/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/161221.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, December 21, 2016, Vol. 19, No. 252 Headlines A U S T R A L I A AMBIENT ADVERTISING: Investigation Heads to NSW High Court T.F. & J.A.: In Liquidation; First Meeting Set for Jan. 11 ZETTA FLORENCE: First Creditors' Meeting Set for Dec. 28 * AUSTRALIA: More Retailers to Enter Into Administration in 2017 C H I N A BIOSTIME INT'L: Proposed Share Rise No Impact on Moody's Ba2 CFR FUJIAN ZHANGLONG: Fitch Rates USD150MM Sr. Unsec. Notes at 'BB+' YINGDE GASES: Moody's Continues to Review B2 CFR for Downgrade H O N G K O N G KING & WOOD MALLESONS: Dentons Drops from Merger Talks I N D I A AKHIL INFRA: Ind-Ra Withdraws 'IND BB-' Long-Term Issuer Rating ANAND MINE: Ind-Ra Assigns 'IND BB' Long-Term Issuer Rating ARCHIMEDIS LABORATORIES: CRISIL Suspends B+ Rating on INR60M Loan ASK HOME: Ind-Ra Assigns 'IND BB+' Long Term Issuer Rating BALAJI FABRICCS: CRISIL Suspends 'B' Rating on INR70MM Term Loan BANSAL INFRATECH: CRISIL Suspends B+ Rating on INR250MM Cash Loan CAPITAL ELECTRICALS: Ind-Ra Withdraws 'IND B' LT Issuer Rating CAPITAL POWER: Ind-Ra Withdraws 'IND BB-' Long-Term Issuer Rating CAPITAL POWER SYSTEMS: Ind-Ra Withdraws 'IND BB' LT Issuer Rating CHAUHAN POULTRY: CRISIL Reaffirms 'B' Rating on INR57.5MM Loan CHOWDHRY RUBBER: CRISIL Suspends B+ Rating on INR175MM Loan CONTENTRA TECHNOLOGIES: CRISIL Suspends B+ Rating on INR50MM Loan DATT REALINFRA: CRISIL Assigns B+ Rating to INR90MM Term Loan EDGETECH AIR: Ind-Ra Withdraws 'IND BB-' Long-Term Issuer Rating ELECON: CARE Assigns 'B' Rating to INR3.0cr Long Term Loan GROTECH LANDSCAPE: Ind-Ra Withdraws 'IND BB+' LT Issuer Rating JADEJA INDUSTRIES: CARE Assigns 'B+' Rating to INR9.90cr LT Loan JAYACHITRA GARMENTS: Ind-Ra Withdraws 'IND BB' LT Issuer Rating KAMACHI INDUSTRIES: Ind-Ra Affirms LT Issuer Rating at 'IND D' KARTHIKEYA AGRO: CARE Reaffirms B+ Rating on INR7.80cr LT Loan KING REFINERIES: Ind-Ra Withdraws 'IND B+' LT Issuer Rating KINGFISHER AIRLINES: Still No Takers for 'Kingfisher House' KRUPANIDHI CONSTRUCTION: CARE Reaffirms B+ INR4.18cr Loan Rating MAHARAJA COLD: CARE Assigns 'B' Rating to INR5.0cr LT Loan MAYA CONSTRUCTION: Ind-Ra Assigns 'IND BB' LT Issuer Rating MURLIDHAR JEWELLERS: Ind-Ra Withdraws 'IND B' LT Issuer Rating NIKKI STEELS: Ind-Ra Withdraws 'IND B+' Long-Term Issuer Rating NIKUNJ EXPORTS: CRISIL Suspends 'B' Rating on INR62.5MM Loan NILKANTH COLD: CARE Assigns 'D' Rating to INR4.40cr LT Loan PAE LIMITED: CARE Reaffirms 'D' Rating on INR15cr Long Term Loan PINE EXPORTERS: CARE Reaffirms 'B' Rating on INR3.50cr LT Loan PRABHU CONSTRUCTIONS: Ind-Ra Assigns 'IND BB' LT Issuer Rating PREMIER PLASTICS: CARE Assigns B+ Rating to INR12.10cr LT Loan S S DEVELOPERS: Ind-Ra Withdraws 'IND B' Long-Term Issuer Rating S. M. INFRASTRUCTURE: CRISIL Suspends B+ Rating on INR99MM Loan SARAF TRADING: Ind-Ra Assigns 'IND B' Long-Term Issuer Rating SAS AUTOMOTIVES: Ind-Ra Withdraws IND BB Long-Term Issuer Rating SATLUJ SPINTEX: Ind-Ra Withdraws IND BB- Long-Term Issuer Rating SHARON BIO-MEDICINE: CARE Lowers INR367.54cr Loan Rating to 'D' SHIVA METALLOYS: CRISIL Suspends B+ Rating on INR110MM Cash Loan SHREE BALAJI: CRISIL Reaffirms 'B' Rating on INR27.5MM Cash Loan SLR CONSTRUCTION: CRISIL Suspends B+ Rating on INR25MM Loan STERIMED SURGICALS: CRISIL Suspends 'B' Rating on INR30MM Loan T.C. TERRYTEX: Ind-Ra Withdraws 'IND BB+' Long-Term Issuer Rating TAURUS POWERTRONICS: CRISIL Suspends B+ Rating on INR51MM LT Loan TIRUPATI TRADING: CRISIL Suspends B+ Rating on INR110MM Loan TRIDENT AUTO: Ind-Ra Withdraws 'IND BB-' Long-Term Issuer Rating TWINCITY SUNLIFE: Ind-Ra Withdraws 'IND B+' LT Issuer Rating UJJAWAL SAVERA: CRISIL Suspends 'B' Rating on INR10MM LT Loan VIBFAST PIGMENTS: Ind-Ra Affirms 'IND BB-' LT Issuer Rating VIBFAST PIGMENT PRIVATE: Ind-Ra Affirms IND BB- LT Issuer Rating J A P A N TOSHIBA CORP: Canon Completes Acquisition of Medical Unit M A L A Y S I A PERISAI PETROLEUM: Ezra Wants to Settle Share Sale Dispute S O U T H K O R E A HANJIN SHIPPING: Must Disclose U.S. Assets, Judge Says - - - - - ================= A U S T R A L I A ================= AMBIENT ADVERTISING: Investigation Heads to NSW High Court ---------------------------------------------------------- Arvind Hickman at AdNews reports that an investigation into Ambient Advertising headed to the NSW Supreme Court on Dec. 19 where former directors, employees and related parties were cross- examined about allegations the outdoor specialist deliberately and systematically overcharged clients and media agencies over a number of years. AdNews says the cross-examination is being led by NSW Supreme Court-appointed special purpose liquidator Nicholas Crouch of Crouch Amirbeaggi. He has spent months gathering evidence that suggests a majority of clients and media agencies that used Ambient Advertising may have paid for phantom advertising - street posters that were ordered by clients but never delivered, according to AdNews. AdNews has seen a handful of cases where media agencies from Dentsu Aegis Network, GroupM, Publicis Media and more were left short changed. In some of the more extreme cases, Ambient Advertising trimmed orders by more than 50%. "It's clear to us that the advertising agencies have been charged for services that were not rendered. We're still trying to determine who is responsible for that behavior . . . it's too early for us to conclusively say who that may be," Mr. Crouch told AdNews. "The clients and ad agencies are innocent in this. It's very difficult to detect which is why it was probably going on for years." AdNews relates that the investigation took a random sample of 100 contracts for street media advertising through Ambient Advertising. "In those 100 contracts, 80% of them had transactions which indicated that the clients had not received what they paid for. This was usually a 20% trim to their order," the report quotes Mr. Crouch as saying. About 60% of Ambient Advertising's revenue comes from street media sales, the report notes. It is one of five areas being investigated to establish events that may have contributed to Ambient Advertising entering voluntary liquidation in 2014. These include an investment into a New Zealand company Titan Media Group, management fee payments worth $6 million to Ambient Advertising directors, and the transfer of Ambient Advertising assets and contracts into a new advertising business set up prior to liquidation, says AdNews. Mark Fishwick, a well-known ad man, founded Titan Media Group, Ambient Advertising and is group chairman of Revolution 360. After Ambient Advertising liquidated, several staff members were offered roles at Revolution 360, AdNews adds. T.F. & J.A.: In Liquidation; First Meeting Set for Jan. 11 ---------------------------------------------------------- Timothy Clifton and Daniel Lopresti were appointed as Joint and Several Liquidators of T.F. & J.A. Smith Pty. Ltd., formerly trading as B & T Smith Bros General Builders, on Dec. 19, 2016. A meeting of creditors will be held at 11:00 a.m. on Jan. 11, 2017, at Clifton Hall, Level 3, 431 King William Street, in Adelaide. ZETTA FLORENCE: First Creditors' Meeting Set for Dec. 28 -------------------------------------------------------- A first meeting of the creditors in the proceedings of Zetta Florence Fine Paper Pty Ltd will be held at the Boardroom of APL Insolvency, Level 5, 150 Albert Road, in South Melbourne, Victoria, on Dec. 28, 2016, at 11:00 a.m. Jeremy Robert Abeyratne of APL Insolvency was appointed as administrator of Zetta Florence on Dec. 16, 2016. * AUSTRALIA: More Retailers to Enter Into Administration in 2017 ---------------------------------------------------------------- Madeleine Heffernan at The Sydney Morning Herald reports that after analysing the financial health of retailers with more than 4,000 stores, Macquarie said "profitability for apparel retailers remaining challenging", particularly for unlisted companies, as retail sales moderate and the lower Australian dollar raises import prices. "Given the challenging retailer environment, we expect further retailers to enter into administration after the December peak trading period (i.e. in the first quarter of 2017)," the broker told clients, SMH relates. According to SMH, Macquarie said several unlisted retailers with about 500 stores between them were unprofitable. These were RSH Australia, which owns jeans brand Westco and shoes brand Novo; Fast Future Brands, which owns clothing brands Valley Girl and TEMT; and Pepkor (SE Asia), which owns discount department stores Harris Scarfe and Best & Less. "We believe the possibility of further administrations from underperforming chains remains a risk for the [listed property] sector," SMH quotes the broker as saying. "As a result of declining profitability, a number of the retailers, particularly the unlisted apparel retailers, have begun closing less profitable stores. "Indeed, we expect [clothing brand] Esprit, [clothing brand] Jeanswest (194 stores), RSH (135 stores) and Pretty Girl (about 382 stores) have been net closers of stores . . ." SMH relates that John Winter, chief executive of the insolvency industry body Australian Restructuring Insolvency and Turnaround Association, said the "general feeling is that we expect to see an increase in retail insolvencies early in the new year. "It appears that an increasing number of retailers are coming under financial pressure.The current level of retail discounting in a period where retailers tend to try to maximise their margins is indicative of this. "Most will endeavour to trade through Christmas, though, and any traditional post-Christmas sales to move their stock, so January and February will be telling. The number of recent retailers who did not even make it to the Christmas period shows that the sector is coming under real pressure." According to SMH, the Macquarie report said while two major listed rag traders have struggled in recent years -- Noni B, and Specialty Fashion, the owner of Katies and Rivers brands -- big unlisted companies have generally fared worse. ARJ Group Holdings, which owns womenswear brands Sussan, Sportsgirl and Suzanne Grae and is led by Rich Lister Naomi Milgrom, likely closed some stores, Macquarie, as cited by SMH, said. Retail Apparel Group, which owns menswear brands y.d., Tarocash and Connor, has seen its profitability gradually decline since the 2011 financial year, it said, adds SMH. ========= C H I N A ========= BIOSTIME INT'L: Proposed Share Rise No Impact on Moody's Ba2 CFR ---------------------------------------------------------------- Moody's Investors Service says that Biostime International Holdings Limited's proposal to raise its stake in Biostime Australia Holdings Pty Ltd (BAH, unrated) by 17% -- thereby taking its ownership level to 100% -- and changes in management will not immediately affect its ratings and outlook. Biostime has a Ba2 corporate family rating and a Ba3 rating on its senior notes, with a stable outlook. On Dec. 15, 2016, Biostime announced that it had entered into an agreement with BAH's minority shareholders to buy the 17% stake in BAH for AUD311 million (HKD1.8 billion). The transaction will -- as indicated -- raise Biostime's stake to 100% from 83%. "While the timing of the proposed increase in Biostime's stake in Biostime Australia is earlier than expected, the proposal is in line with the company's previously announced plan," says Gerwin Ho, a Moody's Vice President and Senior Analyst. Moody's expects that the total consideration will be payable in cash and will be financed from Biostime's internal cash reserve and from external financing. The acquisition requires regulatory and shareholder approvals and is expected to complete before late April 2017. BAH has in turn a 100% stake in Swisse Wellness Group Pty Ltd (unrated). Swisse is engaged in the marketing and distribution as well as research of vitamins, health supplements, and skincare and sports nutrition products in Australia, New Zealand and China under the "Swisse" brand. "While the headroom for Biostime's ratings is expected to narrow as a result of higher leverage resulting from the proposed transaction, Moody's expects its stable business profile and good profitability to continue to support its Ba2 rating," says Ho. Moody's estimates that Biostime's debt leverage - as measured by debt/EBITDA - will rise to about 3.8x-4.0x in the next 12 months from Moody's expectation of around 3.5x in 2016. This expected level represents a narrowing in headroom versus its trigger of 3.5-4.0x. Moody's estimates that Biostime's cash flow coverage -- as measured by retained cash flow/net debt -- will fall below Moody's trigger of 15% in the next 12 months. However, Moody's expects this situation to be temporary and the ratio to recover to 16-17% in the next 18-24 months due to scheduled debt repayments. Biostime's stable business profile is supported by the strength of its infant milk formula business, resulting from its premium product positioning and its strong presence in baby specialty store channels, as evidenced by its steady market share. The company's profitability is good, reflecting in turn its brand equity and the confidence-sensitive nature of its Biostime infant milk formula product and Swisse's vitamin, herbal and mineral supplement (VHMS) products. Moody's estimates that Biostime's profitability -- as measured by its EBIT margin -- will remain steady at 22%-23%. This level of profitability is strong for its Ba rating level. On Dec. 15, 2016, Biostime also announced that Radek Sali, its executive director and the chief executive officer of Swisse, had tendered his resignation and will leave the company as of Dec. 31, 2016. Moody's believes that the negative impact of the management change is mitigated by the presence of an already appointed successor and the fact that most of Swisse's management team will remain. Moody's will monitor Swisse's performance after the change in management. At end-June 2016, Biostime's cash balance -- including restricted cash -- was RMB2.7 billion and its short-term debt was RMB2.0 billion, resulting in cash/short-term debt of 134%. In light of the proposed transaction, Moody's also expects Biostime to manage its liquidity and to arrange financing, based on satisfactory terms and conditions. The stable outlook reflects Moody's expectation that it will maintain its market positions and stable credit profile, including stable profit margin and cash generation. The principal methodology used in these ratings was Global Packaged Goods published in June 2013. Biostime International Holdings Limited is a leading domestic infant milk formula provider in China. The company acquired an 83% stake in the leading Australian vitamin, herbal and mineral supplements (VHMS) provider Swisse Wellness Group Pty Ltd (unrated) in September 2015. Established in 1999, Biostime is headquartered in Guangzhou and listed on Hong Kong's Stock Exchange in December 2010. Chairman and CEO Mr. LUO Fei and other principal shareholders together held a 72% stake at end-June 2016. FUJIAN ZHANGLONG: Fitch Rates USD150MM Sr. Unsec. Notes at 'BB+' ---------------------------------------------------------------- Fitch Ratings has assigned Fujian Zhanglong Group Co., Ltd.'s (Zhanglong, BB+/Stable) USD150 million 4.50% senior unsecured notes due 2019 a final rating of 'BB+'. The bond is issued directly by Zhanglong and is rated at the same level as the Issuer Default Rating on the company. The bond will constitute a direct, unconditional, unsubordinated and unsecured obligation of Zhanglong and rank at least pari passu with all of the company's other present and future unsecured obligations. The assignment of the final rating follows the receipt of documents conforming to information already received and the final rating is in line with the expected rating assigned on Dec. 5, 2016. KEY RATING DRIVERS Linked to Zhangzhou Municipality: The ratings of Zhanglong are credit-linked to, but not equalised with, Fitch's internal assessment of the creditworthiness of Zhangzhou Municipality. The link reflects strong government control and oversight of the entity, mid-range assessment of the entity's strategic importance to the municipality, integration with the government budget and legal status. These factors result in a high likelihood of extraordinary support, if needed, from the municipality. Therefore, Zhanglong is classified as a credit-linked public- sector entity under Fitch's criteria. Zhangzhou's Creditworthiness: Zhangzhou is the fastest-growing economy in China's southern Fujian Province. Its gross regional product (GRP) has been expanding at about 11% a year for the past three years. GRP per capita for 2015 was CNY55,569, higher than the national average of CNY49,351. Its operating revenue has been growing steadily with satisfactory operating margin. Fiscal strength was partly offset by a high debt burden relative to its fiscal performance. Legal Status Attribute Assessed at Mid-Range: Zhanglong is registered as a state-owned limited liability company under Chinese company law. It is wholly owned by Zhangzhou State-owned Assets Supervision and Administration Commission and supervised by the Zhangzhou government. Strategic Importance Attribute Assessed at Mid-Range: Zhanglong is one of the largest investment and financing vehicles owned by the Zhangzhou Municipality, and it plays an important role in the city's daily operations and development. It is the city's sewage treatment service provider and the major water supplier to urban areas in the city. It also engages in infrastructure construction and has participated in bridge and expressway projects linking Zhangzhou Municipality to other cities. In addition, Zhanglong is a designated agency for sourcing building materials for certain local-government-owned housing and infrastructure projects. Integration Attribute Assessed at Mid-Range: Zhanglong has been receiving subsidies from the Zhangzhou municipal government. It received CNY912 million in 2013, CNY728 million in 2014, CNY562 million in 2015 and CNY461 million in the first half of 2016. Furthermore, Zhanglong had other receivables of more than CNY800m due from government entities at end-2015. Control and Supervision Attribute Assessed at Stronger: Zhanglong's board of directors is appointed by the government. Major projects and investments require the government's approval. Zhanglong's financing plan and debt levels are monitored by the government, and the company is required to report its operational and financial results to the government on a regular basis. 'B' Category Standalone Profile: Zhanglong has a weak credit profile, with increasing debt and weakening profitability. Its debt-to-adjusted EBITDA ranged from 7x to more than15x in the past three years. Fitch believes this trend will continue in the medium term, driven by ongoing infrastructure investments in Zhangzhou City, and the thin profitability of its trading business. RATING SENSITIVITIES Link with Municipality: A stronger or more explicit support commitment from Zhangzhou Municipality, or an increased focus on public-service provision and infrastructure construction may trigger a positive action on Zhanglong's ratings. Significant weakening of Zhanglong's strategic importance to the municipality, dilution of the government's shareholding, and/or reduced government support could result in a downgrade. Creditworthiness of Municipality: An upgrade of Fitch's internal credit view on Zhangzhou Municipality may trigger a positive rating action. Negative rating action could derive from deterioration in Zhangzhou Municipality's credit profile. A rating action on Zhanglong would also lead to a similar action on the US dollar notes. YINGDE GASES: Moody's Continues to Review B2 CFR for Downgrade -------------------------------------------------------------- Moody's Investors Service says that Yingde Gases Group Company Limited's B2 corporate family rating, and the B3 senior unsecured rating on the bonds issued by Yingde Gases Investment Limited and guaranteed by Yingde Gases continue to be on review for downgrade. Moody's review is based on concerns over the adequacy of Yingde Gases offshore funding, even after the company's announcement of a share placement. On Dec. 18, 2016, Yingde Gases announced that it and Originwater Hong Kong Environmental Protection Co., Limited (unrated) - a wholly owned subsidiary of Beijing OriginWater Technology Co., Ltd. (unrated) - entered into a revised proposed equity issuance agreement. The net proceeds to be raised from the proposed placing total approximately HKD598 million. Moody's points out that while the share placement is credit positive in providing Yingde Gases with offshore funding, Moody's estimates that Yingde Gases' offshore funding needs exceed the issuance amount. The principal methodology used in these ratings was Global Chemical Industry Rating Methodology published in December 2013. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology. Yingde Gases Group Company Limited is one of the largest players in the independent onsite industrial gas market in China, with RMB7.9 billion in revenues in 2015. At end-June 2016, it had a total of 69 gas production facilities in operation and another 11 under development. ================ H O N G K O N G ================ KING & WOOD MALLESONS: Dentons Drops from Merger Talks ------------------------------------------------------ Suevon Lee, writing for Bankruptcy Law360, reported that Dentons has withdrawn from discussions to take over King & Wood Mallesons' troubled European arm, leaving only a handful of parties left to snatch up all or part of the business, a source close to Dentons said, confirming media reports. Though the firm was once in contention to acquire a large portion of KWM Europe, the British legal magazine LegalWeek said the firm was no longer pursuing that avenue as of last week. A source close to Dentons independently confirmed to Law360 the report. In a separate report, Mr. Lee said that a day after Dentons pulled out of the hunt for King & Wood Mallesons' Europe and Middle East arms, Reed Smith LLP is trying to snap up partners looking for a new home, the firm confirmed to Law360. "I can confirm that discussions are at an early stage," Reed Smith's Europe & Middle East managing partner Tamara Box said in a statement, the report said. About King & Wood Mallesons King & Wood Mallesons is a multinational law firm headquartered in Hong Kong. With more than 2,200 lawyers and $1 billion in revenue, King & Wood Mallesons is a product of two large scale mergers: in 2012, China's King & Wood PRC Lawyers merged with Mallesons Stephen Jaques of Australia, and then what became King & Wood Mallesons merged with SJ Berwin of the United Kingdom in 2013. KWM is the first and only global law firm based in Asia and is the largest law firm headquartered outside of the United States or European Union. It is the 6th largest firm in the world by number of lawyers and one of the top thirty by revenue. The firm's Chinese, Australian and UK divisions each maintains separate finance units but operates under a single brand name. European Arm's Woes KWM's European and Middle East (EUME) operation as of November 2016 had 130 partners and more than 500 lawyers altogether. Its offices in Europe and the Middle East are London, Cambridge, Madrid, Brussels, Luxembourg, Milan, Paris, Frankfurt, Munich, Dubai and Riyadh. In 2015, the division accounted for 27 percent of the firm's global revenue. The Australian, Chinese, Hong Kong portions of KWM are financially separate and have different management from the European operations. KWM Europe faced cash flow issues because of a slowdown in business and partner defections. In 2016, it was unable to make timely payments to partners. The firm subsequently announced a plan to inject $18 million of capital by raising it from partners. But the recapitalization plan failed due to a number of partner departures. Among those who jumped ship are managing partner Rob Day and its head of investments practices Michael Halford, left. On Nov. 10, 2016, the firm announced that KWM global managing partner Stuart Fuller would step down and that a process was underway to select a new leader. On Nov. 16, 2016, KWM announced a proposed bail-out, under which the Chinese division agreed to infuse GBP14 million of additional capital to KWM Europe, provided that 60% of partners agree to a 12 month "lock-in" and provide some additional capital. However, insufficient partners committed to the deal. By the end of November 2016, KWM announced that it was considering a range of strategic options, including a merger of the European division. In early December 2016, reports say that KWM Europe was in negotiations to enter pre-packaged administration proceedings in the UK. KWM Europe announced on Dec. 9, 2016, that it has received "a number of indicative purchase offers." ========= I N D I A ========= AKHIL INFRA: Ind-Ra Withdraws 'IND BB-' Long-Term Issuer Rating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Akhil Infra Projects Pvt. Ltd.'s Long-Term Issuer Rating of 'IND BB-' The Outlook was Stable. The ratings have been withdrawn due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for the company. AKHIL's Ratings: - Long-Term Issuer Rating: 'IND BB-'; Outlook Stable; rating withdrawn - INR30 million fund-based limit: 'IND BB-'; rating withdrawn - INR30 million non-fund-based limit: 'IND A4+'; rating withdrawn Ratings ------- Long Term Issuer Rating WD Fund Based Working Capital Limit WD INR30m Non-Fund Based Working Capital Limit WD INR30m ANAND MINE: Ind-Ra Assigns 'IND BB' Long-Term Issuer Rating ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Anand Mine Tools Private Limited a Long-Term Issuer Rating of 'IND BB'. The Outlook is Stable. KEY RATING DRIVERS The ratings reflect AMTPL's small scale of operations and moderate credit profile. In FY16, revenue was INR208 million (FY15: INR49 million), net financial leverage (Ind-Ra adjusted net debt/operating EBITDA) was 5.2x (4.2x), EBITDA interest coverage (operating EBITDA/gross interest expense) was 1.6x (2x) and EBITDA margin was 9.1% (36.4%). AMTPL's liquidity profile is moderate with its fund-based facilities being utilised at an average of 93% over the 12 months ended October 2016. However, the ratings benefit from the founders' more than a decade-long experience in the trading business. RATING SENSITIVITIES Positive: A substantial increase in the scale of operations, while maintaining profitability margins leading to a sustained improvement in the credit profile will lead to a positive rating action. Negative: A substantial decline in the revenue or profitability margins resulting in sustained deterioration in the credit profile will lead to a negative rating action. COMPANY PROFILE Incorporated in 2010, AMTPL is involved in trading of domestic as well as imported Wilfley make pumps and spare parts to IFFCO (Paradeep, Orissa), NTPC Limited, Western Coalfield Limited, etc. The company is also an authorised dealer of JCB India Limited for sales and service of all JCB make equipment and spare parts in Nagpur, Chandrapur, Wardha, Yavatmal, Bhandara, Gondia, Gadchiroli and Wani. It has a modern workshop facility at Butibori near Nagpur for repairing and rehabilitation of heavy mining and construction machinery, and its components. AMTPL was founded by Hemant Jawade and Tukaramji Mahadeorao Jawade. AMTPL's Ratings: - Long-Term Issuer Rating: assigned 'IND BB; Outlook Stable - INR40.15 million long-term loan: assigned 'IND BB'; Outlook Stable - INR60 million fund-based working capital facilities: assigned 'IND BB'; Outlook Stable Ratings ------- Long Term Issuer Rating IND BB/Stable Fund Based Working Capital Limit IND BB/Stable INR60m Term loan IND BB/Stable INR40.15m ARCHIMEDIS LABORATORIES: CRISIL Suspends B+ Rating on INR60M Loan ----------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Archimedis Laboratories Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60 CRISIL B+/Stable Foreign Letter of Credit 20 CRISIL A4 Long Term Loan 37.4 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by ALPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, ALPL is yet to provide adequate information to enable CRISIL to assess ALPL'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 2004, ALPL is engaged in manufacturing of bulk drugs and intermediaries. The company is promoted by Mr. M.V. Reddy. ASK HOME: Ind-Ra Assigns 'IND BB+' Long Term Issuer Rating ---------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned ASK Home Furnishing Private Limited a Long-Term Issuer Rating of 'IND BB+'. The Outlook is Stable. KEY RATING DRIVERS The ratings are constrained by AHFPL's small scale of operations as evident from the top line of INR617.76 million in FY16. The ratings are also constrained by the raw material price fluctuation risk and high competition from organised and small/mid-sized unorganised players, faced by the company which would impact its margins. The ratings are also constrained by the working capital intensity of the company's business. The ratings are supported by the three-decade-long experience of AHFPL's promoters in manufacturing blankets, the company's strong relationships with its customers and suppliers and its moderate operating EBITDA margins (FY16: 7.34%; FY15: 7.72%). The ratings are also supported by AHFPL's moderate credit metrics and liquidity, as reflected by its gross interest coverage (operating EBITDA/gross interest expense) of 2.33x in FY16 (FY15: 2.13x) and financial leverage (total adjusted debt/operating EBITDAR) of 3.47x (3.33x). Its use of the fund-based facility was 93% on an average over the 12 months ended November 2016. RATING SENSITIVITIES Positive: A significant improvement in the scale of operations, along with an improvement in EBITDA margins could result in a positive rating action. Negative: decline in revenue growth or EBITDA margins leading to deterioration in the credit metrics could result in a negative rating action. COMPANY PROFILE AHFPL was incorporated in 2005 by Mr. Sandeep Singh Kochar and his wife Mrs Amita Kochar. The company manufactured mink blankets and mink blanket fabrics at its facility in Gurgaon, Haryana. The company sells its products all over India under the brand name Home Jewels. AHFPL's ratings: - Long-Term Issuer rating: assigned 'IND BB+'; Outlook Stable - INR160 million fund-based facilities: assigned 'IND BB+'; Outlook Stable and 'IND A4+' - INR60.8 million term loan facilities: assigned 'IND BB+'; Outlook Stable - INR5 million non-fund-based facilities: assigned 'IND A4+' Ratings ------- Long Term Issuer Rating IND BB+/Stable Fund Based Working Capital Limit IND BB+/Stable INR160m Fund Based Working Capital Limit IND A4+ INR160m Non-Fund Based Working Capital Limit IND A4+ INR5m Term loan IND BB+/Stable INR60.8m BALAJI FABRICCS: CRISIL Suspends 'B' Rating on INR70MM Term Loan ---------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Balaji Fabriccs. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Packing Credit 30 CRISIL A4 Proposed Long Term Bank Loan Facility 70 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by Balaji with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, Balaji is yet to provide adequate information to enable CRISIL to assess Balaji'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 as a partnership firm in 1995, by Mr. P Shanmugam, Balaji manufactures and exports home textiles and is based in Karur (Tamil Nadu). BANSAL INFRATECH: CRISIL Suspends B+ Rating on INR250MM Cash Loan ----------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Bansal Infratech Synergies India Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 400 CRISIL A4 Cash Credit 250 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by BISIL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, BISIL is yet to provide adequate information to enable CRISIL to assess BISIL'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 1988 by Mr. Kashi Ram Banal, BISIL undertakes civil, structural, and road construction work for government bodies. CAPITAL ELECTRICALS: Ind-Ra Withdraws 'IND B' LT Issuer Rating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Capital Electricals Limited's 'IND B' Long-Term Issuer Rating. The Outlook was Stable. The ratings have been withdrawn due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for the company. CEL's Ratings: - Long-Term Issuer Rating: 'IND B'; Outlook Stable; rating Withdrawn - INR30 million term loans: 'IND B'; Outlook Stable; rating Withdrawn - INR70 million fund-based limits: Long-term 'IND B' Outlook Stable and Short-term 'IND A4'; ratings withdrawn - INR100 million non-fund-based limits: Long-term 'IND B'; Outlook Stable and Short-term 'IND A4'; ratings withdrawn Ratings ------- Long Term Issuer Rating WD Fund Based Working Capital Limit WD INR70m Fund Based Working Capital Limit WD INR70m Non-Fund Based Working Capital Limit WD INR100m Non-Fund Based Working Capital Limit WD INR100m Term loan WD INR30m CAPITAL POWER: Ind-Ra Withdraws 'IND BB-' Long-Term Issuer Rating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Capital Power Infrastructure Limited's 'IND BB-' Long-Term Issuer Rating. The Outlook was Stable. The ratings have been withdrawn due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for the company. CPIL's Ratings: - Long-Term Issuer Rating: 'IND BB-'; Outlook Stable; rating Withdrawn - INR450 million fund-based limits: 'IND BB-'; Outlook Stable and 'IND A4+'; ratings withdrawn - INR944.8 million non-fund-based limits: 'IND BB-'; Outlook Stable and 'IND A4+'; ratings withdrawn Ratings ------- Long Term Issuer Rating WD Fund Based Working Capital Limit WD INR450m Fund Based Working Capital Limit WD INR450m Fund/Non-Fund Based Working Capital Limit WD INR944m Fund/Non-Fund Based Working Capital Limit WD INR944m CAPITAL POWER SYSTEMS: Ind-Ra Withdraws 'IND BB' LT Issuer Rating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Capital Power Systems Limited's 'IND BB' Long-Term Issuer Rating. The Outlook was Stable. The ratings have been withdrawn due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for the company. CPSL's Ratings: - Long-Term Issuer Rating: 'IND BB'; Outlook Stable; rating Withdrawn - INR150 million fund-based limits: Long-term 'IND BB'; Outlook Stable and Short-term 'IND A4+'; ratings withdrawn - INR400 million non-fund-based limits: Long-term 'IND BB'; Outlook Stable and Short-term 'IND A4+'; ratings withdrawn Ratings ------- Long Term Issuer Rating WD Fund Based Working Capital Limit WD INR150m Fund Based Working Capital Limit WD INR150m Non-Fund Based Working Capital Limit WD INR400m Non-Fund Based Working Capital Limit WD INR400m CHAUHAN POULTRY: CRISIL Reaffirms 'B' Rating on INR57.5MM Loan -------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Chauhan Poultry Farm continues to reflect CPF's large working capital requirements, modest scale of operations and below-average financial risk profile because of high gearing and modest debt protection metrics. These rating weaknesses are mitigated by the promoter's extensive experience in the poultry industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 32.5 CRISIL B/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 10 CRISIL B/Stable (Reaffirmed) Term Loan 57.5 CRISIL B/Stable (Reaffirmed) Outlook: Stable CRISIL believes CPF will benefit from its promoter's extensive industry experience. The outlook may be revised to 'Positive' in case of increase in scale of operations or profitability substantially leading to higher-than-expected cash accrual while prudently managing the working capital requirement. Conversely, the outlook may be revised to 'Negative' if the cash accrual or working capital cycle deteriorates, or the capital structure weakens because of a large, debt-funded capital expenditure (capex) programme. CPF, set up as a partnership firm in 1990s, manages a poultry farm in Yamuna Nagar (Haryana) with a capacity of 1,80,000 egg- laying birds. The firm is promoted by Mr. Mansingh. CHOWDHRY RUBBER: CRISIL Suspends B+ Rating on INR175MM Loan ----------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Chowdhry Rubber & Chemicals Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 20 CRISIL A4 Cash Credit 175 CRISIL B+/Stable Letter of Credit 75 CRISIL A4 The suspension of ratings is on account of non-cooperation by CRPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, CRPL is yet to provide adequate information to enable CRISIL to assess CRPL'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. CRPL was set up by Mr. Deepak Chaddha and family in 2008 as a private limited company, by reconstituting Chowdhry Rubber and Chemical, set up in 1972, by Late Shri V.M Chaddha. The company is engaged in trading of rubber chemicals, rubber and allied products and also acts as a consignment stockist for Aditya Birla Nuvo for Carbon Black. In 2013-14, the company has signed an exclusive distribution agreement with Indian Synthetic Rubber Ltd. (ISRL) for distribution of its products in North, North-east and East India. CONTENTRA TECHNOLOGIES: CRISIL Suspends B+ Rating on INR50MM Loan ----------------------------------------------------------------- CRISIL has suspended its rating on the bank facility of Contentra Technologies (India) Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 50 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by CTIPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, CTIPL is yet to provide adequate information to enable CRISIL to assess CTIPL'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. For arriving at the rating, CRISIL has combined the business and financial risk profiles of CTIPL and its wholly owned US subsidiary, Contentra Technologies Inc. The subsidiary is in the same line of business as CTIPL and the two are together referred as Contentra group. CTIPL, formerly known as Planman Technologies India Pvt Ltd, was started by Planman Consulting Group in 2005 in Okhla, New Delhi. It is an ISO: 9001-2000- and 27001-certified company in the areas of archiving services, content conversion, publishing and creative services, web content, and application development. CTIPL's wholly owned subsidiary, Contentra Technologies Inc, based in Cincinnati, Ohio (USA) and established in 2006, is in the same line of business. DATT REALINFRA: CRISIL Assigns B+ Rating to INR90MM Term Loan ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long- term bank facility of Datt Realinfra Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 90 CRISIL B+/Stable The ratings reflect risk averse nature of the promoter of DRPL along will its experience in real estate industry. These rating strengths are partially offset by the susceptibility to risks inherent in the real estate sector, geographical concentration resulting high off-take risk. Outlook: Stable CRISIL believes that DRPL will maintain its healthy financial risk profile, because of the experience and risk averse nature of the promoters in real estate industry. The outlook may be revised to 'Positive' if the company strengthens its financial flexibility and cash flow adequacies with sizeable revenue from the balance portion of its completed projects. Conversely, the outlook may be revised to 'Negative' if DRPL's liquidity is stretched by significantly low offtake or weakening of financial risk profile due to substantial contracting of debt and/or time and cost overruns in the execution of its new projects. DRPL was incorporated in 2012 and is engaged in the development of residential real estate in Jabalpur, Madhya Pradesh. DRPL is promoted and is currently being run by Mr. Sudhir Datt. EDGETECH AIR: Ind-Ra Withdraws 'IND BB-' Long-Term Issuer Rating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Edgetech Air Systems Private Limited's 'IND BB-(suspended)' Long-Term Issuer Rating. The ratings have been withdrawn due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for EASPL. Ind-Ra suspended EASPL's ratings on 15 June 2016. EASPL' ratings: - Long-Term Issuer Rating: 'IND BB-(suspended)'; rating withdrawn - INR180 million fund-based working capital limits: 'IND BB- (suspended)' and 'IND A4+(suspended)'; ratings withdrawn - INR29.32 million term loans: 'IND BB-(suspended)'; rating Withdrawn - INR60 million non-fund-based bank guarantee: 'IND A4+(suspended)'; rating withdrawn Ratings ------- Long Term Issuer Rating WD Fund Based Working Capital Limit WD INR180m Fund Based Working Capital Limit WD INR180m Non-Fund Based Working Capital Limit WD INR60m Term loan WD INR29.32m ELECON: CARE Assigns 'B' Rating to INR3.0cr Long Term Loan ---------------------------------------------------------- CARE assigns the rating to the bank facilities of Elecon. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 3.00 CARE B; Stable Assigned Short-term Bank Facilities 2.60 CARE A4 Assigned Rating Rationale The ratings assigned to the bank facilities of Elecon are primarily constrained by its small and fluctuating scale of operations with low networth base, low profitability margins, leveraged capital structure elongated operating cycle. The rating is further constrained by volatility associated with copper and aluminium prices coupled with presence of Elecon in competitive and fragmented nature of the magnetic wires industry. The rating, however, draws comfort from experienced partners and healthy relations with customers and suppliers. Going forward, the ability of the firm to increase its scale of operations while improving its profitability margins and capital structure shall be the key rating sensitivities. Uttar Pradesh based Elecon was established in 1992 and the firm is currently being managed by Mr. Atul Jain and Mrs. Vidushi Jain. Elecon is engaged in manufacturing of magnetic wires. The firm procures copper, aluminium, glass fibre and electrical insulation paper domestically. The firm sells its product domestically to manufacturing companies. During FY16 (refers to the period April 1 to March 31), Elecon has achieved a total operating income (TOI) of INR22.82 crore with PBILDT and PAT of INR1.08 crore and INR0.10 crore, respectively, as against TOI of INR20.91 crore with PBILDT and PAT of INR0.98 crore and INR0.05 crore, respectively. Moreover, the firm has achieved total TOI of INR15.5 crore till 7MFY17 (refers to the period April 1 to November 30) (as per unaudited results). GROTECH LANDSCAPE: Ind-Ra Withdraws 'IND BB+' LT Issuer Rating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Grotech Landscape Developers Private Limited's 'IND BB+(suspended)' Long- Term Issuer Rating. The ratings have been withdrawn due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for GLDPL. Ind-Ra suspended GLDPL's ratings on 15 June 2016. GLDPL's Ratings: - Long-Term Issuer Rating: 'IND BB+(suspended)'; rating withdrawn - INR15 million fund-based limits: Long-term 'IND BB+(suspended)' and Short-term 'IND A4+(suspended)'; ratings withdrawn - INR70 million non-fund-based limits: Long-term 'IND BB+(suspended)' and Short-term 'IND A4+(suspended)'; ratings withdrawn Ratings ------- Long Term Issuer Rating WD Fund Based Working Capital Limit WD INR15m Fund Based Working Capital Limit WD INR15m Non-Fund Based Working Capital Limit WD INR70m Non-Fund Based Working Capital Limit WD INR70m JADEJA INDUSTRIES: CARE Assigns 'B+' Rating to INR9.90cr LT Loan ---------------------------------------------------------------- CARE assigns rating to the bank facilities of Jadeja Industries Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 9.90 CARE B+; Stable Assigned Rating Rationale The rating assigned to the bank facilities of Jadeja Industries Private Limited is constrained primarily on account of its small scale of operations, thin profit margins, moderately leveraged capital structure, moderate debt coverage indicators and working capital intensive nature of operations. The ratings are further constrained due to stabilization risk associated with recently completed debt-funded capex and susceptibility of its profit margins to volatile raw material prices. The rating, however, derives comfort from the wide experience of its promoters in the refractory bricks industry. The ability of JIPL to increase its scale of operations along with improvement in profit margins, capital structure and efficient management of working capital would remain the key rating sensitivities. Morbi-based (Gujarat) JIPL was incorporated as a private limited company during September 2004 as Jadeja Refractories Private Limited (JRPL). Subsequently, JRPL was converted into JIPL during December 2013. JIPL is managed by three promoters, namely, Mr. Keshrisinh Jadeja, Mr. Hitendrasinh Jadeja and Mr. Devendrasinh Rana. Currently, JIPL is engaged in to manufacturing of refractory bricks which is used in lining furnaces, kilns, fireboxes, and fireplaces. JIPL operates from its sole manufacturing facility located in Morbi (Gujarat) with an installed capacity of 7000 refractory bricks and 6 Metric Tonne Per Annum (MTPA) for Alumina balls as on March 31, 2016. As per the audited results for FY16 (refers to the period April 1 to March 31), JIPL reported a total operating income (TOI) of INR9.18 crore with a PAT of INR0.04 crore as compared with TOI of INR7.33 crore and PAT of INR0.05 crore in FY15. JAYACHITRA GARMENTS: Ind-Ra Withdraws 'IND BB' LT Issuer Rating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Jayachitra Garments' 'IND BB' Long-term Issuer Rating. The Outlook was Stable. The ratings have been withdrawn due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for JG. JG's ratings: - Long-Term Issuer Rating: 'IND BB'; Outlook Stable; rating withdrawn - INR125 million fund based limit: 'IND BB'; Outlook Stable; rating withdrawn - INR13.74 million long-term loans: 'IND BB'; Outlook Stable; rating withdrawn - INR1 million non-fund-based working capital limit: 'IND A4'; rating withdrawn Ratings ------- Long Term Issuer Rating WD Fund Based Working Capital Limit WD INR125m Non-Fund Based Working Capital Limit WD INR1m Term loan WD INR13.74m KAMACHI INDUSTRIES: Ind-Ra Affirms LT Issuer Rating at 'IND D' -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Kamachi Industries Limited's (KIL; earlier known as Kamachi Sponge & Power Corporation Limited) Long-Term Issuer Rating at 'IND D'. KEY RATING DRIVERS The ratings reflect KIL's continuing delays in servicing term loan interest and principal since October 2015 owing to tight liquidity. RATING SENSITIVITIES The ratings reflect KIL's continuing delays in servicing term loan interest and principal since October 2015 owing to tight liquidity. COMPANY PROFILE Incorporated in 2003, KIL manufactures and trades in sponge iron, mild steel billets and thermo-mechanical treated (TMT) bars. The company has integrated steel plant comprising facilities to manufacture 120,000MT of sponge iron; 205,000MT of steel billets and 500,000MT of TMT bars. It also operates a 10MW waste heat recovery plant and a 70MW thermal power plant to generate power for captive consumption. The company's debt was restructured under corporate debt restructuring in February 2013. KIL's ratings: - Long-Term Issuer Rating: affirmed at 'IND D' - INR2,119.8 million fund-based working capital facilities (reduced from INR2,569.9 million): affirmed at Long-term/Short- term 'IND D' - INR4,476.8 million non-fund based working capital facilities (increased from INR4,067.7 million): affirmed at Short-term 'IND D' - INR7,131.1 million term loans (increased from INR6,397.7 million): affirmed at Long-term 'IND D' KARTHIKEYA AGRO: CARE Reaffirms B+ Rating on INR7.80cr LT Loan -------------------------------------------------------------- CARE reaffirms the ratings assigned to the bank facilities of Karthikeya Agro Industries. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 7.80 CARE B+; stable Reaffirmed Rating Rationale The rating assigned to the bank facilities of Karthikeya Agro Industries continues to be constrained by its short track record and small scale of operations, moderately leveraged capital structure with working capital-intensive nature of the business, constitution of the entity as a partnership firm with presence in a highly fragmented industry and seasonal availability of paddy. The rating also takes cognizance of marginal decline in the PBILDT margin albeit increase in total operating income during FY16 (refers to the period April 1 to March 31). The rating, however, derives strength from the experience of the partners in the industry, presence of the firm in major paddy-cultivation area resulting in easy access to procurement of raw material and healthy demand outlook of rice. The ability of the firm to improve its scale of operations, profitability, debt coverage indicators and the ability to manage its working capital requirements efficiently are the key rating sensitivities. Karthikeya Agro Industries was established in 2013 as a partnership firm, promoted by Mr. G Madhusudhana Rao along with his wife Ms G Naga Malleswari. The firm is engaged in milling and processing of rice at Nellore District, Andhra Pradesh, with an installed capacity to process 16,698 metric tons per annum of rice. The firm also sells the by products such as broken rice, husk and bran which comes out during the milling and processing of rice. The main raw material for the firm is paddy which is directly procured from local farmers located in and around Nellore. The firm sells its final product (rice) in the open markets of Tamil Nadu, Andhra Pradesh and Kerala. The firm started its commercial operations in March 2014 and FY15 was the first full year of business operations. KING REFINERIES: Ind-Ra Withdraws 'IND B+' LT Issuer Rating ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn King Refineries Pvt Ltd 'IND B+' Long term Issuer Rating. The Outlook was Stable. The ratings have been withdrawn due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for KRPL. KRPL's ratings: - Long-Term Issuer Rating: 'IND B+'; Outlook Stable; rating withdrawn - INR30 million fund based limit: 'IND B+'; Outlook Stable; rating withdrawn - INR40 million non-fund-based working capital limit: 'IND A4'; rating withdrawn Ratings ------- Long Term Issuer Rating WD Fund Based Working Capital Limit WD INR30m Non-Fund Based Working Capital Limit WD INR40m KINGFISHER AIRLINES: Still No Takers for 'Kingfisher House' ----------------------------------------------------------- The Times of India reports that lenders' attempt to sell the erstwhile headquarters of defunct Kingfisher Airlines, Kingfisher House, in the city failed for the third time on Dec. 19 as none of the buyers showed interest despite a 15% cut in reserve price. TOI says the prime property has a built-up area of over 17,000 sqft and is located in the plush Vile Parle area near the domestic terminal. "None of the bidders came and the auction of Kingfisher House failed this time also," the report quotes a source as saying. The 17-lender consortium, led by State Bank of India had put on auction the property on Dec. 19 with a reserve price of INR115 crore, which was 15% less than the second auction of the property held in August and 23% lower than the first auction in March this year, according to the report. TOI relates that in the second auction in August, the reserve price for Kingfisher House was kept at INR135 crore, 10% lower than the first auction of the asset in March when the reserve price was fixed at INR150 crore. Both the auctions failed as bidders found the reserve price too high, the report says. According to TOI, the lenders are also re-auctioning beleaguered businessman Vijay Mallya's another plush property -- Kingfisher Villa -- at Condolim in North Goa on December 22. The report says the villa will be put under the hammer at a reserve price of INR81 crore, which is 5% lower than the auction held in October, when the lenders had tried to sell the sea facing property at INR85.29 crore. The villa was once used by Mallya to host lavish parties, adds TOI. About Kingfisher Airlines Headquartered in Mumbai, India, Kingfisher Airlines -- http://www.flykingfisher.com/-- formerly known as Deccan Aviation Ltd., served about 35 domestic destinations with a fleet of more than 40 aircraft, including Airbus jets and ATR 72 turboprops. As reported in the Troubled Company Reporter-Asia Pacific on Jan. 15, 2014, Bloomberg News said Kingfisher Airlines has grounded planes since October 2012. The airline lost its operating license in January 2013 after failing to convince authorities it has enough funds to restart flights. As reported in the TCR-AP on Nov. 25, 2016, the Times of India said the Karnataka high court has ordered the winding up of the now-defunct Kingfisher Airlines (KFA). Justice Vineet Kothari gave this direction on Nov. 18, while allowing a petition filed in 2012 by Aerotron, a UK-based company, for recovery of a little over $6 million due to it for supply of rotable aircraft components to KFA. KRUPANIDHI CONSTRUCTION: CARE Reaffirms B+ INR4.18cr Loan Rating ---------------------------------------------------------------- CARE reaffirms rating assigned to bank facilities of Krupanidhi Construction. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 4.18 CARE B+; Stable Reaffirmed Long-term/Short-term Bank Facilities 3.25 CARE B+; Stable/ CARE A4 Reaffirmed Rating Rationale The ratings assigned to the bank facilities of Krupanidhi Construction continue to remain constrained on account of its modest scale of operations, leveraged capital structure and weak debt coverage indicators. The ratings further continue to remain constrained on account of its presence in competitive construction industry and proprietorship form of organization leading to limited financial flexibility. The ratings continue to derive strength from the wide experience of the proprietor, moderate liquidity position and medium term revenue visibility. The ability of KC to successfully bid for new canal and road construction contracts and timely completion of the projects would remain the key rating sensitivities. Vadodara-based (Gujarat) KC is a proprietorship firm established by Mr. Ajay Shah in the year 2000. Mr. Ajay Shah has an experience of 15 years in the construction industry. KC undertakes construction work of roads and canals for the state of Gujarat and Madhya Pradesh. KC is 'AA' class rated contractor by Water Resources Department, Gujarat and Water Resources Department, Madhya Pradesh. KC has also formed a joint venture with Phaloudi Constructions and Infrastructure Private Limited (PCIPL) named as Phaloudi Constructions and Infrastructure Private Limited JV Krupanidhi Construction (PCJVKC). KC reported a PAT of INR0.22 crore on a total operating income (TOI) of INR10.50 crore during FY16 (Audited; refers to the period April 1 to March 31) as against a net profit of INR0.35 crore on a TOI of INR16.19 crore during FY15. The firm clocked a turnover of INR6 crore till October 31, 2016. MAHARAJA COLD: CARE Assigns 'B' Rating to INR5.0cr LT Loan ---------------------------------------------------------- CARE assigns the rating to bank facilities of Maharaja Cold Storage. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 5 CARE B; Stable Assigned Rating Rationale The rating assigned to the bank facilities of Maharaja Cold Storage is constrained on account of stabilization risk associated with cold storage project along with competition from other local players and seasonality associated with cold storage business. The rating is further constrained on account of risk associated with delinquency in loans extended to farmers along with partnership nature of constitution. The above constraints far offset the benefits derived from the experience of the partner in the agriculture industry, location advantage and fiscal benefits from the government. The ability of MCS to stabilize the project and achieve the envisaged level of sales and profitability would remain the key rating sensitivities. Sabarkantha-based (Gujarat) MCS was formed in March, 2015 as a partnership firm by six partners to undertake green field project to provide cold storage facilities to farmers for storing potatoes on a rental basis. The cold storage will have potato storage capacity of 8850 MT. Besides providing cold storage facility, the firm will also provide interest bearing advance to farmers for potato farming purposes against the stock of potato stored. MCS has successfully installed the cold storage facility and commercial operations have commenced from April 2016. MAYA CONSTRUCTION: Ind-Ra Assigns 'IND BB' LT Issuer Rating ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Maya Construction Company Private Limited a Long-Term Issuer Rating of 'IND BB'. The Outlook is Stable. KEY RATING DRIVERS The ratings reflect MCPL's small scale of operations and moderate credit metrics. Provisional FY16 Financials indicate 16.6% yoy increase in revenue to INR286 million on account of increase in work orders and reduction in payment gap. The company's net leverage (total adjusted net debt/operating EBITDAR) was 2.9x in FY16 (FY15: 2.4x) and EBITDA interest coverage (operating EBITDA/gross interest expenses) was 1.8x (1.8x). The company's order book stood at INR342 million (1.19x of FY16 revenue) at end-October 2016, which provides revenue visibility till April 2018. MCPL has indicated revenue of INR140 million in 1HFY17. EBITDA margins remained volatile in the range of 6.01%- 12.6% during FY12-FY16 on account of fluctuation in the raw material price. The ratings, however, derive support from the founder's more than two decades of experience in the EPC segment. MCPL's liquidity was comfortable as indicated by average fund-based facility utilisation of 80.7% over the 12 months ended September 2016. RATING SENSITIVITIES Positive: Substantial growth in the company's top-line and improvement in profitability leading to a sustained improvement in credit metrics could be positive rating action. Negative: Any further stress on profitability and sustained deterioration in credit metrics could lead to a negative rating action COMPANY PROFILE MCPL is a class-AA civil contractor incorporated in 2004. It is engaged in civil construction works (construction of canal works, embankment, lining works and structures). More than 95% of the company's revenue comes from government projects. Ratings ------- Long Term Issuer Rating IND BB/Stable Fund Based Working Capital Limit IND BB/Stable INR50m Fund Based Working Capital Limit IND A4+ INR50m Non-Fund Based Working Capital Limit MURLIDHAR JEWELLERS: Ind-Ra Withdraws 'IND B' LT Issuer Rating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Murlidhar Jewellers' 'IND B(suspended)' Long-Term Issuer Rating. The agency has also withdrawn the 'IND B(suspended)'/'IND A4(suspended)'ratings on the company's INR50 million fund-based working capital limits. The ratings have been withdrawn due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for Murlidhar Jewellers. Ind-Ra suspended Murlidhar Jewellers' ratings on 15 June 2016. Ratings ------- Long Term Issuer Rating WD Fund Based Working Capital Limit WD INR50m Fund Based Working Capital Limit WD INR50m NIKKI STEELS: Ind-Ra Withdraws 'IND B+' Long-Term Issuer Rating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Nikki Steels Private Limited's 'IND B+(suspended)' Long-Term Issuer Rating. The agency has also withdrawn the Long-term 'IND B+(suspended)' and Short-term 'IND A4(suspended)' ratings on the company's INR100 million fund-based working capital limits. The ratings have been withdrawn due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for NSPL. Ind-Ra suspended NSPL's ratings on 15 June 2016. NIKUNJ EXPORTS: CRISIL Suspends 'B' Rating on INR62.5MM Loan ------------------------------------------------------------ CRISIL has suspended its rating on the bank facilities of Nikunj Exports. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60 CRISIL B/Stable Long Term Loan 62.5 CRISIL B/Stable Proposed Long Term Bank Loan Facility 2.5 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by Nikunj with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, Nikunj is yet to provide adequate information to enable CRISIL to assess Nikunj'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. Set up in 2015, Nikunj is a 100 per cent export-oriented unit involved in the processing and export of granite slabs. The firm commenced commercial operations in March 2015. It is promoted by Mr. Vasudev Poddar, who has been associated with the granite industry for more than 25 years. NILKANTH COLD: CARE Assigns 'D' Rating to INR4.40cr LT Loan ----------------------------------------------------------- CARE assigns 'CARE D' rating to the bank facilities of Nilkanth Cold Storage. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 4.40 CARE D Assigned Rating Rationale The rating assigned to the bank facilities of Nilkanth Cold Storage take into account its delay in debt servicing of its term loan. The rating, however, derives benefit only from experience of the promoters and proximity of the firm to the potato growing region. The ability of NCS to regularize its debt servicing liabilities is the key rating sensitivity. Established in the year 2012, NCS is providing cold storage facility for storing potatoes on a rental basis. NCS was established by nine partners led by Mr. Vinodbhai Suthar and Mr. Dineshkumar Suthar. NCS has an installed capacity of 9500 metric ton at its facilities located at Sabarkantha-Gujarat. As per the audited results for FY16 (refers to the period April 1 to March 31), NCS reported a Profit after Tax (PAT) of INR0.02 crore on a total operating income (TOI) of INR1.38 crore as against a PAT of INR0.10 crore on a TOI of INR1.32 crore during FY15 (Audited). PAE LIMITED: CARE Reaffirms 'D' Rating on INR15cr Long Term Loan ---------------------------------------------------------------- CARE reaffirms rating to bank facilities of Pae Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 15.00 CARE D Reaffirmed Long/Short term Bank Facilities 5.00 CARE D Reaffirmed Rating Rationale The reaffirmation of the ratings assigned to the bank facilities of PAE Limited takes into consideration the ongoing delay in servicing of debt obligations and classification of account as Non-performing asset (NPA). PAE's ability to establish clear track of servicing of its debt obligations with improvement in liquidity position is the key rating sensitivity. Incorporated in 1950 as a distributor of auto electric components, PAE Ltd. is presently operational in two segments viz. Power products and Auto components. In its power products segment, PAE is engaged in marketing and distribution of lead storage batteries (for automotive and industrial application) and power backup systems; while in the Auto component segment it operates as a distributor of automotive parts. Additionally, the company has forayed into solar energy space through its various subsidiaries which are engaged in developing, marketing and distribution of solar panels and operates 2 solar power plants of 1 MW each. Over the years PAE has developed a pan-India presence. PINE EXPORTERS: CARE Reaffirms 'B' Rating on INR3.50cr LT Loan -------------------------------------------------------------- CARE reaffirms the ratings assigned to bank facilities of Pine Exporters Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 3.50 CARE B; Stable Reaffirmed Short-term Bank Facilities 4.59 CARE A4 Reaffirmed Rating Rationale The ratings assigned to the bank facilities of Pine Exporters Private Limited continue to remain constrained on account of its financial risk profile marked by fluctuating operating income, low profitability, leveraged capital structure, weak debt coverage indicators and moderate liquidity position during FY16 (A; refers to the period April 1 to March 31). The ratings also remained constrained on account of susceptibility of its profitability to volatility in raw material prices and foreign exchange fluctuations along with presence in the highly fragmented and competitive wood processing industry. The above constraints far off set benefits derived from the experience of the promoters in the wood processing business along with established track record of operations. The ratings further derive benefits from its location advantage which results into easy access of raw material. The ability of PEPL to increase its scale of operations with improvement in profitability and working capital management would remain the key rating sensitivities. Gandhidham-based (Gujarat), PEPL is a private limited company incorporated in 2008 by Mr. Manoj Surana and Ms Rashmi Surana. The company imports round timber logs from New Zealand as well as from local suppliers of Gandhidham which is subsequently sawn and sized at its saw mill into various commercial sizes as per the requirement of its customers. The facility is located at Gandhidham in Kutch district of Gujarat with an installed capacity of 3600 cubic meter per month. The timber processed by PEPL finds its application in packaging of various products apart from use in infrastructure, building construction, interior designing, woodwork, transportation and furniture. PEPL has achieved a PAT of INR0.06 crore on a TOI of INR13.92 crore during FY16 (A) as against PAT of INR0.03 crore on a TOI of INR17.14 crore during FY15 (A). During 5MFY17 (Prov.), PEPL has achieved a turnover of INR6.37 crore. PRABHU CONSTRUCTIONS: Ind-Ra Assigns 'IND BB' LT Issuer Rating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Prabhu Constructions a Long-Term Issuer Rating of 'IND BB'. The Outlook is Stable. KEY RATING DRIVERS The ratings are constrained by PC's small scale of operations with revenue of INR269.66 million in FY16 (FY15: INR219.53 million). The ratings factor in moderate EBITDA margins of 5.30% in FY16 (FY15:7.45%) and stressed liquidity position as reflected by almost 100% average cash credit utilisation for the 12 months ended October 2016. The ratings, however, are supported by PC's established track record with more than 28 years of business operations in the civil construction industry. The ratings are further supported by the firm's moderate credit metrics with interest coverage (operating EBITDA/gross interest expense) of 2.92x in FY16 (FY15: 2.95x) and net leverage (adjusted net debt/operating EBITDA) of 2.04x (1.77x). RATING SENSITIVITIES Positive: A significant improvement in the topline along with the improvement in the current credit profile could be positive for the ratings. Negative: Deterioration in margins leading to a sustained decline in credit metrics could be negative for the ratings. COMPANY PROFILE Established in 1986, PC works as civil construction contractor for various reputed clients such as Uttar Pradesh Public works departments), Lucknow Development Authority and Uttar Pradesh Rajkiya Nirman Nigam. PC is focused primarily on road projects, building projects and sewerage works. PC's Ratings: - Long-Term Issuer Rating: assigned 'IND BB'; Outlook Stable - INR20 million fund-based working capital facilities: assigned 'IND BB'; Outlook Stable and 'IND A4+' - INR35 million non-fund-based facilities: assigned 'IND A4+' Ratings ------- Long Term Issuer Rating IND BB/Stable Fund Based Working Capital Limit IND BB/Stable INR20m Fund Based Working Capital Limit IND A4+ INR20m Non-Fund Based Working Capital Limit PREMIER PLASTICS: CARE Assigns B+ Rating to INR12.10cr LT Loan -------------------------------------------------------------- CARE assigns 'CARE B+/CARE A4' ratings to the bank facilities of Premier Plastics. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 12.10 CARE B+ Assigned Short-term Bank Facilities 0.90 CARE A4 Assigned Rating Rationale The ratings assigned to Premier Plastics are primarily constrained by small and fluctuating scale of operations, project risk associated with the debt funded capital expenditure and elongated collection & inventory holding period. The ratings are further constrained by constitution of the entity being a proprietorship firm along with raw material price fluctuation risk and competitive nature of the industry. The ratings, however, draws comfort from experienced proprietor and moderate profitability margins. Going forward, the ability of the company to increase its scale of operations while achieving its profitability margins and improving its capital structure shall be the key rating sensitivities. Agra based, Premier Plastics, is a proprietorship concern established in 1997 by Mr. Sudhir Gupta. The firm is engaged in manufacturing of TPR soles, leather soles, rubber sheet sole and heels. The key raw material used in manufacturing are TPR Compound, PVC, leather and thermo plastic rubber which is procured domestically from the manufacturers and distributors located in Delhi, Jammu, Silvassa, Agra, Chennai, Alwar and Noida. The firm mainly sells its products to companies/firms engaged in exporting of leather and leather products located in Agra, Chennai, Noida, Bangalore, Kanpur and Gurgaon. The firm is the exclusive manufacturer of the sole of "Bugatti" shoe brand in India. The firm has an associate concern i.e. Royal Polymers; also engaged in manufacturing of sole. In FY15 (refers to the period April 1 to March 31), Premier Plastics achieved a total operating income (TOI) of INR9.78 crore with PAT of INR0.66 crore in FY15. Further, the company has achieved total operating income (TOI) of INR9.91 crore with PAT of INR0.62 crore in FY16 (based on provisional results). S S DEVELOPERS: Ind-Ra Withdraws 'IND B' Long-Term Issuer Rating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn S S Developers' Long-Term Issuer Rating of 'IND B'. The Outlook was Stable. The agency has also withdrawn the rating of 'IND B' with a Stable Outlook on its INR264.3 million term loans. The ratings have been withdrawn due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for the company. Ratings ------- Long Term Issuer Rating WD Term loan WD INR264.3m S. M. INFRASTRUCTURE: CRISIL Suspends B+ Rating on INR99MM Loan --------------------------------------------------------------- CRISIL has suspended its rating on the bank facility of S. M. Infrastructure Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 99 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by SMIPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SMIPL is yet to provide adequate information to enable CRISIL to assess SMIPL'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 June 2008, SMIPL is promoted by Mr. Vikas Agarwal, Mr. Sarat Kumar Jain, and Mr. Rishi Agarwal. The company is engaged in real estate development. Currently, SMIPL is undertaking a residential real estate project, Suryavatika, in Kampup (Assam). SARAF TRADING: Ind-Ra Assigns 'IND B' Long-Term Issuer Rating ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Saraf Trading Corporation Private Limited a Long-Term Issuer Rating of 'IND B'. The Outlook is Stable. KEY RATING DRIVERS The ratings reflect STCPL's moderate scale of operations, volatile margins and weak credit metrics. Revenue had declined to INR214.2 million in FY16 (FY15: INR223.3 million) due to volatile tea prices and slowdown in the global tea market. The EBITDA margins decreased to 3.9% in FY16 (FY15: 6.6%) and ranged between 3.9% and 6.8% during FY13-FY16. This was due to fluctuations in tea prices, intense competition from organised and unorganised players, and volatility in foreign exchange rates as exports contributed around 87% to the revenue in FY16 (FY15: 91%). The company's interest coverage (operating EBITDA/gross interest expense) was 1x (FY15:1.5x) and net leverage (total adjusted net debt/operating EBITDA) was 9.3x (5.9x). The ratings are also constrained by STCPL's moderate liquidity as reflected by its average maximum working capital use of 95% over 12 months ended October 2016. The company also has high customer concentration with top 10 customers accounting for 79.1% of revenue in FY16, although decreasing from 94.7% in FY14. However, the ratings are supported by STCPL's 70 years of operating experience and the current management's three-decade- long experience in the tea industry, leading to established relationships with customers and suppliers. RATING SENSITIVITIES Positive: A substantial growth in the top-line with an improvement in the EBITDA margins leading to a sustained improvement in the credit metrics could be positive for the ratings. Negative: Any deterioration in the EBITDA margins leading to sustained deterioration in the credit metrics could be negative for the ratings. COMPANY PROFILE Located in Kerala, STCPL is a private limited company, incorporated in 1994. It is engaged in processing, blending and trading of packaged tea under the brand, Suntips. The business was founded by Shri. V.G. Saraf in 1948. STCPL's ratings: - Long-Term Issuer Rating: assigned 'IND B'; Outlook Stable - INR70 million fund-based working capital limits: assigned 'IND B'; Outlook Stable and 'IND A4' - INR17.5 million non-fund-based limits: assigned 'IND A4' Ratings ------- Long Term Issuer Rating IND B/Stable Fund Based Working Capital Limit IND B/Stable INR70m Fund Based Working Capital Limit IND A4 INR70m Non-Fund Based Working Capital Limit SAS AUTOMOTIVES: Ind-Ra Withdraws IND BB Long-Term Issuer Rating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn SAS Automotives Private Limited's 'IND BB(suspended)' Long-Term Issuer Rating. In addition, the agency has withdrawn the 'IND BB(suspended)' and 'IND A4+(suspended)' ratings on SAPL's INR100 million fund-based working capital limits. The ratings have been withdrawn due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for SAPL. Ind-Ra suspended SAPL's ratings on June 15, 2016. Ratings ------- Long Term Issuer Rating WD Fund Based Working Capital Limit WD INR100m Fund Based Working Capital Limit WD INR100m SATLUJ SPINTEX: Ind-Ra Withdraws IND BB- Long-Term Issuer Rating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Satluj Spintex Limited's 'IND BB-(suspended)' Long-Term Issuer Rating. The ratings have been withdrawn due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for SSL. Ind-Ra suspended SSL's ratings on May 10, 2016. SSL's ratings are as follows: - Long-Term Issuer Rating: 'IND BB-(suspended)'; rating withdrawn - INR700 million fund-based cash credit limits: IND BB- (suspended)' and 'IND A4+(suspended)' ; ratings withdrawn - INR12.5 milion non-fund-based bank guarantee limits: 'IND A4+(suspended)' ; rating withdrawn - INR1,420 milion term loans: 'IND BB-(suspended)'; rating withdrawn Ratings ------- Long Term Issuer Rating WD Fund Based Working Capital Limit WD INR700m Fund Based Working Capital Limit WD INR700m Non-Fund Based Working Capital Limit WD INR12.5m Term loan WD INR1420m SHARON BIO-MEDICINE: CARE Lowers INR367.54cr Loan Rating to 'D' --------------------------------------------------------------- CARE revises the ratings assigned to the bank facilities of Sharon Bio-Medicine Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-Term Bank Facilities 367.54 CARE D Revised from (Term Loan) CARE B+ Long-Term Bank Facilities 299.99 CARE D Revised from Fund Based (Cash Credit) CARE B+ Rating Rationale The revision in the ratings of Sharon Bio-Medicine Limited takes in to account the instances of delays in debt servicing owing to strained liquidity position. Sharon Bio-Medicine Ltd. is engaged in the manufacturing of Active Pharma Ingredients, Intermediaries, Formulations (own brands) and Contract Manufacturing for finished formulations. The company has a diversified product portfolio with presence mainly in acute therapies such as anti-infectives and anti-biotics along with presence in chronic therapies such as diabetes and cardiovascular. The company has three manufacturing facilities, two at Taloja in Maharashtra and one at Dehradun. In addition, the company has three R&D centres which are approved by the Department of Science & Technology, Government of India. The company's Dehradun plant is UK-MHRA approved, while the other facilities are ISO 9001-2000 certified. SBML had one wholly-owned subsidiary, Yusur International FZE (YIFZ), incorporated in the UAE, which has been shut down in January 2016. In FY16 (refers to the period July 1 to March 31), the company reported a net loss of INR299.20 crore (compared to net loss of INR225.86 crore in FY15) on a total operating income of INR255.40 crore (INR836.55 crore in FY15). In H1FY17 (unaudited), the company reported a total operating income of INR83.00 crore (INR217.69 in H1FY16) and a net loss of INR299.85 crore (INR145.43 crore loss in H1FY16). SHIVA METALLOYS: CRISIL Suspends B+ Rating on INR110MM Cash Loan ---------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Shiva Metalloys International Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 110 CRISIL B+/Stable Letter of Credit 150 CRISIL A4 The suspension of ratings is on account of non-cooperation by Shiva with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, Shiva is yet to provide adequate information to enable CRISIL to assess Shiva'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 1982 and based in New Delhi, Shiva is promoted by Mr. Suresh Kumar Chawla and his family members. It was reconstituted as a limited company in 1990. Shiva trades in non- ferrous metal alloys such as nickel, zinc, tin, and lead. However, about 90 per cent of its revenue is contributed by the sale of nickel. The company is an authorized agent for Vale Inco, Canada, and is one of the five distributors in India that imports nickel from Vale Inco. SHREE BALAJI: CRISIL Reaffirms 'B' Rating on INR27.5MM Cash Loan ---------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Shree Balaji Cotgin Private Limited continues to reflect a modest scale of operations in the highly fragmented cotton industry, and low operating margin with susceptibility to volatility in raw material prices. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 27.5 CRISIL B/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 12.3 CRISIL B/Stable (Reaffirmed) Term Loan 20.2 CRISIL B/Stable (Reaffirmed) The rating also factors in a below-average financial risk profile because of a weak capital structure and low debt protection metrics. These weaknesses are partially offset by the extensive industry experience of the promoters and their funding support. Outlook: Stable CRISIL believes SBCPL will continue to benefit from the extensive industry experience of its promoters and their established relationship with customers. The outlook may be revised to 'Positive' in case of a significant and sustained increase in scale of operations with improvement in the capital structure. The outlook may be revised to 'Negative' if the financial risk profile deteriorates due to a stretched working capital cycle or a decline in profitability, or if the business risks profile is adversely impacted by a change in government policy. Update: Revenue grew by 54% to Rs. 260.2 million in fiscal 2016 from INR169.3 million in fiscal 2015 due to higher quantity of cotton bales being sold. Revenue was around INR140 million in the six months through September 2016. Lower realisation resulted in an operating margin of 4.6% in fiscal 2016. The financial risk profile remains below average because of a small networth of INR18 million and high gearing of 2.65 times, as on March 31, 2016. The interest coverage ratio was 2.1 times and net cash accrual to total debt ratio 0.13 time in fiscal 2016. Liquidity is stretched as the expected cash accrual of around INR8 million will be just sufficient to meet term debt repayment obligation of around Rs.5 million in fiscal 2017. The bank limit was moderately utilised at 60% during the 12 months through August 2016. Liquidity is also supported by unsecured loans from directors, the balance of which was INR28 million as on March 31, 2016. SBCPL, incorporated in 2014, is managed by Mr. Ravikumar Garg and Mr. Gokulsing Dhobal. The company gins and presses cotton to make bales. It has a manufacturing capacity of 1000 quintal of cotton per day. Its registered office is in Mantha, Maharashtra. SLR CONSTRUCTION: CRISIL Suspends B+ Rating on INR25MM Loan ----------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of SLR Construction Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 90 CRISIL A4 Overdraft Facility 25 CRISIL B+/Stable Proposed Long Term Bank Loan Facility 2 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by SLRPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SLRPL is yet to provide adequate information to enable CRISIL to assess SLRPL'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. SLRPL was incorporated in 2005 by Delhi-based Bansal family. The company is a class 'A' civil contractor for Compressed Natural Gas (CNG) stations and buildings. SLRPL is operating in Delhi/National Capital Region, Rajasthan, Uttar Pradesh, Gujarat, Haryana, Karnataka, and Tripura. Mr. Shiv Kumar Bansal is the key promoter in the company and is also actively engaged in managing the day-to-day business of the company. STERIMED SURGICALS: CRISIL Suspends 'B' Rating on INR30MM Loan -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Sterimed Surgicals India Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 30 CRISIL B/Stable Letter of Credit 15 CRISIL A4 Term Loan 15 CRISIL B/Stable Working Capital Term Loan 15 CRISIL B/Stable 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 was incorporated in 2002-03, promoted by Mr. S B Singh Narang and his two sons, Mr. Sabjot Singh Narang and Mr. Sarabdeep Singh Narang. SSPL manufactures medical disposables and industrial and medical adhesive tapes. T.C. TERRYTEX: Ind-Ra Withdraws 'IND BB+' Long-Term Issuer Rating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn T.C. Terrytex Limited's 'IND BB+(suspended)' Long-Term Issuer Rating. The ratings have been withdrawn due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for TCTL. Ind-Ra suspended TCTL's ratings on May 10, 2016. TCTL's ratings are as follows: - Long-Term Issuer Rating: 'IND BB+(suspended)'; rating withdrawn - INR875 million fund-based limits: 'IND BB+(suspended)' and 'IND A4+(suspended)' ; ratings withdrawn - INR195 million non-fund-based limits: IND BB+(suspended)' and 'IND A4+(suspended)' ; ratings withdrawn - INR661.2 million term loans: 'IND BB+(suspended)' ; rating withdrawn Ratings ------- Long Term Issuer Rating WD Fund Based Working Capital Limit WD INR875m Fund Based Working Capital Limit WD INR875m Non-Fund Based Working Capital Limit WD INR195m Non-Fund Based Working Capital Limit WD INR195m Term loan WD INR661.2m TAURUS POWERTRONICS: CRISIL Suspends B+ Rating on INR51MM LT Loan ----------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Taurus Powertronics Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 40 CRISIL A4 Cash Credit 19 CRISIL B+/Stable Letter of Credit 10 CRISIL A4 Proposed Long Term Bank Loan Facility 51 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by TPPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, TPPL is yet to provide adequate information to enable CRISIL to assess TPPL'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. TPPL was incorporated in 2007 by Mr. Makaram Narasimhan Ravinarayan and his wife Mrs. Gayathri Ravinarayan. The company is engaged in manufacturing of test and measurement instruments for power sector. The company is based out of Bangalore and has branch offices in Delhi, Kolkata and Mumbai. TIRUPATI TRADING: CRISIL Suspends B+ Rating on INR110MM Loan ------------------------------------------------------------ CRISIL has suspended its rating on the bank facility of Tirupati Trading Corporation. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 110 CRISIL B+/Stable The suspension of ratings is on account of non-cooperation by TTC with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, TTC is yet to provide adequate information to enable CRISIL to assess TTC'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, TTC is a Delhi-based partnership firm engaged in wholesale trading and indirect export of basmati rice, dal, and maize. The firm is owned and managed by Mr. Vivek Bansali and Ms. Parul Bansali. TRIDENT AUTO: Ind-Ra Withdraws 'IND BB-' Long-Term Issuer Rating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Trident Auto Components Private Limited's 'IND BB-(suspended)' Long-Term Issuer Rating. The ratings have been withdrawn due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for TACPL. Ind-Ra suspended TACPL's ratings on 15 June 2016. TACPL's Ratings: - Long-Term Issuer Rating: 'IND BB-(suspended)'; rating withdrawn - INR150 million fund-based working capital limits: Long-term 'IND BB-(suspended)' and Short-term 'IND A4+(suspended)'; ratings withdrawn - INR16.68 million term loans: Long-term 'IND BB-(suspended)'; rating withdrawn - INR12.50 million non-fund-based working capital limits: Long- term 'IND BB-(suspended)' and Short-term 'IND A4+(suspended)'; ratings withdrawn Ratings ------- Long Term Issuer Rating WD Fund Based Working Capital Limit WD INR150m Fund Based Working Capital Limit WD INR150m Non-Fund Based Working Capital Limit WD INR12.5m Non-Fund Based Working Capital Limit WD INR12.5m Term loan WD INR16.68m TWINCITY SUNLIFE: Ind-Ra Withdraws 'IND B+' LT Issuer Rating ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has withdrawn Twincity Sunlife Pvt. Ltd.'s 'IND B+(suspended)' Long-Term Issuer Rating. The ratings have been withdrawn due to lack of adequate information. Ind-Ra will no longer provide ratings or analytical coverage for the company. Ind-Ra suspended TSPL's ratings on April 22, 2016. TSLP's ratings: - Long-Term Issuer Rating: 'IND B+(suspended)'; rating withdrawn - INR65 million fund-based working capital limit: 'IND B+(suspended)'; rating withdrawn - INR35 million non-fund-based working capital limit: 'INDA4(suspended)'; rating withdrawn Ratings ------- Long Term Issuer Rating WD Fund Based Working Capital Limit WD INR65m Non-Fund Based Working Capital Limit WD INR35m UJJAWAL SAVERA: CRISIL Suspends 'B' Rating on INR10MM LT Loan ------------------------------------------------------------- CRISIL has suspended its rating on the bank facility of Ujjawal Savera Samiti. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long Term Bank Loan Facility 10 CRISIL B/Stable The suspension of ratings is on account of non-cooperation by USS with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, USS is yet to provide adequate information to enable CRISIL to assess USS'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. USS is a Meerut based organisation operating as a not-for-profit society and is managed by the Chairman, Mr. Mahesh Kumar and Secretary, Mr. Ravindra Pal. The society provides free meals under the mid-day meal scheme and other government mandated schemes. The society has license from Food Safety Authority of India. VIBFAST PIGMENTS: Ind-Ra Affirms 'IND BB-' LT Issuer Rating ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed M/s Vibfast Pigments' Long-Term Issuer Rating at 'IND BB-'. The Outlook is Stable. The agency has also affirmed VP's INR98.2 million fund- based working capital limits at 'IND BB-' with a Stable Outlook and 'IND A4+'. KEY RATING DRIVERS The affirmation reflects VP's continued moderate financial and credit profile. In FY16, revenue was INR408.4 million (FY15: INR379.2 million), net leverage (Ind-Ra adjusted net debt/operating EBITDAR) was 6.7x (FY15: 4.7x) and EBITDA interest cover was 3.2x (3.7x). The fall in credit metrics in FY16 was due to a marginal decline in the EBITDA margin to 4.2% (FY15: 4.3%). Moreover, the total debt increased to INR120.3 million in FY16 (FY15: INR82.7 million) and therefore interest expenses grew to INR5.4 million (INR4.4 million). Susceptibility of VP's margins to volatility in raw material prices and foreign exchange fluctuations continues to constrain the ratings. The ratings also factor in the partnership structure of the firm's business. The ratings are supported by VP's two decades of experience in manufacturing dyes and pigments and its strong customer relationships. VP's comfortable liquidity position as evident from the average peak utilisation of 73% of its fund-based limits during the 12 months ended November 2016 also supports the ratings. RATING SENSITIVITIES Positive: A substantial increase in the revenue and operating profitability leading to an improvement in the credit profile could result in a positive rating action. Negative: A decline in the operating profitability resulting in sustained deterioration in the credit profile could lead to a negative rating action. COMPANY PROFILE Incorporated in 1995, VP is an export-oriented partnership entity headed by Amit Banthia. The firm manufactures and exports a variety of dyes and pigments to European and Asian countries. VIBFAST PIGMENT PRIVATE: Ind-Ra Affirms IND BB- LT Issuer Rating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Vibfast Pigment Private Limited's Long-Term Issuer Rating at 'IND BB-'. The Outlook is Stable. KEY RATING DRIVERS The affirmation reflects VPPL' continued moderate financial and credit profile. In FY16, revenue was INR385.8 million (FY15: INR398.2 million), net leverage (Ind-Ra adjusted net debt/operating EBITDAR) was 7.4x (FY15: 5.5x) and EBITDA interest cover was 3.5x (3.7x). The fall in credit metrics in FY16 was due to a marginal decline in the absolute EBITDA to INR15.3 million (FY15: INR15.7 million) on the marginal revenue decline. Moreover, the total debt increased to INR113.1 million in FY16 (FY15: INR87.7 million) and therefore interest expenses grew to INR4.4 million (INR4.3 million). Susceptibility of VPPL's margins to volatility in raw material prices and foreign exchange fluctuations continues to constrain the ratings. The ratings are supported by VPPL's two decades of experience in manufacturing dyes and pigments and its strong customer relationships. VPPL's comfortable liquidity position as evident from the average peak utilisation of 76% of its fund-based limits during the 12 months ended November 2016 also supports the ratings. RATING SENSITIVITIES Positive: The company's ability to report a substantial increase in the revenue while maintaining the operating profitability leading to an improvement in the credit profile could result in a positive rating action. Negative: A decline in the operating profitability resulting in sustained deterioration in the credit profile could lead to a negative rating action. COMPANY PROFILE Incorporated in 1993, VPPL (erstwhile Vibgyor Chemtex) manufactures, supplies and exports a wide assortment of dyes and pigments. Headed by Amit Banthia, the company exports pigments to European and Asian countries. VPPL's ratings: - Long-Term Issuer Rating: affirmed at 'IND BB-'; Outlook Stable - INR93.5 million fund-based working capital limit: affirmed at 'IND BB-'; Outlook Stable and 'IND A4+' - INR11 million non-fund-based working capital limit: affirmed at 'IND A4+' Ratings ------- Long Term Issuer Rating IND BB-/Stable Fund Based Working Capital Limit IND BB-/Stable INR93.5m Fund Based Working Capital Limit IND A4+ INR93.5m Non-Fund Based Working Capital Limit IND A4+ INR11m ========= J A P A N ========= TOSHIBA CORP: Canon Completes Acquisition of Medical Unit --------------------------------------------------------- The Japan Times reports that Canon Inc. has completed its acquisition of a Toshiba Corp. medical unit that the embattled parent company put on sale earlier this year in a bid to emerge from a window-dressing scandal. The report relates that the printer, photocopier and camera manufacturer announced the purchase on Dec. 19 of Toshiba Medical Systems Corp. for JPY665.5 billion after it cleared procedures by anti-monopoly watchdogs overseas. The Japan Times says the deal reflects Canon's hope to enhance its medical sector by utilizing Toshiba Medical Systems' strength in equipment such as magnetic resonance imaging and X-ray systems. In March, Toshiba announced a series of steps to emerge from its accounting scandal, including a plan to sell the medical equipment unit to Canon. Toshiba admitted last year to having hidden massive losses in sectors such as infrastructure and semiconductors, the report recalls. Fujifilm Holdings Corp. and a coalition of Konica Minolta Inc. and a British private equity fund had also tried to acquire Toshiba Medical, according to The Japan Times. The Japan Times adds that Japan's Fair Trade Commission issued a warning against Canon in June alleging the company had begun procedures for the acquisition before it notified the FTC of the plan. Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/-- is a Japan-based manufacturer involved in five business segments. The Digital Products segment offers cellular phones, hard disc devices, optical disc devices, liquid crystal televisions, camera systems, digital versatile disc (DVD) players and recorders, personal computers (PCs) and business phones, among others. The Electronic Device segment provides general logic integrated circuits (ICs), optical semiconductors, power devices, large- scale integrated (LSI) circuits for image information systems and liquid crystal displays (LCDs), among others. The Social Infrastructure segment offers various generators, power distribution systems, water and sewer systems, transportation systems and station automation systems, among others. The Home Appliance segment offers refrigerators, drying machines, washing machines, cooking utensils, cleaners and lighting equipment. The Others segment leases and sells real estate. As reported in the Troubled Company Reporter-Asia Pacific on Nov. 23, 2016, S&P Global Ratings said it has affirmed its 'B' long-term corporate credit and 'BB-' senior unsecured debt ratings on Japan-based diversified electronics company Toshiba Corp. S&P also affirmed its 'B' short-term corporate credit and commercial paper ratings on Toshiba. The outlook on the long- term ratings remains negative. =============== M A L A Y S I A =============== PERISAI PETROLEUM: Ezra Wants to Settle Share Sale Dispute ---------------------------------------------------------- The Star Online reports that a major shareholder of Perisai Petroleum Teknologi Bhd has signalled to the beleaguered oil and gas firm that it is willing to settle a current dispute over a share sale agreement (SSA) involving the sum of US$43mil (RM190.92mil). The Star relates that Singapore-listed Ezra Holdings Ltd, which holds a 22.5% stake in Perisai, said that its subsidiary Emas Offshore Ltd (EOL) hopes to work towards resolving various issues relating to SJR Marine (L) Ltd, which is a 51:49 joint venture (JV) between Perisai and EOL. "The company (EOL) is currently in discussion with Perisai and working towards resolving various issues in respect of the termination notices, put option notice, and the SSA dispute notification. The company is monitoring the situation and assessing the impact on the group," the report quotes EOL as saying in a filing with Singapore Stock Exchange (SGX). Perisai's shares rose 0.5 sen to close at six sen on Dec. 19 as the newest development could potentially prevent a prolonged legal battle, which would be costly to both parties, the report discloses. On Dec. 8, as part of the previously agreed-to SSA, Perisai issued a notice of the exercise of its put option, which entitled it to sell its 51% stake in SJR for US$43mil, according to the Star. However, Perisai was subsequently served with a notice by EOL which said that due to the occurrence of "certain events"', the right of EOL to terminate a previous share sale agreeement has arisen under the provisions of the deal, relates the Star. The Star notes that Perisai has sent a notice disputing EOL's claims and has said it has sought legal advice over the matter. The "certain events" in question may relate to Perisai's recent bond payment default in November where it failed to repay SGD125 million in medium term notes (MTN), says the report. The group has been classified as a Practice Note 17 (PN17) company since then. The report relates that the funds it would obtain for selling the SJR stake would be a much-needed lifeline for Perisai which is in the midst of restructuring its finances. As at Sept. 30, its cash reserves amounted to RM32.13 million, which is not enough to meet its existing debt obligations, the report discloses. Making matters worse, according to EOL, if the original terms of the deal were adhered to, EOL would be able to acquire Perisai's 51% stake for just US$1 upon which completion shall take place on the 30th day from the receipt of the termination notice, the report relates. According to the Star, the ongoing dispute has had a significant effect on the trading of Ezra's shares. On Dec. 12, it was slapped with a query by the SGX over unusual volume movements in its shares on that day. About Perisai Petroleum Perisai Petroleum Teknologi Bhd. (KLSE:PERISAI) -- http://www.perisai.biz/-- is a Malaysia-based investment holding company engaged in the provision of management, administrative and financial support services to its subsidiaries. The Company operates in three segments: Drilling Units, which is engaged in the operations and maintenance service and the provision of offshore assets, which are primarily for oil and gas offshore drilling; Production units, which is engaged in the operations and maintenance service and the provision of offshore assets, which are primarily for oil and gas production, and Marine Vessels, which is engaged in the provision of vessels, barges and equipment on vessel charter services. Its subsidiaries include Alpha Perisai Sdn. Bhd., which is engaged in the provision of administrative support services; Perisai Offshore Sdn. Bhd., which is engaged in the provision of oil and gas services in upstream oil sector, and Perisai production Holdings Sdn. Bhd., which is an investment holding company, among others. As reported in the Troubled Company Reporter-Asia Pacific on Oct. 14, 2016, The Star Online said Perisai Petroleum Teknologi Bhd has been classified as a Practice Note 17 (PN17) company after its unit Perisai Capital (L) Inc defaulted on SGD125 million debt notes due on Oct. 3. The Star related that the upstream oil and gas provider said in a statement to Bursa Malaysia that it therefore must regularize its financial position within 12 months and implement the regularization plan within the timeframe stipulated by either the Securities Commission or Bursa Malaysia Securities Bhd. ==================== S O U T H K O R E A ==================== HANJIN SHIPPING: Must Disclose U.S. Assets, Judge Says ------------------------------------------------------ Tom Corrigan, writing for The Wall Street Journal Pro Bankruptcy, reported that U.S. Judge John Sherwood in New Jersey, ruled that South Korea's Hanjin Shipping Co. must answer to U.S. creditors by publicly disclosing all of its U.S.-based assets as well as any cash that has been transferred out of the country. According to the report, Judge Sherwood ordered the disclosures in response to a plea from American creditors who say they are being treated unfairly. The judge also said he would grant final approval of a host of legal protections that have helped the shipper, once one of the world's largest, jump-start stalled supply lines, the report related. The decision, which some creditors opposed, affirms the New Jersey court's September ruling that formally recognized the Hanjin's bankruptcy proceeding in Korea, bringing the shipper under the umbrella of U.S. bankruptcy law, the WSJ report pointed out. Judge Sherwood's order imposes strict prohibitions on U.S. creditors that prevent them from seizing ships and other assets without first going to the bankruptcy court, the news agency further pointed out. The Troubled Company Reporter, citing JOC.com, previously reported that a Hanjin Shipping attorney told a federal court that it has virtually no assets in the United States to compensate several retailers, logistics providers, insurance companies and other claimants who fear the loss of claim rights if the court recognizes the carriers' South Korean bankruptcy case. Hanjin attorney Ilana Volkov, of New Jersey, told Judge Sherwood that Hanjin has virtually no assets available in the U.S. to pay claimants anyway, except for a property in Paramus, New Jersey, which is fully mortgaged, a few accounts receivables and some interest payments. The WSJ, however, pointed out that Judge Sherwood's order won't end disputes among creditors owed millions of dollars for fuel, leasing containers, insurance claims and other vital services, who say his decision unfairly restricts their rights to pursue repayment in other courts in the U.S. or elsewhere in the world. "What the court is doing is tying our hands," Stephen Simms, Esq., a lawyer representing a group of Hanjin creditors who objected to the relief that Judge Sherwood granted, said in court, the WSJ report related. 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 publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000 or Nina Novak at 202-362-8552. *** End of Transmission ***