trucks and trailers. It is based in New Delhi.
RANGER COTTON: Ind-Ra Assigns 'IND B+' Long-Term Issuer Rating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Ranger Cotton
Mills (India) Private Limited a Long-Term Issuer Rating of
'IND B+. The Outlook is Stable.
KEY RATING DRIVERS
The ratings reflect RCMPL's liquidity stress. There were two
instances of overutilization of up to 11 days in its working
capital facilities during the 12 months ended May 2016, due to
stretched cash conversion cycle which deteriorated in FY16 to 184
days (FY15: 176 days).
The ratings further reflect RCMPL's moderate credit profile.
Provisional FY16 financials indicate revenue of INR709 million
(FY15:INR761 million), net leverage (Ind-Ra adjusted net
debt/operating EBITDAR of 2.6x (2.1x) and interest coverage
(operating EBITDA/gross interest expense) of 4.3x (3.9x). EBITDA
margin was volatile between 9.5% - 13.5% over FY12-FY16 on
account of raw material price fluctuation.
The ratings, however, are supported by the more than four decades
of experience of the company's promoter in the cotton yarn
manufacturing business.
RATING SENSITIVITIES
Positive: A sustained improvement in the company's liquidity
position could lead to a positive rating action
Negative: Any decline in the profitability leading to further
stress on the liquidity position and sustained deterioration in
the credit profile of the company could lead to a negative rating
action
COMPANY PROFILE
RCMPL was set up in 2004 by Mr. A Arumugam. It manufactures grey
cotton and cotton yarn in counts ranging from 20s to 40s. The
company's facilities are located in Gobichettipalayam (Tamil
Nadu).
RCMPL's ratings:
-- Long-Term Issuer Rating: assigned 'IND B+'/Stable\
-- INR91.8 million long-term loans: assigned 'IND B+'/Stable
-- INR185 million fund-based facilities: assigned
'IND B+'/Stable/'IND A4'
-- INR14.6 million non-fund-based facilities: assigned
'IND A4'
RDC MOTOR: CRISIL Suspends 'B' Rating on INR80MM Cash Loan
----------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of RDC
Motor Private Limited.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 80 CRISIL B/Stable
Proposed Term Loan 2.5 CRISIL B/Stable
Working Capital
Demand Loan 17.5 CRISIL B/Stable
The suspension of ratings is on account of non-cooperation by RDC
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, RDC is yet to
provide adequate information to enable CRISIL to assess RDC's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL views information availability risk as a key
factor in its assessment of credit risk.
RDC, incorporated in 2012, is a dealer for FIAL's four wheelers.
The company's operations are managed by Mr. Chandrasekhar.
RISHI TRADERS: CRISIL Suspends 'B' Rating on INR80MM Cash Loan
--------------------------------------------------------------
CRISIL has suspended its rating on the bank facility of Rishi
Traders.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 80 CRISIL B/Stable
The suspension of ratings is on account of non-cooperation by RT
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, RT is yet to
provide adequate information to enable CRISIL to assess RT's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL views information availability risk as a key
factor in its assessment of credit risk.
RT, established in 2011, is engaged in ginning and pressing of
raw cotton. The day-to-day operations of the firm are managed by
Mr. Kirti Kumar Patel and Mr. Harilal Patel. It has its
manufacturing unit at Nagpur (Maharashtra).
ROHARSH MOTORS: CRISIL Reaffirms B- Rating on INR170MM Cash Loan
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Roharsh Motors Private
Limited continue to reflect a below-average financial risk
profile because of a small net worth, high total outside
liabilities to tangible networth (TOLTNW) ratio, and weak debt
protection metrics, and exposure to intense competition in the
automobile dealership market. These rating weaknesses are
partially offset by the extensive industry experience of its
promoters.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 170 CRISIL B-/Stable (Reaffirmed)
Drop Line Overdraft
Facility 30 CRISIL B-/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes RMPL will continue to benefit from the industry
experience of its promoters. The outlook may be revised to
'Positive' in case of a substantial and sustained increase in
cash accrual or any fresh equity infusion, improving the capital
structure and liquidity. The outlook may be revised to 'Negative'
if the financial risk profile weakens further due to lower-than-
expected cash accrual, a stretched working capital cycle, and/or
any debt-funded capital expenditure in the near term.
RMPL was incorporated in 2012 and started operations in October
2013; it is promoted by the Pune-based Ghatge family. The company
is a dealer in passenger vehicles of Renault India Ltd in Pune.
It has two showrooms and workshops each at Baner and Wagholi,
both in Pune.
SARVODAYA SUITINGS: CRISIL Reaffirms B+ Rating on INR325MM Loan
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Sarvodaya Suitings
Limited continue to reflect the company's below-average financial
risk profile because of weak liquidity, high gearing, and subdued
debt protection metrics.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 325 CRISIL B+/Stable (Reaffirmed)
Derivatives Facility 12.3 CRISIL A4 (Reaffirmed)
Funded Interest Term
Loan 12.7 CRISIL B+/Stable (Reaffirmed)
Letter of Credit 80.0 CRISIL A4 (Reaffirmed)
Term Loan 127.3 CRISIL B+/Stable (Reaffirmed)
The ratings also factor in the company's modest scale of
operations, large working capital requirement, and susceptibility
to volatility in raw material prices and foreign exchange rates.
These weaknesses are partially offset by its established
clientele, and the extensive experience of its promoters in the
blended fabrics industry and their funding support.
Outlook: Stable
CRISIL believes SSL will continue to benefit from its promoters'
extensive industry experience and their funding support. The
outlook may be revised to 'Positive' in case of a significant and
sustained increase in revenue and cash accrual, and improvement
in working capital management. The outlook may be revised to
'Negative' in case of deterioration in the financial risk
profile, particularly liquidity, because of lower-than expected
funding support from promoters or cash accrual, stretched working
capital cycle, or large, unanticipated debt-funded capital
expenditure.
SSL, incorporated in 1994 and promoted by Mr. Abhay Kumar Jain
and his family, manufactures blended fabrics. The company's
manufacturing facility is in Bhilwara, Rajasthan, and sells its
products under the Sarvodaya Suiting brand.
SATCHIDANANDA AGROTECH: CRISIL Suspends B- Cash Credit Rating
-------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Satchidananda Agrotech Private Limited.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 65 CRISIL B-/Stable
Letter Of Guarantee 3.9 CRISIL A4
Proposed Long Term
Bank Loan Facility 51.6 CRISIL B-/Stable
Term Loan 79.5 CRISIL B-/Stable
The suspension of ratings is on account of non-cooperation by
SATPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SATPL is yet to
provide adequate information to enable CRISIL to assess SATPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL views information availability risk as a key
factor in its assessment of credit risk.
Incorporated in 2013, SATPL mills rice and has a capacity of 8
tonnes per hour in Burdwan (West Bengal). The company is promoted
by Mr. Tapan Samantra and his family members. The rice mill
started commercial operations in August 2014.
SATYAM RICE: CRISIL Suspends B+ Rating on INR45MM Cash Loan
-----------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Satyam
Rice Mill.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 5 CRISIL A4
Cash Credit 45 CRISIL B+/Stable
Proposed Cash Credit
Limit 12.9 CRISIL B+/Stable
Term Loan 27.1 CRISIL B+/Stable
The suspension of ratings is on account of non-cooperation by SRM
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SRM is yet to
provide adequate information to enable CRISIL to assess SRM's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL views information availability risk as a key
factor in its assessment of credit risk.
SRM was established as a partnership firm in 2007. The firm mills
and processes paddy into rice; it also generates by-products,
such as broken rice, bran, and husk. SRM has a paddy milling
facility in Bardhaman (West Bengal). The current partners of the
firm are Mr. Jiban Ruidas, Mr. Safiqul Alam, Mr. Shymal Ruidas,
and Mr. Siddarth Kanjilal.
SATYAMAHARSHI POWER: CRISIL Suspends 'D' Rating on INR100MM Loan
----------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of
Satyamaharshi Power Corporation Limited.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL D
Term Loan 100 CRISIL D
The suspension of ratings is on account of non-cooperation by
SMPCL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SMPCL is yet to
provide adequate information to enable CRISIL to assess SMPCL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL views information availability risk as a key
factor in its assessment of credit risk.
SMPCL operates a 7.5-megawatt (MW) biomass-based power plant in
Guntur, Andhra Pradesh; the plant became operational in 2004.
SMPCL is owned by KHPL Clean Energy Pvt Ltd which acquired
ownership in 2010 from Velcan Renewable Energy India Ltd.
SAVANI EXPORTS: ICRA Suspends B+ LT Rating on INR10cr Loan
----------------------------------------------------------
ICRA has suspended the long term rating of [ICRA] B+ and short
term rating of [ICRA] A4 assigned to the INR 10.00 crore bank
facilities of Savani Exports. The suspension follows ICRA's
inability to carry out a rating surveillance in the absence of
the requisite information from the company.
Savani Exports was set up in the year 2004 as a partnership firm
by the Savani family. The firm is engaged in cotton ginning and
cottonseed crushing from its facility located at Manavadar, in
the Junagadh district in Gujarat. The firm has 36 ginning
machines and 5 crushing machines with a production capacity of
~18 MT of cotton bales per day. The partners of the firm have
more than two decades of experience in the cotton industry.
SELVEL ADVERTISING: ICRA Suspends D Rating on INR4.55cr Loan
------------------------------------------------------------
ICRA has suspended the long-term rating of [ICRA]D assigned to
the INR 4.55-crore term loan and the short-term rating of [ICRA]D
assigned to the INR 8-crore fund based bank facilities of Selvel
Advertising Private Limited. The [ICRA]D rating assigned to
SAPL's non-fund based bank limit of INR 1-crore (sub-limit of
fund based limit) which is fully interchangeable between long-
term and short-term, has also been suspended. The suspension
follows lack of co-operation from the company.
SHIVAM JEWELMART: CRISIL Suspends B+ Rating on INR80MM Cash Loan
----------------------------------------------------------------
CRISIL has suspended its rating on the bank facility of Shivam
Jewelmart Private Limited.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 80 CRISIL B+/Stable
The suspension of ratings is on account of non-cooperation by
SJPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SJPL is yet to
provide adequate information to enable CRISIL to assess SJPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL views information availability risk as a key
factor in its assessment of credit risk.
Incorporated in 2011, SJPL is a Delhi based company engaged into
the trading of gold jewelry. The company started its operations
from FY 2013-14, founded by Mr. Sanjay Gupta and Mr. Vasu Garg.
SHREE GOVARDHAN: ICRA Reaffirms B+ Rating on INR10cr Loan
---------------------------------------------------------
ICRA has reaffirmed the long term rating of [ICRA]B+ to the
INR10.00 crore fund based facilities of Shree Govardhan Steels
Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based limits 10.00 [ICRA]B+ (reaffirmed)
The rating action factors in decline in sales and increased
working capital intensity although it was accompanied by improved
gearing levels and improved interest coverage ratio. The rating
continues to take into account fall in the realizations of
Iron/Steel prices in line with the international trend coupled
with SGSPL's presence in a highly fragmented nature of industry
with low entry barriers which has resulted in low operating
profit margins. Further ICRA continues to take cognizance of the
weak financial risk profile of the company as reflected by low
profits, high gearing level and weak debt protection metrics
coupled with company's small scale of operations with moderate
capacity utilization of the plant which impacts business returns.
The rating, however, continues to favorably factor in the long
experience of the promoters in the iron & steel business and
stable demand outlook for the Iron angles.
Shree Govardhan Steels Pvt. Ltd was incorporated in the year 2010
with the manufacturing facility situated at Kasganj (U.P). The
company is primarily engaged in manufacturing of Iron Angles with
a installed capacity of 30000 tons Per Annum. The Company is
professionally managed by Mr. Ashish Agrawal and Mr. Gaurav
Agarwal.
Recent Results
During FY2015, the Company reported profit after tax (PAT) of
INR0.19 crore on an operating income of INR 34.91 crore as
against PAT of INR0.17 crore on an operating income of INR 26.22
crore in FY2014. As per provisional results, the company reported
an operating income of INR31.18 crore during FY2016.
SHRINE VAILANKANNI: CRISIL Reaffirms B+ Rating on INR120MM Loan
---------------------------------------------------------------
CRISIL's rating on the long-term bank facility of Shrine
Vailankanni Senior Secondary School continues to reflect the
school's modest financial risk profile because of weak capital
structure and debt protection metrics, and low operating
efficiency. These weaknesses are partially offset by long track
record and stable cash flow from lease rentals.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 120 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes Shrine Vailankanni will continue to benefit over
the medium term from its longstanding position in Chennai's
education segment. The outlook may be revised to 'Positive' if a
substantial increase in revenue improves profitability and cash
accrual, resulting in a better financial risk profile. The
outlook may be revised to 'Negative' if revenue declines
significantly, or if the school undertakes any substantial debt-
funded capital expenditure, faces disruptions in operations
because of regulatory changes, or extends higher-than-expected
support to group companies, thereby further weakening financial
risk profile.
Update
Revenue increased around 20% year-on-year to INR34 million in
fiscal 2016, while operating margin declined to negative 9.15%
from 1.8%. Income from lease rentals remained steady at INR39
million. Though financial risk profile was average because of a
highly leveraged capital structure and muted debt protection
metrics, liquidity is backed by stable cash flow from lease
rentals, which are expected to be sufficient to meet debt
obligation.
Established in 1964 as a part of Shrine Vailankanni Senior
Secondary School Society, Shrine Vailankanni is an unaided,
private, co-educational day school in Chennai that offers
education from pre-kindergarten-class XII. Shrine Vailankanni
Senior Secondary School Society also owns six-and-a-half floors
of a 12-storey commercial building (Bascon Futura IT Park) at T
Nagar in Chennai that it leases out to corporates.
SIDDHI FORGE: CRISIL Lowers Rating on INR100MM Cash Loan to B+
--------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Siddhi Forge Pvt Ltd (SFPL; part of the Siddhi group) to 'CRISIL
B+/Stable/CRISIL A4' from 'CRISIL BB-/Stable/CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 100 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
Letter of Credit 25 CRISIL A4 (Downgraded from
'CRISIL A4+')
Long Term Loan 12 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
Proposed Long Term 3 CRISIL B+/Stable (Downgraded
Bank Loan Facility from 'CRISIL BB-/Stable')
The downgrade reflects deterioration in the group's business and
financial risk profiles because of decline in profitability
leading to stretched liquidity. The group's cash accrual fell to
INR17.5 million in fiscal 2016 from INR40 million in fiscal 2015
on account of reduced profitability. Though the cash accrual is
expected to increase, it will be just adequate to meet debt
obligation of INR31 million, in fiscal 2017. The group undertook
debt-funded capital expenditure (capex) over the past five years,
which led to increase in long-term debt to INR78 million as on
March 31, 2016, INR48.5 million as on 31st March 2015. Decline in
profitability and higher interest cost weakened the interest
coverage ratio to 1.6 times in fiscal 2016 from 2.5 times in
fiscal 2015. CRISIL believes the group's liquidity will be
stretched over the medium term on account of large debt
obligation.
The ratings reflect the customer concentration in the Siddhi
group's revenue, and its below-average financial risk profile
because of small networth and subdued debt protection metrics.
These weaknesses are partially offset by its promoter's extensive
experience in the forging industry, and its strong relationships
with established clients.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of SFPL and Siddhi CNC Pvt Ltd. This is
because the two companies, together referred to as the Siddhi
group, have substantial operational, marketing, and financial
linkages, and have the same promoter and management team.
Outlook: Stable
CRISIL believes the Siddhi group will continue to benefit from
its longstanding customer relationships. The outlook may be
revised to 'Positive' in case of higher-than-expected cash
accrual or improvement in liquidity through prudent working
capital management. The outlook may be revised to 'Negative' if
the group reports lower-than-anticipated cash accrual, or
undertakes substantial, debt-funded capex, or if its working
capital cycle lengthens, leading to deterioration in its
financial risk profile, particularly liquidity.
SFPL, established in 1993 by Mr. K M Bhingare, manufactures
forged components. SCPL is involved in the components machining
process. The Siddhi group mainly caters to the automotive and
engineering sectors. Its manufacturing facility is in Ahmednagar,
Maharashtra.
SPANDAN MULTISPECIALITY: ICRA Suspends B+ INR6.43cr Loan Rating
---------------------------------------------------------------
ICRA has suspended the long term rating of [ICRA]B+ assigned to
the INR 6.43 Crore bank facility of Spandan Multispeciality
Hospital. The suspension follows ICRA's inability to carry out a
rating surveillance in the absence of the requisite information
from the company.
SRI SAIBALAJI: CRISIL Suspends 'D' Rating on INR543.2MM Loan
------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Sri
Saibalaji Spintex India Private Limited.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 150 CRISIL D
Proposed Long Term
Bank Loan Facility 50 CRISIL D
Term Loan 543.2 CRISIL D
The suspension of ratings is on account of non-cooperation by Sri
Saibalaji with CRISIL's efforts to undertake a review of the
ratings outstanding. Despite repeated requests by CRISIL, Sri
Saibalaji is yet to provide adequate information to enable CRISIL
to assess Sri Saibalaji's ability to service its debt. The
suspension reflects CRISIL's inability to maintain a valid rating
in the absence of adequate information. CRISIL views information
availability risk as a key factor in its assessment of credit
risk.
Sri Saibalaji was incorporated in 2010 by Mr. N Nageshwara Rao
and Mr. K Butchaiah. The company manufactures cotton yarn; its
spinning unit is in Guntur (Andhra Pradesh).
SUFI STRUCTURAL: CRISIL Suspends 'C' Rating on INR60MM Cash Loan
----------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Sufi
Structural Tubes Private Limited.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 60 CRISIL C
Letter of Credit 20 CRISIL A4
The suspension of ratings is on account of non-cooperation by
SSPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SSPL is yet to
provide adequate information to enable CRISIL to assess SSPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL views information availability risk as a key
factor in its assessment of credit risk.
SSPL, incorporated in 2007 by Mr. Saleem Maymon along with his
family members, manufactures galvanised iron pipes used in the
construction sector. The company has a manufacturing facility in
Pune (Maharashtra).
TEJASWI MOTORS: ICRA Lowers Rating on INR20cr Loan to 'B'
---------------------------------------------------------
ICRA has revised the long-term rating assigned to INR 20.00 crore
fund based limits of Tejaswi Motors Private Limited from [ICRA]B+
to [ICRA]B. The rating suspension done in March 2016 stands
revoked.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits 20.00 [ICRA]B (revised from
[ICRA]B+); Suspension
Revoked
The revision in rating primarily factors in the steady decline in
the revenues from INR 169.87 crore in FY2013 to INR 112.53 crore
in FY2016 owing to scale down in operations of the company with
closure of 4 showrooms over the past 2 years coupled with weak
demand for Tata Passenger Vehicles (PV); substantial losses
incurred in FY2015 due to high discounts offered and higher fixed
expenses; and stretched liquidity position of the company as
reflected by the full utilization of working capital facilities
over the past 15 months due to high inventory levels. The rating
is further constrained by weak financial profile of the company
characterized by high gearing of 1.91 times as on March 31, 2016
and modest coverage metrics with interest coverage ratio of 1.15
times and NCA/Debt of 4% for FY2016.
The rating, however, derives comfort from the management's
experience in vehicle dealership business with dealership of
passenger vehicles of Honda Motorcycles and Scooters, , PV
dealership of Tata Motors Ltd and Fiat Automobiles; and group's
presence in diversified set of businesses in hospitality,
education, jewellery and retail.
Going forward, the company's ability to increase its revenues,
profitability and effectively manage working capital requirements
would be the key rating drivers from a credit perspective.
Tejaswi Motors Private Limited was incorporated in the year 2005
and commenced its operations in March 2010. It is engaged in the
automobile dealership of TATA Motors passenger vehicles in
Hyderabad. The company currently runs 1 showroom and service
centre in Madhapur, Hyderabad. The Company is promoted by Mr.
Butta S Neelakanta and his wife Mrs. Butta Renuka and is part of
the BUTTA group of companies based out of Andhra Pradesh. The
group has presence in the Hospitality, Education, Branded Retail
and Automobile space in Hyderabad.
Recent Results
As per the provisional results for FY 2016, the company reported
profit after tax of INR0.01 crore on turnover of INR112.53 crore
as against net loss of INR8.04 crore on turnover of INR109.96
crore during FY 2015.
UNIFOUR DEVELOPERS: CRISIL Assigns B+ Rating to INR95MM Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-
term bank facility of Unifour Developers Private Limited (UDPL).
The rating reflects the company's exposure to risks and
cyclicality inherent in the real estate industry, and the
geographic and project concentration in its revenue. These
weaknesses are partially offset by its promoters' extensive
industry experience.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 95 CRISIL B+/Stable
Outlook: Stable
CRISIL believes UDPL will continue to benefit from its promoters'
extensive industry experience. The outlook may be revised to
'Positive' in case of substantial cash flow from operations
because of speedy execution of project and increased customer
advances. The outlook may be revised to 'Negative' if the cash
flow is significantly low on account of subdued response to the
project, or low customer advances, or delay in project
completion, weakening the company's financial risk profile,
particularly liquidity.
UDPL, incorporated in 2012, is constructing a residential
building, AAMANTRAN, at Morabadi in Ranchi. The company is a part
of Ranchi-based Unifour group, the promoters of which have
extensive experience in the real estate industry. Mr. Suraj Singh
Pratap, Mr. Sunil Kumar Singh, Mr. Gangesh Singh, and their
family members are promoters of UDPL.
VALORA PLYWOOD: CRISIL Reaffirms B+ Rating on INR12.5MM Loan
------------------------------------------------------------
CRISIL's ratings on the bank facilities of Valora Plywood Private
Limited continue to reflect its modest scale of operations,
susceptibility to volatility in raw material prices and
fluctuations in foreign exchange (forex) rates, intense
competition, and large working capital requirement. These rating
weaknesses are partially offset by the extensive experience of
the promoters in the plywood and timber industry, and the
advantageous location of its plant.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 12.5 CRISIL B+/Stable (Reaffirmed)
Letter of Credit 39.0 CRISIL A4 (Reaffirmed)
Proposed Long Term
Bank Loan Facility 2.1 CRISIL B+/Stable (Reaffirmed)
Standby Line of
Credit 2.5 CRISIL B+/Stable (Reaffirmed)
Term Loan 3.9 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes VPPL will continue to benefit from its promoters'
extensive experience over the medium term. The outlook may be
revised to 'Positive' if significant increase in scale of
operations, efficient working capital management and higher-than-
expected cash accrual strengthens credit metrics. Conversely, the
outlook may be revised to 'Negative' if decline in working
capital management, increase in working capital borrowings, or
any large debt-funded capital expenditure weakens financial risk
profile.
Incorporated in 2007, VPPL is owned and managed by the Vidhani
family. The company manufactures plywood and trades in timber.
Its manufacturing facility is in Gandhidham, Gujarat.
VASISTA MARINE: Ind-Ra Assigns 'IND BB' Long-Term Issuer Rating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Vasista Marine
(VM) a Long-Term Issuer Rating of 'IND BB'. The Outlook is
Stable.
KEY RATING DRIVERS
The ratings reflect VM's moderate credit profile. According to
provisional FY16 financials the firm's revenue was INR1,262
million (FY15: INR962 million; FY14: INR1,450 million) with net
leverage (Ind-Ra adjusted net debt/operating EBITDAR) of 3.4x
(5.5x, 6.2x) and interest coverage (operating EBITDA/gross
interest expense) of 1.6x (1.4x, 2.0x). There was a decline in
FY15 revenue on account of a fall in the shrimp prices which
prompted the firm to go slow on exports.
The ratings also reflect the firm's volatile operating EBITDA
margins between 2.2%-4.7% over FY12-FY16 due to the price
fluctuations in the global shrimp market.
VM's moderate liquidity profile is reflected by its fund-based
facilities being utilised at an average of 70.3% over the 12
month ended June 2016.
The ratings are constrained by the inherent vulnerability of the
seafood industry to disease and viral attacks, and VM's
partnership structure. The ratings are further constrained by
currency fluctuations.
The ratings, however, are supported by two decades of operating
experience of the firm's promoter in the aquaculture business.
RATING SENSITIVITIES
Positive: A sustained growth in the company's top-line along with
improvement in the profitability leading to sustained improvement
in the overall credit metrics could lead to a positive rating
action.
Negative: A significant decline in the profitability resulting in
a sustained deterioration in the overall credit metrics of the
company could lead to a negative rating action.
COMPANY PROFILE
Incorporated in 2003 as a partnership firm by Mr. Srinivasa Raju
and his wife Mrs. Krishna Veni, VM is engaged in the processing
and export of various seafoods such as frozen shrimps, prawns,
aquaculture black tiger shrimp and vannamei products. The firm
has a processing unit in Bhimavaram, Visakhapatnam, with an
annual installed capacity of 2,000 MT.
VM's ratings:
-- Long-term Issuer Rating: assigned 'IND BB'/Stable
-- INR230 million fund-based facilities: assigned 'IND BB'
/Stable/'IND A4+'
-- INR10 million non-fund-based facilities: assigned 'IND A4+'
VINISHMA TECHNOLOGIES: ICRA Suspends B Rating on INR15cr Loan
-------------------------------------------------------------
ICRA has suspended the [ICRA]B rating for the INR15 crore bank
facilities of Vinishma Technologies Private Limited. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company.
* INDIA: To Shut Down 15 Loss-Making Public Sector Units
--------------------------------------------------------
The Times of India reports that the government has decided to
shut down 15 loss-making public sector units, of which at least
five have been cleared by the cabinet, while opting to go against
internal advice and revive three state-run companies.
Sources told TOI that there were another half-a-dozen sick public
sector companies, which had been identified by NITI Aayog for
closure, but their fate remained uncertain amid hectic lobbying
by ministries, which want to keep them alive in what may be an
effort to protect their turf.
According to TOI, the petroleum ministry has opposed shutting
down of HPCL Biofuels, while the textiles ministry has managed to
elevate the issue of closure of ailing British India Corporation
and Elgin Mills to the level of PMO. At least three pharma PSUs
were referred to a panel of ministers, which has so far opted to
not to close down Hindustan Antibiotics.
TOI relates that following the heavy industry ministry
successfully piloting a proposal to shut down some HMT arms and
the shipping ministry getting the cabinet go-ahead for the
closure of Central Inland Water Transport Corporation, the
government had sought to suggest that it was serious about
shutting down chronically loss-making PSUs, which were a drain on
the exchequer. However, the plan is facing resistance from some
of the administrative ministries.
After NITI Aayog+ submitted its recommendations, principal
secretary to PM Nripendra Misra, who has been involved with the
exercise, indicated that the government's keenness to move ahead
on a path may not be politically popular. What is, however,
strengthening the government's case is that these companies have
not seen significant addition to manpower in recent years and
existing employees are being given a liberal severance package,
says TOI.
"The winding up of (some of) these units, out of 74 loss-making
PSUs identified by the NITI Aayog for closure or sell off, has
received a go-ahead from PMO," said an official, adding that the
list was finalised after several round of consultation held by
Misra with respective ministries, TOI relays.
TOI adds that the NITI Aayog, tasked with preparing a roadmap for
ailing PSUs, had submitted two separate lists of sick and loss-
making PSUs - one comprising those that can be closed down and
the other of those where government can divest its stake.
Out of 74, the Aayog had suggested status quo in case of two
PSUs, strategic disinvestment of 10, plan for revival with option
for strategic disinvestment for 22, transfer of ownership of six,
merger of three, long term lease of five and closure of 26,
reports TOI.
=========
J A P A N
=========
TAKATA CORP: To Sell US Unit to Cover Airbag Recall Costs
---------------------------------------------------------
Nikkei Asian Review reports that Takata Corp. appears ready to
sell a U.S. unit to cope with its airbag recall costs.
According to Nikkei, the troubled airbag maker is to sell Irvin
Automotive Products to U.S. peer Piston Group, sources said
September 27. It would put part of the JPY17 billion ($168
million) in proceeds toward the massive recall.
Details are to be released later this week, the report notes.
In 1989, Takata acquired Irvin Automotive, a maker and
distributor of interior materials for automotive seats and other
products, says Nikkei.
Nikkei relates that most of the more than JPY1 trillion cost of
the airbag recall is currently being borne by automakers, but
Takata is also expected to pitch in. To come up with the
necessary cash, Takata has unloaded its stakes in automakers and
has mulled selling noncore businesses, such as Irvin Automotive,
adds Nikkei.
Japan-based Takata Corporation (TYO:7312) --
http://www.takata.com/en/-- 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.
TAKATA CORP: Affected Carmakers Scrutinize Lifelines
----------------------------------------------------
Craig Trudell, Masatsugu Horie and David Welch at Bloomberg News
report that Takata Corp. and some of the world's biggest
carmakers face an extensive, expensive to-do list as they try to
resolve the worst safety crisis in the auto industry's history.
Executives for the Tokyo-based maker of air bags are scheduled to
meet in Japan with Honda Motor Co. and officials from some of
more than a dozen other customers this week, Bloomberg relates
citing people with knowledge of the situation. The talks are
prompted by five bids made for the beleaguered Takata after
months of concern about its solvency, Bloomberg says.
According to Bloomberg, the central issue for Takata's customers
-- which include General Motors Co. and Volkswagen AG -- is how
those takeover bids divvy up responsibility for paying billions
of dollars in recall costs and potential legal liabilities
stemming from faulty air bags. Bloomberg says Takata is at the
heart of the largest auto-safety recall in U.S. history after
some of its air bags ruptured and killed at least 15 people,
prompting repairs that could exceed 100 million devices
worldwide.
Automakers have been reluctant to help pay Takata's legal bills,
yet they may now be willing to share that burden rather than have
potential buyers drop their bids or put all or part of the
company into bankruptcy, people familiar with the deliberations
said, Bloomberg relates. A bankruptcy could shift the financial
fallout onto the automakers and disrupt their supply of parts for
recalled and new vehicles, said the people, who asked not to be
identified because the discussions are confidential, according to
Bloomberg.
"Carmakers are in a tricky situation at this point," Bloomberg
quotes Koji Endo, a Tokyo-based auto analyst at SBI Securities
Co., as saying. "It's unthinkable to ask Takata to pay all the
costs. If the automakers are not making satisfactory concessions,
some of the bidders may eventually pull out of the process."
Bloomberg notes that Takata has lost nearly three-quarters of its
market capitalization during the past year, dropping its value to
about $285 million.
The company's air bags are inside about one of every five cars
assembled globally -- including by the top three automakers each
in the U.S., Japan and Germany, Bloomberg says. According to
Bloomberg, Takata may announce a sale this week of its Irvin
Automotive Inc. interiors unit, Crain's Detroit Business reported
Monday. Akiko Watanabe, a Takata spokeswoman, declined to comment
on the report.
According to Bloomberg, the U.S. and Japan have ordered recalls
of all Takata air bags that lack an absorbent. Researchers hired
by automakers have found that moisture seeping into Takata's
inflators can lead them to rupture and spray shards of metal and
plastic at motorists and passengers. About 90 million air bags
have to be replaced in the two countries alone.
On September 23, the U.S. National Highway Traffic Safety
Administration published reports from three engineering firms
that detailed why the air bags failed, showing that the cause was
long-term exposure to heat and humidity. The reports also showed
that Takata failed to report problems when they first arose,
Bloomberg says.
Bloomberg relates that the company said in a statement that
"lapses in testing and reporting are unacceptable and
inconsistent with Takata's policies and standards." Takata also
said it has established new positions -- a chief safety assurance
and accountability officer and a full-time vice president for
ethics and compliance, to make sure the problems don't happen
again.
According to Bloomberg, Takata's financial adviser, Lazard Ltd.,
has proposed setting up an independent legal fund using
contributions from Takata, new investors and automakers,
according to people familiar with the proposal. Honda, which is
Takata's largest customer and one of its leading shareholders,
pushed back on that idea, another person said.
Takata and Lazard's four-month search for buyers culminated last
week in bids from KKR & Co., Autoliv Inc., Key Safety Systems
Inc., Flex-N-Gate Corp., and a combined offer from Daicel Corp.
and Bain Capital, Bloomberg notes. The parts maker wants to
whittle those suitors down to two or three candidates by October
and then finalize a deal by year's end, Bloomberg states.
Bidders were asked to submit proposals covering multiple
scenarios for how Takata's recall costs and legal liabilities may
be handled, a person familiar with the process said last week,
adds Bloomberg.
Japan-based Takata Corporation (TYO:7312) --
http://www.takata.com/en/--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.
====================
N E W Z E A L A N D
====================
DICK SMITH: Receivers' 6-Month Report Sheds Light On High Debts
---------------------------------------------------------------
Heather Wright at NetGuide reports that receivers continue to
give little indication of exactly how big the shortfall from
failed retailer Dick Smith's New Zealand business will be, as the
final wind-up of the business rumbles on.
NetGuide relates that the six-month receivers report into the
failed retailer's business -- now known as DSHNZ -- shows that at
the date of the company being placed into receivership in
January, syndicated lenders had secured debts to the tune of an
estimated NZ$136.7 million, excluding ongoing interest and costs.
The debt is cross-collateralised across all assets of the group.
Those debts join an undisclosed amount owed to secured creditors,
preferential claims of NZ$3.3 million, and NZ$12.3 million owed
to unsecured creditors and NZ$11.2 million owed to 'related party
creditor' - parent company Dick Smith Holdings, itself now in
liquidation, NetGuide relates.
According to NetGuide, the report said book value on appointment
suggested an estimated net deficiency of non-circulating assets
available to secured creditors before costs of realisations of
NZ$130.6 million. However, the estimated total realisation is
deemed 'commercial sensitive'.
NetGuide says preferential claims include NZ$1.6 million in
employee claims, NZ$1.5 million owed to IRD and NZ$177,508 of New
Zealand customs duties. Between January 4 and July 4, more than
NZ$5.8 million in wages and salaries was paid out, along with
NZ$9.0 million in supplier payments and NZ$5.0 million in IRD
payments. A range of other payments saw total payments of NZ$21.8
million during the first six month of the receivership.
Unsecured creditors are estimated to be owed NZ$12.3 million with
the receivers reiterating that it is not expected that unsecured
creditors will receive a distribution, NetGuide adds.
NetGuide relates that the receiver's report said at the time of
their appointment, the net book value of plant and equipment
totalled NZ$5.9 million. Hilco Merchant Australia was engaged to
sell the company's fixtures and fittings in an effort to recoup
some costs, while Turners was engaged to realise the assets of
the plant and equipment, NetGuide notes.
"Given the realisation process remains ongoing, the receivers are
not in a position to disclose any further information in respect
of the estimated realisation values of plant and equipment."
The company had NZ$2.2 million in its three bank accounts when it
folded and a stock inventroy with a book value of NZ$32.9
million, including NZ$29.5 million in stock on hand, NetGuide
discloses.
NetGuide adds that store floats held a further NZ$55,650. Cash in
transit, which includes outstanding deposits and EFT settlements
amounted to a further NZ$739,849 while the balance of receivables
totalled NZ$5.4 million, with the receivers declining to provide
an estimate of the realisable value of the receivables 'given the
commercially sensitive nature of these collections'.
NetGuide says the company also had related party receivables of
NZ$14.4 million from its parent company, which is also in
liquidation, with other 'assets', including pre-payments and
defferred tax assets, of NZ$9.2 million. Receivers say they are
continuing to assess the recoverability of the other asset
amounts.
About Dick Smith
Dick Smith Holdings Limited Ltd (ASX:DSH) --
http://dicksmithholdings.com.au/-- is a retailer of consumer
electronics products. The Company sells a range of products
across four categories: office, mobility, entertainment, and
other products and services. The Company has two segments: Dick
Smith Australia and Dick Smith New Zealand.
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 6, 2016, Dick Smith Holdings Ltd was placed in receivership
on Jan. 5, 2016, following the appointment of McGrathNicol as
Voluntary Administrators.
Ferrier Hodgson partners James Stewart, Jim Sarantinos and
Ryan Eagle were appointed Receivers and Managers over DSH and
an number of associated entities. The appointment was made by a
syndicate of lenders which hold security over the group.
The TCR-AP, citing Otago Daily Times, reported on July 26, 2016,
that the creditors of Dick Smith have voted in favor of
liquidation. According to the report, administrator
McGrathNicol will take over as liquidator of 10 companies within
the Dick Smith group following the vote by creditors at a meeting
in Sydney on July 25. ODT related that McGrathNicol will continue
to focus on the exact reasons for Dick Smith's collapse, and who
is to blame.
=================
S I N G A P O R E
=================
PACIFIC ANDES: Court Extends Legal Action Moratorium to Oct. 12
---------------------------------------------------------------
The Straits Times reports that creditors of cash-strapped frozen
fish seller Pacific Andes Resources Development (Pard) appear to
have scored a legal victory on Sept. 26.
According to The Straits Times, a Singapore court extended a
moratorium on legal action launched against the firm but ruled
that it cannot restrain winding-up proceedings being made against
Pard outside of Singapore.
The report says the Pacific Andes group has struggled to repay
debt since its relationships with banks soured last year.
Fearing what it called "the threat of forced liquidation",
Singapore Exchange-listed Pard filed for protection under the
Singapore Companies Act in July, The Straits Times discloses.
Its creditors opposed that move, alleging that the firm was
stalling to shield its units from attempts to investigate certain
suspicious transactions, the report says.
The Straits Times notes that the full-day chamber meeting was
held at the High Court earlier this month to decide if the
moratorium should be extended.
It was attended by senior counsels from Rajah &Tann representing
Maybank; WongPartnership, which represented Rabobank and Standard
Chartered; TSMP Law for Bank of America; and Drew & Napier and
Ashurst, which acted for Pard. Clifford Chance Asia acted for
one group of Pard's bondholders, while Advocatus Law appeared on
behalf of another dissenting group of bondholders.
The Straits Times says Judicial Commissioner Kannan Ramesh
decided on Sept. 26 that the moratorium for proceedings against
Pard would be extended to Oct. 12.
The report relates that the moratorium can be extended further to
Jan. 13 next year if Pard agrees to hold a meeting to vote on a
restructuring plan and agrees to appoint a chief restructuring
officer, who will report to the court and provide independent
oversight over the firm's affairs.
But the moratorium is limited to Singapore and it does not apply
to three other Pard units that Pacific Andes had sought to
protect, The Straits Times understands.
This is because Pacific Andes Enterprises and Parkmond Group,
which trade seafood products and are incorporated in the British
Virgin Islands, and Pacific Andes Food, a service provider based
in Hong Kong, do not have strong enough connections to Singapore,
The Straits Times says.
This leaves the door open for Pard's creditors to file for
liquidation of the firm anywhere else in the world where it has
assets, such as Bermuda or Hong Kong, states The Straits Times.
According to The Straits Times, Pard could apply for an
injunction in these jurisdictions to restrain winding-up
petitions on the basis that a restructuring is ongoing in
Singapore, but the outcome is uncertain, given the Singapore
court's ruling.
The Straits Times says Pard owns about 58% of the shares in
associate firm China Fishery Group, also listed on the SGX and
operating mainly in Peru. Trading in shares of both Pard and
China Fishery has been halted since November last year after they
disclosed that they were being investigated for a possible breach
of the securities law, the report relates.
In January, Pard failed to honor coupon payments on $200 million
worth of 8.5% Singdollar bonds due next year, adds The Straits
Times.
About Pacific Andes
Pacific Andes Resources Development Limited (PARD), a Hong Kong-
based company, is engaged in sourcing, processing, distribution
and sales of seafood products. The Company is focused on the
development, marketing and distribution of fish, frozen fish and
fish products. PARD is part of a business group known as the
Pacific Andes Group.
Pacific Andes Group, the world's 12th-largest seafood company,
filed for bankruptcy in New York after investigations by
Singapore and Hong Kong market regulators and pressure by lenders
to start a fire-sale, according to Bloomberg News. The company's
liquidity crisis was triggered by the El Nino weather pattern and
the depleted Peruvian anchovy stocks that resulted, as well as
"aggressive and improper acts by certain lenders," Chief
Executive Officer Ng Puay Yee said in court filings. While 16
units filed for court protection, others aren't in bankruptcy,
according to the filings, which listed $4.7 billion in assets and
$2.5 billion in debt as of March 28, 2015, Bloomberg said.
====================
S O U T H K O R E A
====================
HANJIN SHIPPING: Vietnamese Exporters Seek Help After Bankruptcy
----------------------------------------------------------------
VietNam News reports that local exporters, freight forwarding
firms and seaports are calling for Government support to ease the
effects of the bankruptcy filed by South Korea's Hanjin Shipping
Global (HJS), the world's seventh-largest container carrier.
VietNam News relates that Bui Thi Lien Thuy, director of Hai Bang
Trading and Service Logistics Company, said Vietnamese exporters
risk losing their goods shipped by Hanjin while freight
forwarding firms could be fined for violating contracts.
According to the report, Thuy said her company has to offload
goods carried by HJS ships at a Singapore port and hire another
carrier at a cost of US$3,000 a container to deliver to their
customers on time.
Nguyen Dinh Viet, deputy director of Viet Nam Maritime
Administration (Vinamarine), said the bankruptcy has affected
business around the world, not just Vietnamese ones, and the
Government should help firms offset their losses, VietNam News
relays.
In addition, Vinamarine encourages firms to be active in finding
solutions themselves for containers outside Viet Nam.
He added that the Ministry of Transport has asked the Government
to establish a team to deal with the effects of the HJS
bankruptcy, VietNam News says relates.
According to the report, Vinamarine said Hanjin accounts for over
5% of Viet Nam's container shipping industry. The bankruptcy has
badly hurt many Vietnamese companies, especially those exporting
seafood, garment and textile products, footwear and furniture to
China, South Korea and the US.
VietNam News says Truong Dinh Hoe, general secretary of the Viet
Nam Association of Seafood Exporters and Producers (VASEP),
estimated that about 150 containers of frozen seafood due to
reach the US by the end of this month are affected.
The Hanjin Chennai has been stranded for days off the coast in
southern Vietnam as it was refused permission to enter a port in
Vung Tau, VietNam News notes. There are concerns about whether
the failed shipping line could pay docking and other fees.
Vietnamese seaports should allow Hanjin ships to dock in Viet Nam
as soon as possible to reduce losses, Viet urged, the report
relays.
VietNam News notes that as many as 733 containers of merchandise
on the Hanjin Chennai were scheduled to dock in HCM City on
September 2.
There were also reports that some Hanjin ships had been seized in
China on behalf of creditors, says VietNam News.
Customs statistics show that the South Korean shipping line has
run up a debt of about $2.5 million to HCM City-based Sai Gon
Newport Corporation, and more than $200,000 to other ports in the
north, VietNam News reports.
About Hanjin Shipping
Hanjin Shipping Co., Ltd., is mainly engaged in the
transportation business through containerships, transportation
business through bulk carriers and terminal operation business.
The Debtor is a stock-listed corporation with a total of
245,269,947 issued shares (common shares, KRW 5000 per share) and
paid-in capital totaling KRW 1,226,349,735,000. Of these shares
33.23% is owned by Korean Air Lines Co., Ltd., 3.08% by Debtor
and 0.34% by employee shareholders' association.
The Company operates approximately 60 regular lines worldwide,
with 140 container or bulk vessels transporting over 100 million
tons of cargo per year. It also operates 13 terminals
specialized for containers, two distribution centers and six Off
Dock Container Yards in major ports and inland areas around the
world. The Company is a member of "CKYHE," a global shipping
conference and also a partner of "The Alliance," another global
shipping conference to be launched in April 2017.
Hanjin Shipping listed total current liabilities of KRW 6,028,543
million and total current assets of KRW 6,624,326 million as of
June 30, 2016.
As a result of the severe lack of liquidity, Hanjin applied to
the Seoul Central District Court 6th Bench of Bankruptcy Division
for the commencement of rehabilitation under the Debtor
Rehabilitation and Bankruptcy Act on Aug. 31, 2016. On the same
day, it requested and was granted a general injunction and the
preservation of disposition of the Company's assets. The Korean
Court's decision to commence the rehabilitation was made on
Sept. 1, 2016. Tai-Soo Suk was appointed as the Debtor's
custodian.
The Chapter 15 case is pending in the U.S. Bankruptcy Court for
the District of New Jersey (Bankr. D.N.J. Case No. 16-27041)
before Judge John K. Sherwood.
Cole Schotz P.C. serves as counsel to Tai-Soo Suk, the Chapter 15
petitioner and the duly appointed foreign representative of
Hanjin Shipping.
HANJIN SHIPPING: U.S. Judge Concerned with Speed of Restructuring
-----------------------------------------------------------------
Tom Corrigan, writing for The Wall Street Journal, reported that
U.S. Bankruptcy Judge John Sherwood in Newark, New Jersey,
expressed concern that Hanjin Shipping Co.'s efforts to cobble
together a restructuring plan may be moving too quickly for U.S.
creditors.
According to the report, the South Korean shipping company hopes
to file a plan of reorganization with a Korean court by Dec. 23,
court papers show, about four months after it sought protection
there and in the U.S.
"It's very condensed," Judge Sherwood said on Sept. 23 at a
status hearing in the company's U.S. bankruptcy proceeding, the
report cited. "I'm just concerned that U.S. creditors will be
asleep at the wheel, because it's a fast process."
Once Hanjin's restructuring plan is on file, it will then be up
to the South Korean court to decide whether to accept the plan or
to let the company go under, the report related.
"I'm getting the sense that things are finally starting to move,"
Hanjin lawyer Ilana Volkov told the Newark bankruptcy court on
Sept. 23, the report further related. "The entire chaotic
situation is no longer an entire chaotic situation."
About Hanjin Shipping
Hanjin Shipping Co., Ltd., is mainly engaged in the
transportation business through containerships, transportation
business through bulk carriers and terminal operation business.
The Debtor is a stock-listed corporation with a total of
245,269,947 issued shares (common shares, KRW 5000 per share) and
paid-in capital totaling KRW 1,226,349,735,000. Of these shares
33.23% is owned by Korean Air Lines Co., Ltd., 3.08% by Debtor
and 0.34% by employee shareholders' association.
The Company operates approximately 60 regular lines worldwide,
with 140 container or bulk vessels transporting over 100 million
tons of cargo per year. It also operates 13 terminals
specialized for containers, two distribution centers and six Off
Dock Container Yards in major ports and inland areas around the
world. The Company is a member of "CKYHE," a global shipping
conference and also a partner of "The Alliance," another global
shipping conference to be launched in April 2017.
Hanjin Shipping listed total current liabilities of KRW 6,028,543
million and total current assets of KRW 6,624,326 million as of
June 30, 2016.
As a result of the severe lack of liquidity, Hanjin applied to
the Seoul Central District Court 6th Bench of Bankruptcy Division
for the commencement of rehabilitation under the Debtor
Rehabilitation and Bankruptcy Act on Aug. 31, 2016. On the same
day, it requested and was granted a general injunction and the
preservation of disposition of the Company's assets. The Korean
Court's decision to commence the rehabilitation was made on
Sept. 1, 2016. Tai-Soo Suk was appointed as the Debtor's
custodian.
The Chapter 15 case is pending in the U.S. Bankruptcy Court for
the District of New Jersey (Bankr. D.N.J. Case No. 16-27041)
before Judge John K. Sherwood.
Cole Schotz P.C. serves as counsel to Tai-Soo Suk, the Chapter 15
petitioner and the duly appointed foreign representative of
Hanjin Shipping.
*********
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
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